SWEDEN – Alecta, the largest manager of occupational pension assets in the Nordic region, has posted a five percent return on investments in the first half as well as a swing to profitability.

Alecta said that its return amounted to five percent in the January to June period, compared a -7.8% return a year before. It added that the market value of its investments as at June 30 was 296.3 billion crowns (31.9 billion euros), compared to 300.9 billion crowns a year ago.

The Stockholm-based group’s post-tax profit was 11.5 billion crowns, against a 29 billion-crown loss a year ago. “The increase in earnings was mainly due to a 39.7 billion-crown increase in investment income to 14.1 billion crowns,” the group said. The rise, which compares to a -25.6 billion-crown decline a year ago, was “attributable primarily to an
increase in the stock markets”.

Total premiums written fell 23% to 9.6 billion crowns from 12.6 billion crowns.

Alecta is currently investigating the possible impact of a change in Swedish accounting rules on its solvency margin.