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”The Länsförsäkringar Alliance’s non-life insurance operations reported an operating profit of SEK 2.3 billion in 2018. Based on 2018 earnings, the regional insurance companies will pay back at least SEK 0.8 billion in bonuses and discounts to their owners – the customers. The healthy growth continued in 2018 and premiums earned increased 5%. However, investment income decreased to SEK 1.8 billion. Stock markets fell sharply in the fourth quarter of 2018 compared with exceptionally strong investment income in 2017. The combined ratio was 96%, with slightly higher claims costs in 2018, mainly due to weather-related claims. Accordingly, the claims ratio increased by 2 percentage points to 76%.
The Länsförsäkringar AB Group reported solid operating profit of SEK 2.4 billion in 2018. The non-life insurance operations contributed an operating profit of SEK 0.5 billion. Agria’s healthy growth continued and the company now has operations in six countries. Operating profit for the unit-linked insurance operations increased to SEK 0.7 billion, with managed assets of SEK 126 billion. The banking operations continued a journey of healthy growth in 2018; lending increased 11% with continued high credit quality. Operating profit amounted to SEK 1.5 billion. Earnings were impacted by non-recurring items related to the final stage of the replacement of the bank’s IT platform. The new platform will provide new opportunities to further develop the bank’s leading digital solutions demanded by customers.
It is very gratifying that Länsförsäkringar received additional signs of the strength of its brand and business model in 2018 – Länsförsäkringar topped many of the Swedish Quality Index’s customer satisfaction surveys in 2018. Länsförsäkringar’s business model also creates a solid basis for long-term social responsibility. We can help reduce sustainability risks and also contribute to the positive development of society and create business value by incorporating sustainability into all parts of our business. In 2018, Länsförsäkringar was named Sweden’s most sustainable insurance company by Sustainable Brand Index and came first in the Swedish Sustainability Ranking in the Banking and Finance category.
I became the President and CEO of Länsförsäkringar AB in September 2018 after serving as President of Länsförsäkringar Stockholm for six years. It is an immense and exciting task to have the opportunity, from a slightly new angle, to continue to be involved in developing Länsförsäkringar’s position in banking, non-life insurance and pensions together with the entire Länsförsäkringar Alliance.”, says Fredrik Bergström, President and CEO of Länsförsäkringar AB, The Länsförsäkringar Alliance’s jointly owned company.
2018 in brief
- Operating profit for the Länsförsäkringar Alliance’s non-life insurance operations amounted to SEK 2,275 M (7,078), with investment income of SEK 1,773 M (6,969). Bonuses and discounts amounted to SEK 794 M (1,798).
- The technical result for the Länsförsäkringar Alliance’s non-life insurance operations amounted to SEK 1,781 M (2,529). Premiums earned after ceded reinsurance rose 5% to SEK 26,752 M (25,504). The combined ratio was 96% (92).
- Operating profit for the Länsförsäkringar AB Group amounted to SEK 2,351 M (2,825). The return on equity was 9% (11).
- Operating profit for the Länsförsäkringar Sak Group amounted to SEK 460 M (1,028). The combined ratio amounted to 94% (88).
- Operating profit for the Länsförsäkringar Bank Group amounted to SEK 1,510 M (1,599). Net interest income strengthened to SEK 4,497 M (3,996).
- Operating profit for Länsförsäkringar Fondliv increased to SEK 673 M (600). Premium income amounted to SEK 9,010 M (9,133). Commission and fee income increased to SEK 1,671 M (1,578).
- Profit for Länsförsäkringar Liv amounted to SEK 609 M (3,121).
Figures in parentheses pertain to the same period in 2017.
For further information, please contact:
Fredrik Bergström, President and CEO Länsförsäkringar AB
firstname.lastname@example.org, +46 (0)8-588 414 25, +46 (0)73-964 14 25
Malin Rylander Leijon, CFO Länsförsäkringar AB
email@example.com, +46 (0)8-588 408 64, +46 (0)73-964 08 64
Anna Glennmar, Investor Relations Länsförsäkringar AB
firstname.lastname@example.org, +46 (0)8-588 417 42, +46 (0)72-141 44 08
Fanny Wallér, Director of Corporate Communications Länsförsäkringar AB
email@example.com, +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.