Länsförsäkringar Hypotek

About Länsförsäkringar Hypotek

One of Sweden’s largest mortgage institutions

Länsförsäkringar Hypotek is one of Sweden's largest mortgage institutions. The strategy is based on the Länsförsäkringar Alliance's large customer base, a strong brand and local presence through the customer-owned regional insurance companies.

Mortgages are primarily offered to the slightly more than 3.7 million customers of the Länsförsäkringar Alliance. Customer contact takes place during personal meetings at 128 of the regional insurance companies' branches throughout Sweden and via digital services and telephone.

The aim is, based on low risk, to continue to have growth in volumes and profitability, have the most satisfied customers and increase the share of customers who have both banking and insurance with Länsförsäkringar.

Contacts

Länsförsäkringar Hypotek AB (publ)
Street address: Tegeluddsvägen 11-13
Postal address: SE-106 50 Stockholm
Telephone: +46 8 588 400 00

Anders Borgcrantz
President and CFO Länsförsäkringar Bank AB
+46 8 588 412 51
+46 73 964 12 51
Anders.Borgcrantz@lansforsakringar.se

Martin Rydin
Vice Executive President Länsförsäkringar Hypotek AB,
+46 8 588 412 79
+46 73 964 12 79
Martin.Rydin@lansforsakringar.se


Financial Information

Interim Report January–March 2017

The period in brief

  • Operating profit declined 8% to SEK 172.2 M (187.3) and the return on equity amounted to 6.6% (8.1).
  • Net interest income increased 32% to SEK 490.6 M (371.9).
  • Loan losses amounted to SEK –0.7 M (–0.1), net, corresponding to a loanloss level of –0.00% (–0.00).
  • Lending increased 15% to SEK 174.2 billion (151.1).
  • The Common Equity Tier 1 capital ratio amounted to 50.2% (44.1*) on 31 March 2017.
  • The number of customers increased 8% to 236,000 (219,000).

*) Refers to 31 December 2016.
Figures in parentheses pertain to the same period in 2016.

Read the full Report

Financial calendar 2017
Date Report
August 10  Interim report, April -  June
November 10 Interim report, July - September

Five Year Financial Summary

Financial Reports Archive


Current Rating – Covered Bonds

Long Term Credit Rating

  • Standard & Poor's: AAA/Stable
  • Moody's: Aaa

Historical Ratings

2007 May Länsförsäkringar Hypotek's covered bonds graded Aaa from Moody's.

2007 June Länsförsäkringar Hypotek's covered bonds graded AAA long-term and A-1 + short-term from Standard & Poor's.

Funding

In nominal values and excluding repurchase agreements, as of March 31, 2017.

Funding programmes
  Limit Nom Outstanding Nom Remaining average term
Benchmark Unlimited SEK 98.0 billion 3.3 years
Medium Term Covered Note SEK 30 billion SEK 5.4 billion 4.2 years
Euro Medium Term Covered Note EUR 5 billion SEK 30.4 billion 4.9 years
Total   SEK 133.8 billion  


Risks and Capital Adequacy

Länsförsäkringar Hypotek applies the Internal Ratings Based (IRB) approach. The Foundation IRB Approach is applied to household risk exposure and for counterparty exposures to corporates and the agricultural sector up to SEK 5 M.

The Foundation IRB Approach is applied for counterparty exposures to corporates and the agricultural sector above SEK 5 M. The Standardised Approach is applied to other exposures.

As of March 31, 2017

  • Core Tier 1 and Tier 1 capital amounted to SEK 8,817 M
  • Core Tier 1 and Tier 1 ratio was 50.2 %
  • Capital base amounted to SEK 9,818 M
  • The total capital ratio 55.9%

Cover Pool

Collateral comprises only private homes, including single-family homes, tenant-owned apartments and, to a marginal extent vacation homes. Lending only takes place in Sweden and the geographic distribution in Sweden is well-allocated. All lending is in SEK and all foreign currency is swapped to SEK.

Länsförsäkringar Hypotek gives information in accordance with the ECBC "The Covered Bond Label", a common standard for increased transparency in the European covered bond market.

View the full Cover Pool

Read more about The Covered Bond Label


Corporate Governance

Board of Directors

  • Rikard Josefson born 1965, President of Länsförsäkringar Bank AB and Board Chairman since 2011. Other Board appointments: Board Chairman of Wasa Kredit AB. Board member of Länsförsäkringar Fondförvaltning, Länsförsäkringar Fastighetsförmedling and the Livslust Foundation.

 

  • Gert Andersson born 1959, Head of Product & Process. Board member since 2014.
  • Christian Bille born 1962, President of Länsförsäkringar Halland and board member since 2010. Other Board appointments: Board member of Länsförsäkringar Bank AB and Länsförsäkringar Halland.
  • Bengt Clemedtson born 1964, Head of Business at Länsförsäkringar Bank AB and Board member since 2009. Other Board appointments: Chairman of AB Superb Produkt.
  • Göran Zakrisson, born 1953. External, board member since 2017.

Management

  • Anders Borgcrantz born 1961, President
  • Martin Rydin born 1968, Executive vice President and CFO

Länsförsäkringar Hypotek Corporate Governance Reports


Remuneration

Remuneration System and Policy

In accordance with the provisions of the Swedish Financial Supervisory Authority, FFFS 2007:5, information pertaining to the Remuneration Policy of Länsförsäkringar Hypotek AB (Länsförsäkringar Hypotek) and its application must be published annually.

Länsförsäkringar Hypotek is part of the Länsförsäkringar AB Group (LFAB Group). A Group-wide remuneration policy has been prepared for the LFAB Group. The policy was revised and latest adopted by LFAB's Board of Directors on June18, 2013 and by the Board of Länsförsäkringar Hypotek on August 28, 2013.

The revised Remuneration Policy for Länsförsäkringar Hypotek is based on a risk analysis of the risks that may be connected to the Remuneration Policy. The risk analysis resulted in an assessment that very limited risks are connected to the Remuneration Policy and the Remuneration System.

The assessment is based primarily on the Remuneration Policy not having any long-term negative impact on the company's finances, that the balance between fixed and target-related portions is such that the target-related portion is deemed to have very limited impact on the company's capital base, that guaranteed target-related remuneration does not exist except for a new-employed where the target-related remuneration may consist of maximum 50 % of the fixed remuneration during the first year of employment.