DNB Livsforsikring AS – transitional effects from new tax rules

DNB Livsforsikring AS is a wholly owned subsidiary of DNB ASA. In the fourth quarter of 2018, the following allocations and financial statement entries of significance to the company's profits were made: 

By adopting the Act of 20 December 2018, the Norwegian Storting laid down new tax rules with appurtenant transitional rules for life insurance and pension companies, with effect for 2018. The new rules involve taxation of income and costs related to assets in the common portfolio and the investment choice portfolio. The transition to new rules is regulated in the transitional provisions, where tax value and commitments as at 31 December 2018 shall be determined in line with the accounting rules. Changes in tax value are taxable or deductible in the 2018 fiscal year. 

Based on our evaluation and understanding of the new tax rules with appurtenant transitional rules, the transition will result in a tax loss for DNB Livsforsikring. This means that the company will have a taxable income of about NOK 4 billion for 2018. On 21 December, the Norwegian Directorate of Taxes gave a statement of principles of their understanding of the transitional rule that may be conceived as divergent. 

The accounting effects for DNB ASA will be an impact on profits in the fourth quarter of about NOK 4 billion, which is recorded as income under tax expenses. This will not have any effect on capital for the DNB Group before the amount or part thereof is distributed as dividends to DNB ASA. The distribution of dividends will be assessed at the year-end closing of accounts in DNB Livsforsikring AS and will be decided at the general meeting of DNB Livsforsikring AS in April 2019. Several elements will be taken into account in this assessment, such as the company's dividend policy, future market development and the company's tax position. 

Contact persons:

Rune Helland, head of Investor Relations, tel: +47 977 13 250
Thomas Midteide, group executive vice president, Media & Marketing, tel.: + 47 962 32 017
Anders Skjævestad, CEO DNB Liv, tel.: + 47 934 07 403

This information is subject to the disclosure requirements according to Section 5-12 of the Norwegian Securities Trading Act.