Folksam Interim Report January – June 2015
Good continued growth and satisfied customers
Folksam is growing and our customers are happy with us. During the period, we have implemented several measures in order to continue to reinforce our financial strength and focus on our core business of pension investments and insurance for the many. One measure has been to implement changes in the traditional life insurance with the aim of ensuring a positive and stable long-term return for our pension savers. For our customers in the corporate market, we are developing a simplified and standardised product, in order to become even better and more secure.
Major development initiatives have been carried out, such as improvement of the IT systems and an increase in our digital presence for customer communication, with the intention of becoming an even more modern financial enterprise. We are preparing for Solvency II, our most important and most highly prioritised project. We have continued to modernise, streamline and consolidate.
The euro crisis and geopolitical uncertainty are contributing to market turbulence, and a challenge that we share with other industry stakeholders is to find a way to yield positive returns at a time of historically low interest rates. It is against this background that our infrastructure investment should be viewed; the business acquisition where we, together with Borealis Infrastructure and the First and Third AP Fund, bought Fortum’s Swedish electricity grid. The transaction is now complete. It represents a very long-term investment.
By investing in safe, environmental and sustainable solutions for electricity transmission, we can achieve a good return that will benefit our pension savers and insurance customers.
We see continued growth within both life and non-life insurance activities. Folksam Life is expected to yield a lower return for the rest of the year, compared with the first two quarters. This is because we have implemented changes in the traditional life insurance and stopped selling the product Seniorkapital.
Our commitment to our customers propels our success. Even if the situation is favourable, there is always room for improvement. Our ambition is to attract more total customers and to have the most satisfied customers of the insurance and savings industry. We have established a high rate of change, and we invest and work in a goal-oriented and responsible manner to safeguard the trust that our customers have given us.
CEO and Group President