Kommunal Landspensjonskasse

Q1 2022

Income statementKommunal Landspensjonskasse

NOTE	NOK MILLIONS	Q1 2022	Q1 2021	01.01.2021 -31.12.2021
3	Premium income	7 503	7 041	50 161
	Income from investments in subsidiaries, associated enterprises and jointly controlled entities	185	-350	6 736
	Interest income and dividends etc. on financial assets	2 441	4 427	12 587
	Value changes on investments	-8 363	-1 486	17 896
	Gains and losses realized on investments	817	6 302	12 550
	Net income from investments in the common portfolio	-4 921	8 893	49 770
	Net income from investments in the investment option portfolio	-24	39	181
	Other insurance-related income	331	306	1 274
4	Claims	-10 642	-13 754	-30 438
	Changes in insurance liabilities taken to profit/loss - contractual liabilities	9 330	3 104	-59 440
	Changes in insurance liabilities taken to profit/loss – individual investment option portfolio	-756	3	-177
	Funds assigned to insurance contracts - contractual liabilities	0	0	-9 415
	Unallocated profit to insurance contracts	-105	-4 688	0
5	Insurance-related operating expenses	-368	-299	-1 372
	Other insurance-related costs	-331	-300	-1 286
	Technical profit/loss	18	344	-742
	Net income from investments in the corporate portfolio	112	272	1 292
	Other income	2	9	10
	Administration costs and other costs associated with the corporate portfolio	-60	-59	-272
	Non-technical profit/loss	53	222	1 030
	Profit/loss pre-tax	71	566	288
	Tax	6	-105	125
	Income before other income and expenses	77	461	413
12	Actuarial gains and losses on defined benefits pension schemes	270	118	48
	Proportion of other comprehensive income on application of the equity method	156	66	36
	Adjustment of the insurance liabilities	-47	-21	-16
	Tax on other income and expenses that will not be reclassified to profit or loss	-67	-30	-12
	Total other income and expenses that will not be reclassified to profit or loss	311	135	56
	TOTAL COMPREHENSIVE INCOME	388	595	469

Statement of financial positionKommunal Landspensjonskasse

NOTE	NOK MILLIONS	31.03.2022	31.03.2021	31.12.2021
	ASSETS
	ASSETS IN THE CORPORATE PORTFOLIO
	Intangible assets	782	657	727
7	Investment properties	995	991	1 004
	Shares and holdings in property subsidiaries	3 622	3 368	3 507
	Shares and holdings in other subsidiaries, associated enterprises and jointly controlled entities	5 238	5 077	5 177
6	Financial assets valued at amortized cost	19 352	19 132	19 456
6,7	Financial assets valued at fair value	12 188	12 341	12 221
	Receivables	1 230	2 241	1 407
11	Right-of-use assets	946	1 054	973
	Other assets	1 026	605	796
	Total assets in the corporate portfolio	45 379	45 466	45 268
	ASSETS IN THE CUSTOMER PORTFOLIOS
	Shares and holdings in property subsidiaries	69 832	62 220	70 206
	Shares and holdings in other subsidiaries, associated enterprises and jointly controlled entities	5 245	4 614	4 958
	Receivables on and securities issued by subsidiaries, associated enterprises and jointly controlled entities	12 343	13 078	12 524
6	Financial assets valued at amortized cost	260 815	248 861	259 608
6,7	Financial assets valued at fair value	314 264	274 303	311 984
	Total investment in the common portfolio	662 500	603 076	659 281
	Shares and holdings in property subsidiaries	279	225	256
	Receivables on and securities issued by subsidiaries, associated enterprises and jointly controlled entities	63	66	63
6	Financial assets at amortized costs	925	736	753
6,7	Financial assets at fair value	1 320	1 054	1 126
	Total investments in the investment option portfolio	2 588	2 081	2 199
	Total assets in the customer portfolios	665 088	605 157	661 480
	TOTAL ASSETS	710 467	650 623	706 748

NOTE	NOK MILLIONS	31.03.2022	31.03.2021	31.12.2021
	OWNERS' EQUITY AND LIABILITIES
	Owners’ equity contributed	19 831	17 919	19 831
	Retained earnings	21 559	21 784	20 847
	Total owners’ equity	41 390	39 703	40 678
6	Subordinated loan capital etc.	4 444	4 668	4 604
	Premium reserve etc.	483 154	451 266	484 728
	Supplementary reserves	0	43 326	48 626
	Securities adjustment fund	0	56 575	77 397
	Buffer fund	117 605	0	0
	Premium funds, defined contribution funds, pension regulation funds etc.	40 323	37 731	40 769
	Unallocated profit to customers	104	4 680	0
	Total insurance liabilities - contractual liabilities	641 186	593 578	651 520
	Pension capital etc.	2 296	1 473	1 549
	Supplementary reserves	0	135	186
	Buffer fund	193	0	0
	Premium funds, defined contribution funds, pension regulation funds etc.	551	466	499
	Unallocated profit to customers	1	28	0
	Total insurance liabilities - special investment portfolio	3 041	2 102	2 234
12	Pension obligations	301	491	553
	Current tax liabilities	103	1 151	259
	Deferred tax liabilities	444	745	444
11	Lease liabilities	989	1 078	1 012
9	Liabilities	18 407	6 828	5 261
	Accrued costs and prepaid income	163	280	182
	TOTAL OWNERS’ EQUITY AND LIABILITIES	710 467	650 623	706 748
	OFF-BALANCE SHEET ITEMS
	Contingent liabilities	23 900	24 208	26 074

Changes in Owners’ equityKommunal Landspensjonskasse

2022 NOK MILLIONS	Owners’ equity contributed	Retained earnings		Total owners’ equity
		Risk equalization fund	Other retained earnings
Own funds 31 December 2021	19 831	4 370	16 476	40 678
Change recognized directly in equity		554	-229	324
Own funds 1 January 2022	19 831	4 924	16 247	41 002
Income before other income and expenses		-37	114	77
Actuarial gains and losses on defined benefits pension schemes			270	270
Proportion of other comprehensive income on application of the equity method			156	156
Adjustment of the insurance liabilities			-47	-47
Tax on other income and expenses that will not be reclassified to profit or loss			-67	-67
Total other income and expenses that will not be reclassified to profit or loss			311	311
Total comprehensive income (unallocated)		-37	425	388
Owners equity contribution recieved	0			0
Total transactions with owners	0			0
Own funds 31 March 2022	19 831	4 887	16 671	41 390

2021 NOK MILLIONS	Owners’ equity contributed	Retained earnings		Total owners’ equity
		Risk equalization fund	Other retained earnings
Own funds 1 January 2021	18 194	5 404	15 784	39 382
Income before other income and expenses		170	290	461
Actuarial gains and losses on defined benefits pension schemes			118	118
Proportion of other comprehensive income on application of the equity method			66	66
Adjustment of the insurance liabilities			-21	-21
Tax on other income and expenses that will not be reclassified to profit or loss			-30	-30
Total other income and expenses that will not be reclassified to profit or loss			135	135
Total comprehensive income (unallocated)		170	425	595
Owners equity contribution recieved	-275			-275
Total transactions with owners	-275			-275
Own funds 31 March 2021	17 919	5 575	16 209	39 703

2021 NOK MILLIONS	Owners’ equity contributed	Retained earnings		Total owners’ equity
		Risk equalization fund	Other retained earnings
Own funds 1 January 2021	18 194	5 404	15 784	39 382
Income before other income and expenses	811	-1 034	636	413
Actuarial gains and losses on defined benefits pension schemes			48	48
Proportion of other comprehensive income on application of the equity method			36	36
Adjustment of the insurance liabilities			-16	-16
Tax on other income and expenses that will not be reclassified to profit or loss			-12	-12
Total other income and expenses that will not be reclassified to profit or loss			56	56
Total comprehensive income	811	-1 034	692	469
Owners equity contribution recieved	826			826
Total transactions with owners	826			826
Own funds 31 December 2021	19 831	4 370	16 476	40 678

Statement of cash flowsKommunal Landspensjonskasse

NOK MILLIONS	01.01.2022 -31.03.2022	01.01.2021 -31.12.2021	01.01.2021 -30.09.2021	01.01.2021 -30.06.2021	01.01.2021 -31.03.2021
Net cashflow from operational activities	337	-346	-424	778	271
Net cashflow from investment activities ¹	-78	-275	-211	-142	-69
Net cashflow from financing activities ²	-28	716	695	-312	-302
Net changes in cash and bank deposits	231	95	61	323	-100
Holdings of cash and bank deposits at start of period	755	659	659	659	659
Holdings of cash and bank deposits at end of period	985	755	720	983	560
¹ Payments on the purchase of tangible fixed assets.
² Net receipts of owners’ equity contribution, rising of new loans and repayment of debt.

Notes to the financial statementKommunal Landspensjonskasse

Note 1 Accounting principles- and estimates

Accounting principles

The financial statements in this interim report show the interim accounts for Kommunal Landspensjonskasse (KLP), for the period 01.01.2022 – 31.03.2022. The accounts have not been audited.

The interim financial statements have been prepared in accordance with the Regulations of 18 December 2015 No 1824 relating to annual financial statements for life insurance companies (the Financial Reporting Regulations) and IAS 34 Interim Reporting. The interim financial statements have been prepared on the same principles as the annual financial statements for 2020, unless stated otherwise.

Rules on a merged buffer fund covering all customers were introduced for municipal pension schemes from 01.01.2022 together with some other changes for guaranteed pension products. The new buffer fund replaces the earlier supplementary reserves and securities adjustment fund. The rule changes are intended to provide a more neutral framework for moving municipal pension schemes. The table below shows the reworked opening balance.

NOK MILLIONS	Total insurance liabilities - contractual liabilities 01.01.2022	Total insurance liabilities - special investment portfolio 01.01.2022	Total
Supplementary reserves	48 626	186	48 812
Securities adjustment fund	76 843		76 843
Buffer fund	125 469	186	125 655
A further NOK 554 million was moved from the securities adjustment fund to the risk equalisation fund as of 01.01.2022.

In 2021 and at the beginning of 2022, KLP was in discussions with the Financial Supervisory Authority of Norway on certain allocations that were made in the annual accounts for 2020. The annual accounts for 2021 reported these changes, and the effects were incorporated into the figures. In February 2022, KLP again received a letter from the FSA stating that its equity must contribute 20 per cent of the amount from the risk result from 2020 used to boost the reserves for increased longevity. This amounts to NOK 229 million, and is recognised directly in the balance sheet, between equity and premium funds.

The interim financial statements do not contain all the information required of complete annual financial statements, and this interim report should be read in conjunction with the annual financial statements for 2021. The company’s annual report is available from klp.no.

Other

Exclusion of Russian companies

KLP decided in February 2022 to freeze all investments in Russia, and 22 Russian companies were excluded. Some of the companies were already subject to restrictions following the escalation of the Russia-Ukraine conflict back in 2014, but this has now been extended to all investments in Russia. KLP is actively exploring ways to sell off these investments, but international sanctions have to be taken into account, as well as the restrictions imposed on Western investors by Russia. The investments are in the KLP AksjeFremvoksende Markeder Indeks I and KLP Aksje Fremvoksende Markeder Flerfaktor funds, and are conservatively priced at a total of around NOK 24 million at the end of the first quarter.

The Norwegian Competition Authority is investigating whether KLP has violated the Competition Act

In February 2022, the Norwegian Competition Authority carried out unannounced securing of evidence with KLP because they believe there is reasonable reason to assume that KLP has violated the Norwegian Competition Act. It is the provision in section 11 of the Norwegian Competition Act on undue exploitation of a dominant position that the Norwegian Competition Authority investigates whether KLP has breached, and the securing of evidence was carried out on the basis of a decision from Hordaland District Court.

KLP has given the Norwegian Competition Authority access to everything they have requested, and is prepared to cooperate with the Norwegian Competition Authority in the further investigation.

Accounting estimates

In preparing the interim financial statements, management has exercised discretion and used estimates and assumptions that affect the accounting figures. Actual figures may deviate from estimates used.

KLP has changed the discount rate for corporate bonds which is used to calculate pension obligations. Compared to the assumptions used at 31.12.2021, the discount rate has been changed from 1.9 % to 2.7 %. This change results in a reduction of NOK 253 million in recognised liabilities as at 31.03.2022. Demographic assumptions such as expected wage growth, the National Insurance basic amount (G) and pension regulations have not changed in the period.

New rules regulating deferred pensions have been adopted, but the Norwegian Accounting Standards Board has not issued any guidance on how these should be included in the pension accounts. This should be clarified soon, and is expected to affect the company’s pension obligations in later periods.

Note 2 Value-adjustment investment property

The portfolio of investment properties, including investment properties owned via subsidiaries, has been valued as at 31. March 2022.

NOK MILLIONS	Q1 2022	Q1 2021	01.01.2021 -31.12.2021
Value adjustment incl. foreign exchange	-445	-1 182	3 984
Foreign exchange effect on hedging	1 024	1 215	1 382
Net value adjustment incl. exchange hedging	579	34	5 366

Note 3 Premium income

NOK MILLIONS	Q1 2022	Q1 2021	01.01.2021 -31.12.2021
Gross premiums due	7 126	7 041	50 161
Transfer of premium reserves from others	376	0	0
Total premium income	7 503	7 041	50 161

Note 4 Claims

NOK MILLIONS	Q1 2022	Q1 2021	01.01.2021 -31.12.2021
Claims paid	5 766	5 335	22 092
Transfers of premium reserves to others	4 875	8 419	8 346
Total claims	10 642	13 754	30 438

Note 5 Insurance-related operating expenses

NOK MILLIONS	Q1 2022	Q1 2021	01.01.2021 -31.12.2021
Personnel costs	213	187	735
Depreciation	50	50	270
Other operating expenses	104	62	366
Total insurance-related operating expenses	368	299	1 372

Note 6 Fair value of financial assets and liabilities

For information regarding pricing of financial assets and liabilities see note 9 Fair value of financial assets and liabilities in the consolidated financial statement.

31.03.2022 NOK MILLIONS	Corporate portfolio		Common portfolio		Investment option portfolio		Total
	Book value	Fair value	Book value	Fair value	Book value	Fair value	Book value	Fair value
ASSETS – AT AMORTIZED COST
INVESTMENTS HELD TO MATURITY
Norwegian hold-to-maturity bonds	485	519	3 448	3 596	7	7	3 940	4 122
Accrued not due interest	5	5	50	50	0	0	55	55
Foreign hold-to-maturity bonds	6 018	6 038	14 998	15 377	45	47	21 060	21 461
Accrued not due interest	43	43	253	253	1	1	296	296
Total investments held to maturity	6 550	6 604	18 748	19 275	53	56	25 352	25 935
BONDS CLASSIFIED AS LOANS AND RECEIVABLES
Norwegian bonds	4 785	4 605	51 085	49 268	274	264	56 144	54 137
Accrued not due interest	65	65	687	687	5	5	757	757
Foreign bonds	7 808	7 643	110 226	107 895	583	571	118 617	116 109
Accrued not due interest	144	144	1 795	1 795	10	10	1 949	1 949
Total bonds classified as loans and receivables	12 802	12 456	163 794	159 646	872	850	177 467	172 952
OTHER LOANS AND RECEIVABLES
Secured loans	0	0	3 089	3 049	0	0	3 089	3 049
Lending with public sector guarantee	0	0	68 601	67 821	0	0	68 601	67 821
Loans abroad secured by mortgage and local government guarantee	0	0	6 260	6 260	0	0	6 260	6 260
Accrued not due interest	0	0	323	323	0	0	323	323
Total other loans and receivables	0	0	78 273	77 453	0	0	78 273	77 453
Total financial assets at amortized cost	19 352	19 061	260 815	256 374	925	906	281 093	276 340
ASSETS – AT FAIR VALUE
EQUITY CAPITAL INSTRUMENTS
Norwegian shares	8	8	10 147	10 147	0	0	10 155	10 155
Foreign shares	0	0	41 342	41 342	0	0	41 342	41 342
Total shares	8	8	51 490	51 490	0	0	51 497	51 497
Property funds	0	0	7 790	7 790	0	0	7 790	7 790
Norwegian equity funds	0	0	90 210	90 210	888	888	91 098	91 098
Foreign equity funds	0	0	29 992	29 992	0	0	29 992	29 992
Total equity fund units	0	0	127 992	127 992	888	888	128 881	128 881
Norwegian alternative investments	0	0	1 955	1 955	11	11	1 966	1 966
Foreign alternative investments	0	0	0	0	0	0	0	0
Total alternative investments	0	0	1 955	1 955	11	11	1 966	1 966
Total shares and units	8	8	181 437	181 437	899	899	182 343	182 343
DEBT INSTRUMENTS AT FAIR VALUE
Norwegian bonds	5 876	5 876	27 733	27 733	0	0	33 609	33 609
Foreign bonds	772	772	18 329	18 329	0	0	19 102	19 102
Accrued not due interest	26	26	298	298	0	0	324	324
Norwegian fixed-income funds	2 765	2 765	22 513	22 513	314	314	25 591	25 591
Foreign fixed-income funds	0	0	30 159	30 159	0	0	30 159	30 159
Accrued not due interest	3	3	61	61	1	1	65	65
Norwegian certificates	465	465	2 689	2 689	0	0	3 153	3 153
Foreign certificates	0	0	394	394	0	0	394	394
Accrued not due interest	1	1	5	5	0	0	6	6
Fixed income securities	9 908	9 908	102 181	102 181	315	315	112 404	112 404
Norwegian loans and receivables	1 219	1 219	9 708	9 708	24	24	10 951	10 951
Foreign loans and receivables	440	440	7 915	7 915	66	66	8 420	8 420
Total loans and receivables	1 658	1 658	17 623	17 623	90	90	19 371	19 371
DERIVATIVES
Interest rate swaps	515	515	323	323	0	0	838	838
Share options	0	0	45	45	0	0	45	45
Forward exchange contracts	99	99	3 739	3 739	16	16	3 854	3 854
Total financial derivatives classified as assets	614	614	4 108	4 108	16	16	4 737	4 737
OTHER FINANCIAL ASSETS
Other financial assets	0	0	8 917	8 917	0	0	8 917	8 917
Total financial assets valued at fair value	12 188	12 188	314 264	314 264	1 320	1 320	327 772	327 772
LIABILITIES
DERIVATIVES
Interest rate swaps	0	0	35	35	0	0	35	35
Forward exchange contracts	0	0	210	210	1	1	211	211
Total financial derivatives classified as liabilities	0	0	245	245	1	1	246	246
SUBORDINATED LOAN CAPITAL
Subordinated loan capital	2 939	3 116	0	0	0	0	2 939	3 116
Hybrid Tier 1 securities	1 505	1 586	0	0	0	0	1 505	1 586
Total subordinated loan capital etc.	4 444	4 701	0	0	0	0	4 444	4 701
LIABILITIES TO CREDIT INSTITUTIONS
Norwegian call money ¹	0	0	2 527	2 527	2	2	2 530	2 530
Foreign call money ¹	697	697	4 617	4 617	17	17	5 330	5 330
Total liabilities to credit institutions	697	697	7 144	7 144	19	19	7 860	7 860
¹ Call money is collateral for paid/received margin related to derivatives.

31.03.2021 NOK MILLIONS	Corporate portfolio		Common portfolio		Investment option portfolio		Total
	Book value	Fair value	Book value	Fair value	Book value	Fair value	Book value	Fair value
ASSETS – AT AMORTIZED COST
INVESTMENTS HELD TO MATURITY
Norwegian hold-to-maturity bonds	538	621	4 445	4 886	11	11	4 994	5 518
Accrued not due interest	6	6	62	62	0	0	67	67
Foreign hold-to-maturity bonds	6 290	6 611	16 660	18 120	38	43	22 988	24 774
Accrued not due interest	47	47	276	276	1	1	324	324
Total investments held to maturity	6 880	7 284	21 443	23 344	50	55	28 373	30 683
BONDS CLASSIFIED AS LOANS AND RECEIVABLES
Norwegian bonds	4 680	4 818	48 686	50 576	208	217	53 574	55 611
Accrued not due interest	72	72	759	759	4	4	835	835
Foreign bonds	7 361	7 724	100 330	106 232	465	489	108 156	114 446
Accrued not due interest	138	138	1 674	1 674	8	8	1 820	1 820
Total bonds classified as loans and receivables	12 252	12 752	151 448	159 241	685	719	164 385	172 712
OTHER LOANS AND RECEIVABLES
Secured loan	0	0	3 215	3 236	0	0	3 215	3 236
Lending with public sector guarantee	0	0	65 153	65 954	0	0	65 153	65 954
Loans abroad secured by mortgage and local government guarantee	0	0	7 275	7 275	0	0	7 275	7 275
Accrued not due interest	0	0	327	327	0	0	327	327
Total other loans and receivables	0	0	75 970	76 791	0	0	75 970	76 791
Total financial assets at amortized cost	19 132	20 036	248 861	259 376	736	774	268 728	280 186
ASSETS – AT FAIR VALUE
EQUITY CAPITAL INSTRUMENTS
Norwegian shares	7	7	6 977	6 977	0	0	6 984	6 984
Foreign shares	0	0	28 691	28 691	0	0	28 691	28 691
Total shares	7	7	35 668	35 668	0	0	35 675	35 675
Property funds	0	0	4 269	4 269	0	0	4 269	4 269
Norwegian equity funds	0	0	82 177	82 177	619	619	82 796	82 796
Foreign equity funds	0	0	18 609	18 609	0	0	18 609	18 609
Total equity fund units	0	0	105 055	105 055	619	619	105 674	105 674
Norwegian alternative investments	0	0	1 846	1 846	8	8	1 854	1 854
Foreign alternative investments	0	0	0	0	0	0	0	0
Total alternative investments	0	0	1 846	1 846	8	8	1 855	1 855
Total shares and units	7	7	142 569	142 569	627	627	143 203	143 203
DEBT INSTRUMENTS AT FAIR VALUE
Norwegian bonds	6 348	6 348	28 870	28 870	0	0	35 218	35 218
Foreign bonds	414	414	17 679	17 679	0	0	18 093	18 093
Accrued not due interest	20	20	313	313	0	0	333	333
Norwegian fixed-income funds	2 671	2 671	32 273	32 273	317	317	35 261	35 261
Foreign fixed-income funds	0	0	28 845	28 845	0	0	28 845	28 845
Accrued not due interest	106	106	2 187	2 187	14	14	2 307	2 307
Norwegian certificates	350	350	4 459	4 459	0	0	4 809	4 809
Foreign certificates	0	0	737	737	0	0	737	737
Accrued not due interest	2	2	4	4	0	0	7	7
Fixed income securities	9 910	9 910	115 368	115 368	330	330	125 609	125 609
Norwegian loans and receivables	1 122	1 122	6 272	6 272	20	20	7 414	7 414
Foreign loans and receivables	555	555	5 795	5 795	65	65	6 415	6 415
Total loans and receivables	1 678	1 678	12 067	12 067	84	84	13 829	13 829
DERIVATIVES
Interest rate swaps	653	653	85	85	0	0	738	738
Share options	0	0	187	187	0	0	187	187
Forward exchange contracts	89	89	2 794	2 794	11	11	2 894	2 894
Total financial derivatives classified as assets	742	742	3 067	3 067	11	11	3 819	3 819
OTHER FINANCIAL ASSETS
Other financial assets	5	5	1 232	1 232	1	1	1 238	1 238
Total financial assets valued at fair value	12 341	12 341	274 303	274 303	1 054	1 054	287 699	287 699
LIABILITIES
DERIVATIVES
Interest rate swaps	0	0	154	154	0	0	154	154
Forward exchange contracts	0	0	494	494	1	1	496	496
Total financial derivatives classified as liabilities	0	0	648	648	1	1	650	650
SUBORDINATED LOAN CAPITAL
Subordinated loan capital	3 032	3 412	0	0	0	0	3 032	3 412
Hybrid Tier 1 securities	1 637	1 592	0	0	0	0	1 637	1 592
Total subordinated loan capital etc.	4 668	5 003	0	0	0	0	4 668	5 003
LIABILITIES TO CREDIT INSTITUTIONS
Norwegian call money ¹	0	0	655	655	3	3	657	657
Foreign call money ¹	885	885	1 759	1 759	16	16	2 660	2 660
Total liabilities to credit institutions	885	885	2 414	2 414	19	19	3 318	3 318
¹ Call money is collateral for paid/received margin related to derivatives

31.12.2021 NOK MILLIONS	Corporate portfolio		Common portfolio		Investment option portfolio		Total
	Book value	Fair value	Book value	Fair value	Book value	Fair value	Book value	Fair value
ASSETS – AT AMORTIZED COST
INVESTMENTS HELD TO MATURITY
Norwegian hold-to-maturity bonds	488	558	3 454	3 789	2	2	3 944	4 350
Accrued not due interest	19	19	98	98	0	0	117	117
Foreign hold-to-maturity bonds	6 191	6 405	15 426	16 581	38	42	21 654	23 029
Accrued not due interest	37	37	208	208	1	1	246	246
Total investments held to maturity	6 735	7 019	19 185	20 677	41	45	25 961	27 741
BONDS CLASSIFIED AS LOANS AND RECEIVABLES
Norwegian bonds	4 830	4 879	49 370	50 187	212	216	54 412	55 282
Accrued not due interest	61	61	676	676	3	3	740	740
Foreign bonds	7 728	7 945	110 489	114 061	490	505	118 706	122 511
Accrued not due interest	103	103	1 716	1 716	8	8	1 826	1 826
Total bonds classified as loans and receivables	12 722	12 988	162 250	166 639	713	732	175 684	180 359
OTHER LOANS AND RECEIVABLES
Secured loans	0	0	2 978	2 982	0	0	2 978	2 982
Lending with public sector guarantee	0	0	68 536	68 679	0	0	68 536	68 679
Loans abroad secured by mortgage and local government guarantee	0	0	6 389	6 389	0	0	6 389	6 389
Accrued not due interest	0	0	270	270	0	0	270	270
Total other loans and receivables	0	0	78 172	78 319	0	0	78 172	78 319
Total financial assets at amortized cost	19 456	20 007	259 608	265 636	753	776	279 817	286 420
ASSETS – AT FAIR VALUE
EQUITY CAPITAL INSTRUMENTS
Norwegian shares	8	8	9 571	9 571	0	0	9 579	9 579
Foreign shares	0	0	43 771	43 771	0	0	43 771	43 771
Total shares	8	8	53 342	53 342	0	0	53 350	53 350
Property funds	0	0	7 071	7 071	0	0	7 071	7 071
Norwegian equity funds	0	0	96 227	96 227	740	740	96 967	96 967
Foreign equity funds	0	0	29 154	29 154	0	0	29 154	29 154
Total equity fund units	0	0	132 453	132 453	740	740	133 193	133 193
Norwegian alternative investments	0	0	1 884	1 884	9	9	1 892	1 892
Foreign alternative investments	0	0	0	0	0	0	0	0
Total alternative investments	0	0	1 884	1 884	9	9	1 892	1 892
Total shares and units	8	8	187 679	187 679	749	749	188 435	188 435
DEBT INSTRUMENTS AT FAIR VALUE
Norwegian bonds	6 101	6 101	28 982	28 982	0	0	35 083	35 083
Foreign bonds	691	691	17 913	17 913	0	0	18 604	18 604
Accrued not due interest	30	30	323	323	0	0	353	353
Norwegian fixed-income funds	2 983	2 983	26 888	26 888	298	298	30 169	30 169
Foreign fixed-income funds	0	0	30 858	30 858	0	0	30 858	30 858
Accrued not due interest	0	0	0	0	0	0	0	0
Norwegian certificates	475	475	3 986	3 986	0	0	4 461	4 461
Foreign certificates	0	0	405	405	0	0	405	405
Accrued not due interest	1	1	3	3	0	0	4	4
Fixed income securities	10 280	10 280	109 357	109 357	298	298	119 935	119 935
Norwegian loans and receivables	1 033	1 033	7 428	7 428	18	18	8 479	8 479
Foreign loans and receivables	254	254	4 964	4 964	56	56	5 274	5 274
Total loans and receivables	1 287	1 287	12 393	12 393	74	74	13 753	13 753
DERIVATIVES
Interest rate swaps	615	615	103	103	0	0	718	718
Share options	0	0	279	279	0	0	279	279
Forward exchange contracts	31	31	1 479	1 479	6	6	1 516	1 516
Total financial derivatives classified as assets	646	646	1 862	1 862	6	6	2 513	2 513
OTHER FINANCIAL ASSETS
Other financial assets	0	0	695	695	0	0	695	695
Total financial assets valued at fair value	12 221	12 221	311 984	311 984	1 126	1 126	325 331	325 331
LIABILITIES
DERIVATIVES
Interest rate swaps	0	0	364	364	0	0	364	364
Forward exchange contracts	0	0	1 646	1 646	4	4	1 650	1 650
Total financial derivatives classified as liabilities	0	0	2 010	2 010	4	4	2 014	2 014
SUBORDINATED LOAN CAPITAL
Subordinated loan capital	3 000	3 310	0	0	0	0	3 000	3 310
Hybrid Tier 1 securities	1 604	1 586	0	0	0	0	1 604	1 586
Total subordinated loan capital etc.	4 604	4 895	0	0	0	0	4 604	4 895
LIABILITIES TO CREDIT INSTITUTIONS
Norwegian call money ¹	0	0	85	85	3	3	87	87
Foreign call money ¹	734	734	818	818	12	12	1 564	1 564
Total liabilities to credit institutions	734	734	902	902	15	15	1 651	1 651
¹ Call money is collateral for paid/received margin related to derivatives.

Note 7 Fair value hierarchy

31.03.2022 NOK MILLIONS	Level 1	Level 2	Level 3	Total
FINANCIAL ASSETS BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Certificates	0	466	0	466
Bonds	27	6 648	0	6 674
Fixed-income funds	2 768	0	0	2 768
Fixed-income securities	2 795	7 113	0	9 908
Loans and receivables	828	830	0	1 658
Shares	0	0	8	8
Shares and units	0	0	8	8
Financial derivatives	0	614	0	614
Other financial assets	0	0	0	0
Total corporate portfolio	3 622	8 558	8	12 188
COMMON PORTFOLIO
Certificates	1 054	2 034	0	3 087
Bonds	20 847	25 513	0	46 361
Fixed-income funds	37 053	8 816	6 863	52 733
Fixed-income securities	58 954	36 363	6 863	102 181
Loans and receivables	17 304	318	0	17 623
Shares	47 867	954	2 669	51 490
Equity funds	91 153	0	51	91 204
Property funds	0	1 144	6 646	7 790
Special funds	0	1 955	0	1 955
Private Equity	0	0	28 998	28 998
Shares and units	139 020	4 053	38 363	181 437
Financial derivatives	0	4 108	0	4 108
Other financial assets	0	8 917	0	8 917
Total common portfolio	215 279	53 758	45 227	314 264
INVESTMENT OPTION PORTFOLIO
Fixed-income funds	307	8	0	315
Fixed-income securities	307	8	0	315
Loans and receivables	90	0	0	90
Equity funds	888	0	0	888
Special funds	0	11	0	11
Shares and units	888	11	0	899
Financial derivatives	0	16	0	16
Other financial assets	0	0	0	0
Total investment option portfolio	1 285	35	0	1 320
Total financial assets valued at fair value	220 186	62 351	45 234	327 772
CORPORATE PORTFOLIO
Investment property	0	0	995	995
Total investment property	0	0	995	995
FINANCIAL LIABILITIES BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Financial derivatives	0	0	0	0
Debt to credit institutions	697	0	0	697
Total corporate portfolio	697	0	0	697
COMMON PORTFOLIO
Financial derivatives	0	245	0	245
Debt to credit institutions	7 144	0	0	7 144
Total common portfolio	7 144	245	0	7 390
INVESTMENT OPTION PORTFOLIO
Financial derivatives	0	1	0	1
Debt to credit institutions	19	0	0	19
Total investment option portfolio	19	1	0	20
Total financial liabilities at fair value	7 860	246	0	8 106

31.03.2021 NOK MILLIONS	Level 1	Level 2	Level 3	Total
FINANCIAL ASSETS BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Certificates	0	352	0	352
Bonds	0	6 781	0	6 781
Fixed-income funds	2 777	0	0	2 777
Fixed-income securities	2 777	7 133	0	9 910
Loans and receivables	750	928	0	1 678
Shares	0	0	7	7
Shares and units	0	0	7	7
Financial derivatives	0	742	0	742
Other financial assets	0	5	0	5
Total corporate portfolio	3 527	8 807	7	12 341
COMMON PORTFOLIO
Certificates	2 590	2 611	0	5 201
Bonds	20 801	26 061	0	46 863
Fixed-income funds	49 775	8 710	4 820	63 305
Fixed-income securities	73 166	37 382	4 820	115 368
Loans and receivables	11 752	315	0	12 067
Shares	32 831	249	2 588	35 668
Equity funds	83 767	0	49	83 817
Property funds	0	1 095	3 174	4 269
Special funds	0	1 846	0	1 846
Private Equity	0	0	16 970	16 970
Shares and units	116 598	3 190	22 781	142 569
Financial derivatives	0	3 067	0	3 067
Other financial assets	0	1 232	0	1 232
Total common portfolio	201 515	45 186	27 601	274 303
INVESTMENT OPTION PORTFOLIO
Fixed-income funds	323	7	0	330
Fixed-income securities	323	7	0	330
Loans and receivables	84	0	0	84
Equity funds	619	0	0	619
Special funds	0	8	0	8
Shares and units	619	8	0	627
Financial derivatives	0	11	0	11
Other financial assets	0	0	0	1
Total investment option portfolio	1 026	27	0	1 054
Total financial assets valued at fair value	206 069	54 020	27 608	287 699
CORPORATE PORTFOLIO
Investment property	0	0	991	991
Total investment property	0	0	991	991
FINANCIAL LIABILITIES BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Financial derivatives	0	0	0	0
Debt to credit institutions	885	0	0	885
Total corporate portfolio	885	0	0	885
COMMON PORTFOLIO
Financial derivatives	0	648	0	648
Debt to credit institutions	2 414	0	0	2 414
Total common portfolio	2 414	648	0	3 062
INVESTMENT OPTION PORTFOLIO
Financial derivatives	0	1	0	1
Debt to credit institutions	19	0	0	19
Total investment option portfolio	19	1	0	20
Total financial liabilities at fair value	3 318	650	0	3 968

31.12.2021 NOK MILLIONS	Level 1	Level 2	Level 3	Total
FINANCIAL ASSETS BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Certificates	0	475	0	475
Bonds	29	6 793	0	6 822
Fixed-income funds	2 983	0	0	2 983
Fixed-income securities	3 012	7 269	0	10 280
Loans and receivables	338	949	0	1 287
Shares	0	0	8	8
Shares and units	0	0	8	8
Financial derivatives	0	646	0	646
Other financial assets	0	0	0	0
Total corporate portfolio	3 350	8 864	8	12 221
COMMON PORTFOLIO
Certificates	1 523	2 872	0	4 394
Bonds	21 634	25 583	0	47 217
Fixed-income funds	42 676	8 842	6 227	57 745
Fixed-income securities	65 833	37 296	6 227	109 357
Loans and receivables	12 076	317	0	12 393
Shares	49 694	927	2 721	53 342
Equity funds	97 369	0	50	97 419
Property funds	0	1 133	5 938	7 071
Special funds	0	1 884	0	1 884
Private Equity	0	0	27 962	27 962
Shares and units	147 064	3 944	36 671	187 679
Financial derivatives	0	1 862	0	1 862
Other financial assets	0	695	0	695
Total common portfolio	224 972	44 114	42 899	311 984
INVESTMENT OPTION PORTFOLIO
Fixed-income funds	292	7	0	298
Fixed-income securities	292	7	0	298
Loans and receivables	74	0	0	74
Equity funds	740	0	0	740
Special funds	0	9	0	9
Shares and units	740	9	0	749
Financial derivatives	0	6	0	6
Other financial assets	0	0	0	0
Total investment option portfolio	1 105	21	0	1 126
Total financial assets valued at fair value	229 427	52 998	42 906	325 331
CORPORATE PORTFOLIO
Investment property	0	0	1 004	1 004
Total investment property	0	0	1 004	1 004
FINANCIAL LIABILITIES BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Financial derivatives	0	0	0	0
Debt to credit institutions	734	0	0	734
Total corporate portfolio	734	0	0	734
COMMON PORTFOLIO
Financial derivatives	0	2 010	0	2 010
Debt to credit institutions	902	0	0	902
Total common portfolio	902	2 010	0	2 912
INVESTMENT OPTION PORTFOLIO
Financial derivatives	0	4	0	4
Debt to credit institutions	15	0	0	15
Total investment option portfolio	15	4	0	19
Total financial liabilities at fair value	1 651	2 014	0	3 665

Changes in Level 3 shares, unlisted CORPORATE PORTFOLIO	Book value 31.03.2022	Book value 31.03.2021	Book value 31.12.2021
Opening balance 01.01.	8	7	7
Sold	0	0	0
Bought	0	0	0
Unrealised changes	0	0	1
Closing balance 31.03./31.12.	8	7	8
Realised gains/losses	0	0	0
Changes in Level 3 shares, unlisted COMMON PORTFOLIO	Book value 31.03.2022	Book value 31.03.2021	Book value 31.12.2021
Opening balance 01.01.	2 721	2 545	2 545
Sold	-20	0	0
Bought	1	0	15
Unrealised changes	-34	43	161
Closing balance 31.03./31.12.	2 669	2 588	2 721
Realised gains/losses	-13	0	0
Changes in Level 3 equity funds, unlisted COMMON PORTFOLIO	Book value 31.03.2022	Book value 31.03.2021	Book value 31.12.2021
Opening balance 01.01.	50	55	55
Sold	0	0	0
Bought	0	0	0
Unrealised changes	1	-5	-5
Closing balance 31.03./31.12.	51	49	50
Realised gains/losses	0	0	0
Changes in Level 3, private equity, fixed- income funds and property funds COMMON PORTFOLIO	Book value 31.03.2022	Book value 31.03.2021	Book value 31.12.2021
Opening balance 01.01.	40 127	23 312	23 312
Sold	-1 242	-786	-4 551
Bought	2 457	1 979	13 793
Unrealised changes	1 165	460	7 574
Closing balance 31.03./31.12.	42 507	24 964	40 127
Realised gains/losses	521	562	2 236
Changes in Level 3, investment property CORPORATE PORTFOLIO	Book value 31.03.2022	Book value 31.03.2021	Book value 31.12.2021
Opening balance 01.01.	1 004	1 017	1 017
Sold	0	0	0
Bought	0	0	0
Unrealised changes	10	9	40
Other	-20	-35	-53
Closing balance 31.03./31.12.	995	991	1 004
Realised gains/losses	0	0	0
Total level 3	46 229	28 600	43 911

Unrealised changes are reflected in the line «Value changes on investments» in the different portfolios in the income statement.

The amounts in the level distribution can in turn be found in the financial position statement under various portfolios’ allocation of financial instruments at fair value and investment property

Fair value shall be a representative price based on what a corresponding asset or liability would have been traded for on normal market terms and conditions. Highest quality in regard to fair value is based on listed prices in an active market. A financial instrument is considered as noted in an active market if noted prices are simply and regularly available from a stock market, dealer, broker, industry grouping, price setting service or regulatory authority, and these prices represent actual and regularly occurring transactions at arm’s length.

LEVEL 1:

Instruments at this level obtain fair value from listed prices in an active market for identical assets or liabilities that the entity has access to at the reporting date. Examples of instruments at Level 1 are stock market listed securities.

LEVEL 2:

Instruments at this level obtain fair value from observable market data. This includes prices based on identical instruments, but where the instrument does not maintain a high enough trading frequency and is therefore not considered to be traded in an active market, as well as prices based on corresponding assets and price-leading indicators that can be confirmed from market information. Example instruments at Level 2 are fixed income securities priced on the basis of interest rate paths.

LEVEL 3:

Instruments at Level 3 contain no observable market data or are traded in markets considered to be inactive. The price is based generally on discrete calculations where the actual fair value may deviate if the instrument were to be traded. The instruments covered at Level 3 in the company include unlisted shares and Private Equity.

Valuations related to items in the various levels are described in note 9 for the Group. For description of the pricing of investment property please see the annual financial statements.

The fair value of assets and liabilities measured at amortized cost are stated in note 6. Level based classification of these items will be as follows; assets classified as held to maturity are included in level 1, lending and loans and receivables are included in level 2. Liabilities, measured at amortized cost, will be categorized as follows: subordinated loans are included in both level 1 and 2, hybrid tier 1 securities are inlcuded in level 2 and debt to credit institutions are included in level 1. Information regarding pricing of these interest bearing instruments are available in note 9 for the Group.

No sensitivity analysis has been carried out on securities included in Level 3. A change in the variables of the pricing is considered of little significance on the securities. A sensitivity analysis for investment property is available in the annual report. On a general basis, a 5 percent change in the pricing would produce a change of NOK 2 311 million as of 31.03.2022 on the assets in level 3.

With regard to transferring securities between the levels, a limit is set for the number of trading days and the amount of trading for shares by separating Level 1 and Level 2. The general principles related to the distribution between levels basically concern whether the asset or liability is listed or not and whether the listing can be stated to be in an active market. As regards shares, there is a further distinction between trading days and amount of trading which separates out listed securities that do not form part of an active market. The values at the end of the reporting period provide the basis for any movement between the levels.

During the 1st quarter, NOK 69 million was moved from Level 1 to Level 2 and NOK 247 million was moved from level 2 to level 1. The amounts are related to equity instruments and the movements are due to change in liquidity. There were no other movements between the different levels in KLP.

Note 8 Presentation of assets and liabilities that are subject to net settlement

31.03.2022 NOK MILLIONS					Related amounts not presented net
	Gross financial assets/ liabilities	Gross assets/ liabilities presented net	Book value	Financial instruments	Security in cash	Security in securities	Net amount
ASSETS
Financial derivates	4 737	0	4 737	-212	-7 756	0	151
Total	4 737	0	4 737	-212	-7 756	0	151
PORTFOLIO ALLOCATION OF ASSETS
Total assets – common portfolio	4 108	0	4 108	-212	-7 045	0	45
Total assets – corporate portfolio	614	0	614	0	-697	0	99
Total assets – investment option portfolio	16	0	16	0	-15	0	7
Total	4 737	0	4 737	-212	-7 756	0	151
LIABILITIES
Financial derivates	246	0	246	-212	-46	0	0
Total	246	0	246	-212	-46	0	0
PORTFOLIO ALLOCATION OF LIABILITIES
Total liabilities – common portfolio	245	0	245	-212	-43	0	0
Total liabilities – corporate portfolio	0	0	0	0	0	0	0
Total liabilities – investment option portfolio	1	0	1	0	-3	0	0
Total	246	0	246	-212	-46	0	0

31.03.2021 NOK MILLIONS					Related amounts not presented net
	Gross financial assets/ liabilities	Gross assets/ liabilities presented net	Book value	Financial instruments	Security in cash	Security in securities	Net amount
ASSETS
Financial derivates	3 819	0	3 819	-643	-2 927	0	392
Total	3 819	0	3 819	-643	-2 927	0	392
PORTFOLIO ALLOCATION OF ASSETS
Total assets – common portfolio	3 067	0	3 067	-642	-2 175	0	320
Total assets – corporate portfolio	742	0	742	0	-741	0	64
Total assets – investment option portfolio	11	0	11	-1	-11	0	8
Total	3 819	0	3 819	-643	-2 927	0	392
LIABILITIES
Financial derivates	650	0	650	-643	-17	0	0
Total	650	0	650	-643	-17	0	0
PORTFOLIO ALLOCATION OF LIABILITIES
Total liabilities – common portfolio	648	0	648	-642	-14	0	0
Total liabilities – corporate portfolio	0	0	0	0	0	0	0
Total liabilities – investment option portfolio	1	0	1	-1	-3	0	0
Total	650	0	650	-643	-17	0	0

31.12.2021 NOK MILLIONS					Related amounts not presented net
	Gross financial assets/ liabilities	Gross assets/ liabilities presented net	Book value	Financial instruments	Security in cash	Security in securities	Net amount
ASSETS
Financial derivates	2 513	0	2 513	-1 485	-1 640	-79	310
Total	2 513	0	2 513	-1 485	-1 640	-79	310
PORTFOLIO ALLOCATION OF ASSETS
Total assets – common portfolio	1 862	0	1 862	-1 484	-901	-79	279
Total assets – corporate portfolio	646	0	646	0	-734	0	27
Total assets – investment option portfolio	6	0	6	-2	-5	0	4
Total	2 513	0	2 513	-1 485	-1 640	-79	310
LIABILITIES
Financial derivates	2 014	0	2 014	-1 485	-21	-330	222
Total	2 014	0	2 014	-1 485	-21	-330	222
PORTFOLIO ALLOCATION OF LIABILITIES
Total liabilities – common portfolio	2 010	0	2 010	-1 484	-18	-330	220
Total liabilities – corporate portfolio	0	0	0	0	0	0	0
Total liabilities – investment option portfolio	4	0	4	-2	-3	0	3
Total	2 014	0	2 014	-1 485	-21	-330	222

The purpose of this note is to show the potential effect of netting agreements at KLP; what possibilities KLP has to net bilateral agreements against other counterparties should the latter go bankrupt and the remaining amount if all such netting agreements are materialized. The note shows derivative positions in the financial position statement, and one additional table with information on the different portfolios in the company.

Note 9 Liabilities

NOK MILLIONS	31.03.2022	31.03.2021	31.12.2021
Short-term liabilities securities	8 676	1 503	367
Advance tax-deduction pension scheme	439	392	491
Accounts payable	128	-17	10
Derivatives	246	650	2 014
Debt to credit institutions	7 860	3 318	1 651
Liabilities related to direct insurance	904	850	699
Other liabilities	154	132	30
Total liabilities	18 407	6 828	5 261

Note 10 SCR ratio

The Solvency II balance sheet includes assets and liabilities at fair value. For assets that have a different value in the accounts change in balance value are added. There are no observable market values for KLP’s insurance liabilities, which are thus calculated by way of a best estimate based on actuarial assumptions. In addition there is a risk margin that is to reflect a third party’s capital costs by taking over these liabilities.

Tier 1 capital appears from the Solvency II balance sheet and Hybrid Tier 1 securities. Tier 2 capital consist of subordinated loans and ancillary own funds. The Financial Supervisory Authority of Norway has accepted that KLP’s right to call in further member contribution if necessary, which is laid down in the Company’s articles of association, can be counted as ancillary own funds, the amount corresponding to 2.5 per cent of the Company’s premium reserve. Capital that may be included in Tier 2 capital is limited upwards to 50 per cent of SCR.

Without the use of the transitional measure on technical provisions the Company’s SCR ratio is 332 per cent, which is well over the Company’s target of at least 150 per cent. With the transitional measure on technical provisions the SCR ratio is 332 per cent.

NOK BILLIONS	31.03.2022	31.03.2021	31.12.2021
	31.03.2022	31.03.2021	31.12.2021
SOLVENCY II-SCR RATIO	332 %	287 %	316 %
SIMPLIFIED SOLVENCY II FINANCIAL POSITION STATEMENT
Assets, book value	710	650	706
Added values - hold-to-maturity portfolio/loans and receivables	-5	11	7
Added values - other lending	0	0	0
Other added/lesser values	0	0	0
Deferred tax asset	0	0	0
Total assets - solvency II	705	661	713
NOK BILLIONS	31.03.2022	31.03.2021	31.12.2021
SIMPLIFIED SOLVENCY II FINANCIAL POSITION STATEMENT
Best estimate	627	595	647
Risk margin	12	13	13
Hybrid Tier 1 securities/Subordinated loan capital	5	5	5
Other liabilities	25	15	11
Deferred tax liabilities	0	1	1
Total liabilities - solvency II	668	629	676
Excess of assets over liabilities	37	33	36
- Deferred tax asset	0	0	0
+ Hybrid Tier 1 securities	2	2	2
Tier 1 basic own funds	38	34	38
Total eligible tier 1 own funds	38	34	38
Subordinated loans	3	3	3
Tier 2 basic own funds	3	3	3
Ancillary own funds	12	11	12
Tier 2 ancillary own funds	12	11	12
Deduction for max. eligible tier 2 own funds	-8	-7	-8
Total eligible tier 2 own funds	7	7	7
Deferred tax asset	0	0	0
Total eligible tier 3 own funds	0	0	0
Solvency II total eligible own funds	45	42	45
Market risk	7	7	7
Diversification market risk	-2	-2	-2
Counterparty risk	0	0	0
Life risk	13	13	13
Diversification life risk	-2	-3	-2
Diversification general	-3	-3	-3
Operational risk	3	3	3
Loss absorbing ability deferred tax	-2	-1	-2
Solvency capital requirement (SCR)	14	14	14
Linear minimum capital requirement (MCR_linear)	5	6	5
Minimum	3	4	4
Maximum	6	7	6
Minimum capital requirement (MCR)	5	6	5
Solvency II -SCR ratio	332 %	287 %	316 %

Note 11 Leases

NOK MILLIONS	31.03.2022	31.03.2021	31.12.2021
RIGHT-OF-USE ASSETS	Property
Opening balance 01.01.	973	1 081	1 081
Depreciation	-27	-27	-108
Closing balance	946	1 054	973
NOK MILLIONS	31.03.2022	31.03.2021	31.12.2021
LEASE LIABILITIES	Property
Opening balance 01.01.	1 012	1 099	1 099
Repayments	-23	-22	-88
Closing balance	989	1 078	1 012
NOK MILLIONS	Q1 2022	Q1 2021	01.01.2021 -31.12.2021
	Property
Interest expense lease liabilities	6	6	26
Interest expense lease liabilities	6	6	26

Note 12 Pension obligations

NOK MILLIONS	31.03.2022	31.03.2021	31.12.2021
Capitalized net liability 01.01.	553	594	594
Capitalized pension costs	31	28	110
Capitalized financial costs	3	3	12
Actuarial gains and losses	-270	-118	-48
Premiums / contributions received	-17	-16	-116
Capitalized net liability 31.03. / 31.12.	301	491	553
ASSUMPTIONS	31.03.2022	31.03.2021	31.12.2021
Discount rate	2,70 %	2,00 %	1,90 %
Salary growth	2,75 %	2,25 %	2,75 %
The National Insurance basic amount (G)	2,50 %	2,00 %	2,50 %
Pension increases	1,75 %	1,24 %	1,75 %
Social security contribution rate	14,10 %	14,10 %	14,10 %
Capital activity tax	5,00 %	5,00 %	5,00 %

The effect of changes in pension assumptions reduces the pension liability for employees with NOK 270 million as of 31.03.2022. The change is recognized in "Total other income and expenses that will not be reclassified to profit or loss".