Strong results for KLP

KLP's strong results are due to solid growth in the equity and real estate markets. This applies both to the fourth quarter and to the year as a whole. Increased profitability in non-life insurance also contributes to the Group’s earnings.

The value-adjusted return on customer assets was 2.6 per cent in the fourth quarter (2.8 per cent in 2020) and 8.4 (4.2) per cent for the year, while the book return was 1.4 (1.6) per cent in the quarter and 5.0 (4.8) per cent for the year.

“We are pleased that, with the strong results for the fourth quarter and the whole of 2021, we can make an important financial contribution to our owners. The equity markets did very well in 2021, while interest rates rose through the year. KLP is well equipped for the new year,” says CEO Sverre Thornes.

Results in the subsidiaries
KLP Skadeforsikring, KLP Banken and KLP Kapitalforvaltning all saw good development in the quarter. All of them strengthened their market position and reported good financial results. The pre-tax profit from the subsidiaries totalled NOK 80.1 million for the quarter, and NOK 571.7 million for the year.

Key figures after the fourth quarter of 2021
At the end of the fourth quarter, the KLP Group had total assets of NOK 901.3 billion, an increase of NOK 28.8 billion in the fourth quarter, and NOK 94.1 billion for the year. KLP’s total assets increased by NOK 12.2 billion in the fourth quarter, to amount to NOK 706.7 billion at 31.12.2021. The securities adjustment fund increased by NOK 8.8 billion in the quarter, to NOK 77.4 billion after the fourth quarter.

Key events in the fourth quarter
The authorities decided to introduce a buffer fund for municipal pension schemes from 1 January 2022. The buffer fund replaced the securities adjustment fund and the supplementary reserves from the same date. This was a long-awaited rule change which removes improper arbitrage opportunities allowed by the previous rules, and contributes to healthier competition in the public-sector occupational pensions market.

Relatively few municipalities put their pension schemes out to tender in 2021. As the market leader, KLP sees this as a big vote of confidence, even though two municipalities and several closed agreements chose to terminate their agreements with KLP in 2021. The total volume of the outflow was NOK 4.5 billion.

About the KLP Group
The KLP Group is made up of the following companies: Kommunal Landspensjonskasse (KLP) and its subsidiaries KLP Banken, KLP Skadeforsikring, KLP Kapitalforvaltning, KLP Forsikringsservice and KLP Eiendom.

Contact persons for more information:

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