Storebrand: Interim results Q4 2004

"The Q4 results confirm continuing successful progress for Storebrand. The business areas of life insurance, banking and asset management all report improvements in earnings from 2003. Our focus on improving results continues with undiminished emphasis. We have a strong starting point for profitable growth in long-term savings and life insurance", comments Idar Kreutzer, Group CEO.

 

Storebrand Life Insurance reported premium income, excluding transfers, of NOK 15.3 billion for 2004, of which Q4 represented NOK 4.9 billion. Premium income for the year was 60% higher than in 2003. All product areas generated higher premium income in 2004, with sales to the retail market producing the largest increase.

 

Storebrand set up some 60 new defined contribution pension schemes for corporate customers in Q4, bringing the total number of new schemes for 2004 to approximately 460. Around 1,020 companies have set up defined contribution pension schemes with Storebrand Fondsforsikring since it launched this product in 2001.

 

The value-adjusted return for 2004 was 7.2%, of which Q4 accounted for 2.5%. Booked investment return for the year was 6.4%, of which Q4 accounted for 2.2%. Unrealised gains increased by NOK 498 million in Q4. Increases in unrealised gains are credited to the market value adjustment reserve, which amounted to NOK 2.8 billion at year-end. The value-adjusted return including unrealised gains on bonds held to maturity was 7.6% for 2004.

 

Storebrand has started 2005 in a strong financial condition. The life insurance company's risk capital increased by NOK 1.7 billion in Q4 to NOK 11 billion. The company's strong capital adequacy played a role in the recent decision by Standard & Poor's to upgrade Storebrand Life Insurance's rating from 'A-' to 'A'.

 

Storebrand Bank continues to show an improving trend. The bank improved its pre-tax earnings by NOK 234 million in 2004. Q4 saw a net write-back of loan loss provisions of NOK 32 million. The bank continues to reduce its non-performing loans as planned, and the level of loan loss provisioning relative to non-performing and loss-exposed loans increased from 49% to 63% over the course of 2004.

 

Storebrand Investments had assets under management of NOK 165 billion at the close of Q4. This represents a decline of NOK 14 billion in Q4 and an increase of NOK 6 billion for the year as a whole. If assets managed for If are excluded from the figures, assets under management show an increase of NOK 24 billion in 2004.

 

On the basis of Storebrand's earnings, capital situation and dividend policy, the Board of Storebrand ASA will recommend that the Annual General Meeting approve a dividend of NOK 7 per share for 2004, of which the dividend for the year's activities represents NOK 1.20 per share. This will amount to a distribution of NOK 1,840 million after adjusting for Storebrand's holdings of its own shares. The Board is planning a further repurchase program for the company's own shares.

 

 

Oslo, 16 February 2005

 

Appendix: Board of Directors' Interim report for Q4 2004