Länsförsäkringar Alliance January–September 2012

Länsförsäkringar reports strong earnings for the nine-month period. Improved investment income primarily contributed to these earnings, as did lower claims costs in the non-life insurance operations and the bank’s improved net interest income. Growth in the banking operations is continuing. Profitability for Länsförsäkringar Bank is healthy. Profit rose slightly more than 60%.

The situation at the bank in terms of both borrowing and liquidity is favourable. In October, we again received confirmation that our customers believe that we are doing a good job when the Swedish Quality Index revealed that we have Sweden’s most satisfied retail bank customers for the sixth consecutive year.

The non-life insurance operations also reported a healthy volume trend and robust profitability. A lower claims ratio was the primary reason behind the improved earnings. Following the restructuring of the life-assurance operations, the focus on offering unit-linked insurance solutions to both corporate customers and private individuals is continuing. This clear focus has led to higher premium volumes

The period in brief

• The technical result from the Länsförsäkringar Alliance’s non-life insurance operations strengthened to a profit of SEK 1,099 M (612). The improvement is attributable to a lower claims ratio due to a lower claims frequency and premium increases. The combined ratio improved to 97 % (100).

• Solvency capital strengthened to SEK 34,665 M (31,179), due to a stable technical result and positive investment income.

• Operating profit in Länsförsäkringar Bank rose 62% to SEK 428 M (265), primarily due to higher net interest income. Return on equity strengthened to 6.5% (4.5). Business volumes rose 14%, or SEK 33 billion, to SEK 274 billion (241) and the number of customers increased 8% to 938,000 (871,000).

• Profit for Länsförsäkringar Fondliv amounted to SEK 99 M (133). Insurance capital has increased SEK 8 billion since year-end and amounts to SEK 60 billion. A positive return and higher premium and capital inflows from new customers is the main reason for this increase.

• Profit for Länsförsäkringar Liv amounted to SEK 2.7 billion (loss: 18.5), mainly a result of positive investment income. The total return in traditional management was 4.9%. The solvency ratio remains unchanged from January 1 at 111%.

• 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.

  

For further information, please contact:
Sten Dunér, vd Länsförsäkringar AB
Telefon: +46-73-96 411 15
Malin Rylander Leijon, CFO Länsförsäkringar AB
Telefon: +46-73-964 08 64

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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