The Board of SPP Livförsäkring AB, a company within the Storebrand Group, has on 26 November approved changes in the insurance terms for the defined benefit based product (DB), which the company offers in the Swedish market.

 

The approved changes will give higher expected return on invested capital and secure increased buffer capital. This will result in increased expected pension payments to the policyholders and an improved earnings profile for SPP. 

 

The new insurance terms enables SPP to better adapt the asset management to the long term nature of the insurance liabilities, which will thus increase the expected return in the investment portfolios. Compared to the existing practice, insurance liabilities in DB insurance contracts will be measured by using a market rate instead of a guaranteed interest rate.

 

Following the new changes, the present profit sharing of investment return between the policyholder and the insurance company will be replaced with a model where the insurance company receives a fee when pensions are indexed.  

 

The new insurance terms will be introduced from 1 January 2010. The approved changes will not have any impact in the current year.

 

Details regarding the new insurance terms are described in the enclosed document. 

 

 

Oslo, 26 November 2009

 

Contact persons:

EVP Corporate Communications Egil Thompson: Mobile (+47) 93 48 00 12

Head of Investor Relations Trond Finn Eriksen: Mobile (+47) 99 16 4135