Investors' capital allocation into office and residential markets in ...

FOLKSAM
Folksam has over four million customers and manages SEK 220 billion of assets on their
behalf. In 2007 Folksam enters into a collaborative venture with Swedbank in respect of
non-life insurance, unit-linked insurance and asset management. The same year Folksam
also acquired the company Tre Kronor AB from Trygg-Hansa and Sparebank1.The
acquired company will continue their non-life insurance business via Swedbank’s branch
network. During 2007 Folksam mainly concentrated on strategic business deals with
Swedbank and KP. Due to these agreements Folksam will strengthen their core business
in non-life and life insurance and pension savings.
KPA Pension is Folksam’s major-owned subsidiary which manages the occupational
pensions of one million employees in Swedish municipalities and county councils.
During 2008, KPA’s equity holdings in traditional pension insurance are expected to
amount to approximately 40–50 per cent of all the equity which is hold in KPA.
The Folksam Group is made up of Folksam General Group and the Folksam Life Group
including non-consolidated subsidiaries. The Folksam General Group’s profits decreased
slightly to SEK 1,043 million. At the same time profits for the Folksam Life Group
decreased dramatically, almost SEK 1 billion to SEK 1,988 million. The decrease in the
profits was caused by the rise in interest rates and lower returns. However, the Folksam
Life Group reported an increase in premium to more than SEK 12 billion. Property, being
one of the assets in Folksam Life Group, performed best in 2007, due to a high increase
in values. In four years Folksam’s funds under management had increased from SEK 115
billion to SEK 210 billion, in February 2008.
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