Annual Review 2009

”We retained both our profitability and robust key figures in all core business segments throughout the financial crisis. The sharp improvement in earnings for the non-life insurance operations, SEK 13 billion, has created a basis for elevated ambition levels in the banking and life-assurance activities. The life-assurance return was weak in 2009, but has been highly competitive for the past two years and in the long term” says Sten Dunér, President of Länsförsäkringar AB, the Alliance’s jointly owned company. 2009 in brief: • Based on strong key figures, all core business segments are continuing to grow and generate favourable profitability. • Operating profit for non-life insurance operations improved substantially to SEK 5,457 (loss: 7,511). The technical result fell due to the changed cost of capital and higher claims costs, and totalled SEK 1,643 M (2,453). • The Länsförsäkringar Alliance has a collective consolidation level that is uniquely strong both in a national and international context. Solvency capital rose to SEK 31,668 M (25,916) and the solvency margin to 173% (146). • Throughout the financial crisis, Länsförsäkringar Liv has pursued a policy of low-risk allocation which has always governed investments of customers’ money. Key figures remain strong with a solvency ratio of 137% (114) and collective consolidation of 107% (105). • Operating profit in the banking operations rose to SEK 258 M (245). Länsförsäkringar is Sweden’s fifth largest retail bank. Deposits were up 6% to SEK 37 billion (35) and lending to the public rose 27% to SEK 100 billion (79). Retail mortgage lending in the subsidiary Länsförsäkringar Hypotek increased 26% to SEK 68 billion (54). The risk profi le is low and credit quality remained favourable. • Cost control and risk management are becoming increasingly central parts of the operations. Efficiency-enhancement measures implemented in the jointly owned Länsförsäkringar AB in 2008 led to operating expenses for 2009 declining by 8%. • In 2009, Länsförsäkringar Fastighetsförmedling established a total of 30 housing stores, bringing the total to more than 100. Residential properties were sold for SEK 11.1 billion in 2009. Figures in parentheses pertain to 2008. The full report is available below or at www.lansforsakringar.se/reports.