ABN Amro to run Swedish group's assets
Stockholm-based insurance group Länsförsäkringar has entered in to an agreement with Dutch investment manager ABN Amro to manage its SKr115bn (E12.7bn) assets.
ABN Amro is paying SKr1.3bn to take over the day-to-day running of the asset management services of the group’s life insurance and mutual fund companies. Overall responsibility for investment strategy will remain with the Länsförsäkringar AB board.
Länsförsäkringar will close its in-house asset management operation, Länsförsäkringar Kapitalforvaltning.
Tommy Persson, chief executive of Länsförsäkringar, said: “Today it is a necessity to have the ability and resources to evaluate all available investment alternatives in the international financial markets. With our relatively small size, we have limited possibilities to retain such investment activities at acceptable cost levels.
“Through our cooperation with ABN Amro we are creating better conditions for future high and stable investment returns for our customers.”
Poor market conditions and weak returns from Swedish equities hit Länsförsäkringar’s asset management buisness last year. Assets under management fall from SKr130 bn to SKr118bn in the year ended 31 December 2001 and operating profit fell from SKr75bn to SKr31bn.