Länsförsäkringar Alliance: Interim Review January-June 2024

January-June 2024 in brief Figures in parentheses pertain to the same period in 2023.

• Profit before tax for the Länsförsäkringar Alliance’s non-life insurance operations increased to SEK 7,492 M (5,509), with investment income of SEK 8,064 M (5,498).
• The technical result for the Länsförsäkringar Alliance’s non-life insurance operations declined to SEK 229 M (838). Premiums earned after ceded reinsurance increased 6% to SEK 17,579 M (16,581). The combined ratio amounted to 103.6% (100.9).
• The Länsförsäkringar AB Group’s profit before tax increased to SEK 2,649 M (2,020). Return on equity amounted to 8% (12).
• The Länsförsäkringar AB Group’s non-life insurance operations reported profit before tax of SEK 339 M (384). Premiums earned after ceded reinsurance rose 7% to SEK 4,700 M (4,375). The combined ratio was 96.3% (93.3).
• The Länsförsäkringar Bank Group’s profit before tax increased to SEK 1,270 M (1,130). Net interest income declined 5% to SEK 3,353 M (3,515). Return on equity amounted to 9.2% (8.6).
• Länsförsäkringar Fondliv’s profit before tax increased to SEK 1,174 M (759). Premium income increased 58% to SEK 15,368 M (9,710). Commission and fee income amounted to SEK 1,100 M (1,025).
• Länsförsäkringar Liv’s profit increased to SEK 4,614 M (2,860).

- The global economy continued to recover in the first half of 2024, with economic activity increasing and stock markets rallying.  The recession was, nevertheless, felt by many customers in the first half of the year, and combined with geopolitical turmoil, this creates uncertainty for our customers. Länsförsäkringar is also affected by rising costs, primarily higher development costs and claims costs. Digitisation and the rapid advances of AI development mean that our offering must be continuously adapted to the business environment and changed customer needs. Our claims costs increased in the first half of 2024. A long and cold winter resulted in an increased claims frequency combined with high repair costs. In addition, several regional insurance companies have, as customer-owned companies, decided not to fully adjust insurance premiums for customers to compensate for inflation and increased claims costs, says Mathias Collén, President and CEO of Länsförsäkringar AB, The Länsförsäkringar Alliance’s jointly owned company.

- When costs rise, it is even more important to ensure that cost awareness is incorporated throughout Länsförsäkringar’s operations – Länsförsäkringar AB is to deliver joint business, service and development to the 23 customer-owned regional insurance companies cost effectively. During the spring, we identified several areas where it is possible to make cost savings, continues Mathias Collén.

- Länsförsäkringar attaches much importance to claims-prevention activities. Länsförsäkringar’s Research Fund is turning 30 and has evolved from a small foundation focusing on preventing claims into a research fund that specialises in security challenges in society, with its projects attracting hundreds of applicants and shaping public debate. We are delighted that our customers appreciate our sustainability efforts both locally and for society as a whole as Länsförsäkringar topped the insurance sector category in the 2024 Sustainable Brand Index, says Mathias Collén.

Read more

https://www.lansforsakringar.se/other-languages/english/about-lansforsakringar/financial-reports/lansforsakringar-alliance/

For further information, please contact:

Mathias Collén, President and CEO Länsförsäkringar AB

Mathias.Collen@lansforsakringar.se, +46 (0)8-588 433 13, +46 (0)70-566 04 65

Anna Glennmar, Head of Investor Relations Länsförsäkringar AB

Anna.Glennmar@lansforsakringar.se, +46 (0)8-588 417 42, +46 (0)72-141 44 08

Lena Hedlund, Head of Communications Länsförsäkringar AB

Lena.Hedlund@lansforsakringar.se, +46 (0)8-588 403 55, +46 (0)76-496 45 57

Press contacts, 0046 8-58841850, press@lansforsakringar.se

The Länsförsäkringar Alliance is comprised of 23 local and customer-owned regional insurance companies and the jointly owned Länsförsäkringar AB. Customers are provided with a complete offering of banking and life and non-life insurance services through their local, regional insurance companies. We offer animal and crop insurance through Agria Djurförsäkring, total solutions for reliable mortgage transactions through Länsförsäkringar Fastighetsförmedling, and financing services such as leasing, instalment payments, and loans through Wasa Kredit.