SWEDEN - Total returns at Skandia Liv, the life and pensions insurer, reached 4.4% during the first half, equivalent to a 15.2% return for the last 12 months.

Private equity, real estate and fixed income assets were the best performers, whereas equity returns did not reach 2%.

Assets under management at the end of June stood at SEK287bn (€30.6bn), compared with SEK260bn for the same period last year.

Skandia Liv's solvency ratio also increased from 157% in the first half of last year to 160% for the same period this year.

AMF, the pension and insurance provider, returned 4% in the first half, compared with 4.8% for the same period last year.

Premium income for the first half increased by 27% to SEK13.2bn from SEK10.4bn in the first half last year.

The increase is a result of AMF's prominent role in the supplementary occupational pension system.

Assets under management increased to SEK 295.5bn compared with SEK 265.7bn in the first half last year.

AMF's solvency ratio remains high at 218%, although down from 228% for first half last year. 

The company's fixed income portfolio was the best performer.

Due to ongoing global volatility, AMF has kept a cautious view on equity markets and has a relatively low equity exposure.

Considering the uncertain economic environment, the company said it considered a 4% return as good.

The total return for Folksam Liv, a life and pensions provider, reached 3.6% for the first half, which compares well with 2.6% for the same period last year.

The solvency ratio was 144% against 147% in the first half last year.

Premium income fell slightly to SEK3.3bn in the first half from SEK3.4bn in the same period last year.

Operational profits also fell by SEK300m compared with a profit of SEK18.6bn for the same period last year.

As with other companies with long-term liabilities, the lower long-term interest rates have had a negative effect on profits, Folksam Liv said.

KPA Pension, owned by Folksam, returned 3.7% in the first half compared with 4.2% in the same period last year, with a solvency ratio also falling slightly to 169% against 175%.

Assets under management increased to SEK255.3bn from SEK225.2bn as a result of the positive returns and new net inflows in the life business.

Alecta, the pension insurance provider, returned 3% for the second half, and the average return for the past five years was 5.2% at the end of June.

Operational costs fell as a result of cost-cutting measures introduced in 2009.

Asset management costs were 0.2% of assets under management, compared with 0.24% at the end of 2009.

PP Pension, the pension fund for journalists and media, returned 2.2% in the first half, which compares well to the loss of 0.7% in the first half last year.

All assets classes except equities posted a positive return.

The average return over a five-year period was 6.5% at the end of June.

Viveka Ekberg, chief executive of PP Pension, said risk appetite was expected to return in the second half and that a rise in long-term interest rates was also likely.

PP Pension has SEK9bn in assets under management.

Lastly, Länsförsäkringar Liv, the life and pensions provider, saw operational losses of SEK8bn in the second half, compared with profits of SEK19bn in the same period last year.

Increased technical provisions caused the negative result, it said.

Assets under management increased to SEK151bn against SEK139bn for the first half last year, as a result of increases in its fund business.

The traditional products returned 1.9%, making it the laggard among its competitors that have released their first half numbers.

Länsförsäkringar said in its first-half statement that the returns were below target.
 

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