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  • Norway: Storebrand Subsidiary Sued Over Insurance Contracts 0 comments
    Jun 17, 2010 9:20 AM | about stocks: STB, SPPJY
    The Swedish  subsidiary of Norwegian insurer, Storebrand ASA, (STB) have Wednesday recivied a lawsuit from The Swedish Confederation of Swedish Enterprise, regarding adjustments in pension contracts. The outcome of the lawsuit is of principal importance as the outcome may affect similar contracts.

    “The likelihood of an outcome in favor of the claimant is being low.”
    Storebrand ASA

    The Swedish Confederation of Swedish Enterprise claims SEK 2,5 million from SPP Livförsäkring AB after the insurance firm made adjustments of benefits in pension insurance contracts, Storebrand ASA says in a market statement.

    “The lawsuit is regarding indexations of the insurance contracts, and is of principal importance as the outcome may affect similar contracts within the DB portfolio,”
    Storebrand (STB) writes.

    SPP Livförsäkring AB is Storebrand’s Swedish life and pensions subsidiary, and have Wednesday received a lawsuit from Svenskt Näringsliv (The Swedish Confederation of Swedish Enterprises) regarding the interpretation of pension adjustments in the Defined Benefit (NYSE:DB) portfolio, Storebrand explains.

    Svensk Näringsliv clamis SEK 2,5 million after the adjustments in the insurance contracts – adjustments they obviously don’t like.

    Of Principal Importance

    But here’s the essential:

    “The lawsuit is regarding indexations of the insurance contracts, and is of principal importance as the outcome may affect similar contracts within the DB portfolio.”

    In fact, not only SPP’s and Storebrand’s contracts can be effected; the term “Defined Benefits” is used in most pension insurance contracts, by most Scandinavian insurance companies.

    Probably also in most European.
    And that makes it really interesting.

    Expects To Win

    However, Storebrand/SPP are pretty confident that they will win the lawsuit:

    “SPP Livförsäkring AB has obtained legal opinions from Swedish law firms, which shares the company‘s view on the likelihood of an outcome in favor of the claimant as being low. SPP Livförsäkring AB will on the basis of this not make any provisions for the claim,”
    the Storebrand management says in the short statement that was released just as markets closed in Oslo this afternoon.

    DnB NOR Lost

    On Tuesday, Norway‘s leading bank, DnB NOR (DNBNOR), lost a principal lawsuit filed against the bank by a private investor who lost all his money after buying structured savings products from the bank. The local court in Oslo concluded that the investor was misled and not sufficiently informed about the risk related with the products.

    A large group of Norwegian private investors are now preparing a class action suit against DnB NOR that could cost the bank NOK 15 billion.

    DnB NOR has appealed the courts ruling.



    Disclosure: no positions
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