Länsförsäkringar Alliance: Interim review January-June 2022
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January-June 2022 in brief Figures in parentheses pertain to the same period in 2021.
- Operating profit for the Länsförsäkringar Alliance’s non-life insurance operations amounted to SEK -5,848 M (9,650), due to negative investment income of SEK -8,343 M (8,797).
- The technical result for the Länsförsäkringar Alliance’s non-life insurance operations increased to SEK 3,140 M (1,377). Premiums earned after ceded reinsurance rose 6% to SEK 16,086 M (15,241). The combined ratio improved to 84.1% (94.6).
- The Länsförsäkringar AB Group’s operating profit amounted to SEK 1,298 M (1,973). The return on equity was 8% (10).
- Länsförsäkringar AB Group’s non-life insurance operations posted an operating profit of SEK 457 M (485). Premiums earned after ceded reinsurance rose 13% to SEK 4,129 M (3,667). The combined ratio improved to 85.5% (91.1).
- The Länsförsäkringar Bank Group’s operating profit declined to SEK 953 M (1,228). Net interest income fell 3% to SEK 2,362 M (2,428). The return on equity amounted to 7.6% (10.7).
- Länsförsäkringar Fondliv’s operating profit amounted to SEK 273 M (338). Premium income amounted to SEK 10,535 M (11,231). Commission and fee income increased to SEK 1,084 M (1,052).
- Länsförsäkringar Liv’s profit amounted to SEK -2,237 M (5,148).
- The first half of 2022 was dominated by Russia’s invasion of Ukraine leading to increased geopolitical unrest, an energy crisis, rising inflation and interest rates, weaker stock markets and lower growth prospects. Geopolitical and macroeconomic unrest affect Länsförsäkringar’s operations and our customers. For example, weak stock markets and rising interest rates resulted in negative investment income for the non-life insurance operations and negative investment return for our life assurance and pension insurance customers. Meanwhile, Länsförsäkringar reported strong growth and healthy earnings in its business operations, says Malin Rylander Leijon, President and CEO of Länsförsäkringar AB, The Länsförsäkringar Alliance’s jointly owned company.
- It is even more important for us, in uncertain times, to be available to our customers and shoulder our social responsibility. Our customer promise is to simplify everyday life and contribute to a secure future and Länsförsäkringar fulfills an important function with our local and customer-oriented profile and care for our customers. We are delighted and proud that consumers appreciate our extensive social responsibility and sustainable business and rank Länsförsäkringar at the top of the insurance industry in the Sustainable Brand Index 2022 – for the fifth time since 2011, continues Malin Rylander Leijon.
- Länsförsäkringar’s digitisation activities are progressing at a fast pace with the aim of offering our customers the market’s best digital experiences, efficient customer meetings and sustainable, value-creating offers and services. For example, we have made significant progress in digitising our health care insurance for which all services are available on Länsförsäkringar’s website. The path to the right help at the right time has never been shorter and – most important of all – we enjoy very high customer satisfaction. In the banking operations, we digitised our lending processes and successfully launched our new systems for securities trading. In addition, we have a new forecast tool, Ekonomikollen, that is available on Länsförsäkringar’s website for customers to use to calculate and see how a variety of different factors and choices would affect their private finances, continues Malin Rylander Leijon.
- The challenging development in the financial markets resulted in the Länsförsäkringar Alliance’s non-life insurance operations reporting an operating loss of SEK -5.8 billion, with investment income of SEK -8.3 billion. The technical result of SEK 3.1 billion was better, with strong premium growth of 6% and a combined ratio of 84%. The Länsförsäkringar AB Group’s operating profit amounted to SEK 1.3 billion, despite negative investment income of SEK -1 billion. The non-life insurance operations contributed with an operating profit of SEK 0.5 billion with strong premium growth of 13%, primarily from Agria, and a combined ratio of 86%. The banking operations reported a stable operating profit of SEK 1.0 billion and healthy growth – deposits increased 10% and lending were up 9%. The unit-linked insurance operations contributed with an operating profit of SEK 0.3 billion with continuing strong growth where premiums paid increased 11%. This shows that our customers appreciate our attractive fund range with many sustainability-focused options, says Malin Rylander Leijon.
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For further information, please contact:
Malin Rylander Leijon, President and CEO 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
Lena Hedlund, Head of Communications Länsförsäkringar AB
lena.hedlund@lansforsakringar.se, +46 (0)8-588 403 55, +46 (0)76-496 45 57
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.