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UPDATE 1-Storebrand says financials good as Q3 jumps

Published 10/28/2009, 03:47 AM
Updated 10/28/2009, 03:52 AM
STB
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* Q3 group profit 908 million crowns vs 632 million forecast

* Says SPP cost programme on track

(Writes through, adds comments, details)

OSLO, Oct 28 (Reuters) - Norwegian insurer Storebrand posted a bigger than expected jump in third-quarter group profit, lifted by recovering equity markets, and said its financial position had improved.

The provider of pension, life and health insurance, banking and asset management in the Nordic region said it swung to a group profit the July-to-Sept quarter of 908 million Norwegian crowns ($161.1 million) against a 1.2 billion crowns loss a year ago.

The result beat an average estimate of 632 million crowns in a Reuters poll of analysts.

"Storebrand was in a good financial position at the close of Q3," Storebrand said in the report, adding that its solvency margin -- a measure of financial robustness -- in its life insurance unit was at 161 percent.

The company said increased exposure to equities and a reduced hedging programme lifted the quarterly results.

The company said its cost measure programme from the 2007 acquisition of Swedish life insurer SPP was running according to plan. Annual cost reductions are targeted at 100 million Swedish crowns ($14.49 million).

Shares in Storebrand closed at 40.80 crowns on Tuesday. ($1=5.637 Norwegian Crown) ($1=6.899 Swedish Crown)

(Reporting by Oslo newsroom; editing by Simon Jessop)

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