Storebrand: Interim results Q2 2005

"Storebrand's performance continued to improve in the second quarter. The bank is performing strongly, and in life insurance we are producing satisfactory results for our customers and shareholders", comments Idar Kreutzer, Group CEO.

"Market conditions are very dynamic. The changing regulatory framework and tough competition are driving rapid change, and there is a high level of activity throughout our group. Storebrand is well placed for continuing growth in the markets for pensions, long-term savings and life insurance", adds Idar Kreutzer.

 

Premium income (excluding transfers) at Storebrand Life Insurance was 63% higher in Q2 2005 than in the same quarter last year, with total premium income for the first six months of NOK 11.1 billion.

 

Developments in the first six months have confirmed that an increasing number of Norwegian companies are arranging defined contribution pension schemes for their employees. Storebrand set up 200 new defined contribution pension schemes for corporate customers in H1 2005. Around 1,300 companies have now set up defined contribution pension schemes with Storebrand since it launched this product in 2001.

 

With effect from 1 January 2006, all Norwegian companies will be required to provide pension schemes for their employees. Storebrand is involved in an extensive program of work to prepare pension products suitable for large numbers of small and medium-sized companies. The Federation of Norwegian Commercial and Service Enterprises and the Norwegian Haulier's Association were among the organisations that signed agreements with Storebrand on pension products for their members in Q2. Storebrand has so far agreed pension arrangements with trade associations that cover 19,000 companies with 350,000 employees.

 

Storebrand produced a satisfactory and competitive return on its life insurance policyholders' funds in H1. The booked investment return was 3.1% for H1, equivalent to an annualised return of 6.4%. The value-adjusted return was 3.3%, while the value-adjusted return including unrealised gains on bonds held to maturity was 3.5%.

 

The credit ratings company Moody's upgraded Storebrand Livsforsikring from A3 to A2 on 8 August 2005.

 

Storebrand Investments had assets under management of NOK 171 billion at the close of Q2. This represents an increase of NOK 6 billion since the start of the year. Storebrand Investments produced a better return than the comparable benchmark indices (before deducting management fees) on 52% of the securities funds it manages.

 

Storebrand Bank again reported a strong improvement in earnings, with pre-tax profit of NOK 69 million in Q2. This brings pre-tax profit for H1 2005 to NOK 141 million, an improvement of NOK 107 million from the same period in 2004.