Norwegian insurance group Storebrand said Wednesday it would not pay dividends to its shareholders despite returning to profit last year following massive losses in 2008.
The company made a net profit of 928 million kroner (116 million euros, 159 million dollars) in 2009 following a loss of 2.23 billion kroner in 2008.
“In a year characterised by major market fluctuations, Storebrand delivered a good result for its customers and owners,” chief executive Idar Kreutzer was quoted as saying in the earnings report.
Storebrand said it would not be paying dividends so as to strengthen its financial stability and reduce debts. “The work on streamlining operations and reducing costs will continue,” the report added.
Storebrand shares were up 1.73 percent on the Oslo stock exchange following the announcement, while the market’s main index was up just 0.26 percent.
