Norway’s largest pension company, KLP, made a return of 2.3 per cent on its pension assets, equating to NOK 15.8bn in the third quarter, its latest results have revealed.

For the year to date, the public sector pension provider made a return of 5.5 per cent, amounting to NOK 33bn.

“We are satisfied with the result, which provides a good basis for being able to provide our customers with a profit that reduces their pension costs in a time of economic pressure,” KLP CEO, Sverre Thornes, said.

KLP's total assets increased to NOK 1,231bn, and its buffer fund amounted to NOK 122bn at the end of Q3, which KLP said protects pension customers from turmoil in the financial markets.

It also provided an update on its climate-friendly investments; these accounted for 44 per cent of its financial assets at the end of Q3.

During the quarter, KLP increased its investments in renewable energy and infrastructure.

KLP also gained new contracts during the quarter, winning mandates from one county and two municipalities that carried out tender processes.

“We are delighted with this result, and see that we are now reaping the rewards not only for our low administration costs, but also for our pension systems,” Thornes said.

“Almost 50,000 searches were made on our pension calculator in September alone, and the feedback from both employers and employees is very good. Here, the individual employee sees, among other things, the value of staying in work longer, often in combination with withdrawing some of their pension. We hope that this will help reduce the shortage of labour for our customers.”

Regarding non-life insurance and banking, at the end of the quarter, KLP was chosen by the Norwegian Nurses' Association as its new supplier of banking and insurance products for its 140,000 members.

“KLP is committed to taking care of those who take care of us, and this agreement confirms that KLP also has very good conditions within banking and insurance for employees in municipal and health Norway,” he said.

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