Folksam (FS) investor relations material

Executive summary

• Result before appropriations and tax improved to SEK 3,064 million from SEK 2,558 million year-over-year, driven by stronger capital returns and continued operational efficiency.

• Digitalization and automation increased, with 43% of claims handled digitally and further investments in AI and digital capabilities.

• New property management agreements with Riksbyggen and Newsec took effect from January 2026.

• Ongoing regulatory review by Finansinspektionen regarding investments in Heimstaden Bostad, with potential sanctions ranging from SEK 5 to 50 million.

Financial highlights

• Group premium income after reinsurance rose 3% to SEK 8,419 million, mainly from premium increases and portfolio growth in car and child insurance.

• Claims after reinsurance increased 4% to SEK -6,806 million; claims ratio rose to 80.8% from 80.0%.

• Operating expenses decreased 2% to SEK -1,162 million due to cost efficiencies and lower pension costs.

• Total return on assets for H1 2026 was 4.2% (SEK 2,494 million), up from 3.7% year-over-year.

• Net profit for the group was SEK 2,375 million, up from SEK 1,966 million year-over-year.

Outlook and guidance

• The environment remains volatile with economic uncertainty, technological shifts, and increased regulatory demands.

• Geopolitical risks and inflationary pressures persist, but robust equity markets and resilient economic fundamentals support continued growth.

• Swedish inflation remains lower than international peers, with stable interest rates and a slightly weaker krona.