Storebrand: Results Q1 2006
Good results continue
* Group profit of NOK 460 million for Q1 as compared to NOK 314 million for the same period in 2005.
* Good investment return further strengthens risk capital and gives a good result for the life company's customers and owner.
* Significant growth in the group's business volumes through new customers, strong net inward transfers of pension business and favourable conditions in the financial markets.
* Storebrand has won important contracts in the market for mandatory occupational pensions.
"Storebrand continued its positive trend in the first quarter. We are delivering as promised in a market characterised by growth and tougher competition", comments Idar Kreutzer, Group CEO.
He goes on to point out that Storebrand is making its mark in the competition for pensions customers, and is attracting strong growth in the number of its banking customers. Storebrand will combine its continuing growth with efficient and customer-oriented use of the group's resources.
Major pension customers choose Storebrand
Storebrand Life Insurance booked a net inflow of pension reserves of NOK 2.8 billion in Q1. The background for the good inflow is that Storebrand won a number of major pension contracts in 2005, and a significant number of these transfers were booked in Q1 2006. The positive market trend has continued in 2006. Storebrand has been selected by the Confederation of Norwegian Enterprise as the preferred supplier of mandatory occupational pension arrangements for its member companies, and since the close of Q1 Storebrand has signed pension contracts with major companies such as Norgesgruppen and Manpower.
Storebrand Life Insurance generated a value-adjusted investment return of 2.8% for the quarter. The booked return after the first three months was 1.6%, and unrealised gains increased by NOK 1,844 million.
Asset management reports sound growth and good investment returns
Storebrand Investments had assets under management of NOK 209 billion at the end of Q1, an increase of NOK 4 billion from the start of the year. Storebrand Investments produced a better return in Q1 than the comparable benchmark indices (before deducting management fees) on 77% of the securities funds it manages. Seven of the ten portfolios managed for Storebrand Life Insurance outperformed their benchmark.
5,000 new banking customers
The activities and measures implemented by Storebrand Bank in 2005 and so far in 2006 have had a good effect on the inflow of new customers to the bank. The positive trend seen for the bank's lending portfolio has continued, and the number of new accounts opened has kept growing in 2006. The bank has opened over 5,000 new accounts for retail customers in Q1 2006.
Resumption of P&C business under way
Storebrand has decided to resume sales of P&C insurance products to the retail market. This will complement the range of products offered by Storebrand, and strengthen its commitment to the retail market. Work on re-establishing this business is under way, and Storebrand will be ready to offer its customers P&C insurance products before the close of 2006.
Group profit for the quarter was affected by a gain of approximately NOK 40 million from the sale of Storebrand's ownership interest in the Danish P&C company Fair Forsikring, and by a guarantee fund repayment to Storebrand Skadeforsikring of NOK 49 million.
Oslo, 10 May 2006
Appendix: Board of Directors' Interim report for Q1 2006
For further information contact:
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Egil Thompson, Director of Corporate Communications. Tel. +47 22 48 95 86
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Mobile +47 93 48 00 12
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Nils Robert Hodnesdal, Investor Relations. Tel. +47 22 31 55 33
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Mobile +47 93 40 38 13
