The Folksam group interim report: Strong six months and continuing challenges

During the first six months, the Folksam group’s total premium volume grew by just over SEK 400 million to SEK 35 billion compared to the same period last year. The growth is mainly driven by collective bargaining agreement based occupational pensions within KPA Pension and Folksam LO Pension that have a strong market position.

The Folksam group’s managed capital increased during the same period by six per cent to SEK 441 billion. The return in Folksam Liv was 6.8 per cent and in KPA Pensionsförsäkring 7.7 per cent.

“These are strong figures, not least in the light of one of our largest investments, Swedbank, having negative development during the period,” says Folksam Group CEO Jens Henriksson. “At the same time as the total premium volumes continue to grow, the increased focus on expenses is providing results and expenses are starting to decrease.”

“When I look ahead, I see that one of the challenges is to increase the pressure in sales so that we grow even more. To succeed, we need to meet needs that are shared by many customers, through partnerships and attractive offers.”

“Another challenge is to continue to focus on digitalisation and regulatory compliance – including work to prevent money laundering – while maintaining cost reductions.”

“Our sustainability work should be leading and fully integrated into our products and offerings. One evidence of this is that Folksam Life and companies within KPA Pension have reduced the carbon footprint of investments by 20 per cent during the spring,” is Jens Henriksson’s closing remark.

Significant events

• In June, the Folksam Group invested a little over SEK 200 million in the battery developer Northvolt for the construction of Northvolt Ett in Skellefteå. The investment is divided, with 1/3 each between Folksam Life, Folksam General and KPA Pension.
• In the beginning of May, KPA Pension signed an agreement to acquire a newly built office property in the Globen area of Stockholm for just over SEK 1.6 billion. The acquisition is part of increasing KPA Pension’s property assets.
• The insurance group’s portfolios are diversified through a continued focus on infrastructure. As part of this work the Folksam group invested SEK 700 million in EQT’s fourth infrastructure fund.
• In March, the Folksam Group exclusively invested SEK 2.8 billion (USD 300 million) in a bond, issued by the World Bank, which focuses on food waste.

 

For further information, please contact:

• Jesper Andersson, CFO Folksam Group, +46 (0)70 831 59 76
• Group Media Relations, +46 (0)8-772 66 60 or pressjour@folksam.se