Full year 2020 of Folksam: Continued strong financial position despite the pandemic
5 February 2021
Folksam’s financial position remains very strong even after a year marked by great uncertainty. Folksamgruppen’s assets under management grew by SEK 28 billion to SEK 483 billion and the solvency ratio in Folksam Liv is close to a historic high.
The non-life insurance business has shown its strength in 2020 with an increased connection to Folksam’s group insurance, only 40,000 new customers were added in group home insurance. The business has grown in its entirety in all business areas and several new agreements have been signed with important partners such as the Swedish Pensioners’ Organization, PRO.
Folksam Sak has had record low claims costs as a result of the pandemic in both travel and engine damage. This means that the year ended with a total cost of 89.8 percent and that our customers can also receive a refund for 2020. The increased premiums and low claims costs meant that the degree of consolidation at the turn of the year amounted to a stable 180 percent.
The life business has been affected by the ongoing pandemic, but thanks to a strong financial position, customers can still feel safe. The solvency ratio in Folksam Liv amounted to 171 percent at the turn of the year, which is close to a historic high.
The pandemic has affected sales within Folksam Liv negatively, mainly within one-off paid savings insurance. But despite falling premiums, savings customers’ capital has grown so that the bonus rate could be raised. It is now back at the same level as before the pandemic.
Folksamgruppen’s assets under management increased by SEK 28 billion to SEK 483 billion. The total return in Folksam Liv during the period was 4.7 percent and in Folksam Sak 2.2 percent. The unit-linked insurance assets also increased during the year and, despite a halt in relocation and reduced sales, amounted to SEK 194 billion.
Source: Folksam
