Interim report for the first six months of 2011

Financial position still strong for Folksam and its subsidiaries

–  The strong performance of the business continues,” says President and CEO Anders Sundström. During the first six months of the year, premium volumes increased and we have gained market shares in several areas.

–  Our efforts to provide customers with secure and profitable growth are successful. Folksam Life maintains a high solvency level and is financially strong; at the same time, we provide our customers with one of the highest total returns in the industry.

–  Our ability to manage risk is clear after the recent unease on the financial markets. We are keeping our portfolio strategy unchanged while following the market trend carefully, says Sundström.

Key ratios: The first six months of 2011 compared to the first six months of 2010.

  • Premium volume: The total volume rose 12% to SEK 21.5 (19.2) billion.
  • Market shares: The number of total-service customers is on the rise. General’s market share within car insurance increased to 22.0% (21.3%). Folksam Life is taking shares both within unit-linked insurance and other life insurance, 10.0% (9.5%).
  • Financial strength: All of the Folksam companies are financially strong, even after the recent unease. On 30 June, the solvency ratio was 171% (169%) for KPA Pension and 150% (144%) for Folksam Life. The consolidation ratio for Folksam Sak 118% (102%).
  • Total return: Falling interest rates, a strong share price performance for Swedbank and the property holding gave a return on assets of 3.7% (3.6%) for Folksam Life and 3.9% (2.0%) for Folksam General.
  • Assets under management: As a consequence of a competitive return and a strong net inflow in the life insurance business, total assets under management rose to SEK 281.4 (255.3) billion.
  • Other: An increase in the number of reported claims at the same time as technical problems occurred has, during the spring, brought about a deterioration in availability in parts of the claims-handling business. Powerful measures have been taken.
Folksam and its
subsidiaries, SEKm
2011-06 2010-06 2010 2009 2008 2007
Premiums (1) 21 468 19 173 30 496 29 356 27 158 23 977
Assets under
management (2)
281 366 255 311 268 170 242 646 211 401 183 957
Of which Swedish
equities
60 337 49 337 57 759 44 486 22 856 35 015
Of which properties 15 715 12 607 14 353 12 297 13 753 8 263
Unit-linked
insurance assets (3)
50 921 43 938 49 593 38 158 24 600 26 557
Average number
of employees (4)
2 837 2 835 2 818 2 916 2 934 2 892

1) Premiums comprise earned premiums in non-life insurance, earned premiums in life insurance and payments by unit-linked insurance investors. 2) Assets under management represent assets according to the total return table for the companies less strategic holdings, which principally relate to the value of subsidiaries, plus assets under management in Konsumentkooperationens Pensionsstiftelse and Folksam LO Fonder. 3) Investment assets for which the policyholders bear the risk 4) The average number of employees has been calculated based on the number of hours of work, paid time, relative to a full-time equivalent.

For further information, please contact:

Christopher Casselblad, Investor Relations, Folksam, tel.: +46 8 772 66 34, +46 722-30 20 80

More Folksam reports available on:
http://www.folksam.se/english/reports

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