Annual Review 2013
Your security is what
we care about.
Come along and get to
know us better.
Every time we meet a customer, we also meet an
owner. And we have many owners. We insure nearly
one out of two people in Sweden and take care of
the pension for more than two million people. You
can insure your home, your car, your four-footed
friend and your pension with us. Our job is to ensure
that security accompanies every phases of life.
We can help you review your insurance coverage
so that it matches your living situation and family.
Your security is what our hearts beat for.
Our goal is to have the most
satisfied customers of the in-
surance and savings industry.
Every time we meet a customer,
we also meet an owner. Every-
thing we say and do affects our
customers’ perception of us.
Our vision is for people to feel
secure in a sustainable world.
As a significant investor, we have
the possibility of influencing our
surroundings to realize the vision.
Our promise to you
We are committed for you
– so that you and your family are
secure today and tomorrow.
and everything you care about.
We work based on your needs
when we design our offerings.
Folksam is the customers’ insurance com-
pany. For more than a century, we have
combined heart and mind to create security
for the individual as well as society in general.
Our commitment to what the customers care
about is continuing and during the year, en-
joyed more success than ever. Now, Folksam
is entering a new phase.
In 2013, our market share increased. In hard competition,
we are now closing in on 16 per cent of the property damage
market and 15 per cent of pension savings in Sweden.At
the same time that we see customer loyalty growing, we are
also continuously being entrusted with more assignments
and can proudly note that the number of customer is stead-
ily growing. Nearly one out of five pension savers currently
Focus on existing customers is a success factor. Gather-
ing one’s insurance with us should be rewarding and the
number of customers who have more than one product is
consequently growing.At year-end, 495,000 customers
had insured both their home and their car with Folksam.
Of these customers, 58,000 have also chosen us when
saving for their pension.
Our financial strength provides good conditions for good
returns on the long term. Handling risks and opportunities
in asset management over time is one of our most impor-
tant tasks. Our objective is not to provide the highest return
in the industry every single year, but rather to avoid the big
mistakes and thereby over time provide the highest return.
Over a five-year period, Folksam’s customers have had an
average annual total return of 8 per cent.This bears being
compared with most forms of savings on the market.
Satisfied customers that talk about their experiences drive
business.The measurements we took in 2013 show that
our customers have never been more satisfied.At the same
time, there are far too many conceivable customers who
still do not see Folksam as an alternative.The fact that
comparisons continuously prove that we are better than
the competitors means that the proportion is constantly
decreasing, but as long as there is a single person who
cannot imagine becoming a customer of Folksam, we
are not satisfied.
Agrowing stock yields more claims and sets higher require-
ments on accessibility and personal treatment.We have to
improve on this front.We are therefore continuing the work
with accessibility and how we interact with the customer as
a priority area.We must be there for our customers - creat-
ing security through advice and support, both in daily life
and when something unexpected occurs.
As the new President and CEO, I can confirm that the suc-
cesses of recent years have given us an excellent platform
for the future.After a long period of work, we can finally
see the results of our work. Of course, this does not mean
that we can begin to take it easy, rather that we have the
conditions to shift up a gear.
Our financial strength is the prerequisite now that Folksam
is entering a new phase - a phase with a focus on mod-
ernisation, efficiency enhancement and consolidation.
We must ensure that the operations and infrastructure,
whether it involves expertise, systems or processes, are as
effective as possible and that everything is in order.We will
improve at what we are already good at.We will continue to
provide security to our customers through good insur-
ance solutions at the same time that we will become more
efficient and find solutions that are even smarter than those
we already have.
Good shall be better!
Stockholm, March 2014
Age: 47 years
Family: Married and has three
children, lives in Hägersten in
Began as the President and CEO
of Folksam on 1 September 2013.
Before that, he was the CEO of
NASDAQ OMX Stockholm. Has
also been the Executive Director
and Board member for the IMF in
Washington, D.C. and State Sec-
retary at the Ministry of Finance.
Jens has also been a columnist for
the news magazine Fokus and the
Swedish daily Svenska Dagbladet.
Folksam is a customer-owned company. This means that
our customers are our owners and that our surplus goes
back to the policyholders. This is how we have always
worked. In insurance terms, this means that we are a mutual
Thanks to our broad range of insurance and pension savings, we can see to the
customers’ total needs. Folksam’s offering comprises auto and home insurance
for households, business insurance in selected areas, occupational pensions and
pension savings for private individuals as well as group life insurance.
Strong finances give us opportunities
Our financial strength provides the customers good chances for a strong long-
term return on their pension savings. Both Folksam Life and the subsidiary KPA
Pension have significantly more assets than are needed to pay out the guaran-
teed pensions. In the past five years, the average total return in KPA Pension and
Folksam Life has been among the highest in the industry.
A sustainable world
We get involved in what our customers care about and therefore do things that
are not always associated with insurance companies. Our commitment involves
such areas as the environment, traffic and ethical investment – all to encourage
development towards a sustainable world.
Folksam in figures
Total premium volume SEK 40.4 billion
Number of employees 3,640 people
Total assets under management SEK 304 billion
Solvency ratio in Folksam Life 161%
Average annual return in Folksam Life over five years 8.0%
Market share non-life insurance 15.9%
Market share life insurance 14.4%
... Folksam has
existed for more
than a century
... we influence traffic
safety through our
... we are the insur
ance company of
sports and insure
nine out of ten
athletes in Sweden
... nearly one out of
two Swedes are
insured by Folksam
... nearly one out of five
new pension savers
... we have worked with
since 2001 and have ethi-
cal criteria on all assets
The basic idea of all insurance is to distribute the risk across more people. This is the story
behind Folksam. It begins at time not so far from the present, just a bit more than 100 years
ago, when a large part of Sweden’s homes were uninsured.
The need for insurance was great, perhaps even greater
than today. Many people lived in homes made of wood
and open flames were needed for both heating and
cooking. Right here, in the most flammable development,
fire insurance was something unattainable. No insurance
company insured anyone who was assessed in advance to
be a bad deal.
The idea of a mutual insurance association grew out
of the idea that everyone has the right to insurance. But
starting such an association proved difficult; no bank was
willing to provide loans and authorities demanded that
one could present subscribed insurance at a value of SEK
2 million.The situation looked bleak for the new entrepre-
neurs. Nonetheless, by the end of the year, they had already
managed to gather 6,000 subscriptions for fire insurance!
After a few years, they finally had their SEK 2 million.
“Folket i samarbete” or “the people in cooperation”
became Folksam.We were created by sharing the risk and
the benefits and this is how we still work.We get involved
in what our customers care aboutThey are our owners. In
the following pages, you will have the opportunity to meet
a few of them.
Meet Jessica, Fredrik and Beathe who are all involved and own Folksam.
Owner since: 1995
Jessica works in an art materials
store and loves climbing.
I have yet to meet a jar I can’t
If one of Jessica’s customers were to ask what she does in
her free time, they might be surprised. Because the girl who
quickly wraps up the brushes and paint at the cash register
is a competitive climber.
Jessica has been climbing since she was 13. She practices
three times a week and gladly spends her holidays inThai-
land, France, India or China - only places where she can
climb. Luckily, her boyfriend shares her passion.
The kind of climbing Jessica does is called bouldering
and is done without a rope, most often with a pad below, a
mat that dampens the fall.
“Falling is a part of the sport,” says Jessica.
In bouldering, the climbing is done with little movement
and it is often more athletically and technically challenging
than other kinds of climbing. Jessica is strong, especially in
her hands, which her friends gladly take advantage of when
they need help opening anything from jam jars to pickle
“I have yet to meet a jar I can’t open,” says Jessica and
laughs. “No jar is impossible, some just take a bit more
time.”Then she says: “No, don’t write that, it sounds like
I’m bragging!”Which is hard to agree with, because this
climbing art supply salesperson is more inclined to be
humble. But strong.
Owner since: 2007
Fredrik invents games for the
mobile phone and likes industrial
design for fun.
The plastic can Fredrik is holding in his hand costs around
SEK 400. Still, it is completely empty. “The top is also
threaded wrong,” explains Fredrik. “I was thinking wrong
when I made the sketch on the computer.”
The can is printed on a 3D printer at a company that is
specialised on 3D printing. Owning one’s own 3D printer
is still not within financial reach for most people, even if it
would certain be worth the money.This is apparent when
you hold up and look at a completely perfect item that
needed neither form or assembly to be made. It feels like
magic that the machine on its own was responsible for the
production of the fully usable little plastic can (threaded
wrong or not).All that was needed was a prototype mate-
rial and Fredrik’s computer file.This is actually no hocus
pocus, though. Most people have no problem making
something by removing material, which is after all how
a sculptor works when cutting a statue out of a block of
stone. In a 3D printer, the object is instead made by adding
Even his eyeglass frames are designed by Fredrik and
printed from the same prototype material. “When you are
happy with your design, you can print it out with a nicer
material if you want.You can even fill the machine with
You can even fill the machine
Owner since: 2005
Beathe works as a service tech-
nician supervisor and loves her
Beathe’s black used Harley-Davidson Sportster is from
2001 and she is actually also one of its former owners.
“My daughter had managed to turn about one year old
and demanded a lot of time.There won’t be much riding
here,” noted Beathe cynically like many other parents
of small children before her. So she sold her Harley. But
when the bike came up for sale again, she could not resist
becoming its owner again. Beathe explains the fact that
a Harley-Davidson was the first choice by saying she is a
speed freak.Afast Japanese bike would be dangerous in
her hands.The Harley invites more relaxed tours. “I don’t
take any long trips exactly, but a lot of weekend tours and
often enjoy doing so on my own. I pack a small lunch and a
good book.Then I take a tour somewhere with some water,
lie down on a blanket and read.”
Folksam is a mutual company. This means that our customers are also our owners.
For us, it is important that the customers can be involved and influence what we do.
Folksam has no shareholders. Instead, it is influence from
our four million customers that leads to decisions at the
Annual General Meeting.The customers’ influence in the
form of voting rights, the right of expression and proposal
takes place through specially elected delegates. Delegates
are either directly elected policyholders or appointed by
large customer groups/organisations. In Folksam General,
the customers are represented by 80 delegates and in Folk-
sam Life by 75 delegates.
Multiple benefits by being customer owned
As a customer-owned company, the entire surplus we
generate goes back to the customers, either in the form of
development of our offering or as a bonus. In light of the
strong financial position in Folksam General, a long-term
bonus programme was launched in 2012.The bonus rate in
Folksam Life was increased twice in 2013 and is currently
6.0 per cent.
Represented by del-
egates at the General
Meeting. 80 people in
Folksam General and
75 in Folksam Life.
2013Market share grew
The market shares grew in both the general and life opera-
tions. Nearly one out of five new pension savers chooses us.
Sweden’s largest insurance company
With a total annual premium volume of more than SEK 40
billion, Folksam is Sweden’s largest insurance company.
Life Insurance Company of the Year for second
Folksam was named the Life Insurance Company of the
Year in the Söderberg Partners traffic light report for the
second consecutive year.
Jens Henriksson began as the new President and CEO in
To focus on our core business, the management right of
Svenska Lärarfonder’s funds is being transferred to DNB.
Customers more satisfied than ever
Folksam’s measurements shows that our customers are
more satisfied than ever before.
Folksam selectable in ITP
Folksam became a selectable alternative for traditional
insurance in the ITPcollective agreement area. ITPis a
collectively agreed occupational pension that private
salaried employees receive in addition to their national
SalusAnsvar is a part of Folksam
During the year, we successfully moved over both compe-
tencies and an insurance portfolio. Several large partner
customers, especially Saco associations, are now a part of
Folksam’s offering.The integration will be fully completed
Most sustainable company
KPAPension was named the most sustainable company in
the finance industry in 2013. Folksam ended up third on the
Home insurance received highest marks
Our most extensive home insurance received the high-
est marks in a comparison done by Konsumenternas
Försäkringsbyrå. Konsumenternas Försäkringsbyrå
has the goal of providing consumers impartial facts and
guidance free of charge.
Årets livbolag 2011 och 2012
Du är en
Life Insurance Company of the Year again
Folksam was named the Life Insurance Company of the
Year in the Söderberg Partners traffic light report for the
second consecutive year. At the Insurance Awards 2013,
Folksam was named the Life Insurance Company of the
Year with the motivation:
“Folksam again showed that it is possible
to provide a secure and stable traditional
product that offers good, risk-adjusted
return to the savers.”
The basic idea of all insurance is to distribute the risk across more people. Conse-
quently, size is important. Nearly one out of two Swedes are insured by Folksam.
More than two million people save for their pension with us. We are one of Sweden’s
ten largest investors and manage assets of SEK 304 billion.
Folksam is one of a few insurance
companies that have a strong position
in both life and non-life insurance. In
total, our customers pay in more than
SEK 40 billion in annual premiums.
15 per cent of the entire insur-
Folksam’s market share of the total
premium volume in the Swedish insur-
ance market was nearly 15 per cent in
Grew the most in the market
In 2013, Folksam grew the most in the
non-life insurance market.The total
premium volume grew by just over 7
per cent.At year-end, we had 15.9 per
cent of the total market of SEK 67
One out of five new pension sav-
ers chooses us
Two million people save for their pen-
sions with Folksam.The market share
measured in total premium income
for life insurance amounted to 14.4 per
cent in 2013.This means that the premi-
um income for old and new insurance
policies was SEK 27 billion of the total
market of SEK 185 billion.
total life market
SEB Trygg Liv 8,5%
Nordea Liv 7,0%
LARGEST PREMIUM VOLUME IN THE INDUSTRY
Swedish Insurance Federation and pertains to premium volume December 2013 and previous 12 months.
Unit-linked, collective agreement and other life
Premiums paid in, SEK billion
2009 2010 2011 2012 2013
assets under management 2009
2013 SEK 304 billion
2012 SEK 275 billion
2011 SEK 253 billion
2010 SEK 235 billion
2009 SEK 215 billion
Ethical criteria on all investments
Read more about how we work with
responsible ownership on page 30.
Strategic asset management
Read more about how we invest the
customers’ money on page 44.
Ethical criteria on all
Folksam is one of Sweden’s ten largest
investors and manages assets of SEK
304 billion.The assets managed are
covered by criteria for the environ-
ment, human rights and anti-corrup-
tion and are invested in interest-bear-
ing securities, shares, properties and
alternative investments. Folksam’s
holding of interest-bearing securities
mainly consists of bonds issued by the
Swedish government, Swedish munic-
ipalities, Swedish mortgage institutes
or Swedish companies.
Swedish equities SEK 47 billion
Non-Swedish equities SEK 43 billion
Swedish bonds SEK 185 billion
Non-Swedish bonds SEK 3 billion
Properties SEK 20 billion
Alternative investments SEK 5 billion
Hedging instruments SEK 1 billion
Good risk diversification in the
We work with life and non-life insurance operations under several brand names with a focus
on the Swedish market. The offer can be divided into pension savings, personal risk, and
Our job is to provide security to our customers through
good insurance solutions.
We offer traditional life insurance within Folksam Life
and KPAPension.The traditional life insurance is a form
of saving where we invest capital and manage the invested
capital.This means that the saver does not need to choose
the level of risk.We distribute the capital between equities,
interest-bearing securities and other assets.This form of
savings also has a guarantee on premiums paid in and an
agreed guarantee interest.When there is a surplus from
asset management, it is distributed to the savers with the
help of bonus interest.
Unit-linked insurance means that the customer him or
herself chooses the level of risk for his or her savings by
choosing which funds the capital is invested in.We offer
savings in unit-linked insurance in Folksam Life, Folksam
Fondförsäkring, KPAPensionsförsäkring and Folksam
In Folksam Fondförsäkring and Folksam Life, we offer
a quality assured, guided range of 60 to 80 funds.We guide
based on the parameters of return, low fees and ethical
investment. Since we are not dependent on our own fund
management company, we can always choose among the
market’s best funds in every area.
Otherwise, a tailor-made range of funds is offered in the
respective agreement area. For KPAPension, the range of
funds consists of SRI-screened funds. Folksam LO Fond-
försäkring has a carefully selected range of external funds
that meet the requirements in the agreement area.
In Folksam, there are four companies that offer personal
risk insurance: Folksam Life, Folksam General, Förenade
Liv and KPALivförsäkring. Our group insurance com-
prises group life and occupational group life insurance and
health and accident insurance.
Health insurance reimburses loss of income or consists
of fixed lump sums.Accident insurance reimburses costs
that can arise in connection with an accident, and offers
compensation in cases of invalidity. From group life and
occupational group life insurance products, a non-recur-
ring payment is made to the beneficiary when the insured
We have group life and health and accident insurance
that is adapted to labour unions, companies and organisa-
tions, and those for individual solutions.
Folksam offers non-life insurance in three companies;
Folksam General, Folksam Skadeförsäkring andTre Kro-
nor.The latter is a “white brand”, meaning that it is a brand
that stands for the actual product, which is then sold under
another brand name.
Home insurance is the core in our non-life insurance
offering.When the customers requested simple and clear
offerings, we packaged the home insurance into Base, Me-
dium and Plus, a move that makes it easier for the customer
to choose the right insurance.
Read more about the various companies in Folksam on page 52.
Folksam is organised into three business areas: Private, Partner and Collectively Agreed
Business and subsidiaries. In addition, there are seven central units.
The Private business area is responsible for sales and cus-
tomer service regarding individual insurance and pension
savings for private individuals.The responsibility pertains
to both life and non-life insurance under the Folksam
The Partner business area is responsible for Folksam’s
business with partner and organisational customers. It
includes the group insurance business and commercial
insurance.The business pertains to non-life insurance,
personal risk insurance and savings.
The Collectively Agreed Business area is responsible
for the parties to collective bargaining agreements in
the Swedish labour market.This includes, for instance,
occupational group life insurance, health insurance and
pension savings, as well as services and administration for
Tre Kronor Försäkring
Product and Claims
Folksam LO Pension
We are continuing to grow in both the life and non-life markets. More customers and more
satisfied customers combined with a financial strength that is better than ever make us
one of the industry’s strongest players. This provides us with the conditions to continue
providing security and high returns.
Premiums comprise premiums earned in PC insurance, premiums
written in life insurance, and receipts and fees from unit-linked insur-
TOTAL PREMIUM VOLUME
2013 SEK 40,438 million
2012 SEK 35,226 million
2011 SEK 33,263 million
2010 SEK 30,496 million
2009 SEK 29,356 million
2009 2010 2011 2012 2013
We have the offerings for every need in pension savings,
personal risk and non-life insurance. Demand for our
products is growing in all groups.The premium income
increased by 15 per cent or SEK 5.2 billion in 2013 to total
SEK 40.4 billion.
The market share measured in total premium income for
life insurance amounted to 14.4 per cent.
The premium volume in traditional insurance contin-
ued to grow in 2013. Our strong key figures and the broad
sales through our own sales force and agent cooperation
contributed to the increase.
Premium payments received from policyholders in
unit-linked insurance have increased sharply in the past
five years.This is a result of the efforts we have made in
the agent distribution market and in contractual pensions.
An improved fund offering to the customers is another
important success factor for the continued growth.The
total unit-linked insurance assets in the four companies
amounted to just over SEK 79 billion at year-end.
Collectively agreed pensions from employers account
for a significant part of the premium volume. Since 2013,
Folksam or one of our subsidiaries can be selected as the
manager of the contractual pension in all agreement areas.
Within the Folksam brand, there is a continued devel-
opment of the offering for the individual occupational
pension market, occupational pensions from employers
who do not have collective agreements.
TOTAL PREMIUM INCOME LIFE INSURANCE
2013 SEK 16.2 billion
2012 SEK 13.0 billion
2011 SEK 11.5 billion
2010 SEK 10.2 billion
2009 SEK 10.3 billion
2009 2010 2011 2012 2013
The premium volume for personal risk was stable during
the year.We offer trade unions, companies and organisa-
tions adapted group life and health and accident insur-
ance.As the sports insurance company, Folksam provides
accident insurance to those active in several of the largest
sports associations in Sweden.
The efforts with individual accident insurance with sup-
plements for financial invalidity and diagnosis insurance
Thanks to a good return on assets, the premiums have
been reduced in recent years for municipalities and county
Premium income increased in both household and home
owner insurance as well as auto insurance. Sales increased,
in part through bank cooperation and greater customer
The commercial market continued to develop positively
with a focus on small businesses, property and auto.
Continued focus on combination discounts increased
the number of policies taken out. Gathering one’s insur-
ance with us should be rewarding and the number of cus-
tomers who have more than one product is consequently
growing.At year-end, 495,000 customers had insured both
their home and their car with Folksam. Of these customers,
58,000 have also chosen Folksam when saving for their
The acquisition of SalusAnsvar accounts for contin-
ued growth in the Swedish non-life insurance market and
expands the collaboration with white-collar workers and
total Premium income Non-life insurance
2013 SEK 9.5 billion
2012 SEK 8.9 billion
2011 SEK 8.2 billion
2010 SEK 7.7 billion
2009 SEK 7.0 billion
2009 2010 2011 2012 2013
The solvency ratio is the most important measure of financial strength for a life insurance
company. It indicates the market value of the company’s assets relative to the guaranteed
commitments to the customers.
The solvency ratio in KPAPension and Folksam Life was
172 per cent and 161 per cent, respectively.This means that
we have 72 per cent and 61 per cent, respectively, more
assets than are needed to pay out the guaranteed pensions.
Ahigh solvency ratio is also a prerequisite to be able to
provide good future return on assets under management.
In 2013, the total return for Folksam Life and KPAPen-
sion amounted to 7.6 per cent and 8.2 per cent, respectively.
Seen over the last five-year period 2009-2013, the average
total return on traditional insurance has been 8.0 per cent
for Folksam Life and 8.3 per cent for KPAPension.
Surplus that benefits the customers
Folksam is a mutual insurance company.This means that
our customers are our owners.The profit we make does not
go to shareholders, but rather stays with our customers in
the form of better insurance and bonuses.
In light of the strong financial position, the bonus was
reinstated in Folksam General in 2012.The programme is
long term and the size of the bonus is based on the profit
for the year.
For 2013, SEK 278 million has been reserved. Disburse-
ments will take place in 2014 and the bonus comprises a
total of 1,750,000 customers.
In 2013, two increases of the bonus rate were carried
out on traditional pension savings.The bonus rate was in-
creased from 4.5 per cent before taxes and fees to 5 per cent
inApril and then to 6 per cent in June.The bonus rate was
increased in light of Folksam’s strong development and the
fact that the collective consolidation in the company (the
ratio between the company’s assets and how much is dis-
tributed to the policyholders) is above the set target level.
KPAPension uses rate of return instead of the bonus rate.
The rate of return means that all returns are distributed
directly to the savers’ accounts after every quarter.
The collective solvency ratio is therefore always
100 per cent at KPAPension.The rate of return for
2013 was 8.0 per cent.
Solvency ratio Folksam Life
2013 161 %
2012 144 %
2011 134 %
2010 158 %
2009 149 %
2009 2010 2011 2012 2013
Folksam Life at year-end
Solvency ratio 161%
Collective funding ratio 120.4%
Bonus interest 6.0%
Total return 2013 7.6%
Average return 2009-2013 8.0%
Folksam General at year-end
Solvency ratio, Parent Company 149.3%
Combined ratio 103%
Total return 2013 7.7%
Cooperative occupational pension
Collective funding ratio 118.4%
Bonus interest 6.0 %
KPA Pension at year-end
Solvency ratio 172%
Collective funding ratio 100%
Rate of return 8.0%
Total return 2013 8.2%
Average return 2009-2013 8.3%
The relationship between assets and technical pro-
visions to cover future insurance commitments.
Collective funding ratio
The ratio between asset values and the com-
pany’s total commitments.
Consolidation capital in relation to one year’s premium income.
Folksam Life is a customer-owned company. Our surplus
goes back to our owners through the bonus interest. The
rate is not guaranteed, and the company can reclaim the
part of the surplus that exceeds the guaranteed rate.
Total return ratio
The sum of yield and realised and unrealised
changes in the value of investment assets.
Folksam General is a customer-owned company. Our
surplus goes back to our owners through the bonus.
Total return five-year average 2009-2013
Branschen 7,8 %
Folksam Life 8,0 %
KPA Pension 8,3 %
Branschen Folksam Life KPA Pension
Total return Folksam Life
2013 7,6 %
2012 7,0 %
2011 6,5 %
2010 8,7 %
2009 10,3 %
2009 2010 2011 2012 2013
The combination discounts and bonus are examples of steps
we have taken in recent years. What the customers think and
what we do go hand in hand and the measurements show that
the customers have never been more satisfied than they are now.
Ten years ago, we looked more at what our existing customers
thought about our existing products. We now involve the custom-
ers from the beginning when we develop products and offers.
In charge of research at Folksam
Background Has worked with surveys at Folksam for ten years.
Of the customers who have been in touch with us, 96 per cent say they are satisfied and
that it was easy for them to get through. In addition, they also feel that they received good
The competition for customers is increasing at the same
time that the differences between the players are decreas-
ing. Consequently, how we handle contact with custom-
ers is of major importance to customer satisfaction.To
measure satisfaction and what the customers think of us,
we continuously do surveys in Folksam.
When we measure satisfaction in our entire customer
base, we use the Folksam Customer Index (FCI). In 2013,
satisfaction among the customers developed well and ex-
ceeded the set targets.The fact that our customers are more
satisfied than ever is most clearly seen in our measurements
of those who have been in contact with us. Nine out of ten
customers who have had a claim or have been in contact
with our customer service are satisfied.
Sensitivity and action have good results
What the customers think and what we do go hand in hand
with the results in our customer surveys. Some examples
of measures are the combination discounts and the bonus
meet the customers’ wishes that we see and appreciate
them having many policies with us and being long time
customers.The customers being claims free and taking
preventive steps also provides discounts or lower costs on
Since many customers feel that it is difficult to under-
stand how insurance works, we are also working to make
both the products and the information about them simpler
and clearer for a better experience.
Our customers care about how listed companies handle the issues of sustainability.
We influence the companies we invest in by applying environmental, human rights and
We at Folksam firmly believe that companies that take
responsibility for the environment and human rights are
more profitable in the longer term.There are companies
we have deliberately chosen not to invest in, regardless of
how small their environmental impact is or how good a
working environment they have.The exclusion criteria are
tobacco and illegal weapons such as cluster munitions,
anti-personnel mines and nuclear weapons.All companies
within Folksam apply these criteria, with two exceptions.
The subsidiary KPAPension has decided on even tougher
exclusion criteria and also does not invest in the alcohol
industry or the commercial gambling industry.
For Folksam General, where auto, home and second
home insurance has been certified with the Good Envi-
ronmental Choice ecolabel, this means that investments
in coal-fired power, nuclear power and uranium are also
Influencing companies to take responsibility
We have SEK 304 billion under management on behalf of
just over four million customers.This gives us the ability
to influence and change society in the long term. Our
objective of persuading companies to assume their social
responsibility is very much for the public good, as we be-
lieve that knowledge helps bring about positive change.
We regularly publish reports and indices in which we
present information on the companies’ performance in
areas such as the environment, human rights and gender
We influence in many ways: through meetings, letters,
atAGMs and by conducting an active dialogue for con-
Folksam's work on Corporate Governance
2013 2012 2011 2010 2009 2008 2007 2006 2005
Number of companies with which Folksam has engaged
in active dialogue
31 45 57 77 45 38 41 7 14
Number of Swedish general meetings in which Folksam
43 39 421
39 35 28 21 18 15
Nomination committees of which Folksam is a member 2 3 2 3 4 2 1
Includes an extraordinary general meeting
UN principles guide Folksam
The UN Principles for Responsible Investment (PRI) are
a UN initiative launched in 2006 and aimed at introduc-
ing sustainability issues into the investment process for
institutional investors and pension managers. Folksam was
the only Swedish investor to take part in drawing up the
guidelines, which apply to the environment, social issues
and corporate governance (ESG issues). Folksam was also
one of the first investors to endorse the principles.
Folksam will incorporate ESG issues into invest-
ment analysis and decision-making processes.
Folksam will be an active owner and incorporate ESG
issues into its corporate governance policy and practices.
Folksam will seek appropriate disclosure on ESG
issues by the entities in which it invests.
Folksam will promote acceptance and imple-
mentation of the Principles for Responsible In-
vestment within the investment industry.
Folksam will work together with other inves-
tors to promote use of the Principles.
Folksam will report on its activities and progress towards
implementing the Principles for Responsible Investment.
Year’s events in brief
• Folksam participated in 43 annual general meetings,
one extraordinary general meeting and was represent-
ed on two nomination committees during the 2013
financial season. Besides this, Folksam was involved in a
number of dialogues with corporate boards with regard
to incentive systems.
• In 2013, the operations of 1,847 companies were re-
viewed, focusing on their performance in relation to the
environment and human rights. Folksam’s 20 largest
Swedish holdings were contacted and meetings were
held with six of these during the year. In addition to
this, 20 Swedish companies were identified that ran the
greatest risk of exposure to incidents in the environment
and human rights. Four companies were selected, and
meetings and teleconferences were held to examine the
companies’ risk situation.
• In 2013, Folksam voted at a total of 251 foreignAGMs.
Among other matters, we voted for proposals that Sta-
toil should conclude its oil sand extraction in Canada,
and a proposal on expanded representation by female
board members in BCE Inc.
• The Folksam Index of Corporate Social Responsibility
was presented for the sixth time in 2013. Ericsson re-
ceived the highest rating for its work with human rights
andVolvo received the highest rating for its environ-
mental efforts. Ericsson received the year’s highest total
rating in terms of both human rights and the environ-
• Since 2008, Folksam has been cooperating with the
Norwegian life insurance company, KLP, and Finnish
pension company Ilmarinen, in the Nordic Engagement
Cooperation (NEC).The purpose of NEC is to coor-
dinate corporate governance activities for the environ-
ment, human rights and anti-corruption. In 2013, NEC
had a dialogue with 11 different companies, all based
outside the Nordic region.
• The Department for Responsible Ownership was
represented at several seminars and panel discussions
during the year, including at the “politician week” in
• Folksam’s Department for Responsible Ownership
has run the blog “ACatAmong the Pigeons”
(www.agarstyrning.folksamblogg.se) since 2009.
This blog continued in 2013 and was also supplement-
ed by a twitter account, @etikkatten, where the latest
updates are regularly published.
Read more about the UN Principles for
Responsible Investment (PRI) and how
Folksam meets its commitment as a signer
in Folksam’s sustainability report.
Carina Lundberg Markow
Head of Responsible Ownership
When I came to Folksam
in 2001, I saw the traffic
researchers as role models.
She has been called troublesome and powerful, but has also been rewarded as a Super
Communicator. Carina Lundberg Markow, Head of Responsible Ownership, was the one
who began the work with ethical investment criteria in Folksam.
“When I came to Folksam in 2001, I saw the traffic
researchers as role models.Their tests and reports were a
good way to influence the auto industry and the customers
and at the same time build the brand. My goal was that we
should work with Folksam’s ethical investment criteria in
the same way - with the foremost aim of influencing the
Today, Folksam is among the ten largest owners on the
stock exchange, but at that time, we were maybe the 18th or
“Then, it was difficult to be heard at the companies; they
shrugged everything off. Many senior executives had not
even reflected over sustainability issues.They were infu-
riated.The strongest supporter group was environmental
and sustainability managers who felt that they finally had
somebody from the outside who was watching and wanted
to emphasize their work.
The strategy has primarily been to reach listed compa-
nies through the media and consequently, the trade press
has been a main focus. Most of Folksam’s customers do
not read the likes of Dagens Industri every day, however,
and reaching out to them has been a challenge - there is still
a great deal to do.”To reach out to the customers, all of the
employees are an important channel. Sustainability issues
have proved to be a way to build new customer relations
and cultivate existing customer relations. Carina has been
successful in her strategy and is frequently seen in the
media in Sweden.
“If you are going to talk about these issues, a person has
to do it even if it happens that the person, rather than the
organisation, is emphasized. I still think that the vast ma-
jority of people associate me with Folksam.Talking about
ethics in business, the environment and gender equality has
meant that I have been viewed as troublesome - a role I am
happy to accept if it is what is needed to get our message
out.At the same time, the view of sustainability issues has
become more modern.Today, I am not perceived as much
as a troublemaker as I was a few years ago.”
What does the work look like today?
“An incredible amount has happened and has done so
quickly.Today, business leaders have better knowledge
about what risks their companies run based on a sustain-
ability perspective.Afew have even realised that there is
potential to increase their sales and thereby their profits.”
Folksam has the ambition of being on the forefront in environmental and climate work and
has worked with sustainability issues since the 1960s. Environmental and climate issues are
of central importance to us - nobody will be able to afford insurance in the future if we do not
all help out to slow the climate changes. Because we are a large company, we have consid-
erable opportunities to exert an influence and our high environmental requirements have
contributed to a better environmental standard at several large subcontractors.
Both our auto and building damage operations are envi-
ronmentally certified under ISO 14001. In 2011, our auto,
home and second home insurance received the stringent
Good Environmental Choice ecolabel from the Swedish
Society for Nature Conservation.To conduct an active
dialogue with our stakeholders, we worked with ISO 26000
in 2013, a guiding standard in social responsibility.
… and 2014, we will educate nearly 2,000 companies
throughout Sweden in environmental impact.
… our purchasing organisation began working according
to the substitution principle, which meant that all new
procurement has been guided to more environmentally
… we worked out a digital platform for dialogue with our
All emissions are climate compensated
Folksam’s climate footprint from its own operations
amounts to 2,792 tonnes CO2
e in 2013.The foremost emis-
sion sources were air travel, road travel and heating, which
together accounted for 94 per cent of the total emissions.
These are the areas we are focusing on to reduce our cli-
Folksam also calculates the climate impact from energy
and water consumption from the properties Folksam
invests in, which we describe in more detail in our sustaina-
For several years, we have climate compensated the
portfolio through theViAgro-Forestry Programme
tree-planting project.ViAgro Forestry plants an average
of five trees for every tonne carbon dioxide emitted.The
total climatic impact that we compensate for amounts to
6,751 tonnes of carbon dioxide.This means that nearly
34,000 trees will be planted.
2013 2012 2011
Road travel 765 873 800
Air travel 1,092 1,092 940
Train travel 2 2 0.003
Heat 765 348* 371*
Electrical system 6 7 7
Printed matter 57 74 64
Paper 82 78 65
Coffee 21** 13 14
Water*** 2 2 Not
Total tonnes CO2
e 2,792 2,489 2,261
* Only the head office’s heating was included in the figures in 2012 and 2011
** For 2013, all coffee purchased for Folksam’s operations is reported
*** Only water consumption for the head office in Skanstull is included. Folksam’s other
offices and Förenade Liv’s offices are not included in the reporting.
Clear guidelines for business travel
Our travel policy provides all employees with clear guide-
lines for business travel. It states that every journey should
be well-planned and justified and that rail travel should be
used for trips up to 500 kilometres, such as the route Stock-
holm-Gothenburg, for environmental reasons.
Fewer offices results in lower electricity con-
All electricity purchased for Folksam’s and KPAPension’s
head office, the offices throughout Sweden and Folksam’s
subsidiary Förenade Liv’s office premises is ecolabelled
with the Good Environmental Choice ecolabel. Electric-
ity consumption, and thereby the climatic impact, from
the offices decreased in 2013 by approximately 11 per cent
compared with 2012.The reason for the decrease is that we
continued our reorganisation in 2013 to improve efficiency
of the operations at the offices around the country.
From print to digital
We have a clear ambition to reduce the number of printed
materials by increasingly shifting from physical printed
matter to publishing information in a digital format.This
means that customers will have the opportunity to receive
insurance conditions and invoices digitally. In 2013, 4
million fewer copies of insurance terms and conditions
for non-life and group insurance, and the climate impact
from printed materials decreased by 17 tonne CO2
decrease was also due to more detailed documentation
being prepared during the year, which made it possible to
calculate the total weight and thereby perform more exact
Environmentally friendly car repairs
To reduce the environmental impact from car repairs,
the repair shops that we engage extensively recycle spare
parts instead of automatically choosing new spare parts.
In addition, plastic parts and glass windows are repaired
instead of always using new spare parts. Re-using and re-
pairing instead of buying new does not just represent a gain
for the environment, but is also a good deal for us and our
customers. In 2013, this approach contributed to avoiding
a 1,441-tonne mountain of waste and savings of just over
SEK 147 million in the repair of damaged cars.
Suppliers are trained in Good Environmental
In 2013, the purchasing organisation held digital environ-
mental training for all suppliers of claims adjustment in the
construction sector, and also began the same training with
suppliers in the auto sector. In total, this training was sent
out to all 261 suppliers in construction, where all employ-
ees with customer contact or who do claims adjustment
were requested to participate. In 2013, we also began the
distribution of the training to our 1,575 suppliers in auto.
The training resulted in all participants receiving the infor-
mation needed to create a fundamental understanding of
the criteria that Good Environmental Choice sets, both on
the certified products, but also on our suppliers of claims
adjustment.The objective was to spread basic knowledge
to the participants about how the environment is affected
by the daily work methods in the respective industry, and
how an operation can work to reduce its negative environ-
Read more about our environmental efforts in the
Folksam Sustainability Report.
Environmental and Climate
Manager at Folksam
The environmental and climate
issue permeates all we do in
“Nobody will be able to afford insurance in the future if we do not take responsibility for
the climate issue - insurance companies will not be able to afford to do business and
individuals will not be able to afford to take out insurance.”
These are the words of Karin Stenmars, Environmental
and Climate Manager at Folksam, when answering the
question of why the environment is important to an insur-
“Our mission as an insurance company is not only
to spread the risks between groups and individuals, but
also over time. Individual events do not directly lead to
premiums increasing. However, climate changes over time
will affect our planet. More storms, higher water levels and
more precipitation, with more damage as a result, are a few
of the challenges to society.”
In recent years, there have been a lot of storms, is this
something you notice in Folksam’s claims payments?
“Storm damage in particular has not hit us so hard,
since our customers do not have so much forest insured.
However, we are dominant in the home insurance market
and there, we see an increase in water damage as a result of
a wetter climate and increases in flooding. Housing close to
the coast will be much more exposed in the future; there is
talk of the water level rising by one metre in 80 years,” says
For this reason, Folksam works based on a comprehensive
responsibility and uses its knowledge and strength to drive
change, including by setting stringent environmental re-
quirements on itself and the companies it cooperates with
or invests its customers’ funds in.As an example, our auto,
home and second home insurance products have been
certified with the Good Environmental Choice ecolabel.
“Sustainability is about a long-term approach and it ap-
plies regardless of whether we will manage pension funds,
invest in the property market, repair damage to a house or
influence which cars should be on our roads.What we do
shall last for many years,” says Karin.This is the macrop-
erspective, but we also need to talk about the issue from a
microperspective. It is in daily life that we all can have an
The knowledge Folksam’s traffic research provides is used to save lives in traffic. Fewer
traffic injuries also means lower injury costs and thus lower traffic insurance premiums,
which benefits our customers.
We use our research findings to exert influence in making
traffic safer.Through our ties to universities, we can be
involved and exert influence through national and inter-
national networks. Consumer tests and information are
also important tools since there is a demand for knowledge
from independent parties regarding, for example, safe cars,
child car seats and helmets in connection with purchases.
We can also exert influence through our own insurance
solutions where, for instance, the safest cars have reduced
Our traffic research focuses on:
• safer cars
• speed limit compliance
The traffic research costs approximately SEK 7-8 per vehicle
insurance policy and year.
Några av våra trafiksäkerhets-
aktiviteter under 2013
Volvo superior in our ranking of safe cars
“How safe is the car?” is Folksam’s ranking of the crash
safety of cars and is based on the outcome of real ac-
cidents.The highest rating in this year’s report went to
Volvo’s modelsV70, XC70, S80, S60 andV60 from 2007
and forward.Their safety level is nearly 60 per cent higher
than the average car and 12 percentage points better than
number two on the list, Honda CRV98-06.
Every year, we handle more than 50,000 road traffic
claims.This gives us access to a large collective knowledge
about how damage and injuries arise, how they can be
avoided or limited.The make and model of car you are
travelling in is very significant for the consequences of an
Per cent better
than the average
Volvo V70/S80/S60/V60 07- 59
Honda CRV 98-06 47
Volvo V70/S80/S60 00-06 46
BMW 5-series 04-09 44
Audi A4 01-07 43
Mitsubishi Galant 97-03 42
VW Passat/CC 08- 42
Volvo XC90 02- 42
In this year’s report, we ranked 238 car models.
New agreement with OKQ8 and Hertz
Upon damage, many of our auto insurance customers get
a rental car while their own car is in the workshop.We then
ensure that the customers get sustainable cars by setting
requirements on what safety and environmental standards
the rental cars shall have. However, the greatest effect is
on the used car market. Since the rental car companies
most often replace their car fleet after 9-10 months, we
are involved in influencing the standard of the cars in the
second-hand market.The criteria are based on Folksam’s
annual list over safe and sustainable cars.
Whiplash protection most effective for men
We carried out the first study in the world that shows how
effective whiplash protection in cars is for men and women,
respectively.The results show large differences in the pro-
tective effect between the genders.The whiplash protection
in one out of five cars has little or no protective effect for
women, while the same protection functions well for men.
One cause of the difference is that car makers for many
years have worked based on the physiology of men in the
development of whiplash protection.
60 per cent fewer skull injuries with bicycle
Our study shows that bicycle helmets prevent 60 per cent
of all bicycle-related head injuries that lead to chronic
difficulties. Nearly four out of ten serious face injuries can
also be prevented.
The study is based on just over 55,000 injuries reported by
the emergency hospitals in Sweden between 2003-2012.The
results were presented at the international scientific traffic
safety conference IRCOBI in Gothenburg.
12 of 13 approved child bicycle helmets do not
protect against the most common head injuries
We presented a bicycle helmet test for child helmets just
before the summer. Blows where the head is subjected to
rotation are the most common kind of violence in a bicycle
accident and can lead to brain injury. In spite of this the
Swedish ConsumerAgency’s certification tests of bicycle
helmets do not include blows with rotation. Folksam’s
more stringent test of the most common bicycle helmets
for children and adolescents shows that only one of the 13
CE-approved helmets protect against injuries as a result of
blows with rotation.
ABS brakes crucial to motorcyclist safety
One of our studies shows that motorcyclists that ride with
ABS brakes run a full 65 per cent lower risk of suffering
injuries that lead to medical disability than motorcyclists
who ride withoutABS.
Of the approximately 300,000 motorcycles on Sweden’s
roads, only around 18 per cent are equipped withABS
brakes. But there is a positive trend. Between 2008 and
2012, new sales of motorcycles withABS increased from 15
per cent to 70 per cent. From 2016,ABS brakes are compul-
sory on all new motorcycles over 125 cc. If all motorcycles
hadABS, 13 deaths and 160 severe accidents could have
been avoided every year. Motorcycles equipped withABS
receive a 15 per cent premium reduction with us.
Automatic brakes difficult for car buyers to
Automatic emergency brakes are one of the car’s most im-
portant protective systems. However, although the system
is just as effective as anti-lock brakes and airbags, there are
very few car makers who offer it as standard equipment.
Moreover, there are several different kinds of automatic
brakes and it is difficult for the consumer to find out how
the various systems work.
Earlier studies have mainly shown the accident-avoidan-
ce effect of automatic brakes. Our new study shows that the
damage-reducing effect is even higher due to the reduced
crash violence in the crashes that nonetheless occur.Auto-
matic brakes that engage upon rear-end collisions on roads
with a speed limit up to 50 km/h reduce the drivers’ injuries
in the car hit by a full 64 per cent. In about 40 per cent of
cases, a collision still occurred, but without causing any in-
juries. In addition, around 25 per cent of the accidents are
estimated to have been avoided entirely. Cars with automa-
tic brakes as a standard receive a premium reduction.
Studded or non-studded winter tyres?
Before every winter season, voices are heard discussing
what is best, studded or non-studded tyres.We therefore re-
viewed test data for 44 studded, 31 Nordic non-studded and
11 Central European winter tyres to investigate what type
of tyre works best in the winter in various parts of Sweden.
The review assumed that there is a connection between
braking distance and accident risk.
Our review shows that Nordic non-studded winter tyres
are best adapted to the winter climate in southern and cen-
tral Sweden.Although the braking distance is somewhat
shorter with absolutely new studded tyres, it is most often
bare ground in these parts of Sweden so that the studs are
worn down and approach non-studded tyres after just a few
We can make a difference and help
By analysing the injuries and damage that occur, we can
provide advice on the best products and how one can pre-
vent accidents and injuries.Another way is to integrate this
knowledge into the insurance.Another example is that we
have lower premiums for more environmentally sustaina-
ble cars and motorcycles withABS brakes.Yet another is
that our home and auto insurance has the Good Environ-
mental Choice ecolabel.
Motorcycles are an interesting area of research with large challenges.
But our largest impact is within car and bicycle accidents where the
most injuries are.
Matteo beginning with research was not a deliberate choice, but rather a
desire to improve things. His interest in everything on wheels led him to the
traffic field. His own interest in motorcycles has gone from riding as fast as
possible to taking in the surroundings he passes.
Traffic safety researcher in Folksam
Background: Mechanical engineer and doctoral student in engineering
science. Began riding a moped at the age of 14 and is a passionate collector
Folksam has a long history as an insurance provider and
partner for Swedish sports. Through cooperation with most
of the sports federations, nine out of ten active sports
practitioners are insured with us. Besides being an insur-
ance provider, we support sports through sponsorship and
injury-prevention research. Our hearts beat for sports!
Through the Swedish Sports Confed-
eration’s basic research, all leaders and
functionaries in 20,000 associations
and 70 special confederations are
insured with us. In addition, 53 of the
70 special associations have signed a
licence or membership-linked accident
insurance for the athletes.With 1.6
million practitioners insured, we have
a total market share of just over 90 per
cent.We are also an insurance provider
within the elite division collectively
agreed pension and insure just over
3,000 sports associations’ property.
Major cooperation agreements
• The Swedish Sports Confede-
ration’s basic research for all leaders
• The Swedish Football Association’s
licence insurance for 330,000 licensed
players and 350,000 young people.
• The Swedish Golf Federation’s
member insurance with 500,000
• The Swedish Floorball Federation’s
licence insurance for 120,000 licensed
Elite and exercise sports with a
Sponsorship is an important part of
being the insurance company of sports.
The objective of sponsorship is to build
the brand by supporting both elite
and exercise sports and creating and
strengthening long-term relationships
with Swedish sports.When we go in as
a sponsor or partner, the sports shall
have a broad support base and engage
people regardless of age, gender, origin
or social class.Through agreements
with the associations, we primarily
cooperate with football, track field,
sports for the disabled and cross-coun-
Aunique database of 16,000 registered
sports injuries provides an opportunity
for research and injury prevention
efforts. Focus in 2013 has been on the
knee control project, sudden death
among young athletes and support
for a doctoral candidate position in
cooperation with the Swedish School
of Sport and Health Sciences (GIH).
I am incredibly proud
of the knee control ini-
tiative and that our app
has been downloaded more than
The knee control project is a
concrete effort to prevent knee
injuries for a new generation of
Director, Folksam Sports
Background: Has had the benefit
of working with the Swedish sports
movement since the 1980s and as
the Director of Folksam Sports
Knee injuries are common in
football and teenage girls are
especially affected. The knee
control project is an initiative by
the Swedish Football Association
and Folksam that began as early
as 2008. The objective is to train
football coaches, leaders, parents
and players on how to exercise to
prevent knee injuries among girl
players aged 12 and up. A sim-
ple exercise programme of 10-15
minutes sharply reduces the risk
of serious knee injuries among girl
Since 2013, the
in the app,
There are more
than 30 filmed
mation on the
As Sweden’s largest insurance company with several
subsidiaries, Folksam can offer many interesting career
opportunities in several businesses. Many employees also
appreciate working in a responsible company that has the
financial strength to make a difference.
Folksam has just over 3,600 employees
in several cities and multiple compa-
nies.They work with everything from
claims adjustment and advice to IT,
legal affairs and risk assessment.The
right skills and long-term sustainable
employees are a prerequisite for being
able to offer insurance and pension
savings that provide security.
Every employee is an important
Every employee is a major and key
investment - both for Folksam and
the applicant. Managers are therefore
trained to take a long-term view of
Folksam’s supply of expertise and to
always recruit and develop the employ-
ees in consideration of the next phase
In 2013, 529 employees were recruit-
ed externally. Nearly as many switched
jobs internally, either after having ap-
plied for a new job on their own or due
to a reorganisation.The largest part
of the recruitment is in sales, claims
adjustment and IT.
In 2013, the procedures and support
in the staffing process were updated,
in part to meet future requirements in
the EU Solvency II directive - special
aptitude testing of management and
Support during organisation
The work of recent years on changing
the organisation in sales and claims -
how we personally treat the customers
- continued.The change work has been
based on the customers’ wishes, market
conditions and our need to be competi-
tive even in the future.The change has
entailed major internal relocations for
employees in different cities in Sweden
and a cooperation forum worked to
find the best possible solutions for the
employees involved. For those thinking
about the next career move, there is the
possibility of career planning with an
In September 2012, Folksam
announced the acquisition of the
insurance company, SalusAnsvar, and
in September 2013, around 130 new
employees moved over to various parts
of Folksam. In conjunction with the
transition, the employees received a
special introduction day and career
talks tied to the receiving units.
total 44.8 years
in the boards
Gender distribution in
Safe and stimulating working
We shall have a work environment that
promotes good health, motivation and
productivity.This means a workplace
where the employees feel secure and
have stimulating work and where
consideration is taken to physical and
Achange project that concerns the
office workstations is under way.The
project is focused on activity-based
workplaces and the objective is to
obtain a more efficient work organi-
sation and more learning and to lower
premises costs.We also encourage
virtual meetings over the computer,
which has a positive impact on both the
environment and finances.
Efforts to reduce sickness
The SwedishWork Environment
Authority conducted six work environ-
ment inspections in Folksam in 2012
and 2013.The results show that we have
well conceived processes for the work
environment efforts and the Swedish
Work EnvironmentAuthority only had
a few minor remarks that have now
Sickness absence was 4.2 per cent
in 2013.This was an increase that was
seen in both Folksam and the rest of
Sweden and it was probably due to
several factors.To turn the developme-
nt, analyses are conducted and action
plans prepared for groups with high
Diversity and equality
We believe that diversity contributes to
customer benefit, greater profitability
and a more attractive workplace. Con-
sequently, we work goal-oriented for
an inclusive cooperation climate where
the employees’ expertise is utilised and
there is acceptance for differences.
Through a clear and expertise-based
staffing process, diversity is support-
ed and the risk of discrimination is
The fact that Folksam currently has
nearly 50 per cent women managers is
an example of results of goal-oriented
diversity work. In 2013, a revised diver-
sity plan was prepared and the desire
is that the diversity issues shall be even
more integrated into the workday.
In the review by the Equality Ombuds-
man, Folksam’s work on equal wages
received good marks. In a comparison
of the average salary between male and
female employees with similar jobs, the
salary difference was approximately 4
per cent in 2013.To obtain fully equal
salaries, Folksam surveys and anal-
yses potentially non-objective salary
differences in salary reviews every year,
instead of just doing a survey once
every three years as required by law.
The salary is set individually, is differ-
entiated and shall be based on degree
of difficulty and responsibility in the
position and the employee’s expertise,
experience and performance. For
parental leave, Folksam provides a
salary surplus so that the employees
receive 90 per cent of the monthly
salary regardless of income in the first
Annual employee survey
In this year’s employee survey,
the total index ended at 76* per
cent. This is 4 per cent higher than
the year before and the best total
index measured in Folksam.
* Proportion of employees who
responded in agreement to the
question or market the rating 4
or 5 on a five-degree scale.
We have a good atmosphere where I work and you feel that your
voice is heard. In contrast to when I worked at a bank, I think that
it is easier to justify one’s stance in that we are customer owned.
Mårten mainly works with fund insurance and his duties include analysing
profitability and creating models to describe how the business will develop.
works as an actuary in Folksam
Background: Master of Science in Engineering Physics. Two years as an
industrial doctoral student in finance with contact in the bank world.
Folksam is one of Sweden’s ten largest investors and manages assets of SEK 304 billion.
The customer’s money is invested in interest-bearing securities, equities, properties and
alternative investments focused on long-term security.
Two thirds of all capital is invested in interest-bearing
securities issued by the Swedish government, Swedish
municipalities, Swedish mortgage institutes or Swedish
companies. Folksam’s equities portfolios consist of listed
Swedish and non-Swedish equities.At the end of the year,
Folksam owned property assets, including property funds,
totalling SEK 20 billion.The overwhelming majority of
directly owned properties are located in Sweden and their
market value totals SEK 16.2 billion.The value of the alter-
native investments was SEK 5 billion at year-end.Alterna-
tive investments are investments that have a low correlation
with equity and interest rate markets.
Eleven companies with various investment
Folksam consists of 11 insurance companies, all with dif-
ferent profiles and emphases. Consequently, the Board of
Directors of each company establishes individual objec-
tives and levels of risk for the asset management, establish-
ing the limits within which the capital may be invested.
The greatest risk for an insurance company is in the long
run to not be able to cover its obligations towards policy-
holders.To manage this risk, special consideration is given
to the nature and duration of the insurance commitments
in he composition of the investment assets.
Special rules apply to the asset management, mainly the
placement regulations of the Insurance BusinessAct. In
addition, we comply with the Financial SupervisoryAu-
thority´s regulations and general guidelines as well as each
company’s rules for environmental and ethical consider-
ations.The risk level of each company’s asset portfolio is
monitored on an ongoing basis. It must be highly likely that
the statutory requirements for each portfolio are able to
be met and the risk level may not be so high as to endanger
this, even during a very negative trend on the financial and
Folksam total, SEK billion 2013 2012 2011 2010 2009
Assets under management 304,299 275,380 252,653 235,070 215,005
of which interest bearing 189,721 184,329 174,906 148,621 137,242
of which equities 89,779 68,670 58,664 70,086 63,579
of which alternative investments 5,050 3,754 3,183 2,010 1,887
of which directly and indirectly owned property 19,749 18,627 15,900 14,353 12,297
Focus on stable returns
Folksam General SEK 32.1 billion
Folksam Life SEK 135.0 billion
KPA Pension SEK 101.6 billion
Foundation SEK 22.6 billion
Other SEK 13.0 billion
Managed assets by company
Folksam’s asset management determines how assets are
invested within the limits decided on by the boards. In
order to achieve good risk diversification, the holdings are
distributed between a wide variety of asset classes and mar-
kets. Certain types of investments are managed internally,
while others are managed externally. Positions managed
internally are primarily conducted through derivatives to
tailor each company’s level of risk.This may, for instance,
involve stock options that decrease or increase the effects
of fluctuations on the stock exchange. Interest derivatives
are used, for example, to hedge disbursements of guaran-
teed benefits to life insurance policyholders.
Management mandates are currently given to the
internal functions of Folksam Fastigheter andAlternative
investments, and externally to Swedbank Robur,Aktia
Asset Management and DNB.The most extensive external
management assignment is the one to Swedbank Robur
and comprises approximately SEK 240 billion. Swedbank
Robur also manages the majority of the continuous ad-
ministration of transactions and securities holdings.The
role of Folksam asset management is to be responsible for
governance, monitoring and evaluation.
By owning the right properties, we create good returns in
the management of our customers’ assets.The directly
owned properties are managed by Folksam Fastigheter.
We build, manage, let and develop these properties.With
residential properties, nursing homes, offices and shops in
attractive locations, we can also offer secure housing and
Alternative investments refer to an internal management
mandate with a long investment horizon which aims to give
policyholders access to unlisted assets. Investments must
show a low correlation with the interest rate and equity
markets and are made mainly in fund-like structures.
Alternative investments, SEK million
Hedge funds 288
Private Equity/Credit funds 1,026
Number of properties 130
Market value SEK 16,249 million
Total rentable area 549,883 m2
Rental income SEK 1,058 million
Strategic company holdings
Corporate strategic investments are investments of
particular strategic importance to each principal and are
characterised by the fact that it is the Boards who decide on
purchases or disposals.
One important strategic holding is Swedbank, where
Folksam owns just over 9 per cent of the shares.At the end
of the year, the value of the shares in Swedbank was nearly
SEK 19 billion.
Total return ratio
The objective of investment management varies between
the different companies. For Folksam Life and KPA
PensionsförsäkringAB, the objective is to achieve the
highest level of real return under relevant risk and invest-
ment limits, while in Folksam General and the rest of the
companies, it is to contribute to stable and competitive
premiums. For the life business, the objective should mean
at the very least, an annual real rate of return of three per
cent on average, measured over a ten-year period. Folksam
has, for a number of years and in different market condi-
tions, proved to be able to manage the risks and opportuni-
ties in asset management in order to create long-term good
returns for policyholders.The total return for 2013 was 7.7
per cent for Folksam General, 7.6 per cent for Folksam Life
and 8.2 per cent for KPAPensionsförsäkringAB.
Total return ratio
In per cent 2013 2012 2011 2010 2009
Folksam General 7.7% 8.2% 6.9% 6.7% 8.1%
Folksam Life 7.6% 7.0% 6.5% 8.7% 10.3%
KPA Pension 8.2% 7.2% 5.6% 8.2% 12.4%
A fundamental part of our business is assessing and managing risks. Through active,
controlled and business-based decisions on risks, we create conditions for offering the
customers insurance and savings solutions that create security.
In order to clarify management and responsibility for risk
management and control, we divide activities into three
lines of responsibility.
Three lines of responsibility
The first line of responsibility is made up of business
areas and units, parent companies and subsidiaries and
outsourced business.They are responsible for directing
operations so that the targets established by the board are
achieved.They are responsible for risk management activi-
ties, monitoring and compliance.
The second line of responsibility comprises Risk and
compliance departments, and the chief group actuaries.
They support and follow up the first line of responsibility
on the basis of frameworks for risk management, and
are responsible for having an overall picture of the risk
situation in the company and report this to the board and
The third line of responsibility consists of internal audit,
which reviews and evaluates internal management and
control on behalf of the Board.
Risk management in Folksam
We assess risk taking in relation to the possibility of
achieving set targets in five steps.
In the first step, we identify and disentangle all signifi-
cant risks we are exposed to both on the short and long
Risks are evaluated in a uniform manner and quantified
using generally accepted methods.
Here, we use regulations, processes and control ac-
tivities.The business and corporate management are
responsible for prioritising and deciding on measures
necessary to control or limit risk.
4. Follow up
The business and control functions follow up on risks
and measures and ensure that the risks lie within decid-
The board and CEO receive an all-round and factual
view of the total risk situation.
Manager of Risk Compliance in
the Folksam General Group
Control is about responsibility
Risk and Compliance is responsible for following up that Folksam has good internal
control - that the company has control of risks and complies with laws, internal regulations
and generally accepted practice.
“There are higher demands on governance and control for
businesses that require permits, which we are,” saysYlva
Wessén, Manager of Risk and Compliance in the Folksam
General Group. “Of course, it is ultimately about main-
taining our permit, but we are also convinced that good
control leads to a better and more commercial business.”
We insure half of Sweden’s population and manage their
To follow up on shortcomings, all employees must report
incidents that arise. Examples of incidents are thefts, fire,
threats, technical and manual faults, computer virus-
es, personal injuries, near accidents and improprieties.
Incidents also include the cases when regulations are not
followed.An example is Folksam’s ethical rules, one of
our most important regulatory codes.They are about how
we should be perceived and how we want to be - we are an
insurance company that cares about our customers, we are
personable, committed and responsible.
“We most often follow ethical rules without thinking about
them - they are givens in many cases and common sense
will get you far,” saysYlva. Just like we do not behave how-
ever or impolitely in society in general, we shall not do so in
our professional role.
We receive around 500 incident reports a year, which is
too little, according toYlva. It should be more, considering
the number of employees, the matters we handle and the
kind of business we have.
“Our attitude is that the more incidents that are report-
ed, the better.You can do something about an issue only
when you are aware of it.”
Insurance is an important part of society’s safety net. Demands on the insurance industry
from both private customers and politicians are growing in pace with major changes in our
surroundings. The major increase in new regulations from the EU and the Swedish govern-
ment provides a clear illustration of a political need to create more control. Requirements of
greater transparency and comparability for the consumers is one example. At the same time,
the financial players must increase liquidity with the aim of making the systems more stable.
Solvency II is a European regulatory code for insurance
companies. It is a part of a larger effort to create a uniform
European financial market with greater protection for in-
surance policyholders and improved competitiveness.The
new rules in Solvency II strengthen the connection between
solvency requirements and risks for insurance companies,
and entail more stringent requirements on insurance com-
panies having adequate capital to be able to live up to their
commitments to the policyholders.Through greater risk
control, the companies will be governed in a more sound
and suitable manner.
Solvency II provides greater protection to
We began adapting to Solvency II as early as 2009.We
have mainly focused on coordinating the adaptation of
processes and system support we use for corporate govern-
ance and reporting. Solvency II is an important part of the
modernisation of Folksam and the rest of the industry, a
development that is good for both the customers and for us
as an insurance company.
The European Insurance and Occupational Pensions
Authority (EIOPA) decided in autumn 2013 on preparatory
guidelines for the Solvency II regulations.The Swedish
Financial SupervisoryAuthority has decided that Swedish
insurance companies shall comply with EIOPA’s guide-
lines during the preparatory period 1 January 2014 until
1 January 2016 when Solvency II enters into effect.We
have therefore increase focus on getting ready with our
methods and processes for both corporate governance
Folksam comprises the two parent companies Folksam ömsesidig sakförsäkring (Folksam
General) and Folksam ömsesidig livförsäkring (Folksam Life) with subsidiaries. Two of the sub-
sidiaries in the insurance operations in Folksam Life are part-owned. These are Folksam LO
Fondförsäkring, which is 51 per cent owned, and KPA Pension, which is 60 per cent owned.
In Folksam General, the subsidiary Folksam Skadeförsäkring is part-owned at 51 per cent.
Folksam General is customer-owned and undertakes gen-
eral insurance activity principally focused on the Swedish
household market.The company offers a full range of
insurance policies to households and private individuals
based on motor and household insurance supplemented by
commercial insurance in selected areas.
Förenade Liv offers group insurance for life, health,
accident, medical care and child and pregnancy insurance
to employees and members through the employers and
organisations that represent them.At the end of 2012,
Folksam General acquired Förenade Liv from Folksam
Life mainly to strengthen the market position in risk
insurance. Folksam General acquired SalusAnsvar AB
at 31 January 2013.The company in turn owns 49 per cent
of Saco SalusAnsvar FörsäkringsAB and 100 per cent of
SalusAnsvar PersonförsäkringAB. SalusAnsvar provid-
ed insurance to Svenska Konsumentförsäkringar, a
wholly owned subsidiary of Folksam General. In January
2014, the portfolio in Svenska Konsumentförsäkringar was
transferred to the Parent Company Folksam General and
the company will be discontinued.
At the beginning of 2012, Folksam General acquired
51 per cent of the shares in Folksam Skadeförsäkring
(formerlyAktia) fromAktiaAbp in Finland. Folksam Ska-
deförsäkring conducts non-life insurance operations and is
primarily active in the coastal area of Finland.
Tre Kronor offers non-life insurance in Sweden. Its
business concept is to offer non-life insurance to compa-
nies and organisations wishing to sell and market insur-
ance under their own brand names.Tre Kronor currently
collaborates with Swedbank and 59 independent savings
banks and in so doing reaches a broad market with general
Folksam Life is customer-owned and conducts life insur-
ance business.The company offers occupational pensions
and pension investments to private individuals, directly
or through cooperation, but also group life insurance and
other types of risk insurance.
Folksam Fondförsäkring conducts unit-linked insur-
ance operations with ties to mutual funds. Customers can
choose among a large number of selected funds, for exam-
ple ethical funds, funds with low charges and award-win-
ning top-performing funds.
KPA Pension is a brand and joint name for KPAPen-
sionsförsäkring, KPALivförsäkring and KPAPensions-
service. KPAPension is the leading pension company in
the municipal sector and manages occupational pensions
for employees of municipalities, county councils and
municipal and cooperative companies. KPAPensionsser-
vice offers employer service for the handling of municipal
pension commitments, administration of the employees’
individual pension choices and qualified consulting ser-
vices, occupational group life insurance and professional
pension advice. KPAPension offers private individuals
investments in private pension insurance and unit-linked
insurance. KPAPension is owned 60 per cent by the Folk-
sam Group and 40 per cent by the SwedishAssociation of
LocalAuthorities and Regions (SALAR). In 2013, KPA
Pension acquired SPPLiv PensiontjänstAB.
Folksam LO Pension is a brand focused on collective-
ly agreed occupational pensions and principally covers
administration and management of pension allocations
made under the pensions agreement between the Con-
federation of Swedish Enterprise and the SwedishTrade
Union Confederation (LO). Operations are conducted in
Folksam LO Fondförsäkring, which is owned by Folksam
Life with 51 per cent and LO and several of their associa-
tions with 49 per cent.
försäkringar Tre KronorFörenade Liv SalusAnsvar
Folksam Fondförsäkring Folksam LO Pension
Folksam General conducts property and casualty insurance business focused chiefly
on the Swedish market. The company offers a full range of insurance policies to households
and private individuals based on motor and household insurance supplemented by
commercial insurance in selected areas. The operating activities are carried out within
two business segments, Partners and Private.
Earnings and the market
Earned premiums and market shares
The premium income (after reinsurance) in the Group
increased by 7 per cent to SEK 10,974 million (10,287) and
in the parent company to SEK 8,800 million (8,340).The
premiums are increasing in all product areas as a result of
premium adjustments, more insurance policies taken out
and increased customer loyalty with fewer annulments.
The portfolio development is positive in both auto and
Folksam General continued to focus on existing custom-
ers and developing the relationships with their cooperative
partners. Household insurance is the most strategically
important product and comprises the core of the whole
Folksam General was the company that increased its
market shares most in the Swedish non-life insurance mar-
ket in the period 1 January-31 December 2013, compared
with the year-before period.According to statistics from
the Swedish Insurance Federation, Folksam General’s
market share, measured in premiums paid in, increased
to 15.9 per cent (15.4).The market share in the household
market for the Folksam General Group amounted to 20.3
per cent (19.9).
Market shares measured by the number of policies to-
talled 48.8 per cent (48.8) for home contents insurance, 28.3
per cent (28.1) in single-family homeowner’s insurance and
21.4 per cent (21.6) for private car insurance.
Consolidated earnings before appropriations and tax
amounted to SEK 2,019 million (2,031) and SEK 2,056
million (1,874) for the parent company.The earnings for the
insurance business are on a par with the previous year.The
return on assets contributed just as strongly to the positive
earnings in previous years.
Claims incurred (after reinsurance) increased during
2013 and amounted to SEK -8,984 million (-8,488) for
the Group and SEK -7,188 million (-6,919) for the parent
company. In 2013, the setting of reserves was revised with
larger provisions as a result.The annuity reserves for traffic
claims decreased at the same time as a result of a rising
The total cost ratio in the Group and mother compa-
ny decreased by two percentage points to 100 (102).The
claims cost ratio amounted to 82 per cent (83) in the Group
and the parent company.
The operating expense ratio in the Group and parent
company decreased to 18 per cent (19). Operating expenses
increased by SEK 25 million during the year. Claims ad-
justment costs are increasing as a result of rising volumes,
project costs and a reinforcement of the organisation.
Consolidation capital in the parent company continued to
strengthen and amounted to SEK 13,526 million (11,616).
At year-end 2013, the solvency ratio amounted to 149 per
cent (139) in the parent company and the solvency factor
amounted to 8.1 (7.5).
Folksam General’s bonus programme continues and
for 2013, SEK 278 million was reserved. Disbursements
will take place in 2014 and the bonus comprises a total of
Significant events during
the financial year
The boards of Folksam Life and Folksam General ap-
pointed Jens Henriksson as the new President and CEO on
7 May. He succeededAnders Sundström who had previ-
ously notified that he would be resigning to pursue board
work. Jens Henriksson began on 1 September 2013 and
most recently came from a position as the CEO of Nasdaq
In May 2013, it was decided that a consortium consisting
of Folksam, Metso Corporation, NorrskenetAB and Peab
AB would each invest USD 25 million for a total of USD
100 million in bonds issued by Northland ResourcesAB.
Folksam’s investment is divided across Folksam ömsesi-
dig livförsäkring (Folksam Life) and Folksam ömsesidig
sakförsäkring (Folksam General).
Folksam General has a strong financial position and
provides a bonus to the customers for the second consecu-
tive year.Approximately SEK 278 million will be paid out
to the customers.
On 31 January, Folksam General became the owner of
SalusAnsvarAB with the subsidiaries SalusAnsvar Per-
sonförsäkringAB and a 49% holding in Saco SalusAnsvar
FörsäkringsAB.The integration of both expertise and the
insurance portfolio from SalusAnsvar has been successful.
Several large partner customers, especially Saco associa-
tions, are now a part of Folksam’s offering.Agreements on
an expanded holding of 2 per cent have later been signed
with the Saco associations concerning SACO SalusAnsvar
Folksam General has signed an agreement on the
acquisition of HSB’s property insurance portfolio.The
acquisition comprises the roughly 500 tenant owners asso-
ciations that are currently insured with HSB Försäkring.
The premium volume for the assumed portfolio amounts to
approximately SEK 25 million per year.
After an agreement with the Swedish FootballAssocia-
tion, Folksam General invested in a jointly owned compa-
ny that owns 11.1 per cent of FriendsArena in Solna.The
agreement between Folksam and the Swedish Football
Association covers the company that owns the actual prop-
erty, FriendsArena, and not the operating company that
rents and is responsible for the events.
After the strong earnings of recent years, Folksam General
has a very strong financial position and with customer
ownership in focus has paid bonus to the customers since
In the next few years, Folksam General is entering a
phase of consolidation with a focus on efficiency enhance-
ments and modernisation with its financial strength as a
basis.The acquisition of SalusAnsvar has strengthened
the Folksam brand through new partner relationships
with several Saco associations and the integration project
means that the company structure will be streamlined in
the next few years.The customers in the current Svenska
KonsumentförsäkringarAB and SalusAnsvar Person-
försäkringAB are offered non-life insurance in Folksam
General, which entails a higher volume in the parent
company as of 2014.
The market share in the household market continues to
increase and focus remains on the combination customer
offer with auto and home insurance as a base. Customer
loyalty is increasing with more insurance policies including
supplemental insurance, combination customer discounts
Astrategy review is being begun in 2014 to further
strengthen Folksam General at the same time as a distinct
improvement initiative for the operating activities. Claims
expenses and pricing remain important areas of develop-
ment and the steps taken in the terms review, reserve setting
and purchasing are expected to contribute positively to
strengthening the insurance result.The investment margin
for the operating activities is being expanded to increase
customer satisfaction and availability, mitigate operating
deficiencies and enhance the efficiency of processes and
ITsystem, which is expected to increase the operating
expenses in the next few years to improve earnings after a
Like the rest of the industry, Folksam will participate in
the work preparing for Solvency II with an introduction
date of 1 January 2016.The preparation work comprises
Folksam’s own risk and solvency capital assessment, re-
porting and corporate governance. On the longer term, the
new regulations entail greater security for the customers
and greater consideration of the cost of capital adequacy
requirements in both customer offers and investments.
The return for the investment portfolio has in recent
years strongly contributed to the now strong balance sheet,
which provides good conditions for Folksam General to
meet the new capital adequacy requirements placed on
insurance companies. On the longer term, the insurance
results were strengthened to balance the market risk in the
Five-year summary and key ratios, SEK million
GROUP 2013 2012 20111
Premiums written (after reinsurance) 11,265 10,223 9,697 9,125 8,552
Premiums earned (after reinsurance) 10,974 10,287 9,362 8,822 8,579
Return on capital net in insurance operations 470 524 641 643 626
Other technical income (after reinsurance) 31 30 26 30 107
Claims incurred, net -8,984 -8,488 -7,983 -7,265 -6,747
Operating expenses in insurance operations -2,010 -1,912 -1,734 -1,575 -1,608
Bonuses and rebates, net -290 -232 -9 -1 6
Other technical expenses (after reinsurance) – – – -38 -1
Insurance operation technical result 191 209 303 616 962
Remaining return on capital 1,981 1,825 1,457 1,074 1279
Other -153 -2 -11 23 13
Profit/loss before appropriations and income tax 2,019 2,032 1,749 1,713 2,254
Investment assets at fair value 34,731 32,593 29,225 25,664 24,804
Technical provisions, (after reinsurance) 26,434 25,673 23,456 21,874 20,769
Taxed equity 11,048 8,891 7,717 6,866 5,446
Subordinated liabilities - - - - 1,475
Deferred tax liability 3,047 2,485 2,462 2,255 1,745
Surplus value in investment assets
Investments in Group companies and associated companies 154 204 179 146 216
Other financial investment assets - - - - -
Total surplus value 154 204 179 146 216
Total solvency capital 14,250 11,580 10,358 9,267 8,882
Earnings from PC insurance business
Claims ratio 82 83 85 82 79
Expense ratio 18 19 19 18 19
Combined ratio 100 102 104 100 97
Earnings from asset management
Yield, per cent 3
2.9 3.1 3.5 2.2 2.7
Total return, per cent 7.6 8.2 6.9 6.8 8.2
Solvency ratio, per cent 126 113 107 102 104
Restated owing to change-over to full
IFRS in consolidated financial state-
ments and for provisions for pensions
and similar liabilities. Earlier years
are not recalculated in respect of this
change of principle.
Restated owing to changed valuation
principles for technical provisions not
classified as occupational pension
Yield has been restated for 2009 ac-
cording to the change regulations FFFS
Special accounts for applied ac-
counting and valuation principles are
provided in connection with annual
Five-year summary and key ratios, SEK million
PARENT COMPANY 2013 2012 1
2011 2010 2
Premiums written (after reinsurance) 9,061 8,332 8,292 7,989 7,607
Premiums earned (after reinsurance) 8,800 8,340 8,068 7,789 7,704
Return on capital net in insurance operations 427 479 608 613 595
Other technical income (after reinsurance) 30 31 25 30 75
Claims incurred, net -7,188 -6,919 -6,909 -6,354 -6,103
Operating expenses in insurance operations -1,631 -1,606 -1,472 -1,322 -1,378
Bonuses and rebates, net -290 -231 -9 -1 6
Other technical expenses (after reinsurance) – – – – -1
Insurance operation technical result 148 94 311 755 898
Remaining return on capital 1,914 1,781 1,079 999 1,301
Other -6 -1 -9 -3 -3
Profit/loss before appropriations and income tax 2,056 1,874 1,381 1,751 2,196
Investment assets at fair value 33,755 31,073 28,164 25,032 24,058
Technical provisions, (after reinsurance) 23,269 22,763 21,719 20,302 19,422
Taxed equity 4,022 3,025 2,189 2,131 1,920
Untaxed reserves 8,350 7,623 7,142 5,998 5,189
Subordinated liabilities – – – – 975
Deferred tax liability 999 764 562 546 315
Surplus value in investment assets
Investments in Group companies and associated companies 154 202 179 146 216
Total surplus value 154 202 179 146 216
Total solvency capital 13,525 11,614 10,072 8,821 8,615
Capital base 13,427 11,563 10,033 8,548 7,838
Required solvency margin 1,655 1,550 1404 1,296 1,263
Consolidated capital base 13,609 11,699 10,110 8,607 7,971
Consolidated solvency margin 2,342 2,048 1,655 1,509 1,443
Earnings from PC insurance business
Claims ratio 82 83 86 82 79
Expense ratio 18 19 18 17 18
Combined ratio 100 102 104 99 97
Earnings from asset management
Yield, per cent 3
2.5 2.7 3.2 2.3 3.0
Total return, per cent 7.7 8.2 6.9 6.7 8.1
Solvency ratio, per cent 149 139 121 110 113
Restated owing to changed accounting
principles of tangible assets and techni-
Restated owning to changed accounting
principle of expenditures for develop-
ment of internally generated intangible
assets in accordance with RFR2. Earlier
years are not recalculated in respect of
this change of principle.
Restated owing to changed accounting
principles for provisions to pensions and
similar liabilities. Earlier years are not
recalculated in respect of this change of
Yield has been restated for 2009
according to the change regulations
FFFS 2009:12. Presented key ratios with
regard to yield for 2008 are calculated in
accordance with FFFS 2008:26.