Sweden’s Skandia Liv has reported a return of 5.4 per cent in 2023, a significant improvement on 2022’s -5.1 per cent return.

During the year Skandia distributed SEK 17bn in bonuses to savers in the traditional life portfolio, corresponding to a bonus rate of 3.4 per cent. Over the past 15 years, the bonus rate has averaged 6.3 per cent.

Of the assets in its life portfolio, equities performed best with a return of just over 15 per cent, together with credits, which have returned just over 10 per cent. A large part of its credit investments have variable interest rates, which means that this asset class has benefited from rising interest rates.

Commenting, Skandia president and CEO, Frans Lindelöw, said: “Skandia has had stable development in 2023, despite the fact that it was a shaky year in the financial markets at times. Thanks to a long-term investment strategy and good risk diversification, Skandia's customers have been able to feel secure.”

Regarding its work on climate change, Skandia said its climate roadmap sets out that it will reduce holdings in fossil fuels by 75 per cent and double the green investments in Skandia Liv by 2025, compared with 2018. It also plans to invest SEK 40bn in green investments from 2021 to 2030, including green bonds, climate-efficient properties and infrastructure projects, with an emphasis on renewable energy.

During the year Skandia made several investments aimed at generating good returns whilst also contributing to solving some of today's social problems.

One example is the financing of a preventive care initiative against high blood pressure in Uppsala, which is expected to provide major cost savings, save lives, and avoid serious diseases.

Another solution investment is a fund for climate change in developing countries with a pioneering financing structure, known as blended finance. Skandia is also continuing to develop its own fund offering and in the fourth quarter, it launched a corporate bond fund with a sustainability focus.

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