Storebrand ASA : Storebrand ASA 1Q 2013: Stable growth and improved results

 Storebrand ASA : Storebrand ASA 1Q 2013: Stable growth and improved results

  oGroup profit of NOK 552 million for 1^st quarter
  o17 per cent growth in premium income for non-guaranteed pensions
  o7,4 per cent increase in fee and administration income
  oCost 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


  oGroup profit of NOK 552 million for 1^st quarter
  o17 per cent growth in premium income for non-guaranteed pensions
  o7,4 per cent increase in fee and administration income
  oCost 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
Storebrand Q1 2013 presentation
Storebrand ASA Q1 2013 interim report

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Source: Storebrand ASA via Thomson Reuters ONE
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