Fitch rates Storebrand

Fitch Ratings said it assigned Norwegian life insurer Storebrand Livsforsikring an insurer financial strength rating of A and a long-term rating of BBB+.

The outlook is negative.

Fitch said the ratings reflect Storebrand's leading position within the Norwegian market where it manages 28% of the total life investments.

Fitch believes that legislative changes in the Norwegian long-term savings market should assist Storebrand's growth. Defined contribution products were recently approved in Norway and Norwegian municipalities have also opened up their pension provision to competition for the first time. Storebrand has enjoyed initial success in exploiting both of these new markets.

Storebrand also benefits from a low cost base and a highly skilled workforce. Fitch said it is, however, concerned that falling interest rates could reduce Storebrand capacity to generate fresh capital and so rebuild its capital base, which has been weakened by the investment market falls of 2001 and 2002.

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