Alecta will become an occupational pension company in 2022

19 October 2021

On 14 October 2021, Finansinspektionen approved Alecta’s application to become an occupational pension company in accordance with the Occupational Pension Companies Act (2019: 742). The conversion will take place on 1 January 2022. At that time, Alecta pension insurance, a mutual name, will also change to Alecta Occupational Pension Mutual.

– The advantage of the conversion to occupational pension companies is that the new legislation is specially designed for occupational pensions, which is our core business. The occupational pension regulation suits us better compared with the more general insurance regulations under which Alecta has operated until now. The transformation gives Alecta the best conditions to continue to be able to create good returns, at very low fees, through active and long-term asset management. In this way, we take care of our customers’ interests and needs and create security during and after working life, says Magnus Billing, CEO of Alecta.

Alecta remains the same company

The purpose of the change is for Alecta to comply with the new legislation on occupational pension companies, which is specially adapted for occupational pension activities. The Swedish law is an implementation in Swedish law of an EU directive from the end of 2016. In short, it means that Alecta changes its company name and begins to follow new legislation. However, Alecta remains the same company with the same organization number as before. No agreements are affected by the conversion, but all occupational pension insurances, as well as all other agreements to which Alecta is a party, continue to apply in exactly the same way as before.

The process of conversion

Alecta has used the opportunity for transformation contained in the new legislation. Alecta’s Board of Directors – Alecta’s highest decision-making body, corresponding to the Annual General Meeting, which represents all customers, both insured / employees and employers / policyholders – approved Alecta’s application for conversion in April 2021 and it was subsequently submitted to Finansinspektionen for their review. Finansinspektionen approved the application on 14 October 2021, with effect from 1 January 2022. The last step in the conversion is that the Swedish Companies Registration Office registers the conversion to a mutual occupational pension company and the new company name Alecta Occupational Pension Mutual. It will take place on January 1, 2022.

Source: Alecta
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