Premium income for KPA Tjänstepensionsförsäkring AB continued to increase and amounted to SEK 31,552 (28,938) million, i.e. an increase of 9.0 percent. The solvency ratio increased to 248 (232) percent compared to the same period last year. Despite the market being characterized by the turbulent developments in the world, KPA Tjänstepensionsförsäkring reported a total return of 8.2 (7.6) percent. Over a 10-year period, the average total return was 5.1 percent. The return on the defined-contribution pre-selection product was 10.6 (8.8) percent.
Camilla Larsson, CEO of KPA Pension, comments on the full year 2024:
– KPA Pension’s customers can also enjoy increased premium income, higher returns and improved results this year. This is due, among other things, to the new occupational pension agreement AKAP-KR, which ultimately provides higher pensions to customers. We continue to invest in green bonds and our customers appreciate our sustainability work.
Marcus Blomberg, Investment Manager at Folksam, says about the full year:
– When we invest our customers’ money, our ambition is to create a good return and at the same time contribute to a sustainable world. During the year, we have invested 500 million in, among other things, Norrsken Fund 2, which takes on some of the world’s major climate challenges. We have also invested in the real estate sector, which is in line with our long-term strategy, says Marcus Blomberg, Head of Asset Management and Sustainability.
The positive return is largely due to the fact that broad equity indices have risen during the year, and that good returns on fixed-income assets have contributed positively. Real estate has been partly positively affected by lower policy rates. In one of our larger property holdings, Heimstaden Bostad, the return has been affected in line with other property assets.
Important events during the full year 2024
- Investment in Norrsken 2 fund, Europe’s largest in its field, invests in over 30 startups with the goal of making a difference in areas such as climate, energy transition, and health and education.
- KPA buys office project from NCC with Svenska Kraftnät as tenant.
- KPA Pension offers the opportunity from the turn of the year to pause and postpone defined contribution occupational pensions.
- KPA Pension is investing over one billion in climate-related work in the City of Stockholm.
- KPA Pension acquires the office property Mentorn in central Stockholm
- KPA Pension invested in several municipalities in southern Sweden; Region Skåne, Vellinge and Trelleborg Municipality with the intention of contributing to climate adaptation/transition and improved infrastructure.
- KPA Pension is perceived as a sustainable pension company. 82 percent of customers in the target group of municipal and regional employees feel that KPA Pension manages occupational pensions sustainably.
Events after the end of the year
KPA Pension publishes the report Pension Capital in Preparedness in conjunction with Folk & Försvar.
Key figures for KPA Tjänstepensionsförsäkring AB, with previous year in brackets
- Premium income increased to 31,552 (28,938).
- Total return increased to 8.2 (7.6).
- The average total return over the last 5 years (2020 – 2024) was 5.0 percent.
- The average total return over the last 10 years (2015 – 2024) was 5.1 percent.
- The rate of return, defined contribution, amounted to 10.6 (8.8) percent.
- The rate of return, defined benefit, amounted to 5.1 (5.5).
- The management expense ratio, defined contribution, amounted to 0.07 (0.08) percent.
- Managed assets amounted to SEK 339,570 (296,414) million.
- The solvency ratio amounted to 248 (232) percent.
The carbon footprint
As part of KPA Pension’s work in the Net Zero Alliance, sustainability data is reported quarterly.
During the full year, the carbon footprint for the company’s own operations and the carbon footprint in the equity portfolio decreased, which is in line with set targets. Energy consumption in properties also decreased.
More information about the carbon footprint can be found in the full-year overview for the Folksam Group.
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