STB - Q3 2009: Strongly improved results
- Group profit[1] of NOK 908 million for the quarter and NOK 680 million year-to-date.
- Increased equity proportion and good returns for pensions customers.
- Improved financial position and increased solvency margin of 161%.
- Good sales development and increased market shares for SPP in Sweden.
The Board of Director's interim report for Q3 2009 and the analyst presentation are attached on http://www.newsweb.no
Storebrand will today host a press and analyst conference in Oslo at Felix Conference Centre, Bryggetorget 3, at 0900 CET (in Norwegian). An international conference call will be hosted at 1500 CET. To participate in the conference call please use link on http://www.storebrand.no/ir, or call in and register 10 minutes before the presentation starts. Dial: +47 80080119 (from Norway) or +47 23000400 (from Norway or abroad).
[1] Group profit before amortisation and write-down of intangible assets
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Pressrelease:
Pressrelease:
3rd quarter 2009:
Strongly improved results
- Group profit[1] of NOK 908 million for the quarter and NOK 680 million year-to-date.
- Increased equity proportion and good returns for pensions customers.
- Improved financial position and increased solvency margin of 161%.
- Good sales development and increased market shares for SPP in Sweden.
-" The group profit has improved by NOK 2.1 billion compared to the same period last year, and Storebrand delivers a strong result to customers and owners. The period of financial turmoil has been characterised by active risk and cost management. The measures implemented are having the desired effect" comments Group CEO Idar Kreutzer.
High return - reserves being built
Strongly improved return on assets gives a good quarterly result for the Norwegian and Swedish life insurance and pensions business. This development means previous charges to equity to cover the customers' interest guarantee have been reversed. The good return also means that buffer capital can be built. Customer buffers have increased by NOK 375 in the Norwegian life business, and by NOK 1.3 billion in SPP in the quarter.
Good result for defined contribution customers
Return on the recommended investment profiles for defined contribution pensions in Q3 was 4.2% for the careful profile, 8.3% for the balanced profile and 12.2% for the aggressive profile respectively. Year to date the return has been 8.1% for the careful profile, 15.4% for the balanced profile and 22.1% for the aggressive profile respectively.
Net transfers to Storebrand Life Insurance totalling NOK 548 million have been booked for the year to date. In the quarter there is a transfer out of NOK 443 million. The company is participating in several large tenders which will be decided in the fourth quarter.
Positive development in sales in SPP
SPP sees a positive development in net new sales, with an increase in new premiums (APE) of 10%. During the quarter current premiums have increased by 20% compared to the same quarter last year. New sales through broker channels have increased significantly also in the third quarter, and are 89% higher year-to-date than the corresponding period in 2008.
Stable for Asset Management
Storebrand Investments has net new sales of NOK 600 million in Q3. The development is positive both for discretionary management and mutual funds.
Volume based income for the asset management activities is negatively affected by falling values at the start of the year. This trend has turned, and during the third quarter assets under management increased by NOK 16 billion. Earned - but not recognised as income - return based fees represented NOK 80 million at the end of Q3.
Storebrand Bank cuts costs
The deposit to loan ratio in Storebrand Bank is stable, whilst gross lending to customers has been reduced by NOK 2 billion in the year-to-date. The result has been charged with NOK 12 million to cover restructuring costs. The restructuring process which was started in the quarter will reduce the bank's operating costs and have an annual effect of NOK 50 million from 2011.
Storebrand P&C continues to grow
The sale of insurance policies in P&C is still growing. Premium income increased by 10% to NOK 313 million In Q3, and by 39% year-to-date.
Good financial position
At the end of Q3 Storebrand is in a good financial position. The solvency margin for Storebrand Life Group had increased to 161% at the close of the quarter.
The bank's core capital ratio was 9.1% at the end of Q3. Following the close of the quarter, Storebrand ASA has decided to increase Storebrand Bank's capital by NOK 200 million in order to bring the core capital ratio to 10% in line with new internal targets.
Oslo, 28 October 2009
Contact people:
EVP Corporate Communications Egil Thompson: Mobile (+47) 93 48 00 12
Head of Investor Relations Trond Finn Eriksen: Mobile (+47) 99 16 41 35
Enclosure: Board's Interim Report for the 3rd Quarter 2009