Sverre Thornes, konsernsjef i KLP

Solid returns in the first quarter


- The profit to KLP’s customers was NOK 2.2 billion in the first quarter.
- The value-adjusted return was 3.1 per cent.
- KLPs strong capital position gives room to reduce payments from costumers and owners.

KLP achieved a returns result (returns in excess of what the company has guaranteed to its customers) of NOK 2.2 billion in the first quarter. The value-adjusted return on customers’ assets was 3.1 per cent, while the book return ended the period at 1.0 per cent. Strong growth in the equity market contributed positively to the results in KLP.

“We are pleased to present strong results in the first quarter. The return on our customers’ pension funds is well above the return we have guaranteed, and our costs are low. This creates value for our customers and owners,” says KLP’s chief executive Sverre Thornes. “We are finding that low costs and a strong financial position allow us, as a mutual owned company, to pursue our ambition to reduce prices and hence costs to our customers within public-sector occupational pensions,” he continues.

Market situation in the pensions sector

KLP has over the last few years experienced good growth. The ongoing municipal and regional reform does not change  this picture.

The public sector partners of the employees and employment organisations has agreed on the principles behind the changes in public-sector occupational pensions. This system offers greater scope for combining employment and retirement, and planning when you want to retire. The changes in the pension system for public-sector employees will have effect from 1. January 2020. The Norwegian Government presented its legislative proposal for changes in public-sector occupational pensions in April. The Bill will now be debated in the Storting (parlament).

LO and YS agree with KS that the pension scheme for the local government sector will continue to build on the principle of equalising premiums regardless of gender and age.
“This is an important point to make clear before the changes in public-sector occupational pensions take effect from 1. January 2020,” says Sverre Thornes.

KLP is a partner with Oslo as Environment Capital 2019

Oslo is in 2019 Europe's environmental capital and therefore will KLP invite all municipalities in Norway to Oslo. The climate challenges is on top of everyone's agenda, and more responsibilities are placed on the municipalities to drive changes in our communities.

We all have a responsibility to reduce climate gas emissions. It's all about making a difference, both today and in the future. It is exciting to discover all the possibilities that exists in the local communities, says Sverre Thornes.

KLP is investing weightily in new real-estate projects in the city centre of Oslo. The goal for the old sorting office at Bishop Gunnerus Gate 14b near Oslo Central Station, is to build a sustainable icon building. Here, KLP intends to establish an eco-friendly building and an open, green urban space for the comfort and well-being of all who live, work or travel in the area. In addition to this, KLP is a partner in Elskede by (Beloved city), where the company is in close cooperation with recycle entrepreneur Ragn Sells and Bring, for a cleaner city environment..

Refer also to the KLP’s interim report for the first quarter at

Key figures after the first quarter of 2019

Value adjusted return on capital 3.1 per cent
Book return on capital 1.0 per cent
Premium income (excluding transferred reserves) NOK 6.7 billion
Pensions paid and other claims (excluding ceded reserves) NOK 4.8 billion
Total assets in the KLP Group NOK 699 billion

For more information, contact:      

Group Chief Executive Sverre Thornes: tel. +47 977 44 007
Executive Vice President/Chief Financial Officer Aage Schaanning: tel. +47 905 24 312
Senior Vice-President Finance Oliver Siem: tel. +47 934 31 820
Information director Sissel Bjaanæs: tel. +47 932 56 350


Explanation of words and expressions

Book return    

Return on the customer assets distributed to insurance customers each year. Made up of financial income from the management of customer funds in life insurance minus the change in net unrealised added value on equity and bond investments.


Value-adjusted return

All returns that have been achieved from the management of customer assets, including unrealised gains.


Returns result

Return on customer assets in excess of the return the insurer has guaranteed to its customers.


Premium reserve

The value of future pension payments for which the insurer is responsible.


Supplementary reserves

Surplus returns which are distributed to insurance customers, but can only be used by the insurer to cover a shortfall against the annual return guarantee on the management of customers’ pension assets.