Länsförsäkringar Alliance: Interim review January-June 2021
January-June 2021 in brief
Figures in parentheses pertain to the same period in 2020.
- Operating profit for the Länsförsäkringar Alliance’s non-life insurance operations increased to SEK 9,650 M (-350), with investment income of SEK 8,797 M (-825).
- The technical result for the Länsförsäkringar Alliance’s non-life insurance operations increased to SEK 1,377 M (1,107). Premiums earned after ceded reinsurance rose 6% to SEK 15,241 M (14,428). The combined ratio amounted to 94.6% (94.9).
- Operating profit for the Länsförsäkringar AB Group increased to SEK 1,973 M (1,130). The return on equity amounted to 10% (7).
- Länsförsäkringar AB Group’s non-life insurance operations posted an operating profit of SEK 485 M (133). Premiums earned after ceded reinsurance rose 12% to SEK 3,667 M (3,288). The combined ratio declined to 91.1% (94.5).
- The Länsförsäkringar Bank Group’s operating profit increased to SEK 1,228 M (876). Net interest income fell 2% to SEK 2,366 M (2,423).
- Länsförsäkringar Fondliv’s operating profit amounted to SEK 338 M (333). Premium income rose 103% to SEK 11,231 M (5,529). Commission and fee income increased to SEK 1,052 M (884).
- Länsförsäkringar Liv’s profit increased to SEK 5,148 M (-2,069).
- We have every reason to be proud of our performance during the first half of 2021. Länsförsäkringar’s business developed strongly, growth was solid and the rate of development was high thanks to our new Lean Agile way of working. An efficiency programme in Länsförsäkringar AB led to improved cost efficiency and in May we streamlined the legal structure by the merger of Länsförsäkringar Sak and Länsförsäkringar AB. We achieved all of this even though we are still in the midst of a pandemic, with many employees working remotely and unable to meet during the workday.
To stop the spread of COVID-19, Länsförsäkringar is participating in the Skill Shift Initiative, whereby employees who are also qualified health care assistants or nurses can choose to support health care during the pandemic. Länsförsäkringar has also donated vaccines to the world’s poorest economies through Vaccine Forward and supported efforts by the Red Cross, both by making financial donations and through volunteer work.
The effects of the COVID-19 pandemic on Länsförsäkringar’s earnings remained relatively limited in the first half of 2021. Operating profit for Länsförsäkringar Alliance’s non-life insurance operations amounted to SEK 9.7 billion, benefiting from both strong investment income and a strong technical result. Continued solid premium growth of 6% and stable claims costs resulted in a combined ratio of 94.6%.
The Länsförsäkringar AB Group reported an operating profit of SEK 2.0 billion. The non-life insurance operations brought an operating profit of SEK 0.5 billion with strong premium growth of 12% and a combined ratio of 91.1%. The Agria Vårdguide app, which offers customers cost-free digital veterinary care, enjoys a high level of customer satisfaction and was launched in the rest of the Nordic countries in May. The banking operations reported strong operating profit of SEK 1.2 billion with continued healthy growth in all segments and lower credit losses due to more positive macroeconomic scenarios. Länsförsäkringar Bank has signed the UN’s Principles for Responsible Banking and intensified its digital development activities to further streamline processes and enhance customer value. The unit-linked insurance operations contributed an operating profit of SEK 0.3 billion. Managed assets increased to SEK 199 billion primarily due to a strong stock-market trend and healthy growth in the underlying business, with premium income increasing 103%.
Since Länsförsäkringar is customer-owned, customers are also our primary driving factor in all development and efficiency improvements. We are now looking forward to continuing strong business development, focusing on increased customer value, says Fredrik Bergström, President and CEO of Länsförsäkringar AB, The Länsförsäkringar Alliance’s jointly owned company.
Länsförsäkringar Alliance Interim review January-June 2021
For further information, please contact:
Fredrik Bergström, President and CEO Länsförsäkringar AB
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Malin Rylander Leijon, CFO Länsförsäkringar AB
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Anna Glennmar, Investor Relations Länsförsäkringar AB
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Lena Hedlund, Head of Communications Länsförsäkringar AB
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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.