Swedish pension company AMF has reported a rise in its solvency ratio to 228 per cent, up from 224 per cent a year earlier, as lower management costs helped offset a slowdown in returns.

The group's latest update revealed that it had delivered a total return of 3.1 per cent between January and September 2025, driven by positive performances across all asset classes and favourable currency effects.

However, this marked a year-on-year fall from the 8.6 per cent return delivered in the same period in 2024, which pushed the group's average annual return over the past five years from 6.6 per cent in 2024 to 5.8 per cent in September 2025.

In addition to this, its average return over the past 10 years fell from 6.9 per cent to 6.4 per cent, while the average return over the past 15 years fell from 7.2 per cent to 6.7 per cent.

In addition to the slowdown in investment returns, the group revealed that premium income totalled SEK 17.5bn, down from SEK 27.5bn the year before, with the decline partly explained by Fora’s transition from annual to monthly premium payments.

Premiums for unit-linked insurance, reported as deposits to investment contracts, amounted to SEK 2bn, down from SEK 2.2bn in 2024.

Dampened returns were partly attributed to the AMF's relatively large proportion of Swedish shares, as AMF head of asset management, Katarina Romberg, explained that whilst this "has historically served us well", it had dampened the group's relative return somewhat during the first nine months of the year.

The group pointed out that the returns were also in line with recent market movements, as AMF CEO, Tomas Flodén, said that "the global situation continues to be characterised by great uncertainty and the economic recovery seems to be taking some time".

However, he said that, at the same time, the financial market is holding back, and lower interest rates have contributed to growing optimism.

"There is also somewhat greater clarity about the rules of the trade policy game going forward," he continued.

Indeed, Romberg said that there has also been strong development on the Stockholm Stock Exchange during the beginning of the fourth quarter, "which has been very positive for our savers".

“In August, the Fund Markets Committee decided that AMF Aktiefond Sverige will be one of the eligible funds on the new procured fund market within premium pensions," she added.

Flodén also stressed the value of recent progress by the Stockholm Stock Exchange, noting that September saw the largest stock market listing in Sweden since 2021 carried out, when the home alarm company Verisure, with AMF as one of the anchor investors, began trading.

"Our well-functioning capital market and not least the Swedish pension capital are often highlighted as reasons when companies choose to be listed on the Stockholm Stock Exchange," he continued.

In uncertain times, low costs are important, which for a mutually operated company like AMF means low fees. Therefore, it feels good that our management costs fell to a record low level during the quarter.”

Indeed, the group's update revealed a fall in its total fees, as the management cost for traditional insurance declined to 0.10 (0.11) per cent, reaching a record low.

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