Länsförsäkringar AB, 2016 Year-end report
2016 in brief (Figures in parentheses pertain to the full-year 2015):
- The Group’s operating profit increased to SEK 2,286 M (2,155). The return on equity amounted to 10% (11).
- Operating profit in the non-life insurance operations amounted to SEK 644 M (908). Premiums earned after ceded reinsurance rose to SEK 5,342 M (5,074). The combined ratio amounted to 92% (85).
- Operating profit for the Bank Group increased to SEK 1,467 M (1,175). Net interest income strengthened to SEK 3,455 M (2,994).
- Operating profit for Länsförsäkringar Fondliv amounted to SEK 512 M (516). Premium income amounted to SEK 8,637 (8,645). Commission income was SEK 1,412 M (1,384).
- Net sales for the Parent Company increased to SEK 2,894 M (2,653).
Comments from Johan Agerman, President of Länsförsäkringar AB:
As the new President of Länsförsäkringar AB, I am looking forward to being involved in developing Länsförsäkringar. We will do this from a position of strength, backed by strong earnings and healthy growth. With satisfied customers and a strong brand.
The Länsförsäkringar AB Group can report strong earnings: operating profit improved to SEK 2,286 M. The bank’s profit increased by 25% year-on-year, driven by lower refinancing costs and continued strong growth and customer inflow, while retaining high credit quality and a well-diversified geographic spread in Sweden. Profit for the non-life insurance operations was in line with the preceding year, excluding significant run-off gains in 2015, which followed the decision to transfer a large part of the accident and health insurance business to the regional insurance companies. Health care insurance performed better than in 2015 due to lower claims costs. Agria is continuing to contribute a healthy volume trend and strong earnings, with yet another branch opening during the year, this time in Finland. However, claims costs did increase in the assumed international reinsurance business, primarily from a higher frequency of medium sized claims. Our unit-linked life assurance company is now Sweden’s leading pension insurance company for individual occupational pensions, managing assets of SEK 114 billion. We reduced our fund fees for equity funds in September to create even better value for our customers.
In addition to our healthy results and strong growth, we also saw proof this year that our customers appreciate our efforts – according to the Swedish Quality Index we have the most satisfied customers in banking, non-life insurance, pension insurance and real-estate brokerage. Another pleasing achievement is that the Swedish Sustainability Ranking revealed that the Swedish public rank Länsförsäkringar as number one in sustainability in banking, pension and insurance. Long term sustainability is a central part of our operations and we work continuously on sustainability issues, such as responsible investments - we launched our new sustainability fund Länsförsäkringar Global Hållbar in October.
Read the full report: http://www.lansforsakringar.se/om-oss/in-english/financial-reports/lansforsakringar-ab/
For further information, please contact:
Johan Agerman, President 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 and total solutions for reliable mortgage transactions are offered through Länsförsäkringar Fastighetsförmedling.
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