Swedish pension provider, AMF, has reported a return of -9.6 per cent in the first half of 2022.

Publishing its interim results, AMF reported a solvency ratio of 228 per cent in the first half of the year, up from 217 per cent in the same period last year. Despite the poor performance in the first half of 2022, AMF has an average annual return over the past five years of 6.1 per cent, and 7.4 per cent over the past 10 years.

AMF CEO, Johan Sidenmark, described the first six months of 2022 as “dramatic and turbulent” due to the tense geopolitical situation being worsened significantly with Russia’s invasion of Ukraine.

“Driven by falling share prices, our total return during the period was negative, although the decline is mitigated somewhat by the breadth of our portfolio and our active management. The strength of traditional insurance, with a good spread of risk, low premiums and a guarantee at the bottom, become particularly clear when there is a storm.

“Having said that, there is a risk that the economy will weaken even more before it turns around, which of course can also affect pensions. Thanks to our continued strong financial position, which we laid the foundation for over many years with a consistently high return, we were able to strengthen the security of half a million customers with traditional insurance under payment during the spring, by allocating SEK 17bn to strengthened guarantees. It feels good, not least in this challenging economic situation.”

During the period, the management cost for traditional insurance amounted to 0.11 (0.11) per cent. Premium income amounted to SEK 16.5bn (15.5). Premiums for unit-linked insurance, reported as deposits to investment agreements, amounted to SEK 1.9bn (2.0). The solvency ratio rose to 228 (217).

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