Länsförsäkringar Alliance: Year-End Report 2012

“The Länsförsäkringar Alliance posted a strong earnings performance in 2012, largely due to a more favourable trend in claims costs and healthy investment income. Gratifyingly, Länsförsäkringar retained its top ranking in the Swedish Quality Index’s customer satisfaction survey in banking and insurance. Having satisfied customers can also be seen in the sharp increase in our business volumes in both unit-linked insurance and banking. Our market leading position in non-life insurance and a stable increase in premiums earned are further testimony to the strength of our brand.” says Sten Dunér, President of Länsförsäkringar AB, the Alliance’s jointly owned company.

Year in brief:

• Solvency capital strengthened SEK 3,088 M to SEK 35,797 M (32,709). The technical result from non-life insurance operations rose to SEK 1,453 M (856). The improvement was attributable to a lower claims frequency and premium increases. The combined ratio improved to 96% (100) and investment income amounted to 4.9% (neg: 2.1).

• Operating profit for Länsförsäkringar Bank strengthened to SEK 556 M (385). The improvement in earnings was attributable to strong net interest income due to higher business volumes. Return on equity strengthened to 6.3% (4.8).

• Profit for Länsförsäkringar Fondliv amounted to SEK 128 M (297). Earnings were slightly weaker due to increased non-recurring costs for the development of the pension offering. Insurance capital rose SEK 11 billion to SEK 63 billion.

• Länsförsäkringar Liv continued its work on safeguarding savers’ money and the investment portfolio was redistributed. The total return in traditional insurance was 6.1%. The solvency ratio was stable during the year and amounted to 113%, up 2%.

• In October, Länsförsäkringar AB (publ) established a Swedish MTN programme with a loan framework of SEK 2.5 billion. The MTN programme gives Länsförsäkringar AB the option of issuing bonds in EUR and SEK with accruing and fixed interest in the capital market.

Figures in parentheses pertain to 2011.

Full report

For further information please contact:

Sten Dunér, President Länsförsäkringar AB,
+46 (0)8-588 411 15, +46 (0)73-964 11 15
sten.duner@lansforsakringar.se

Malin Rylander Leijon, CFO Länsförsäkringar AB,
+46 (0)8-588 408 64, +46 (0)73-964 08 64
malin.rylander-leijon@lansforsakringar.se

Fanny Wallér, Head of Corporate Communications Länsförsäkringar AB
Phone: +46 8 588 414 69, +46 (0)70-692 77 79
fanny.waller@lansforsakringar.se