SWEDEN – Swedish insurance alliance Länsförsäkringar made a life assurance return of 14.9% in 2005, allowing it to raise its bonus to 9%.
“The Länsförsäkringar Alliance is reporting the best combined result in its history,” said managing director Tommy Persson.
“The total return for the life assurance company was 14.9%, as a result of which the bonus is being raised to 9%. During the past 20 years, the bonus rate to our pension customers has averaged 9.6%.”
The alliance, which comprises 24 regional insurers, returned 6.4% on its traditional life operations in 2004.
Länsförsäkringar Liv’s total assets have risen to SEK140bn. It said that high returns in recent years and lower costs “provides scope for a large proportion of equities in the investment portfolio”.
Swedish equities returned 38.1% in 2005 while foreign stocks returned 27.0%. Fixed income was 5% from 6.4%.
Persson added: “The results in 2005 are a fantastic foundation from which to pursue our growth and expansion objectives.”
The bonus rate was raised from 4% to 6% on October 1 and will be raised to 9% on March 1.
Earnings from life assurance operations totaled SEK4.5bn, from SEK2.3bn before.