Swedish pension company AMF has reported a total return of 6.2 per cent for its traditional insurance portfolio in 2025, a 0.9 percentage point decrease from 2024.

The firm's solvency ratio rose to 238 per cent at the end of December, up from 227 per cent at the end of 2024.

Over the longer term, AMF said the average annual return for traditional insurance was 5.5 per cent over five years, 6.4 per cent over 10 years, and 6.8 per cent over 15 years.

Commenting on the results, AMF CEO, Tomas Flodén, said global uncertainty had increased during 2025, with economic recovery held back by trade policy turbulence and geopolitical tensions.

“Despite this, AMF was able to continue to work purposefully to ensure that our 4.4 million savers receive the best and most secure occupational pensions possible in the long term,” he argued.

“Our active long-term management and our risk diversification create good opportunities to deliver on our mission in good as well as more challenging times.”

During the year, AMF distributed a surplus of SEK 590m to savers with traditional insurance, strengthened guarantees for customers in payout and reduced fees for both traditional and unit-linked insurance customers.

It also introduced an option to pause occupational pensions within the SAF-LO and AKAP-KR/KAP-KL agreement areas, with a gradual rollout planned for other customers.

Flodén added that AMF had launched a major initiative to develop an updated pre-selection product that would deliver higher returns during the savings phase and greater security during payout, while making it easier to compare with other savings products.

Meanwhile, all asset classes contributed positively to the 2025 return.

Equities rose by 13.1 per cent in local currency terms, fixed income assets increased by just over 3 per cent, and property and alternative investments delivered returns of just under 4 per cent.

Currency exposure reduced overall returns by just over one percentage point.

Head of asset management, Katarina Romberg, noted that AMF continued to invest in new companies during the year, including participating as an anchor investor in Verisure’s listing on the Stockholm Stock Exchange in October.

She also highlighted that AMF Aktiefond Sverige had been procured by the Fund Markets Board for the new quality-assured fund platform for Sweden’s premium pension system.

For the year to December 2025, premium income for traditional insurance totalled SEK 22.2bn, compared with SEK 33.0bn in 2024.

Premiums for unit-linked insurance, reported as deposits to investment contracts, amounted to SEK 2.5bn, down from SEK 2.8bn the previous year.

The management expense ratio for traditional insurance was 0.10 per cent, compared with 0.11 per cent in 2024, while the asset management expense ratio remained unchanged at 0.03 per cent.

Within AMF Fonder, assets under management increased to SEK 241bn, from SEK 235bn a year earlier.

The average return on AMF’s unit-linked insurance was 4.8 per cent, compared with 13.9 per cent in 2024.

Across the wider AMF Group, which includes AMF Fastigheter AB and AMF Fonder AB, total assets under management rose to SEK 872bn at the end of 2025, up from SEK 849bn the previous year.

All figures are preliminary pending board approval on 24 March, after which the full annual report will be published.

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