Storebrand ASA 1Q 2013: Stable growth and improved results
* Group profit of NOK 552 million for 1(st) quarter
* 17 per cent growth in premium income for non-guaranteed pensions
* 7,4 per cent increase in fee and administration income
* Cost measures strengthens financial performance
The Board of Director's Interim report for 1Q 2013, 1Q 2013 result presentation
and Supplementary Information are attached on http://www.newsweb.no
Storebrand will today host a press and analyst conference in Storebrands head
office at Lysaker, Professor Kohts vei 9, at 1000 CET (in Norwegian). An
international conference call will be hosted at 1400 CET. To participate in the
conference call please use link on http://www.storebrand.no/ir, or call in and
register 10 minutes before the presentation starts. Dial in number:
+47 23184536.
Full press release:
Storebrand ASA 1Q 2013: Stable growth and improved results
* Group profit of NOK 552 million for 1(st) quarter
* 17 per cent growth in premium income for non-guaranteed pensions
* 7,4 per cent increase in fee and administration income
* Cost measures strengthens financial performance
- We experience good cost control throughout the business. At the same time we
successfully manage a shift from products with guarantees to non-guaranteed
savings. This is in line with our strategy and valuable for our customers, says
CEO in Storebrand Odd Arild Grefstad.
Positive sales and market development
Unit Linked insurance products show good growth both in Storebrand Life
Insurance and in SPP. The Group's premium income for non-guaranteed pension
products increased by 17 per cent during the quarter, while premiums for
guaranteed pension products declined by 3 per cent.
- Storebrand is maintaining its position as market leader within non-guaranteed
pensions in the Norwegian occupational pensions market. The increased number of
retail customers mainly derives from employees in companies with pension plans
in Storebrand. This is strategically important for us. In the Swedish market we
have a challenger position and are pleased to see that we succeeded in sales
within unit link products, says CEO Odd Arild Grefstad.
The net new sales volume in the asset management business (external
discretionary funds and mutual funds) totalled NOK 909 million (1.3 billion) for
the quarter. There was net redemption in the Norwegian operations, but this was
more than offset by strong sales in the Swedish operations.
The retail market of the bank continues to develop positively. Good sales
performance has resulted in growth in both lending and deposits.
Storebrand Insurance reported a 9 per cent growth in premium income during the
quarter. A stable winter gives good results for insurance, which achieved a
combined ratio of 87 per cent (85 per cent) in the quarter.
Strong growth in earnings and good cost management
The administration results in the Norwegian and Swedish life business improved
as a result of cost measures, price adjustments and an increase in assets under
management. The risk results are weaker than the previous year, especially
within defined contribution. Profitability improvement measures are being
implemented.
- Our pension customers have received good returns in the quarter. Defined
contribution-customers in the largest investment portfolio have gained 5.1 per
cent return in the quarter. Returns from the guaranteed pension portfolios have
strengthened the capital buffers with a total of NOK 1.5 billion, says CEO Odd
Arild Grefstad.
Assets under management have increased by NOK 11.7 billion in the quarter.
Storebrand Bank is experiencing positive growth of net interest income. Profits
were weakened, however, by the negative change in the market value of fixed-rate
loans as a result of an increase in lending rates. However, this will improve
the margin going forward.
Capital structure and regulatory developments
The solvency margin in Storebrand Life Insurance Group (Storebrand Life
Insurance and SPP) was 165 per cent at the end of the quarter. This is an
increase of 3 percentage points since end of the year and primarily linked with
the quarterly results and an increase in interest rates in Sweden.
The Financial Supervisory Authority of Norway determined that new mortality
tables will be introduced for group pension insurance in life insurance
companies and pension funds, effective from 2014 to build reserves for higher
life expectancy (see press release 03/11/2013). The required build-up of
reserves for group pensions is estimated to be NOK 11.5 billion or around 8 per
cent of the premium reserves. Storebrand has set aside a total of NOK 4.3
billion during the period from 2011 to 2012 for future reserves for longevity.
In addition, Storebrand has built NOK 0.7 billion in buffers available for
longevity provisions during the quarter.
Lysaker, 24 April 2013
Contacts:
Elin M. Myrmel-Johansen
Director of Communications, mob +47 934 80 538
Trond Finn Eriksen
Head of Investor Relations, mob +47 991 64 135
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act
Storebrand 1Q 2013 supplementary information:
http://hugin.info/169/R/1695561/558002.pdf
Storebrand Q1 2013 presentation:
http://hugin.info/169/R/1695561/557997.pdf
Storebrand ASA Q1 2013 interim report:
http://hugin.info/169/R/1695561/557999.pdf
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Source: Storebrand ASA via Thomson Reuters ONE
[HUG#1695561]