KLP achieved a return of 1.5 per cent in the fourth quarter. The last quarter of the year was a good one for KLP and its subsidiaries, but weak financial markets, marked the year as a whole. The investment result for the full year was minus 1.1 per cent. It will nevertheless be submitted to the general meeting to transfer NOK 3.2 billion to the customers premium fund.
“We know that our customers, Norwegian municipalities and health enterprises, are experiencing increased pressure on their own finances so it is important for KLP to maintain stable transfers back to them. We are able to do this because we have built solidity in good times, and this is now showing its worth,” says the CEO of KLP, Sverre Thornes.
Last year was marked by the war in Ukraine, rising inflation, interest rates and energy prices and some large movements in financial markets. On the other hand, high interest rates will have a positive effect on the management of pension capital in the future. KLP’s financial strength enables it to withstand the turbulence in the market. The Company’s capital adequacy under the Solvency II regulations increased from 316 per cent in 2021 to 337 per cent last year.
“Our most important task is to manage future pensions in the best possible way. I am delighted to say that we are well placed to do this, with solid buffers that benefit our owners,” says CEO Sverre Thornes.
Key figures
- The return in the fourth quarter of 2022 was 1.5 per cent; for the whole year it was minus 1.1 per cent.
- NOK 3.2 billion is transferred to the customers` premium fund.
- The Group’s total comprehensive income was NOK 913 million in 2022, against 490 million in 2021.
Invested in Norwegian solar
More sustainable and renewable energy is crucial to addressing both the climate crisis and the nature crisis, and KLP contributes to this through its investments. In the year as a whole, KLP placed NOK 8.6 billion in investments in renewable energy. In recent years, KLP has invested in around 50 new power plants.
“In the fourth quarter, for example, KLP invested in a Norwegian fund which aims to install solar panels on Norwegian roofs, and in a new investment partnership with Norfund to construct more power lines in India,” says Thornes.