Q1 2025 Interim report

KLP Group

Report for the first quarter of 2025

The first quarter of 2025 was marked by geopolitical unrest, with increased tensions linked to trade restrictions flagged by the USA, wider signs of protectionism, and the ongoing war in Ukraine. This has contributed to uncertainty and unrest in the financial markets. At such times, the value of solid financial buffers comes to the fore, as they provide security and stability for our customers and owners.

Return of 0.0 per cent on the pension assets in the common portfolio in the first quarter.
The solvency margin for the Group is 290 per cent
Good pensions expertise and new and modern system solutions position KLP well to handle pension cases effectively and to advise members on pension matters under new and complicated rules for public-sector occupational pensions from 2025 onwards.

KLP – a customer-owned group with a 75-year history

The KLP Group is made up of the following companies: Kommunal Landspensjonskasse (KLP) and its subsidiaries KLP Banken Group, KLP Skadeforsikring, KLP Kapitalforvaltning, KLP Forsikringsservice and KLP Eiendom.

At the end of the first quarter of 2025, the Group had total assets of NOK 1,149 billion.

Public-sector occupational pensions

NOK MILLIONS	Customers	Company	Total
Investment result	-4 092	-2	-4 093
Risk result	168		168
Interest guarantee premium		2	2
Administration result		-27	-27
Net income from investments in the corporate portfolio and other income/expenses in non-technical accounts		232	232
Tax		-45	-45
Other profit/loss elements		0	0
Profit/loss after Q1 2025	-3 924	160	-3 764
Profit/loss after Q1 2024	18 700	249	18 948

Investment result

KLP manages the pension capital that covers the entitlements that have been accrued. The pension capital is mainly managed in the common portfolio.

The pension money has to be paid out over many years, so part of this amount can be financed from the return on the pension capital (guaranteed return).

KLP’s return guarantee amounts to NOK 3.7 billion after the first quarter. Actual net financial income came to NOK -0.4 billion, a return of 0.0 per cent, so the investment result was NOK -4.1 (+18.7) billion. The negative investment result after the first quarter has been covered with a temporary transfer from the buffer fund, reducing this from NOK 123.0 to 118.9 billion.

Per cent	31.03.2025	31.03.2024
Return on the common portfolio	0,0 %	3,0 %
Return incl. value changes in hold-to-maturity bonds and lending	0,0 %	2,7 %
The returns figures apply to the common portfolio
Capital adequacy, Solvency II	355 %	351 %
Capital adequacy, Solvency II, with transitional measures	355 %	351 %

Management of the common portfolio

The assets in the common portfolio totalled NOK 805.3 (751.5) billion:

Assets	31.03.2025		31.03.2024
All figures in per cent	Proportion	Return	Proportion	Return
Equities	34,4 %	-2,3 %	33,5 %	8,0 %
Short-term bonds	26,8 %	0,9 %	28,1 %	0,8 %
Long-term/HTM bonds	13,3 %	1,7 %	13,3 %	-0,4 %
Lending	10,9 %	1,2 %	11,2 %	1,1 %
Property	11,0 %	1,2 %	11,0 %	0,5 %
Other financial assets	3,6 %	1,3 %	3,0 %	1,3 %

Shares and alternative investments

Total exposure in shares and special funds, including equity derivatives, was 34.4 per cent at the end of the first quarter. The total return on shares and special funds was minus 2.3 per cent in the quarter. The return on KLP’s global listed equities was minus 4.5 per cent, while KLP’s Norwegian equity portfolio returned 6.6 per cent in the first quarter.

The currency hedging ratio for equities in developed markets and the most liquid currencies in emerging markets is between 40 and 60 per cent. In the first quarter, the Norwegian krone strengthened against the US dollar and the euro, among other currencies. Currency hedging had a positive impact on the return on shares this quarter.

Short-term bonds and the money market

Short-term bonds accounted for 11.0 per cent and money-market instruments 3.6 per cent of the assets in the common portfolio at the end of the quarter. Long-term government rates rose in the first quarter in Norway and the euro zone, while they fell in the USA. KLP’s global government bond index achieved a currency-hedged return of 0.2 per cent in the quarter, while the return on the Norwegian government bond index was also 0.2 per cent. Global credit margins increased during the quarter. The quarterly return on KLP’s global credit bond index was 1.8 per cent, while the return on the Norwegian credit bond index was 1.1 per cent. Short-term bonds produced a total return of 1.2 per cent in the first quarter. The money market return was 1.3 per cent for the quarter.

Long-term bonds

Investments in long-term bonds (measured at amortised cost) made up 26.8 per cent of the common portfolio at the end of the quarter. Unrecognised decreases in value in the common portfolio amounted to NOK 10.3 billion at the end of the first quarter. The portfolio is well diversified and consists of securities issued by creditworthy borrowers. The return measured at amortised cost in this quarter was 0.9 per cent.

Property

Property investments, including Norwegian and international real estate funds, made up 13.3 per cent of the common portfolio.

Property investments in the common portfolio achieved a return of 1.7 per cent in the first quarter. The returns include currency hedging.

Lending

Lending in the common portfolio totals NOK 86.4 billion. This is split between NOK 77 billion in loans to the public sector, NOK 3.4 billion in secured mortgage loans and NOK 5.9 billion in loans outside Norway secured against mortgages or government guarantees. The lending portfolio is of high credit quality, with no losses on municipal loans and very modest provisions for losses on mortgage-backed loans. Unrecognised decreases in value in the lending portfolio totalled NOK 1.1 billion at the end of the quarter. The return for the first quarter is 1.2 per cent.

Returns on the corporate portfolio

Investments in the corporate portfolio amount to NOK 48.4 (48.2) billion at the end of the quarter.

The corporate portfolio is managed with a moderate-risk long-term investment horizon, with the objective of stable returns. The investments in the corporate portfolio achieved a return of 0.6 per cent in the first quarter.

Risk result

The risk result is an expression of how mortality and disability have developed in the insured population in relation to the assumptions used in the annual setting of premiums.

The risk result came to NOK 168 (82) million in the first quarter.

Administration result

The difference between the cost elements within premium income, withdrawals from management reserves and insurance-related operating expenses constitutes the administration result. This shows a deficit of NOK -27 (-8) million in the first quarter. Insurance-related operating costs came to NOK 479 (432) million in the first quarter.

Financial strength and capital-related matters

KLP’s total assets increased by NOK 2.0 billion in the first quarter and amount to NOK 866.0 billion. The premium reserve increased by NOK 0.4 billion to NOK 615.5 billion in the same period.

The buffer fund amounts to NOK 119.2 billion after the first quarter. The fund can be used to cover any shortfall in returns on the pension capital and constitutes a financial buffer.

KLP’s subordinated loan of EUR 294 million will be repaid in the second quarter of 2025, in line with the standard terms and conditions for the loan. The loan is listed on the London Stock Exchange and can be paid off with the consent of the Financial Supervisory Authority of Norway. The loan qualifies as Tier 2 capital under the Solvency II rules. Repayment of the loan is not expected to have a material impact on capital adequacy with the current capital situation.

Without applying transitional rules, the Company’s solvency capital requirement (SCR) is 355 per cent. This is an decrease of 6 percentage points in the quarter.

KLP’s target is for capital adequacy to exceed 150 per cent. Solvency is well above this target and thus enables sound and stable management of customer assets in a multi-year perspective.

Premium income

Premium income excluding premium reserves received on transfers in amounted to NOK 8.1 (7.8) billion at the end of the first quarter. Of this, premiums related to the settlement of accrued pension rights amount to NOK 0.2 (0.4) billion.

Claims/benefits

Pensions paid and other claims, excluding ceded premium reserves, amounted to NOK 6.9 (6.8) billion after the first quarter.

Other matters

The market situation for public-sector occupational pensions is stable. KLP places great emphasis on close consultation with its customers to further develop service concepts and online solutions with good pension guidance. Efforts have been made in recent years to renew and further develop our pension systems. All benefits now fall within the new system, which enhances the customer experience and provides valuable guidance to the individual employee, as well as immediate responses to most pension applications.

Storebrand filed a complaint against Norway with the ESA in 2022, alleging that KLP is receiving unlawful state aid, and that Norwegian municipalities and health trusts have breached the rules on public procurement. The government has rejected both complaints. KLP has provided relevant information to shed light on the complaint cases when this has been requested. The complaints are still being processed by the ESA, and no formal action has been initiated on either of them. In both cases, as part of its information gathering, the ESA has made its preliminary assessments and asked for the government’s comments on these.

Non-life insurance

The first quarter of 2025 shows a profit/loss before tax and other provisions of NOK 32.2 (-117.7). million The insurance result is slightly better than expected, largely because no major claims were filed in the quarter. Settlement losses of NOK 24.6 million related to previous claims years were posted in the quarter. This equates to 1.0 per cent of the claims provisions at the beginning of the year. Financial income is lower than expected because of the great uncertainty around US economic policy, with a negative return in March in particular.

Volume growth so far this year is NOK 212 million, and premium volume was NOK 3,052 (2,731) million at the end of the first quarter of 2025. The increase is mainly due to good sales in the autumn 2024 procurement round, and slightly increased premium rates. Premium income increased by NOK 79 million, or 10.1 per cent, and amounts to NOK 786 million for the first quarter. The retail market shows growth of NOK 38 million, or 11.4 per cent, while the public-sector and corporate market shows growth of NOK 41 million, or 9.1 per cent.

Key figures

	31.03.2025	31.03.2024	31.12.2024
Claims ratio	74,8 %	98,2 %	77,3 %
Reinsurance percentage	8,8 %	15,0 %	6,4 %
Cost ratio	15,1 %	14,6 %	13,0 %
Combined ratio	98,7 %	127,7 %	96,8 %

Net financial income in the first quarter of 2025 was NOK 43.8 (96.7) million, equivalent to 0.7 (1.2) per cent.

The solvency margin (SCR) increased from 246 per cent at the end of 2024 to 256 per cent at the end of the first quarter of 2025.

Asset and fund management

KLP Kapitalforvaltning AS handles securities management in the KLP Group. It had a total of NOK 868 billion under management at the end of the first quarter, NOK 232 billion of it on behalf of external customers.

Net new subscriptions to the KLP funds were NOK 5.8 billion in the first quarter. External customers had positive net new subscriptions of NOK 5 billion in the same period.

KLP Kapitalforvaltning made a loss before tax of NOK -8.2 (+11.9) million.

Bank

The KLP Banken Group had a pre-tax operating profit of NOK 76.6 (75.1) million in the first quarter. The change in profits from last year is mainly due to an increase in net interest income and reduced gains on financial instruments.

Broken down by area, pre-tax profits were NOK 55.1 (51.1) million in the retail market and NOK 22.6 (24.0) million in the public-sector market.

The Bank’s operating income, in the form of net interest income, was NOK 133.0 (126.6) million in the first quarter. The increase is mainly due to increased lending volume, as well as slightly higher margins between lending and financing in the retail market.

At the end of the quarter, the income statement includes net income of NOK 1.3 (6.9) million from changes in the value of financial instruments. This profit/loss effect is mainly related to loan buy-backs and changes in the market value of the bank’s liquidity investments.

Operating expenses and depreciation amounted to NOK -82.4 (-79.5) million in the first quarter.

Losses and loss provisions in the retail market taken to profit/loss total NOK -1.2 (+1.1) million so far in 2025. . The change from the same period last year is largely due to the reversal of historical loan loss provisions in the first quarter of 2024. KLP Banken does not believe that losses and loss provisions on mortgages and credit cards have increased significantly from last year. Nor have we seen any losses related to public-sector lending so far in 2025.

KLP Banken manages lending on its own account and loans financed by KLP totalling NOK 130 (124) billion. On its own balance sheet, the KLP Banken Group had loans to customers totalling NOK 43.7 (42.8) billion at 31 March 2025. Mortgage loans in the retail market and public-sector loans totalled NOK 24.3 (24.1) billion and 19.4 (18.7) billion respectively.

The KLP Banken Group manages NOK 3.4 (2.7) billion in mortgage loans and NOK 82.9 (78.5) billion in loans to public-sector borrowers and other businesses on behalf of KLP. The Bank’s mortgage products are aimed at the target group of members of the KLP pension schemes. Net total mortgage growth so far in 2025 is NOK 149 (209) million.

KLP Banken’s lending volume in the public-sector market increased by NOK 0.7 (-0.3) billion in the first quarter. Loans to public-sector borrowers managed on behalf of KLP were down by NOK -0.8 (up 1.5) billion in the same period. New payments of public-sector loans so far in 2025 amount to NOK 2.1 (2.1) billion for KLP and KLP Banken together.

The KLP Banken Group’s external financing consists of deposits and bonds. At the time of reporting, deposits from individuals and businesses amounted to NOK 16.8 (14.5) billion. Deposits grew by NOK 1.0 billion (6.1 per cent) in the first quarter. Liabilities created on issuance of securities totalled NOK 32.3 (31.3) billion. The securities debt is mainly covered bonds issued by KLP Kommunekreditt AS and KLP Boligkreditt AS.

Group

KLP is a mutual insurance company which produces consolidated financial statements in accordance with IFRS Accounting Standards®. These accounting rules reflect the fact that, as a mutual insurance company where all value creation in KLP accrues to policyholders and is posted as a liability to them. The liability to policyholders is made up of the discounted value of future insurance payments, the risk adjustment for non-financial risk, and a remainder (“residual value”) which is any additional capital beyond what we expect to pay out in agreed benefits on the insurance contracts. The Group therefore has no profits or equity. However, some technical equity may still arise if assets or liabilities have been measured at anything other than fair value in the balance sheet, as the liability to policyholders is based on the fair value of net assets. The equity will then represent the difference between book value and fair value, and the change in measurement difference will be posted as a net gain/loss. The change in measurement difference amounted to NOK 13 million in the first quarter. Equity totals NOK -3,291 million, representing unrecognised increases in the value of the Group’s assets.

The Group achieved net investment income of NOK 0.7 (20.1) billion in the first quarter.

Change in Q1 2025	31.12.2024	Change taken to profit/loss	Cash flows posted directly to the balance sheet	31.03.2025
Best estimate of insurance liability	414 490	-9 962	-2 564	401 964
Risk adjustment	29 303	-1 045	0	28 258
Residual value	395 820	11 059	0	406 880
Total insurance liability	839 613	53	-2 564	837 102

Sustainability

Climate-friendly investments

Climate-friendly investments are investments that contribute directly to emission reductions, or otherwise contribute to the green transition. KLP’s climate-friendly investments have accumulated over time, and accounted for 13 per cent of its financial assets at the end of the first quarter. In the first quarter alone, these investments increased by around NOK 3.8 billion. This increase is mainly due to investments in a number of mutual funds which invest in renewable energy around the world, and in green bonds in Norway.

NOK MILLIONS	Q1/2025	31.03.2025	31.12.2024
	Amount invested	Fair value
Climate and nature-based solutions	3 029	50 921	53 785
Renewable energy	3 029	48 173	50 945
As a share of KLP’s investments	-	5,6 %	6,0 %
of which: renewable energy in Norway	2 663	2 748	28 095
of which: renewable energy abroad	366	19 821	19 821
of which: renewable energy in developing countries	-	3 028	3 028
Sustainable forests	-	2 840	2 840
Transitional financing	761	58 212	57 227
Green buildings	10	34 727	34 435
Green loans	542	14 367	13 855
Green bonds	209	4 852	4 642
Sustainable infrastructure	-	4 266	4 295
Total climate-friendly investments	3 790	109 133	111 012
As a share of KLP’s investments	-	13 %	13 %

Active ownership

Sustainability is opposed by the new political leadership in the US, which has implications for international cooperation and companies in KLP’s portfolio. Several U.S. companies are dropping official targets related to diversity, equality and inclusion. We have contacted the relevant companies to clarify what this will mean for their work on these issues going forward.

During the first quarter, we have worked to make contact with renewable energy companies to discuss their handling of corruption risk. The renewables sector plays an important role in climate change. However, it is also a sector where there have been issues related to corruption, and an area we want to work more closely with in the future.

As we did last year, we have prepared a list of companies in which KLP will vote against the re-election of directors at this year’s general meeting. This includes the companies in the portfolios that produce the biggest emissions without having a credible transition plan, and companies that pose a high risk of contributing to tropical deforestation, but lack basic risk management procedures.

Future prospects

KLP considers a wide range of factors that could affect future developments in the financial markets and the Group’s operations. The Trump administration has already signalled significant regulatory and economic changes, with increased volatility in global capital markets. Wider protectionist measures and possible revision of international trade and financing agreements could have an impact on the investment climate and transatlantic relations.

KLP is closely monitoring changes in regulatory frameworks related to data security and privacy and a possible fragmentation of digital collaboration. This is especially relevant at a time of increased geopolitical tension and possible changes in cybersecurity policy.

We are also seeing tougher political rhetoric from the new administration that could have implications for sustainability efforts all over the world. As an operator with high sustainability ambitions and reporting obligations under the CSRD, we are constantly assessing how changing conditions affect both our strategic positioning and our investment decisions.

Despite the uncertainty, the Group is well positioned, with solid financial buffers, a high degree of digital maturity and a robust organisation. This gives us room to adapt to rapid market and regulatory changes, and to seize any opportunities that may arise.

The introduction of new rules for public-sector occupational pensions in 2020, with effect from 2025, provides increased flexibility and incentives for working longer. As manpower shortages are a major challenge for KLP’s customers, the company will continue its work on guidance and digital solutions to support members in their pension choices and show the value of remaining at work for longer.

Increased digitisation and collaboration between pension providers ensures more efficient processes and better data quality. KLP invests in new technologies, including artificial intelligence and cloud-based solutions, to improve services, increase security and reduce costs.

Building financial buffers has been a priority for KLP’s owners for many years. This has resulted in solid financial buffers that provide security for the pension capital, stable receipts and sound management of the pension assets in turbulent financial markets.

KLP will also continue its work on sustainable investments and further development of financial services for the public sector, for the benefit of customers and members.

Oslo, 14. May 2025

The Board of Directors of Kommunal Landspensjonskasse gjensidig forsikringsselskap

TINE SUNDTOFT
Chair

TERJE ROOTWELT-REVHEIM
Deputy Chair

ODD HALDGEIR LARSEN

KJERSTIN FYLLINGEN

TORKILD SINDRE VARRAN

ELI ARNSTAD

VIBEKE HELDAL
Elected by and from among the employees

ERLING BENDIKSEN

Elected by and from among the employees

SVERRE THORNES
CEO

Income statement

KLP Group

NOTE	NOK MILLIONS	Q1 2025	Q1 2024	01.01.2024 -31.12.2024
3, 5	Insurance service result	312	- 111	- 1 620
	Net income from investments measured at fair value with changes in profit and loss	-12 254	37 813	99 618
4	Fair value adjustment investment properties and rental income	1 529	29	5 011
	Net income from associated companies and joint ventures	399	-549	-38
	Interest income, effective interest method	616	614	2 481
	Interest expenses, effective interest method	-555	-529	-2 187
	Unit holder's value change in consolidated securites funds	11 003	-17 322	-38 287
	Total net income	738	20 056	66 598
	Policyholder's share of changes in fair value of underlying items	-408	-19 837	-63 663
	Other insurance related financial cost	-21	-19	-84
5	Net insurance related financial cost	-430	-19 856	-63 747
	Net insurance services and financial result	621	89	1 231
6	Net costs subordinated loan and hybrid Tier 1 securities	146	-261	-451
	Operating expenses	-246	-223	-808
	Other expenses	-67	-62	-34
	Pre-tax income	454	-457	-61
	Cost of taxes	-290	-318	-1 634
	Income	164	-774	-1 695
12	Change in actuarial asumptions own emplyees	0	199	442
	Tax on items that will not be reclassified to profit or loss	0	-26	-72
	Items that will not be reclassified to profit or loss	0	172	370
	Fair value adjustment of properties for own use	9	1	49
4	Translation difference foreign exchange	-158	651	1 124
	Tax on items that will be reclassified to profit or loss	-2	0	-12
	Items that will be reclassified to profit or loss	-151	652	1 161
	Total other comprehensive income	-151	824	1 531
	Total comprehensive income	13	50	-163

Financial position statement KLP Group

NOTE	NOK MILLIONS	31.03.2025	31.03.2024	31.12.2024
	Deferred tax assets	42	43	40
	Intangible assets	1 603	1 430	1 551
	Tangible fixed assets	2 326	2 277	2 312
	Investments in associated companies and joint venture	7 219	5 959	6 820
4, 9	Investment property	98 975	95 431	98 889
5	Reinsurance contract assets	369	680	510
7, 9	Shares and units	455 021	406 457	477 165
7, 9	Fixed income securitites at fair value through profit or loss	426 125	406 041	419 077
7	Fixed income securitites at amortised costs	2 351	2 253	2 334
7, 9	Lending customers at fair value through profit or loss	87 100	82 932	87 092
7	Lending customers at amortised costs	43 721	42 837	42 836
7, 9	Financial derivatives	12 951	1 280	1 469
7	Receivables	7 024	14 914	3 534
	Bank deposits	4 012	3 008	3 762
	TOTAL ASSETS	1 148 840	1 065 541	1 147 389
7, 8	Hybrid Tier 1 securities	1 373	1 489	1 429
7, 8	Subordinated loan capital	3 470	3 533	3 560
12	Pension obligations	566	744	543
5	Insurance obligations	837 102	784 749	839 613
7, 8	Covered bonds issued	31 478	30 448	31 529
7, 8	Debt to credit institutions	12 257	2 828	1 395
7, 8	Liabilities to and deposits from customers	16 757	14 157	15 801
7	Financial derivatives	3 021	9 342	11 304
	Deferred tax liabilites	1 141	1 179	1 213
13	Other current liabilities	12 446	17 245	5 427
	Equity	-3 291	-3 090	-3 303
	Unit holders`s interest in consolidated securites funds	232 519	202 916	238 879
	TOTAL EQUITY AND LIABILITIES	1 148 840	1 065 541	1 147 389

Changes in owners’ equity KLP Group

NOK MILLIONS	31.03.2025	31.03.2024	31.12.2024
Incoming balance 1. january	- 3 303	- 3 140	- 3 140
Income	164	- 774	- 1 695
Other comprehensive income	- 151	824	1 531
Total comprehensive income	13	50	- 163
Closing balance	- 3 291	- 3 090	- 3 303

Statement of cashflowKLP Group

NOK MILLIONS	01.01.2025 -31.03.2025	01.01.2024 -31.03.2024	01.01.2024 -31.12.2024
Net cash flow from operational activities	-7 818	-7 110	-6 010
Net cash flow from investment activities¹	-102	-87	-428
Net cash flow from financing activities ²	8 170	6 695	6 690
Net changes in cash and bank deposits	250	-502	252
Holdings of cash and bank deposits at start of period	3 762	3 509	3 509
Holdings of cash and bank deposits at end of period	4 012	3 008	3 762
¹ Payments on the purchase of tangible fixed assets.
² Net receipts of owners’ equity contribution, in addition to payments from unit holders in consolidated security funds.

Notes to the financial statementKLP Group

Note 1 Accounting principles –and estimates

Accounting principles

The financial statements in this interim report show the Kommunal Landspensjonskasse (KLP) group financial statements financial statements for the period 01.01.2025 – 31.03.2025. The accounts have not been audited.

The consolidated financial statements for KLP have been prepared in accordance with IFRS® accounting standards, as approved by the EU, with additions set out in the Norwegian Regulations on annual accounts for insurance companies. The part of the interim report that relates to the Group financial statements has been prepared in accordance with IAS 34 Interim financial Reporting.

All amounts are presented in NOK millions without decimals unless indicated otherwise.

No other changes have been made to the accounting principles that affect the interim financial statements as of 31.03.2025. Refer to the Group’s annual report for 2024 for a more detailed description of accounting principles.

The interim financial statements do not contain all the information required for complete annual financial statements, and this interim report should be read in conjunction with the annual financial statements for 2024. The annual report can be retrieved from www.klp.no.

Changes in IFRS® Accounting Standards

A new accounting standard for presentation and disclosures in financial statements, IFRS 18, has been published by the IASB in April 2024. This new standard will replace IAS 1 Presentation of Financial Statements. If endorsed by the EU, the standard will be effective for annual reporting periods beginning on or after 1 January 2027. KLP does not plan to early implement the standrad.

Accounting estimates

In preparing the interim financial statements, we have exercised discretion and used estimates and assumptions that affect the accounting figures. Actual figures may differ from the estimates used.

The measurement of insurance contracts under IFRS 17 uses a number of new parameters that are fraught with considerable uncertainty. The most important for the various business areas are:

Life insurance activities

All cash flows arising from the insurance contracts that are within the contract limit are included in the measurement of the insurance contract. Future cash flows are calculated using assumptions of future annual wage growth/adjustment derived from a projection of the NAM (Norwegian Aggregate Model). The model produces a macro projection of key economic variables year by year based on the economic situation at the measurement date.
The cash flow calculations use best estimates of mortality and disability.
The cash flows are discounted with an interest rate curve that takes account of the time value of money and any financial risk that is not included in the estimated cash flows. The interest rate curve is based on the EIOPA interest rate curve with an illiquidity mark-up.
The risk adjustment for non-financial risk is based on the risk appetite in the life insurance business and a 98 percent confidence level and amounts to 8.4 percent of the insurance liability in 2025.

Non-life insurance activities

The claims provisions are estimated from the company’s historical payment patterns.
The claims provisions are discounted with an interest rate curve that takes account of the time value of money and any financial risk that is not included in the estimated payments. The interest rate curve is based on the EIOPA interest rate curve with an illiquidity mark-up.

Insurance income under IFRS 17 corresponds to pro-rata premiums earned, adjusted for seasonal variations.

Seasonal variations are estimated from the historical variation in the company’s history of claims received through the year.

The risk adjustment is derived from the company’s risk appetite. The risk adjustment represents an addition to technical provisions so there is a 75 percent probability that they will be sufficient to cover all insurance obligations. The risk adjustment for non-financial risk is based on the risk appetite in the non-life insurance business and a 75 percent confidence level and amounts to 4.0 percent of the net insurance liability in 2025.

Note 2 Segment information

NOK MILLIONS	Group pensions pub. sect. & group life			Non-life insurance			Banking			Asset management
	01.01.2025 -31.03.2025	01.01.2024 -31.03.2024	01.01.2024 -31.12.2024	01.01.2025 -31.03.2025	01.01.2024 -31.03.2024	01.01.2024 -31.12.2024	01.01.2025 -31.03.2025	01.01.2024 -31.03.2024	01.01.2024 -31.12.2024	01.01.2025 -31.03.2025	01.01.2024 -31.03.2024	01.01.2024 -31.12.2024
Result from insurance services	0	0	0	10	-196	88	0	0	0	0	0	0
Premium income for own account	8 110	7 842	60 883	0	0	0	0	0	0	0	0	0
Net financial income from investments	-393	22 199	65 570	44	97	380	136	133	514	10	9	29
Claims for own account	-11 233	-9 265	-30 200	0	0	0	0	0	0	0	0	0
Insurance provisions for own account	3 968	-20 239	-94 146	0	0	0	0	0	0	0	0	0
Policyholder's share of changes in fair value of underlying items	0	0	0	0	0	0	0	0	0	0	0	0
Other insurance related financial cost	0	0	0	-21	-19	-84	0	0	0	0	0	0
Unit holder's value change in consolidated security funds	0	0	0	0	0	0	0	0	0	0	0	0
Net insurance services and financial result	452	537	2 107	32	-117	384	136	133	514	10	9	29
Net financial income from investments in companys portefolio	94	328	2 143	0	0	0	0	0	0	0	0	0
Net costs subordinated loan and hybrid Tier 1 securities	136	-243	-382	0	0	0	0	0	0	0	0	0
Operating expenses	-479	-432	-1 693	0	0	0	-82	-79	-280	-162	-147	-520
Other income and expenses	2	-8	-6	0	0	2	23	21	92	143	150	593
Pre-tax income	205	183	2 169	32	-117	386	77	75	325	-8	12	103
Cost of taxes	-45	-83	-356	-8	29	-61	1	-1	-10	2	-2	-24
Income	160	99	1 812	24	-88	325	78	74	315	-6	10	79
Total other comprehensive income	0	149	329	0	17	36	0	8	17	0	17	31
Total comprehensive income	160	249	2 142	24	-71	361	78	82	332	-6	27	110
Lending	107 646	306 644	106 343	0	0	0	45 295	43 817	44 033	0	0	0
Other assets	758 338	498 001	757 603	7 515	7 006	6 712	7 416	5 040	7 770	694	675	775
Total assets	865 984	804 645	863 946	7 515	7 006	6 712	52 711	48 857	51 803	694	675	775
Insurance liabilites	797 920	745 385	803 036	4 039	4 007	3 294	0	0	0	0	0	0
Other liabilities	20 669	15 166	13 675	497	477	464	49 271	45 668	48 364	207	227	282
Total liabilities	818 590	760 551	816 712	4 536	4 484	3 757	49 271	45 668	48 364	207	227	282

NOK MILLIONS	Other and eliminiations			Total
	01.01.2025 -31.03.2025	01.01.2024 -31.03.2024	01.01.2024 -31.12.2024	01.01.2025 -31.03.2025	01.01.2024 -31.03.2024	01.01.2024 -31.12.2024
Result from insurance services	303	85	-1 708	312	-111	-1 620
Premium income for own account	-8 110	-7 842	-60 883	0	0	0
Net financial income from investments	-10 062	14 940	38 393	-10 265	37 378	104 885
Claims for own account	11 233	9 265	30 200	0	0	0
Insurance provisions for own account	-3 968	20 239	94 146	0	0	0
Policyholder's share of changes in fair value of underlying items	-408	-19 837	-63 663	-408	-19 837	-63 663
Other insurance related financial cost	0	0	0	-21	-19	-84
Unit holder's value change in consolidated security funds	11 003	-17 322	-38 287	11 003	-17 322	-38 287
Net insurance services and financial result	-9	-472	-1 803	621	89	1 231
Net financial income from investments in companys portefolio	-94	-328	-2 143	0	0	0
Net costs subordinated loan and hybrid Tier 1 securities	10	-18	-69	146	-261	-451
Operating expenses	477	435	1 686	-246	-223	-808
Other income and expenses	-236	-226	-714	-67	-62	-34
Pre-tax income	149	-609	-3 043	454	-457	-61
Cost of taxes	-240	-261	-1 182	-290	-318	-1 634
Income	-92	-870	-4 226	164	-774	-1 695
Total other comprehensive income	-151	634	1 118	-151	824	1 531
Total comprehensive income	-243	-236	-3 108	13	50	-163
Lending	-22 120	-224 691	-20 449	130 821	125 769	129 927
Other assets	244 056	429 050	244 603	1 018 019	939 772	1 017 462
Total assets	221 936	204 358	224 154	1 148 840	1 065 541	1 147 389
Insurance liabilites	35 142	35 357	33 283	837 102	784 749	839 613
Other liabilities	244 385	222 344	248 295	315 029	283 882	311 080
Total liabilities	279 527	257 701	281 578	1 152 130	1 068 631	1 150 693

The KLP Group’s business is divided into the five areas: Group pensions public sector & group life, non-life insurance, banking, asset management and other. All business is directed towards customers in Norway.

PUBLIC SECTOR OCCUPATIONAL PENSION AND GROUP LIFE

Kommunal Landspensjonskasse offers group public sector occupational pensions. This segment is followed up according to NGAAP, which deviates from the IFRS Accounting Standards used in the group. Adjustments have therefore been entered in the elimination column to make the total reconcileable to the consolidated accounts.

NON-LIFE INSURANCE

KLP Skadeforsikring AS offers property and personal injury products to employers within the public and private sectors. In addition, a broad specter of standard insurance products is offered to the the retail market.

BANKING

KLP’s banking business embraces the companies KLP Banken AS and its wholly-owned subsidiaries: KLP Kommunekreditt AS and KLP Boligkreditt AS. The banking business covers services such as deposits and lending to the retail market, credit cards, as well as lending with public sector guarantee.

ASSET MANAGEMENT

Asset management is offered from the company KLP Kapitalforvaltning AS. The company offers a broad selection of securities mutual funds both to retail customers and to institutional customers. The securities management has a socially responsible profile.

OTHER

Other segments comprise KLP Forsikringsservice AS which offers a broad specter of services to local authority pension funds.

Note 3 Insurance service result

NOK MILLIONS	Q1 2025	Q1 2024	01.01.2024 -31.12.2024
Insurance income	1 579	1 234	2 788
Insurance service expenses	-1 197	-1 240	-4 230
Reinsurance income (+)/ cost (-)	-69	-106	-178
Insurance service result	312	-111	-1 620

Note 4 Investment property

NOK MILLIONS	Q1 2025	Q1 2024	01.01.2024 -31.12.2024
Net rental income	1 201	1 027	4 314
Net value adjustment	328	-998	697
Net income from investment properties	1 529	29	5 011
Translation difference foreign exchange (taken to other comprehensive income)	-158	651	1 124
Net income from investment properties translation difference foreign exchange	1 372	680	6 135

NOK MILLIONS	31.03.2025	31.03.2024	31.12.2024
Investment property 01.01.	98 889	92 322	92 322
Value adjustment, including translation difference foreign exchange	170	- 347	1 821
Net additions	1 145	3 459	4 749
Reclassification property for own use	- 1 231	0	- 5
Other changes	2	- 3	2
Book value	98 975	95 431	98 889

Note 5 Technical provisions

NOK MILLIONS	31.03.2025	31.03.2024	31.12.2024
Life insurance contracts	833 062	780 742	836 319
Non-life insurance contracts	4 039	4 007	3 294
Insurance obligations	837 102	784 749	839 613

NOK MILLIONS	Estimates of present value of future cash flows	Risk adjustment for non financial risk	Residual value	Total
Life insurance contracts 1 January 2025	411 318	29 181	395 820	836 319
Changes that realte to current services
Change in risk adjustment for non-financial risk for risk expired	0	-315	0	-315
Experience adjustment not related to future service	12	0	0	12
Insurance service result	12	-315	0	-303
Change in risk adjustment for non-financial risk at the start of the period	0	0	0	0
Accured interest	4 102	345	-4 447	0
Released cash flows	-1 563	0	0	-1 563
Changes in estimates related to future service	-363	-31	394	0
Change due to changes in discount curve	-12 421	-1 043	13 464	0
Result addes to policyholders	323	0	1 648	1 971
Insurance related financial cost	-9 922	-729	11 059	408
Premium	8 242	0	0	8 242
Claims and other insurance service expenses (incl. Investmentcomponents)	-11 605	0	0	-11 605
Total cash flows	-3 363	0	0	-3 363
Life insurance contracts 31 March 2025	398 045	28 137	406 880	833 062

NOK MILLIONS	Liability for incurred claims (LIC)		Liabilities for remaining coverage	Total
	Estimates of present value of future cash flows	Risk adjustment for non financial risk
Non-life insurance contracts 1 January 2025	2 808	121	364	3 294
Insurance income	0	0	-786	-786
Claims	563	22	0	585
Expenses	173	2	0	175
Other movements realted to current service	0	-6	0	-6
Changes that relate to past service	-30	-17	0	0
Insurance service expenses	706	2	0	707
Insurance service result	706	2	-786	-79
Insurance related financial cost	29	-3	0	26
Premium	0	0	1 550	1 550
Claims and other insurance service expenses	-705	0	0	-705
Total cash flows	-705	0	1 550	845
Other changes	1	0	-47	-46
Non-life insurance contracts 31 March 2025	2 838	120	1 081	4 039

NOK MILLIONS	Liability for incurred claims (LIC)		Liabilities for remaining coverage	Total
	Estimates of present value of future cash flows	Risk adjustment for non financial risk
Reinsurance contracts assets 1 January 2025	494	18	-3	510
Premium paid - reinsurance	0	0	-39	-39
Recoveries of incurred claims and other insurance service expenses	0	0	0	0
Reinsurance expenses -related to past service	-28	-2	0	-30
Insurance service expenses	-28	-2	0	-30
Insurance service result	-28	-2	-39	-69
Insurance related financial cost	3	1	0	4
Premium	-11	0	60	49
Total cash flows	-11	0	60	49
Other changes	-125	0	0	-125
Reinsurance contracts assets 31 March 2025	334	18	17	369

NOK MILLIONS	Life insurance contracts	Non-life insurance contracts	Reinsurance	Total
Specification of profit or loss items per product group 01.01.-31.03.2025
Insurance service result	303	79	-69	312
Net insurance related financial cost	-408	-26	4	-430

NOK MILLIONS	Estimates of present value of future cash flows	Risk adjustment for non financial risk	Residual value	Total
Life insurance contracts 1 January 2024	377 742	29 068	355 979	762 789
Changes that realte to current services
Change in risk adjustment for non-financial risk for risk expired	0	-105	0	-105
Experience adjustment not related to future service	19	0	0	19
Insurance service result	19	-105	0	-85
Change in risk adjustment for non-financial risk at the start of the period	0	-924	924	0
Accured interest	3 983	335	-4 318	0
Released cash flows	-123	0	0	-123
Changes in estimates related to future service	-7 358	-618	7 976	0
Change due to changes in discount curve	-6 675	-561	7 236	0
Result addes to policyholders' residual value	213	0	19 747	19 960
Insurance related financial cost	-9 960	-1 768	31 565	19 837
Premium	7 551	0	0	7 551
Claims and other insurance service expenses (incl. Investmentcomponents)	-9 350	0	0	-9 350
Total cash flows	-1 799	0	0	-1 799
Life insurance contracts 31 March 2024	366 002	27 195	387 545	780 742

NOK MILLIONS	Liability for incurred claims (LIC)		Liabilities for remaining coverage	Total
	Estimates of present value of future cash flows	Risk adjustment for non financial risk
Non-life insurance contracts 1 January 2024	2 944	128	320	3 392
Insurance income	0	0	-707	-707
Claims	699	27	0	726
Expenses	156	2	0	158
Other movements realted to current service	0	-6	0	-6
Changes that relate to past service	-59	-21	0	-80
Insurance service expenses	796	2	0	798
Insurance service result	796	2	-707	90
Insurance related financial cost	29	-7	0	23
Premium	0	0	1 354	1 354
Claims and other insurance service expenses	-786	0	0	-786
Total cash flows	-786	0	1 354	568
Other changes	2	0	-68	-65
Non-life insurance contracts 31 March 2024	2 986	123	898	4 007

NOK MILLIONS	Liability for incurred claims (LIC)		Liabilities for remaining coverage	Total
	Estimates of present value of future cash flows	Risk adjustment for non financial risk
Reinsurance contracts assets 1 January 2024	699	39	-10	728
Premium paid - reinsurance	0	0	-34	-34
Recoveries of incurred claims and other insurance service expenses	0	0	0	0
Reinsurance expenses -related to past service	-61	-10	0	-72
Insurance service expenses	-61	-10	0	-72
Insurance service result	-61	-10	-34	-106
Insurance related financial cost	5	-1	0	4
Premium	-131	0	80	-51
Total cash flows	-131	0	80	-51
Other changes	105	0	0	105
Reinsurance contracts assets 31 March 2024	617	27	35	680

NOK MILLIONS	Insurance obligation with the right to residual value	Other insurance liabilities	Reinsurance	Total
Specification of profit or loss items per product group 01.01-31.03.2024
Insurance service result	85	-90	-106	-111
Insurance related financial cost	-19 837	-23	4	-19 856

NOK MILLIONS	Estimates of present value of future cash flows	Risk adjustment for non financial risk	Residual value	Total
Life insurance contracts 1 January 2024	377 742	29 068	355 979	762 789
Changes that realte to current services
Change in risk adjustment for non-financial risk for risk expired	0	1 782	0	1 782
Experience adjustment not related to future service	-73	0	0	-73
Insurance service result	-73	1 782	0	1 708
Change in risk adjustment for non-financial risk at the start of the period	0	-924	924	0
Accured interest	16 492	1 386	-17 878	0
Released cash flows	-4 983	0	0	-4 983
Changes in estimates related to future service	3 076	258	-3 335	0
Change due to changes in discount curve	-28 425	-2 388	30 813	0
Result addes to policyholders' residual value	39 330	0	29 316	68 645
Insurance related financial cost	25 490	-1 668	39 841	63 663
Premium	38 869	0	0	38 869
Claims and other insurance service expenses (incl. Investmentcomponents)	-30 710	0	0	-30 710
Total cash flows	8 159	0	0	8 159
Life insurance contracts 31 December 2024	411 318	29 181	395 820	836 319

NOK MILLIONS	Liability for incurred claims (LIC)		Liabilities for remaining coverage	Total
	Estimates of present value of future cash flows	Risk adjustment for non financial risk
Non-life insurance contracts 1 January 2024	2 944	128	320	3 392
Insurance income	0	0	-2 758	-2 758
Claims	2 098	84	0	2 182
Expenses	535	7	0	541
Other movements realted to current service	0	-45	0	-45
Changes that relate to past service	-136	-51	0	-187
Insurance service expenses	2 497	-5	0	2 492
Insurance service result	2 497	-5	-2 758	-266
Insurance related financial cost	103	-1	0	101
Premium	0	0	2 777	2 777
Claims and other insurance service expenses	-2 741	0	0	-2 741
Total cash flows	-2 741	0	2 777	36
Other changes	5	0	26	32
Non-life insurance contracts 31 December 2024	2 808	121	364	3 294

NOK MILLIONS	Liability for incurred claims (LIC)		Liabilities for remaining coverage	Total
	Estimates of present value of future cash flows	Risk adjustment for non financial risk
Reinsurance contracts assets 1 January 2024	699	39	-10	728
Premium paid - reinsurance	0	0	-136	-136
Recoveries of incurred claims and other insurance service expenses	0	0	0	0
Reinsurance expenses -related to past service	-23	-19	0	-42
Insurance service expenses	-23	-19	0	-42
Insurance service result	-23	-19	-136	-178
Insurance related financial cost	19	-1	0	17
Premium	-342	0	143	-199
Total cash flows	-342	0	143	-199
Other changes	141	0	0	141
Reinsurance contracts assets 31 December 2024	494	18	-3	510

NOK MILLIONS	Life insurance contracts	Non-life insurance contracts	Reinsurance	Total
Specification of profit or loss items per product group 01.01. - 31.12.2024
Insurance service result	-1 708	266	-178	-1 620
Insurance related financial cost	-63 663	-101	17	-63 747

IMPORTANT ASSUMPTIONS

Discount curve for IFRS 17

Expected cash flows from the insurance contracts will mature at various times in the future. The future cash flows are therefore discounted to the value on the balance sheet date with an interest rate curve that is determined on the balance sheet date. The discount curve for IFRS 17 is generally determined according to the same principles as the curve EIOPA calculates for Solvency II purposes. The main difference is that EIOPA's estimate for volatility adjustment is replaced with an estimate for the illiquidity spread in the bond market, and this is calibrated to the illiquidity degree of the KLP's obligation. Selected values of discounting curves for IFRS 17 are listed below:

Year	31.03.2025	31.03.2024	31.12.2024
1	5,0 %	5,1 %	4,8 %
2	4,9 %	4,9 %	4,7 %
3	4,7 %	4,8 %	4,6 %
4	4,5 %	4,6 %	4,6 %
5	4,4 %	4,5 %	4,5 %
10	4,4 %	4,2 %	4,4 %
15	4,4 %	4,1 %	4,3 %
25	4,2 %	3,9 %	4,1 %
50	3,9 %	3,8 %	3,8 %
75	3,8 %	3,7 %	3,7 %
100	3,7 %	3,6 %	3,7 %

Salary growth curve

Future cash flows within the contract boundary are calculated with assumptions about annual future salary growth/regulation as stated in the table below. The salary growth curve is projected by the NAM model (Norwegian aggregate model), which makes a macro projection of key economic figures (salary growth, inflation, etc.) year by year.

Year	31.03.2025	31.03.2024	31.12.2024
1	4,6 %	4,8 %	4,6 %
5	4,3 %	4,4 %	4,3 %
10	3,7 %	3,1 %	3,7 %
15	3,3 %	3,1 %	3,3 %
25	3,5 %	3,5 %	3,5 %
50	3,5 %	3,4 %	3,5 %
80	3,5 %	3,4 %	3,5 %

SENSITIVITY IFRS 17

The table below shows the consequence for the group's residual value of a change in the standard assumptions used in the best estimate. Sensitivity related to costs is also included in the overview. The residual value consists of the part of the insurance liability that is not included in the best estimate or the risk adjustment.

NOK MILLIONER	Change	31.03.2025	31.03.2024	31.12.2024
Reduced mortality	-5 %	-4 507	-4 356	-4 674
Increased mortality	5 %	4 317	4 172	4 477
Increased disability	5 %	-400	-387	-414
Reduced disability	-5 %	402	389	418
Increased costs	5 %	-1 299	-1 256	-1 347
Reduced costs	-5 %	1 299	1 255	1 348
Increased yield curve	*)	33 759	33 594	35 002
Reduced yield curve	**)	-37 797	-42 074	-40 015
All changes to assumptions are in % change of the standard assumption applied as of 31.03.2025 (31.03.2024/31.12.2024).
*) Increased interest rate curve by 50 basis points for the liquid part of the discount rate curve, 1:10 years. Then extrapolated to an estimate for long-term interest based on the sum of long-term real GDP growth and Norges Bank's inflation target.
**) Reduced by 50 basis points for the liquid part of the discount rate curve, 1:10 years. Then extrapolated to an estimate for long-term interest based on the sum of long-term real GDP growth and Norges Bank's inflation target.

Note 6 Subordinated loans and perpetual hybrid tier 1 securities

NOK MILLIONS	Q1 2025	Q1 2024	01.01.2024 -31.12.2024
SUBORDINATED LOANS
Interest costs	-32	-40	-146
Value changes	123	-166	-229
Net costs subordinated loans	90	-206	-375
PERPETUAL HYBRID TIER 1 SECURITIES
Interest costs	-19	-20	-80
Value changes	75	-36	5
Net costs perpetual hybrid tier 1 securities	56	-56	-75
Net costs subordinated loan and hybrid Tier 1 securities	146	-261	-451

This note gives a specification of the line "Net costs subordinated loan and hybrid Tier 1 securities" in the income statement. The fluctuations in value change are predominantly due to the loans being denominated in foreign currency. The subordinated loan is issued in euros and the perpetual hybrid Tier 1 security are issued in Japanese yen.

Note 7 Fair value of financial assets and liabilites

Fair value is to be a representative price based on what the equivalent assets or liabilites would be sold for under normal market terms and conditions. A financial instrument is considered as being listed in an active market if listed prices are easily and regularly accessible from a stock exchange, dealer, broker, commercial group, pricing service or regulatory authority, and such prices represent actual transactions that occur regularly at arm’s length. If the market for the security is not active, or the security is not listed on a stock exchange or similar, the Group uses valuation techniques to determine fair value. These are based on information on transactions recently carried out on business conditions, reference to the purchase and sale of similar instruments and pricing by means of externally obtained interest-rate curves and interest-rate differential curves. Estimates are based to the greatest possible extent on external observable market data, and to a small degree on company-specific information.

In the case of this note, there are three different categories of financial instruments: balance sheet classification, accounts classification, and type of instrument. It is for this last category that information is provided about how fair value is derived.

FINANCIAL INSTRUMENTS MEASURED AT AMORTISED COST

This category includes:

Fixed-income securities and other debt instruments measured at amortised cost
Lending to local government, enterprises & retail customers measured at amortised cost
Liabilites to and deposits from customers
Other debt issued (liabilities)

Financial instruments not measured at fair value are measured at amortised cost by using the effective interest rate method. The internal rate of exchange is determined by discounting contractual cash flows over their expected term. The cash flows include arrangement/up-front fees and direct transaction costs as well as any residual value on the expiry of the expected term. Amortised cost is the present value of these cash flows discounted by the internal rate of interest. This note contains information about the fair value of the financial instruments that are measured at amortised cost.

FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE

This category includes:

Equity instruments
Fixed-income securities and other debt instruments measured at fair value
Lending local government, enterprises & retail customers at fair value through profit/loss
Derivatives (assets and liabilites)
Debt to credit institutions (liabilites)
Subordinated loan capital (liabilities)

Below is a list of which types of financial instrument come under the various accounts categories, and how fair value is calculated.

FIXED-INCOME SECURITIES AND OTHER DEBT INSTRUMENTS MEASURED AT FAIR VALUE

a) Foreign fixed-income securities

Foreign fixed-income securities are generally priced based on prices obtained from an index provider. At the same time, prices are compared between several different sources to spot any errors.

The following sources are used:

Bloomberg Barcalys Indicies
Bloomberg

Barclays Capital Indices have first priority (they cover foreign government and foreign credit respecitvely). Then comes Bloomberg based on Bloomberg’s pricing service Business Valuator Accredited in Litigation (BVAL). BVAL has verified prices from Bloomberg.

b) Norwegian fixed-income securities – government

Nordic Bond Pricing is used as the primary source for pricing Norwegian Government Bonds.

c) Norwegian fixed-income securities – other than government ones

Norwegian fixed-income securities – other than government ones Norwegian fixed-income securities (denominated in NOK) are generally priced based on rates from Nordic Bond Pricing. Securities not covered by Nordic Bond Pricing are priced theoretically. The theoretical price should be based on the discounted value of the security's future cash flows. Discounting is performed using a swap curve adjusted for credit spread and liquidity spread. The credit spread should, to the extent possible, be based on a comparable bond from the same issuer. The liquidity spread is determined at the discretion of the evaluator.

d) Fixed-income securities issued by foreign enterprises but denominated in NOK

Fair value is calculated on the same general principles as those applied on Norwegian fixed-income securities described above.

e) Receivables on credit institutions

The fair value of these are considered as being approximately the same as the book value since the terms and conditions of the contract are continually revised in accordance with changes in the market rates.

f) Loans to municipalities and enterprises with municipal guarantee

Receivables are valued by means of a valuation model using relevant credit premium adjustments obtained in the market. For guaranteed loans fair value is calculated as discounted cash flow based on the same interest-rate curves as direct loans, but the credit margin is adjusted to market values for the appropriate combination of guarantee category and type of guarantee. The guarantor is either a state, municipality or a bank.

g) Loans secured by mortgage

The principles for calculating fair value are subject to the loans having fixed-interest rates or not. Fair value of fixed-rate loans is calculated by discounting contractual cash flows by the market rate including a relevant risk margin on the reporting date. The fair value of loans with no fixed rate is approximately equal to book value since the terms and conditions of the contract are continually revised in accordance with changes in the market rates.

EQUITY INSTRUMENTS

h) Shares (listed)

Liquid shares are generally valued on the basis of prices from an index provider. At the same time, prices are compared between different sources in order to spot any errors.

The following sources are used for Norwegian shares:

Oslo Børs/Oslo Stock Exchange (primary source)
Morgan Stanley Capital International (MSCI)
Bloomberg

The following sources are used for foreign shares:

Morgan Stanley Capital International (MSCI) (primary source)
Bloomberg

i) Shares (unlisted)

As far as possible, The Group uses the Norwegian Mutual Funds Association’s industry recommendations. This basically means the following:

This means that the last traded price is used as long as it is considered representative. If the price information is deemed outdated, a derived valuation is performed in relation to a relevant proxy (such as a stock index or one or more companies). If this is not possible, a discretionary assessment is made, which may be based on fundamental analysis, broker evaluations, or risk and liquidity adjustments to the price.

j) Private Equity

Most of the investment in Private Equity goes through funds. The funds’ fair value is to be based on reported market values that follow from the International Private Equity and Venture Capital Valuation Guidelines (’IPEV Guidelines). These guidelines are established by the European Venture Capital Association (EVCA) and are based on the principle of approximate market assessment of the companies. Fair value is calculated on the basis of the funds’ reported market value adjusted for payments in and out during the period between the fund’s last reported market value and the period being reported on for the Group. Direct investments in Private Equity are treated in the same way as with current stocks, but valuation can be daily, quarterly or yearly. In cases where it's possible to obtain information on what co-investments are priced within the funds, it will be considered in the valuation process. Other direct investments are valued based on either cost prices, reported market values from companies or available trading prices.

DERIVATIVES

k) Futures/FRA/IRF

All futures contracts for KLP are traded on the stock exchange. Bloomberg is used as a price source. Prices are also obtained from another source in order to check that Bloombergs’ prices are correct. Reuters acts as a secondary source.

l) Options

Bloomberg is used as a source for pricing options traded on the stockmarket. Reuters is a secondary source.

m) Interest-rate swaps

Interest-rate swaps are valued in a model that takes observable market data such as interest-rate curves and relevant credit premiums into account.

n) FX-swaps

FX-swaps with a one-year maturity or less are priced on curves that are built up from FX swap-points obtained from Reuters. The market is not considered particularly liquid for FX-swaps with a maturity of more than one year and basis-adjusted swap curves are used for pricing purposes.

DEBT TO CREDIT INSTITUTIONS

o) Placements with credit institutions and deposits

Placements with credit institutions are made as short-term deposits. Fair value is calculated by discounting contractual cash flows by market rate including a relevant risk margin on the reporting date. Deposits are prices on swap curves.

SUBORDINATED LOAN CAPITAL, OTHER DEBT ISSUED, AND DEPOSITS FROM CUSTOMERS

p) Fair value of subordinated loans

The observable price is used as the fair value of loans listed on an active stock exchange. In the case of other loans that are not part of an active market the fair value is based on an internal valuation model based on observable data.

q) Fair value of subordinated bond/perpetual bond issued

Fair value in this category is determined on the basis of internal valuation models based on external observable data.

r) Covered bonds issued

Fair value in this category is determined on the basis of internal valuation models based on observable data.

s) Deposits from customers

All deposits are without fixed-rate interest. The fair value of these is considered as approximately equal to book value since the contractual terms are continually revised in accordance with the market rate.

The tables below give a more detailed specification of the content of the different classes of assets and financial liabilities.

NOK MILLIONS	31.03.2025		31.03.2024		31.12.2024
	Book value	Fair value	Book value	Fair value	Book value	Fair value
FIXED-INCOME SECURITIES AND OTHER DEBT INSTRUMENTS AT AMORTISED COST
Norwegian bonds	1 140	1 092	983	941	1 102	1 052
Foreign bonds	1 210	1 146	1 271	1 192	1 232	1 166
Fixed-income securities and other debt instruments at amortised cost	2 351	2 238	2 253	2 134	2 334	2 219
LENDING LOCAL GOVERNMENT, ENTERPRISES & RETAIL CUSTOMERS AT FAIR VALUE THROUGH PROFIT/LOSS
Loans secured by mortgage	3 205	3 205	2 525	2 525	3 197	3 197
Loans to local government sector or enterprises with local government guarantee	76 105	76 105	74 253	74 253	76 844	76 844
Loans abroad secured by mortage and local government guarantee	6 069	6 069	5 491	5 491	6 311	6 311
Other lending	1 721	1 721	664	664	740	740
Total loans to local government, enterprises & retail customers at fair value	87 100	87 100	82 932	82 932	87 092	87 092
LENDING TO LOCAL GOVERNMENT, ENTERPRISES & RETAIL CUSTOMERS – AT AMORTISED COST
Loans to and receivables from customers	43 721	43 733	42 837	42 837	42 836	42 836
Total loans to local government, enterprises & retail customers at amortised cost	43 721	43 733	42 837	42 837	42 836	42 836
FIXED-INCOME SECURITIES AT FAIR VALUE
Norwegian bonds	143 475	143 475	127 108	127 108	137 843	137 843
Norwegian certificates	17 834	17 834	12 805	12 805	12 361	12 361
Foreign bonds	208 622	208 622	215 067	215 067	215 443	215 443
Foreign certificates	771	771	707	707	0	0
Investments with credit institutions	55 423	55 423	50 354	50 354	53 431	53 431
Fixed income securitites at fair value	426 125	426 125	406 041	406 041	419 077	419 077
EQUITY CAPITAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
Shares	388 593	388 593	350 855	350 855	410 894	410 894
Equity funds	52 094	52 094	47 846	47 846	53 887	53 887
Property funds	8 879	8 879	7 756	7 756	8 040	8 040
Total equity capital instruments at fair value	455 021	455 021	406 457	406 457	477 165	477 165
RECEIVABLES
Receivables related to direct business	1 326	1 326	869	869	1 383	1 383
Receivables related to reinsurance agreements	0	0	0	0	0	0
Reinsurance share of gross claims reserve	0	0	0	0	0	0
Receivables related to securites	5 298	5 298	13 560	13 560	1 797	1 797
Prepaid rent related to real estate activites	330	330	148	148	348	348
Other receivables	70	70	337	337	7	7
Total other loans and receivables including receivables from policyholders	7 024	7 024	14 914	14 914	3 534	3 534
FINANCIAL LIABILITIES
Debt to credit institutions	12 257	12 257	2 828	2 828	1 395	1 395
Covered bonds issued	31 478	31 557	30 448	30 516	31 529	31 529
Liabilities and deposits from customers	16 757	16 757	14 157	14 157	15 801	15 801
Hybrid Tier 1 securities	1 373	1 373	1 489	1 489	1 429	1 429
Subordinated loan capital	3 470	3 470	3 533	3 533	3 560	3 560
Total financial liabilities	65 335	65 414	52 456	52 523	53 713	53 713

NOK MILLIONS	31.03.2025		31.03.2024		31.12.2024
	Assets	Liabilities	Assets	Liabilities	Assets	Liabilities
FINANCIAL DERIVATIVES - AT FAIR VALUE THROUGH PROFIT OR LOSS
Forward exchange contracts	10 813	502	377	6 044	781	7 070
Interest rate swaps	1 494	2 520	405	3 298	243	4 235
Interest rate and currency swaps	644	0	498	0	445	0
Total financial derivatives	12 951	3 021	1 280	9 342	1 469	11 304

Note 8 Borrowing

NOK MILLIONS	Nominal in NOK	Currency	Interest	Due date	Book value 31.03.2025	Book value 31.03.2024	Book value 31.12.2024
FIXED - TERM SUBORDINATED LOAN
Kommunal Landspensjonskasse	2 530	EUR	Fixed ¹	2045	3 470	3 533	3 560
Total subordinated loan capital	2 530				3 470	3 533	3 560
HYBRID TIER 1 SECURITIES
Kommunal Landspensjonskasse	984	JPY	Fixed ²	2034	1 373	1 489	1 429
Total hybrid Tier 1 securities	984				1 373	1 489	1 429
COVERED BONDS
KLP Kommunekreditt AS	0	NOK	Floating	2024	0	1 350	0
KLP Kommunekreditt AS	1 886	NOK	Floating	2025	1 891	5 015	1 892
KLP Kommunekreditt AS	5 000	NOK	Floating	2026	5 051	5 053	5 053
KLP Kommunekreditt AS	1 000	NOK	Fixed	2027	1 021	1 021	1 012
KLP Kommunekreditt AS	6 000	NOK	Floating	2027	6 048	6 049	6 050
KLP Kommunekreditt AS	6 250	NOK	Floating	2028	6 303	0	6 306
KLP Kommunekreditt AS	700	NOK	Fixed	2029	714	714	706
KLP Boligkreditt AS	0	NOK	Floating	2024	0	729	0
KLP Boligkreditt AS	430	NOK	Floating	2025	430	2 502	2 501
KLP Boligkreditt AS	4 500	NOK	Floating	2026	4 533	4 534	4 535
KLP Boligkreditt AS	2 500	NOK	Floating	2027	2 514	2 516	2 516
KLP Boligkreditt AS	3 000	NOK	Floating	2028	3 008	1 003	1 003
Other					-35	-35	-45
Total covered bonds	31 266				31 478	30 448	31 529
DEBT TO CREDIT INSTITUTIONS
KLP Banken AS	0	NOK	Floating	2024	0	151	0
KLP Banken AS	300	NOK	Floating	2025	301	301	301
KLP Banken AS	150	NOK	Floating	2026	151	151	151
KLP Banken AS	350	NOK	Floating	2027	353	202	353
KLP Fond	607	NOK/EUR/USD	Fixed	2025	607	1 087	0
KLP Fond	0	NOK/EUR/USD	Floating	2025	3 994	291	30
Kommunal Landspensjonskasse	0	NOK/EUR/USD	Floating	2025	6 798	566	512
Other					54	79	47
Total liabilities to credit institutions	1 407				12 257	2 828	1 395
LIABILITIES AND DEPOSITS FROM CUSTOMERS ³
KLP Banken AS	16 757	NOK			16 757	14 157	15 801
Liabilities to and deposits from customers	16 757				16 757	14 157	15 801
Total financial liabilities	52 943				65 335	52 456	53 713
^{1 The loan has an interest change date in 2025.}
^{2 The loan has an interest change date in 2034.}
^{3 There is no contractual maturity date on deposits.}

This note shows the financial liabilities that the Group had at the end of the reporting period, where the majority is funding for KLP Bank Group. The companies listed above are the issuers of the financial debt. Deposits belongs to KLP Banken AS.

Note 9 Fair value hierarchy

NOK MILLIONS	Level 1	Level 2	Level 3	31.03.2025	31.03.2024	31.12.2024
ASSETS BOOKED AT FAIR VALUE
Land/plots	0	0	1 283	1 283	1 283	1 283
Buildings	0	0	97 692	97 692	94 149	97 606
Investment property	0	0	98 975	98 975	95 431	98 889
Lending at fair value	0	87 100	0	87 100	82 932	87 092
Certificates	5 701	12 904	0	18 605	13 512	12 361
Bonds	19 787	332 293	0	352 080	342 272	353 274
Fixed-income funds	0	9 224	17 186	26 410	28 173	26 782
Loans and receivables	28 237	793	0	29 030	22 083	26 661
Bonds and other fixed-income securities	53 724	355 214	17 186	426 125	406 041	419 077
Shares	376 832	5 614	6 148	388 593		410 894
Equity funds	2 833	0	37	2 869	350 855	2 952
Property funds	0	2 564	6 316	8 879	2 667	8 040
Special funds	0	3 737	1 717	5 454	7 756	4 345
Private Equity	0	0	49 225	49 225		50 936
Shares and units	379 664	11 915	63 443	455 021	45 178	477 165
Financial derivatives	0	12 951	0	12 951	406 457	1 469
Total assets at fair value	433 389	467 180	179 604	1 080 172	992 141	1 083 691
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives	0	3 021	0	3 021	9 342	11 304
Debt to credit institutions ¹	10 845	607	0	11 452	2 023	590
Subordinated loan capital	0	3 470	0	3 470	3 533	3 560
Hybrid Tier 1 securities	0	1 373	0	1 373	1 489	1 429
Total financial liabilities at fair value	10 845	8 471	0	19 316	16 387	16 884
¹ The line «Debt to credit institutions» includes liabilities measured at fair value and amortized cost. This line is therefore not reconcilable against the Balance sheet. The liabilities measured at amortized cost amounted to NOK 805 million per 31.03.2025.

Changes in level 3, financial assets and investment property	Financial assets	Investment property	Total
Opening balance 1 January	81 522	98 889	180 410
Sold	-1 605	-42	-1 647
Bought	2 028	1 187	3 216
Unrealised changes	-2 340	170	-2 170
Other changes	1 024	-1 229	-205
Closing balance	80 629	98 975	179 604
Realised gains/losses	638	0	638

Unrealised changes and realized gains/losses are reflected on the line "Net value changes on financial instruments" in the consolidated income statement.

The table "Changes in level 3" shows changes in level 3 classified instruments in the period indicated.

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 easily 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 corresponding therefore not considered to be traded in an active market, as well as prices based on 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 Group include unlisted shares and Private Equity.

Valuations related to items in the various levels are described in Note 7. For description of the pricing of investment property, please see the last published annual financial statements. All Investment properties are included in level 3.

For level 3 securities, a change in MSCI Europe index of +/- 10 percent will result in a change in value of +/- NOK 996 million for shares and funds units, +/- NOK 7 383 million in private equity and +/- NOK 687 million in fixed-income funds.

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 1 075 million in stocks moved from Level 1 to Level 2, and NOK 59 million moved from level 1 to level 3. In addition NOK 2 313 million in stocks moved from level 2 to level 1, and NOK 43 million from level 3 to level 1. The movements are due to changes in liquidity. For the category Bonds and other fixed-income securities, NOK 123 million moved from level 2 to level 1 due to changes in classification of bonds.

Note 10 Presentation of assets and liabilities that are subject to net settlement

ASSETS
31.03.2025 NOK MILLIONS		Related amounts not presented net
	Gross financial assets/ liabilities	Financial instruments	Security in cash	Security in securities	Net amount	Adjusted for the unit holders' interest in consolidated securities funds
Financial derivatives	12 951	-1 435	-10 748	-5 817	143	143
Repos	1 993	0	0	0	1 993	1 993
Total	14 945	-1 435	-10 748	-5 817	2 136	2 136
LIABILITIES
Financial derivatives	3 021	-1 435	-48	-2	1 586	1 586
Repos	607	0	0	0	607	607
Total	3 629	-1 435	-48	-2	2 194	2 194

ASSETS
31.03.2024 NOK MILLIONS		Related amounts not presented net
	Gross financial assets/ liabilities	Financial instruments	Security in cash	Security in securities	Net amount	Adjusted for the unit holders' interest in consolidated securities funds
Financial derivatives	1 280	-682	-693	-2 708	72	72
Repos	2 264	0	0	0	2 265	2 265
Total	3 544	-682	-693	-2 708	2 336	2 336
LIABILITIES
Financial derivatives	9 342	-682	-738	-3 798	4 124	3 511
Repos	1 541	0	0	0	1 541	1 541
Total	10 429	-682	-738	-3 798	5 212	4 595

ASSETS
31.12.2024 NOK MILLIONS		Related amounts not presented net
	Gross financial assets/ liabilities	Financial instruments	Security in cash	Security in securities	Net amount	Adjusted for the unit holders' interest in consolidated securities funds
Financial derivatives	1 469	-1 431	-483	-2 483	37	37
Repos	6 896	0	0	0	6 896	6 896
Total	8 365	-1 431	-483	-2 483	6 934	6 934
LIABILITIES
Financial derivatives	11 304	-1 431	-1 673	-6 420	3 267	3 288
Repos	0	0	0	0	0	0
Total	11 304	-1 431	-1 673	-6 420	3 267	3 288

The purpose of the note is to show the potential effect of netting agreements at the KLP Group; what possibilities the KLP Group 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 and repo agreements in the financial position statement. Repos are a part of the line "Debt to credit institutions" in the balance sheet.

The consolidated figures include all entities the KLP Group is considered to have control over. In addition, the outer line shows which de facto net amount remains if all the Groups netting agreements are set off; which only includes subsidiaries and entities, where the Group carries the risk.

Note 11 Capital adequacy

The Solvency II balance sheet includes assets and liabilities at fair value. 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 own funds appear from the Solvency II balance sheet and hybrid tier 1 securities. In the calculation of eligible own funds hybrid tier 1 securities are limited to a maximum of 20 percent of total eligible tier 1 own funds. Any excess exposure is eligible as tier 2 own funds. Tier 2 own funds otherwise consist of subordinated debt, the risk equalization fund, the natural perils fund 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 percent of the Company’s premium reserve. Any net deferred tax asset will be considered tier 3 own funds.

In the calculation of eligible own funds to cover the solvency capital requirement, eligible tier 1 own funds shall be at least 50 percent of the solvency capital requirement, eligible tier 3 own funds shall be less than 15 percent of the solvency capital requirement, and the sum of eligible tier 2 and tier 3 own funds shall not exceed 50 percent of the solvency capital requirement before capital requirement contributions from other financial sectors (KLP Banken and KLP Kapitalforvaltning). In the calculation of eligible own funds to cover the minimum consolidated group capital requirement, eligible tier 1 own funds shall be at least 80 percent of the minimum requirement, and eligible tier 2 own funds shall not exceed 20 percent of the minimum requirement. Own funds from other financial sectors (KLP Banken and KLP Kapitalforvaltning), tier 3 own funds and ancillary own funds are not eligible to cover the minimum requirement.

Without the use of the transitional measure on technical provisions the Company’s SCR ratio is 290 percent, which is well over the Company’s target of at least 150 percent. With the transitional measure on technical provisions the SCR ratio is 290 percent.

NOK MILLIONS	31.03.2025	31.03.2024	31.12.2024
ELIGIBLE OWN FUNDS
Assets	855 863	794 670	853 502
Liabilities	-807 967	-749 868	-805 295
Excess of assets over liabilities	47 896	44 802	48 207
- Risk equalization fund	-4 188	-3 864	-4 188
+ Hybrid tier 1 securities	1 373	1 489	1 429
Adjustment for other financial sector own funds	-169	-246	-98
Tier 1 basic own funds	44 913	42 181	45 350
Sum tier 1 own funds	44 913	42 181	45 350
Subordinated debt	3 449	3 461	3 514
Risk equalization fund and natural perils fund	4 188	3 864	4 188
Tier 2 basic own funds	7 637	7 325	7 702
Ancillary own funds	15 387	14 373	15 396
Tier 2 ancillary own funds	15 387	14 373	15 396
Sum tier 2 own funds	23 023	21 698	23 098
Deferred tax asset	0	0	0
Tier 3 basic own funds	0	0	0
Sum tier 3 own funds	0	0	0
Eligible own funds to cover the solvency capital requirement - tier 1	44 913	42 181	45 350
Eligible own funds to cover the solvency capital requirement - tier 2	7 554	7 237	7 394
Eligible own funds to cover the solvency capital requirement - tier 3	0	0	0
A Eligible own funds to cover the solvency capital requirement	52 467	49 418	52 744
Eligible own funds to cover the minimum requirement - tier 1	41 155	38 678	41 516
Eligible own funds to cover the minimum requirement - tier 2	861	803	838
B Eligible own funds to cover the minimum consolidated group capital requirement	42 016	39 482	42 354
CAPITAL REQUIREMENT
Market risk	176 936	169 108	176 709
Counterparty risk	3 328	3 049	3 058
Life risk	141 362	119 344	140 142
Non-life risk	687	709	695
Health risk	495	448	471
Diversification	-68 880	-61 339	-68 328
Operational risk	3 577	3 344	3 576
Loss absorbing capacity of technical provisions	-240 600	-218 679	-239 819
Loss absorbing capacity deferred tax	-1 798	-1 581	-1 716
Capital requirement for other financial sectors	2 979	2 829	2 921
C Solvency capital requirement	18 087	17 233	17 710
Minimum capital requirement, KLP	3 759	3 533	3 670
Minimum capital requirement, KLP Skadeforsikring	545	484	522
D Minimum consolidated group capital requirement	4 304	4 017	4 192
CAPITAL ADEQUACY
SCR ratio (A/C)	290 %	288 %	298 %
MCR ratio (B/D)	976 %	983 %	1010 %

Note 12 Pension obligations

NOK MILLIONS	31.03.2025	31.03.2024	31.12.2024
Capitalized net liability 01.01.	543	913	913
Capitalized pension costs	56	55	234
Capitalized financial costs	7	8	34
Actuarial gains and losses	0	-199	-442
Premiums / contributions received	-40	-32	-195
Capitalized net liability	566	744	543

Assumptions	31.03.2025	31.03.2024	31.12.2024
Discount rate	3.95 %	3.45 %	3.90 %
Salary growth	4.00 %	3.50 %	4.00 %
The National Insurance basic amount (G)	3.75 %	3.25 %	3.75 %
Pension increases	3.00 %	2.80 %	3.00 %
Social security contribution rate	14.10 %	14.10 %	14.10 %
Capital activity tax	5.00 %	5.00 %	5.00 %

Note 13 Other current liabilities

NOK MILLIONS	31.03.2025	31.03.2024	31.12.2024
Short-term payables trade in securities	8 946	14 406	2 019
Incurred not assessed taxes	1 116	289	1 206
Accounts payable	276	353	274
Public fees	779	770	829
Other current liabilities	1 329	1 427	1 100
Total other current liabilities	12 446	17 245	5 427

Key figures – Accumulated

NOK MILLIONS	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023
KLP GROUP
Total assets	1 148 840	1 147 389	1 128 114	1 079 281	1 065 541	1 016 721	972 345	956 311
Equity	-3 291	-3 303	-2 594	-2 556	-3 090	-3 140	-3 555	-3 684
Solvency SCR ratio	290 %	298 %	289 %	283 %	288 %	285 %	332 %	297 %
Number of employees in the Group	1 189	1 169	1 168	1 168	1 153	1 133	1 120	1 099
KOMMUNAL LANDSPENSJONSKASSE
Profit before tax	205	2 169	1 663	926	183	-20	1 136	774
Premium income for own account	8 110	60 883	51 795	37 257	7 842	70 326	60 032	51 102
- of which inflow of premium reserve	40	1	1	1	0	92	91	91
Insurance customers' funds incl. acc. profit	11 233	30 200	23 024	16 132	9 265	28 261	21 501	14 840
- of which funds with guaranteed returns	4 289	2 423	2 423	2 419	2 456	2 139	2 125	2 121
Net investment common portfolio	805 349	803 441	790 200	761 757	751 512	734 337	718 214	701 944
Net investment choice portfolio	3 105	3 135	3 063	3 064	2 953	2 830	2 730	2 833
Insurance funds incl. earnings for the year	797 920	803 036	788 668	778 458	745 385	725 781	704 815	715 239
- of which funds with guaranteed interest	678 596	679 801	638 919	642 860	617 219	616 315	586 941	592 053
Solvency capital requirement (SCR)	53 359	52 962	52 772	50 482	49 575	49 517	49 918	47 624
Solvency SCR ratio	355 %	361 %	351 %	344 %	351 %	346 %	368 %	329 %
Riskprofit	168	790	420	81	82	648	364	270
Return profits	-4 094	51 090	40 471	26 553	18 729	29 466	15 822	21 243
Administration profit	-27	77	129	65	-8	144	176	62
Solvency capital	159 022	162 859	193 589	167 161	155 824	164 487	147 893	151 993
Value-adjusted return on common portfolio	0,0 %	9,0 %	7,0 %	4,6 %	3,0 %	6,4 %	3,9 %	4,2 %
Return on unit-linked portfolio	-0,8 %	10,8 %	8,6 %	5,8 %	4,0 %	8,3 %	4,8 %	5,6 %
Return on corporate portfolio	0,6 %	4,8 %	3,4 %	1,9 %	0,5 %	3,0 %	2,1 %	1,5 %
KLP SKADEFORSIKRING AS
Profit before tax	32	386	196	64	-118	273	255	189
Insurance income	786	2 758	2 053	1 365	707	2 505	1 863	1 230
Owners' equity	2 979	2 955	2 760	2 669	2 523	2 594	2 589	2 543
Claims ratio, gross	74,8 %	77,3 %	79,2 %	81,4 %	98,2 %	83,5 %	78,9 %	82,6 %
Net reinsurance ratio	8,8 %	6,4 %	8,3 %	9,7 %	15,0 %	2,8 %	4,7 %	5,0 %
Claims ratio, net of reinsurance	83,6 %	83,8 %	87,6 %	91,2 %	113,1 %	86,3 %	83,6 %	87,6 %
Cost ratio	15,1 %	13,0 %	13,6 %	13,6 %	14,6 %	14,0 %	13,0 %	13,9 %
Combined ratio	98,7 %	96,8 %	101,1 %	104,8 %	127,7 %	100,4 %	96,6 %	101,5 %
Return on assets under management	0,7 %	6,2 %	5,0 %	2,9 %	1,7 %	5,5 %	3,3 %	3,6 %
Solvency capital requirement (SCR)		2 969	2 785	2 598	2 487	2 446	2 514	2 377
Solvency SCR ratio	246 %	256 %	238 %	223 %	210 %	227 %	246 %	222 %
Annual premium in force – retail market	1 272	1 620	1 178	1 149	1 107	1 068	1 042	1 013
Annual premium in force – public sector market	1 784	1 222	1 613	1 601	1 624	1 517	1 533	1 521
Net new subscriptions (accumulated within the year)	33	20	-14	-38	-3	72	61	43
KLP BANKEN GROUP
Profit/loss before tax	77	325	255	167	75	285	203	122
Net interest income	133	520	386	255	127	465	340	221
Other operating income	24	96	71	46	22	89	67	44
Operating expenses and depreciation	-81	-284	-208	-140	-81	-271	-201	-134
Net realized/unrealized changes in financial instruments to fair value	1	-7	6	6	7	3	-3	-9
Contributions	16 757	15 800	15 685	15 628	14 158	14 061	14 351	14 524
Housing mortgages granted	24 301	21 148	24 222	24 494	24 102	23 855	23 754	23 481
Loan(s) with public guarantee(s)	19 419	18 688	18 006	18 311	18 735	19 001	19 371	19 449
Defaulted loans	67	64	58	54	53	44	52	43
Borrowing on the issuance of securities	32 284	32 335	32 543	30 767	31 253	31 408	31 616	31 661
Total assets	52 711	51 803	51 931	49 973	48 857	48 928	49 403	49 557
Average total assets	52 257	50 365	50 429	49 450	48 892	49 719	49 957	50 034
Owners' equity	3 440	3 439	3 359	3 280	3 189	3 174	3 132	3 072
Net interest rate	0,25 %	1,03 %	0,76 %	0,51 %	0,26 %	0,93 %	0,68 %	0,44 %
Profit/loss from general operations before tax	0,15 %	0,65 %	0,51 %	0,34 %	0,15 %	0,57 %	0,41 %	0,24 %
Return on owners’ equity before tax	8,91 %	10,25 %	10,70 %	10,52 %	9,47 %	9,62 %	9,13 %	8,19 %
Capital adequacy	21,7 %	22,7 %	20,6 %	20,8 %	21,2 %	21,7 %	20,2 %	20,3 %
Number of private customers	58 585	57 679	56 601	55 670	54 058	52 488	51 340	50 231
Of this members of KLP	38 229	37 955	37 430	36 986	36 139	35 390	34 802	34 307
KLP KAPITALFORVALTNING AS
Profit/loss before tax	-8	103	81	53	12	55	42	4
Total assets under management	867 813	878 867	859 290	818 496	797 875	760 484	715 698	687 956
Assets managed for external customers	231 931	238 104	226 091	214 053	202 680	179 219	162 321	163 444

Q1 2025 Interim report KLP Group and KLP

KLP Group

Report for the first quarter of 2025

KLP – a customer-owned group with a 75-year history

Public-sector occupational pensions

Investment result

Management of the common portfolio

Shares and alternative investments

Short-term bonds and the money market

Long-term bonds

Property

Lending

Returns on the corporate portfolio

Risk result

Administration result

Financial strength and capital-related matters

Premium income

Claims/benefits

Other matters

Non-life insurance

Key figures

Asset and fund management

Bank

Group

Sustainability

Climate-friendly investments

Active ownership

Future prospects

Income statement

Financial position statement KLP Group

Changes in owners’ equity KLP Group

Statement of cashflowKLP Group

Notes to the financial statementKLP Group

Note 1 Accounting principles –and estimates

Accounting principles

Changes in IFRS® Accounting Standards

Accounting estimates

Life insurance activities

Non-life insurance activities

Note 2 Segment information

PUBLIC SECTOR OCCUPATIONAL PENSION AND GROUP LIFE

NON-LIFE INSURANCE

BANKING

ASSET MANAGEMENT

OTHER

Note 3 Insurance service result

Note 4 Investment property

Note 5 Technical provisions

IMPORTANT ASSUMPTIONS

Discount curve for IFRS 17

Salary growth curve

SENSITIVITY IFRS 17

Note 6 Subordinated loans and perpetual hybrid tier 1 securities

Note 7 Fair value of financial assets and liabilites

FINANCIAL INSTRUMENTS MEASURED AT AMORTISED COST

This category includes:

FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE

This category includes:

FIXED-INCOME SECURITIES AND OTHER DEBT INSTRUMENTS MEASURED AT FAIR VALUE

a) Foreign fixed-income securities

The following sources are used:

b) Norwegian fixed-income securities – government

c) Norwegian fixed-income securities – other than government ones

d) Fixed-income securities issued by foreign enterprises but denominated in NOK

e) Receivables on credit institutions

f) Loans to municipalities and enterprises with municipal guarantee

g) Loans secured by mortgage

EQUITY INSTRUMENTS

h) Shares (listed)

The following sources are used for Norwegian shares:

The following sources are used for foreign shares:

i) Shares (unlisted)

j) Private Equity

DERIVATIVES

k) Futures/FRA/IRF

l) Options

m) Interest-rate swaps

n) FX-swaps

DEBT TO CREDIT INSTITUTIONS

o) Placements with credit institutions and deposits