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Länsförsäkringar AllianceAnnual review

Länsförsäkringar’s logo turned 50 in 2019.

About the Länsförsäkringar AllianceLänsförsäkringar Alliance comprises 23 local and customer-owned regional insurance companies and the jointly owned Länsförsäk-ringar AB and its subsidiaries. Customers are provided with a com-plete offering of banking, insurance, pension and real-estate broker-age services through the regional insurance companies. The starting point is local presence and decision-making. Experience shows that local decision-making authority combined with joint strength cre-ates substantial added value for customers. The regional insurance companies are owned by the insurance customers. There are no external shareholders and meeting customer needs and require-ments is always the primary task. The Länsförsäkringar Alliance has 3.9 million customers and 7,200 employees.

The Länsförsäkringar Alliance is not a Group in the legal sense of the term. Most of the non-life insurance business in the Länsförsäk-ringar Alliance is underwritten in the regional insurance companies. The business conducted by Länsförsäkringar AB’s non-life insurance group primarily comprises health, pet and crop insurance. The Läns-försäkringar AB Group also manages the Länsförsäkringar Alliance’s reinsurance cover and assumed international reinsurance. Earnings from the Länsförsäkringar Alliance’s non-life insurance operations consist of the total earnings of the 23 regional insurance companies and the non-life insurance operations of the Länsförsäkringar AB Group. Länsförsäkringar Liv is operated according to mutual princi-ples and is not consolidated in Länsförsäkringar AB.

23 local companies 3.9 million customers

Bank

Non-life insurance

Life assurance and pension insurance

Real-estate brokerage

Offering

Länsförsäkringar AB

Länsförsäkringar Sak Försäkrings ABSupplements the regional insur-ance companies’ non-life insur-ance offering with specialist products, serves as an engine for new business and is responsible for joint reinsurance.

Länsförsäkringar Bank ABOffers a broad range of banking services to the regional insurance companies’ customers through Länsförsäkringar Hypotek, Läns-försäkringar Fondförvaltning and Wasa Kredit.

Länsförsäkringar Fondliv Försäkrings ABOffers pension savings with fund management and guarantee man-agement and personal-risk insur-ance to the regional insurance companies’ customers.

Länsförsäkringar Liv Försäkrings ABManages traditional life assurance taken out before Sep-tember 2011 when the company was closed for new business.

3.9 million customers

23 local regional insurance companies

Rating

Company Agency Long-term rating Short-term rating

Länsförsäkringar AB S&P Global Ratings A–/Stable –

Länsförsäkringar AB Moody’s A3/Stable –

Länsförsäkringar Bank S&P Global Ratings A/Stable A–1 (K–1)

Länsförsäkringar Bank Moody’s A1/Stable P–1

Länsförsäkringar Hypotek1) S&P Global Ratings AAA/Stable –

Länsförsäkringar Hypotek1) Moody’s Aaa –

Länsförsäkringar Sak S&P Global Ratings A/Stable –

Länsförsäkringar Sak Moody’s A2/Stable –

1) Pertains to the company’s covered bonds.

We make and keep a joint promise in 23 regional

accents.

Länsförsäkringar Alliance 2019

About the Länsförsäkringar AllianceFive-year summary Result for the regional insurance companies

The 2019 fiscal year

Länsförsäkringar Alliance’s non-life insurance 2019 2018 2017 2016 2015

Solvency capital, SEK M 82,096 68,472 66,149 57,956 51,628

Solvency margin, % 288 252 253 236 222

Return on equity, % 14 3 11 8 8

Premiums earned after ceded reinsurance, SEK M 27,856 26,751 25,504 24,073 22,705

Technical result, SEK M 1,824 1,778 2,529 1,813 2,700

Operating profit, SEK M 12,001 2,243 7,078 4,626 4,365

Combined ratio, % 96 96 92 95 91

Länsförsäkringar AB, Group1)


Total assets, SEK M 572,594 506,835 473,773 421,816 384,595


Own funds for the group (FRL)2), SEK M 50,220 43,870 44,172 40,602 36,9054)

Capital requirement for the group (FRL)2), SEK M 37,776 33,874 33,441 30,121 28,2334)

Own funds for the financial conglomerate3), SEK M 50,220 43,870 44,172 40,352 –

Capital requirement for the financial conglomerate3), SEK M 37,776 33,874 33,441 30,121 –

Länsförsäkringar Sak, Group


Technical result, SEK M 283 402 977 435 821

Operating profit, SEK M 851 460 1,028 644 908

Solvency ratio, % (Länsförsäkringar Sak Försäkrings AB) 221 228 221 260 2354)

Länsförsäkringar Bank, Group

Deposits from the public, SEK M 119,303 108,142 99,404 91,207 83,925

Loans to the public, SEK M 307,099 289,426 261,444 226,705 201,964


Return on equity, % 9.5 8.3 10.0 10.1 8.9

Common Equity Tier 1 capital ratio, % 13.9 14.2 24.35) 24.85) 23.75)

Länsförsäkringar Fondliv AB

Premium income, SEK M 9,478 9,010 9,133 8,637 8,645

Net profit for the year, SEK M 749 681 604 516 519

Managed assets, SEK M 158,827 125,805 128,140 114,450 102,807

Solvency ratio, % 137 135 152 150 1414)

Länsförsäkringar Liv

Premium income, SEK M 1,539 1,684 1,533 1,720 1,919

Net profit for the year, SEK M 5,567 609 3,121 2,359 5,143

Solvency ratio, % 211 200 207 195 1824)

1) Excluding Länsförsäkringar Liv Försäkrings AB, which is operated in accordance with mutual principles.2) According to Swedish Insurance Business Act (FRL), the Solvency II directive in Swedish law.3) The financial conglomerate comprises Länsförsäkringar AB, all insurance companies in the Group,

Länsförsäkringar Bank AB with subsidiaries and Länsförsäkringar Liv Försäkrings AB.4) Opening balance on 1 January 2016 according to Solvency II.5) Risk weight floor for mortgages in Pillar II.

Technical result1)Operating

profit1)

SEK M 2019 2018 2019 2018

LF Norrbotten 35 54 170 64

Länsförsäkringar Västerbotten 122 103 691 86

Länsförsäkringar Jämtland 9 47 414 127

Länsförsäkringar Västernorrland -23 -55 121 24

Länsförsäkringar Gävleborg -22 -34 216 15

Dalarnas Försäkringsbolag -50 126 803 350

Länsförsäkringar Värmland 13 61 403 78

Länsförsäkringar Uppsala 60 22 557 169

Länsförsäkringar Bergslagen 168 63 1,221 319

Länsförsäkringar Stockholm 72 102 749 253

Länsförsäkringar Södermanland 77 1 700 235

Länsförsäkringar Göteborg och Bohuslän 147 146 1,707 438

Länsförsäkringar Skaraborg 58 111 511 177

Länsförsäkringar Östgöta 101 114 1,313 450

Länsförsäkringar Älvsborg 193 190 1,603 442

Länsförsäkringar Gotland 64 37 224 82

Länsförsäkringar Jönköping 26 -2 663 151

Länsförsäkringar Halland 62 85 483 135

Länsförsäkring Kronoberg 82 43 476 108

Länsförsäkringar Kalmar län 63 30 611 139

Länsförsäkringar Blekinge 31 15 285 75

Länsförsäkringar Göinge-Kristianstad 15 30 452 183

Länsförsäkringar Skåne 237 118 1,479 299

1) Before bonuses and discounts.

Results 2019 for Länsförsäkringar Alliance • Operating profit for the Länsförsäkringar Alliance’s non-life

insurance operations increased to SEK 12.0 billion (2.2), after bonuses and discounts to customers of SEK 1.9 billion (0.8).

• Investment income increased to SEK 13.2 billion (1.8). • Premiums earned after ceded reinsurance increased

4% to SEK 27.9 billion (26.8). • The technical result for the Länsförsäkringar Alliance’s non-

life insurance operations amounted to SEK 1.8 billion (1.8).

Bonuses and discounts to customers

SEK 1.9bn

Länsförsäkringar Alliance’s combined ratio

96%Länsförsäkringar Alliance 2019

Länsförsäkringar’s local and customer-owned business

model, combined with joint resources, creates substantial added value for customers. A very strong sense of pride is built up within the Länsför-säkringar Alliance from the Swedish Quality Index’s customer satisfaction surveys showing year after year that Länsförsäkringar has Sweden’s most satisfied customers. But good can always be better, so we are focusing on even more satisfied customers!Fredrik BergströmPresident and CEO of Länsförsäkringar ABThe Länsförsäkringar Alliance’s jointly owned company

Contents

1 The year in brief

2 Comment

4 About Länsförsäkringar

6 Offering

8 Our business environment

10 The brand

12 How we create value

14 Sustainability

24 Non-life insurance

32 Bank

40 Life assurance and pension insurance

44 Real-estate brokerage

45 Länsförsäkringar Alliance in figures

56 About Länsförsäkringar AB

57 Definitions

58 Addresses

59 Financial calendar 2020

The Länsförsäkringar Alliance’s annual review of 2019 contains information about Länsförsäkringar’s operations in non-life insurance, banking, life assurance and pen-sion insurance and real-estate brokerage. The sustainability section contains informa-tion about Länsförsäkringar’s work on sus-tainability in its customer offering and opera-tions and in terms of its environmental and social commitment. The combined earnings of the Länsförsäkringar Alliance’s non-life insurance operations are presented on pages 46–47. This will be followed by key figures from each of the 23 regional insurance companies.

Proud and pleased. But more to do.Länsförsäkringar has topped the Swedish Quality Index for many years, which measures satisfaction among customers in the areas of banking, insurance and real-estate brokerage services. Länsförsäkringar came first in seven categories in the 2019 survey: Retail banking, Corporate banking, Real-estate brokerage, Private insurance, Corporate insur-ance, Private pension and Car insurance.

*As named. **Joint first place.


The year in brief

Länsförsäkringar supports climate researchLänsförsäkringar’s Research Fund con-tinues to support climate research and will provide financing of SEK 21 M for two new climate projects between 2020 and 2023. Research that increases expertise about how we need to adapt society to climate change is an important field for Länsförsäkringar. The results will benefit customers and various players in society.

Lean Agile work methodIntroducing the Lean Agile work method will enhance the efficiency of L änsförsäkringar’s development activi-ties and make them more innovative, resulting in rapid product development and testing. This means more efficient deliveries of new services demanded by customers.

1 JANUARY

Partnership with ToyotaLänsförsäkringar assumed respon-sibility for brand insurance and vehicle -damage guarantees for Toyota and Lexus cars in the Swedish market, which proved to be a highly successful partnership in 2019.

Best Overall Fund House 2019

Global fund analyst Morningstar named Läns-försäkringar Best Overall Fund House Sweden 2019. Länsförsäkringar is the first ever Swedish company to have received this award. Morning-star’s Morningstar’s motivation was Länsförsäk-ringar’s broad fund range with average values exceeding category average values every year for the past ten years, and that asset managers are generally cautious in risk-taking.

4 JUNE

Best banking and insurance serviceLänsförsäkringar topped Service-Score 2019’s survey of how Swedish consumers perceive the service they receive in the categories of both banking and insurance. Proof that customers appreciate Läns-försäkringar’s customer focus.

11 APRIL

Industry leader in sustainabilityFor the fifth time, Länsförsäkringar was named Sweden’s most sustain-able insurance company by Sustain-able Brand Index – the largest con-sumer sustainability survey of both corporate and private customers in the Nordics.

25 NOVEMBER–1 DECEMBER

Sweden’s largest fire drillLänsförsäkringar arranged fire-safety activities throughout Sweden. Households were taught about how to conduct a fire drill and how simple fires in the home can be prevented and extinguished.

Länsförsäkringar’s logo turns 50Länsförsäkringar’s history dates back more than 200 years. The first company, Länsförsäkring Kronoberg, was founded in 1801. Other regional insurance companies were founded in the following decades. Länsförsäk-ringar’s square logo turned 50 in 2019 – a logo that is one of the most well-known symbols in Sweden.

1Länsförsäkringar Alliance 2019 The year in brief

Satisfied customers, healthy growth and strong returnsComment The Länsförsäkringar Alliance can sum up another successful year of strong earnings and healthy growth. Based on earnings for the year, the regional insurance companies will pay back SEK 1.9 billion in bonuses and discounts to their owners – the customers. We are also gratified that for another year we received exactly the confirmation that we wanted – that we have Sweden’s most satisfied customers.

Cooperation between the regional insurance companies takes place through Länsförsäkringar AB, which supports them realising the cus-tomer promise and delivering the offering expected by customers. More than two centuries of experience shows that Länsförsäkringar’s local and customer-owned business model combined with joint resources creates real added value for customers. It is this very bal-ance between the local small scale and the shared large scale that is the key to our success.

Länsförsäkringar’s business model also creates a solid basis for long-term social responsibility. Stability and a long-term approach have never been more relevant than they are now. We can help reduce sustainability risks and also contribute to the positive development of society and create business value by incorporating sustainability throughout the operation. For the fifth time, Länsförsäkringar was named Sweden’s most sustainable insurance company by Sustain-able Brand Index – the largest consumer sustainability survey in the Nordics.

Sustainability throughout the operationsSustainability must be inherent throughout the operations in order for Länsförsäkringar to simultaneously reduce its sustainability risks and contribute to the positive development of society. Länsförsäk-ringar AB worked together with the 23 regional insurance companies in 2019 to select the UN Sustainable Development Goals (SDGs) that we can support for sustainable development. A total of 13 targets within seven goals were identified as most relevant and can be clearly linked to our business. UN initiatives such as the Global Compact, Principles for Responsible Investment and Principles for Sustainable Insurance continue to provide guidance in our day-to-day sustain-ability activities.

Climate risk is the sustainability topic that presents the most important challenge for Länsförsäkringar - a view we share with many others according to the World Economic Forum’s 2020 Global Risks Report which ranked climate and environmental risks among the top five risks. Länsförsäkringar limits the risk related to climate impact through, for example, claims prevention and engagement. Länsförsäk-ringar’s Research Fund supports climate research and will provide financing of SEK 21 M for two new climate projects between 2020 and 2023. Länsförsäkringar also participates in a UN project on climate- risk scenarios. Länsförsäkringar AB has been pursuing a climate -smart vision since 2019, with the long-term aim of managing climate risks and adapting investments to the climate targets of the Paris Agreement.

It is a huge challenge to combat economic crime and money laundering, which are widespread problems in society with a major

bearing on the financial sector. Although Länsförsäkringar’s business model entails lower exposure to more high-risk segments and our lending is limited to Sweden, we must work continuously on further strengthening our ability to prevent and counteract economic crime and money laundering in all of our business operations.

A year of developmentWe successfully implemented a new core banking system in 2019 and launched our Open Banking platform, which will help make services in the digital area even better, both now and in the future. We also created a “Bopulsen” app to help house owners to easily keep one step ahead and prevent damages. We are actively working on innova-tion together with other insurance companies in Eurapco, an alliance of eight European mutual insurance companies. This way, we can develop new ideas while sharing costs. The majority of development activities are currently founded on IT and increasing our IT proficiency is a central issue.

Strong earnings for 2019The Länsförsäkringar Alliance reported strong earnings with total operating profit of SEK 14.5 billion. Operating profit in the non-life insurance operations amounted to SEK 12 billion, benefiting from both healthy growth in premiums and strong investment income. The stock markets performed well – the Stockholm Stock Exchange was up slightly more than 31% in 2019 and our investment income amounted to SEK 13 billion. Premium growth was 4%, and a gratifying achievement was the very good performance of the brand insurance and vehicle-damage guarantees through the partnership with Toyota and Lexus. Agria’s healthy growth continued in 2019, particularly in the international business lines. Many customers had yet another reason to be pleased with choosing a customer-owned company – based on 2019 earnings the regional insurance companies will pay back a total of SEK 1.9 billion in bonuses and discounts to their own-ers – the customers. Claims costs rose during the first half of the year, mainly as a result of the higher number of larger fire-damage claims and the claims for damage caused by storm Alfrida. This resulted in a combined ratio of 96.3%.

The high inflow of new customers to the banking operations also continued, which led to steadily growing market shares and operat-ing profit of SEK 1.9 billion. Deposits rose 10% and lending rose 6% with continued high credit quality.

Operating profit for the unit-linked insurance operations amounted to SEK 0.7 billion. Managed assets increased 26% to SEK 159 billion due to a favourable stock-market trend and positive net

Länsförsäkringar Alliance

2 Länsförsäkringar Alliance 2019Comment

inflows of premiums and capital from existing and new customers. From the start of 2020, Länsförsäkringar will again become an eligible manager for the KAP-KL and AKAP-KL occupational pensions with unit-linked insurance, meaning that more than one million municipal and county council employees can choose Länsförsäkringar for their occupational pension.

Our customers with pension capital received strong returns in 2019. The return on all life-assurance and pension-insurance products was high and many of our own funds performed very well – for example, Länsförsäkringar Fastighetsfond increased 65%. We are proud that Morningstar named us Best Overall Fund House in Sweden during the year.

Good can always be betterA very strong sense of pride is built up within the Länsförsäkringar Alliance from the Swedish Quality Index’s customer satisfaction

surveys showing year after year that Länsförsäkringar has Sweden’s most satisfied customers. But good can always be better, so we are focusing on even more satisfied customers! We look ahead from a position of strength – a year of continuous development to meet and, ideally, surpass customer expectations in all four of our business areas: non-life insurance, life assurance and pension insurance, banking and real-estate brokerage.

Stockholm, March 2020On behalf of the 23 regional insurance companies

Fredrik BergströmPresident and CEO of Länsförsäkringar AB

The majority of development activities

to meet or ideally exceed customer expectations are currently founded on IT and increasing our IT proficiency is a central issue.

3Länsförsäkringar Alliance 2019 Comment

Länsförsäkringar’s position in the Swedish insurance and banking market is the result of the development of a company group that for more than two centuries has not had any other principal than its own customers. Closeness, simplicity and local customer ownership have built up the success of the non-life insurance operations over two centuries and have subsequently been transferred to the financial and real-estate brokerage services.

A complete range of banking and insurance services is offered through 23 independent and customer-owned regional insurance

companies. The leading position in the non-life insurance market continued during the year. Länsförsäkringar holds more than 30% of the non-life insurance market in Sweden. The life-assurance operations have a distinct focus on being the best pension partner for corporate customers and private individuals. Banking opera-tions are growing considerably, particularly among existing insur-ance customers. Real-estate brokerage has gone from zero to now the third largest brokerage in Sweden in only a few years – a good example of the strength of the brand.

Success lies in the balance between local and sharedAbout Länsförsäkringar The 23 customer-owned regional insurance companies cooperate and combine the ability of a small company to understand customers with the advantages of economies of scale generated by an alliance. Everything is based on the experience that local decision-making authority combined with joint resources create added value for customers.

million customers/owners regional insurance companies

BankInsurance

PensionReal-estate brokerage

ADVICE AND SALES

CLAIMS ADJUSTMENT AND CLAIMS PREVENTI

ON

Länsförsäkringar AB is a limited liability company and also the Parent Com-pany of a financial Group, which is individually owned in various holdings by the 23 regional insurance companies and 15 local insurance companies, which in turn are owned by a total of 3.9 million insurance customers. The Boards of Directors of the regional insurance companies are formally responsible for owner control. Based on the federal organisation and the purpose of the own-ership of Länsförsäkringar AB, these companies have together created joint forms for owner control that comply both with the requirements usually imposed on owner control and with the federal conditions.

Owner control at Länsförsäkringar AB has clear advantages compared with the owner control of many larger financial groups. This is because all of

the regional insurance companies have the same clear purpose for their owner ship, are proactive and collectively hold sufficient financial capacity to safeguard long-term ownership.

Owner control logicThe logic behind owner control centres mainly on the relationship between the Länsförsäkringar AB Board of Directors, Länsförsäkringar AB’s General Meeting and the regional insurance companies’ owner consortium. Formal owner control takes place through the General Meeting, although the regional insurance companies’ owner consortium and their representation on Läns-försäkringar AB’s Board are also important components. The duties of the

Owner Control

233.9

4 Länsförsäkringar Alliance 2019About Länsförsäkringar

Strong brand and satisfied customersThe strengthening of the Länsförsäkringar brand is the result of con-sistent and long-term work on brand and values. The brand remains extremely strong compared with its competitors in the banking, insur ance and pension industry. Kantar Sifo’s 2019 reputation survey showed that Länsförsäkringar has the highest reputation in the bank-ing and insurance and the ninth highest reputation among all Swedish companies, with IKEA and Volvo topping the list. Länsförsäkringar has topped the Swedish Quality Index for many years, which measures how satisfied customers are with their bank, insurance company and their real-estate broker. The most recent survey showed that Länsförsäk-ringar has the highest customer satisfaction in banking, non-life insur-ance, pensions and real-estate brokerage services in the country.

Local customer-owned companiesEach individual regional insurance company is owned by its non-life insurance customers, which means that the company’s capital belongs to its customers. With the customers as owner and the only principal, there are no external shareholder interests to be served and instead all surpluses can be returned to customers in the form of bonuses and discounts.

Balance between local and sharedCooperation between the regional insurance companies takes place through Länsförsäkringar AB and its subsidiaries, whose task is to create the necessary prerequisites for the regional insurance com-panies to be successful in their respective markets by conducting business, service and development operations, and to assume responsibility for the Länsförsäkringar Alliance’s joint strategies. Together, the Länsförsäkringar Alliance has developed a balance between the small and the large-scale. Cooperation through Läns-försäkringar AB has emerged from a decentralised perspective, not the other way round. The local companies decided to cooperate to achieve economies of scale and to concentrate on the most import-ant issue: meetings with customers. The basis for cooperation in the Länsförsäkringar Alliance is that as much of the operations as possi-ble are conducted by the local companies and essentially all customer contact occurs with them.

Owner control of Länsförsäkringar AB Länsförsäkringar AB

* The company is operated according to mutual principles and is not consolidated in Länsförsäkringar AB.

Länsförsäk- ringar AB Länsförsäkringar Fondliv Försäkrings AB

Länsförsäkringar Liv Försäkrings AB*

Länsförsäkringar Sak Försäkrings AB

Länsförsäkringar Bank AB

General Meeting are formally governed by law and the Articles of Association. The duties of the consortium are governed in the regional insurance compa-nies’ consortium agreement. The Chairman of the consortium is appointed by the regional insurance companies.

Länsförsäkringar AB’s Board is elected by the General Meeting, which comprises representatives of all shareholders. The Board is elected based on a process controlled by the owners through a nomination committee appointed by the General Meeting. The nomination nommittee’s composition, mandate period and so forth are governed in the Articles of Association. The Chairman of the consortium is responsible for the process of renewing the nomination committee.

Länsförsäkringar AB’s Board pursues the strategies and targets that the owners agree on, thus implementing the owners’ assignments. The regional insurance companies’ mandate to Länsförsäkringar AB’s Board is decided in the consortium and is documented in the Länsförsäkringar Alliance’s gover-nance documents. At the same time, Länsförsäkringar AB’s Board has a major responsibility for safeguarding the capital invested in Länsförsäkringar AB by the regional insurance companies. Länsförsäkringar AB’s Board decides on the direction and scope of the operations based on its assignment from the owners.

Länsförsäk- ringar AB

LÄNSFÖRSÄKRINGAR AB’s

BOARD

GENERAL MEETING

LÄNSFÖRSÄKRINGAR AB’s REGIONAL I

NSUR

ANCE

COMPANIES’ OW

NER

CONS

ORT

IUM

5Länsförsäkringar Alliance 2019 About Länsförsäkringar

Quick guide to our offering

Non-life insuranceLänsförsäkringar is market leader in non-life insurance in Sweden with a market share

of 30%, and a market-leading position in commercial, homeowner, motor and pet insurance lines. Most of the Länsförsäk-ringar’s non-life insurance business is underwritten locally by the regional insurance companies. Länsförsäkringar AB is responsible for the non-life insur-ance operations, as assigned by the regional insurance companies to be oper-ated jointly to complement the compa-nies’ offering with specialist products to meet customer needs, to start new busi-ness that can be channelled out to the regional insurance companies, and to manage the Länsförsäkringar Alliance’s joint reinsurance cover. Pet-insurance operations are conducted in the subsi-diary Agria Djurförsäkring.

Read more on pages 24–31.

BankLänsförsäkringar Bank offers banking services to private individuals, agricultural

customers and small businesses. Sales and service take place at the branches of the regional insurance companies, online and by telephone. Deposits and certain lending operations are conducted in Länsförsäkringar Bank, while most of the lending and funding operations are con-ducted through the subsidiary Läns-försäkringar Hypotek. The subsidiary Länsförsäkringar Fondförvaltning offersmutual funds. The subsidiary Wasa Kredit offers financing services to corporate customers and private individuals – pri-marily leasing, renting and hire purchase. Länsförsäkringar Bank is the fifth-largest retail bank in Sweden.


Life assurance and pension insuranceLänsförsäkringar offers pension savings, primarily

occupational pensions. Fund manage-ment, guarantee management and per-sonal-risk insurance are offered through Länsförsäkringar Fondliv. Länsförsäk-ringar Fondliv is a leader in the unit-linked insurance market for individual occupa-tional pensions, commanding a market share of 18%. No new policies are under-written in Länsförsäkringar Liv, but the company manages traditional life assur-ance that was taken out before Septem-ber 2011. Länsförsäkringar Liv is operated according to mutual principles and is not consolidated in Länsförsäkringar AB.


Operating profit increased to SEK 12,001 M(2,243) with investment income of SEK 13,199 M (1,771). The combined ratio amounted to 96% (96).

Premiums earned after ceded reinsurance: SEK 27,856 M

Operating profit increased to SEK 1,893 M (1,510). Net interest income rose 3% toSEK 4,617 M (4,497).

Business volume: SEK 656 billion

Managed assets for unit-linked insurance and traditional life assurance amounted to SEK 159 billion and SEK 114 billion respectively.

Net profit for Länsförsäkringar Fondliv SEK 749 M

Non-life insurance, premium income

Länsförsäkringar, 30.2%

If, 18.3%

Folksam, 16.2%

Trygg-Hansa, 14.1%

Moderna, 3.3%

Dina Federation, 2.8%

Gjensidige, 1.8%

Other, 13.3%

Retail mortgages


Swedbank, 23.8%

Handelsbanken, 22.2%

SEB, 13.8%

Nordea, 13.6%

SBAB, 8.5%

Danske Bank, 3.7%

Other, 7.4%

Unit-linked insurance, individual occupational pensions, premium income


SPP, 16.3%

SEB, 13.8%

Skandia, 12.3%

Handelsbanken, 8.2%

Movestic, 8.1%

Swedbank Försäkring, 6.3%

Nordea Liv, 5.4%

Danica, 4.9%

Folksam, 3.6%

Other 3.7%

Business area

Market shares

Earnings 2019

Source: Insurance Sweden Source: Statistics Sweden Source: Insurance Sweden

+10%+17%+4% 6 Länsförsäkringar Alliance 2019Offering

Real-estate brokerageLänsförsäkringar offers real-estate brokerage though Länsförsäkringar Fastighets-

förmedling. The operations are con-ducted in franchise form, whereby the regional insurance companies act as fran-chisers for the 176 local branches across Sweden. This means that Länsförsäk-ringar Fastighetsförmedling differs from other national estate-agent chains by always being locally based. Länsförsäk-ringar Fastighetsförmedling is the fast-est-growing estate-agent chain in Swe-den and is today the third largest player with a market share of 13%.

Read more on page 44.

A total of 23,491 (21,790) properties were brokered in 2019, of which 12,937 (11,643) tenant-owned apartments and 9,519 (9,168) single-family homes.

Total sales value

Single-family homes brokered

Länsförsäkringar Fastighets-förmedling, 12.9%

Fastighetsbyrån, 26.2% Svensk Fastighetsförmedling, 14.5% Mäklarhuset, 5.1% SkandiaMäklarna, 4.4% Bjurfors, 4.1% HusmanHagberg, 3.3% ERA, 1.3% Mäklarringen, 1.3% Hemverket, 0.9% Other brokers and private, 26.0%

Market shares

Earnings 2019

Source: Värderingsdata

SEK 52 bn 7Länsförsäkringar Alliance 2019 Offering

Länsförsäkringar’s focus on seven UN Sustainable Development Goals

Drivers and trendsOur business environment Drivers and trends in our business environment affect future customer requirements and thereby Länsförsäkringar’s operations, business model and development needs. This presents many challenges but Länsförsäkringar has favourable conditions to optimally meet evolving needs, primarily based on its broad customer base, local knowledge, a long-term approach and highly skilled employees.

The customers’ needs in focus More and more customers are seeking security from a supplier that they have confidence in, making the brand a key cornerstone of the customer experience. To deliver products and services that meet customer expectations, the supplier must understand customer needs and behaviour, and base development activities and customer contact on customer insight. Länsförsäkringar has favourable condi-tions to best meet customer needs – from cradle to grave – primarily founded on a broad customer base, local knowledge and a unique business model that supports both local and digital customer meet-ings. Länsförsäkringar’s starting point is always the customer, with

all communication based on customer data. However, data-driven business development requires carefully balancing customer privacy with better services. The sharing economy that is emerging involves using resources sustainably and economically. There is also a desire to remove “the middle man” and technology is enabling new consump-tion models. These new arising needs present new business opportu-nities for banking and insurance. Länsförsäkringar must be innovative and collaborate within the Länsförsäkringar Alliance – the customer experience must always be local and close, whereas development can be carried out jointly.

3.4 Reduce premature mortality from non-communicable diseases and pro-mote mental health and well-being.

3.6 Reduce the number of global deaths and injuries from road-traffic accidents.

Research into health and road-traffic accidents, preventive health services and rehabilitation, road safety claims- prevention measures and unprotected road-users.

8.7 Eradicate forced labour, human trafficking and child labour.

8.8 Protect labour rights and promote safe and secure working environments for all workers.

8.10 Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all.

Dialogue with suppliers on labour. Digitalofferings that make financial servicesmore available and information on theimportance of equal private finances.

10.2 Promote social, economic and political inclusion.

Promoting equality and diversity in recruitment processes and the business, through nomination com-mittees in portfolio companies and in social commitment.

Länsförsäkringar con-tinuously works to develop its sustainability agenda. The UN Sustainable Devel-opment Goals that the Länsförsäkringar Alliance will jointly work on were decided in 2019. Thirteen targets under seven goals were identified as relevant and can be clearly linked to Länsförsäkringar’s business.

8 Länsförsäkringar Alliance 2019Our business environment

TechnologyRapid technological progress brings with it new banking and insurance solutions and new business opportunities. Traditional com-petition is being continuously challenged by new and innovative companies. In addition, technological advances can lead to disrup-tive changes. Continuous development is needed to ensure lasting competitiveness.

Introducing the Lean Agile work method will enhance the efficiency of Länsförsäk-ringar’s development activities and make them more innovative, resulting in rapid product development and testing, so as to provide the new services demanded by cus-tomers. Länsförsäkringar successfully implemented a new core banking system in 2019 and launched an Open Banking plat-form, which will help make services in the digital area even better. Several pilot proj-ects in health and claims prevention were also carried out. Developments of automa-tion, robotisation, AI and the Internet of Things is continuing and this is where Läns-försäkringar’s has a major advantage with its broad customer base and product offering.

ClimateClimate change – the result of higher carbon emissions – causes global warming. A warmer climate, resulting in extreme weather conditions such as hurricanes, torrential rain and drought, will have major socio-economic consequences.

Climate risk is the area of sustainability that presents the greatest challenge for Länsförsäkringar. Climate change presents financial risks that can impact companies by altering market conditions and through phys-ical climate change. Climate change leads to higher costs for insurance companies.

Länsförsäkringar’s Research Fund will provide SEK 21 M in financing for two new climate research projects in 2020–2023. Länsförsäkringar also participates in a UN project on climate-risk scenarios. Läns-försäkringar AB has been pursuing a cli-mate-smart vision since 2019, with the long-term aim of managing climate risks and adapting investments to the climate targets of the Paris Agreement. Länsförsäkringar AB also published a climate report following TCFD’s guidelines, available on the website.

SocietyTurmoil and uncertainty in international politics and economics have risen in recent years. Like in many countries, the pressure on welfare and public resources is increasing in Sweden. An ageing population is challeng-ing the health and socialcare sector. Contin-ued urbanisation is intensifying demographic challenges, particularly in rural areas. The differences in quality of life are widening due to social-political polarisation, meaning that vulnerable groups are finding it difficult to enter the labour market, buy a home and get a mortgage. The nature of crime and crimi-nality has changed, with organised crime and digital fraud on the rise. Cyberthreat is now one of the main perceived business risks.

Länsförsäkringar works both proactively and reactively to manage and analyse the effects of changes in society and how they impact customers. Measures include financ-ing independent research projects studying social, economic and physical security for customers and society at large. Länsförsäk-ringar works every day to combat fraud, money laundering and terror financing.

12.2 Sustainable management and use of natural resources.

12.4 Environmentally sound management of chemicals and all wastes.

12.8 Ensure people everywhere have information and awareness for sustainable development.

Setting demands for materials, recycling and reuse for damage repairs, encouraging suppliers and portfolio companies to report on sustainability. Research into con-struction materials.

13.1 Strengthen resilience and adaptive capacity to climate-related hazards.

13.3 Improve awareness-raising and capacity on climate change mitigation.

Reducing the climate impact of Länsförsäkringar’s own operations.Research into climate impact, dia-logue with customers and policy-makers on climate issues. Makingclimate-smart investments, such as green bonds.

16.5 Reduce corruption and bribery.

16.6 Develop effective, accountable and transparent institutions.

Anti-money laundering and pre-venting terror financing in the bank-ing and life-assurance operations.

The SDGs can only be realised through global partnership and cooperation.

Partnerships with the Länsförsäk-ringar Alliance and other external parties, such as research institu-tions, trade organisations, countyadministrative boards, the emer-gency services and local companies.

9Länsförsäkringar Alliance 2019 Our business environment

Promise

Länsförsäkringar makes a promise to its customers to contribute to a simpler everyday life and a more secure future. With our local presence, the regional insurance companies can understand their customers’ situation and can meet their needs, using channels chosen by the customers. By being locally owned by the customers, and not having any other interests, the regional insurance companies promise long-term stability.

A simpler everyday life and a more secure futureThe brand Länsförsäkringar is one of the strongest brands in Sweden. Based on a brand promise, which is to simplify everyday life and contribute to a secure future, the 23 regional insurance companies use a shared brand platform to live up to this promise.

The regional insurance companies are owned by their customers. Accordingly, customers are the main driving force. Any value created is returned to the customers and the society in which they live and work.

Mission Customer value first

Länsförsäkringar shall be accessible and offer services that are easy to understand and use, in the channels chosen by the customer.

Position

Länsförsäkringar is to be close to the customer by always reflecting and acting from a customer perspective. Länsförsäkringar’s commitment for greater customer value sets us apart from our competitors.

Core values Close, committed and simple

We simplify your everyday life and contribute to

a secure future

Most customer friendly

10 Länsförsäkringar Alliance 2019The brand

Strength of the brand

Unique and long-term customer relationships are created since

each regional insurance company is owned locally by its customers.

Outcome 2019 • The strength of the brand is based

on the regional insurance compa-nies’ local and close relationships with their customers, and their ability to adapt the operations to local conditions. According to the Swedish Quality Index, Länsförsäk-ringar has Sweden’s most satisfied banking, insurance and real-estate brokerage services customers.

• According to Kantar Sifo’s reputation survey, Länsförsäk-ringar has the highest reputation in banking and insurance.

Bonuses to customers

Profits go back to our customers, who are also our owners.

Long-term profitable growth in the customer-owned regional insurance companies is important for meeting future challenges, assuming social responsibility and supporting sustainable devel-opment.

Outcome 2019 • Länsförsäkringar’s healthy growth continued for all business

lines in 2019.

• The regional insurance companies paid a total of SEK 1,893 M in bonuses and discounts to their owners — the customers.

• The regional insurance companies, the Länsförsäkringar AB Group and each subsidiary remained well-capitalised in 2019.

Sustainability in operations

Sustainability involves generating greater value for customers and, at

the same time, contributing to the sustain-able development of society.

Länsförsäkringar can reduce its sustainability risks and also contribute to the positive development of society and create business value by incorporating sustainability throughout the operations.

Outcome 2019 • Dialogue on climate change and development planning was

conducted with decision-makers in society.

• Länsförsäkringar Fondförvaltning launched a sustainable fixed income fund that invests in green bonds.

• Länsförsäkringar’s Research Fund financed tests to reduce the risk of water damage in kitchens and bathrooms.

• Work was conducted to reduce the climate impact of Läns-försäkringar’s own operations.

Read more about Länsförsäkringar’s sustainability work on pages 14–23.


SEK 1,893 M

11Länsförsäkringar Alliance 2019 The brand

How we create valueHow we create value With a clear focus on our customers, who are also owners of the 23 regional insurance companies, Länsförsäkringar creates a simpler everyday life and a more secure future.

For our stakeholders ...we create value

Employees

Civil society

Customers/Owners

Society

A simpler every day life and a more

secure future

Business environment factors


Local presence across Sweden. Extensive knowl-

edge about local and regional conditions.

Profits go back to our customers, who are

also our owners.

Joint, large-scale solutions create efficiency, lower

premiums and higher return on savings.

Personal customer meetings combined with round-the-clock

availability, based on the customer’s needs.

Broad customer offering in banking,

insurance, pensions and real-estate brokerage.

Claims-prevention activities strengthen customers’ health

and security, reduce claims costs and

promote a sustainable society.

Specialist knowl-edge, business

development and innovation enable a broad offering of relevant products for our customers.

12 Länsförsäkringar Alliance 2019How we create value

socially, environmentally... ...and financially


SEK 1.9 bn

Claims payments to customers

SEK 25.1 bn

Salaries and pensions for employees

SEK 6.3 bn

Payments to suppliers

SEK 5.6 bn

Research grants

SEK 51 M

Sponsorship

SEK 50 M

Civil society • Increased diversity, inclusion and security

in society. • Extensive exchange of information and

knowledge that promotes society and the environment.

• Sponsoring sports clubs and civil society organisations to improve the physical and mental health of children and young people.

Society • Core business that creates social benefit

and strengthens the customer’s long-term financial security.

• Claims-prevention activities – a gain for the environment.

• Preventive efforts reduce illness and costs to society and employers.

• Support research into social challenges, mental illness and animal health.

Employees • Attractive workplace. • Healthy work environment. • Many opportunities for skills development. • Strong career opportunities.

Customers/Owners • Close personal relations with local

insurance companies. • High service level and skills. • Comprehensive offerings create security. • Competitive prices and strong total return. • Claims-prevention activities reduce claims.



13Länsförsäkringar Alliance 2019 How we create value

Secure business for customers and a sustainable society Sustainability Länsförsäkringar’s mission dates back more than 200 years. The basis of this mission is respect for customers’ security. Länsförsäkringar firmly believes that a responsible banking, insurance, pension and real- estate brokerage offering enhances value for customers and contributes to the sustainable development of society.

Local and long-term responsibility The starting point of Länsförsäkringar’s sustainability efforts is local and long-term responsibility in the community, since the regional insurance companies are local and customer-owned. Länsförsäk-ringar has various partnerships and conducts research that leads to a sustainable society. Maintaining a strong, local commitment not only benefits Länsförsäkringar’s own customers but also society as a whole. The local regional insurance companies conduct extensive social initiatives with partners including sports clubs, civil society organisations, schools, the emergency services and municipalities, which contributes to, for example, a safe local environment, social inclusion and constructive leisure time for young people.

Claims prevention Claims-prevention activities are a priority for both customers and the local community. Long-term work in society takes place in the areas of claims-prevention activities, claims adjustment, social com-mitment and research. Preventing claims involving people, animals, property, forests and land while also offering optimal sustainable damage repairs is inherent in environmental and social responsibility.

Länsförsäkringar’s direct environmental impactThe direct environmental impact of the operations is relatively lim-ited and primarily comprises business travel, heating and electricity in office premises, and paper print-outs. The main strategies for reducing the climate impact of Länsförsäkringar’s own operations are energy efficiency, a move to renewable energy, reducing travel and increasing the use of digital technology for meetings. Efforts are being made to reduce paper printouts. The percentage of centrally distributed digital customer documents was 56% (50) in 2019.

Governance and direction Core values and expertise are essential in order for Länsförsäkringar to achieve its goal of a higher level of sustainability in its operations. Improvements are continuously made to work methods and proce-dures to enhance sustainability.

Länsförsäkringar AB also signed the UN Global Compact’s ten principles, the UN Principles for Responsible Investment (PRI) and the UN Principles for Sustainable Insurance (PSI). Länsförsäkringar is a member of several trade organisations and participates in numer-ous sustainability partnerships with other operators.

Ung Växtkraft awards stimulates development in the countrysideLänsförsäkringar and the Federation of Young Swedish Farmers awarded the 2019 Ung Växtkraft prize to support and encourage young entrepreneurs in the countryside to run a business and keep the countryside alive. Other local prizes are awarded in the Länsförsäkringar Alliance to promote sustainable development, sustainable enterprising and sustainable ideas.

Testing highlights new risksIt is common for water pipes to be built into the walls of a home and a manifold cabinet is used for all manifolds to reduce the risk of damage. This safety measure is based on the cabinet remaining completely waterproof. Together with RISE Research Institutes of Sweden, Läns-försäkringar’s Research Fund commissioned testing of the manifold cabinets from the four largest manufacturers. The results showed that the manifold cabinets risk leaking despite following the installa-tion instructions to the letter. Based on these tests, Länsförsäkringar is collaborating with the Säker Vatten trade organisation and VVS- fabrikanternas Råd (the Swedish association for manufacturers of heating, plumbing and sanitation products) to improve cabinet designs.

Sustainability14 Länsförsäkringar Alliance 2019

Länsförsäkringar’s Research Fund

Since the 1970s, Länsförsäkringar AB and the regional insurance companies have awarded annual grants to Länsförsäkringar’s Research Fund to identify and study current and future security challenges for society. By making the research results available in the public domain, Länsförsäkringar contributes to knowledge-based development of security in society. Research focuses on five areas: Secure homes, tomorrow’s society, road safety, climate change and mutual business models. 11 research projects were being carried out at the end of 2019.

Research focusing on securityThe Research Fund issues calls for proposals to invite researchers at Swedish universities, colleges and independent researchinstitutions to apply for grants. These subsidies are awarded to projects at a qualified scientific level that are highly relevant to Länsförsäkringar. The Research Fund also finances other scientific tests and feasibility studies that aim to highlight and reduce risks and to advance the development of sustainable and beneficial products.

Useful research resultsThe results of this research are used in Länsförsäkringar’s own business development and in discussions with customers and various stakeholders in society. An important part of the task of Länsförsäkringar’s Research Fund is to communicate research results broadly throughout society and for more parties to make use of the results. Experience shows that the results are used by several different organisations in society, such as the Swedish Transport Administration, police, municipalities and county administrative boards.

One channel for spreading the results is the regular panel talk forum called “Framåtblick” which takes place in various locations across the country. The forum serves as a bridge between research and practice by spreading know-how locally to strengthen the regions. The forum is a partnership between the regional insurance companies and the Research Fund and the local community is invited to participate.

New climate-related research projectsLänsförsäkringar’s Research Fund will provide SEK 21 M in financing for two new projects in 2020–2023.

The University of Gothenburg will study how the finance markets and financial organisations act and react to the climate threat. The transition to a fossil-free society will set major demands for the financial sector, particularly because the investments needed to advance towards a more fossil-free society are enormous. There is the risk here that if the transition moves too quickly, major fossil assets could become stranded and extensive bankrupt-cies could then threaten the stability of the financial sys-tem. The project will also investigate the motives driving private investors to make sustainable investments.

Linköping University will carry out research to strengthen property owners’ ability to climate-adjust existing build-ings. The property owners themselves bear the primary responsibility for climate adjustments but there is a lack of good support to help these owners manage climate risks. More precise vulnerability analyses, proposals on specific countermeasures and better cooperation between hous-ing, municipal and insurance companies are needed to ensure secure homes in the wake of climate change.

Improved climate adjustments to residential areas

Financial effects of climate policy

Research field Ongoing research projects and tests Start-up:

Tomorrow’s society: Digitisation, urbanisation, sharing economy

• Regional growth against all odds: Driving forces for long-term growth in Nordic regions. Lund University.

2017

• Regional economic development and transformation in Sweden: Then, now and tomorrow. Lund University.

2018

• The geography of trust: Trust in local society in a changing Sweden. Ersta Sköndal Bräcke University College.

2017

• Continuous internal audit using artificial intelligence in insurance companies. University of Gävle.

2018

• Blockchains for dynamic pricing of innovative insurance products. University of Gothenburg.

2018

• Transparent algorithms in the insurance industry. RISE SICS. 2018

• The insurance company in digital ecosystems. University of Gothenburg. 2018

Climate change • Improved climate adjustments to residential areas. Linköping University. 2020

• Financial effects of climate policy. University of Gothenburg. 2020

Secure homes • Secure homes for the elderly from smart technology. Dalarna University. 2019

• Partial repairs of waterproof membranes. RISE. 2019

• Removing snow from rooftop solar panels. RISE. 2019

Road safety • Testing bicycle lights. VTI. 2019

15Länsförsäkringar Alliance 2019 Sustainability

• Länsförsäkringar Gotland participates in MIND//SHIFT’s Guldhjärnan project to teach about mental health first aid.

• Länsförsäkringar Gävleborg offers customers CPR training on children.

• Länsförsäkringar Halland launched the Peppen app to increase physical activity among employees and the Luren app to improve mental health.

• Länsförsäkringar Kalmar län started the Mobilfri skola project to encourage children and young people to exercise during their school break to improve their mental and physical health.

• Länsförsäkringar Värmland offers free reflective vests to all preschools in Värmland.

• Länsförsäkringar Västernorrland arranges a health project to reach out to more customers with information on why they should think more about their health and how Länsförsäkringar can help them.

• Länsförsäkringar Östergötland arranges information meetings for young people aged 18–23 to learn about insurance and road safety.

• Länsförsäkringar Göteborg och Bohuslän works on inclusion and diversity. Since autumn 2018, it has offered traineeships to 14 people from such countries as Syria, India, Russia and Iran with the aim that this will result in a job.

• Länsförsäkringar Skåne has expanded its partnership with the Hela Malmö organisation that endeavours to create a safe and inclusive Malmö for children and young people.

• Länsförsäkringar Uppsala organises Locker room talk together with Upplands idrottsförbund and IFU Arena to teach young people that appropriate language and decent values are inter-linked – on the pitch, at school and on social media.

• Länsförsäkringar Västerbotten partners with Läxhjälpen to make sure that more children receive support at school.

• Länsförsäkringar Älvsborg promotes healthy and equal sport for young people, with financial resources equally distributed between sports for girls and boys through Länsförsäkringar Älvsborgs Föreningsakademi.

Activities supporting the UN SDGs Länsförsäkringar works actively to support a sustainable development and to contribute to a sustainable society. The Länsförsäkringar Alliance has identified the seven most relevant SDGs for its operations where the Alliance can make the largest positive contribution and have the least negative impact. This process was based on Länsförsäk-ringar’s material sustainability topics, level of engagement, identified risks and opportunities. In addition to the joint goals, several regional insurance companies work on additional goals that are relevant to their operations. A selec-tion of activities carried out by the regional insurance companies that support the selected SDGs is presented below.

• Protecting employees’ rights, for example, through trade unions and collective bargaining agreements.

• Requiring that suppliers and companies that Länsförsäkringar invests in have sound work conditions and are not involved in child or forced labour.

• Länsförsäkringar supports this target by making its banking and insurance services available to different target groups in society.

• Local jobs are created by engaging local builders, car workshops and contractors.

Three of the SDGs are more general. The Länsförsäkringar Alliance works on them every day.


• Länsförsäkringar Bergslagen carries out different claims- prevention activities, for example, paying for more extensive chimney-sweeping to prevent fires.

• Dalarnas Försäkringsbolag has built a house in Falun for testing and exploring ideas for constructing buildings as sustainably as possible in all respects. The aim is to spread know-how and develop construction.

• Länsförsäkringar Jönköping has introduced a new work method whereby damaged property is not cashed in and scrapped. Instead, a smaller insurance payment is made and the customer keeps the property.

• Länsförsäkring Kronoberg works on circular claims adjustment to increase the reuse, repair and recycling of home electronics in claims.

• LF Norrbotten works on producing and adopting a food policy for the company aimed at choosing sustainable catering and service for customer events, staff meetings and representation.

• Länsförsäkringar Södermanland offers recycling insurance for agricultural customers for the removal and recycling of scrap and environmentally harmful waste.

• Länsförsäkringar Blekinge participates in Klimatsamverkan Blekinge, a platform for coordinating the business and public sector to increase their commitment in natural catastrophes.

• Länsförsäkringar Göinge-Kristianstad raises awareness of construction techniques for new-builds in risk zones close to water that are affected by climate change and rising sea levels.

• Länsförsäkringar Jämtland actively provides information on forest fires, storms and flooding.

• Länsförsäkringar Skaraborg’s employees completed an inter-active course on the company’s climate footprint to increase awareness.

• The SDGs can only be realised through global partner ship and cooperation. For Länsförsäkringar, cooperation between companies is a perquisite for the business activities. An important part is this is also developing partnerships with industry col-leagues, organisations, companies, municipalities, county administrative boards and universities.

• Anti-money laundering measures in lending opera-tions, ensuring that bribes are not received, and requiring a high level of business ethics in its own operations and from suppliers and companies that Länsförsäkringar invests in.

• Transparency in insurance terms and condition.

• The regional insurance companies have complaints officers.


Responsible insurance offeringLänsförsäkringar works to prevent claims following a dedicated approach to reduce insurance claims and increase security for customers and society as a whole. Preventing a claim is a win for the customers, society and the environment.

Claims-prevention activities help reduce impact on the environment through less waste, reduced energy and materials consumption, transportation and other resources – for both the claim incident itself and also for repairs.

Natural catastrophes, water and fire damage claims and motor insurance claims have the greatest impact on the environment and are thus Länsförsäkringar’s focus areas for claims-prevention activi-ties together with crime-prevention measures. Länsförsäkringar’s website has several guidelines available to the public on how claims can be avoided.

Initiatives to prevent natural catastrophesGlobal warming is a financial risk that is difficult to predict over time. The effects will mean that sea levels are expected to rise by 0.5-1 metre this century and even though the total number of tropical storms is not thought to increase, the strongest type of storms is expected to grow in number. Costs for natural catastrophes at Läns-försäkringar are increasing and in total represent slightly more than 10% of property-damage claims over tim.

All 23 regional insurance companies have a natural-catastrophe coordinator who focuses on spreading know-how and preventing natural catastrophes. Activities to prevent natural catastrophes include analysing the external environment and following scientific and technological developments. There are many reasons for higher claims costs caused by natural catastrophes: the rising trend of more extreme weather situations and the effects of urban planning with new developments in vulnerable areas.

Dialogue on climate change and development planning is con-ducted with decision-makers in society. Länsförsäkringar informs its customers how they can protect themselves, their families and their properties from natural catastrophes, such as hurricanes, thunder-storms, floods, heat waves, drought and heavy snowfall, and reduce the risk of starting a forest fire.

Initiatives to prevent water damage Water-damage claims are the most common claims type in our homes. More than 100,000 cases of water damage are reported every year in Sweden. The average case of water damage to a home generates about 300 kg in carbon emissions. Statistics show that water damage is more common in the kitchen than in the bathroom. Kitchens have many water connections that could leak. Water- damage claims can be avoided by choosing the right materials and methods and by installing water alarms and leak detectors. Länsförsäkringar continuously informs its customers and contractors about how they can reduce the risks of water damage. Several regional insurance companies offer financial grants to customers who install water alarms and water leak detectors.

Guidelines for kitchen and bathroom construction were prepared with industry colleagues and Insurance Sweden. Water damage costs the insurance industry SEK 10 billion per year according to statistics from Insurance Sweden. Much of this damage could be avoided if bathrooms and kitchens were renovated correctly.

Länsförsäkringar’s water-damage focus group worked on three areas during the year that have great potential for limiting the extent of future damage caused by leaks.

Manifold cabinets: Current manifold cabinets have design flaws that could lead to extensive damage from leaks and the focus group is spurring the development of cabinets to eliminate these risks. Länsförsäkringar, through its Research Fund, is the only insurance company that is participating in this joint project with the plumbing sector, represented by the Säker Vatten trade organisation.

Water leak detectors: A project carried out by Länsförsäkringar’s Research Fund and Säker Vatten with the aim of producing a standard for water leak detectors. Such a standard will allow Säker Vatten and the Swedish National Board of Housing, Building and Planning to set requirements for water leak detectors in new-builds.

Partial repairs of wet rooms: There is a financial and environmental gain in limiting the scope of repairing damage. Länsförsäkringar is part of an industry-wide project on partial repairs of wet rooms together with other insurance companies and the construction industry.

Initiatives to prevent fire-damage claims Fires cause the single largest claims cost for Länsförsäkringar. Over ten years, it represents about 30% of the costs for property-damage claims. The kitchen is where most fires start, almost half of them at the hob. A fire at a home generates an average of 25 tonnes of carbon dioxide. Fires also result in chemical emissions to air, land and water. Sanitising and restoring houses and apartments after a fire requires a vast amount of energy as well as new or recycled materials, and results in huge volumes of waste. Länsförsäkringar continuously informs its customers about how they can reduce the risks of fire damage.

Efforts to reduce road-traffic accidents Länsförsäkringar is the market leader in motor insurance and strives to reduce the number of accidents on the road. To aid claims-preven-tion activities with corporate customers, shared guidelines easily and systematically show how claims can be prevented together with


customers. The guidelines include training and information materials as well as a model for systematically monitoring clams.

The geographical location of every accident and incident is reported to a statistical database called “Claims on a Map.” The complete inci-dent and accident statistics provide knowledge of where accidents occur and why. These statistics aid efforts to prevent motor insurance claims in collaboration with municipal street departments and munici-palities. Länsförsäkringar runs local campaigns and efforts to reduce road-traffic accidents.

Security and crime-prevention initiatives Fear of crime in society has risen and safety is a central issue in the daily lives of Länsförsäkringar’s customers and for society at large. A Länsförsäkringar focus group coordinates and carries out measures to reduce crime and increase security. The particular focus of the group’s work is intrusion protection, preventing children and young people from social exclusion and becoming involved in crime, Läns-försäkringar’s contributions to positive developments in disadvan-taged areas and activities for increasing safety in the digital world.

Länsförsäkringar is engaged in several local security initiatives in society, particularly by supporting youth activities aimed at guiding young people and increasing their chances of choosing a positive path in life, giving them tools for breaking out of destructive surroundings and preventing social exclusion.

Active efforts are made to raise customer awareness and know-how about what to do to reduce the risk of crime, for example, by pro-viding information, education and tools (locks and alarms). Länsför-säkringar supports neighbourhood watch networks in several places and Länsförsäkringar’s Research Fund finances research in this area.

Sustainability requirements for claims repairsLänsförsäkringar has produced a certification programme for car workshops. Most regional insurance companies have joined this pro-gramme, which ensures that the workshops used for damage repairs meet environmental and quality requirements. Certified workshops work actively on environmental issues and have environmental tar-gets that are monitored and controlled. Repairs are performed with used car parts as far as possible and try to repair plastic details instead of replacing them, thus reducing the impact on the environment. Bodywork and glass repairs must be carried out professionally and active environmental efforts must be pursued. This means, for exam-ple, that the workshops’ plastic repairs must be approved by Bilplast-forum, that their equipment is approved, that repairs are carried out using the correct technical information and that repairs are docu-mented for traceability.

A challenge is sourcing used spare parts. The percentage of used spare parts in motor claim repairs in 2019 was 12%, and the share of claims with used plastic repairs was 21%.

At year-end 2019, about 1,450 workshops were certified. They were inspected by Autoteknik.

Quality inspections of completed repairs are performed by a third party, Dekra, which is a partnership between Swedish Motor Insurers, Länsförsäkringar and five other insurance companies.

Länsförsäkringar also applies environmental and quality certifi-cation of salvage companies. Certification requirements include environmental targets, the use of vehicles approved for salvage in environmental zones and professional skills for drivers and training. Certified salvage companies are inspected by Autoteknik.

Länsförsäkringar industry leader on sustainability Länsförsäkringar was named Sweden’s most sustainable insurance company 2019 by Sustainable Brand Index – the largest consumer sustainability survey in the Nordics.

Sweden’s largest fire drillFire drills are common in the workplace and in schools, but few people perform a fire drill at home. Eight of ten people who die in fires die in their own home. Länsförsäkringar carried out a nationwide campaign to encourage existing and future customers to do fire drills at home. Information activities, films, customer meetings and partnerships with the emergency services help spread important informa-tion about how to fire proof the home and reduce the risk of fires.

Fire challenges of local electricity production The emergency services and regulators face new challenges from local electricity production, for example, solar power and wind power, electric cars, new energy saving products and innovative electric systems in buildings. These products are often not optimised to work with each other and we do not yet know what the fire risks of these systems are. Länsförsäkringar is involved in part-financing a research project called “Innovative Electric Systems in Buildings – Consequences for Fire Safety” which aims to chart the risks of new and complex systems.


Sustainability requirements for repairs of properties and homesLänsförsäkringar imposes high quality demands on repairs to prop-erties and homes. Länsförsäkringar produces methods and systems for setting requirements for companies that repair damage to build-ings. Companies are also engaged in dialogue regarding construction methods, recycling and materials that reduce adverse environmental impacts. Länsförsäkringar was involved in preparing the Swedish National Board of Housing, Building and Planning’s construction reg-ulations on fire protection. This has a positive effect on the environ-ment as w,ell as expected lower claims costs.

By highlighting the results of testing waterproof membranes financed by Länsförsäkringar’s Research Fund, Länsförsäkringar was a driving force in 2019 behind influencing the industry to develop and use materials to ensure waterproof bathrooms.

Health for a sustainable life Länsförsäkringar is one of the Sweden’s leading players in health and health care insurance. The vision is to create a healthier Sweden by contributing to a sustainable lifestyle, sustainable working life and a sustainable society. Mental illness is the most common cause of sick leave. Preventive and early measures at the workplace are the keys to breaking this trend. Länsförsäkringar actively participates in the public debate on good health and a sustainable working life and pro-vides supplementary employment security solutions to promote health and reduce sick leave.

Health care insurance is based on preventive health services and providing the right type of care at the right time with effective reha-bilitation. The aim of these preventive health services is to promote good health and prevent illness by, for example, reducing stress, improving sleep and maintaining a healthier lifestyle. Rehabilitation includes medical and work-oriented rehabilitation, as well as treat-ment for addiction and substance abuse.

Health-promotion efforts for animalsAgria operates in Sweden, Norway, Denmark, Finland, the UK and France. Agria develops insurance products that create security for animals and animal owners in close collaboration with animal-owner organisations. Agria works regularly on claims-prevention informa-tion and health-promotion activities for customers’ animals in its own digital channels and via digital vet consultations.

Agria has health profiles for breeds of dogs and cats (Agria Breed Profiles) that contain extensive claims statistics that are used by researchers, breeders and breed clubs to improve animal health and sustainable breeding.

Agria’s Research Fund supports research on animal health and well-being and the importance of animals to people and society.

Uncertain insurance cases Länsförsäkringar’s aim is to ensure that its policyholders are treated correctly and that the right compensation is paid to the right person. Each regional insurance company has a complaints officer whom cus-tomers can contact if they are unhappy with a decision or their claim.

Insurance fraudFraud is an area that is spreading quickly throughout society. The increase in fraud is partly related to digitisation and use of the Internet. Fraudsters can be anonymous and it is easier to use other people’s identities, for example. According to trade organisation Insurance Sweden, insurance fraud accounts for between 5% and 10% of claims costs, meaning that insurance fraud costs the insurance industry between SEK 3 and 6 billion every year.

It is vitally important to counteract insurance fraud to protect policyholders and to keep premiums down. Länsförsäkringar follows Insurance Sweden’s guidelines on insurance fraud.

Länsförsäkringar has its own investigation organisation that works actively on counteracting suspicions of fraud and preventive measures. It also focuses on crime trends by providing training and targeted activities. The investigators train local claims processors. They arrange a joint course once a year with the topic varying depending on crime trends.

The investigation organisation stopped erroneous payments of about SEK 200 M from about 2,800 claims cases.

Länsförsäkringar works together with the insurance industry and the authorities via Insurance Sweden to combat fraud and enhance security for customers. This work creates the conditions for influ-encing society’s attitudes towards fraud and helps to provide an overview of the extent of the problem.

Agria’s Research Fund Agria has financed animal research for 80 years. The aim is for research to provide a solid basis for successful breeding, better animal health and animal keeping, and enhance knowledge about the importance of pets to people. More than SEK 10 M was awarded to various research projects in 2019.

Länsförsäkringar’s environmental and quality certification of car workshopsLänsförsäkringar has had an environmental and quality certifica-tion programme for eight years. The programmes target body paint, plastic, glass and mechanical workshops as well as salvage compa-nies. The workshops receive help with analysing and improving their business through annual, systematic reviews. Used spare parts instead of new are to be used as far as possible and plastic details on cars are to be repaired professionally where possible.


Companies with an integrated sustainability work method can help reduce risk and identify solutions to the challenges that society faces. Investing responsibly contributes to sustainable value creation.

Supports UN initiative PRILänsförsäkringar AB is a signatory of the UN-supported Principles for Responsible Investment (PRI). The initiative comprises six princi-ples for integrating sustainability into investment analyses and deci-sions, corporate governance, engagement and partnerships.

Investments in responsible companiesLänsförsäkringar AB invests and manages customers’ savings in its own funds and in external funds. Investments are benchmarked two to four times a year with applicable exclusion criteria and with inter-national conventions in the areas of the environment, human rights, labour laws, corruption and controversial weapons.

An external consultant has been engaged to analyse listed com-pany holdings based on these conventions. Based on these analyses, Länsförsäkringar AB seeks to use dialogue to exert an influence on companies that breach international norms. The aim is to stop the company from committing breaches and take measures to prevent similar incidents from being repeated. If engaging in a dialogue does not achieve the desired results over time, the holdings in the company may be divested.

Requirements on external managers Länsförsäkringar Fondförvaltning’s Swedish funds are managed inter-nally. Länsförsäkringar AB’s other investments are managed by external managers through funds or discretionary mandates. The investment philosophy is based on using leading managers with a variety of invest-ment areas and management approaches. Sustainability requirements are included in the procurement of new managers. The integration of sustainability topics into management models is monitored every year.

Active corporate governance and engagementCorporate governance includes company dialogues, active partici-pation in the nomination committees of portfolio companies to influ-ence board compositions and voting at general meetings. A long-term objective is to increase diversity on the boards of the portfolio com-panies.

Companies are engaged in preventive dialogue to ensure that they are managing their sustainability risks. Länsförsäkringar AB is actively involved in investor initiatives on various sustainability topics targeted to individual companies or industries. Engagement is given greater impetus through partnerships with other investors. Partner-ships take place in the framework of the PRI for example.

Minimise climate risksLänsförsäkringar AB seeks to reduce investments in fossil fuels and in sectors with significant greenhouse gas (GHG) emissions. One reason is that GHG emissions increase climate-related risks that result in both physical and financial damage. Another reason is that moving towards a climate-smart society will lead to market and reg-ulatory consequences for carbon-intensive companies. An effort under way to reduce exposure to companies with high emissions and increase the share of climate-smart companies. At year-end 2019, 192 mining companies and energy companies that derive more than 5% of their sales from thermal coal and oil sand extraction were divested from Länsförsäkringar’s own funds and direct investments. Investments are made in green bonds that focus on environment and climate-related projects, certified forests and environmentally certified properties.

The Länsförsäkringar Alliance’s joint property company Humle-gården environmentally certified five investment properties under BREEAM In-Use in 2019. Certified investment properties account for 90% of the total floor space. All bonds outstanding at year-end issued by Humlegården were green.

Responsible pension and savings offering Länsförsäkringar strives to create the highest possible value from managing customer savings. The aim of respon-sible investments in the pension and savings offering is to contribute to sustainable value creation over time.

Tripling investments in green bonds Länsförsäkringar AB increased its investments in green bonds from SEK 3 billion to more than SEK 9 billion in 2019, corresponding to 7% of the portfolios’ total capital. These investments contribute to financing, for example, the expan-sion of renewable wind and solar energy, green properties, forestry, water and waste manage-ment and sustainable public transport.

New sustainability -based fixed-income fund Länsförsäkringar Hållbar Företagsobli-gation, which invests in green bonds in SEK, was launched in 2019. More than 90% of the fund comprises green bonds or holdings where the issuer received the highest rating in Länsförsäkringar’s sustainability analysis. The fund man-ager focuses on selecting issuers who apply a structured approach to sustain-able development goal and work actively on sustainability targets.

Divestment of tobacco holdingsIn 2019, exclusion criteria regarding tobacco manufacturers were intro-duced to Länsförsäkringar’s own funds and in the institutional portfolios man-aged by Länsförsäkringar AB. Tobacco companies were excluded since they were deemed to have such a negative social impact on the environment as well as health and biodiversity that they could not be classed as responsi-ble companies. Incidences of child labour are also common.


Responsible lendingLänsförsäkringar Bank is an important part of the financial system, and by pursuing responsible lending the bank can increase customer value and financial stability. Länsförsäkringar Bank’s loans are granted in Sweden and in SEK.

Lending at low sustainability riskLänsförsäkringar Bank’s loans are granted in Sweden and in SEK. The geographic spread of lending to both retail and corporate customers is well-diversified. Lending to companies mainly comprises small businesses that are deemed to have limited environmental and social risks. Accordingly, the business model for lending has relatively low sustainability risks.

Strict requirements are imposed on customers’ repayment capacity and the quality of collateral. The loan application process, combined with the local customer and market knowledge of the advisors, provides favourable conditions for a loan portfolio with high credit quality and low sustainability risks.

Mortgage repayments are a key tool in ensuring that households have stable and secure finances. Länsförsäkringar encourages all cus-tomers to make repayments by presenting a recommended re payment plan, as well as an alternative plan, at all customer meetings where mortgages are discussed. Even customers that do not fall under the repayment requirements are encouraged to pay off their mortgage.

Anti-money laundering and terror financingLänsförsäkringar makes extensive efforts to minimise the risk of the operations being used or exposed to financial crime. Systematic work is conducted to reduce the risk of the life-assurance and bank-

ing operations being used for money laundering, terror financing and fraud, such as building up in-depth knowledge of customers and their businesses and active transaction monitoring. Other attempts at fraud, for example card fraud, are also monitored. The Länsförsäk-ringar Alliance has a shared system for reporting deviations.

Local branches and digital servicesWith the 23 regional insurance companies, Länsförsäkringar’s custom-ers have access to branches throughout Sweden. Länsförsäkringar also offers digital banking services. As well as serving customers who actively choose digital meeting places, digital banking services are offered to customers who have not previously been able to come to a branch due to long distance or disability, or who require service out-side normal office hours. 67% (63) of bank customers use Länsför-säkringar’s mobile app or Internet bank. Digitisation reduces impact on the environment by sending fewer paper print-outs to customers.

Financing that reduces environmental impactIn 2019, Wasa Kredit launched a new financing model tailored to products that reduce environmental impact. Wasa Kredit continues to be an attractive financing partner for companies that work with energy conversion, for example, charging stations for electric and hybrid cars and solar panel and biogas facilities.

Environmental financing with BKtechWasa Kredit partners with the industrial company BKtech, which is helping Swedish industry with the transition from fossil fuel to bioenergy. Wasa Kredit’s financing solutions via BKtech contributed to carbon savings in 2019 of more than 8,200 tonnes per year, corresponding to the annual emissions from more than 3,600 cars.

Partnership with ECPAT Länsförsäkringar Bank participates in the Swedish Financial Coa-lition against Commercial Sexual Exploitation of Children, which works together with ECPAT and the police. Childrens’ rights organ-isation ECPAT is part of a global network of 97 countries that seek to prevent and inform about the sexual exploitation of children. The aims of the Financial Coalition are to prevent the Swedish pay-ment system from being utilised for the purchase of documented child sexual abuse and ultimately stopping child sexual abuse.


Good development opportunities The Länsförsäkringar Alliance has a broad range of professional expertise in banking, insurance and real-estate brokerage services, and specialist roles in a number of different areas. 23 independent regional insurance companies and a jointly owned service and devel-opment company, Länsförsäkringar AB, offer a large internal labour market, which provides employees with many opportunities for further development by changing job, in the local regional insurance com-pany or within the Länsförsäkringar Alliance. Employees can credit their entire length of service even when they change company within the Alliance.

Skills-development opportunities are available in the regional insurance companies and through joint training activities at Läns-försäkringar AB, which offers training in banking, life assurance and non-life insurance as well as leadership. These courses focus on giving employees the skills needed in a business context to offer customers products and solutions that meet their requirements. A total of 48,332 in-house training courses (25,590) were organised for Länsförsäk-ringar Alliance employees in 2019. The large increase was mainly due to updating expertise in the IDD for employees working in insurance distribution. Employees also receive training in the form of skills transfers, external courses and seminars.

Local and shared Attracting, recruiting, onboarding and developing employees are mainly managed individually by each company in the Länsförsäk-ringar Alliance. Development and coordination in certain issues take place jointly between the regional insurance companies and Läns-försäkringar AB. Implementation of a new shared HR and training system will begin in 2020. A shared ambition is to advance Länsför-säkringar’s positions as an attractive employer.

Work environment and health Länsförsäkringar is distinguished by a highly positive work environ-ment, where collaboration and cooperation are key words for creat-ing strong solidarity and companionship. An open and tolerant work-ing climate free from all forms of discrimination is the foundation of relationships between colleagues and with customers. Promoting equality, inclusion and diversity is a natural element of the corporate culture. Employees are offered health care insurance that includes medical consultations, personal counselling and preventive health services encompassing a health profile and online health programmes. The insurance also includes work-oriented rehabilitation. Länsför-säkringar’s aim is that its employees will enjoy a good work-life bal-ance at all times.

Employees Länsförsäkringar is not one company but a federation of 23 independent and customer-owned regional insurance companies throughout Sweden that jointly own Länsförsäkringar AB. The 7,200 employees are Länsförsäkringar’s most important resource. Their specialist and professional expertise is vital to carrying out and developing the operations.

Länsförsäkringar is an attractive employerLänsförsäkringar as an employer won several awards during the year.

• First place as the most attractive insurance company and in 20th place of companies with a deep social commitment in Universum’s Company and Career Barometer.

• One of the top 100 companies in the Young Professional Attraction Index carried out by Academic Work and Kantar Sifo.

• 13th place in Randstad Employer Brand Research’s list of attrac-tiveness of Sweden’s 150 largest private companies.


Market leader with Sweden’s most satisfied customersNon-life insurance Sweden’s most satisfied customers, strong earnings with healthy growth and strong returns, and continuing focus on sustainable business sum up 2019. Premiums earned increased to SEK 27.9 billion, the com-bined ratio amounted to 96% and the market-leading position was stable with a market share of just above 30%.

Most of Länsförsäkringar’s non-life insurance business is underwrit-ten by the regional insurance companies. Some non-life insurance business lines, including pet and health insurance, is underwritten by the jointly owned Länsförsäkringar AB’s subsidiary. Of the Länsförsäk-ringar Alliance’s total premiums earned in non-life insurance of SEK 27.9 billion, SEK 21.6 billion was underwritten in the 23 regional insur-ance companies and the remainder in the Länsförsäkringar AB Group.

The non-life insurance marketPremium income for the non-life insurance market in Sweden is growing steadily and paid-in premiums reached SEK 88 billion in 2019. Premium income has risen SEK 30 billion over the past 10 years, up 52%. This increase is high but unevenly distributed between insurance lines. Premium income for accident and health insurance has almost doubled over these ten years, but fell by 8% for motor third-party lia-bility insurance. Compared with 2018, the number of insured house-holds and single-family homes increased slightly in 2019, whereas the number of insured vacation homes remained relatively unchanged. The number of passenger-car insurance policies fell slightly yet the market share for the insurance companies remained stable.

Non-life insurancePercentage of premium income*


If, 18.3%

Folksam, 16.2%

Trygg-Hansa, 14.1%

Moderna, 3.3%


Gjensidige, 1.8%

Other, 13.3%

Länsförsäkringar’s position as a leader in the non-life insurance market was stable with a share of 30.2% on 31 December 2019.

Homeowner insurancePercentage of no. of policies*


Folksam, 27.6%

If, 12.9%

Trygg-Hansa, 9.8%


Moderna, 2.1%

Gjensidige, 1.7%

Other, 0.7%

Länsförsäkringar has a leading position in homeowner insurance with a market share of 40.3% on 31 December 2019.

Commercial linesPercentage of premium income*


If, 9.9%

Trygg-Hansa, 9.1%

Telia, 3.9%


Gjensidige, 3.5%

Protector, 3.3%

Other, 20.8%

Länsförsäkringar holds a strong position in commercial lines with a market share of 45.9% on 31 December 2019.

Market share

30%Premiums earned: SEK 27,856 M

+4%Combined ratio

96%Bonuses and discounts to customers

SEK 1.9 bn

Market shares

* Source: Insurance Sweden

Distribution via digital channels is continuing to accelerate. Digital and technical advances are creating new opportunities and conditions for more easily-available information and better tailored service. These developments are driving new customer behaviour patterns and needs that require changes to the offering, distribution and pricing. Manual and work-intense processes are continuing to be simplified, made more efficient and automated, for example, through robotisation and more intelligent decision-making support. With a more refined supply of information and advanced analysis, Länsförsäkringar can target offer-ings that are tailored to customer needs and more precisely price risks.

The passenger-car market is in a state of major change. The market for new cars has grown strongly for a number of years and in 2019 the number of new car registration increased 0.7% compared with 2018, which resulted in 356,000 new registrations – the third highest ever figure. Continued developments in active safety and, in the long term, greater driver assistance will reduce the claims frequency and claims costs. Much is expected to happen to insurance needs and legislation, probably involving a shift from personal liability to producer liability. In line with car manufacturers gradually assuming responsibility for driving risks as cars contain increasing high levels of driver-assistance

Non-life insurance24 Länsförsäkringar Alliance 2019

systems, volumes are expected to shift in the long term from private motor insurance to commercial insurance and product liability insur-ance. Interest in mobility services is on the rise and a change in atti-tudes towards private car ownership can be identified. The trend is moving towards buying a transport service rather than the mode of transport. Another highly exciting development is technological advances towards more electric hybrids or all-electric cars on the market.

New technology is driving the development of smart homes and properties. This provides opportunities in the form of modernised claims-prevention services linked to water and fire damage as well as burglary that can enhance the customers’ perceived sense of security. Combined, such new technology means that the claims frequency and claims costs will decline in the long term. Digital plat-forms, smart and connected homes and connected individuals mean that great potential exists to individualise services and prevent claims. Digitisation also creates new opportunities to change the value chain for Länsförsäkringar’s customers by making insurance more relevant to people’s daily lives.

Personal-risk insurance is an insurance area that has seen strong growth in recent years. People are living longer and the number of pensioners is increasing in relation to the rest of the population. This presents the great challenge that fewer people who are able work must finance care for the elderly. Interest in sustainable health and preven-tive health services is increasing in all age groups. Rapid health care, when needed, is in more demand than before. Continued stable growth in personal-risk insurance is expected over the next few years.

Natural catastrophe claims are increasing in frequency and cost globally, but at national level these types of claims vary widely in number and cost, over the year, between years and geographically throughout Sweden. The variation of natural catastrophes leads to greater uncertainty even though claims costs are expected to increase over time. Climate risk is the area of sustainability that presents the greatest challenge for Länsförsäkringar since climate change affects all business areas and results in major socio- economic consequences.

Market positionLänsförsäkringar maintained its position as market leader in a grow-ing non-life insurance market, commanding a share of 30.2% (30.3), measured in premium income. Länsförsäkringar is a market leader in the commercial, homeowner, motor third-party liability, passenger car and other vehicle, and pet insurance lines.

Länsförsäkringar’s market share of commercial lines increased to 45.9% (45.3), measured in premium income. The market share of homeowner insurance was stable at 40.3% (40.2), measured in the number of insurance policies. The market share for household insur-ance declined slightly to 25.8% (26.1), measured in the number of insurance policies, but was unchanged compared with competitors. The market share in the motor insurance business remained stable, the market share for motor third-party liability was 39.5% (39.4) mea-sured in premium income, and the market share for passenger cars was 33.7% (34.0) measured in the number of insurance policies.

Brokered businessLänsförsäkringar Mäklarservice is Länsförsäkringar’s link to custom-ers who choose to be represented by insurance brokers. The Läns-försäkringar Alliance’s brokered non-life insurance premiums rose 12% to SEK 2,437 M (2,176). The brokered non-life insurance business accounted for 30% of the Alliance’s total non-life insurance portfolio for commercial insurance. The strategy of clearly prioritising larger brokerage companies to increase the effect on medium-sized com-panies has proven to be successful. In addition to sales efforts, Läns-försäkringar continued to develop automated services and optimised processes based on robotisation, all in a bid to aid insurance brokers’ daily contact with Länsförsäkringar.

The Länsförsäkringar Alliance’s brokered group and health businesses increased to SEK 268 M (255) during the year. In 2019, Länsförsäkringar’s health care business grew by just under 6%, with brokered contributing the most to the increase.

Motor third-party liabilityPercentage of premium income*


If, 19.5%

Folksam, 14.9%

Trygg-Hansa, 11.8%


Moderna, 4.2%

Protector, 2.5%

Other 3.3%

Länsförsäkringar’s market share of motor third-party liability insurance was 39.5% on 31 December 2019.

Passenger-car insurancePercentage of no. of policies*


If, 25.6%

Folksam, 18.8%

Trygg-Hansa, 10.2%

Moderna, 3.4%


Gjensidige, 2.0%

Other, 3.0%

Länsförsäkringar’s market share of passenger-car insurance amounted to 33.7% on 31 December 2019.

Household insurancePercentage of no. of policies*


Folksam, 46.4%

If, 11.9%

Trygg-Hansa, 9.9%

Moderna, 2.0%


ICA Försäkring, 1.3%

Other, 1.3%

Länsförsäkringar’s market share of household insurance was 25.8% on 31 December 2019.

Non-life insurance

Non-life insurance 25Länsförsäkringar Alliance 2019

MotorLänsförsäkringar offers vehicle insurance in the retail, corporate and agriculture segments.

Market positionIn 2019, Länsförsäkringar’s premium income for motor third-party liability and motor insurance rose 4%, compared with market growth of slightly more than 3%. Länsför-säkringar thus increased its total market share to 30.3% (30.0), measured in premium income. Länsförsäkringar’s premium income for motor insurance increased almost 8%, in a market that grew by just over 5%. The market share thereby rose to 27.1% (26.5). Länsförsäkringar’s premium income declined 3% in motor third-party liability insurance, which was in line with the trend in the total market, and thus held its market-leading position of 39.5% (39.4), measured in premium income. Measured in number of vehicles, Länsförsäkringar is the market leader in both passenger cars and other vehicles.

DevelopmentLänsförsäkringar assumed responsibility for brand insurance and vehicle-damage guarantees for Toyota and Lexus cars in the Swedish market, which proved to be a highly successful partnership in 2019. The customer offering was strengthened with new motor terms and conditions and improved pricing. A telematics project was also launched during the year – a user-based car insurance. An extensive survey in the haulage industry was conducted as part of claims-prevention activities.

HomeLänsförsäkringar offers home insurance for single-family homes, apartments and vacation homes.

Market positionLänsförsäkringar remained a market leader in home insurance in 2019, with a market share of 30.6% (30.7), measured in premium income. Länsförsäkringar’s premium income in home insurance increased by 5% in 2019. Measured in the number of insurance policies, Länsförsäkringar’s market-leading position increased slightly - in homeowner insurance, Länsförsäkringar’s market share was 40.3% (40.2), while the market share for vacation home insurance amounted to 41.1% (40.9). In household insurance, Länsförsäkringar had a market share of 25.8% (26.1), measured in the number of insurance policies.

DevelopmentLänsförsäkringar is focusing on develop-ments in digitisation, innovation and improved customer processes. Länsförsäk-ringar sees that it will be easier to manage claims adjustment digitally in the future, if the customer prefers, using artificial intel-ligence and robotisation. Länsförsäkringar is also working to enhance its advisory ser-vices and offer more preventive services. For example, Länsförsäkringar sees rising need for advice on Internet fraud.

YachtLänsförsäkringar offers yacht insurance.

Market positionLänsförsäkringar maintained its position as market leader in 2019, with a market share of 32.5% (32.4), measured in the number of insurance policies. The closest competitor Moderna Försäkringar (Atlantica) had a market share of 18.9% measured in the number of insurance policies.

DevelopmentThe temperature and weather conditions of summer of 2019 were more normal than the extremely hot summer of 2018, which resulted in fewer claims during the year, from 3,100 claims in 2018 to 2,350 claims in 2019.

2019 2018

Premiums earned, gross, SEK M 5,572 5,322

Household, no. of policies 865,000 859,000

Market share, no. of households, % 25.8 26.1

Homeowner + home content, no. of policies 711,000 705,000

Market share, no. of homeowner + home content, % 40.3 40.2

Vacation homes, no. of policies 237,000 237,000

Market share, no. of vacation homes, % 41.1 40.9

2019 2018

Premiums earned, gross, SEK M 166 165

Yachts, no. of policies 89,000 90,000

Market share, no. of policies, % 32.5 32.4

2019 2018


Passenger cars, no. of policies 1,722,000 1,724,000

Market share, no. of passenger cars, % 33.7 34.0

Other vehicles, no. of policies 1,482,000 1,453,000

Market share, no. of other vehicles, % 48.6 48.5

Motor

Home

Yacht

Non-life insurance


CommercialLänsförsäkringar offers commercial insurance for all industries, from large to small companies.

Market positionPremium income for the total market for commercial lines, including agricultural cus-tomers, grew 3.4% in 2019. Länsförsäkringar’s premium income in commercial lines, includ-ing agricultural customers, rose 4.8%. Läns-försäkringar thus maintained its position as market leader in the commercial market, with a share of 45.9% (45.3), measured in premium income.

DevelopmentAt the end of 2018, Länsförsäkringar launched data protection insurance that provides solid cover for small and medium-sized businesses in the event of a data breach. Many companies took out this policy in 2019 and it was a pop-ular supplement to existing insurance cover. The Insurance for Drones policy was launched in 2019 to meet market demand for the stat-utory insurance required for commercially operated drones.

Many companies offer commercial insur-ance, and in general intense competition is continuing. A tendency was noted in the bro-ker market for commercial insurance that the larger brokers are taking an increasing number of business initiatives.

Through the International Network of Insurance, Länsförsäkringar is one of the few companies in the Swedish market that can offer customised and local insurance solutions in more than 100 countries at competitive prices.

AgricultureLänsförsäkringar offers insurance for com-panies in “green businesses” – agriculture and forestry, horse farms and greenhouse companies. Customers living on an agricul-tural property but not conducting any or only small-scale business activities are offered Farm insurance.

Market positionLänsförsäkringar has a market-leading position in agricultural insurance. Premiums earned in the agriculture business increased 3.8% or SEK 71 M in 2019.

DevelopmentLänsförsäkringar holds a large market share, which entails a responsibility to develop the customer offering according to the customer group’s security needs. Few players offer agricultural insurance. Dina Försäkringar is the sole main competitor after Gjensidige discontinued its agriculture business in Sweden. Länsförsäkringar launched new agricultural insurance terms and conditions in 2019 as part of its work to adapt terms to customer needs. It is also possible to supple-ment agricultural insurance with data pro-tection insurance to cover data breaches.

Agria DjurförsäkringLänsförsäkringar offers pet and crop insurance through Agria.

Market positionAgria is the market-leader in pet insurance in Sweden, Norway and Denmark. The pet business line in Sweden reported strong growth in mainly cat insurance, but also in insurance for small animals. The number of horse insurance policies in Sweden is the highest for ten years and the operations in Norway, Denmark and the UK continued to grow strongly. Brexit will affect the business conditions for Agria’s operations in the UK, but preparations are being made. Agria established operations in France in 2018, meaning that Agria is now represented in five countries outside Sweden.

DevelopmentAgria has a strong concept with the clear strategy of growing internationally. The six countries all have different challenges, but many similarities as well, and this is where value of economies of scale, greater risk diversification and access to international know-how strengthen the business. One of Agria’s priority areas is the development of digital channels to enhance the customer experience of meeting Agria and to develop targets sales and more efficient operations. Agria’s new visual identity was updated on the websites in all countries and in the Agria app in 2019 to provide more useful informa-tion to customers. Research into animal health is supported through Agria’s research fund. Agria’s extensive claims statistics are used by researchers and breed clubs to improve animal health and sustainability.

2019 2018


No. of policies 245,000 242,000

Market share, premium income commercial lines, % 45.9 45.3

2019 2018


Agricultural insurance, no. of policies 191,000 190,000

Tractor insurance, no. of policies 283,000 283,000

2019 2018


Non-life insurance

Commercial Agriculture

Agria Djurförsäkring


2019 2018


Market share, accident and health insurance, premium income, % 19.2 19.4

2019 2018

Premiums earned, gross, SEK M 625 570

No. of insured parties 324,000 313,000

HealthLänsförsäkringar offers life-assurance, health care, accident and health insurance.

Market positionLänsförsäkringar’s market share was stable at about 20%. Factors impacting the market for personal-risk insurance are the continu-ing concern that social insurance in Sweden will be insufficient, and greater household debt. Personal-risk insurance provides an important supplement for increasing finan-cial security in the event of illness, accident, unemployment and death. Company owners also want to ensure that neither they nor their employees go on long periods of sick leave and health care insurance can thus provide greater security and keep a busi-ness’s employees healthier. The fringe- benefit tax on health care insurance paid by employers that was introduced on 1 July 2018 had less of a negative impact than expected.

DevelopmentThe former full-service offering in health care insurance was expanded during the year and now comprises three components: health care insurance, health care insurance Basic and preventive and rehab insurance. Länsförsäkringar works continuously on developing data-driven marketing, and digi-tal sales performed positively in 2019. Läns-försäkringar believes that it should be easy to find the right insurance cover that matches customer needs, to make use of the policy and to receive service via digital channels.

Children’s insuranceLänsförsäkringar offers both pregnancy and children’s insurance.

Market positionLänsförsäkringar’s premiums earned in children’s insurance increased 9.6% to SEK 625 M in 2019. The number of policies increased 3.5% to a total of 324,000 children’s insurance policies.

DevelopmentSecuring the customer at a young age is vital for building up a long-term relationship in private personal insurance. Children’s insurance continued to perform well and the increase in the number of policies was posi-tive. Länsförsäkringar also offers effective insurance cover for children after they have reached the age limit for children’s insurance.

ReinsuranceLänsförsäkringar AB’s subsidiary Länsför-säkringar Sak manages the Länsförsäkringar Alliance’s joint reinsurance cover and internal Alliance reinsurance via a number of pool solutions. The internal reinsurance and the reinsurance jointly procured for the Läns-försäkringar Alliance is a major asset for Länsförsäkringar and its customers. The system ensures a stable solution at low cost by distributing risk within the Länsförsäk-ringar Alliance and procuring external cover for large claims. The Länsförsäkringar Alli-ance’s internal reinsurance, to which Läns-försäkringar Sak contributes a 15% share of assumed reinsurance, was impacted by increased claims costs, mainly caused by storm Alfrida that impacted parts of eastern Sweden in January and a higher number of larger fire-damage claims.

Länsförsäkringar Sak also underwrites a highly diversified portfolio in internationally assumed reinsurance, both risk and cata-strophe business, specialising in property business. The long established strategy is to underwrite business from mutual companies with broad geographic risk diversification.

Non-life insurance

Health

Children’s insurance


Claims adjustmentEach regional insurance company offers a comprehensive range of non-life insurance products to its retail, commercial and agri-cultural customers, with claims adjustment taking place locally, close to customers. Tying together local presence with shared expertise results in first-rate customer service for all types of claim incidents. On occasion, a single regional insurance company experiences a high number of claims in a short space of time, for example, in the event of natural catastrophes. The joint work method allows the regional insurance companies, from north to south, to work together and help each other at short notice. A total of 900 people in the Länsförsäkringar Alliance work in the area of claims adjustment and an interna-tional network of partners also provides service outside Sweden.

Claims adjustment entails the delivery of the product purchased by the customer and should be quick, secure, be carried out in a highly skilled manner and provide the correct compensation. Rapid digital devel-opments combined with fierce competition mean that Länsförsäkringar must continu-ously develop and adapt its processes, insurance terms and conditions and service to meet customer expectations when a claim arises.

Major claims Major claims require special resources. Länsförsäkringar has prepared a contin-gency plan for managing large claims, and the regional insurance companies also

continuously monitor the risks in their local areas. The primary purpose of the contin-gency plan is to establish a state of pre-paredness within the individual regional insurance companies, and also to coordi-nate available resources. Consequently, the regional insurance companies are well-equipped and prepared for any major claim that may occur. A number of larger property and company fires occurred in 2019.

Natural catastrophes Claim costs for natural catastrophes in 2019 were mainly caused by hurricanes, thunder-storms and torrential rain, followed by flood-ing, but 2019 had fewer natural catastrophes than 2018 and was at an average level based on a 10-year perspective. Total expenses for natural catastrophes amounted to SEK 681 M in 2019, compared with SEK 739 M in 2018. The annual average cost for natural catastro-phes was SEK 430 M for 2015-2017. Storm Alfrida hit eastern parts of Sweden in Janu-ary, mainly causing damage to forests and buildings. Southern Sweden experienced intense hailstorms in June, which led to a high number of claims in crop insurance.

Claims prevention Claims prevention is a key element of the regional insurance companies’ sustainability efforts and avoiding claims is always a benefit for the environment. A number of activities were carried out in 2019.

One example is Länsförsäkringar’s work on increasing security in everyday life, which is a central issue for many customers. A spe-cial focus group within Länsförsäkringar coordinates and carries out measures to reduce crime and increase security, concen-trating specifically on intrusion protection, children and young people socially excluded or involved in crime, vulnerable housing areas and social media and insecurity. The regional insurance companies are engaged locally in several initiatives on security in society, for example, by supporting youth activities.

Service outside SwedenCustomer needs are also met outside Sweden and the claims-adjustment service has been expanded to provide rapid assistance abroad, for both indi-vidual claims and more large-scale events. For emergency claims, special resources are required. The Länsförsäkringar Alliance is one of the largest shareholders of SOS Interna-tional, which assists customers through both travel and vehicle insurance. Help is provided for medical assistance and trans-portation when customers sud-denly fall seriously ill or are involved in an accident while abroad, and for other types of events, such as delayed bag-gage. The customers of the regional insurance companies can also receive help with obtaining an advance medical assessment before travel abroad. For motor insurance claims abroad, help is provided in the form of, for example, breakdown services, referrals to car repair garages and trans-portation. SOS International processes 19,000 international cases for the regional insurance companies every year.

Non-life insurance

NumberClaims costs,

SEK M1)

Private motor 406,342 3420

Commercial motor 115,004 1,572

Home 341,332 3,223

Yacht 2,770 78

Commercial 43,474 2,824

Agriculture 31,565 1,114

Accident and health 54,595 474

Total 995,082 12,705

1) Compensation paid for claims that occurred in 2019.

Claims


Comments on financial results, Non-life Insurance

Earnings and profitabilityEarnings from the Länsförsäkringar Alliance’s non-life insurance operations consist of the total earnings of the 23 regional insurance companies and the non-life insurance operations of the Länsförsäk-ringar AB Group.

Operating profit for the Länsförsäkringar Alliance’s non-life insur-ance operations increased to SEK 12,001 M (2,243), due to both healthy premium growth and strong investment income. Stock markets developed very well in 2019, which strongly contributed to investment income amounting to SEK 13,199 M (1,771). Based on 2019 earnings, the regional insurance companies will pay back a total of SEK 1,893 M (825) in bonuses and discounts to their owners – the customers.

The technical result rose to SEK 1,824 M (1,778), due to healthy premium growth and lower claims costs in the fourth quarter. How-ever, the claims ratio for the full-year rose to 76.7% (76.4), mainly caused by fire damage and natural catastrophe claims. The expense ratio was 19.6% (19.5), resulting in a combined ratio of 96.3% (95.9). Measured as a five-year average, the combined ratio and the claims ratio remained stable at 94% and 75%, respectively.

Solvency capital increased SEK 13,624 M during the year, amounting to SEK 82,096 M on 31 December 2019. The solvency margin amounted to 288% (252).

Business volumesPremiums earned after ceded reinsurance increased slightly more than 4% to SEK 27,856 M (26,751). The increase was attributable to both premium increases and portfolio growth.

Premiums earned for private insurance increased 4%, with growth continuing to be driven by household, homeowner and accident insurance. Agria’s healthy growth continued, due to both premium increases and portfolio growth, particularly in its international business lines.

Premiums earned in the commercial segment rose by more than 5%, primarily driven by healthy growth in commercial property, commercial insurance and liability insurance.

Premiums earned in the motor insurance segment increased 4%, mainly due to portfolio growth. On 1 January 2019, Länsförsäkringar assumed responsibility for brand insurance and vehicle-damage

Non-life insurance

Allocation of investment assets

Equities, 44.6%

Interest-bearing, 27.1%

Property, 7.6%

Other, 20.7%

Total investment assets amounted to SEK 120.6 billion on 31 December 2019.

Technical resultSEK M

0

500

1 000

1 500

2 000

2 500

3 000

20192018201720162015

2019 2018 2017 2016 2015


Technical result before bonuses, SEK M 1,824 1,778 2,529 1,813 2,700


Expense ratio, % 20 19 18 20 19

Claims ratio, % 77 76 74 75 72

Combined ratio, % 96 96 92 95 91

Technical result as a percentage of premiums earned after ceded reinsurance 7 7 10 8 12

Solvency capital, SEK M 82,096 68,472 66,149 57,956 51,628

Solvency margin, % 288 252 253 236 222


Non-life insurance

Solvency II ratio on 31 December 2019

%

0

50

100

150

200

250

300

23 regional insurance companies

The regional insurance companies and Länsförsäkringar Sak remained very well capitalised in 2019. The regional insurance companies measure the capital requirement according to the Solvency II rules using the standard formula, and Länsförsäkringar Sak using a partial internal model approved by the Swedish Financial Supervisory Authority.

Länsförsäkringar Sak


guarantees for Toyota and Lexus cars in the Swedish market. This part-nership was highly successful in 2019, contributing to robust growth.

Premiums earned in the agriculture segment rose by just under 4%.

Claims trendClaims payments after ceded reinsurance increased by almost 5% to SEK 21,142 M (20,192) and the claims ratio rose slightly to 76.7% (76.4). In the first half of 2019 claims costs increased mainly due to fires, including several cases of larger fire damages, and natural catastro-phes. Claim costs for natural catastrophes in 2019 were mainly caused by hurricanes, thunderstorms and torrential rain, followed by flood-ing, but 2019 had fewer natural catastrophes than 2018 and was at an average level based on a 10-year perspective. Storm Alfrida hit east-ern parts of Sweden in January, mainly causing damage to forests and buildings. Southern Sweden experienced intense hailstorms in June, which led to a high number of claims in crop insurance. There were fewer claims in the second half of 2019, especially in the fourth quarter. The claims ratio for the second half of the year fell to 73.4% from 80.0% in the first six months.

In private insurance, claims costs increased by just under 5% in 2019. Claims costs in homeowner insurance had the highest increase, mainly due to fire- and water-damage claims.

In the commercial segment, claims costs increased by slightly more than 5%, with fires causing more than 50% of claims costs.

In the agriculture segment, claims costs rose by just under 4%, mainly caused by fires and crop destruction, particularly after the intense hailstorms in southern Sweden in the spring. Also, attacks of bark beetle caused damage to Swedish forests in 2019.

Investment incomeThe Länsförsäkringar Alliance reported strong investment income in 2019, primarily due to rising stock markets in Sweden and globally. Increases in the value of property investments, mainly from holdings in Humlegården*, also made a positive contribution. Investment income rose to SEK 13,199 M (1,771), a return of 13.4% of the asset value on 31 December 2019.

* Humlegården Fastigheter AB is a property company owned by the 23 regional insurance companies, Länsförsäkringar Sak, Länsförsäkringar Fondliv and Länsförsäkringar Liv.

Non-life insurance


Economic environment and market After several years of strong economic growth, the global economy grew at a weaker rate in 2019. The US reported stable GDP growth, while Europe and several developing countries noted a clear slowdown. Softening growth was mainly due to the downturn in the manufactur-ing industry and uncertainty caused by the US-China trade conflict.

The US central bank, the Fed, altered the direction of its monetary policy and cut interest rates three times consecutively during the year despite unemployment continuing to fall. This was a powerful move and a swift reaction to the slowdown in industry and the uncer-tainty surrounding the trade conflict. This expansive monetary policy, combined with an improved risk profile and a strong labour market, will provide a stable platform for growth in 2020.

Europe was the region hardest hit by the industrial slowdown and growth is expected to remain low in 2020. The positive performance of the services sector and the strong labour market indicate that the region will avoid a recession. The European Central Bank, ECB, reacted by making another cut to the deposit facility rate and launching a

new asset purchase programme, among other measures. In communi-cating these new measures, the ECB was clear in saying that the pro-gramme would continue until shortly before key interest rates are raised, when inflation and the inflation outlook have stabilised at target levels. This suggests an extended period of low interest rates and monetary stimulus packages.

GDP growth in China slowed, although the economy otherwise generally performed well. The increasingly important private con-sumption is growing faster than the total economy, supported by a stable labour market and an expansive monetary policy. However, growth is becoming ever more dependent on fiscal and monetary policy stimuli.

In Sweden, the economic slowdown was more marked than antic-ipated. GDP growth fell in 2019 and this trend is expected to continue in 2020. The Riksbank went against the tide by raising its repo rate in December in spite of rising unemployment and falling inflation expec-tations. Despite this raise, the repo rate remains at a historically low level of 0.0%. As it lifted the rate, the Riksbank signalled that it may

GDP growth*%

-8

-6

-4

-2

0

2

4

6

8

09 10 11 12 13 14 15 16 17 18 19

Sweden

US

Germany

Eurozone

GDP growth in Sweden was weaker during the year, similar to the rest of Europe.

Housing-price trend*Index 2005-01 = 100

100

150

200

250

300

06 07 08 09 10 11 12 13 14 15 16 17 18 19

Housing prices

Tenant-owned apartments

The Swedish housing market continued to stabilise and housing prices rose again during the year.

Inflation*%

-2

-1

0

1

2

3

4

5

0203040506 0708 09 10 11 12 13 14 15 16 17 18 19

Sweden

US

Eurozone

The economic slowdown led to lower inflation during the year.

The bank with Sweden’s most satisfied customersBank Länsförsäkringar Bank is a customer-owned bank with a strong local presence. With its close customer relationships through local meetings and competitive digital services, Länsförsäkringar Bank is the player on the banking market with the most satisfied retail and corporate customers.

Business volumes: SEK 656 billion

+17%Primary bank customers who are also insurance customers

91%Number of primary bank customers: 553,000

+9%

Single-family homes

* Source: Macrobond

Bank32 Länsförsäkringar Alliance 2019

not touch the rate for a long time. Low interest rates and a relatively healthy trend in household disposable income contributed to a stable upswing in housing prices. According to Valueguard, housing prices increased 4.5% in 2019.

The performance of the financial markets was generally favour-able in 2019, although some uncertainty did appear. It was a strong year for risk-exposed assets, global stock markets rose sharply and the Stockholm Stock Exchange ended the year up slightly more than 31% including dividends. The fixed-income market generated uncer-tainty with an inverted US yield curve since such an inversion has often appeared as a precursor to past recessions. However, market optimism increased following the Fed and the ECB’s monetary policy U-turns and a gradually more positive tone to the trade conflict. This led to falling expectations regarding future higher key interest rates, which was reflected in lower government bond rates. The expansive monetary policy also resulted in a positive trend in credit spreads, including Swedish covered bonds.

Regulatory developmentThe development of new financial regulations is expected to continue at a rapid pace and will continue to have a major impact on banks. In 2019, the EU decided on the “Banking Package.” The measures in the Banking Package are to aid the implementation of risk-reduction global standards at EU level and are also part of completing the Banking Union, and are expected to come into effect in 2020/2021. In December 2019, the Banking Package Inquiry published its pro-posals on the legislative changes required to adapt Swedish law to the new EU rules.

The work on completing the Basel III regulations continued in 2019. The European Commission published a proposal in 2019 on how to implement these final reforms. The views in response to this pro-posal will be important to the European Commission in preparing a concrete legal proposal that is expected in 2020. The proposal rules entail major changes for banks and include changes to the Stan-dardised Approach for both credit and operational risk as well as the introduction of a capital floor of 72.5%. The capital floor entails that

the risk-weighted assets for a bank that applied internal models may not, in total, be lower than 72.5% of the risk-weighted amount calcu-lated according to the Standardised Approach. The new rules are expected to take effect in 2022.

The European Banking Authority (EBA) also deferred the imple-mentation of certain new requirements for internal models in the review of the IRB regulatory framework. The new standards will be introduced not later than 2021.

Strategy and goalsLänsförsäkringar Bank was founded in 1996 and is now the fifth largest retail bank in Sweden with a business volume of SEK 656 billion. The banking operations are conducted only in Sweden and the market position is continuing to steadily strengthen.

The strategy is to offer banking services to the Länsförsäkringar Alliance’s customers and leverage Länsförsäkringar’s strong brand and local presence. The banking operations have a large potential customer base with the Länsförsäkringar Alliance’s 3.9 million cus-tomers. The main target groups are the 3.2 million retail customers, of whom 2.4 million are home-insurance customers. Other target groups are agricultural customers and small businesses. The aim is, based on sustained low risk, to maintain healthy growth in volumes and profitability, have the most satisfied customers and more cus-tomers who have both banking and insurance with Länsförsäkringar.

According to the 2019 Swedish Quality Index customer satis-faction survey, Länsförsäkringar Bank is the player on the banking market with the most satisfied retail customers, an accolade that Länsförsäkringar Bank has won 14 times in the past 16 years. Läns-försäkringar Bank is also the player with the most satisfied corporate customers and one of the leading players in terms of customer satis-faction for retail mortgage customers, according to the 2019 Swedish Quality Index. The high customer satisfaction is confirmation of Länsförsäkringar’s clear customer focus and high quality. With Läns-försäkringar’s comprehensive banking and insurance offering, cus-tomers receive a total solution that creates security and added value.

Bank

Bank 33Länsförsäkringar Alliance 2019

Bank

Offering

SavingsLänsförsäkringar focuses on providing customers with a secure place for their savings. Customers are offered savings through vari-ous types of deposit accounts and also through such products as mutual fund savings, Investment Savings Accounts (ISK) and equi-ties savings. Customer meetings strive to ensure that customers have secure private finances in which savings and mortgage repay-ments are key elements. By making mortgage repayments, a cus-tomers’ private finances can become more balanced over time.

DepositsGrowth in deposits from the public has been stable in recent years and rose 10% to SEK 119 billion in 2019. The market share for house-hold deposits was 5.1% and the number of deposit accounts increased 8%. The Investment Savings Account (ISK) displayed healthy growth during the year and the number of ISKs at year-end was 351,000, up 17%.

Fund managementSweden’s fund market continued to grow in 2019. Länsförsäkringar Fondförvaltning commands a market share measured in fund assets of 4.0%. At the start of the year global fund analyst Morningstar named Länsförsäkringar Fondförvaltning Best Overall Fund House Sweden 2019. This was the first time that a Swedish fund company won this award. The fund offering comprises 38 mutual funds under Länsförsäkringar’s own brand with various investment orientations and a fund platform with external funds. Two new funds were started during the year, Länsförsäkringar Balanserad Räntefond and Läns-försäkringar Hållbar Företagsobligation. The position in sustainability was also advanced during the year, for example, the decision was made to divest all holdings of tobacco manufacturers and the criteria for investments in fossil companies were tightened. The fund volume increased 40% to SEK 230 billion during the year, of which managed funds under own brands amounted to SEK 203 billion. 90% of Läns-försäkringar’s funds managed under own brand performed better than their benchmark index in 2019.

Loans The bank’s lending continues to grow steadily and maintains low risk. Lending rose 6% to SEK 307 billion in 2019. The largest product is retail mortgages, which comprises 78% of the loan portfolio. Retail mortgages are mostly granted by Länsförsäkringar Hypotek, which offers mortgages up to 75% of the market value. Any surplus mort-gage portions are offered by Länsförsäkringar Bank. Loans to tenant-owners’ associations and to multi-family housing are offered in addition to mortgages. The market share for mortgages amounted to 7.0%. In 2014, Länsförsäkringar Bank was the first Swedish bank to licence all of its mortgage application processors. Such licensing exams, which are based on the proficiency requirements of the EU Mortgage Credit Directive, create greater security for customers.

Loans by product

Mortgages, 78.3%

Agricultural loans, 9.7%

Unsecured loans, 2.9%

Leasing, 2.5%

Hire purchase, 3.4%

Multi-family housing, 2.4%

Other, 0.8%

The loan portfolio primarily comprises retail mortgages.

Länsförsäkringar Bank is one of the largest players in agricultural lending in Sweden and primarily targets family-owned agricultural operations that are insurance customers with Länsförsäkringar. The average agricultural loan commitment is small and the percentage of first-lien mortgages is 96%.

Wasa Kredit offers leasing, hire purchase and unsecured loans and the company reported a favourable performance for the year. Lending increased 7% to SEK 24 billion.

Market shares

Retail depositsSource: Statistics Sweden

The market position in retail deposits amounted to 5.1%.

Länsförsäkringar, 5.1% Swedbank, 19.6% Handelsbanken, 18.6% Nordea, 12.9% SEB, 11.6% SBAB, 4.7% Danske Bank, 1.9% Other, 25.6%

Funds managed under Länsförsäkringar’s own brandSource: Moneymate

Länsförsäkringar holds a 4.0% market share of Swedish fund volumes.

Länsförsäkringar, 4.0% Swedbank Robur, 20.1% SPP Fonder, 11.3% Handelsbanken, 11.2% SEB, 10.6% SPP, 4.7% AMF Fonder, 3.0% Skandia Fonder, 2.1% Other, 33%

Retail mortgagesSource: Statistics Sweden

The market position in retail mortgages amounted to 7.0%.

Länsförsäkringar, 7.0% Swedbank, 23.8% Handelsbanken, 22.2% SEB, 13.8% Nordea, 13.6% SBAB, 8.5% Danske Bank, 3.7% Other, 7.4%


Payments and bank cardsBank cards are continuously developed to offer customers security and a high level of service in their payment services. The number of bank cards increased 9% to 783,000 and the number of card-pay-ment transactions rose 10% to 193 million. The Swish payment ser-vice performed well during the year. Länsförsäkringar Bank, which is one of the drivers of the Swish partnership, owns 10% of the com-pany that manages and develops the service.

Corporate segmentDeposits in the corporate segment continued to grow and deposits from businesses amounted to SEK 12.6 billion on 31 December 2019. Growth in payment services included in the corporate offering was

also healthy during the year. According to the 2019 Swedish Quality Index, Länsförsäkringar Bank is the player on the banking market with Sweden’s most satisfied corporate customers.

Offering to young peopleLänsförsäkringar Bank has one of the market’s most attractive offers for young people that includes a card and payment service, a young person’s account with a bank card, Internet and telephone banking and digital services. Digital services make everyday life easy and Swish is the first choice for sending and receiving money by mobile phone. More digital services can be added from the age of 16, for example, making payments and linking more pay services to the card.

Bank

Business volumes and net interest income SEK bn SEK M

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201920182017201620150

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4 000

5 000

6 000

7 000

Mutual funds Deposits Mortgages

Agricultural loans Other loans

Net interest income, SEK M

Bank cards and card-payment transactionsCards, thousands Transactions, millions

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800

201920182017201620150

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Cards, thousands Transactions, millions

Customer satisfaction, retail customersIndex

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80

Source: Swedish Quality Index

Länsförsäkringar Bank

IndustryNordea

Handelsbanken SwedbankSEB

Länsförsäkringar Bank is the player on the banking market with the most satisfied retail customers according to the 2019 Swedish Quality Index.

The number of bank cards and card-payment transactions has risen steadily over the past five years.

Total business volumes have increased an average of 12% over the past five years. Net interest income has risen an average of 14%.


Bank

Loans and credit quality

Credit processLänsförsäkringar Bank’s loans are granted in Sweden and in SEK. Lending to both retail and corporate customers is well distributed geographically, with low average loan commitments per customer. Lending is primarily directed towards retail mortgages for private individuals, small-scale family-owned agricultural operations with a low risk level and finance-company products. Loans are based on standardised credit regulations and most credit decisions are made locally. In the business model between Länsförsäkringar Bank and the regional insurance companies, there is a strong incentive to maintain high credit quality. The high credit quality of the loan port-folio is the result of the low risk appetite, credit regulations com-bined with credit scoring and local customer and market knowledge. The credit regulations impose strict requirements on customers’ repayment capacity and the quality of collateral. In connection with the credit scoring, the repayment capacity of borrowers is tested using “left to live on” calculations. These calculations apply a higher interest rate than the actual rate. Both the loan portfolio and value of the collateral are continuously monitored and quality assured. Distribution and sales of finance-company products and credit deci-sions on these products mainly take place through Wasa Kredit’s own channels.

Mortgages for private individualsIt is essential for Länsförsäkringar Bank to continue to maintain high credit quality. Mortgage repayments are a key tool in ensuring that households have stable and secure finances. The stricter repayment requirements for customers with debt ratios of more than 450% were implemented in March 2018. These stricter requirements sup-plement the original repayment requirement from 2016. Länsförsäk-ringar also encourages customers that do not fall under the repay-ment requirements to make repayments on their mortgage.

Loans to the public rose 6% to SEK 307 billion. Retail mortgages for private individuals’ housing comprise 78% of the loan portfolio. First-lien mortgages, meaning loans with a loan-to-value ratio (LTV) of up to 75%, account for 96% of retail mortgages. A total of 72% of the collateral for retail mortgages comprises single-family homes. The average loan commitment is low at SEK 1.3 M per borrower. 53% of borrowers have a commitment of less than SEK 2 M. The geographic spread of lending is diverse, thus resulting in low concen tration risk.

The weighted average loan-to-value ratio for mortgage lending amounted to 61%. Market-value analyses of the collateral in retail mortgages are performed continuously and a market-value update is performed at least once per year for all single-family homes and tenant-owned apartments.

First-lien mortgages for agricultural operationsA total of 96% of agricultural loans, representing 10% of the loan portfolio, comprises first-lien mortgages. The remaining lending comprises second-lien mortgages and operating credits. Family- owned agricultural operations account for 98% of agricultural loans. The average commitment is low at SEK 2.3 M per borrower. Agricul-tural lending grew at a lower rate than other loans during the year.

Leasing, hire purchase and unsecured loansWasa Kredit is the Bank Group’s finance company that offers leasing and hire purchase financing through both partners in such areas as vehicles, computer/office and machinery, and directly to corporate customers. Wasa Kredit also offers loans and credit card loans to private individuals. The leasing and hire purchase products jointly represent 6% of the Group’s loan portfolio. In addition, unsecured loans make up a further 3% of the loan portfolio.

Credit quality and credit lossesThe high credit quality of the loan portfolio is a result of lending being based on a low risk tolerance. A condition for full payment of the regional insurance companies’ distribution remuneration by the Bank Group (excluding Wasa Kredit AB) is that the loans generated by each company for the Bank Group are of high quality. If this is not the case, up to 80% of any credit losses is off-set against the accrued remu-neration to the regional insurance companies. This settlement account is kept separate and is taken into consideration when the provisions are established.

Credit losses in the Bank Group remained low and were almost exclusively attributable to Wasa Kredit. Credit losses amounted to SEK 207 M (95), net, corresponding to a credit loss level of 0.06% (0.04). The increase in credit losses in Wasa Kredit was a combined effect of growing volumes and the impact of IFRS 9.

Credit-impaired loan receivables (stage 3) before provisions amounted to SEK 932 M (742), corresponding to a share of credit- impaired loan receivables of 0.20% (0.17). The loss allowance for credit- impaired loan receivables was SEK 332 M (242). The reserve ratio for credit -impaired loan receivables amounted to 34.6% (32.6). In addition, SEK 52 M (33) of the remuneration to the regional insur-ance companies for credit-impaired loan receivables is withheld. Including the withheld remuneration to the regional insurance com-panies, the loss allowance for credit-impaired loan receivables totalled SEK 374 M (275). The reserve ratio for credit-impaired loan receivables, including withheld remuneration to the regional insur-ance companies, amounted to 40.2% (37.0).


Funding and liquidity

Funding operations The aim of the funding operations is to ensure that the Group has a sufficiently strong liquidity reserve to manage turbulent periods in capital markets, when funding opportunities are limited or prevailing circumstances render funding impossible. The Group’s liquidity risk is controlled on the basis of a survival horizon, meaning how long all known cash flows can be met without access to financing in the capi-tal market.

Financing sourcesThe composition of financing is a result of the bank being a retail bank with large mortgage lending operations. Accordingly, the main financing sources are deposits in Länsförsäkringar Bank and funding based on the covered bonds issued by Länsförsäkringar Hypotek. These covered bonds have the highest credit ratings, Aaa from Moody’s and AAA/Stable from S&P Global Ratings. Long-term senior funding and short-term funding takes place in Länsförsäkringar Bank. The Group endeavours to maintain a sound balance of covered and senior unse-cured funding and all capital market funding is conducted under a number of funding programmes. The single most important source of financing is the Swedish covered bond market, where Länsförsäkringar Hypotek has a number of outstanding liquid benchmark bonds. At year-end, Länsförsäkringar Hypotek had seven outstanding bench-mark loans with maturities until 2026. The Swedish covered bond market is one of Europe’s largest and most liquid, which secures good access to long-term financing.

DiversificationSince all lending is in SEK, the Group has no structural need for financing in foreign currency. However, the bank has chosen to con-duct a certain portion of its capital market funding in international markets in an effort to diversify and broaden the investor base. Fund-ing has continuously taken place through issuance of Euro bench-

mark covered bonds. Länsförsäkringar Bank has issued two senior unsecured Euro benchmark bonds since September 2017, which is another step in increasing funding diversification and strengthening the brand in both the Swedish and European capital markets. This move establishes Länsförsäkringar Bank as a regular issuer also on the market for senior debt in EUR. In addition, diversification takes place through issuances of bonds, primarily in the currencies of CHF, NOK, GBP and USD. The international markets were primarily used for long maturities.

Refinancing and liquidity risk management The Bank Group works pro-actively with its outstanding liabilities by repurchasing bonds with short remaining terms against issuance of long-term liabilities as a means of managing and minimising the liquidity and refinancing risk. The market risks that arise in the lending and funding operations are managed through derivative instruments.

DepositsThe share of deposits in the Group’s total financing amounted to 32% on 31 December 2019. Deposits increased by 10% during the year, strengthened as a result of the bank’s healthy customer growth.

Funding activities 2019A relatively large portion of the funding took place during the first six months of 2019 when there was high demand in the market.

In January, Länsförsäkringar Hypotek issued a seven-year Euro benchmark covered bond for a nominal EUR 500 M. Länsförsäkringar Bank issued its inaugural senior non-preferred bond in September through a five-year bond with a nominal amount of SEK 2.5 billion. In addition, Länsförsäkringar Hypotek issued a Swedish benchmark bond (LFH519) during the year, which matures in September 2026. The average remaining term for the long-term financing is 2.3 years for senior unsecured bonds and 3.5 years for covered bonds.

Financing sources

Covered bonds, 49.6%

Deposits, 32.5%

Senior unsecured bonds, 10.0%

Equity, 5.0%

Commercial papers, 0.4%

Due to credit institutions, 1.8%

Subordinated debt, 0.7%

The largest source of financing in the Group is covered bonds.

Funding by currency

SEK, 76%

EUR, 20%

CHF, 2%

NOK, 1%

GBP, 0.5%

USD 0.5%

Funding programmes primarily takes place in the Swedish market and in SEK.

Maturity profileSEK bn

0

10

20

30

40

50

20272026202520242023202220212020

Covered bonds

Senior unsecured

Senior non-preferred

Commercial papers

Bank


LiquidityEffective long-term planning and low risk tolerance are the hall-marks of the bank’s liquidity and funding management. A satisfactory liquidity reserve is in place to ensure that sufficient liquidity is always available. The management and investment of the liquidity reserve are conservative.

The liquidity reserve amounted to SEK 60 billion at 31 December 2019. The liquidity reserve is invested in securities with very high credit quality and that are eligible for transactions with the Riksbank and, where applicable, with the ECB. A total of 49% of the liquidity reserve comprises Swedish covered bonds, 16% deposits with the Swedish National Debt Office and Riksbank, 15% Swedish government bonds, 8% bonds issued or guaranteed by European governments and multinational development banks, 7% other Swedish bonds with an AAA/Aaa credit rating, 4% Nordic AAA/Aaa-rated covered bonds and 1% other liquid assets. Slightly more than SEK 2,700 M of the liquidity reserve comprises green bonds. By utilising the liquidity reserve, contractual undertakings can be met for more than two years without needing to secure new funding in the capital market.

The Liquidity Coverage Ratio (LCR) for the consolidated situation on 31 December 2019 amounted to 295% (305). The Net Stable Funding Ratio (NSFR) for the consolidated situation amounted to 131%* (130) on 31 December 2019.

RatingLänsförsäkringar Bank’s long-term credit rating is A1/Stable from Moody’s and A/Stable from S&P Global Ratings. The short-term credit ratings are A–1 from S&P Global Ratings and P–1 from Moody’s.Länsförsäkringar Hypotek’s covered bonds maintained the highest credit rating of Aaa from Moody’s, and AAA/Stable from S&P Global Ratings. Länsförsäkringar Hypotek is thus one of three issuers in the Swedish market for covered bonds with the highest rating from both S&P Global Ratings and Moody’s.

MRELIn December 2019, the Swedish National Debt Office established its annual decisions on resolution plans and minimum requirement for own funds and eligible liabilities (MREL) for the institutions that the Debt Office deems to be systemically important, which includes Länsförsäkringar Bank. The National Debt Office decided on the minimum requirements at the consolidated level and at the individual level for Länsförsäkringar Bank, Länsförsäkringar Hypotek and Wasa Kredit.

* The calculation is based on the application of the regulatory requirements according to the upcoming update of the Capital Requirements Regulation.

Bank


Comments on financial results, Länsförsäkringar Bank

Earnings and profitabilityThe Länsförsäkringar Bank Group’s operating profit increased 25% to SEK 1,893 M (1,510), primarily driven by higher net interest income and strong underlying net commission. Operating income for 2018 was impacted by non-recurring costs mainly related to replacing the bank’s core banking system. Return on equity amounted to 9.5% (8.3).

IncomeNet interest income rose 3% to SEK 4,617 M (4,497), mainly attribut-able to higher volumes. Net gains from financial items amounted to SEK 15 M (14). The strong trend in underlying net commission, exclud-ing remuneration paid to the regional insurance companies, contin-ued, increasing 21% to SEK 977 M (807). Net commission amounted to SEK -636 M (-773).

ExpensesOperating expenses amounted to SEK 1,926 M (2,178). Operating expenses in the preceding year included non-recurring items for replacing the bank’s core banking system.

The cost/income ratio before credit losses amounted to 0.48 (0.58).

Credit lossesCredit losses in the Bank Group remained low and were almost exclusively attributable to Wasa Kredit. Credit losses amounted to SEK 207 M (95), net, corresponding to a credit loss level of 0.06% (0.04). The increase in credit losses in Wasa Kredit was a combined effect of growing volumes and the impact of IFRS 9.

Business volumesBusiness volumes increased 17% to SEK 656 billion (561). Lending rose 6% to SEK 307 billion (289), with continued high credit quality. Lending in Länsförsäkringar Hypotek rose 9% to SEK 240 billion (221). Deposits rose 10% to SEK 119 billion (108). The fund volume increased 40% to SEK 230 billion (164).

SEK M 2019 2018

Net interest income 4,617 4,497

Net commission -636 -773

Other operating income 26 59

Total operating income 6,121 3,783

Staff costs -640 -588

Other administration expenses -1,286 -1,165

Depreciation/amortisation and impairment of property and equipment and intangible assets -171 -425

Total operating expenses -1,926 -2,178

Profit before credit losses 2,101 1,605

Credit losses, net -207 -95

Operating profit 1,893 1,510

Tax -454 -328

NET PROFIT FOR THE YEAR 1,440 1,182

SEK M 31 Dec 2019 31 Dec 2018

ASSETS

Treasury bills and other eligible bills 9,934 10,847

Loans to credit institutions 408 4,486

Loans to the public 307,099 289,426

Bonds and other interest-bearing securities 42,673 36,790

Intangible assets 1,252 990

Tangible assets 89 10

Other assets 19,241 7,309

TOTAL ASSETS 380,696 349,857

EQUITY AND LIABILITIES

Due to credit institutions 6,565 5,992

Deposits and funding from the public 119,303 108,142

Debt securities in issue 118,305 210,781

Subordinated liabilities 2,595 2,593

Other liabilities 115,449 6,243

Equity 18,479 16,106

TOTAL EQUITY AND LIABILITIES 380,696 349,857

Income statement Balance sheet

Länsförsäkringar Bank, Group

Bank


Länsförsäkringar offers pension savings, primarily occupational pensions. Fund management, guarantee management and personal -risk insurance are offered through Länsförsäkringar Fondliv. No new policies are underwritten in Länsförsäkringar Liv, but the company manages traditional life assurance that was taken out before September 2011.

According to the Swedish Quality Index’s 2019 customer satis-faction survey, Länsförsäkringar has Sweden’s most satisfied retail customers in pension insurance. Länsförsäkringar Fondliv works continuously on offering simple alternatives but also a greater choice for customers, in order to maintain the high level of customer satis-faction. 23 new funds were launched in 2019, leading to more options for customers to invest in different equities and interest- bearing categories and in funds with a sustainability focus.

Länsförsäkringar works to incorporate active sustainability efforts throughout the entire operations, particularly in the form of offering responsible investments for customers’ pension savings. Seven new sustainability funds were launched during the year, bringing the total number of sustainability funds in the range to 17. The funds in the recommended range are analysed and assessed based on criteria including management organisation, return and sustainability. At the

Continuing focus on customersatisfaction and sustainabilityLife assurance and pension insurance Länsförsäkringar was pleased to have the most satisfied retail customers in pension insurance again in 2019 as well as a continued market-leading position in unit-linked insurance for individual occupational pensions. Our customers with pension capital received strong returns in 2019.

Unit-linked insurance, individual occupational pensions*

Länsförsäkringar, 17.7% SPP, 16.3% SEB, 13.8% Skandia, 12.3% Handelsbanken, 8.2% Movestic, 8.1% Swedbank Försäkring, 6.3% Nordea Liv, 5.4% Danica, 4.9% Folksam, 3.6% Other, 3.7%

Länsförsäkringar is the market leader in the occupational pension sub-market, excluding collective agreement pensions, measured in premium income.

Entire unit-linked insurance market*

Länsförsäkringar, 9.7% Swedbank Försäkring,

14.6% Folksam, 12.8% Handelsbanken, 12.6% SEB, 11.1% SPP, 10.5% Skandia, 8.2% Nordea Liv, 7.3% Danica, 4.5% Movestic, 4.0% Other, 4.7%

Länsförsäkringar’s total market share in unit-linked insurance, measured in premium income, amounted to 9.7% on 31 December 2019.

Entire occupational pension market*

Länsförsäkringar, 4.6% Alecta, 24.9% Folksam, 14.9% Skandia, 13.7% AMF Pension, 9.4% SPP, 5.6% SEB, 5.6% Swedbank Försäkring, 4.8% Handelsbanken, 4.2% Nordea Liv, 3.2% Other, 8.9%

Länsförsäkringar’s market share of the entire occupational pension market, measured in premium income, amounted to 4.6% on 31 December 2019.

* Source: Insurance Sweden

Market shares

Länsförsäkringar Fondliv, managed assets

SEK 159bn

Länsförsäkringar Liv, managed assets

SEK 114 bn

end of 2019, 100% of all fund companies in the fund range had signed the UN Principles for Responsible Investment (PRI). Länsförsäkringar was one of the first companies in the industry to introduce supplemen-tary criteria for identifying and promoting companies in the climate transition and can thus promote companies that support the climate targets of the Paris Agreement. The return in Länsförsäkringar’s fund range was highly competitive during the year.

According to Söderberg & Partners, Länsförsäkringar has the highest sustainability rating. Söderberg & Partners also gave Läns-försäkringar’s fund range top ranking for fund selection in unit-linked insurance and named Länsförsäkringar Fondliv the 2019 Unit-linked insurance company of the Year. Morningstar named Länsförsäkringar Sweden’s Best Overall Fund House 2019.

After an absence of two years, Länsförsäkringar will again become an eligible manager for the KAP-KL and AKAP-KL occupational pen-sions with unit-linked insurance, meaning that more than one million municipal and county council employees can choose Länsförsäkringar for their occupational pension.

MarketLänsförsäkringar remains the number one in its priority market – the unit-linked insurance market for individual occupational pensions. According to 2019 statistics from Insurance Sweden, Länsförsäkringar is the market leader with a market share of 17.7% measured in premium income. This means that the margin between Länsförsäkringar and the second place company SPP is 1.4 percentage points. Länsförsäk-ringar is the sixth largest company in the total unit-linked insurance market, with a market share of 9.7%. In the overall occupational pen-sion market, which includes traditional insurance and deposit insur-

Life assurance and pension insurance40 Länsförsäkringar Alliance 2019

ance, Länsförsäkringar is the eighth largest company with a market share of 4.6%.

Länsförsäkringar Fondliv’s unit-linked insurance and guarantee managementUnit-linked insuranceThe performance of the financial markets was generally favourable in 2019, although some uncertainty did appear. It was a strong year for risk-exposed assets with global stock markets rising sharply. This trend was also reflected in Länsförsäkringar Fondliv’s fund range. Of a total of 149 funds, all but one reported positive returns in 2019, with 41% of funds generating a return of more than 30% and 29% of funds had a return of 20-30%. Funds targeting equities in properties, the US, Europe and small companies were the categories that reported the strongest performance. Länsförsäkringar’s Fastig hetsfond had the best performance, increasing 65%.

Guarantee ManagementLänsförsäkringar Fondliv offers guarantee management, which is a form of pension savings for customers who want a guarantee in their savings and who need to know the lowest level of their future pay-ments. The guarantee principle is that Länsförsäkringar guarantees a portion of the customer’s paid-in insurance capital with the possi-bility of additional returns. A number of changes were made to this savings form in 2019 to enhance competitiveness and create the conditions for generating secure and long-term returns on pension customers’ savings. On 31 December 2019, 50% of the investments comprised interest- bearing investments, 36% equities and 14% alternative investments. Managed assets amounted to SEK 3.9 billion (3.2). The return for guarantee management was strong and among the market’s best products at 15.6% (–4.0).

Länsförsäkringar Liv’s traditional life assuranceLänsförsäkringar Liv, which is closed for new business, conducts traditional life assurance for its customers divided into four port-folios: New Trad, Old Trad, New World and Insured Pension. Total man-aged assets amounted to SEK 114 billion (109) on 31 December 2019.

New TradManaged assets in New Trad amounted to SEK 25 billion (22). New Trad is a management form that customers with existing traditional insur-ance can choose to transition to. Transitions involve lower fees and a lower guaranteed rate. A lower guaranteed rate means that Länsför-säkringar Liv can invest the capital in assets that have higher expected


Länsförsäkringar Fondlivoffers unit-linked insurance and guarantee management

Länsförsäkringar Liv manages traditional life assurance according to mutual principles*

Unit-linked insurance Guarantee management New Trad Old Trad New World

Return Depends on customers’ choice of funds

15.6% 14.9,% bonus rate 4% 6.9%, bonus rate 3% 17.6%

Size of portfolio SEK 155 billion SEK 4 billion SEK 25 billion SEK 78 billion SEK 10 billion

Portfolio investments

Depends on customers’ choice of funds

50% interest-bearing 36% equities 14% alternative



30% interest-bearing 70% equities

Collective consolidation

100% 112% 131% 100%

* The company is not consolidated in Länsförsäkringar AB and all surpluses and deficits accrue to customers.

returns, which over time increases the possibility of a higher bonus.Investments on 31 December 2019 comprised 54% interest -bearing investments, 33% equities, 7% alternative investments and 6% proper-ties. The share of interest-bearing investments was reduced by 5 per-centage points in 2019, while the share of alternative investments and properties was raised. Investment return amounted to 14.9% (–0.6). The average return has been 6.3% per year since the start in 2013. The bonus rate on 31 December 2019 was 4% (5). The bonus rate was lowered from 5% to 3% on 1 January 2019. The bonus rate was raised to 4% on 1 Novem-ber 2019. In connection with this, an extra bonus of 4% was allotted. The average bonus rate has been 7.2% per year since the start in 2013.

Old TradManaged assets in Old Trad amounted to SEK 78 billion (77). The current low interest-rate environment presents major challenges for traditional life assurance since in many cases the expected return is lower than the guaranteed rate of the insurance policies. The primary aim of risk- taking in Old Trad is to ensure that the guaranteed commitments can also be realised in the event of a negative market trend. Balanced risk- taking is also applied to facilitate a reasonable return on customers’ savings. Investments on 31 December 2019 comprised 84% interest- bearing invest ments, 5% equities, 6% properties and 5% alternative investments. Investment return amounted to 6.9% (0.9). The bonus rate on 31 December 2019 was 3% (3).

New World Managed assets in New World amounted to SEK 10 billion (10). New World is a traditional insurance policy whereby customers benefit from changes in value in the equities market, while at the same time are guaranteed to recoup over time at least the premiums paid, after deductions for expenses and yield tax. Investments in New World can vary within defined intervals, with equities comprising 60–80% and the remainder comprising interest -bearing investments. The percent-age of equities on 31 December 2019 was 70%. The investment return amounted to 17.6% (–7.8).

Insured PensionManaged assets in Insured Pension amounted to SEK 1.2 billion (1.0). This savings form comprises a bond portion and a derivative portion. The size of these two portions depends on the time remaining until retirement and thus the return for Insured Pension is individual.Insured Pension customers have been invited to transfer to New Trad since 2018. This offer was well received and a total of more than SEK 840 M in customer capital has been transferred to New Trad.

Life assurance and pension insurance 41Länsförsäkringar Alliance 2019

Comments on financial results, Länsförsäkringar Fondliv

Earnings and profitabilityProfit for Länsförsäkringar Fondliv increased to SEK 749 M (681). Net flow of premiums and capital from existing and new customers amounted to SEK 2,134 M (2,444). Managed assets increased 26% in 2019 to SEK 159 billion (126) on 31 December 2019. This increase was mainly due to a favourable stock-market trend and positive net flows of premiums and capital.

Total premium income rose to SEK 9,478 M (9,010), of which capital transferred to the company was SEK 1,510 M (1,304). Premium income after ceded reinsurance for insurance risk declined to SEK 204 M (234). Commission and fee income increased to SEK 1,779 M (1,671) due to growing managed assets in 2019.

Operating expenses rose to SEK 1,141 M (1,106), primarily due to higher distribution and administration expenses. The increased admin istration expenses were largely due to higher IT costs for development.

Capital situationLänsförsäkringar Fondliv’s capital situation is expressed and mea-sured in accordance with Solvency II as a ratio of own funds in rela-tion to the risk-based capital requirement. Länsförsäkringar Fondliv’s solvency ratio on 31 December 2019 was 137% (135). Own funds were strengthened by a positive value growth trend, but fell due to a planned dividend for 2019.

SEK M 2019 2018

Premium income after ceded reinsurance 204 234

Fees from financial agreements 794 755

Investment income, net 30,965 -4,678

Claims payments -85 -109

Change in technical provisions -30,984 4,668

Operating expenses -1,141 -1,106

Other technical revenue and expenses 1,098 1,028

Technical result for insurance operations 851 792

Non-technical revenue/expenses 0 -3

Profit before tax 851 789

Tax -102 -108

NET PROFIT FOR THE YEAR 749 681

SEK M 31 Dec 2019 31 Dec 2018

ASSETS

Assets 239 218

Other financial investment assets 5,465 3,744

Investment assets for which the policyholder bears the investment risk 154,563 122,340

Reinsurers’ portion of technical provisions 64 47

Receivables 778 738

Other assets 769 989

Prepaid expenses and accrued income 1459 1,279

TOTAL ASSETS 163,338 129,355

EQUITY, PROVISIONS AND LIABILITIES

Equity 3,182 2,433

Technical provisions 3,445 3,158

Insurance commitments for which the policy-holder bears the risk 155,950 123,135

Provisions 16 22

Deposits from reinsurers 64 47

Liabilities 648 534

Accrued expenses and deferred income 33 26

TOTAL EQUITY, PROVISIONS AND LIABILITIES 163,338 129,355


Länsförsäkringar Fondliv


Life assurance and pension insurance42 Länsförsäkringar Alliance 2019

Comments on financial results, Länsförsäkringar Liv

Earnings and profitabilityProfit for Länsförsäkringar Liv increased to SEK 5,567 M (609), mainly due to the healthy investment income that benefited from robust capital markets in 2019. Investment income was boosted mainly by high returns on equities, alternative investments and properties.

The return on alternative investments was mainly the result of sales of forest holdings. In connection with the restructuring of Bergvik Skog AB, Länsförsäkringar Liv sold a large portion of its forest holdings to Stora Enso, and to 17 regional insurance companies and Länsförsäkringar Fondliv. This sale took place on market-based con-ditions and realised a gain of SEK 870 M.

In addition to healthy investment income, positive operating profit and transitions to New Trad, through lower technical provisions, con-tributed to the high earnings in 2019.

Earnings were negatively impacted by Swedish long-term market interest rates falling about 30 basis points in 2019, which resulted in a lower discount rate for the liability during the year. Changes in market interest rates affect Länsförsäkringar Liv’s earnings since future commitments are discounted with the market interest rate. However, the company can largely protect itself from interest-rate changes impacting earnings by matching assets and liabilities against each other. In addition to falling market interest rate, discounting of

the liability for terms of more than ten years was negatively affected by the 0.15 of a percentage point reduction of the Ultimate Forward Rate (UFR) to 3.90%. Technical provisions declined SEK 0.7 billion (3.4) during the year. Operating expenses totalled SEK 426 M (412).

Investment income was positive for all management forms and totalled SEK 9.9 billion (–0.5). New World contributed SEK 1.6 billion, which did not impact earnings and instead accrued directly to the policyholders.

Länsförsäkringar Liv is operated according to mutual principles and is not consolidated in Länsförsäkringar AB.

Capital situationLänsförsäkringar Liv’s capital situation is expressed and measured in accordance with Solvency II as a ratio of own funds in relation to the risk-based capital requirement. Länsförsäkringar Liv’s solvency ratio on 31 December 2019 was 211% (200). The improvement in the solvency ratio was mainly due to own funds strengthening during the year as a result of positive investment income.

Collective consolidation is calculated as the ratio between total capital and insurance capital. Collective consolidation on 31 December 2019 amounted to 112% (105) in New Trad and 131% (124) in Old Trad.

SEK M 2019 2018

Premium income after ceded reinsurance 1,539 1,684

Investment income, net 9,949 -527

Claims payments -4,928 -4,939

Change in technical provisions -520 4,992

Operating expenses -426 -412

Technical result for insurance operations 5,614 798

Non-technical revenue/expenses – –

Profit before tax 5,614 798

Tax allocation reserve 50 -14

Tax -97 -175

NET PROFIT FOR THE YEAR 5,567 609

SEK M 31 Dec 2019 31 Dec 2018

ASSETS

Investment assets 115,979 110,662

Reinsurers’ portion of technical provisions 0 397

Receivables 2730 1,399

Other assets 3,634 3,979

Prepaid expenses and accrued income 53 72

TOTAL ASSETS 122,396 116,509

EQUITY, PROVISIONS AND LIABILITIES

Equity 27,974 23,703

Untaxed reserves 291 340

Technical provisions 85,018 84,850

Provisions for other risks and expenses 32 30

Deposits from reinsurers 0 397

Liabilities 8,902 7,006

Accrued expenses and deferred income 179 183

TOTAL EQUITY, PROVISIONS AND LIABILITIES 122,396 116,509


Länsförsäkringar Liv


Life assurance and pension insurance 43Länsförsäkringar Alliance 2019

The real-estate brokerage with the fastest growth and most satisfied customersReal-estate brokerage Through Länsförsäkringar Fastighetsförmedling, Länsförsäkringar offers a total solution for reliable mortgage transactions: real-estate brokerage, banking and insurance services all in one company. Real-estate brokerage is also a key customer meeting for sales of mortgages and insurance.

Länsförsäkringar Fastighetsförmedling has 176 branches throughout Sweden. Länsförsäkringar Fastighetsförmedling is the third largest player in the market and Sweden’s fastest growing estate-agent chain, and for the fourth consecutive year had the most satisfied customers according to the Swedish Quality Index’s 2019 customer satisfaction survey for the estate-agent industry.

The real-estate brokerage is an integrated part of the local regional insurance companies’ full-service offering, with the aim of offering more than just brokerage and sales of residential properties. The operations are conducted in franchise form, whereby the regional insurance com-panies act as the franchiser for the local branches. This also means that Länsförsäkringar Fastighetsförmedling differs from other national estate-agent chains by always being locally based.

Länsförsäkringar Fastighetsförmedling’s sales in 2019 represented the highest market share for single-family homes* in the company’s history, with a share of 12.9% on 30 November 2019. The market share for tenant-owned apartments* increased by 0.8 of a percentage point in 2019, and amounted to 11.1% on 31 December 2019. The increase in market shares thus indicates the fastest growth in the industry.

A total of 23,491 (21,790) properties were brokered in 2019, of which 12,937 (11,643) tenant-owned apartments and 9,519 (9,168) single -family homes. Commission income amounted to SEK 1,026 M (890). The total sales value for 2019 was SEK 52.4 billion (47.3).

Market shares and number of single-family homes brokered on 30 November 2019*Source: Värderingsdata

Länsförsäkringar Fastig hetsförmedling 12.9% (9,593)

Fastighetsbyrån 26.2% (19,577)

Svensk Fastighetsförmedling 14.5% (10,846)

Mäklarhuset 5.1% (3,812)

SkandiaMäklarna 4.4% (3,264)

Bjurfors 4.1% (3,054)

HusmanHagberg 3.3% (2,438)

ERA 1.3% (1,002)

Mäklarringen 1.3% (947)

Hemverket 0.9% (708)

Other brokers and private, 26.0% (19,404)

Länsförsäkringar Fastighetsförmedling is the third largest brokerage group, measured by brokered single-family homes*.

* Statistics for market shares for single-family homes are based on Värderingsdata’s list of land registration cer-tificates (rolling 12 months on 30 November 2019). The corresponding figures for tenant-owned apartments are based on tenant-owned apartments removed from Hemnet (rolling 12 months on 31 December 2019).

Länsförsäkringar Fastighetsförmedling’s brokered residential propertiesSEK billion Thousands

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The number of brokered residential properties increased by slightly less than 8% in 2019.

Länsförsäkringar Fastighetsförmedling’s market share of brokered single-family homes*%

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Länsförsäkringar Fastighetsförmedling is the fastest-growing estate-agent chain in Sweden.

44 Länsförsäkringar Alliance 2019Real-estate brokerage

Länsförsäkringar Alliance in figuresThe combined earnings of the Länsförsäkringar Alliance’s non-life insur ance operations are presented first on the following pages. This is followed by key figures from each of the 23 regional insur ance companies.

46 Länsförsäkringsgruppen, sakförsäkring

48 LF Norrbotten

48 Länsförsäkringar Västerbotten

48 Länsförsäkringar Jämtland

49 Länsförsäkringar Västernorrland

49 Länsförsäkringar Gävleborg

49 Dalarnas Försäkringsbolag

50 Länsförsäkringar Värmland

50 Länsförsäkringar Uppsala

50 Länsförsäkringar Bergslagen

51 Länsförsäkringar Stockholm

51 Länsförsäkringar Södermanland

51 Länsförsäkringar Göteborg och Bohuslän

52 Länsförsäkringar Skaraborg

52 Länsförsäkringar Östgöta

52 Länsförsäkringar Älvsborg

53 Länsförsäkringar Gotland

53 Länsförsäkringar Jönköping

53 Länsförsäkringar Halland

54 Länsförsäkring Kronoberg

54 Länsförsäkringar Kalmar län

54 Länsförsäkringar Blekinge

55 Länsförsäkringar Göinge- Kristianstad

55 Länsförsäkringar Skåne

Contents

Länsförsäkringar Alliance in figures 45Länsförsäkringar Alliance 2019


NON-LIFE INSURANCE, SEK M

Result after ceded reinsurance 2019

Premiums earned 443 914 461 479 517 1,353 638 821 1,332 2,029 630 1,630 778 1,517 1,259 238 1,185 790 561 811 363 546 2,352 6,211 27,856 27,856

Investment income transferred from financial operations 31 27 18 15 12 17 8 14 12 9 32 168 14 32 89 2 12 40 6 16 6 9 175 22 608 608

Claims payments –347 –666 –373 –410 –425 –1,203 –518 –633 –961 –1,537 –486 –1,295 –604 –1,148 –911 –128 –989 –602 –368 –592 –271 –443 –1,856 –4,553 –21,142 –21,142

Operating expenses –92 –150 –95 –105 –123 –212 –112 –138 –211 –425 –96 –350 –126 –291 –240 –47 –176 –163 –106 –168 –65 –95 –423 –1,403 –5,410 –5,410

Other income/expenses –1 –4 –2 –2 –3 –5 –3 –4 –4 –4 –2 –5 –4 –7 –5 –1 –6 –3 –10 –4 –1 –2 –11 7 –88 –88

Technical result from non-life insur ance operations before bonuses and discounts 35 122 9 –23 –22 –50 13 60 168 72 77 147 58 101 193 64 26 62 82 63 31 15 237 284 1,824 1,824

Bonuses and discounts –17 –81 –40 – – –175 – – –195 – –75 –164 –80 –302 –103 –75 –100 –139 – –92 –57 4 –200 – –1,893 –1,893

Technical result for non-life insur ance operations 18 41 –31 –23 –22 –225 13 60 –28 72 2 –17 –22 –201 89 –11 –74 –78 82 –29 –27 18 37 284 –70 –70

Total investment income 172 592 429 160 242 860 398 495 1,036 678 659 1,719 458 1,222 1,507 162 655 455 401 563 263 444 1,406 693 13,199 13,199

Investment income transferred to insur ance operations –31 –27 –18 –15 –12 –17 –8 –14 –12 –9 –32 –168 –14 –32 –89 –2 –12 –40 –6 –16 –6 –9 –175 –26 –790 –790

Other income/expenses –5 3 –6 –1 8 9 1 16 30 9 –5 9 9 21 –8 1 –6 6 –1 1 –3 –1 12 –436 –338 2,150

Operating profit 153 610 374 121 216 628 403 557 1,026 749 625 1,543 431 1,010 1,500 149 563 343 476 519 227 452 1,279 515 12,001 14,490

Balance sheet, 31 Dec 2019

ASSETS

Investment assets

Shares in Länsförsäkringar AB 399 1,069 722 846 940 1,890 643 1,318 1,538 2,566 1,009 1,834 839 2,058 1,803 250 1,473 1,023 635 933 380 985 2,709 – – –

Other shares and participations 574 2,328 1,543 333 456 3,911 1,232 1,658 3,950 1,404 2,516 5,212 1,263 3,841 5,881 650 2,507 851 1,351 2,263 1,009 1,580 4,949 2,560 53,773 55,848

Bonds and other interest-bearing securities 377 1,050 732 805 859 1,780 763 1,236 1,234 2,549 917 1,238 756 2,300 1,414 499 1,489 921 734 768 576 687 2,008 6,945 32,636 78,309

Other investment assets 205 467 99 44 8 313 277 12 339 392 9 1,392 346 1,600 320 58 473 1,430 211 437 19 348 2,323 15,882 34,167 20,996

Total investment assets 1,555 4,914 3,096 2,028 2,263 7,894 2,914 4,224 7,062 6,911 4,451 9,675 3,204 9,799 9,418 1,457 5,943 4,225 2,931 4,402 1,984 3,600 11,989 25,387 120,577 155,153

Reinsurers’ portion of technical provisions 246 288 282 210 368 420 258 329 336 331 213 268 280 451 382 151 403 256 178 316 206 256 768 9,440 9,440 9,504

Receivables and other assets 192 361 227 221 552 594 245 413 494 879 290 481 554 668 542 97 672 262 218 323 241 219 800 5,664 14,965 491,551

Cash and bank balances 302 204 78 72 134 321 197 151 963 114 72 179 268 237 198 131 200 85 74 222 65 211 235 683 5,396 16,374

Prepaid expenses and accrued income 11 55 36 13 29 110 29 40 64 48 33 160 20 35 36 41 28 146 9 24 6 14 195 448 1,629 3,502

Total assets 2,306 5,822 3,719 2,545 3,346 9,340 3,644 5,158 8,919 8,282 5,058 10,762 4,326 11,189 10,575 1,877 7,245 4,974 3,410 5,287 2,502 4,300 13,988 41,621 152,007 676,085


Equity 933 3,016 1,912 1,037 1,231 4,905 1,714 2,429 4,691 3,983 2,823 6,074 1,734 5,966 6,391 1,019 3,680 2,473 1,837 2,778 1,183 2,370 6,553 20,968 71,241 74,286

Technical provisions (before ceded reinsurance) 1,082 2,029 1,384 1,250 1,530 3,437 1,481 2,075 3,056 3,382 1,543 3,403 1,973 3,754 2,996 666 2,736 1,883 1,190 1,916 1,054 1,454 5,423 15,415 58,917 62,362

Other provisions and liabilities 274 644 358 236 571 847 363 559 974 865 674 1,217 592 1,415 1,138 184 795 591 366 578 254 463 1,924 3,757 19,029 533,632

Accrued expenses and deferred income 17 132 66 23 14 151 86 95 199 54 18 68 26 54 51 8 34 27 16 15 9 13 89 1,482 2,819 5,805

Total equity and liabilities 2,306 5,822 3,719 2,545 3,346 9,340 3,644 5,158 8,919 8,282 5,058 10,762 4,326 11,189 10,575 1,877 7,245 4,974 3,410 5,287 2,502 4,300 13,988 41,621 152,007 676,085

Solvency capital / Total capital 1,095 3,504 2,206 1,161 1,486 5,528 2,025 2,859 5,386 4,482 3,239 6,980 2,121 7,061 7,127 1,155 4,251 2,876 2,083 3,218 1,384 2,711 7,725 21,398 82,096 –

Solvency margin 249 372 473 238 281 401 313 349 398 211 504 414 265 458 554 473 348 353 363 388 374 485 324 336 288 –

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The Länsförsäkringar Alliance comprises 23 local and customerow-ned regional insurance companies and the jointly owned Länsförsäk-ringar AB. The Länsförsäkringar Alliance is not a Group in the legal sense of the term. Most of the non-life insurance business in the Alli-ance is underwritten by the regional insurance companies. The busi-ness conducted by Länsförsäkringar AB’s non-life insurance Group comprises health insurance, animal insurance, ceded and assumed reinsurance and some cargo, liability, property and motor insurance. Earnings from the Länsförsäkringar Alliance’s non-life insurance operations consist of the total earnings of the 23 regional insurance

companies and the non-life insurance operations of the Länsförsäk-ringar AB Group. The earnings for the Parent Company Länsförsäk-ringar AB is also included. The holdings and change in value in the Länsförsäkringar AB share and transactions between the regional insurance companies and the Länsförsäkringar AB Group have been eliminated. The 23 regional insurance companies and the Länsförsäk-ringar AB Group apply the approved International Financial Reporting Standards (IFRS).

Länsförsäkringar Alliance in figures46 Länsförsäkringar Alliance 2019

NON-LIFE INSURANCE, SEK M

Result after ceded reinsurance 2019

Premiums earned 443 914 461 479 517 1,353 638 821 1,332 2,029 630 1,630 778 1,517 1,259 238 1,185 790 561 811 363 546 2,352 6,211 27,856 27,856

Investment income transferred from financial operations 31 27 18 15 12 17 8 14 12 9 32 168 14 32 89 2 12 40 6 16 6 9 175 22 608 608

Claims payments –347 –666 –373 –410 –425 –1,203 –518 –633 –961 –1,537 –486 –1,295 –604 –1,148 –911 –128 –989 –602 –368 –592 –271 –443 –1,856 –4,553 –21,142 –21,142

Operating expenses –92 –150 –95 –105 –123 –212 –112 –138 –211 –425 –96 –350 –126 –291 –240 –47 –176 –163 –106 –168 –65 –95 –423 –1,403 –5,410 –5,410

Other income/expenses –1 –4 –2 –2 –3 –5 –3 –4 –4 –4 –2 –5 –4 –7 –5 –1 –6 –3 –10 –4 –1 –2 –11 7 –88 –88

Technical result from non-life insur ance operations before bonuses and discounts 35 122 9 –23 –22 –50 13 60 168 72 77 147 58 101 193 64 26 62 82 63 31 15 237 284 1,824 1,824

Bonuses and discounts –17 –81 –40 – – –175 – – –195 – –75 –164 –80 –302 –103 –75 –100 –139 – –92 –57 4 –200 – –1,893 –1,893

Technical result for non-life insur ance operations 18 41 –31 –23 –22 –225 13 60 –28 72 2 –17 –22 –201 89 –11 –74 –78 82 –29 –27 18 37 284 –70 –70

Total investment income 172 592 429 160 242 860 398 495 1,036 678 659 1,719 458 1,222 1,507 162 655 455 401 563 263 444 1,406 693 13,199 13,199

Investment income transferred to insur ance operations –31 –27 –18 –15 –12 –17 –8 –14 –12 –9 –32 –168 –14 –32 –89 –2 –12 –40 –6 –16 –6 –9 –175 –26 –790 –790

Other income/expenses –5 3 –6 –1 8 9 1 16 30 9 –5 9 9 21 –8 1 –6 6 –1 1 –3 –1 12 –436 –338 2,150

Operating profit 153 610 374 121 216 628 403 557 1,026 749 625 1,543 431 1,010 1,500 149 563 343 476 519 227 452 1,279 515 12,001 14,490

Balance sheet, 31 Dec 2019

ASSETS

Investment assets

Shares in Länsförsäkringar AB 399 1,069 722 846 940 1,890 643 1,318 1,538 2,566 1,009 1,834 839 2,058 1,803 250 1,473 1,023 635 933 380 985 2,709 – – –

Other shares and participations 574 2,328 1,543 333 456 3,911 1,232 1,658 3,950 1,404 2,516 5,212 1,263 3,841 5,881 650 2,507 851 1,351 2,263 1,009 1,580 4,949 2,560 53,773 55,848

Bonds and other interest-bearing securities 377 1,050 732 805 859 1,780 763 1,236 1,234 2,549 917 1,238 756 2,300 1,414 499 1,489 921 734 768 576 687 2,008 6,945 32,636 78,309

Other investment assets 205 467 99 44 8 313 277 12 339 392 9 1,392 346 1,600 320 58 473 1,430 211 437 19 348 2,323 15,882 34,167 20,996

Total investment assets 1,555 4,914 3,096 2,028 2,263 7,894 2,914 4,224 7,062 6,911 4,451 9,675 3,204 9,799 9,418 1,457 5,943 4,225 2,931 4,402 1,984 3,600 11,989 25,387 120,577 155,153

Reinsurers’ portion of technical provisions 246 288 282 210 368 420 258 329 336 331 213 268 280 451 382 151 403 256 178 316 206 256 768 9,440 9,440 9,504

Receivables and other assets 192 361 227 221 552 594 245 413 494 879 290 481 554 668 542 97 672 262 218 323 241 219 800 5,664 14,965 491,551

Cash and bank balances 302 204 78 72 134 321 197 151 963 114 72 179 268 237 198 131 200 85 74 222 65 211 235 683 5,396 16,374

Prepaid expenses and accrued income 11 55 36 13 29 110 29 40 64 48 33 160 20 35 36 41 28 146 9 24 6 14 195 448 1,629 3,502

Total assets 2,306 5,822 3,719 2,545 3,346 9,340 3,644 5,158 8,919 8,282 5,058 10,762 4,326 11,189 10,575 1,877 7,245 4,974 3,410 5,287 2,502 4,300 13,988 41,621 152,007 676,085


Equity 933 3,016 1,912 1,037 1,231 4,905 1,714 2,429 4,691 3,983 2,823 6,074 1,734 5,966 6,391 1,019 3,680 2,473 1,837 2,778 1,183 2,370 6,553 20,968 71,241 74,286

Technical provisions (before ceded reinsurance) 1,082 2,029 1,384 1,250 1,530 3,437 1,481 2,075 3,056 3,382 1,543 3,403 1,973 3,754 2,996 666 2,736 1,883 1,190 1,916 1,054 1,454 5,423 15,415 58,917 62,362

Other provisions and liabilities 274 644 358 236 571 847 363 559 974 865 674 1,217 592 1,415 1,138 184 795 591 366 578 254 463 1,924 3,757 19,029 533,632

Accrued expenses and deferred income 17 132 66 23 14 151 86 95 199 54 18 68 26 54 51 8 34 27 16 15 9 13 89 1,482 2,819 5,805

Total equity and liabilities 2,306 5,822 3,719 2,545 3,346 9,340 3,644 5,158 8,919 8,282 5,058 10,762 4,326 11,189 10,575 1,877 7,245 4,974 3,410 5,287 2,502 4,300 13,988 41,621 152,007 676,085

Solvency capital / Total capital 1,095 3,504 2,206 1,161 1,486 5,528 2,025 2,859 5,386 4,482 3,239 6,980 2,121 7,061 7,127 1,155 4,251 2,876 2,083 3,218 1,384 2,711 7,725 21,398 82,096 –

Solvency margin 249 372 473 238 281 401 313 349 398 211 504 414 265 458 554 473 348 353 363 388 374 485 324 336 288 –

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Länsförsäkringar Västerbotten

Länsförsäkringar Jämtland

President: Anders LångströmBoard Chairman: Nina Wikstedt

President: Göran KarmehagBoard Chairman: Maria Wallin Wållberg

President: Tomas ErikssonBoard Chairman: Karin Mattsson

LF Norrbotten

Key figures 2019 2018

Operating profit before bonuses and discounts, SEK M 170 64

Total assets, SEK M 2,306 2,028

Solvency ratio, % 229 242

Number of employees 84 77

Number of branches 4 3

BankDeposits, SEK M 1,207 1,051

Loans, SEK M 322 310

Retail mortgages, SEK M 3,272 3,002

Fund volumes managed, SEK M 393 258

Number of customers 11,600 11,100

Life assurancePremium income, SEK M 73 71

Total insur ance capital, SEK M 2,259 2,042


Non-life insur ancePremiums earned, SEK M 443 401

Technical result for insur-ance operations, SEK M 35 54

Bonuses and discounts to the customers, SEK M 17 16

Combined ratio after ceded reinsurance, % 99 94

Total return on asset management, % 10 3









Loans, SEK M 1,494 1,458


Fund volumes managed, SEK M 2,485 1,814


















Loans, SEK M 1,211 1,197









Bonuses and discounts to the customers, SEK M 40 –





Länsförsäkringar Västernorrland

Länsförsäkringar Gävleborg

Dalarnas Försäkringsbolag

President: Mikael BergströmBoard Chairman: Stig Högberg

President: Per-Ove BäckströmBoard Chairman: Mats Åstrand

President: Anders GrånäsBoard Chairman: Maria Engholm








Loans, SEK M 1,634 1,569







Non-life insur ancePremiums earned, SEK M 1,353 1,291

Technical result for insur-ance operations, SEK M –50 126














Fund volumes managed, SEK M 1,173 827






Technical result for insur-ance operations, SEK M –22 –34



















Technical result for insur-ance operations, SEK M –23 –55





Länsförsäkringar Värmland

Länsförsäkringar Uppsala

Länsförsäkringar Bergslagen

President: Ulrika Obstfelder PeterssonBoard Chairman: Eva Julin Dombrowe

President: Ulrica HedmanBoard Chairman: Bengt-Erik Jansson

President: Mikael SundquistBoard Chairman: Bengt-Erik Lindgren

















Bonuses and discounts to the customers, SEK M – 35











Loans, SEK M 1,766 1,702













Operating profit before bonuses and discounts, SEK M 1,221 319






Loans, SEK M 3,739 3,794














Länsförsäkringar Stockholm

Länsförsäkringar Södermanland

Länsförsäkringar Göteborg och Bohuslän

President: Charlotte BarnekowBoard Chairman: Lennart Käll

President: Anna-Greta LundhBoard Chairman: Caesar Åfors

President: Ricard RobbstålBoard Chairman: Hans Ljungkvist








Loans, SEK M 1,616 1,644




Life assurancePremium income, SEK M 2,397 2,402



































Loans, SEK M 1,416 1,392




Life assurancePremium income, SEK M 1,035 1,073










Länsförsäkringar Skaraborg

Länsförsäkringar Östgöta

Länsförsäkringar Älvsborg

President: Jonas RosmanBoard Chairman: Eric Grimlund

President: Stefan NyrinderBoard Chairman: Peter Lindgren

President: Ola EvenssonBoard Chairman: Lars Hallkvist








Loans, SEK M 3,272 3,250




















Loans, SEK M 1,746 1,713




















Loans, SEK M 2,450 2,294














Länsförsäkringar Gotland

Länsförsäkringar Jönköping

Länsförsäkringar Halland

President: Henrik StangelBoard Chairman: Eva Wetterdal

President: Tommy KnutssonBoard Chairman: Göran Lindell

President: Christian BilleBoard Chairman: Karin Starrin








Loans, SEK M 1,819 1,743




















Loans, SEK M 2,742 2,624








Technical result for insur-ance operations, SEK M 26 –2












Loans, SEK M 3,165 3,148














Länsförsäkring Kronoberg

Länsförsäkringar Kalmar län

Länsförsäkringar Blekinge

President: Beatrice Kämpe NikolaussonBoard Chairman: Per-Åke Holgersson

President: Anna BlomBoard Chairman: Jan-Olof Thorstensson

President: Jens ListeröBoard Chairman: Bengt Mattsson








Loans, SEK M 1,660 1,513




















Loans, SEK M 1,517 1,391









Bonuses and discounts to the customers, SEK M – 40











Loans, SEK M 1,296 1,178














Länsförsäkringar Göinge- Kristianstad

Länsförsäkringar Skåne

President: Niklas LarssonBoard Chairman: Göran Trobro

President: Susanne BäskBoard Chairman: Otto Ramel








Loans, SEK M 1,920 1,999



















Loans, SEK M 4,796 4,725




Life assurancePremium income, SEK M 970 1,011










Organisation and facts Länsförsäkringar ABLänsförsäkringar AB is wholly owned by the regional insurance com-panies, together with 15 local insurance companies. Through its dis-tinct role in the Länsförsäkringar Alliance’s value chain, Länsförsäk-ringar AB contributes to increasing competitiveness and reducing costs for joint development. In turn, this creates possibilities for the regional insurance companies to be successful in their respective

markets. In addition to the Parent Company, Länsförsäkringar AB, the Group consists of Länsförsäkringar Sak, Länsförsäkringar Bank, Länsförsäkringar Fondliv, Länsförsäkringar Liv and the subsidiaries of these companies. Länsförsäkringar Liv is not consolidated in the Group since the company is operated according to mutual principles.

Länsförsäkringar AB

Länsförsäkringar Sak Försäkrings ABSupplements the regional insur-ance companies’ non-life insur-ance offering with specialist products, serves as an engine for new business and is responsible for joint reinsurance.

Länsförsäkringar Bank ABOffers a broad range of banking services to the regional insur-ance companies’ customers through Länsförsäkringar Hypo-tek, Länsförsäkringar Fondför-valtning and Wasa Kredit.

Länsförsäkringar Fondliv Försäkrings ABOffers pension savings with fund management and guarantee management and personal-risk insurance to the regional insur-ance companies’ customers.

Länsförsäkringar Liv Försäkrings ABManages traditional life assurance taken out before September 2011 when the com-pany was closed for new busi-ness.

3.9 million customers

23 local regional insurance companies

Shareholdings in Länsförsäkringar AB at 31 December 2019

Number of shares

Company A B CShare of

equity, %

Länsförsäkringar Skåne 141,849 882,046 – 9.8

Länsförsäkringar Stockholm 129,212 802,382 – 8.9

Länsförsäkringar Östgöta 114,155 663,463 – 7.5

Dalarnas Försäkringsbolag 104,708 609,639 – 6.9

Länsförsäkringar Göteborg och Bohuslän 87,010 605,143 821 6.6

Länsförsäkringar Älvsborg 100,176 581,374 – 6.5

Länsförsäkringar Bergslagen 86,351 495,089 – 5.6

Länsförsäkringar Jönköping 82,812 474,021 – 5.3

Länsförsäkringar Uppsala 73,298 424,791 – 4.8

Länsförsäkringar Västerbotten 57,195 330,919 – 3.7

Länsförsäkringar Halland 56,785 329,857 – 3.7

Länsförsäkringar Södermanland 58,117 323,139 – 3.7

Länsförsäkringar Göinge-Kristianstad 49,982 322,347 – 3.6

Länsförsäkringar Kalmar län 56,717 295,878 – 3.4

Länsförsäkringar Gävleborg 60,058 281,083 – 3.3

Länsförsäkringar Skaraborg 64,058 253,172 – 3.0

Länsförsäkringar Västernorrland 50,186 257,122 – 2.9

Länsförsäkringar Jämtland 35,795 226,453 – 2.5

Länsförsäkring Kronoberg 36,701 203,130 – 2.3

Länsförsäkringar Värmland 31,160 202,208 – 2.2

LF Norrbotten 16,960 127,878 – 1.4

Länsförsäkringar Blekinge 23,088 120,500 – 1.4

Länsförsäkringar Gotland 16,305 74,315 – 0.9

15 local insurance companies – – 5,134 0.0

Total number of shares 1,532,678 8,885,949 5,955 100

Share trend, Länsförsäkringar AB

SEK 2019 2018 2017 2016 2015

Equity per share on 31 December 2,754 2,462 2,269 2,046 1,858

56 Länsförsäkringar Alliance 2019About Länsförsäkringar AB

DefinitionsOperating expenses in the insurance operationsIncludes costs of marketing, sales and administration in insurance operations.

Expense ratio, non-life insuranceOperating expenses as a percentage of pre-miums earned after ceded reinsurance.

After ceded reinsuranceThe proportion of an insurance transaction for which the insurance company assumes the risk, and which is not reinsured with another company. Sometimes the term “for own account” is used.

Claims paymentsThe cost during the period for claims incurred, including costs for claims that have not yet been reported to the insurance company. The cost also includes the run-off result.

Technical provisionsProvision for unearned premiums and unex-pired risks, life-assurance reserves and pro-vision for claims outstanding and compara-ble commitments in accordance with signed insurance contracts. For life assurance, this shall correspond to the insurance compa-ny’s guaranteed insurance commitments.

Investment income, non-life insuranceThe net of the following income and expenses: interest income, interest expense, dividends on shares and participations, earnings from company-owned property, change in the fair value of shares, inter-est-bearing securities and derivatives, earnings from the sale of investment assets, currency exchange gains and losses, and operating expenses in asset management.

Investment income transferred from financial operations Premiums are paid in advance, while operating expenses and claims costs are paid in arrears. Funds that have not yet been paid out are invested in order to obtain a return. The estimated interest on these investments – the cost of capital – is trans-ferred from investment income to the insurance operations.

Solvency ratioOwn funds in relation to the solvency capital requirement, according to the Solvency II Directive in Swedish law.

Cost/income ratio, bankTotal expenses in relation to total income. The cost/income ratio is calculated before and after credit losses

Collective consolidation, life assuranceThe ratio between the market value of total net assets and the company’s total commit-ments to policyholders (guaranteed com-mitments and preliminarily distributed bonus) for the insurance policies that carry bonus rights.

Solvency margin, non-life insuranceSolvency capital as a percentage of premium income after ceded reinsurance.

Solvency capitalThe sum of equity, untaxed reserves, deferred tax liabilities, subordinated debt as well as surplus values on assets.

Credit losses net, bankConfirmed credit losses and loss allowance less recoveries of receivables and net expense for the year for credit losses for guarantees and other contingent liabilities.

Credit losses in relation to loans, bankNet credit losses in relation to the carrying amount of loans to the public and to credit institutions.

Investment margin, bankNet interest income in relation to average total assets.

Investment assetsInvestment assets are current or long-term assets that take the form of an investment. This includes real estate and securities for insurance companies.

Premium incomePremiums paid in during the period or recognised as receivables at the end of the period since they have fallen due for pay-ment. Premium income is a common mea-sure of the volume of insurance operations.

Premiums earnedThe proportion of premium income attributable to the period.

Tier 1 capital, bankTier 1 capital is part of own funds and com-prises equity and Additional Tier 1 capital. Deductions are made for such items as deferred tax assets, goodwill and other

intangible assets, investments in financial companies and the difference between expected losses and reserves established for probable credit losses.

Tier 1 ratio, bankTier 1 capital at year-end in relation to the closing risk-weighted amount.

Return on equityOperating profit less standard tax at a rate of 21.4% in relation to average equity adjusted for capital contributions and Additional Tier 1 Capital loans.

Net interest income, bankInterest income from loans to the public, credit institutions and income from inter-est-bearing securities less expenses for deposits and funding from the public, credit institutions and expenses for interest- bearing securities.

Technical result for non-life insurance operationsPremiums earned less claims payments, claims adjustment costs and operating expenses in the insurance operations plus profit/loss from ceded reinsurance and investment income transferred from financial operations.

Claims ratio, non-life insuranceThe ratio between claims payments, includ-ing claims adjustment costs and premiums earned after ceded reinsurance.

Total return ratio The sum of direct yield, realised gains and losses, and unrealised changes in the value of assets in relation to the average fair value of managed assets.

Combined ratio, non-life insuranceThe sum of operating expenses, claims payments and claims adjustment costs in relation to premiums earned after ceded reinsurance.

ReinsuranceIf an insurance company cannot, or does not wish to, assume the entire liability to policy-holders, it reinsures part of its underwritten policies with other companies. In this con-nection, the reinsurance is said to be “ceded” by the first company and “assumed” by the second company.

57Länsförsäkringar Alliance 2019 Definitions

AddressesLF NorrbottenBox 937SE-971 28 LuleåVisit: KöpmantorgetTel: +46 920 24 25 00E-mail: [email protected]

Länsförsäkringar VästerbottenBox 153SE-901 04 UmeåVisit: Nygatan 19Tel: +46 90 10 90 00E-mail: [email protected]

Länsförsäkringar JämtlandBox 367SE-831 25 ÖstersundVisit: Prästgatan 18Tel: +46 63 19 33 00E-mail: [email protected]

Länsförsäkringar VästernorrlandBox 164SE-871 24 HärnösandVisit: Köpmangatan 13 Tel: +46 611 36 53 00E-mail: [email protected]

Länsförsäkringar GävleborgBox 206SE-801 03 GävleVisit: Drottninggatan 35Tel: +46 26 14 75 00E-mail: [email protected]

Dalarnas FörsäkringsbolagBox 3SE-791 21 FalunVisit: Slaggatan 9Tel: +46 23 930 00E-mail: [email protected]

Länsförsäkringar VärmlandBox 367SE-651 09 KarlstadVisit: Köpmannagatan 2 ATel: +46 54 775 15 00E-mail: [email protected]

Länsförsäkringar UppsalaBox 2147SE-750 02 UppsalaVisit: Fyrisborgsgatan 4Tel: +46 18 68 55 00E-mail: [email protected]

Länsförsäkringar BergslagenBox 1046SE-721 26 VästeråsVisit: Stora Gatan 41Tel: +46 21 19 01 00E-mail: [email protected]

Länsförsäkringar StockholmSE-169 97 SolnaVisit: Telegrafgatan 8ATel: +46 8 562 830 00E-mail: [email protected]

Länsförsäkringar SödermanlandBox 147SE-611 24 NyköpingVisit: Västra Storgatan 4Tel: +46 155 48 40 00E-mail: [email protected]

Länsförsäkringar Göteborg och BohuslänSE-404 84 GothenburgVisit: Lilla Bommen 8Tel: +46 31 63 80 00E-mail: [email protected]

Länsförsäkringar SkaraborgBox 600SE-541 29 SkövdeVisit: Rådhusgatan 8Tel: +46 500 77 70 00E-mail: [email protected]

Länsförsäkringar Östgöta Box 400SE-581 04 LinköpingVisit: Platensgatan 11Tel: +46 13 29 00 00E-mail: [email protected]

Länsförsäkringar ÄlvsborgBox 1107SE-462 28 VänersborgVisit: Vallgatan 21Tel: +46 521 27 30 00E-mail: [email protected]

Länsförsäkringar GotlandBox 1224SE-621 23 VisbyVisit: Österväg 17Tel: +46 498 28 18 50E-mail: [email protected]

Länsförsäkringar JönköpingBox 623SE-551 18 JönköpingVisit: Barnarpsgatan 22Tel: +46 36 19 90 00E-mail: [email protected]

Länsförsäkringar HallandBox 518SE-301 80 HalmstadVisit: Strandgatan 10Tel: +46 35 15 10 00E-mail: [email protected]

Länsförsäkring KronobergBox 1503SE-351 15 VäxjöVisit: Kronobergsgatan 10Tel: +46 470 72 00 00E-mail: [email protected]

Länsförsäkringar Kalmar länBox 748SE-391 27 KalmarVisit: Norra Långgatan 17Tel: +46 20 66 11 00E-mail: [email protected]

Länsförsäkringar BlekingeBox 24SE-374 21 KarlshamnVisit: Drottninggatan 56Tel: +46 454 30 23 00E-mail: [email protected]

Länsförsäkringar Göinge- KristianstadBox 133SE-291 22 KristianstadVisit: Tivoligatan 6Tel: +46 44 19 62 00E-mail: [email protected]

Länsförsäkringar SkåneBox 742SE-251 07 HelsingborgVisit: Södergatan 15Tel: +46 42 633 80 00E-mail: [email protected]

JOINT COMPANIES

Länsförsäkringar ABSE-106 50 StockholmVisit: Tegeluddsvägen 11–13Tel: +46 8 588 400 00E-mail: [email protected]

Länsförsäkringar LivSE-106 50 StockholmVisit: Tegeluddsvägen 11–13Tel: +46 8 588 400 00E-mail: [email protected]

Länsförsäkringar FondlivSE-106 50 StockholmVisit: Tegeluddsvägen 11–13Tel: +46 8 588 400 00E-mail: [email protected]

Länsförsäkringar SakSE-106 50 StockholmVisit: Tegeluddsvägen 11–13Tel: +46 8 588 400 00E-mail: [email protected]

Länsförsäkringar BankSE-106 50 StockholmVisit: Tegeluddsvägen 11–13Tel: +46 8 588 400 00E-mail: [email protected]

Länsförsäkringar HypotekSE-106 50 StockholmVisit: Tegeluddsvägen 11–13Tel: +46 8 588 400 00E-mail: [email protected]

Länsförsäkringar FondförvaltningSE-106 50 StockholmVisit: Tegeluddsvägen 11–13Tel: +46 8 588 400 00E-mail: [email protected]

Wasa Kredit Box 6740SE-113 85 StockholmVisit: Tegeluddsvägen 11–13Tel: +46 8 635 38 00E-mail: [email protected]

Agria DjurförsäkringBox 70306SE-107 23 StockholmVisit: Tegeluddsvägen 11–13Tel: +46 8 588 421 00E-mail: [email protected]

Länsförsäkringar FastighetsförmedlingSE-106 50 StockholmVisit: Tegeluddsvägen 21Tel: +46 10 219 54 00E-mail: [email protected]

Länsförsäkringar MäklarserviceBox 27120SE-102 52 StockholmVisit: Tegeluddsvägen 21Tel: +46 8 588 490 00E-mail: [email protected]

Humlegården FastigheterBox 5182SE-102 44 StockholmVisit: Engelbrektsplan 1Tel: +46 8 678 92 00E-mail: [email protected]

58 Länsförsäkringar Alliance 2019Addresses

Financial calendar 2020

Interim report January-March 2020, Länsförsäkringar Bank 28 April Interim report January-March 2020, Länsförsäkringar Hypotek 28 April

Interim report January-June 2020, Länsförsäkringar Bank 22 JulyInterim report January-June 2020, Länsförsäkringar Hypotek 22 JulyInterim report January-June 2020, Länsförsäkringar Alliance 3 September

Interim report January-September 2020, Länsförsäkringar Bank 23 OctoberInterim report January-September 2020, Länsförsäkringar Hypotek 23 October

Production: Länsförsäkringar AB in cooperation with Springtime-Intellecta.Photos: Länsförsäkringar’s image bank, Jimmy Eriksson, iStock and Anders Wiklund/TT.

Print: GöteborgsTryckeriet. We print on environmentally friendly paper.

Länsförsäkringar Alliance 2019 Financial calendar 59

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Documents

Annual review - mb.cision.com · safety activities throughout Sweden. Households were taught about how to conduct a fire drill and how simple fires in the home can be prevented and