Storebrand: Results Q3 2006

Third quarter 2006: Good performance continues
  • Group profit of NOK 1,125 million for the first nine months as compared to NOK 1,024 million
    for the same period in 2005.
  • 7,200 new mandatory occupational pension schemes had been entered into by the close of Q3.
    The schemes cover 150,000 employees.
  • A good booked investment return gives a solid result for the life company's customers and owners,
    and also increases risk capital.
  • The strong growth in customers for banking, life insurance and asset management activities
    continued in the quarter.
  • Strong improvement in earnings at Storebrand Investments due to a good investment performance
    for funds and portfolios under management.
 
"Storebrand is maintaining its good performance. We are enjoying success with sales of occupational pension schemes, and the bank's customer base is growing strongly. Asset management reported a very pleasing improvement in profitability, and the re-launch of P&C insurance is proceeding as planned", comments Idar Kreutzer, Group CEO.
 
Growth in mandatory occupational pension schemes
Storebrand Life Insurance reports continuing growth in customer numbers. The company has booked a net inflow of pension reserves of NOK 4.8 billion for the year to date, of which Q3 accounted for NOK 1.4 billion. In the market for mandatory occupational pension schemes, Storebrand had set up schemes covering around 150,000 employees by the close of Q3. A number of major new schemes have been agreed since the end of the quarter.
 
The life company's investment portfolio showed solid returns. The value-adjusted investment return was 2.3% in Q3, and 4.7% for the first nine months. The booked investment return was 1.4% in Q3 and 4.8% for the first nine months.
 
Sound growth for asset management and good investment returns
Asset management activities reported an improvement in profit of NOK 40 million relative to the third quarter of last year. The main reason for this improvement was the good investment performance achieved for funds and portfolios under management. At the close of Q3, 73% of mutual funds under management had achieved a better return (before management fees) than their benchmark indices. Storebrand Investments had NOK 215 billion of assets under management at the close of Q3, representing an increase of NOK 9 billion from the close of Q2.
 
Continuing growth at Storebrand Bank
Storebrand Bank's focus on the retail market is generating sound and stable growth in customer numbers. Over 5,000 new accounts were opened in Q3, bringing total new accounts in the first nine months to 15,000. Gross lending increased by NOK 624 million in Q3, and by NOK 1.8 billion since the start of the year. The bank's assets totalled NOK 32.5 billion at the close of Q3.
 
Re-launch of P&C business proceeding as planned
The re-launch of Storebrand's P&C insurance business is proceeding according to plan. The company will be fully operational before the close of 2006, and is already attracting a strong flow of customers. Collaboration agreements have been signed with external partners, and the recruitment planned for 2006 is now fully in place.
 
 
Oslo, 1 November 2006
 
 
For further information contact:
Egil Thompson, Director of Corporate Communications.
Tel. +47 22 48 95 86 Mobile +47 93 48 00 12
Nils Robert Hodnesdal, Investor Relations. Tel. +47 22 31 55 33 Mobile +47 93 40 38 13
 
Appendix: Board of Directors' Interim report for Q3 2006
                 Analyst Presentation Q3 2006