Storebrand - Interim results Q1 2005

"The first quarter results demonstrate a continuing strong performance by Storebrand. We are achieving satisfactory results for customers and shareholders, and are well placed for continuing growth in the market for long-term savings in life insurance", comments Idar Kreutzer, Group CEO.

 

Storebrand Life Insurance reported a 47% year-on-year increase in premium income (excluding transfers) in Q1 2005 to NOK 6.9 billion.  The low level of interest rates has helped to maintain strong sales of savings-related products to the retail market.

 

The first three months of the year have confirmed that Norwegian companies increasingly offer pension schemes for their employees. Storebrand set up 160 new defined contribution pension schemes for corporate customers in Q1, of which 45 were pensions schemes that were converted from defined benefit schemes. Storebrand has now set up around 1,200 defined contribution pension schemes since it launched this product in 2001. This spring, the Norwegian Parliament is due to decide whether to make it compulsory for all Norwegian companies to offer pension schemes for their employees from 1 January 2006.

 

Storebrand produced a satisfactory and competitive return on its life insurance policyholders' funds in Q1. Booked investment return for Q1 was 1.4%, equivalent to an annualised return of 5.7%. The value-adjusted return for Q1 was also 1.4%, while the value-adjusted return including unrealised gains on bonds held to maturity was 1.2%.

 

Storebrand Investments had assets under management of NOK 171 billion at the close of Q1. This represents an increase of NOK 6 billion since the start of the year. Storebrand Investments produced a better return in Q1 than the comparable benchmark indices (before deducting management fees) on 74% of the securities funds it manages. Eight of the ten portfolios managed for Storebrand Life Insurance outperformed their benchmark indices.

 

Storebrand Bank's profit for Q1 showed a year-on-year improvement of NOK 53 million. The quarter's earnings reflect stronger net interest income, lower operating costs, a low level of loan losses. and effects of the transition to IFRS The sale of Finansbanken Denmark generated an accounting gain of NOK 17 million. .The transaction also increased equity by NOK 18 million.

 

Oslo, 11 May 2005