Folksam (FS) Q2 2024 earnings summary

Executive summary

• Strong capital returns and increased customer dividends, with total managed assets reaching a record SEK 891 billion, up 12% year-over-year.

• Total premium volume rose nearly 8% to over SEK 42 billion for the first half of 2024.

• High claims and operating costs persist, prompting a cost-reduction program targeting SEK 750 million in savings by end-2026.

• Maintained market leadership in pensions and life insurance, with robust solvency and consolidation ratios.

Financial highlights

• Total premium volume for H1 2024: SEK 42.4 billion, up from SEK 39.5 billion in H1 2023.

• Managed assets at period end: SEK 891 billion, up from SEK 796 billion year-over-year.

• Folksam Liv group premiums: SEK 34.0 billion (H1 2024), up from SEK 31.6 billion (H1 2023).

• Folksam Sak group premiums: SEK 8.4 billion (H1 2024), up from SEK 7.9 billion (H1 2023).

• Total returns: Folksam Tjänstepension 5.7%, KPA Tjänstepensionsförsäkring 5.5%, Folksam Liv 5.2%, Folksam Sak 3.0%.

Outlook and guidance

• Focus on cost efficiency, digitalization, and customer-centric offerings to maintain affordability and competitiveness.

• Ongoing investments in sustainable energy, real estate, and digital transformation.

• Targeting SEK 750 million in cost reductions by end-2026.