Sweden’s KPA Tjänstepensionsförsäkring AB returned 8.2 per cent in 2024, up from 7.6 per cent return in 2023, its annual financial results have revealed.

The positive return was credited to the fact that broad equity indices have risen during the year and that good returns on fixed-income assets have made a positive contribution.

In addition to this, KPA said real estate has been positively affected by lower policy rates. In one of our larger property holdings, Heimstaden Bostad, the return has been affected in line with other property assets.

The results also showed that its average return over the past five and 10 years was 5.0 per cent and 5.1 per cent respectively.

Premiums written for KPA Tjänstepensionsförsäkring AB continued to increase in 2024 and amounted to SEK 31,552m, an increase of 9 per cent.

The solvency ratio also increased to 248 per cent, up from 232 per cent compared to last year.

KPA Pension’s rate of return, determined by premium, was 10.6 per cent in 2024, while its defined benefit pension rate of return was 5.1 per cent.

The results also showed a slight decrease in the defined contribution (DC) management expensed ratio, falling from 0.08 per cent in 2023 to 0.07 per cent in 2024.

However, assets under management increased from SEK 296,414m in 2023 to SEK 339,570m in 2024.

Commenting on the annual results, KPA Pension CEO, Camilla Larsson, said: "KPA Pension's customers can once again this year be pleased with increased premiums written, higher returns and improved earnings.

“This is partly due to the new occupational pension agreement AKAP-KR, which ultimately provides higher pensions for customers. We continue to invest in green bonds and our customers appreciate our sustainability work.”

Adding to this, Folksam investment manager, Marcus Blomberg, stated: “During the year, we have invested SEK 500m in, among other things, Norrsken Fund 2, which tackles some of the world's major climate challenges. We have also invested in the real estate sector, which is in line with our long-term strategy.”

The year also saw several developments for KPA Pension, including an investment of over SEK 1bn in climate-related work in the City of Stockholm, the acquisition of several office projects, and investments in several municipalities in southern Sweden to contribute to climate adaptation.

In addition to this, KPA Pension also offered the opportunity to pause and postpone DC occupational pensions.

During the full year, the carbon footprint of KPA Pension’s operations and the carbon footprint of the equity portfolio decreased, which is in line with the set targets. Energy consumption in real estate also decreased.

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