In December 2018, the Norwegian parliament (Stortinget) ratified new tax rules for insurance and pension companies effective as of 1 January 2018. The changes imply that customer assets for life insurance companies will be tax neutral at the end of the year. Shareholders' part of the result will be taxed in accordance with ordinary tax rules. This will significantly reduce tax risk and volatility for the Group.
Storebrand has previously booked a deferred tax liability due to the differences between mark to market values and tax values associated with real estate owned by the customer portfolios. The deferred tax liability will be reversed in accordance with the transitional rules, creating a clearer separation between customer assets and shareholders assets. The change affects the full accounting year 2018 and leads to a tax income of approximately NOK 1.6 billion for the Group in the fourth quarter. In isolation, the change will increase the calculated solvency ratio with approximately 6 percentage points. The change will have no effects for customers.
The tax income is a technical consequence of changed tax legislation. The Board will propose a dividend based on result after tax in accordance with the dividend policy, but adjusted for the extraordinary tax income described above.
Kjetil Ramberg Krøkje, Head of Investor Relations. [email protected] T: +47 934 12 155
Storebrand's ambition is to be the best provider of saving for pensions. Storebrand will deliver sustainable solutions adapted to the customer's individual situation, so that each person receives a better pension in a more sustainable world. Storebrand has about 40.000 corporate customers and 1.9 million individual customers, and is headquartered in Lysaker outside of Oslo, Norway. Storebrand manages NOK 700 bn and is Norway's largest asset manager. We work hard to reach our vision: Recommended by our customers. Storebrand (STB) is listed on Oslo Stock Exchange.
Visit us at www.storebrand.no and follow us on twitter: @Storebrand_no
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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