Folksam Interim Report January – September 2015
Satisfied customers and a high rate of change
We have seen a continuation of the high rate of change in the past quarter, along with goal-oriented efforts to safeguard the trust that our customers have placed in us. Although many things are going Folksam’s way and we are financially strong, we face a number of challenges. Uncertainty in the world economy, not least in China and a number of other emerging markets, is helping to bring about market turbulence, and one challenge faced by the entire industry involves achieving positive returns with prevailing interest rates.
To this can be added the many regulatory issues that are currently high on the agenda. On 1 January 2016, Folksam and the rest of the industry will be embarking upon the new Solvency II rules. Another important crossroads that we are facing relates to occupational pensions, which may fundamentally reshape the industry. Our approach is to do whatever is most beneficial for our customers, no matter what the situation.
During the period, we have continue to focus on our core business of pension investments and insurance for the many. For example, the changes we made to our traditional life insurance are now starting to take effect. In this way, we are making Folksam’s traditional life insurance more robust and resilient, thereby benefiting our pension savers.
At the same time, we are continuing to work on our modernisation and streamlining projects in order to ensure that they deliver within their financial frameworks and have the intended effects. During the past quarter, I also announced our intention to incorporate Förenade Liv into Folksam in order to simplify and consolidate the business for the benefit of our customers. I will come back to this a little later.
The fact is, Folksam is growing and our customers are happy with us. In the third quarter, we also managed to achieve the highest figure to date as regards the number of people who say they would consider becoming our customers. This is clear evidence of the fact that we are doing many things right and that our commitment to our customers is driving our success. We are now continuing our efforts with undiminished energy so that we can come closer to our goals of more full-service customers and the most satisfied customers in the insurance and pension savings industry.
CEO and Group President