S&P: Storebrand to negative

Standard & Poor's said it revised the outlooks on Storebrand Livsforsikring and Storebrand ASA to negative from stable.

The agency also said it revised the outlook on Storebrand Bank to negative from stable.

The agency also said it affirmed the financial strength and issuer credit ratings on Storebrand Livsforsikring at A-. Storebrand ASA's ratings were affirmed at BBB and the issuer credit rating on Storebrand Bank at BBB+.

All of the debt ratings were affirmed.

The outlook revision follows news of Norwegian regulator Finanstilsynet's new mortality tables for collective pension insurance, S&P said.

The new tables are materially more onerous for insurers than previously expected, the agency said.

As a result, S&P said it expects this to reduce Storebrand's earnings and its ability to absorb future adverse developments while maintaining adequate capitalization.

Storebrand's capitalization is good, but it is a relative weakness to the rating, according to the agency's risk-based capital model.

S&P also said it thinks that earnings in 2013 could come under pressure, especially if the previously-inflated performance of the Swedish risk business returns to normal.

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