Annual Review 2013 Länsförsäkringar Alliance Länsförsäkringar in Brief Customer-Owned Regional Insurance Companies with Local Presence

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Annual Review 2013 Länsförsäkringar Alliance Länsförsäkringar in Brief Customer-Owned Regional Insurance Companies with Local Presence Annual Review 2013 LÄNSFÖRSÄKRINGAR AllIANCE Länsförsäkringar in brief Customer-owned regional insurance companies with local presence Non-life insurance Bank Leader in Swedish non-life The fifth largest retail bank insurance close to customers Länsförsäkringar has insured Swedes for more than 200 years, Länsförsäkringar is Sweden’s fifth largest retail bank. The banking and today, about 2.8 million people are insurance customers of the operations are conducted only in Sweden and business volumes local regional insurance companies. Confidence is equally high have grown on a broad front in all areas. The strategy is to offer among companies in Sweden – the market share is slightly more banking services to the Länsförsäkringar Alliance’s customers and than 35%. More than 70% of agricultural customers have selected leverage Länsförsäkringar’s strong brand and local presence Länsförsäkringar. Local claims adjustment, with quick and compe- through the customer-owned regional insurance companies. The tent management close to customers is a hallmark of Läns- primary target group is retail and agricultural customers and small försäkringar. businesses. Closeness in all customer Complete security meetings Customers are provided with a com- Länsförsäkringar works in all OFFERING plete offering of banking, insurance channels and in all customer and real-estate brokerage services Bank Insurance Real-estate meetings with a brand promise brokerage from their respective regional insur- based on closeness. The percep- ance company. A comprehensive tion of greater closeness and less approach to customer meetings distance in a relationship with characterises the entire operation. Länsförsäkringar is the guiding Regardless of whether they occur in principle for everything – from person, on the telephone or via digi- 23 LOCAL COMPANIES product development to a per- tal channels, customer meetings are sonal customer meeting. The to be based on the customer’s needs principle of closeness is based and the breadth of Länsförsäkrin- on a number of types of close- gar’s offering. This holistic approach ness, for example, geographic is taken into consideration in the proximity, closeness of attitude 3.5 million CUSTomers development and offering of non-life and closeness in terms of insurance, life assurance, pension decision-making. insurance, banking services and real-estate brokerage. Customer-owned regional insurance companies with local presence Life assurance and pension insurance Real-estate brokerage Best pension partner Comprehensive real-estate for customers brokerage In life assurance and pension insurance, Länsförsäkringar focuses In addition to assistance from experienced and knowledgeable on long-term savings and insurance coverage and offers occupa- brokers, Länsförsäkringar Fastighetsförmedling’s comprehensive tional pensions in both fund management and guarantee manage- real-estate brokerage also provides home-buyers and home-sellers ment. Together with the regional insurance companies and exter- with access to a broad range of banking and insurance services, nal brokers, Länsförsäkringar strives to work to ensure that its cus- financial advisory services, legal advice and extensive claims pre- tomers receive a higher pension for their money and have a better vention expertise. Länsförsäkringar Fastighetsförmedling always understanding of their pension. has a local base, as part of the regional insurance companies’ offering. Contents Customers are our only Strong brand and satisfied principal customers Long-term respect for customers’ Länsförsäkringar’s local method of work- security is fundamental to Läns- ing close to its customers and owners is 2 2013 in brief försäkringar, since customers are highly appreciated, as can be seen in 4 Comments both the principal and owner. The regular customer satisfaction and repu- 6 This is Länsförsäkringar approach is always characterised by tation surveys. The brand is very strong 8 Owner control the view that Länsförsäkringar is compared with competitors in the bank- 10 Sustainability at Länsförsäkringar handling its customers’ money, not ing and insurance industry. Nordic 16 Non-life insurance its own, regardless of whether the Brand Academy’s 2013 Reputability 24 Bank company is dealing with insurance, Barometer showed that Länsförsäkringar 30 Life assurance and pension insurance pension savings or banking services. has the highest reputation among com- 36 Real-estate brokerage panies in the industry. Länsförsäkringar has long held a top ranking in the cus- 37 Länsförsäkringar Alliance in figures tomer satisfaction survey performed by 48 Länsförsäkringar AB the Swedish Quality Index, which mea- 51 Terms and expressions sures how satisfied customers are with 52 Financial calendar 2014 their bank and insurance company. 53 Addresses LÄNSFÖRSÄKRINGAR ALLIANCE 2013 1 2013 in brief Almost half a billion back to customers Profit for non-life insurance was stable, despite large storm-related claims towards the end of the year. Very strong investment income contributed to operating profit amounting to almost SEK 4 billion. Based on profit for 2013, the regional insurance companies will pay back a total of SEK 488 M in bonuses and discounts. Exceeded SEK 20 High volume growth in Bank gaining billion in premiums unit-linked insurance ground Growth in Länsförsäkringar’s unit-linked life For the first time, the Länsförsäkringar Alli- assurance company was high and insurance Business volumes in the banking operations ance surpassed SEK 20 billion in premiums capital increased 24% to SEK 77.5 billion. increased 11% to SEK 314 billion (283). The earned in non-life insurance. Volumes Higher volumes led to improved profitability. number of customers rose 4% till 879,000. Läns- increased almost 4%. försäkringar is Sweden’s fifth largest retail bank. Positive reception for new Capital strength traditional management The Länsförsäkringar Alliance continues to have At the end of May, the first offers were sent to customers inviting them to change the conditions favourable capital strength in relation to the risks of their insurance product to New Trad. Lower guarantee levels and lower fees allow for a in the operations. Solvency capital strengthened changed investment mix with a higher expected return. The offer was positively received and by SEK 4,721 M in 2013 to SEK 40,458 M and slightly more than 13,000 positive responses had been received by year-end 2013. The offer the solvency margin amounted to 206% (182). will continue to be sent out in 2014 and 2015. Market shares of non-life insurance, Market shares of premium income in fund Market shares of bank, deposits in retail share of premiums paid management, occupational pensions excl. market collective agreements Länsförsäkringar 21.9% Länsförsäkringar 29.9% Länsförsäkringar 4.5% SEB 19.1% If 18.2% Swedbank 21.0% SPP 16.3% Trygg Hansa 16.0% Handelsbanken 17.8% Skandia 14.5% Folksam 15.9% Nordea 15.8% Movestic 5.8% Moderna 3.3% SEB 11.9% Swedbank 4.7% Captivebolag 2.7% Danske Bank 2.6% Nordea 3.4% Dina Federation 2.6% Skandiabanken 2.4% Folksam 1.7% Zürich 1.6% AMF Pension 0.7% Other 24.0% Other 9.9% Other 1.7% Länsförsäkringar maintained its leading position in Länsförsäkringar’s share of the non-collectively The market position in deposits from households the non-life insurance market, with a market share agreed occupational pensions market in fund strengthened during the year from 4.3% to 4.5%. of 29.9%. management was 21.9%. 2 LÄNSFÖRSÄKRINGAR ALLIANCE 2013 Five-year summary Result for the regional insurance companies Länsförsäkringar Alliance Technical result1) Operating profit1) 2013 2012 2011 2010 2009 SEK M 2013 2012 2013 2012 Total capital, SEK M 41,518 36,681 33,215 35,038 32,077 Länsförsäkringar Norrbotten 66 21 125 92 Länsförsäkringar Västerbotten 49 65 268 217 Länsförsäkringar Alliance’s non-life insurance Länsförsäkringar Jämtland 27 14 103 73 Länsförsäkringar Västernorrland 24 25 40 44 Solvency capital, SEK M 40,458 35,737 32,709 34,724 31,747 Länsförsäkringar Gävleborg 0 38 16 66 Solvency margin, % 206 182 171 190 174 Dalarnas Försäkringsbolag 147 100 446 337 Return on equity, % 10 8 –5 8 18 Länsförsäkringar Värmland 50 46 112 92 Premiums earned after ceded reinsurance, SEK M 20,067 19,363 18,756 18,184 17,828 Länsförsäkringar Uppsala 37 63 121 132 Technical result, SEK M 1,247 1,439 856 529 1,688 Länsförsäkringar Bergslagen –44 77 219 260 Operating profit/loss, SEK M 3,863 3,013 –2,273 2,552 5,449 Länsförsäkringar Stockholm –41 39 30 100 Combined ratio 98 97 100 102 96 Länsförsäkringar Södermanland –9 16 152 129 Länsförsäkringar Göteborg och Bohuslän 122 42 446 290 Länsförsäkringar AB, Group1) Länsförsäkringar Skaraborg 28 50 68 86 2013 2012 2011 2010 2009 Länsförsäkringar Östgöta 6 132 352 335 Operating profit, SEK M 923 819 287 536 693 Länsförsäkringar Älvsborg 82 103 479 250 Solvency capital, SEK M 18,031 15,590 14,800 10,613 8,710 Länsförsäkringar Gotland 20 16 80 55 Total assets, SEK M 322,550 290,994 253,223 173,835 157,005 Länsförsäkringar Jönköping 28 88 250 253 Return on equity, % 5 5 2 62) 7 Länsförsäkringar Halland 16 51 128 107 1) Excluding the life-assurance operations, which are conducted with a prohibition against issuing dividends. 2) Excludes new share issue. Länsförsäkring Kronoberg 31 42 124 100 Länsförsäkringar Kalmar län 113 66 270 170 Länsförsäkringar Sak, Group Länsförsäkringar Blekinge 17 28 62 57 2013 2012 2011 2010 2009 Länsförsäkringar Göinge-Kristianstad 40 33 175 126 Premiums earned after ceded Länsförsäkringar
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