Swedish pension provider Alecta has reported that its total investments for defined benefit (DB) insurance amounted to SEK 1,058bn at the end of 2025, up from SEK 1,014 per cent at the end of 2024.

According to the results, Alecta’s collective consolidation level for DB insurance totalled 167 per cent at the end of 2025, up from 162 per cent at the end of 2024.

The provider explained that collective consolidation is a buffer for its insurance commitments against variations in return on capital and insurance risks. The consolidation level is Alecta's assets as a percentage of the insurance commitments and governs the distribution of bonuses to customers.

Ahead of 2026, Alecta increased DB pensions by 0.89 per cent, corresponding to inflation over the past year. Overall, Alecta has distributed SEK 100bn to 1.5 million private customers with DB pensions over the past four years, an increase of 20 per cent in pensions.

Alecta CEO, Peder Hasslev, said: “Alecta's customers received secure pensions and competitive returns in 2025. DB pensions were increased, and companies' pension costs were reduced."

The results also showed that overall, Alecta’s financial position developed well during 2025, which it mainly attributed to positive return, as both the solvency ratio at group level (208 per cent) and the collective consolidation level in DB insurance are at a “high level”.

Meanwhile, Alecta’s total capital under management was SEK 1,405bn at the end of the period.

Alecta also reported that its defined contribution (DC) product yielded 9.6 per cent in 2025, and during the five years up to the end of December 2025, Alecta Optimal Pension's total return has been 7.3 per cent on average per year.

The update also revealed that the total investments for Alecta Optimal Pension amounted to SEK 347bn at the end of the period, up from SEK 301bn at the end of December 2024.

Additionally, the group’s equity portfolio totalled SEK 508bn and returned 14.1 per cent, while interest-bearing assets amounted to SEK 646bn and yielded a return of 2.4 per cent.

Meanwhile, alternative investments, which totalled SEK 251bn, delivered a return of 4.5 per cent.

The value of Alecta's holding in Heimstaden Bostad increased by 3.8 per cent during the year and was worth SEK 42.2bn at year-end.

Returns on Alecta’s investments in Heimstaden Bostad were not the only thing reported, as the provider confirmed that the investigation into Alecta's investments in Heimstaden Bostad is still ongoing.

However, the update also confirmed that in December 2025, the Swedish Financial Supervisory Authority announced that the investigation into Alecta's investments and losses in three US banks had been closed, after finding that no violations of the rules occurred.

2025 saw the provider make several improvements, including enhanced customer service and updates to its website, which aimed to improve functionality and accessibility.

The provider also continued its work in implementing the Digital Operational Resilience Act as well as implementing a comprehensive improvement programme focused on strengthening risk management, governance and expertise in asset management.

In addition to this work, Alecta was an early adopter of the new Swedish pension withdrawal rules, allowing customers to pause and extend the payment of the occupational pension.

The rules were approved by the Swedish Parliament in October 2024, and in January 2025, it became possible to pause, and from May also to extend, the payment of the occupational pension for customers with ITP or Avtalspension SAF-LO.

In 2025, just under 2000 of Alecta's customers chose to use the opportunity to pause or extend the payment of their occupational pension.

"We have implemented many improvements and have a clear strategy going forward. Alecta is today safer for our customers, and we are well equipped to face a continued turbulent world and deliver the best occupational pension," Hasslev said.

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