Norway's KLP has reported a total return surplus of NOK 47.8bn for 2025, including NOK 14.9bn in the fourth quarter.

In the collective portfolio, the return was 2.2 per cent in the fourth quarter and 7.9 per cent for the full year.

KLP said the results would enable NOK 26.8bn to be added to customers’ premium funds, lowering pension costs and improving financial predictability for 2026.

At the same time, customers’ buffer funds will be strengthened by NOK 22.6bn, bringing the total buffer fund to NOK 144.5bn and supporting resilience amid geopolitical and economic uncertainty.

The group reported a solvency coverage ratio of 338 per cent at year-end.

KLP CEO, Sverre Thornes, noted that the results were achieved during a period marked by economic volatility.

“In a quarter characterised by economic uncertainty, we are particularly pleased that we have managed to combine good returns with safe management.

"This results in lower costs for our owners at a time when many public enterprises are experiencing pressure on their budgets,” he said.

KLP also strengthened its market position during the year.

Of four municipal and county tender processes in 2025, one municipality opted to continue with its own pension fund, while Lier, Nordre Follo and Østfold county councils selected KLP as their pension provider.

Østfold county council switched from its own pension fund to KLP, while Lier and Nordre Follo renewed with the provider.

“We are pleased with the results of last year's tender rounds. We will do what we can to live up to the trust we have received,” Thornes added.

In 2025, KLP completed what it described as one of Norway’s most comprehensive pension modernisation projects, launching a new digital platform designed to accelerate processing, improve accuracy, and enhance self-service options for employers.

The system also provided employees with improved visibility and guidance, including on new rules for public occupational pensions and senior employment policies.

On the investment side, KLP increased allocations to green and socially beneficial projects, including renewable energy, nature-positive initiatives and low-emission buildings.

The group also reported that one company it had helped finance during its start-up phase was sold in 2025 at a significant profit to new owners seeking to support its next phase of growth.

The KLP Group, which comprises Kommunal Landspensjonskasse and its subsidiaries KLP Banken, KLP Skadeforsikring, KLP Kapitalforvaltning, KLP Forsikringsservice and KLP Eiendom, had total assets of NOK 1,271bn at the end of the fourth quarter of 2025.

In addition, the Norwegian Nurses’ Association (NSF) selected KLP Skadeforsikring and KLP Banken to provide banking and insurance services for its members following a tender process conducted in autumn 2025.

The agreement, effective from 1 January 2026, is expected to support further customer growth across the KLP group.

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