KLP achieved returns on the customer’s funds of 2.8 per cent in the fourth quarter and 4.2 per cent for 2020 as a whole. Book returns amounted to 4.8 per cent. A good increase in value on bonds and property has been most important for the result, but the equity portfolio has shown significant appreciation as well in the fourth quarter and thus satisfactory returns for the year as a whole.
“We are delighted with a good annual result with stable operations and a good return for our customers despite the major challenges that, among other things, the global infection situation is presenting for economies,” says CEO of KLP, Sverre Thornes.
Special events in the fourth quarter
As a result of product changes in public-sector occupational pensions that entered into force on 1 January, KLP could release NOK 23.2 billion in premium reserves. The released premium reserves have been transferred to the customers’ premium fund in their entirety.
KLP Banken issued green loans for a total of NOK 284 million in the fourth quarter. For the year as a whole, this gave a market share of just over 56 per cent for green loans to municipalities, county municipalities and companies with public-sector affiliation.
The KLP funds report net new subscriptions from external customers of NOK 2.4 billion in the fourth quarter and NOK ten billion in net new subscriptions in 2020. In comparison, net subscriptions were NOK 5.2 billion the previous year.
The market situation
KLP maintains its strong market position in the field of public-sector occupational pensions. Most of the municipalities and counties that considered putting their pension schemes out to tender chose to remain with the company. One county municipality and some businesses with closed pension schemes chose to move to other providers. The actual move applies from 1 January 2021.
All of KLP’s businesses strengthened their market positions and reported good financial results for both the fourth quarter and the year as a whole.
“It is pleasing to see that more and more of our owners and their employees use the products and services we have developed for them,” says CEO Sverre Thornes.
Key figures after the fourth quarter 2020
Value-adjusted return on capital 4.2 per cent
Recorded return on capital 4.8 per cent
Premium income (excluding transferred reserves) NOK 34.3 billion
Pensions and other compensation paid out (excluding transferred reserves) NOK 20.7 billion
KLP Group total assets NOK 807 billion
For further information, please contact:
CEO Sverre Thornes: tel. +47 977 44 007
EVP and CFO Aage Schaanning: tel. +47 905 24 312
SVP Finance Oliver Siem: tel. +47 934 31 820
EVP Communication Sissel Bjaanæs: tel. +47 932 56 350