"Storebrand is producing good results in a market characterised by growth and tough competition. The second quarter confirmed the strength of Storebrand's position in the pensions market. The bank is attracting good growth in customers, asset management activities reported stronger results and work on the new P&C business is progressing", comments Idar Kreutzer, Group CEO.

 

Storebrand Life Insurance has booked a net inflow of pension reserves of NOK 3.5 billion so far this year, of which Q2 accounted for NOK 0.7 billion. This demonstrates that the positive market trend is continuing. The market for mandatory occupational pensions is characterised by intense competition and a high level of activity. Storebrand is achieving good sales of occupational pensions to the corporate market through its agreements with the Confederation of Norwegian Enterprise, a large number of trade organisations and major companies such as Manpower and Norgesgruppen. Around 100,000 employees are now members of mandatory occupational pension schemes arranged through Storebrand, representing around 20% of the overall market.

 

Storebrand Life Insurance recorded a value-adjusted investment return of 2.4% for the first six months, of which Q2 accounted for minus 0.4%. The booked investment return for the first six months was 3.4%, of which Q2 accounted for 1.8%.

 

Storebrand's asset management activities reported a pre-tax profit of NOK 52 million for the first six months, as compared to NOK 22 million for the same period in 2005. Asset management activities reported improved profitability due to lower costs, higher performance related fees and an increase in assets under management. Storebrand produced a better return than the comparable benchmark indices in Q2 on 64% of the securities funds it manages. The Norwegian equity and bond portfolios were the principal areas of outperformance.

 

The marketing activities and price changes implemented by Storebrand Bank in 2005 and so far in 2006 have maintained the positive trend seen for the bank's lending portfolio. The number of new accounts opened has continued to grow in 2006. So far this year, the bank has opened over 9,000 new accounts for retail customers and during the same period gross lending has increased by NOK 1.2 billion. Strong competition in the lending market has caused downward pressure on margins for participants in the banking market in general.

 

Storebrand has decided to start 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 establishing the P&C activities is proceeding in accordance with the plan to start product distribution in Q4 2006. All the key personnel needed for the areas of products, customer service/claims settlement and projects/administration have been recruited. 

 

 

Oslo, 10 August 2006

 

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. Tel. +47 22 31 55 33 Mobile +47 93 40 38 13

 

Appendix:  Board of Directors' Interim report for Q2 2006

                  Analyst presentation Q2 2006