OSLO, March 28 Norwegian bank DNB's
insurance arm will have to strengthen its reserves by 13.3
billion crowns ($2.2 billion) because of increased life
expectancy, in line with its previous guidance, the bank said on
It added that it had already set aside 5.5 billion crown as
of Dec 31 and the government's new proposal would mean that
surplus return in one contract cannot be used to strengthen
reserves on other contracts, indicating an opposition to the
so-called 'solidarity principle'.
"With respect to provisions for higher life expectancy, DNB
Livsforsikring has applied for a 15-year escalation period if
the solidarity principle was not approved," it said.
"A 15-year escalation period is expected to result in a
shareholder contribution of approximately 20 percent, which is
roughly the same as if a 5-year escalation period and the
solidarity principle had been applied," it added.
(Reporting by Balazs Koranyi)