Folksam LO Pension 2020: Continued strengthened financial position and focus on sustainability

4 February 2021

The unit-linked insurance assets increased as a result of a positive cash flow and a positive change in value and amounted to SEK 135,487 (118,624) million. The total return was 9.7 (24.3) percent. The solvency ratio was 7.7 (6.6). The technical result amounted to SEK 301 (231) million and the company’s total result amounted to SEK 340 (312) million.

– It has been a different year that has placed great demands on us as an organization. I am very proud that, despite challenging circumstances, we have succeeded in strengthening our financial position while continuing to constantly improve our sustainability work. Something that our customers think is very important, says CEO Mia Liblik.

Payment of new premiums from savers decreased by SEK 653 million compared with the previous year. The reduction is partly explained by the election center Fora’s relocation stop, which was valid from 27 May to 30 November for the SAF-LO agreement area, which has resulted in fewer people moving in. The Corona pandemic has also prevented the company’s customer advisers from conducting workplace visits.

Folksam LO Pension works continuously to improve the company’s sustainability work. As part of this, in 2020 the Board has decided to tighten the restrictions regarding investments in the coal and gaming sector.

In connection with Swedbank Robur tightening its climate strategy from the turn of the year 2021, the four Folksam LO funds Folksam LO Sweden, Folksam LO Väst, Folksam LO Världen and Folksam LO Obligation are also covered, all of which are managed by Robur. This means that the funds now opt out of the production of coal, oil and gas as well as power production from fossil fuels. The funds also exclude investments in unconventional fossil fuels such as Arctic oil / gas, shale oil / gas and oil sands. The Folksam LO funds make up almost 70 percent of Folksam LO Pension’s unit-linked insurance assets.

During the year, Folksam LO Pension moved an additional approximately 270,000 agreements to a new IT environment. This means that the company’s goal of a business move towards a modern system support has now been realized as 97 percent of the insurance portfolio has been transferred to Folksamgruppen’s future insurance system.

– We are the first in the Folksam Group to migrate over existing occupational pension agreements in a new IT environment. For customers, this has meant a number of improvements, among other things, customers who have the older agreement SAF-LO 2009 have been offered to switch to our modern Entrée solution where the placement of pension capital is adapted to the customers’ age, says Mia Liblik.

Source: Folksam
Multiple reports with cicle diagram and text

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