Länsförsäkringar Alliance: Interim Review January-June 2019

”The first half of 2019 for Länsförsäkringar can be summarised by healthy growth and returns, but a higher number of non-life insurance claims.

The Länsförsäkringar Alliance reported strong operating profit for the first half of 2019. Operating profit for the non-life insurance operations amounted to SEK 6.5 billion, boosted by 4% growth in premiums and investment income of SEK 7.0 billion. The stock markets reported a very strong end to the half-year. However, the Länsförsäkringar Alliance’s claims costs increased, primarily due to natural catastrophes such as storms, one of which was storm Alfrida. Claims costs also rose due to fires, including several cases of larger fire damages. This contributed to a combined ratio of 100%.

The Länsförsäkringar AB Group reported solid operating profit of SEK 1.5 billion. The non-life insurance operations contributed an operating profit of SEK 0.4 billion and the combined ratio was 96%. Agria’s healthy growth continued in the first half of 2019. The high inflow of new customers to the banking operations also continued, which led to steadily growing market shares and operating profit of SEK 1.0 billion. Deposits increased 11% and lending rose 9% with continued high credit quality. Operating profit for the unit-linked insurance operations amounted to SEK 0.4 billion. Managed assets increased 16% to SEK 146 billion due to the favourable stock-market trend and positive net inflow of premiums and capital from existing and new customers.

Länsförsäkringar’s high customer satisfaction is very gratifying, and is not something we take for granted! That is why we work continuously on strengthening our customer offering, our strong local presence and our digital services. Our new core banking system was implemented with great success in April. The system replacement marks a key milestone for the banking operations and the new modern IT platform will help make service in the digital area even better, both now and in the future. In June Länsförsäkringar’s Open Banking platform was launched with the aim of building new, innovative services that make everyday life easier and create security and added value for customers.

Länsförsäkringar continuously works to improve its own actions to promote a more sustainable society. We have identified 7 of the UN Sustainable Development Goals and 13 targets as relevant and clearly linked to Länsförsäkringar Alliance´s operations.”, says Fredrik Bergström, President and CEO of Länsförsäkringar AB, The Länsförsäkringar Alliance’s jointly owned company.

January-June 2019 in brief

• Operating profit for the Länsförsäkringar Alliance’s non-life insurance operations increased to SEK 6,494 M (4,071). Premiums earned after ceded reinsurance rose 4% to SEK 13,675 M (13,136).
• Investment income in the Länsförsäkringar Alliance’s non-life insurance operations increased to SEK 7,033 M (3,871).
• The technical result for the Länsförsäkringar Alliance’s non-life insurance operations amounted to SEK 323 M (655). The combined ratio was 100% (98).
• Operating profit for the Länsförsäkringar AB Group increased to SEK 1,453 M (1,376). The return on equity amounted to 10% (11).
• Operating profit for the Länsförsäkringar Sak Group increased to SEK 375 M (292). The combined ratio amounted to 96% (93).
• Operating profit for the Länsförsäkringar Bank Group rose to SEK 958 M (888). Net interest income strengthened to SEK 2,272 M (2,193).
• Operating profit for Länsförsäkringar Fondliv amounted to SEK 375 M (288). Premium income rose to SEK 4,719 M (4,618). Commission and fee income amounted to SEK 848 M (822).
• Profit for Länsförsäkringar Liv increased to SEK 2,280 M (783).

Figures in parentheses pertain to the same period in 2018.

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

       
For further information, please contact:

Fredrik Bergström, President and CEO Länsförsäkringar AB
fredrik.bergstrom@lansforsakringar.se, +46 (0)8-588 414 25, +46 (0)73-964 14 25

Malin Rylander Leijon, CFO Länsförsäkringar AB
malin.rylander-leijon@lansforsakringar.se, +46 (0)8-588 408 64, +46 (0)73-964 08 64

Anna Glennmar, Investor Relations Länsförsäkringar AB
anna.glennmar@lansforsakringar.se, +46 (0)8-588 417 42, +46 (0)72-141 44 08

Fanny Wallér, Director of Corporate Communications Länsförsäkringar AB
fanny.waller@lansforsakringar.se, +46 (0)8-588 414 69, +46 (0)70-692 77 79

       
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.