Fitch rates Storebrand securities BBB

Fitch Ratings said it assigned Storebrand Livsforsikring's subordinated capital securities a BBB rating, and affirmed its insurer financial strength rating and long-term issuer default rating at A- and BBB+, respectively. The outlook is stable.

The proceeds will be used for general corporate purposes. Fitch said it understands that these securities will contribute to the repayment of the outstanding bridge loan of €470 million that was used to fund the acquisition of the Swedish life pension provider, SPP, in late 2007.

The ratings reflect the company's good results for fiscal year 2007, strong inflow of customers , positive effects of the introduction of the new insurance act in Norway and an enhanced capital structure, the agency said.

Offsetting elements are the group's weaker financial performance in the first quarter of 2008 following adverse movements of financial markets, Fitch said, and some execution risk still pertaining to the acquisition of SPP.

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