Results Q3 2003

The quarter's performance reflects good sales of life insurance and pension products to both the retail and corporate markets. Cost saving measures are producing results in line with expectations, and equity markets have shown an improvement.

 

"Storebrand's operations are working well, and have produced a satisfactory improvement in profitability", comments Idar Kreutzer, Group CEO. "The measures we have implemented to improve profitability are producing the intended results, and will be continued with undiminished force. We are concentrating our activities on pensions and long-term savings, and Storebrand is very well equipped to meet the growth expected in both company pensions and private savings in Norway", adds Mr Kreutzer.

 

Strong growth in life insurance sales

Storebrand Life Insurance has shown a positive trend for net inflow from policy transfers and premium income over the course of this year, and reported a further improvement in Q3. Total premium income, excluding transfers, was 18% higher in the first nine months than in the same period last year. Transfers of group pension schemes between companies for the first nine months represented a net inflow of premium reserves of NOK 1,523 million.

 

Sales of savings products to the retail market were an area of particular strength for the life insurance company in Q3. Premium income from individual endowment policies was almost three times higher than in the first nine months of 2002. The positive trend seen for Storebrand Helseforsikring also continued in Q3, with premium income up by 74% from the same quarter last year. 

 

The life company produced a value adjusted investment return of 6.0% (0.2%) for the first nine months, with a return of 1.8% in Q3. If unrealised gains on bonds held to maturity are taken into account, the value adjusted investment return for the first nine months increases to 8.1%. Exposure to equities (including derivatives) increased by 0.9 percentage points in Q3 to 12.2%. The sound profitability reported for the first nine months is reflected in an increase in the life company's risk capital in excess of the statutory minimum of NOK 2.7 billion to NOK 7.4 billion.

 

Investment returns ahead of benchmark indices

Storebrand Investments achieved a good investment return on its products. Figures for the year to date show that 80% of the mutual funds and discretionary portfolios managed by Storebrand have produced a better return than their benchmark indices. Total assets under management amounted to NOK 153.0 billion at the end of Q3, representing an increase of NOK 3.5 billion for the quarter and of NOK 13.2 billion since the start of the year.

 

Storebrand Bank reduced the volume of non-performing and loss-exposed loans in Q3, but the overall level remains high.

 

Strong earnings performance from If

The improving earnings trend at If has continued. If reported a combined ratio of 98.5% for Q3 (104,3%). The company produced a value adjusted investment return of 3.7% for the first nine months. Storebrand's share in If's results represented a profit of NOK 80 million in Q3.

 

 

Oslo, 5 November 2003