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.
Länsförsäkringar Hypotek AB (publ)
Street address: Tegeluddsvägen 11-13
Postal address: SE-106 50 Stockholm
Telephone: +46 8 588 400 00
President Länsförsäkringar Hypotek AB
+46 8 588 412 79
+46 73 964 12 79
Investor Relations Länsförsäkringar Bank AB
+46 8 588 402 90
+46 72 147 22 93
Year-end Report 2017
The year in brief, Group
- Operating profit increased 23% to SEK 813.0 M (658.4) and the return on equity strengthened to 6.9% (6.7).
- Net interest income increased 28% to SEK 2,101 M (1,647).
- Loan losses amounted to SEK 0.0 M (–4.8*), net, corresponding to a loan loss level of 0.00% (–0,01).
- Lending increased 17% to SEK 197.7 billion (168.9). The Common Equity Tier 1 capital ratio amounted to 56.3% (54.5**) on 31 December 2017.
- The number of customers rose 10% to 255,000 (231,000).
- According to the 2017 Swedish Quality Index customer satisfaction survey, Länsförsäkringar is the single player on the market with the most satisfied retail mortgage customers.
Figures in parentheses pertain to the same period in 2016.
* Includes the dissolution of reserves of SEK 3.1 M.
** Refers to 30 June 2017.
Current Rating – Covered Bonds
Long Term Credit Rating
- Standard & Poor's: AAA/Stable
- Moody's: Aaa
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.
In nominal values and excluding repurchase agreements, as of December 31, 2017.
|Limit Nom||Outstanding Nom||Remaining average term|
|Benchmark||Unlimited||SEK 110.9 billion||3.5 years|
|Medium Term Covered Note||SEK 30 billion||SEK 6.5 billion||4.8 years|
|Euro Medium Term Covered Note||EUR 5 billion||SEK 29.2 billion||4.3 years|
|Total||SEK 146.6 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 December 31, 2017
- Core Tier 1 and Tier 1 capital amounted to SEK 10,456 M
- Core Tier 1 and Tier 1 ratio was 56.3%
- Capital base amounted to SEK 11,117 M
- The total capital ratio 59.8%
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.
Board of Directors
- Anders Borgcrantz Chairman, born 1961. Board member since 2017.
- 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.
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.