The Folksam Group’s financial position remains strong when 2024 is summed up, which is of course positive. But it has also been a year marked by war, geopolitical unrest and financial turbulence. The beginning of 2025 has been shaken by a large number of explosions and a terrible act of violence in Örebro.
In 2024, total managed assets increased to SEK 920 billion, an increase of SEK 97 billion. The return amounted to 8.0 percent for Folksam Liv and Folksam Tjänstepension, 8.2 percent for KPA Tjänstepension and 4.5 percent for Folksam Sak.
Despite a good financial position, both life and non-life operations within Folksam have high costs. In 2024, a program was launched to increase competitiveness and reduce operating and claims costs. The work has already started to have an effect and profitability improved in both businesses, but much work remains.
Folksam Liv
During the year, the premium volume within the Folksam Liv group increased and amounted to SEK 62 billion, which is largely due to the new occupational pension agreement AKAP-KR. Good capital return and a cost level that contributed to strengthening profitability.
– When we invest our customers’ money, our ambition is to create a good return and at the same time contribute to a sustainable world. For example, during the year we invested three billion in Copenhagen Infrastructure Growth Markets Fund II, which is active in the global energy transition to renewable energy in the form of wind power assets, solar parks and energy storage in countries where dependence on fossil fuels is high today, says Marcus Blomberg, Head of Asset Management and Sustainability.
The market value of the Folksam Group’s investment in Northvolt was written down to zero during the last quarter due to the situation the company finds itself in. Folksam has very good risk diversification in its portfolio with many different asset classes and the investment in Northvolt, which was initially made in 2019, constitutes a very small part of the whole. But of course, it is not satisfactory to write down the value of an investment.
Another of the Folksam Group’s holdings that has attracted attention is Heimstaden Bostad. In 2024, the value development has been slightly positive. When this annual review is published, Heimstaden Bostad has not yet submitted its full-year results, but as of September 30, the value of the holding amounted to SEK 20.2 billion, which is the value reported by the Folksam Group in the annual accounts. At the same time last year, the value amounted to SEK 19.8 billion. The Swedish Financial Supervisory Authority’s investigation of the Folksam Group’s investment in the company is still ongoing.
Folksam General
Folksam General strengthened its profitability despite a cold winter with many claims at the beginning of 2024. At the end of the year, the combined ratio was 98.6 percent, compared with 104.5 percent at the end of December 2023. Premium adjustments and reduced costs have had an effect. The premium volume in Folksam General increased by 8 percent and 2024 was characterized by a large focus on changing the digital platform. This important work continues and will create even better conditions for new and better digital services for customers as well as lower costs in the long term.
– For us, strengthened competitiveness is about showing our commitment to our customers and that the premiums they pay are used by us in a wise and responsible way. So that we can continue to offer services and products at attractive prices and terms to our four million customers in the future. In 2025, we will work focused on making Folksam simpler, faster , more profitable and customer-oriented, concludes Ylva Wessén.
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