41CO Kommunal Nts

 

TIDM41CO 
 
RNS Number : 7757B 
Kommunal Landspensjonskasse 
02 November 2009 
 

Oslo, 2 November 2009 
Very good result at KLP 
KLP delivers a very good result at the end of the third quarter.  So far this 
year KLP is recording profits of NOK 6.7 billion. Value-adjusted return ended 
reached 5.8 per cent. 
 
 
 "We are all delighted with the very good returns so far this year," says Group 
CEO Sverre Thornes. "If this welcome development continues for the rest of the 
year it will allow us both to credit profits to our customers and to further 
strengthen our solvency." 
 
 
Book returns were 5.5 per cent and value-adjusted returns 5.8 per cent so far 
this year. During the third quarter KLP achieved a book return of 2.5 per cent 
and a value-adjusted return of 2.8 per cent. 
 
 
Solid throughout the financial crisis 
KLP stood firm throughout the financial crisis and maintained good 
solvency. This allowed increased investment in equities when the markets 
turned. Rising share prices and positive development in the values of credit 
bonds are now reflected in KLP's results.  This has resulted inter alia in KLP's 
solvency capital increasing from NOK 14.4 billion to NOK 25.1 billion over the 
last year. 
 
 
 "We have customers and owners who prioritise solvency and a long-term approach 
to asset management. This is now producing results and a very good basis for 
achieving good results in future," says Thornes. 
 
 
Better lending terms and conditions 
KLP took over Kommunekreditt Norge AS on 24 June and immediately reduced the 
interest on lending to municipalities and their enterprises. This lead was 
followed by other operators in the market as well. KLP's commitment has helped 
reintroduce competition in this market. This secures the best terms and 
conditions for customers in the public sector. 
 
 
Public sector occupational pensions 
Good and stable customer relations have produced continued growth amounting to 
NOK 15.5 billion in premium income, even though the premium level is lower than 
last year due to moderate increase in salary increases among KLP's clients.  KLP 
works continuously to further develop and increase its efficiency for the 
benefit of its customers. In the third quarter KLP announced that this means 
premiums for 2010 will be further reduced. 
 
 
Growth in asset and fund management 
During the year, KLP's index-measured equity management has provided a return of 
as much as 26.7 per cent. For actively managed funds, KLP Kapitalforvaltning has 
created a return in excess of index of as much as NOK 672 million. 
KLP's fund management company is experiencing strongly increasing interest both 
from private individuals and institutional investors. KLP Fondsforvaltning now 
manages NOK 10.8 billion from these customer groups. Net new subscriptions from 
external institutional customers have reached NOK 2.1 billion so far this year. 
 
 
Historically good result for KLP Skadeforsikring (non-life) 
KLP Skadeforsikring has an operating profit of NOK 179 million so far this year, 
of which NOK 83.5 million is from the third quarter. The figures are influenced 
by relatively few major claims during the year. Customer-friendly solutions and 
competitive premiums mean that KLP Skadeforsikring's market position has 
developed in a positive manner. Over the last year the company has also 
established itself in the personal customer market and now has a good steady 
inflow of individual customers. 
 
 
=------------------------------------------------------------------------------ 
=---------- 
A comprehensive interim report for the third quarter will be published on 
www.klp.no on 12 November as previously announced. 
 
 
+--------------------------+---------------------------------+ 
| Key figures after the    |                                 | 
| 3rd quarter 2009         |                                 | 
+--------------------------+---------------------------------+ 
| Book return on capital   | 5.5 per cent (0.4 per cent)     | 
+--------------------------+---------------------------------+ 
| Value-adjusted return on | 5.8 per cent (-3.6 per cent)    | 
| capital                  |                                 | 
+--------------------------+---------------------------------+ 
| Value-adjusted return on | 5.8 per cent (-3.8 per cent)    | 
| capital including HTM    |                                 | 
| bonds                    |                                 | 
+--------------------------+---------------------------------+ 
| Premium income           | NOK 15.5 billion (NOK 18.9      | 
|                          | billion)                        | 
+--------------------------+---------------------------------+ 
| Total assets             | NOK 215.8 billion (NOK 201.8    | 
|                          | billion)                        | 
|                          | NOK 254.4 billion including KLP | 
|                          | Kommunekreditt                  | 
|                          |                                 | 
+--------------------------+---------------------------------+ 
| Capital adequacy         | 12.3 per cent (12.6 per cent)   | 
+--------------------------+---------------------------------+ 
The figures in brackets are as at 30.09.08 
 
 
+------------------------------------+------------------------+ 
| For more information contact:      |                        | 
+------------------------------------+------------------------+ 
| Sverre Thornes, Group CEO          | +47 22 03 35 59/ 97 74 | 
|                                    | 40 07                  | 
+------------------------------------+------------------------+ 
| Aage Schaanning, Executive Vice    | +47 22 03 79 01/ 90 52 | 
| President and Chief Financial      | 43 12                  | 
| Officer                            |                        | 
+------------------------------------+------------------------+ 
| Per Victor Nordan, Senior Vice     | +47 22 03 35 55/ 92 03 | 
| President Finance                  | 55 00                  | 
+------------------------------------+------------------------+ 
| Ole Jacob Frich, Executive Vice    | +47 22 03 78 96/ 90 91 | 
| President Communication            | 55 23                  | 
+------------------------------------+------------------------+ 
 
 
 
 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 NORBDBDBSGGGGCD 
 

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