Our assets management

The insurance premiums paid into the association together make up the assets that we manage. We have long experience of strategic investment management and our main goal is the creation of good long-term returns on your pension capital.

Insurance with a guarantee

A traditional pension insurance means among other things that the capital is guaranteed not to reduce in size. For our insurances, the guarantee consists of a guaranteed interest of 1 percent per year which you receive on 80 percent of the premiums paid by your employer. That we only apply the guarantee to 80 percent of the premiums paid by your employer allows us to place some of your capital in assets with a higher expected returns but also a higher risk.

Solvency ratio – the balance between guarantee and surplus

The association builds up a common risk capital based on paid-in premiums and the surplus created by investment management over time. The extent to which the assets exceed the association’s guaranteed commitments to its members is called the solvency ratio. The association has an adequate solvency ratio but this varies between years in step with the value changes in assets and liabilities.

Read more about our solvency ratio in our annual report

Balance between risk and return

Managing assets within the framework of a traditional pension insurance
relies on finding a balance between taking risks and expected returns. Capital is therefore invested based on the association’s risk policy which has been produced by the association’s Board. The policy stipulates that investments must be made in many different asset classes. Investments must also be made in many different securities so that no single investment constitutes too big a risk. You can read more about our investment guidelines on our website

Investments in different asset classes

Based on the risk policy and our investment guidelines, we divide the managed capital across three main investment areas, equities, bonds and property. Together these constitute a well-balanced portfolio. Fixed-income securities are expected to provide stable returns and performance over time. Equities are more risky investments which means that the performance can swing both up and down but are expected to provide a higher return over time. Investments in real estate and similar asset types are a good complement to investments in equities and fixed-income securities. All assets are continuously given a market value so that we always have the value of the association’s assets. The increase in value accrues to your insurance in the form of bonus interest.

Consolidation policy

Collective consolidation level is a measure of the value of the assets that the association has in relation to the members' total insurance capital. If the collective consolidation level is below 100 per cent, this means that the value of the assets is less than the value of the total insurance capital. A collective consolidation of more than 100 percent means that the assets are larger and that there is a buffer for a negative development in the capital market.

The consolidation policy decided by the board means that the value of the association's assets on a monthly basis must be preliminarily distributed to all insurances. This means that the bonus interest rate is set so that the consolidation level amounts to 100 percent at the end of each month.

Our asset management model