NORWAY - Mutual insurer and pension provider the NOK138bn (e16.9bn) KLP has posted a NOK359m (e43.9m) profit for the third quarter of 2004.
KLP is one of Norway’s largest institutional investors and provides about 60% of pension schemes to the municipalities and counties of Norway.
“KLP has continued its investment profile with emphasis on a predictable and consistent return on customers’ pension assets,” the company said in its third quarter report.
“The strong growth in the third quarter is due to the effect of the collective wages settlement and the Storting’s (Norwegian Parliament’s) increase of the basic amount.
“This means increased pension liabilities for our customers and consequently increased insurance funds at KLP.”
The provider said its assets increased by 14% from NOK121bn in the third quarter of 2003 to NOK138bn by the end of the third quarter this year.
The report said new rules for products in public sector service pensions had produced a different form of competition.
When choosing a pension provider, the focus of importance had shifted from pre-calculated premiums to administration costs and equalisation groups, strengthening KLP’s market position as a “cost-effective” provider, the company added.
“We are well satisfied with the solid profit the company is able to present,” commented KLP president and CEO Bjørn Kristoffersen (pictured).
“New rules for products in the municipal markets have produced more orderly competition.
“This strengthens KLP’s market position – for the first time in many years we now see the possibility of taking customers back from competing companies.”
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