NORWAY'S STOREBRAND HIT BY PROPOSED TAX RELIEF CHANGES

The share price of Norwegian assurer Storebrand fell by nearly 4% yesterday, in a flat market, on the news that the Norwegian Ministry of Finance was proposing a 28% tax on equity income for life assurers. Such income is currently untaxed. The ministry has said that it will seek public comment on its plan, which would also permit insurers to claim a deduction for losses of capital on equity investments. The tax would only apply to income and capital gains on equities held on the accounts of personal stakeholders, and not to shares held on life assurance companies' own accounts. Storebrand said yesterday that "longer term this will have a negative impact on the result development in the life insurance company and the value of insurance contracts".