Länsförsäkringar Alliance: Annual Review in summary 2019

”A brief summary of 2019: Sweden’s most satisfied customers, strong earnings due to healthy growth and strong returns, but also a higher number of larger non-life insurance claims in the first half of the year.

The Länsförsäkringar Alliance reported strong earnings. Operating profit in the non-life insurance operations amounted to SEK 12.2 billion, benefiting from both healthy growth in premiums and strong investment income at SEK 13.1 billion. Premium growth was 4%, and a gratifying achievement was the very good performance of the brand insurance and vehicle-damage guarantees through the partnership with Toyota and Lexus. The combined ratio amounted to 96.5%. Claims costs rose primarily during the first half of the year, mainly as a result of the higher number of larger fire-damage claims and the claims for damage caused by storm Alfrida. Many customers had yet another reason to be pleased with choosing a customer-owned company – based on 2019 earnings the regional insurance companies will pay back at least SEK 1.8 billion in bonuses and discounts to their owners – the customers.

The Länsförsäkringar AB Group reported solid operating profit of SEK 3.0 billion for 2019. The non-life insurance operations contributed an operating profit of SEK 0.9 billion and the combined ratio amounted to 95.8%. Agria’s healthy growth continued in 2019, particularly in the international business lines. The high inflow of new customers to the banking operations also continued, which led to steadily growing market shares and operating profit of SEK 1.9 billion. Deposits rose 10% and lending rose 6% with continued high credit quality. Operating profit for the unit-linked insurance operations amounted to SEK 0.7 billion. Managed assets increased 26% to SEK 159 billion. Our customers with pension capital received strong returns in 2019 and many of Länsförsäkringar’s own funds performed very well, for example, Länsförsäkringar Fastighetsfond increased 65%. We are proud that Morningstar named us Best Fund House Overall in Sweden during the year.

A very strong sense of pride is built up within the Länsförsäkringar Alliance from the Swedish Quality Index’s customer satisfaction surveys showing year after year that Länsförsäkringar has Sweden’s most satisfied customers. But good can always be better so we are focusing on even more satisfied customers! We successfully implemented a new core banking system in 2019 and launched our Open Banking platform, which will help make services in the digital area even better, both now and in the future. We also created a “Bopulsen” app to help house owners to easily keep one step ahead and prevent damages.

We look ahead to 2020 from a position of strength – a year of continuous development to meet and ideally surpass customer expectations in all four of our business areas: non-life insurance, life assurance and pension insurance, banking and real-estate brokerage.”, says Fredrik Bergström, President and CEO of Länsförsäkringar AB, The Länsförsäkringar Alliance’s jointly owned company.

2019 in brief Figures in parentheses pertain to the full-year 2018.

  • Operating profit for the Länsförsäkringar Alliance’s non-life insurance operations rose to SEK 12,151 M (2,243), with investment income of SEK 13,140 M (1,771). Bonuses and discounts to customers increased to SEK 1,780 M (825).
  • The technical result for the Länsförsäkringar Alliance’s non-life insurance operations rose to SEK 1,898 M (1,778). Premiums earned after ceded reinsurance increased 4% to SEK 27,856 M (26,751). The combined ratio amounted to 96.5% (95.9).
  • Operating profit for the Länsförsäkringar AB Group increased to SEK 3,003 M (2,351). The return on equity amounted to 10% (9).
  • Operating profit for the Länsförsäkringar Sak Group rose to SEK 851 M (460). Premiums earned after ceded reinsurance increased 5% to SEK 6,211 M (5,891). The combined ratio amounted to 95.8% (93.5).
  • Operating profit for the Länsförsäkringar Bank Group increased to SEK 1,893 M (1,510). Net interest income rose to SEK 4,617 M (4,497).
  • Operating profit for Länsförsäkringar Fondliv rose to SEK 738 M (673). Premium income rose to SEK 9,478 M (9,010). Commission and fee income amounted to SEK 1,779 M (1,671).
  • Profit for Länsförsäkringar Liv increased to SEK 5,567 M (609).

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Financial reports Länsförsäkringar 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.

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