Storebrand ASA 1Q 2012: Positive earnings performance - competitive return to customers

  • Group result of NOK 667 million for 1Q 2012
  • Strengthened buffer capital and financial strength: Solvency margin of 163% for Storebrand Life Insurance Group
  • Strong investment returns for life and pensions customers

The Board of Director's Interim report for 1Q 2012, 1Q 2012 result presentation and Supplementary Information are attached on http://www.newsweb.no

Storebrand will today host a press and analyst conference in Storebrands head office at Lysaker, Professor Kohts vei 9, at 1000 CET (in Norwegian). An international conference call will be hosted at 1400 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 in number: +47 23184536.

Full press release:

1Q 2012: Positive earnings performance - competitive return to customers

  • Group result of NOK 667 million for 1Q 2012
  • Strengthened buffer capital and financial strength: Solvency margin of 163% for Storebrand Life Insurance Group
  • Strong investment returns for life and pensions customers

- Storebrand has delivered competitive return to customers for both defined-contribution and defined-benefit pensions during the quarter. The buffer capital was strengthened by NOK 3.8 billion during the quarter, and the Group's financial standing is improved. Our efforts to improve operational efficiency are showing results according to plan and will continue at full force, says CEO Idar Kreutzer.

Group result before write-downs and amortisation of intangible assets was NOK 667 million for the quarter.

Storebrand Life Insurance: Competitive returns
The uncertainty that has marked the financial markets throughout the last half of 2011 has abated. Storebrand has achieved competitive returns for the quarter.

Storebrand has achieved a good investment return for defined-contribution pensions. Storebrand Balanced Pension reported a return of 6.9 per cent.

The market return for the group policy portfolios in Norway was 2.1 per cent for the quarter, well above the average interest rate guarantee.

In 2010 and 2011 Storebrand allocated NOK 1.5 billion for increasing life expectancy reserves. Customers should expect Storebrand to allocate a substantial part of the investment result above the interest rate guarantees for longevity reserving also for 2012.

Storebrand has decided to close the paid-up policy book for transfers effective from May 3rd.

SPP: Improved operations
 The operational performance of SPP is positive and contributes to a higher administration result. SPP's premium income has shown a positive development. Unit linked insurance is becoming an increasingly important business area, and SPP was named the "Unit Linked Insurance Company of the Year" by the insurance broker Söderberg & Partner for the fourth year in a row.

Asset management: Weaker result - growth in assets under management
Assets under management in Storebrand Asset Management increased by NOK 11.8 billion during the first quarter. Income performance is weaker than the previous year as a result of the market performance throughout 2011. Storebrand Asset Management has during the quarter delivered a total excess return of NOK 1.1 billion to the customers.

Insurance: Strong result development
Storebrand Insurance reported a strong risk result and cost-effective operations. Combined ratio was 85 per cent for the quarter, compared with 98 per cent for the first quarter of 2011 and 91 per cent for the year 2011. Market development was positive, and the premium income increased by 11 per cent during the quarter.

Storebrand Bank: Low losses on loans
Storebrand Bank delivered a result of NOK 56 million for the quarter. A good development for losses has led to reversal of loan loss provisions.

Strengthened capital situation - repayment from SPP to Storebrand ASA
The solvency margin of the Storebrand Life Insurance Group was 163 per cent. SPP Life Insurance's solvency margin was 226 per cent at the end of the quarter.

SPP's strengthened solvency as a result of rising market interest rates and a positive trend in the equity markets has provided grounds for repayment of a SEK 500 million loan to Storebrand ASA. This will be carried out in the second quarter.

Lysaker, 3 May 2012

Contacts:
Communications Director Jan Otto Risebrobakken: Mobile +47 48 08 26 02
Head of Investor Relations Trond Finn Eriksen: Mobile +47 99 16 41 35

Enclosure: Board of Directors' Interim Report for 1Q 2012

The Storebrand Group is a leading company in the Nordic market for life insurance, pensions and long-term savings. The Group consists of the following business areas: Life and Pensions, Asset Management, Banking and Insurance.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act