Sweden’s SH Pension reported a "strong" return of 5.2 per cent for the first half of 2023, thanks to positive returns across all asset classes.

The latest report from the scheme showed that while all asset classes achieved a positive result, stocks performed particularly well, with the SEK299m in returns mainly driven by financial market movements.

Positive returns have also been seen over the longer term, as the total return for the last 5 years was 5.54 per cent, rising to 6.88 per cent over the past 10 years, and 6.27 per cent over a 15-year period.

According to the update, premium volumes in traditional management also increased by 84 per cent in the first half of 2023 compared to the same period last year.

In addition to this, the total premium volume, including unit-linked insurance, rose by 58 per cent.

Looking ahead, the group also confirmed that it has "deepened" the collaboration with Mercer to ensure a continued good return and to reduce risk.

Despite the strong returns, SH Pension noted that it is the risk-sensitive capital requirement ratio (RKK) that shows a pension association's stability and strength, recording a half year RKK 181, compared to 188 at the start of the year.

The collective consolidation rate, meanwhile, stood at 120 per cent, up from 118 per cent at the turn of the year.

Commenting on the latest results, SH Pension CEO, Annelie Helsing, stated: “SH Pension has a good mix in the portfolio with both shares, interest, directly owned properties and alternative investments, which is good for risk diversification and the total return stands up very well given the comparison index.

“Our growth journey has begun and we have good premium development. We see the biggest increase in our intermediary collaboration with Portfolio Försäkra and we look forward to continuing that journey.”

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