Over SEK 2.5bn to be shared among SPP's customers
On 1 January 2006, SPP was converted from a mutually run life insurance company into a profit-distributing company. In such a demutualisation, all surpluses must be distributed among policyholders.
The 2005 figures for SPP as a mutually run life insurance company have now been completed. The result is that policyholders with traditional insurance share in over SEK 2.5bn.
"It's obviously very pleasing that we were able to close our operations as a mutually run company with a surplus of billions of kronor for our customers," says Göran Holgerson, deputy chief executive of SPP.
All insurance capital in defined-contribution policies with guaranteed interest (i.e. traditional insurance) is being adjusted upwards by 2.95 percent. In total, including the bonus rate, customers' capital is being adjusted up by 4.45 percent for 2005.
"In practice, this means that our policyholders received a bonus above the sector average* for companies run on mutual principles," says Göran Holgerson.
More detailed information will be sent to customers during the spring.
Greater opportunities for higher returns
As part of the demutualisation process, SPP's owner Handelsbanken contributed risk capital totalling SEK 13bn. This gives SPP greater opportunities to increase the proportion of equities in its investment portfolio, which in turn could give higher returns.
"This type of substantial, external risk capital does not exist in a mutually run life insurance company, where customers bear all the risks. Therefore, we at SPP can offer far greater savings security than our competitors," explains Göran Holgerson.
*Source: The Swedish Insurance Federation
For further information, please contact: <!-- hugin-supplied --><br> Göran Holgerson, deputy CEO, SPP +46 8 701 7175 <!-- hugin-supplied --><br> Johan Lagerström, assistant head of corporate communications, Handelsbanken +46 8 701 1395 <!-- hugin-supplied --><br> Mobile: +46 70 265 8014