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Presentation of results for first half of 2010 and Q2/2010

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SpareBank 1 Gruppen reports very good results yet again

  • In the first half of 2010, SpareBank 1 Gruppen reported a pre-tax profit of MNOK 295 (461). This represents an annualised return on equity so far this year of 11.6% (12.5%)
  • SpareBank 1 Livsforsikring returned a good risk result, and has sound buffer capital
  • SpareBank 1 Skadeforsikring reported a positive trend in costs. At the same time, however, unrest in the financial markets resulted in lower financial yields
  • ODIN Forvaltning enjoys a strong improvement in results

“SpareBank 1 Gruppen’s profit must be characterised as sound, based on good underlying results. In an uneasy financial market, we are especially satisfied with the life insurance company, which is now benefitting from having built up robust buffers. The life insurance company also returned a good risk result. The group’s result is otherwise affected by the ongoing reorganisation programme generating the desired effect”, says Kirsten Idebøen, Chief Executive of SpareBank 1 Grupppen AS.

Kirsten Idebøen points out that the SpareBank 1 Alliance has gradually acquired a number of legs to stand on, and that the differentiation and the breadth in the alliance model demonstrate its strengths, also in time of unrest. “We are experiencing a market that responds well to the strength that lies in our position as “the nation’s savings bank”.

SpareBank 1 Skadeforsikring (non-life): Sound growth and a result that is affected by the uneasy financial market
In the first half of 2010, SpareBank 1 Skadeforsikring had a pre-tax profit of MNOK 80, against MNOK 255 in the first half of 2009. Financial income in the first half of 2010 totalled MNOK 83 (244). The combined ratio f.o.a. in Q2 seen in isolation was 92.9% (93.9%), whist at the end of June 2010 it was 100.6% (97.2%). The company has recorded a portfolio growth of 4.3% (3.2%) in the same period. 

Over the last few months, SpareBank 1 Skadeforsikring has acquired the entire health insurance operations of Skandia Lifeline Norge, and Unison Forsikring ASA. The acquisition of Unison is part of the strategic effort to develop new distribution channels that will contribute to further growth.

Sparebank 1 Livsforsikring  (life insurance): Good risk result and sound buffer capital
In the first half of 2010, SpareBank 1 Livsforsikring achieved a pre-tax profit of MNOK 192 (230). In Q2, the company returned a strong and competitive value-adjusted return of 2.1%. The risk result is MNOK 188 (190) so far this year.  The total buffer capital at the end of the first half of 2010 represented 15.4% (11.7%) of total technical provisions.
At 30 June 2010, total assets aggregated NOK 25.1 billion, up MNOK 778 from the turn of the year.

ODIN Forvaltning: Strong improvement in result
ODIN Forvaltning recorded a pre-tax profit of MNOK 31 in the first half of 2001, compared with MNOK 2 in the first half of 2009. This improvement is due to the higher average assets under management far in 2010 compared with the same period last year.  Total assets rose by NOK 4.6 billion compared with the first half of 2009, reaching NOK 26.9 billion at 30 June 2010. ODIN Norge has experienced a very good return in the first half of 2010 and was the best Norwegian trust fund in the period.

SpareBank 1 Gruppen Finans Holding: Strategic acquisition and consolidation
The SpareBank 1 Gruppen Finans Holding group represents a value chain in receivables management. In the first half of 2010, the company achieved a pre-tax profit of MNOK 7 (16). The decline was mainly due to a mandatory reduction in collection fees and losses relating to factoring.
In June 2010, the company entered into an agreement to acquire Conecto AS. The purpose of this take-over is to strengthen further our position in the collection field in Norway.  In Q3, SpareBank 1 Gruppen Finans Holding group will simplify its corporate structure through mergers, and will go from being five companies to two companies.

Argo Securities: Climbing up broker statistics and better results
In the first half of 2010, Argo Securities returned a pre-tax loss of MNOK 5 (-25). The company experienced a positive trading development in all areas in the first half of the year.  Both the owners and the company’s management have clear goals for a positive boost in profits in 2010. This focus has resulted in the company steadily climbing in broker statistics.

Oslo, 11 August 2010

Contact person:
Christian Brosstad, EVP, Information and Corporate Communications
SpareBank 1 Gruppen AS
Telephone:+47 970 80 686

This is SpareBank 1 Gruppen

SpareBank 1 Gruppen AS is an independent finance group owned by SpareBank 1 Nord-Norge (19.5%), SpareBank 1 SMN (19.5%), SpareBank 1 SR-Bank (19.5%), Sparebanken Hedmark (12%), Samarbeidende Sparebanker (19.5%) and the Norwegian Confederation of Trade Unions/affiliated unions (10%).

SpareBank 1 Gruppen manages the jointly owned product companies, coordinates the projects and manages the SpareBank 1 Alliance brand.

Sparebank 1 Gruppen AS is the parent company is a finance group that owns 100% of the shares in SpareBank 1 Livsforsikring, SpareBank 1 Skadeforsikring, ODIN Forvaltning, SpareBank 1 Gruppen Finans Holding and SpareBank 1 Medlemskort, as well as 76.5% of Argo Securities.

The SpareBank 1 Alliance also includes SpareBank 1 Oslo Akershus, Eiendomsmegler 1, BNbank and SpareBank 1 Boligkreditt.


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