Savers with the traditional life insurance policies of Stockholm-based non-mutual life insurance company Handelsbanken Liv saw their capital grow by 7.42% in 2006. This is above the industry average, which, according to Swedish Insurance Federation statistics, was 5.83% during 2006.
According to Handelsbanken, which was demutualized in 2002, this is the fourth consecutive year that its customers have received higher capital growth than the industry average.
The company revealed that, over the last five years, a customer with SEK100,000 in insurance capital with the company has received an increase in value of SEK23,244 before charges and tax. In comparison, the insurance industry average for the same period was just SEK14,769.
Handelsbanken’s return for traditional insurance was 8.24% in 2006, higher than the guaranteed yield of between 3% and 5% depending on the year the policy was taken out. This has resulted in profit sharing between the customers and the company, which have received 90% and 10%, respectively, of the total return. It was this that led to the capital of each individual customer being increased by 7.42%.
According to Handelsbanken, if the return had been lower than the guaranteed rate with a consequent deficit in the guaranteed capital, it would have paid the difference to the customer. The company’s other key figures and results will be reported in conjunction with its annual report on February 20, 2007.