Strong half year results for KLP

13.08.2010

KLP’s good results continue into 2010. The KLP Group’s operating profit for the first half year was of NOK 1.5 billion.

The management of the life company’s assets continues to show good results. The first half year returned a good result for KLP despite turbulent financial markets in the second quarter. Value-adjusted and booked returns for the common portfolio ended at 2.1 and 2.2 per cent respectively in the first half year. Bonds and property were the most important contributors to the good returns in the first half year. KLP obtained a value-adjusted return over the second quarter of minus 0.1 per cent, whereas the book return ended at 0.9 per cent.

”KLP produces strong results for the first half year. In view of the market decline in the second quarter ve are well satisfied with the return we have achieved, says Sverre Thrones, KLP’s CEO. “We have excellent solvency and ample unrealized reserves which will come to the benefit of our customers also in the future.”

The KLP Group’s total assets have now reached NOK 263.9 billion, which means an increase of NOK 20 billion since last year’s second quarter. This is all mainly due to growth in KLP’s insurance funds.

A stable market situation
KLP is maintaining a solid market position in public sector occupational pensions.

”So far this year seven municipalities have decided to put out their pension schemes for tender this year. We actually consider this as a recognition of our efforts that only one among those have their pension scheme with us .”, says Mr Thornes.

Further property acquisitions in Oslo
In the second quarter, KLP entered an agreement to purchase the building Skatt Øst has at its disposal in Bjørvika, an area under development in the centre of Oslo. Takeover will be in August. This is an investment in the order of NOK 725 million. KLP also took over its new head office in Bjørvika in Oslo, an investment of NOK 1.2 billion.

KLP’s property investments accounted for 11.4 per cent of the customers’ pension funds at the end of the first half year. KLP’s property investments have been developing in a positive way in 2010. This has laid the groundwork for the property values appreciating by NOK 201 million in the second quarter and by a total of NOK 615 million in the first half year.

Growth in asset and fund management
Management on behalf of customers outside of the KLP Group continues to grow. NOK 12 billion was under management on behalf of external investors and personal customers at the end of the first half year. This is a growth of 22 per cent this last year. Net new subscriptions in KLP’s securities funds from Group-external customers made up NOK 715 million in the first half year.

A strong position in non-life insurance
KLP Skadeforsikring has upheld its substantial position as provider of non-life insurance to municipalities and county administrations. KLP Skadeforsikring had produced profits of NOK 12 million in the first half year. The past six months were marked by five major property claims, three of which were school fires. KLP Skadeforsikring has maintained good solvency, thus making the Company able to handle such claims in a good way.

KLP also refers to the interim report for the second quarter at www.klp.no

Key figures for Q2-10
Book return on capital 2.2 per cent (3.0 per cent)
Value-adjusted return on capital 2.1 per cent (3.0 per cent)
Value-adjusted return on capital incl. value-adjustment of hold-to-maturity bonds 2.9 per cent (3.0 per cent)
Premium income NOK 5.9 billion (NOK 5.9 billion)
Total assets
KLP comp. NOK 234.8 billion (NOK 205.3 billion)
KLP Group NOK 263.9 billion
Capital adequacy 12.2 per cent (12.6 per cent)
Figures in brackets are as at 30 June 2009

For further information please contact
Sverre Thornes, CEO +47 97 74 40 07
Aage Schaanning, Executive Vice President Finance and Chief Financial Officer +47 90 52 43 12
Per Victor Nordan, Senior Vice President Finance +47 92 03 55 00
Ole Jacob Frich, Executive Vice President Communication +47 90 91 55 23

Related files

• Quarterly Report 2/2010 (322 kb)
• Presentation Q2/2010 (1,3 mb)