Skandia reports 7.3% return for owners in first year of independence
Skandia, the investment, insurance and banking business headquartered in Sweden that was hived off by former owner Old Mutual about a year back has reported it made a total return of 7.3% through 2012 on behalf of its customers, who own the business through its mutual structure.
This was more than double the 3.1% total return reported for 2011, and came as appreciation on global stock markets helped improve the value of assets.
The return came from a portfolio of businesses -such as life insurance – which were invested in a portfolio that was split about 60% into equity, private equity, infrastructure, commodities, credit and property, and about 40% into interest bearing securities.
Sales have been driven by continued strong demand for both traditional life insurance and unit linked products. Life and unit linked sales increased 7% across the Nordic region, and by 15% on the Swedish market compared to the year before.
Skandia Liv’s solvency ratio was reported as 150% as of the end of December 2012, in regards to the life insurance liabilities versus assets. The group’s coverage ratio overall is reported as 108%.
Skandia claims overall assets under management through its savings and investments, and insurance businesses of SEK440bn (€52bn), on behalf of some 2.2 million customers across Sweden, Norway and Denmark.