Oslo Pensjonsforsikring makes -0.4% in Q3

Written by Natalie Tuck

29/11/2023

Norwegian insurance company, Oslo Pensjonsforsikring (OPF), made a negative return of 0.4% in the third quarter (Q3) of 2023, it has revealed.

Despite this, the value-adjusted return on customers' funds for the year is positive at 3%, which equates to just under NOK 3.4bn as of 30 September 2023.

OPF attributed the negative return to declining growth in the Norwegian economy and weak financial markets. Specifically, it said increased interest and write-downs in property were the cause.

Group profit before tax was NOK 37m in Q3 and the Norwegian krone exchange rate strengthened during the quarter. Solvency capital coverage was 420% for the group at the end of the quarter, compared to 457% at the same time last year.

Commenting, OPF managing director, Lars Haram, said: “After a further rise in interest rates, the market for commercial property has slowed down, and we have written down the values to reflect this.

“Increased interest rates also affected the share and bond market in the quarter, but we are satisfied with the result so far this year, taking the markets into account. Low vacancy in the property portfolio and higher interest rates mean at the same time that we will receive higher current income going forward, which gives us a good position for the future.”

The management capital in the group was NOK 134.4bn as of 30 September 2023, an increase of NOK 10.4bn from 30 September 2022.

“The company's solvency increased during the quarter as a result of higher interest rates, and we are well prepared for the future. We have a long-term strategy and are a solid company, with an ambition to be the best in pensions. We are well positioned for that,” Haram added.

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