Collective funding ratio

The insurance companies report their funding ratio to the Swedish Financial Supervisory Authority. Within the insurance industry a funding ratio of 100 percent indicates normal funding.

What is collective funding?

Collective funding is a buffer for Alecta’s insurance commitments to protect against fluctuations in investment return and insurance risks. It is the difference between Alecta’s assets and the company’s insurance commitments to policyholders and insured individuals.

Funding policy for defined benefit insurance commitment

The funding ratio is normally allowed to vary between 125 and 175 percent. The following limits apply to the allocation of surpluses:

  • 125 percent – lower limit for upward adjustment of pensions in payment
  • 135 percent – lower limit for upward adjustment of paid-up policies
  • 150 percent – lower limit for reductions in policyholder’s premiums
  • 175 percent – lower limit for other refunds to policyholders
2018 Quarter Ratio
  March 152.0 percent
  June 154.0 percent
  September 159.0 percent
  December 142,0 percent
2017 Quarter Ratio
  March 152.0 percent
  June  156.0 percent
  September  158.0 percent
  December  154.0 percent
2016 Quarter Ratio
  March 144.0 percent
  June 140.0 percent
  September 142.0 percent
  December 149.0 percent
2015 Quarter Ratio
  March 148.0 percent
  June 154.0 percent
  September 148.0 percent
  December 153.0 percent
2014 Quarter Ratio
  March 147.0 percent
  June 147.0 percent
  September 146.0 percent
  December 143.0 percent
2013 Quarter Ratio
  March 135.0 percent
  June 145.0 percent
  September 153.0 percent
  December 148.0 percent