NORWAY - Kommunal Landspensjonskasse (KLP) saw its surplus reach NOK4.5bn in the third quarter, more than double the NOK2bn surplus for the same period last year.
KLP, the insurer that covers 95% of municipal and county pension provision in Norway, said if the positive trend continues for the rest of the year, it will add surplus to customers’ premium funds in 2006.
KLP obtained a profit of NOK2.2bn for the third quarter and a value-adjusted return on capital of 5.4%. Net investment income amounted to NOK7.6bn.
In addition, the company said “solidity” or buffer capital improved by NOK2.2bn during the quarter, to NOK13.1bn. KLP added values of NOK5.6bn in its bond portfolio held to maturity at the end of the quarter.
”Provided that the solidity is maintained until the end of the year, we expect to add surplus to the customers’ premium funds in 2006 in the same way as this year,” said Bjorn Kristoffersen, CEO, KLP.
“This return of funds could reduce customers’ premium payments next year.”
KLP’s total assets increased to NOK152.9bn at the end of Q3, equivalent to 11% growth from the same time last year.
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