SWEDEN - Insurer AMF has decided to grant an increase of interest payments to its defined contribution members from 8% to 12% following positive investment results.
Spokeswoman Johanna Sarfati said at the end of October the funding ratio of its plan was 119%. This gave the company scope to raise payments to members' accounts.
According to AMF's consolidation policy - which specifies the terms under which a surplus or deficit has to be distributed to members - a solvency ratio higher than 110% allows the company to increase payments.
AMF president Ingrid Bonde said in a statement: "I am glad we can offer by far the highest rate on retirement savings and that the autumn increase benefits our depositors."
The statement also claimed the distance between AMF and its nearest competitor was 7 percentage points.
For the first half of 2009, AMF posted a 4.8% profit, benefiting from strong equity and active strategies returns (Global Pensions, August 28, 2009).
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