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Storebrand ASA: Guidelines on implementation of new mortality tables

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The Ministry of Finance has in a letter to Finanstilsynet[1] 27 March 2014 issued guidelines for the step up plans for reserve strengthening for new mortality tables;

  1. Surplus return in one contract can not be used to strengthen reserves on other contracts (no "solidarity").
  2. The Insurance companies should contribute at least 20 percent of the increased reserves. Allocations shall be made to every contract.
  3. The step up plans for the insurance companies shall be determined so that the contribution from shareholders is reasonable, ie assumptions about at least 20 percent shareholder contribution. The Ministry notes that the length of the step up plans must increase for the shareholders contribution to remain unchanged.

Storebrand's reserve strengthening requirement is NOK 12.5 billion. Storebrand will come with further information when step up plans from Finanstilsynet are available.

Lysaker, 28 March 2014

Contacts

Elin Myrmel-Johansen, Director of Communications, mob +47 934 80 538
 
Trond Finn Eriksen, Head of Investor Relations, mob +47 991 64 135    

[1] Norwegian FSA

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