STOREBRAND 
By The Ministry of Finance has circulated a consultation proposal to limit the tax exemption on equities etc. owned by life insurance companies and pension providers (http://www.regjeringen.no/nb/dep/fin/dok/hoeringer/hoeringsdok/2011/:
http://www.regjeringen.no/nb/dep/fin/dok/hoeringer/hoeringsdok/2011/). The exemption method as it is currently designed entails that life insurance companies can get a tax charge when the value of equities within the EEC-area decreases and a tax income when the value of equities within the EEC-area increases.
Storebrand will with the proposed amendment be subject to an effective tax charge of up to 28 percent. Longer term this will have a negative impact on the result development in the life insurance company and the value of the insurance contracts ("embedded value"). Similarly, the proposed amendment will have a positive impact by reducing a potential tax charge if the value of equities decreases. The effect will depend on the equity proportion, the development in the equity markets and the use of the tax loss carried forward.
As of 31 December 2010 Storebrand had losses and allowances carried forward of NOK 11.5 billion and a basis for a net deferred tax assets of NOK 5.7 billion (Storebrand annual report 2010, note 26). As a consequence of the fall in the equity markets in 2011 losses carried forward has been reduced. The deferred tax asset may be recognised in the balance sheet. The deferred tax asset is not included in the capital base for solvency and capital adequacy under the current legislation.
Storebrand will release results for Q4 2011 on 14 February 2012 and will in connection to the release provide further details on the effects of the proposed amendments to the tax legislation for the Storebrand Group.
Lysaker, 2 January 2012
Contacts:
EVP Corporate Communications Egil Thompson: Mobile (+47) 93 48 00 12
Head of Investor Relations Trond Finn Eriksen: Mobile (+47) 99 16 4135
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
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Source: Storebrand ASA via Thomson Reuters ONE
