Storebrand ASA: Change in methodology for consolidated solvency for Storebrand Life Insurance Group
(Thomson Reuters ONE) -
Storebrand has on the 24(th) of June received a letter from Finanstilsynet[1]
regarding the interpretation of the regulation of capital ratios on a
consolidated basis. The subject matter is how Storebrand Livsforsikring AS's
Swedish subsidiary SPP Livförsäkring AB, shall be treated in solvency and
capital adequacy calculations for Storebrand Life Insurance Group under the
Solvency I regulation. Reported profit and balance sheet figures are not
affected.
Storebrand's view has been built on a different interpretation of the regulation
than Finanstilsynet has communicated in the letter of 24(th) of June. Storebrand
Life Insurance Group will going forward report according to Finanstilsynets
method. Based on the new method the solvency ratio of Storebrand Life Insurance
Group would have been 146 per cent, compared to reported 163 per cent as of
31(st) of March 2012. Internal target of a solvency ratio of 150 per cent is
confirmed. This is materially above the regulator minimum requirement of a
Solvency ratio of 100 per cent.
Estimated comparable figures for 2009-2011is stated in the table below. The
estimates only reflect a change in method of consolidated solvency ratios.
+---------+-------------------------+-------------------------------------+
| | Reported solvency ratio | New method solvency ratio(estimate) |
+---------+-------------------------+-------------------------------------+
| 2009 | 170 % | 170 % |
+---------+-------------------------+-------------------------------------+
| 2010 | 164 % | 163 % |
+---------+-------------------------+-------------------------------------+
| 2011 | 161 % | 134 % |
+---------+-------------------------+-------------------------------------+
| 1Q 2012 | 163 % | 146 % |
+---------+-------------------------+-------------------------------------+
Storebrand reports solvency ratios both for Storebrand Livsforsikring AS and SPP
Livförsäkring AB. Solvency calculation at the company level is not affected by
the change in interpretation of the regulation. However, the reported volatility
in the solvency ratio in SPP will to a larger extent influence the consolidated
solvency ratio for Storebrand Life Insurance Group. The Swedish regulators
announced introduction of a floor to the interest rate, which is used in
solvency calculations, establish also a floor for how much Swedish interest
rates going forward can negatively influence Storebrand's consolidated solvency
ratio.
Storebrand reports, in addition to the solvency ratio, the Norwegian capital
ratio according to Basel I, which is expected to be phased out when Solvency II
is introduced. If Finanstilsynets method had been used on the 31(st) of March
2012, the capital ratio for Storebrand Life Insurance Group would have been
approximately one percentage point lower.
Storebrand Life Insurance Group will going forward report according to the
method of Finanstilsynet. Storebrand reports 1st half 2012 on the 13th of July.
Lysaker, 25(th) of June 2012
Contacts:
Communications Director Jan Otto Risebrobakken: Mobile +47 48 08 26 02
Head of Investor Relations Trond Finn Eriksen: Mobile +47 99 16 41 35
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
--------------------------------------------------------------------------------
[1] Norwegian FSA
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Storebrand ASA via Thomson Reuters ONE
[HUG#1621625]
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Datum: 25.06.2012 - 02:48 Uhr
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