Swedish pension company Alecta has reported a 5.8 per cent return for its Optimal Pension defined contribution (DC) product between 1 January and 30 September 2025, compared to 8.7 per cent over the same period last year.
Alecta said the result was based on its default portfolio, which is invested 60 per cent in equities.
Its quarterly results revealed that assets under management in the total portfolio for Alecta Optimal Pension amounted to SEK 333bn, up from SEK 301bn at the end of the period.
Over the past five-year period, the annual return for Alecta Optimal Pension was 7.5 per cent, a decrease from 8.2 per cent on the same period last year.
Meanwhile, in defined benefit (DB) insurance, the collective funding ratio was 167 per cent, up from 163 per cent in Q3 2024.
Assets under management in the total DB portfolio amounted to SEK 1,042bn at the end of Q3 2025, compared with SEK 1,030bn at the end of the same time last year.
Additionally, the group’s solvency ratio was up from 198 per cent in Q3 2024 to 203 per cent in Q3 2025, while its asset management expense ratio fell from 0.027 in Q3 2024 to 0.026 per cent in Q3 2025.
The consolidated management expense ratio remained unchanged at 0.07 per cent.
Furthermore, total capital under management was SEK 1,375bn, an increase from SEK 1,331bn at the end of Q3 2024.
Alecta’s interim report in August confirmed that it had implemented all the measures in its improvement plan and addressed the shortcomings identified last year, which was introduced in response to events in 2023 when Alecta faced several crises.
The pension company saw a SEK 12bn loss in March 2023 on its investments in three US banks and then this was followed by two investigations by the Swedish Financial Supervisory Authority (FSA), into Alecta's investments - particularly its holdings in Heimstaden Bostad. The preliminary findings of the investigation found that the company had “violated several regulations”.
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