Swedish occupational pension and life insurance companies made a return of 7.4 per cent on their investments in the first three quarters of 2024, according to statistics from Insurance Sweden.

For the third quarter (Q3), the investment return was 2.2 per cent and looking over the longer term, the average annual return has been 6.3 per cent over the past 10 years.

Commenting, Insurance Sweden economist, Jonas Söderberg, said: “The return in the first three quarters of the year is higher than the average over the past 10 years. This is despite the fact that there is one quarter left this year. The positive development of the stock markets in 2024 is the main explanation.”

In addition, during Q3, SEK 26bn was transferred between providers, an increase of almost 50 per cent on the same period last year. It also “significantly exceeds” the quarter average, which is around SEK 15bn.

The right to transfer has gradually been extended, making it possible to transfer an increasingly large proportion of insurance capital saved.

Insurance Sweden said the majority of capital transferred was occupational pension savings. The largest part of this capital relates to transfers to unit-linked insurance. The association explained that the capital may have been managed in unit-linked insurance in the previous company, or as custodial or traditional insurance.

During the quarter, SEK 20bn was moved to unit-linked insurance, SEK 3bn to traditional insurance and SEK 2bn to custodial insurance.

"One explanation for the sharp increase in transferred capital may be linked to the so-called ITP procurement carried out last autumn, when there was a change in which companies are eligible," Insurance Sweden quantitative analyst, Kajsa Lindell Hagelin, said.

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