Länsförsäkringar Alliance: Interim Report January - June 2018
”The Länsförsäkringar Alliance reported healthy results for the first six months of 2018. Operating profit for the non-life insurance operations amounted to SEK 4.1 billion, with solid investment income of SEK 3.9 billion and growth in premiums of 5%. However, the claims ratio increased slightly, mainly due to higher costs for fire and accident claims. This resulted in a combined ratio of 98%. Based on the highly favourable earnings in 2017, the regional insurance companies will pay back a total of SEK 1.8 billion in bonuses and discounts during 2018 to their owners – the customers.
The Länsförsäkringar AB Group also reported strong earnings of SEK 1.4 billion. Non-life insurance operations contributed an operating profit of SEK 0.3 billion and the combined ratio was 93%. Agria’s growth continued and operations started in France in April. Operating profit for the banking operations increased to SEK 0.9 billion due to a stable customer inflow. Lending improved 14% with continued high credit quality. Operating profit for the unit-linked insurance operations amounted to SEK 0.3 billion and managed assets increased to SEK 135 billion, of which 21% of the increase stemmed from net flows from existing and new customers.
Länsförsäkringar entered into an important partnership with Toyota in the first half of the year and in 2019 Länsförsäkringar will take over responsibility for brand insurance and vehicle-damage guarantees for Toyota and Lexus cars in Sweden. With Toyota as a partner, Länsförsäkringar will be well-equipped to meet the rapid advances in the motor insurance market and thereby continue to offer relevant insurance solutions.
The hot summer caused severe drought conditions in Sweden, which mainly impacted farmers. Länsförsäkringar works actively on claims-prevention measures, and expanded capacity this summer to support farmers and forest owners. Länsförsäkringar Alliance’s claims costs arising from this summer’s forest fires and torrential rain are expected to be relatively limited, and to be spread over a number of smaller claims.
Fredrik Bergström will become the President and CEO of Länsförsäkringar AB in September. Fredrik is currently the President of Länsförsäkringar Stockholm and possesses in-depth knowledge of the Länsförsäkringar Alliance. I am now retiring after 18 years at Länsförsäkringar, and am very grateful for having been part of Länsförsäkringar’s exciting development.”, says Sören Westin, President and CEO of Länsförsäkringar AB, The Länsförsäkringar Alliance´s jointly owned company.
The period in brief
- Operating profit for the Länsförsäkringar Alliance’s non-life insurance operations amounted to SEK 4,071 M (5,215). Premiums earned after ceded reinsurance rose 5% to SEK 13,136 M (12,495).
- The technical result for the Länsförsäkringar Alliance’s non-life insurance operations amounted to SEK 655 M (948). The combined ratio was 98% (95).
- Investment income for the Länsförsäkringar Alliance amounted to SEK 3,871 M (4,629).
- Operating profit for the Länsförsäkringar AB Group was SEK 1,376 M (1,497). The return on equity was 11% (12).
- Operating profit for Länsförsäkringar AB’s non-life insurance operations amounted to SEK 292 M (624). The combined ratio was unchanged at 93% (93).
- Operating profit in the Bank Group rose 20% to SEK 888 M (737). Net interest income strengthened to SEK 2,193 M (1,911).
- Operating profit for Länsförsäkringar Fondliv amounted to SEK 288 M (290). Premium income amounted to SEK 4,618 M (4,751). Commission and fee income increased to SEK 861 M (805).
- Profit for Länsförsäkringar Liv amounted to SEK 783 M (1,937).
Figures in parentheses pertain to the same period in 2017.
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For further information, please contact:
Sören Westin, President and CEO Länsförsäkringar AB
soren.westin@lansforsakringar.se, +46 (0)8-588 414 25, +46 (0)73-964 14 25
Malin Rylander Leijon, CFO Länsförsäkringar AB
malin.rylander-leijon@lansforsakringar.se, +46 (0)8-588 408 64, +46 (0)73-964 08 64
Anna Glennmar, Investor Relations Länsförsäkringar AB
anna.glennmar@lansforsakringar.se, +46 (0)8-588 417 42, +46 (0)72-141 44 08
Fanny Wallér, Director of Corporate Communications Länsförsäkringar AB
fanny.waller@lansforsakringar.se, +46 (0)8-588 414 69, +46 (0)70-692 77 79
The Länsförsäkringar Alliance is comprised of 23 local and customer-owned regional insurance companies and the jointly owned Länsförsäkringar AB. Customers are provided with a complete offering of banking and life and non-life insurance services through their local, regional insurance companies. We offer animal and crop insurance through Agria Djurförsäkring, total solutions for reliable mortgage transactions through Länsförsäkringar Fastighetsförmedling, and financing services such as leasing, instalment payments, and loans through Wasa Kredit.
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