STOCKHOLM, Sweden, Feb. 15, 2002 (PRIMEZONE) -- In 2001, SPP advanced to become the next largest company in the competitive life insurance market measured in terms of value of new business. Since 1995, SPP has the highest increase in market share among companies in the rapidly growing competitive occupational pension market. SPP's premium income grew by 26 percent in 2001 and the average annual growth has been 23 percent in the last five years.
"SPP has been so successful because when we started the company in 1994, we decided at the outset to focus on the occupational pension market. We believed the market would have a strong and stable growth. This market grows, due to such factors as increases in real wages, even when other markets fall," said Anders Ostryd, President of SPP, in connection with the Swedish Insurance Federation's annual report.
"In 2001, the value of new business in the occupational pension market was SEK 101bn, which represents 65 percent of the entire life insurance market as opposed to 40 percent only two years ago. SPP has gone from a market share of 7 percent in 1995 to 20 percent in 2001," said Ostryd.
Market share of new business in percent, 1995-2001 (occupational pensions exposed to competition)
1995 2001
SPP 7 20
Folksam 2 6
LF 10 8
Skandia 36 29
SEB Trygg 24 12
AMF -- 11
"AMF, which was not in the market in 1995, had a market share of 11 percent last year. This increase is primarily the result of the lowering of the pension age in the collective agreement between the Confederation of Swedish Enterprises and the Swedish Trade Union Confederation, which favoured AMF and Folksam (see diagram)."
"In addition, it is becoming increasingly clear that SPP and Handelsbanken Liv are a good combination. SPP's strength in occupational pensions complements Handelsbanken Liv's strength in capital insurance. Handelsbanken Liv's capital insurance is now being sold in SPP's occupational pension market, and it has had a very positive reception. At the same time, the occupational pension business is organised within SPP and is now marketed by SPP's own organisation directly and through the bank's branch offices. Together, we are the next largest insurer in all markets with 19 percent of the total life insurance market, 22 percent of the occupational pension market, and 26 percent of private pension insurance," said Anders Ostryd.
These diagrams, together with further diagrams, can be viewed in a more reader-friendly format at www.spp.se in the menu "Om SPP" then "Marknad."
SPP is Sweden's next largest insurance company for life and pension insurance measured in terms of new business. We operate in the occupational pension field that is exposed to competition, where employers and employees are free to choose their insurer. We manage approximately SEK 90bn for 23 000 companies and nearly 770 000 insured. Home page: www.spp.se, e-mail: ulf.magnusson@spp.se
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