Swedish pension company AMF returned 4.4 per cent between January and June 2023, its half-year report has revealed.

This represents a 14 percentage point increase from the -9.6 per cent return recorded in the first half of 2022.

The increase was primarily attributed to positive returns in the equity markets, with AMF’s listed equity portfolio returning 11.4 per cent in the first half of 2023.

Despite the improved return, AMF’s average return over the past five and 10 years fell year-on-year, from 6.1 per cent to 5.8 per cent and from 7.4 per cent to 7.1 per cent respectively.

However, the pension company’s average return over the past 15 years increased year-on-year from 6.2 per cent to 7.1 per cent.

Furthermore, its solvency ratio declined from 228 per cent at the end of H1 2022 to 224 per cent at the end of H1 2023.

AMF’s total managed capital rose from SEK 737bn to SEK 777bn year-on-year, while its traditional insurance managed capital increased from SEK 560bn to SEK 576bn.

The pension company’s consolidated total profit also increased, from SEK -10.5bn to SEK 26.8bn.

AMF stated that the first six months of the year had been marked by continued uncertainty, geopolitical tensions and a challenging economic situation.

“At the same time, important parts of Swedish industry are resisting the downturn, and the stock market has developed positively,” the pension company noted.

“AMF also remains financially strong. We have a good spread of risk, and we deliver a positive total return to our savers of 4.4 per cent.

“During the spring, we also worked actively to improve our traditional insurance, and adapt it to a changing environment. We have raised the guarantee for premiums paid to 100 per cent, introduced a new guarantee reinforcement model and converted SEK 9.3bn of accrued surplus into guarantees. This strengthens security for our savers in an uncertain time.

“After a tough last year, it feels good that we can deliver a return of 4.4 per cent in the first half of 2023.

“The strongest contributing factor is the positive development on several important stock markets. Our listed equity portfolio returned 11.4 per cent during the period, but our interest-bearing assets and the alternative part of our portfolio also contributed positively.

“Despite this, the future development is uncertain, not least in the short term. Therefore, it feels good that we have such a well-diversified portfolio, and that thanks to our strong financial position, we can continue to develop and broaden our holdings.”

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