Alecta’s premium savings product, Alecta Optimal Pension, made a return of -12.7 per cent in the first half of 2022.

Publishing its half-year results, Alecta said that despite the poor return, its overall financial position remains strong with a solvency ratio of 211 per cent.

“We have a shaky six months behind us. Russia's war in Ukraine, sharply declining stock markets, rapidly rising inflation and interest rate hikes around the world have created uncertainty about where the world is headed. The return for the first half of the year is clearly negative, which is due to the development of the equity portfolio.

“However, we entered 2022 with a very strong financial position and a portfolio that has been equipped for several years to better withstand the type of development that took place in 2022. It has been a security for us to rest our foreheads against when much else has felt uneasy,” Alecta CEO, Magnus Billing, said.

Alecta's financial position has developed well despite the large declines in the world's stock exchanges. One reason for this is that rising interest rates during the period have reduced the present value of its future commitments. Another reason is Alecta's focus on cost efficiency. For a few years now, Alecta has been working to create a portfolio of assets that will be better able to withstand both rising inflation and temporary stock market crashes.

In 2021, Alecta significantly reduced the proportion of shares in the portfolio and increased alternative investments.

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