Folksam Interim Report January – June 2017
The world economic climate looks bright and key analysts have adjusted their growth prognoses upward, especially for Sweden. But many major questions remain, both economically and politically. The American president Donald Trump’s choices for American domestic and foreign policies, along with Great Britain’s negotiations regarding its EU exit are two such questions.
The Folksam Group’s total premium volume has grown by 8 per cent, to just over SEK 33 billion, during the first half-year. Primary growth comes from collectively agreed occupational pensions, while premium inflows in other life insurance are more stable. Also, our non-life insurance shows some growth. In April 2017, we raised the bonus rate for occupational pension operations from 5 to 8 per cent. The continued good return is what enables us to feel secure in continuing to raise the bonus rate.
During the last period, we worked to improve day-to-day operations, just as we have announced earlier. Preparations for the multitude of new regulations continue. We are in the midst of major work concerning how we shall handle collaboration with our insurance brokers in the future and how many they should be. In April, we launched our new and more user-friendly “My pages”, which is a step in our move towards digitalization.
The period has also been characterised by comprehensive work with procurements in the union field. Förenade Liv’s customers, the TCO Trade Unions and Vision unfortunately chose other insurers than the Folksam Group, which has an effect on our premiums as of 2018. At the same time, a number of other customers chose us, among them being Trafik och järnväg (Traffic and Railway), the Swedish Union for Insurance and Finance (FTF), the Swedish Association of University Teachers and Researchers (SULF), the Musikerförbundet (Musician’s Union) and the Swedish Union for Performing Arts and Film. With Lärarförsäkringar, we have reached an agreement to do a portfolio transfer from Förenade Liv to Folksam. The incorporation of Förenade Liv continues and has taken important steps forward.
To ensure being a responsible investor and owner continues. With regard to our investments in green bonds, we are reaching our intermediate target of SEK 12 billion. Here, our investments in the World Bank’s issues are, naturally, important. Another goal is the SEK 10 billion increase in property assets. Following the period’s two property acquisitions, we have now surpassed SEK 7 billion in investment after e set this goal.
I am proud of Folksam. I am proud of our colleagues who contribute to the great commitment to our customers. As a customer-owned company, we must be a little better, a bit more wholesome and above board. That is why we are continuing the work we started, in several areas, of overseeing the processes, regulations, collaborations and ensuring that we practise what we preach. Our goal is clear: We shall have the industry’s most satisfied customers.
President and CEO