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Norway's Storebrand Q1 earnings beat forecasts
May 7, 2014 / 5:41 AM / 4 years ago

Norway's Storebrand Q1 earnings beat forecasts

OSLO, May 7 (Reuters) - Norwegian insurer Storebrand posted first-quarter earnings above expectations on Wednesday but said low interest rates were a challenge and rules on longer life expectancy would weigh on its long term outlook.

Its group profit rose 32 percent to 728 million crowns ($123.07 million), beating expectations for 585 million crowns in a Reuters poll of analysts.

“Low interest rates are challenging for insurance companies that have to cover an annual interest rate guarantee,” it said in a statement. “Growth is still expected in Storebrand’s core markets, driven by low unemployment and good wage growth.”

“Storebrand’s results will during the period from 2014 to 2020 be reduced by a minimum of 20 percent of the costs associated with the build-up of reserves for expected increased longevity,” Storebrand added. ($1 = 5.9152 Norwegian Krones) (Reporting by Balazs Koranyi, editing by Terje Solsvik)

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