Annual Report Summary. Handelsbanken Liv

Transcription

1 Annual Report 2002 Summary Handelsbanken Liv

2 Highlights of the year Handelsbanken Liv Annual Report Highlights of the year JANUARY Handelsbanken Liv demutualises Traditional life insurance (with a guaranteed return) and unit-linked insurance are placed in the same company. A preliminary bonus rate is replaced by actual returns. The collective risk reserve is discontinued. Owners rather than policyholders are now responsible for risk capital. APRIL Handelsbanken Liv introduces transfer rights for private customers and contractual pensions. Transfer rights allow our private and contractual pension customers to transfer their capital to another life insurance provider or to change management form within Handelsbanken Liv. SEPTEMBER Launch of Garantikapitalspar the first new product in the demutualised company. This is an endowment insurance with a guaranteed return and repayment cover. Can be taken out for three different purposes: investment, savings, or inheritance and gift. OCTOBER Handelsbanken Liv acquires property. Handelsbanken Liv acquires the property adjacent to the head office on Torsgatan in Stockholm and thus becomes owner of the entire Läkaren block. A multi-year rental contract is signed with the property s previous owner, Arla.

3 Contents Handelsbanken Liv Annual Report 2002 Contents Highlights of the year 1 President s comments 2 Strategic direction 4 Five-year summary 5 Report of the Board of Directors 6 Profit and loss account 9 Balance sheet 10 The Board of Directors 12 Executive management 13 The market share of new endowment insurance business to 12.7% (10.6). The overall market decreased by 40%. The market share for new private pension insurance business increased to 13.4% (13). The overall market decreased by 25%. In the state employees new pension agreement, PA03, Handelsbanken Liv was selected by 9.7% of those who made active selections. This put Handelsbanken Liv in third place among the companies chosen. KEY FIGURES Premiums written, SEK million Guaranteed rate 2,490 2,350 2,260 2,194 1,818 Unit-linked insurance 2,758 3,528 6,735 4,689 3,248 Total 5,248 5,878 8,995 6,883 5,066 Managed assets, SEK million Guaranteed rate 18,761 20,003 20,264 19,862 16,034 Unit-linked insurance 12,693 16,733 16,951 13,456 6,395 Total 31,454 36,736 37,215 33,318 22,429 Total return, % (Insurance with guaranteed return) Average total return : 6.2%. In terms of the value of new business, Handelsbanken Liv, together with its sister company SPP, is the second-largest insurance company in Sweden, with a market share of 18%. This document is an abbreviated version of Handelsbanken Liv s complete Annual Report for 2002 published in Swedish. Head office: Handelsbanken Liv Torsgatan 12 Box 1325 SE Stockholm, Sweden Telephone: Fax:

4 President s comments Handelsbanken Liv Annual Report 2002 President s comments Increased co-operation with SPP will cut costs and result in a more efficient sales organisation in 2003 On 1 January 2002, Handelsbanken Liv Försäkringsaktiebolag and Handelsbanken Liv Fondförsäkringsaktiebolag were combined to create the first demutualised life insurance company in Sweden. On 1 April, Handelsbanken Liv also became the first company in Sweden to allow its private customers and customers with contractual pensions to transfer insurance capital to another insurance provider. At the same time, private and corporate customers were given the right to transfer their insurance capital between unit-linked insurance and insurance with a guaranteed return. This marked the end of the conversion process that began when the new Insurance Business Act came into effect on 1 January Fairness through demutualisation The severe decline in the stock market during 2002 led to a decrease in the value of life insurance companies assets. The consequences of this will be long term. When the stock market starts to recover, policyholders who save in mutual companies will have to forego a significant portion of their returns over a long period so that the collective risk capital can be rebuilt. According to our new model, each customer s insurance capital is individual and develops entirely in line with the total return, but with the guaranteed capital as a lower limit. So our customers need not relinquish any portion of future returns to rebuild the collective risk capital. Such capital will not be required. Instead, our owner, Handelsbanken, has contributed SEK 1.5 billion in shareholders equity and is thus responsible for the required solvency in the company. This, together with the freedom of choice and products we can offer, has impressed the market. In the past year we saw a 6% increase in premiums for insurance with a guaranteed rate, while the market declined by 10%. President, Barbro Johansson Severe stock market decline Despite the heavy falls in the stock market, total return for 2002 remained at 7.4% ( 2.1). This is a return that stands strong compared to the industry average of 9.7% ( 2.7). So we also achieved our objective of having a return that outperformed the industry average. Our negative return was limited by significant re-weighting from equities to bonds and short fixed-income instruments. During the autumn, we also increased our real estate holdings by acquiring the Arla property on Torsgatan in Stockholm, with an annual yield of more than 7%. Rising disability insurance costs Difficulties in 2002 were not confined to the stock market. The year also saw a substantial rise in long-term sick leave in Sweden. The costs of the social insurance system are now showing a steep and rising curve. Obviously, this is a major social problem, but it also has a very tangible impact on our costs in Handelsbanken Liv. For example, the result for 2

5 President s comments Handelsbanken Liv Annual Report 2002 to costs for finalising conversion to a profit-distributing, demutualised company and to the introduction of transfer rights. A positive operating result is an important factor for long-term development of operations. This requires lower costs which can only be achieved through more efficient systems and routines and higher volumes. In 2003, we will therefore increase our co-operation with our sister company, SPP, in terms of sales and administration. I am convinced that this co-operation will cut costs and result in a more efficient sales organisation for both companies in the risk business deteriorated significantly. This will lead to substantial increases in disability insurance premiums in Another reason for the negative risk result is that the number of death benefit claims paid by the group life insurance business grew appreciably. This is because the average age in the group has increased and this is a process that has accelerated in recent years. Earlier, we used a steady, flat-rate premium so that, in principle, policyholders paid the same premium regardless of age and gender. This translated to high premiums for younger age groups and excessively low premiums for those who are a little older. To create sound, balanced disability and life insurance business, these premiums will be re-aligned to a natural premium in A natural premium means that individual premiums will be set based on age and gender. Simplicity creates satisfied customers. Managing policyholders capital and making it grow is a major responsibility. Moreover, traditionally our industry has been unnecessarily complicated for our customers to assess. Knowing where you should purchase your insurance and from which company has not been easy. The changes we implemented in 2002 make it easier and clearer for customers to choose Handelsbanken Liv and to give us their continued confidence. Satisfied customers are critical for the company s growth, which is why we value customer index surveys. We are proud that the 2002 survey customers placed Handelsbanken Liv at the absolute top level. A company is nothing without its customers, but it totally depends on its employees. Our reorganisation during the year would have been impossible without their excellent efforts. Stockholm, February 2003 Lower costs and higher efficiency The administrative result for the year as a whole was negative: SEK 16 million. Among other things, this is due Barbro Johansson 3

6 Strategic direction Handelsbanken Liv Annual Report 2002 Strategic direction Insurance is an important growth area for the Handelsbanken Group. This is due to changes in the national pension system and in the occupational pension sector, which generate greater savings in the competitive segment of the insurance market. In addition, endowment insurance is a natural and important part of investment and wealth management. good growth of customers insurance capital, this also requires customer focus. Our core values, simplicity, a personal approach and freedom, must permeate our work and form the foundation on which we build our customer relations. We want our customers to feel they get a little more than they expected from a contact with Handelsbanken Liv. Our aim is to have the highest number of satisfied customers of any life insurance company in Sweden. Together with SPP, Handelsbanken Liv is responsible for insurance business within the Group. Together we cover the needs of current and potential customers for wealth management solutions, occupational and private pension savings, and risk insurance in competition with other insurance companies in the market. OUR OBJECTIVES Positive contribution to profitability. Handelsbanken Liv is part of the Handelsbanken Group where life insurance is a core business. Similarly, the objectives, policies and organisation in Handelsbanken also make up the basis of our operations. Handelsbanken Liv s objective, as a demutualised company that is fully consolidated in the Group, is to make a positive contribution to the Group s profitability. This will be achieved through satisfied customers, good cost control and a satisfactory total return. Stimulating working environment For Handelsbanken Liv to succeed in its efforts, the company must have competent, committed employees. So an important objective is to create a working environment and atmosphere in which all employees are encouraged to think independently, take the initiative and seek further development. As in the rest of the Group, Handelsbanken Liv will work in a decentralised way with clearly defined responsibilities and authority. Financial control and follow-up are required to support this. OUR STRATEGIES A full-range company Together with SPP, Handelsbanken Liv will offer a full range of life insurance products. Handelsbanken Liv s products and services are offered primarily to the Bank s existing and future customers, and sales are made in cooperation with the branch offices. Cost effectiveness The Swedish life insurance market is becoming increasingly competitive. Our cost levels are important for our ability to offer our customers competitive terms. A wellmanaged, cost-effective company has more satisfied customers. So one of our objectives is to have lower operating expenses than our competitors. Good profitability in Handelsbanken Liv, and good growth of our customers insurance capital, require the company s total return on insurance with guaranteed rates to exceed the guaranteed commitment. The objective is that our total return should exceed the average for other life insurance companies in Sweden. Simplicity, a personal approach and freedom In order for us to create growth and profitability, our customers must be satisfied with our performance. Besides Joint organisation With the aim of raising efficiency and broadening expertise within the Group s insurance operations, the integration between Handelsbanken Liv and SPP will continue, and a new organisation will be established in early March The basis of the new organisation will be a joint sales organisation that builds on close co-operation with Handelsbanken s branch offices. Part of the universal bank concept The Nordic countries are the home market of the Handelsbanken Group. For Handelsbanken Liv, this means that we are part of a universal bank concept that extends to the other Nordic countries. Since the build-up of our operations is co-ordinated with the Bank s development in each country, the product range is not always as fully developed as in Sweden. 4

7 Five-year summary Handelsbanken Liv Annual Report 2002 Five-year summary SEK million EXTRACT FROM PROFIT AND LOSS ACCOUNT Premiums written 5,248 3,528 6,735 4,689 3,248 Investment income 1, Claims incurred 3,120 1,301 1, Balance on the technical account, life insurance business Net profit/loss for the year FINANCIAL POSITION INVESTMENTS Buildings and land 1,320 Shares and participations 3, Bonds and other fixed-income securities 13, Other financial investments 28 Total investments 18, Investments for which the life insurance policyholders bear the risk 12,651 16,733 16,951 13,456 6,395 Technical provisions for life insurance where the policyholders bear the risk 12,863 16,733 16,951 13,456 6,395 Technical provisions 18,590 FUNDING CAPITAL Shareholders equity 2,494 1, Deferred tax Total funding capital 2,955 1, KEY RATIOS Expense ratio, % Administrative expense ratio, % Total return, savings insurance with guaranteed rate, % 7.4 As of 1 January 2002, the traditional, demutualised life insurance operations and the unit-linked insurance operations were combined in the same company. Previously, traditional insurance operations were conducted in a separate company. Comparative figures for apply solely to the unit-linked insurance operations. It is impossible to recalculate comparative figures for to show results for the mutually operated traditional insurance operations as a demutualised entity during this period. 5

8 Report of the Board of Directors Handelsbanken Liv Annual Report 2002 Report of the Board of Directors The Board of Directors of Handelsbanken Liv Försäkringsaktiebolag (publ), corporate identity number (Handelsbanken Liv) hereby submits the annual report for 2002, the company s twelfth financial year. General The company is a wholly owned subsidiary of Svenska Handelsbanken (publ), corporate identity number (Handelsbanken). With effect from 2002, the company conducts both life insurance operations with management in securities funds and life insurance operations with guaranteed rates. Policyholders unit-linked insurance savings are mainly invested in Handelsbanken s funds. The company s name is being changed from Handelsbanken Liv Fondförsäkrings AB to Handelsbanken Liv Försäkrings AB. Handelsbanken Liv purchases IT and asset management services from Handelsbanken in accordance with agreements. The life insurance market in Sweden Premiums written in Sweden for new life insurance business amounted to SEK 28 billion (39) in This is a reduction of 28% compared with Total premiums written, including renewals, amounted to SEK 94 billion (104). Handelsbanken Liv s total premiums written in Sweden amounted to SEK 4,928 million (5,676). Measured in premiums written, market share was 5.3% (5.4). Other Nordic countries Within the framework of Handelsbanken s universal bank concept, life insurance is a natural part of the Bank s product range in the Nordic region. Sales of savings insurance products are conducted through the subsidiary SHB Liv Forsikringsaktieselskab (SHB Liv) in Denmark. SHB Liv conducts operations through branch offices in Finland and Norway. Sales of risk insurance in Norway are conducted via a branch office, while sales in Denmark and Finland are handled as cross-border operations from Sweden and comprise various group life insurance solutions. Premiums written in other Nordic countries amounted to SEK 320 million (203), of which Norway accounted for SEK 266 million (173), Finland for SEK 53 million (30) and Denmark for SEK 1 million (0). Portfolio transfer An amended Swedish Insurance Business Act came into affect on 1 January Under the new act traditional life insurance companies can be converted into demutualised operations, and unit-linked and traditional life insurance operations can be conducted within the same company. The act also gives insurance customers transfer rights. In autumn 2000, Handelsbanken Liv Försäkrings AB, corporate identity number , wrote to all its customers with voting rights, approximately 260,000, and explained the consequences of demutualisation. The reply rate was high with approximately 80% of all customers showing an active interest by voting. 97.8% of these were in favour of the proposed demutualisation. In April 2001, the Swedish government approved the company s conversion into a demutualised, profit-distributing life insurance company. On 1 January 2002, Handelsbanken Liv Försäkrings AB transferred its entire insurance portfolio to Handelsbanken Liv Fondförsäkringsaktiebolag which has subsequently conducted insurance with guaranteed rates and unit-linked insurance in the same company. Transfer rights On 1 April 2002, Handelsbanken Liv introduced transfer rights for its private savers and contractual pension customers. At the same time all customers were given the right to switch management form between unit-linked insurance and insurance at guaranteed rates and vice versa. Asset management Asset management is conducted in two different portfolios. The portion of investments attributable to savings customers assets at a guaranteed rate is placed in a portfolio made up of fixed-income securities, equities and real estate. The allocation between the different asset classes is 6

9 Report of the Board of Directors Handelsbanken Liv Annual Report 2002 decided on the basis of liabilities and confidence in development in the financial markets. The portion of investments not attributable to savings customers assets at a guaranteed rate or unit-linked insurance is mainly placed in fixed-income securities. Savings customers investments Total return amounted to 7.4% (-2.1). The average total return over the last five years amounted to 6.2% was characterised by severe stock market downturns while interest rates fell. For this reason, in the summer and early autumn Handelsbanken Liv significantly reduced the proportion of equities in the portfolio in favour of fixed-income securities. In anticipation of a negative development for the US dollar, all currency exposure was phased out. Within fixed-income management the foreign fixed-income portfolio was sold and replaced with Swedish fixed-income investments. In equities management, all positions in foreign currency were hedged. There was concern that the Swedish Financial Supervisory Authority would reduced the highest permitted discount rate used when calculating life insurance provisions which would have tangible effects on all life insurance companies. At the same time, believing that market interest rates will rise, Handelsbanken Liv chose relatively short durations for its fixed-income investments. In late autumn, equity exposure was cautiously increased again when signs of recovery could be detected in the market. Hedging of investments currency effect continued. At the beginning of October 2002, Handelsbanken Liv purchased Arla s property, Läkaren 9, on Torsgatan in Stockholm and signed a ten-year rental agreement with Arla. Handelsbanken Liv already owns the adjacent property where the company has its head office. The real estate portfolio consists of properties located in Stockholm s inner city. SPP As a step towards a future joint organisation for Handelsbanken Liv and SPP, the companies co-ordinated their asset management activities through the formation of a joint organisation tasked to monitor and reallocate the two companies investments. This integration will continue in On 1 March 2003, Handelsbanken Liv and SPP formed a joint organisation that reflects Handelsbanken s decentralised organisation. The sales organisations are being merged and seven regional managers will be appointed. The regional managers will be responsible for all operations in their regions. Two new units are being started to support the regions: Business Support Private and Business Support Corporate. The companies development units and administrative functions will also be merged. Handelsbanken Liv s subsidiary Handelsbanken Varumärkes AB (HVA) owns the rights to the SPP brand. In 2001 and 2002 SPP paid a licensing fee for the use of the brand. Transactions between mutual life insurance companies and their owners have been the subject of discussion recently. Although the brand fee is of a completely different nature, HVA will no longer debit others for use of the SPP brand. Tax The company pays a standard yield tax on the assets managed on behalf of policyholders. Return on equity and the surplus result for risk insurance are taxed with regular corporate tax of 28%. The Group s tax expense amounted to SEK 313 million (164). Results The loss after tax rose from SEK 78 million to SEK 222. The less favourable result was largely due to the fact that Handelsbanken Liv covered policyholders guaranteed values with more than SEK 100 million. This was due to 7

10 Report of the Board of Directors Handelsbanken Liv Annual Report 2002 the negative total return. The deterioration in earnings was due to the negative result in the risk business. In 2003 premiums for disability insurance will be raised by an average of 65%. A new premium structure has been introduced for group life insurance where premiums are based on age and gender. A flat-rate premium was previously applied. Solvency The solvency ratio for the parent company amounted to 1.26 at 31 December In conjunction with the portfolio transfer on 1 January 2002, Handelsbanken provided SEK 1,100 million in the form of a shareholders contribution. The size of the contribution was determined on the basis of the company itself being able to cope with financial strain, and being able to increase sales, without the need for additional shareholders equity. The target for the solvency ratio is 1.3. The total return pertains to assets managed for savings customers with a guaranteed rate. Return is calculated according to the principles for time-weighted return. These calculations are performed in accordance with Global Investment Performance Standards (GIPS). The basis used in the calculation is the value development of all holdings adjusted for cash flows. The calculation is performed on a daily basis. Return is calculated after deduction for asset management charges. Total return (%) Fixed-income 7.1 Equities 36.8 Real estate 6.1 Other Total 7.4 8

11 Profit and loss account Handelsbanken Liv Annual Report 2002 Profit and loss account Group Parent company SEK thousand TECHNICAL ACCOUNT, LIFE INSURANCE BUSINESS Premiums written (net of reinsurance) 5,247,942 3,527,849 5,009,368 3,362,671 Investment income 1,525, ,135 1,511, ,388 Unrealised gains on investments 232, ,583 Other technical income 89,567 50,000 Claims incurred (net of reinsurance) 3,119,876 1,301,466 3,076,840 1,271,194 Change in technical provisions 5,027, ,850 5,013, ,056 Operating expenses 341,728 80, ,175 69,764 Investment charges 1,607,930 1,607,894 Unrealised losses on investments 1,210,053 1,210,053 Decrease in value of investments where investment risk is borne by the policyholders 5,563,914 2,489,710 5,355,027 2,383,366 Other technical charges 156, ,000 6,483 Investment income transferred to finance business 36,726 36,726 Balance on the technical account, life insurance business 159, , , ,791 NON-TECHNICAL ACCOUNT Balance on the technical account, life insurance business 159, , , ,791 Investment income 58,562 19,115 55,354 17,149 Unrealised gains on investments 12,641 8,774 11,911 8,149 Investment income transferred from life insurance business 36,726 36,726 Investment charges 102, ,559 12,219 31,373 Appropriations 10,541 Profit before taxes 91,714 85, , ,257 Tax 313, , , ,439 NET PROFIT/LOSS FOR THE YEAR 221,505 78, ,595 75,818 9

12 Balance sheet Handelsbanken Liv Annual Report 2002 Balance sheet Group Parent company SEK thousand ASSETS Intangible assets Other intangible assets 2,725,000 2,875,000 Investments Land and buildings 1,320, ,000 Shares and participations in group companies 1,451,280 34,915 Loans to group companies 140,000 Shares and participations 3,543,422 17,142 3,542,937 11,834 Bonds and other fixed-income securities 13,561, ,503 13,547, ,020 Other loans Derivatives 33,666 33,666 18,458, ,645 19,056, ,769 Investments for the benefit of life insurance policyholder who bear the investment risk 12,651,137 16,733,242 11,819,323 15,925,700 Reinsurers share of technical provisions Claims outstanding 57,122 57,122 Receivables Receivables arising out of direct insurance operations 18,019 18,019 Receivables arising out of reinsurance operations 6,930 6,930 Other receivables 529,828 1,479, , , ,777 1,479, , ,812 Other assets Tangible assets 9, ,845 0 Cash at bank and in hand 2,136, ,153 2,058, ,193 Other assets ,146, ,860 2,068, ,877 Prepayments and accrued income Accrued interest income 222, , Deferred acquisition costs 34,150 40,790 34,150 40,790 Other prepayments and accrued income 8,328 1,546 6, ,729 42, ,565 40,851 Total assets 36,857,858 21,753,717 33,402,894 16,666,009 10

13 Balance sheet Handelsbanken Liv Annual Report 2002 Group Parent company SEK thousand SHAREHOLDERS EQUITY, PROVISIONS AND LIABILITIES Shareholders equity Share capital, 100,000 shares par value of SEK 1, , , , ,000 Statutory reserve 20,000 20,000 20,000 20,000 Reserve for unrealised gains 108,253 5, ,253 5,537 Other restricted reserves 1,115, ,437 Profit brought forward 1,372, ,471 1,284, ,955 Net profit/loss for the year 221,505 78, ,595 75,818 2,494,314 1,261,003 1,399, ,310 Technical provisions (gross) Life insurance provisions 17,849,544 17,849,544 Provisions for claims outstanding 740, ,752 18,590,296 18,590,296 Provisions for life insurance where the investment risk is borne by the policyholder Conditional bonuses 170, ,553 Unit-linked insurance commitments 12,692,729 16,733,241 11,858,799 15,925,700 12,863,282 16,733,241 12,029,352 15,925,700 Provisions for other risks and charges Provisions for taxes 489, ,626 31, ,188 Liabilities Liabilities arising out of direct insurance operations 144, ,685 Liabilities arising out of reinsurance operations 39,423 39,423 Derivatives 6,858 6,858 Other liabilities 2,174,481 3,238,643 1,126, ,023 2,365,447 3,238,643 1,317, ,023 Accruals and deferred income Other accruals and deferred income 54,992 47,204 35,024 33,788 Total shareholders equity, provisions and liabilities 36,857,858 21,753,717 33,402,894 16,666,009 Pledges and comparable collateral for own liabilities and for commitments for provisions Assets for which policyholders have beneficiary rights 32,551,133 15,937,534 31,718,835 15,937,534 Other pledged assets and comparable collateral Cash account pledged as collateral for option deals via OM 4,016 4,016 Shares out on loan 80,697 80,697 Other commitments 1,798,548 1,798,548 11

14 The Board of Directors Handelsbanken Liv Annual Report 2002 The Board of Directors Björn C Andersson Ann Christine Hutton Forsberg Robert Ihse Barbro Johansson Ingvar Lessnert Thommy Mossinger Stefan Nilsson Magnus Uggla Björn C Andersson born 1946 Chairman Executive Vice President of Handelsbanken Head of Handelsbanken Asset Management Member since 1990 Ingvar Lessnert born 1950 Employee representative Ann Christine Hutton Forsberg born 1957 Head of Administration Odlander, Fredrikson & Co AB, Elected by the Swedish Financial Supervisory Authority Member since 2001 Thommy Mossinger born 1951 Executive Vice President of Handelsbanken Head of Southern Sweden Regional Bank Member since 2001 Robert Ihse born 1967 Employee representative Stefan Nilsson born 1957 President of SPP Member since 1998 Barbro Johansson born 1944 President of Handelsbanken Liv Member since 1990 Magnus Uggla born 1952 Executive Vice President of Handelsbanken Head of Stockholm City Regional Bank Member since

15 Executive management Handelsbanken Liv Annual Report 2002 Executive management Bo Engström Göran Holgerson Barbro Johansson Stefan Jansson Johan Lagerström Bernt Lönegren Anders Nehrman Elisabeth Norberg Lennart Olsson Catharina Rådsten Bo Engström born 1955 Head of Administration since 2001 Johan Lagerström born 1961 Head of Corporate Communications since 2002 Göran Holgerson born 1960 Executive Vice President since 1995 Bernt Lönegren born 1946 Chief Actuary since 1996 Lennart Olsson born 1953 Head of Operations since 1995 Barbro Johansson born 1944 President of Handelsbanken Liv since 1998 Anders Nehrman born 1945 Head of Legal Affairs since 1979 Catharina Rådsten born 1946 Head of Human Resources since 1985 Stefan Jansson born 1965 Head of Business Development since 2000 Elisabeth Norberg born 1950 Head of Operations since 1990 Photography: Elisabeth Ohlson-Wallin 13

16 Handelsbanken Liv was demutualised on 1 January This gives our customers greater security, freedom and fairness. Greater security because our owners, rather than the policyholders themselves, are responsible for the risk capital. Greater freedom because both private and contractual pension customers have transfer rights. Greater fairness since we do not have a shared risk reserve that must be maintained by requiring policyholders to forego returns. We offer long-term savings and insurance products in the private market. Customers can choose between insurance with a guaranteed return or unit-linked insurance. Policyholders capital in a guaranteed insurance plan grows at a guaranteed rate. This provides basic financial security. There are also opportunities for additional bonuses. These are calculated individually for each policyholder. If the total return is higher than the guaranteed rate, the surplus is divided so that the policyholder receives 90 % and the company 10 %. Long-term savings can be combined with various types of risk insurance such as survivorship protection. The advantage here is in having insurance protection while capital is built up. We sell our products via Handelsbanken s branch offices supported by our insurance advisers. This means that our customers have their insurance contact at their local Handelsbanken branch which gives them access to insurance advice as part of the personal financial advice offered by the Bank. Since Handelsbanken has a network of some 450 branches throughout Sweden, customers can obtain this service close to home. Handelsbanken Liv