Interim Report January-September 2017
January-September 2017 compared with January-September 2016:
- The Group’s operating profit increased to SEK 2,201 M (1,743), including a positive non-recurring item of SEK 260 M in the first quarter. The return on equity amounted to 11% (10).
- Operating profit for the non-life insurance operations increased to SEK 781 M (461), of which SEK 260 M comprised remuneration for the transferred accident and health insurance business to the regional insurance companies. Premiums earned after ceded reinsurance rose to SEK 4,196 M (3,989). The combined ratio amounted to 92% (92).
- Operating profit for the Bank Group increased to SEK 1,166 M (1,077). Net interest income strengthened to SEK 2,926 M (2,519).
- Operating profit for Länsförsäkringar Fondliv increased to SEK 454 M (385). Premium income rose to SEK 6,921 M (6,465). Commission income increased to SEK 1,213 M (1,068).
Comments from Johan Agerman, President and CEO of Länsförsäkringar AB:
The Länsförsäkringar AB Group is continuing to report strong earnings. Operating profit increased to SEK 2.2 billion, with all business areas contributing to the earnings improvement.
Operating profit for the banking operations increased 8% to SEK 1.2 billion. Länsförsäkringar Bank topped the Swedish Quality Index´s customer satisfaction ranking for both retail and corporate customers, which can be seen in the bank’s steadily increasing customer inflow. This is confirmation that our customers appreciate our strong local presence combined with market-leading digital banking services.
The combined ratio for non-life insurance operations was 92%. Premiums earned increased by slightly more than 5%, mainly due to Agria’s continued robust growth, particularly in its international operations. It is also gratifying that relatively new health products, such as Bo Kvar which provides financial protection for the bank’s mortgage customers, received a positive reception in the market in 2017.
Premium income for the unit-linked insurance operations rose 7% and managed assets increased to SEK 124 billion. Both the scope and quality of Länsförsäkringar’s fund range were expanded in 2017, following our new fund strategy of simplifications and greater choice for customers.
Länsförsäkringar participated in the UN’s annual meeting with the business sector to discuss the finance sector’s contribution to the 2030 Agenda for Sustainable Development goals. It is fantastic that Länsförsäkringar has the opportunity to influence sustainability issues at a global level via the UN to create a more secure future for our customers.
Länsförsäkringar won the Swedish Brand Award for the fourth consecutive year in 2017 and our app is continuing to reap success, also internationally when we won the 2017 Red Dot Awards, one of the largest and most prestigious design competitions in the world. Länsförsäkringar also had three nominations at the 2017 Swedish Design Awards (Svenska Designpriset) for our new graphic identity and our app.
For further information, please contact:
Johan Agerman, President and CEO Länsförsäkringar AB
johan.agerman@lansforsakringar.se, 08-588 418 02, 070-348 93 50
Malin Rylander Leijon, CFO Länsförsäkringar AB
malin.rylander-leijon@lansforsakringar.se, 08-588 408 64, 073-964 08 64
Anna Glennmar, Investor Relations Länsförsäkringar AB
anna.glennmar@lansforsakringar.se, 08-588 417 42, 072-141 44 08
Fanny Wallér, Director of Corporate Communications Länsförsäkringar AB
fanny.waller@lansforsakringar.se, 08-588 414 69, 070-692 77 79
The Länsförsäkringar Alliance comprises 23 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, total solutions for reliable mortgage transactions are offered through Länsförsäkringar Fastighetsförmedling, and financial services such as leasing, repayments and loans through Wasa Kredit.
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