Länsförsäkringar Hypotek: January – March 2020

”We can see that the conditions in the housing market have been impacted by the outbreak of COVID-19 given the far-reaching effects that the pandemic has had on society and the economy thus far. The housing market has been stable for a longer period, but there is a significant risk that new lock-in effects will be created in the market due to the macroeconomic climate. We are closely monitoring the situation and working together with the regional insurance companies to take action to ease the situation for affected customers. The financial performance of Länsförsäkringar’s mortgage lending operations was favourable during the quarter despite the circumstances. The credit quality of the mortgage portfolio remained very high and credit losses were unaffected and remained low. Despite the turbulence in the financial markets in the wake of the outbreak of COVID-19, the funding situation was favourable and the Swedish covered bond market has functioned well during the period”, says Anders Borgcrantz, President of Länsförsäkringar Hypotek.