Swedish pension company for the local government sector KPA Pension returned 4.9 per cent on its investments in the second quarter of 2023, its quarterly report has revealed.

By comparison, KPA returned -10.3 per cent during the same period last year, and 3.3 per cent in the first quarter of 2023.

Its return on defined contribution and defined benefit pensions were 7.4 per cent and 1.2 per cent respectively in Q2.

Meanwhile, its solvency ratio at the end of June 2023 was 239 per cent, up from 229 per cent a year prior.

The pension company’s average annual rate of return over the past 10 years was 5.7 per cent.

KPA’s premium income continued to increase during the second quarter of 2023, amounting to SEK 15.2bn at the end of June, corresponding to a year-on-year rise of 8 per cent.

It continued working on reducing its carbon footprint during the quarter, with its carbon emissions, property energy consumption, and equity portfolio carbon footprint all falling.

“I am particularly pleased that during the second quarter we have further strengthened our financial position, that premium income continues to increase from a high level and that the yield in the pre-selection product has improved,” commented KPA Pension CEO, Camilla Larsson.

“With that behind us, we continue our work to act long term as a pension administrator so that those who work in municipalities and regions will receive a secure and good pension.”

During the quarter, KPA invested SEK 394m in bonds to increase knowledge about road safety in developing countries.

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