S&P ups Storebrand Livsforsikring

S&P said it raised Storebrand Livsforsikring AS’ issuer and tier 2 subordinated issue ratings to BBB+ from BBB and its additional tier 1 issue rating to BBB from BBB-.

“The upgrade reflects the improvement in Storebrand's financial profile and resilience, and execution on its strategic vision to profitably grow and diversify its operations. As the group continues its pivot to capital-light business for future growth and earnings, the guaranteed pension business has been steadily declining and now makes up about half of total reserves, comparing favorably with some continental European peers,” the agency said.

“Nonguaranteed operations now contribute to more than 60% of profits and more than 70% of assets under management (AUM), and the shift in business mix has helped reduce the solvency position's sensitivity to interest-rate movements,” S&P said.

The outlook is stable.

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