"Storebrand is growing in a strong market, and delivers satisfactory group profit for the first quarter of 2007. New business areas are developing according to plan, and measures implemented to strengthen competitiveness and improve operational efficiency are continuing at full strength", comments Idar Kreutzer, Group CEO.   

 

Storebrand Life Insurance again reported growth in business volumes. Transfers of pension business produced a net inflow of pension reserves of NOK 384 million in Q1. Sales of pension products to the corporate market remain strong. By the close of Q1, around 16,000 companies had established mandatory employer's pension schemes through Storebrand, representing annual premium volume of NOK 960 million. This represents growth of NOK 190 million in the quarter.  

 

Total premium income, excluding transfers of pension reserves to Storebrand Life Insurance, was 10% higher than in the same quarter of 2006 at NOK 5.4 billion. The life insurance company's investment portfolio performed well in Q1. Value-adjusted investment return was 2.1% in the quarter, and unrealised gains increased by almost NOK 900 million

 

Asset management activities reported continuing improvement in profitability. Pre-tax profit for Q1 increased to NOK 31 million from NOK 20 million in 2006. The quarter's results reflect growth in assets under management and a good investment performance on assets under management.

 

Storebrand Investments had NOK 220 billion of assets under management at the end of Q1. This represents an increase of NOK 3 billion from the start of the year. The increase was driven by large inflows to mutual funds and growth in value for the portfolios managed.

 

Lending to the retail market has increased by 7% for the year to date, and 5,900 new accounts were opened in Q1. Measures implemented to improve profitability are expected to show a gradual effect over the course of 2007.

 

The newly established P&C insurance business of Storebrand Skadeforsikring has been well received. The company attracted 3,300 new customers in Q1, bringing total customer numbers to 5,400 at the end of March. A sizeable 55% of the new customers have purchased P&C insurance products through the company's web site.

 

 

Oslo, 2 May 2007

 

For further information contact:

Egil Thompson, Director of Corporate Communications.

Tel. +47 22 48 95 86 Mobile +47 93 48 00 12

Nils Robert Hodnesdal, Investor Relations. Mobile +47 93 40 38 13

 

Appendix: Board of Directors' Interim report for Q1 2007 and

               Analystpresentation Q1 2004