* Sees role in Nordic consolidation, no current plans
* Says Gjensidige a predictable owner
* Euro zone periphery exposure is not a worry
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By Camilla Knudsen
OSLO, Dec 10 (Reuters) - Norwegian life insurer Storebrand aims to pay a dividend for the first time in three years when its 2010 accounts are finalised, partly in response to more buoyant financial markets, the firm's chief executive told Reuters.
"We haven't so far seen anything that indicates that 2010 will be an unusual year, like 2009 was, so that means that one must be able to expect a dividend payment," CEO Idar Kreutzer said.
Storebrand paid no dividends for 2008 or 2009 because of the financial crisis.
Analysts polled by Thomson Reuters StarMine SmartEstimates currently predict a dividend for the year, to be paid in 2011, of 0.84 Norwegian crowns per share.
Property and casualty insurer Gjensidige, which holds a 24 percent stake in Storebrand, on Friday completed an initial public offering that has prompted speculation it wants to buy the company outright.
The two broke off merger talks in early 2009, though that did not prevent investors from debating the merits of a union.
Kreutzer has since refrained from commenting on the issue, even if he continues to believe in consolidation.
"I don't want to contribute to those speculations. Gjensidige is a large, professional and predictable owner of Storebrand and we operate well with Gjensidige as a big owner. If something else comes up, I'm sure it'll be handled properly," he said.
New capital requirements for insurers, yet to be finalised, could spur industry mergers, according to Storebrand, as firms seek to spread risk and cut costs.
"The Solvency II (rules) will in my judgement strengthen the arguments for further consolidation in the markets. This is connected to the diversification effect on insurance risk, and a cost efficiency effect through synergies," Kreutzer said.
But Storebrand has no immediate plans.
"We have good growth opportunities from our current base in Norway and Sweden ... so we don't have to do anything and we have no acquisition plans for the near future."
"But at the same time Storebrand now has a structure that makes it natural that we can play a role in future consolidation in our market."
BOND YIELD HOPES
Storebrand invests clients' premiums in stocks, bonds and other assets to finance future pensions and insurance payouts. It found record-low government bond yields and weak equities hard to handle, but now eyes improvement.
"The visible elements so far are that financial markets have gone in the right direction during the quarter. It's particularly important that interest rates gradually rise, and we've seen that through the quarter," the CEO said.
He declined to comment specifically on fourth-quarter results.
Storebrand's portfolio also includes bonds issued in the troubled parts of the euro zone but Kreutzer said he saw no reason to worry.
"We're underweighted in relation to the most heavily exposed countries, but we do hold (bonds) in all the economies. It's not an exposure that I consider problematic for Storebrand, neither in terms of downside risk nor the ongoing return on investment."
(Editing by Jane Merriman)