Sweden’s KPA Pension has reported a return of -4.5 per cent for the first quarter of 2022, compared to a return of 4.6 per cent for the same period in 2021.

Publishing its quarterly results, the pension company did, however, report that premium income for KPA Tjänstepensionsförsäkring AB increased by 3 per cent to SEK 11,320m in the quarter, and the solvency ratio increased to 212.

Commenting, KPA Pension CEO, Camilla Larsson, said: “During the first quarter, Russia's invasion of Ukraine affected our entire world. In a time of uncertainty, our work to secure the return on our community-bearing customers' pension money feels particularly important.

“KPA Pension has strong financial key figures. Premiums continue to increase, which means that the size of assets under management has been affected relatively little despite the turmoil in the financial markets.

The solvency ratio reached 212 per cent, a record high level. KPA Pension has also implemented improvements in defined-contribution traditional insurance. The change will provide a higher return during working life and increased security during the payment period.”

The first quarter also saw KPA Pension invest SEK 1.6bn in green bonds from the World Bank and it signed a strategy from Fossil-Free Sweden. It, along with Folksam, also donated SEK 1m to the Red Cross to support its work to alleviate the consequences of Russia's invasion of Ukraine.

As part of KPA Pension's work in the net-zero alliance, sustainability data is reported quarterly. Carbon dioxide emissions in its own operations are at about the same level as in the previous quarter. The equity portfolios 'total carbon dioxide intensity increased due to shares with higher emissions having a better stock market development and thus constituting a larger share of the equity portfolios' total market value.

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