SWEDEN - Swedish insurer SPP lost SEK206m (€21.7m) in the second quarter, while SPP’s parent, Storebrand, lost NOK39m (€4.8m). Meanwhile, operating profit at SEB Trygg Liv came to SEK349m over the same period.
SPP has lost SEK206m in the second quarter against a profit of SEK265m for the same period in 2009.
The pension insurer attributed the negative performance to turbulent equity markets and falling interest rates.
Despite the operational losses, assets under management increased to SEK139bn compared with SEK126bn in the second quarter last year.
Income from premiums increased to SEK5.1bn during the first six months of the year against SEK4.9bn for the same period last year.
SPP’s traditional insurance products returned 1.6% for the quarter.
Storebrand - the Norwegian insurer and asset manager and SPP’s parent company - also posted a negative operating result for the second quarter, losing NOK39m.
However, the numbers for the first half of 2010 were positive, with an operating profit of NOK239m.
The company cited instability in the financial markets for the negative quarter, which produced a low level of financial income in its Life and Pensions arm.
Life and Pensions Norway has allocated NOK 3.1bn to insurance customers for the first half of 2010, NOK336m of which was profit in excess of the guaranteed return.
The returns in the customer portfolios were competitive, the company said, but negatively affected by market developments.
Inflows to Life and Pensions Norway amounted to NOK305m in the second quarter and NOK1.9bn for the year to date.
Total new premiums amounted to NOK1.2bn, NOK332m of which came in the second quarter.
The volume of net new sales in asset management (external discretionary assets and mutual funds) was NOK6.5bn in the second quarter - NOK5.1bn in the Norwegian business and NOK1.4bn in the Swedish business.
The solvency margin of the Storebrand Life Insurance Group (Life and Pensions Norway and Life and Pensions Sweden) at the close of second quarter was 163%.
SEB Trygg Liv’s operating profits amounted to SEK349m during the second quarter, compared with SEK403m during the same period last year.
Income from premiums changed little - SEK4.14bn against SEK4.18bn, while assets under management increased to SEK284.3bn from SEK255.2bn.
SEB’s Life business, apart from SEB Trygg Liv, also encompasses SEB Pension in Denmark and SEB Life & Pensions International, which in total posted an operating profit of SEK1.12bn for the second quarter, compared with SEK989m for the same period last year.
Total assets under management amounted to SEK405bn, up from SEK402bn at year-end 2009.
These stories were first published by Pensionsnyheterna, a Swedish-language specialist news service, and translated in agreement with IPE.com
No comments yet