Interim Report January – June 2010

“The improvement in Länsförsäkringar Bank’s earnings in gradual increments, while constantly maintaining a clear, long-term trend, continued. Market growth continued in the shape of rising portfolios and volumes in non-life insurance, new sales and premium

income in life assurance and pension insurance, in addition to volumes at Bank. Particularly gratifying is the market leading position in occupational pension. The winter resulted in a sharp rise in claims costs that will affect certain key figures in the short term. Solvency capital was up SEK 3 billion year-on-year. Work on expanding the offering and the Bank brand intensified,” says Sten Dunér, President of Länsförsäkringar AB, the Alliance’s jointly owned company. 

The period in brief 

• The company maintained its market-leading position in non-life insurance, with increased volumes and portfolios. Technical results declined, due to increased claim costs stemming from the harsh winter, amounting to a loss of SEK 121 M (profi t: 962). The combined ratio was 106% (95) and the claims ratio was 84% (73). 
• Länsförsäkringar Alliance’s collective consolidation ratio is uniquely strong, in domestic and international comparisons. Solvency capital amounted to SEK 31,882 M and the solvency margin was 174%. 
• Länsförsäkringar’s life assurance operations showed robust growth, particularly in unit-linked insurance. The total yield was 1.9%, which was not in line with expectations. Key figures remained strong, although the low interest rate scenario had an adverse effect on solvency, which amounted to 126% (143). Collective consolidation was 107% (104). 
• Länsförsäkringar is Sweden’s fifth largest retail bank and business volumes rose 17% to SEK 214 billion (184). Operating profit increased to SEK 146 M (133) and net interest income to SEK 614 M (583).

The full report is available attached.

For further information please contact:
Sten Dunér, President of Länsförsäkringar AB
Phone: +46 8 588 411 15, +46 73 964 11 15 

Christer Baldhagen, Director of Corporate Communications Länsförsäkringar AB
Phone: +46 8-588 415 01, +46 70-579 70 66

The Länsförsäkringar Alliance comprises 24 local and customer-owned regional insurance companies and the jointly owned Länsförsäkringar AB. Customers are provided with a complete offering of banking and insurance services through their local, regional insurance companies. We offer animal and crop insurance through Agria Djurförsäkring and total solutions for reliable mortgage transactions are offered through Länsförsäkringar Fastighetsförmedling.