SWEDEN - Länsförsäkringar has expressed its disappointment at returns below those of other Swedish pension providers, announcing returns of only 4.1% for 2010.

The figure lags behind those of competitors, who mostly have returned between 9% and 10% over the last 12 months, some even exceeding the 10% level. According to the annual report the result "did not live up to expectations".

Gustav Karner, chief financial officer and responsible for investments, said the performance is a result of having had a low equity exposure, in particular to domestic Swedish equities.

Hedging debt has also been increasingly expensive, as interest rates declined in Sweden. Länsförsäkringar hedged against rising interest rates and therefore only incurred costs, rather than benefits.

Karner said the protection was necessary to protect customers' assets and insuring that the company would be able to fulfill guaranteed payments.

Karner is pleased that the solvency ratio increased to 141% from 137%, noting that the liabilities were reduced by three times as much compared to assets lost, meaning outlook for the provider remained positive.

Meanwhile, Swedish banking group SEB has bought Irish Life International (ILI) from Irish Life & Permanent Group Holdings for €26m, with the long-term plans including a merger of the two companies.

ILI has €2bn in assets under management and premium payments of €370 million. This adds to SEB Life's existing assets of  SEK30bn (€3.4bn).

The deal will allow SEB access to a wider European distribution network and will also boost its position as a provider for investment vehicles in Sweden and Finland. During the past five years ILI has sold insurance products in Finland for between SEK800million and SEK1.3bn via advisors and brokers, which one of the driving forces behind the deal.

In other news, AP7, the government alternative within the Swedish premium pension system, has regorganised its management structure as a result of the departure of Peter Norman, who left last year to become financial markets minister and the subsequent appointment of Richard Gröttheim to head up the fund.

Christian Ragnartz has been named the new head of asset management, responsible for external managers, fixed income, ethics and investor relations. Administration, which was previously handled by several people, will now be headed by Svante Linder in charge of all aspects relating to administration, finance and IT. Charlotte Jakobson will become head of HR, a newly created position.

Additionally, AP7 has launched a recruitment process for a chief strategist responsible for the strategic portfolio and tactical allocation. An appointment is expected in the autumn.

Finally, Dombron, the property company owned by AP4, has appointed Ilija Batljan as deputy CEO, starting May 2.

Batljan has long experience in the public sector and is currently a local county politician in Stockolm.

Dombron manages a property portfolio of SEK6bn in Stockholm, Gothenburg, Uppsala and Halmstad and aims to increase the its size to SEK20bn within the next five years, according to Jan-Erik Höjvall, CEO of Dombron. It will focus housing and community property.

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