Sweden’s KPA Pension, part of the Folksam Group, made a return of 7.2 per cent on its investments in 2025, its full-year results have revealed.

The rate of return for its defined benefit product was 6.3 per cent and for its defined contribution product 8.2 per cent. KPA Pension’s total assets under management reached SEK 378,786m at the end of 2025.

Folksam head of asset management and sustainability, Marcus Blomberg, said: “When we invest our customers' money, our ambition is to generate a secure and attractive return while contributing to a sustainable world.”

He highlighted KPA Pension’s approximate SEK 2bn investment in the World Bank, focusing on projects in social sustainability.

“Our financial strength provides good conditions for giving our customers one of the best returns in the industry. The strong growth in assets under management is mainly explained by the positive development of the stock markets, both global and Swedish,” he added.

During the year, the pension provider strengthened its financial position, as its solvency ratio increased to 268 per cent, up from 248 per cent.

Premiums amounted to SEK 28,180m, a slight decrease from 2024 (31,552m), which KPA Pension attributed to lower inflation, mainly through a lower adjustment of defined-benefit premiums.

Commenting, KPA Pension CEO, Camilla Larsson, said: “Thanks to our strong financial position, KPA Pension's customers can rejoice that we were able to increase payments from the turn of the year.

“In addition, we are raising the guarantee while lowering fees for municipal and regional employees. This provides increased security and better conditions for a good, long-term pension for our customers.”

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