Governance Model Overhaul: A New Era of Transparency and Expertise
Alecta has implemented a new governance model, decided at the 2024 Board of Directors meeting, to enhance rigor, structure, and transparency. This includes renaming the Council of Administration to the Council, establishing a preparatory council, and replacing the Council’s Preparatory Committee with a Nomination Committee. Notably, the new model emphasizes independent board members, with Hans Fahlin, Viveka Strangert, and Bo Kratz elected as independent members in line with this change. (Page 3, Annual and sustainability report 2024)
Funding Policy Adjustment: Balancing Surpluses and Long-Term Indexation
Alecta’s board decided on a revised ITP 2 funding policy before 2025. This involves a 25% premium reduction for defined benefit retirement and family pensions, a slight decrease from the previous year. The limit for surplus payments to corporate customers has been lowered from 175% to 170%, and the shareholding in the normal defined benefit portfolio reduced from 35% to 30%. These changes aim for earlier and more stable surplus payments to corporate customers and improved long-term indexation of private customers’ pensions in line with inflation. (Page 3, Annual and sustainability report 2024)
Customer Service Evolution: New Options and Renewed Trust
Alecta Optimal Pension has secured renewed trust as the default option for defined contribution retirement pensions within the FTP occupational pension plan, effective from January 2025 for five years. Additionally, Alecta will offer customers the ability to pause ongoing occupational pension payments starting January 1, 2025, for ITP and SAF-LO plans, with KAP-KL/AKAP-KR and PA 16 to follow later in 2025. (Page 3, Annual and sustainability report 2024)
Leadership Reinforcement: Strategic Hires Bolster Key Functions
Karin Cederbaum assumed the role of General Counsel and Head of Legal Affairs at Alecta in October 2024. She previously served as CEO of Säkra Spar and held positions as General Counsel at Skandia Liv and Head of Compliance at Swedbank. (Page 3, Annual and sustainability report 2024)
Investment Strategy Refinement: ESG Integration and Active Ownership
Alecta’s asset management has intensified its focus on ESG integration within the investment process, particularly for equity management and alternative assets. Semi-annual reconciliations between ESG specialists and managers now emphasize sector-relevant sustainability regulations, Alecta’s new sustainability goals, and biodiversity. Alecta has also taken a clear stance in favor of shareholders’ rights to participate in physical general meetings for Swedish listed companies. For the first time, Alecta co-filed a shareholder proposal with Amazon, advocating for freedom of association, which received approximately 30% of votes at the 2024 general meeting. The Policy for Responsible Investments has been revised to clarify that Alecta’s climate goals are not consistent with investments in new fossil projects, such as fossil expansion or new fossil infrastructure. (Page 18, Annual and sustainability report 2024)
Sustainability Goals 2024-2028: A Comprehensive Framework
Alecta has adopted new overall sustainability goals for 2024–2028, categorized under Pensions, Investments, and People and Workplace. These goals include providing stable pensions, being a stable pension company, increasing transparency and knowledge about Alecta, ensuring high customer privacy, investing in line with the 1.5-degree climate goal and net-zero by 2050, investing in companies that prevent human rights violations and promote gender equality, ensuring sound corporate governance, reducing environmental impact, being an attractive employer, and ensuring suppliers meet sustainability expectations. (Page 10, Annual and sustainability report 2024)
Investment Portfolio Rebalancing: Reduced Shareholding for Defined Benefit
After extensive analysis, Alecta’s board decided in December 2024 to change the funding policy and reduce the proportion of shares for defined benefit business. (Page 7, Annual and sustainability report 2024) The shareholding in the normal defined benefit portfolio was reduced from 35% to 30%. (Page 52, Annual and sustainability report 2024)
Alternative Asset Expansion: Diversifying Credit and Real Estate Holdings
In 2024, Alecta invested approximately GBP 80 million in a transaction within alternative credits, sharing credit risk with a global bank on lending to their core customers. Fund managers utilized almost USD 600 million from existing credit funds. Alecta also committed USD 800 million to three additional credit funds with selected managers. In October, Alecta invested approximately SEK 100 million in Polarium through a new issue, following previous investments in October 2022 and August 2023. (Page 53, Annual and sustainability report 2024)
Real Estate Portfolio Growth: Strategic Acquisitions and In-House Management
Alecta Fastigheter AB, Alecta’s wholly owned subsidiary, took over the management and development of properties in Bredden, Upplands Väsby, in April 2024. In May, two properties in Sundbyberg were acquired from Atrium Ljungberg AB, comprising approximately 36,400 sqm of lettable space. In October, two properties with building rights for residential purposes were acquired in Solna Centrum from Besqab. In November, two newly produced office units, Våghuset and Brick Studios, were acquired in Gothenburg from NCC AB, totaling approximately 27,000 sqm of lettable area. (Page 53, Annual and sustainability report 2024)
Future Leadership Transition: New Chair of the Board Approved
In February 2025, Magnus Hall was approved by the Swedish Financial Supervisory Authority as the new Chair of the Board. Alecta’s Nomination Committee intends to nominate Magnus Hall for election at the Council meeting on May 8, 2025. (Page 53, Annual and sustainability report 2024)
Senior Management Changes: Key Departures and New Appointments
Katarina Thorslund, Head of Customer Relations and Deputy CEO, will retire in the first half of 2025 after approximately 35 years at Alecta. Marie Litezings will succeed her as Head of Customer Relations, joining from AMF where she was Head of Insurance. Marie Litezings assumed her new role in March 2025 and is part of Alecta’s management. (Page 53, Annual and sustainability report 2024)
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