Very good results for KLP

12.02.2010

KLP returns an operating profit of NOK 9.9 billion for 2009. The good results in 2009 allow for substantial returns of profits to our pension customers, while at the same time strengthening the Group’s solvency considerably.

The 2009 accounts show that profits for our pension customers amounted to NOK 9.0 billion. The Board of Directors propose that NOK 2.4 billion be returned to the premium fund and NOK 4.2 billion be allocated to the supplementary reserves. The securities adjustment fund stands at NOK 2.4 billion at year end.

Book and value-adjusted returns ended up at 6.4 and 7.7 per cent respectively. KLP achieved a book return of 0.9 per cent and a value-adjusted return of 1.8 per cent over the fourth quarter. The good results for 2009 were mostly due to positive development in the stock market and the credit-bond market.

”We are extremely pleased with the good results for 2009. Such strong figures allow for a considerable retrocession of profits to our clients and further strengthening of our solvency”, says Sverre Thornes, CEO.

Strong growth
The KLP Group’s total assets increased by NOK 57.6 billion in 2009 to reach NOK 259.5 billion. The strong growth in the Group’s total assets was due to the acquisition of Kommunekreditt Norge in the second quarter, as well as the upward adjustment of the customers' pension fund in line with the development in their contractual entitlements.

Improved terms for the public sector
Kommunekreditt Norge AS has changed its name to KLP Kreditt AS, and its sister company KLP Kommunekreditt AS is established as a credit company issuing covered bonds. The company carried out its first issue of NOK 3 billion in December 2009. Borrowing at advantageous terms enables passing the advantage on to the customers.

KLP Banken opens
KLP Banken opened on 1 February and is a no-charge, user friendly online bank. Employees of municipalities, county administration, health enterprises and enterprises that have a public occupational pension system with KLP and that thereby are also owners of KLP – should realize that KLP Banken is particularly beneficial to them. The Bank offers 3.1 per cent interest on deposits from members.

Private occupational pension
The Group’s focus on private occupational pensions is in its subsidiary KLP Bedriftspensjon AS. This company is seeing an increase in the number of customers for both defined benefit and defined contribution pensions. In November KLP Bedriftspensjon won a tender for defined contribution pensions that led to the company gaining 2,500 new members for defined contribution pensions.

Growth in asset and fund management
KLP’s index-linked equity management has produced returns over the year of as much as 32.5 per cent. On assets under active management KLP Kapitalforvaltning has managed to produce returns, over and above the index, of NOK 820 million. KLP’s fund management company is seeing a substantially increasing interest both from private individuals as well as from institutional investors. KLP Fondsforvaltning now manages NOK 11 billion on behalf of these groups of customers. Net new subscriptions to KLP’s securities funds from customers external to the Group amounted to NOK 2.2 billion in 2009.

A good year for KLP Skadeforsikring, the non-life company
KLP Skadeforsikring recorded a very good profit, NOK 179.2 million, for 2009 as a whole. Relatively few but major claims over the year impacted on the results. In addition the company’s good financial results have contributed positively to the results. During 2009 the company has established itself in the private customers market and now has a good, even inflow of private customers.

KLP also refers to its quarterly report for the fourth quarter at www.klp.no 

Key figures after Q4-09
Book return on capital 6.4 per cent (1.0 per cent)
Value-adjusted return on capital 7.7 per cent (-3.0 per cent)
Value-adjsuted return on capital incl. HTM bonds 7.6 per cent (-1.7 per cent)
Premium income NOK 18.9 billion kroner (22.0 billion)
Total assets NOK 223.9 billion (NOK 201.9 billion)
NOK 259.5 billion including KLP Kommunekreditt
Capital adequacy 11.8 per cent (14.7 per cent)
Figures in brackets are as at 30.12.08

For further information please contact :
Sverre Thornes, CEO +47 2 03 35 59/ 97 74 40 07
Aage Schaanning, Executive Vice President Finance, CFO +47 22 03 79 01/ 90 52 43 12
Per Victor Nordan, Finance Director +47 22 03 35 55/ 92 03 55 00
Ole Jacob Frich, Executive Vice President Finance +47 22 03 78 96/ 90 91 55 23

Related files

• Quarterly Report 4/2009 (1,7 mb)
• Presentation Q4/2009 (518 kb)