Kommunal Landspensjonskasse – Q2 2022 Interim report KLP Group, sustainability and KLP

Kommunal LandspensjonskasseQ2 2022

Income statementKommunal Landspensjonskasse

NOTE	NOK MILLIONS	Q2 2022	Q2 2021	01.01.2022 -30.06.2022	01.01.2021 -30.06.2021	01.01.2021 -31.12.2021
3	Premium income	25 578	26 593	33 081	33 634	50 161
	Income from investments in subsidiaries, associated enterprises and jointly controlled entities	7 007	3 171	7 192	2 821	6 736
	Interest income and dividends etc. on financial assets	2 786	3 139	5 227	7 566	12 587
	Value changes on investments	-18 159	6 921	-26 522	5 435	17 896
	Gains and losses realized on investments	-377	4 135	440	10 437	12 550
	Net income from investments in the common portfolio	-8 744	17 366	-13 664	26 259	49 770
	Net income from investments in the investment option portfolio	-62	64	-86	102	181
	Other insurance-related income	333	308	664	614	1 274
4	Claims	-5 725	-5 346	-16 367	-19 100	-30 438
	Changes in insurance liabilities taken to profit/loss - contractual liabilities	-10 598	-35 596	-1 269	-32 492	-59 440
	Changes in insurance liabilities taken to profit/loss – individual investment option portfolio	376	-74	-381	-72	-177
	Funds assigned to insurance contracts - contractual liabilities	0	0	0	0	-9 415
	Unallocated profit to insurance contracts	-446	-2 532	-550	-7 220	0
5	Insurance-related operating expenses	-380	-326	-748	-625	-1 372
	Other insurance-related costs	-343	-325	-674	-625	-1 286
	Technical profit/loss	-11	133	7	477	-742
	Net income from investments in the corporate portfolio	229	348	340	620	1 292
	Other income	0	0	2	9	10
	Administration costs and other costs associated with the corporate portfolio	-73	-81	-133	-141	-272
	Non-technical profit/loss	156	266	209	488	1 030
	Profit/loss pre-tax	145	399	216	965	288
	Tax	13	-10	19	-115	125
	Income before other income and expenses	158	389	235	849	413
12	Actuarial gains and losses on defined benefits pension schemes	-229	0	41	118	48
	Proportion of other comprehensive income on application of the equity method	-132	0	24	66	36
	Adjustment of the insurance liabilities	40	0	-7	-21	-16
	Tax on other income and expenses that will not be reclassified to profit or loss	57	0	-10	-30	-12
	Total other income and expenses that will not be reclassified to profit or loss	-263	0	48	135	56
	TOTAL COMPREHENSIVE INCOME	-105	389	283	984	469

Statement of financial positionKommunal Landspensjonskasse

NOTE	NOK MILLIONS	30.06.2022	30.06.2021	31.12.2021
	ASSETS
	ASSETS IN THE CORPORATE PORTFOLIO
	Intangible assets	851	710	727
7	Investment properties	1 005	1 002	1 004
	Shares and holdings in property subsidiaries	3 737	3 371	3 507
	Shares and holdings in other subsidiaries, associated enterprises and jointly controlled entities	5 203	5 201	5 177
6	Financial assets valued at amortized cost	19 987	19 107	19 456
6,7	Financial assets valued at fair value	11 776	11 514	12 221
	Receivables	19 366	21 401	1 407
11	Right-of-use assets	919	1 027	973
	Other assets	1 255	1 026	796
	Total assets in the corporate portfolio	64 099	64 359	45 268
	ASSETS IN THE CUSTOMER PORTFOLIOS
	Shares and holdings in property subsidiaries	76 569	64 664	70 206
	Shares and holdings in other subsidiaries, associated enterprises and jointly controlled entities	5 626	4 955	4 958
	Receivables on and securities issued by subsidiaries, associated enterprises and jointly controlled entities	12 159	12 887	12 524
6	Financial assets valued at amortized cost	265 442	250 342	259 608
6,7	Financial assets valued at fair value	301 037	293 432	311 984
	Total investment in the common portfolio	660 834	626 280	659 281
	Shares and holdings in property subsidiaries	311	235	256
	Receivables on and securities issued by subsidiaries, associated enterprises and jointly controlled entities	63	66	63
6	Financial assets at amortized costs	943	743	753
6,7	Financial assets at fair value	1 347	1 171	1 126
	Total investments in the investment option portfolio	2 665	2 215	2 199
	Total assets in the customer portfolios	663 499	628 495	661 480
	TOTAL ASSETS	727 598	692 854	706 748

NOTE	NOK MILLIONS	30.06.2022	30.06.2021	31.12.2021
	OWNERS' EQUITY AND LIABILITIES
	Owners’ equity contributed	19 701	17 937	19 831
	Retained earnings	21 453	22 172	20 847
	Total owners’ equity	41 154	40 109	40 678
6	Subordinated loan capital etc.	4 576	4 623	4 604
	Premium reserve etc.	506 138	476 152	484 728
	Supplementary reserves	0	42 715	48 626
	Securities adjustment fund	0	67 709	77 397
	Buffer fund	104 970	0	0
	Premium funds, defined contribution funds, pension regulation funds etc.	40 167	37 610	40 769
	Unallocated profit to customers	547	7 160	0
	Total insurance liabilities - contractual liabilities	651 822	631 346	651 520
	Pension capital etc.	1 994	1 545	1 549
	Supplementary reserves	0	127	186
	Buffer fund	70	0	0
	Premium funds, defined contribution funds, pension regulation funds etc.	591	481	499
	Unallocated profit to customers	4	80	0
	Total insurance liabilities - special investment portfolio	2 659	2 233	2 234
12	Pension obligations	545	505	553
	Current tax liabilities	46	207	259
	Deferred tax liabilities	431	794	444
11	Lease liabilities	966	1 056	1 012
9	Liabilities	25 278	11 870	5 261
	Accrued costs and prepaid income	121	112	182
	TOTAL OWNERS’ EQUITY AND LIABILITIES	727 598	692 854	706 748
	OFF-BALANCE SHEET ITEMS
	Contingent liabilities	26 832	26 263	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		-103	338	235
Actuarial gains and losses on defined benefits pension schemes			41	41
Proportion of other comprehensive income on application of the equity method			24	24
Adjustment of the insurance liabilities			-7	-7
Tax on other income and expenses that will not be reclassified to profit or loss			-10	-10
Total other income and expenses that will not be reclassified to profit or loss			48	48
Total comprehensive income (unallocated)		-103	386	283
Owners equity contribution recieved ¹	-130			-130
Total transactions with owners	-130			-130
Own funds 30 June 2022	19 701	4 821	16 632	41 154
¹ During the second quarter, NOK 1 119 million of ordinary equity capital contributions were called in to be paid in during the third quarter.

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		285	564	849
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)		285	699	984
Owners equity contribution recieved ²	-257			-257
Total transactions with owners	-257			-257
Own funds 30 June 2021	17 937	5 689	16 483	40 109
² During the second quarter, NOK 1 053 million of ordinary equity capital contributions were called in to be paid in during the third quarter.

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 -30.06.2022	01.01.2022 -31.03.2022	01.01.2021 -31.12.2021	01.01.2021 -30.09.2021	01.01.2021 -30.06.2021
Net cashflow from operational activities	809	337	-346	-424	778
Net cashflow from investment activities ¹	-162	-78	-275	-211	-142
Net cashflow from financing activities ²	-187	-28	716	695	-312
Net changes in cash and bank deposits	460	231	95	61	323
Holdings of cash and bank deposits at start of period	755	755	659	659	659
Holdings of cash and bank deposits at end of period	1 215	985	755	720	983
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 – 30.06.2022. 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 2021, unless stated otherwise.

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.

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 its guiding assumptions for calculating pension liabilities. The changes from the year end are presented in the table below:

	31.12.2021	30.06.2022	Change
Discount rate	1.90 %	3.20 %	1.30 %
Salary growth	2.75 %	3.50 %	0.75 %
National Insurance basic amount (G)	2.50 %	3.25 %	0.75 %
Pension increases	1.75 %	2.48 %	0.73 %
Social security contributions	14.10 %	14.10 %	0.00 %
Capital activity tax	5.00 %	5.00 %	0.00 %

In total, these changes result in a NOK 41 million decrease in pension liabilities for the company.

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 at 30 June 2022.

NOK MILLIONS	Q2 2022	Q2 2021	01.01.2022 -30.06.2022	01.01.2021 -30.06.2021	01.01.2021 -31.12.2021
Value adjustment incl. foreign exchange	6 363	2 473	5 918	1 291	3 984
Foreign exchange effect on hedging	-1 186	-517	-162	698	1 382
Net value adjustment incl. exchange hedging	5 177	1 956	5 756	1 990	5 366

Note 3 Premium income

NOK MILLIONS	Q2 2022	Q2 2021	01.01.2022 -30.06.2022	01.01.2021 -30.06.2021	01.01.2021 -31.12.2021
Gross premiums due	25 569	26 593	32 695	33 634	50 161
Transfer of premium reserves from others	9	0	386	0	0
Total premium income	25 578	26 593	33 081	33 634	50 161

Note 4 Claims

NOK MILLIONS	Q2 2022	Q2 2021	01.01.2022 -30.06.2022	01.01.2021 -30.06.2021	01.01.2021 -31.12.2021
Claims paid	5 943	5 418	11 709	10 753	22 092
Transfers of premium reserves to others	-218	-73	4 658	8 346	8 346
Total claims	5 725	5 346	16 367	19 100	30 438

Note 5 Insurance-related operating expenses

NOK MILLIONS	Q2 2022	Q2 2021	01.01.2022 -30.06.2022	01.01.2021 -30.06.2021	01.01.2021 -31.12.2021
Personnel costs	215	185	428	373	735
Depreciation	41	49	92	99	270
Other operating expenses	124	91	229	153	366
Total insurance-related operating expenses	380	326	748	625	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.

30.06.2022 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	492	500	3 448	3 467	2	2	3 942	3 969
Accrued not due interest	9	9	87	87	0	0	96	96
Foreign hold-to-maturity bonds	6 368	6 235	15 235	15 141	38	39	21 642	21 414
Accrued not due interest	18	18	202	202	1	1	220	220
Total investments held to maturity	6 887	6 762	18 972	18 896	41	41	25 899	25 699
BONDS CLASSIFIED AS LOANS AND RECEIVABLES
Norwegian bonds	5 030	4 697	54 586	50 956	297	276	59 912	55 930
Accrued not due interest	70	70	807	807	5	5	881	881
Foreign bonds	7 839	7 381	110 566	103 403	591	554	118 996	111 338
Accrued not due interest	162	162	1 708	1 708	10	10	1 880	1 880
Total bonds classified as loans and receivables	13 100	12 309	167 666	156 874	903	846	181 668	170 029
OTHER LOANS AND RECEIVABLES
Secured loans	0	0	3 133	3 033	0	0	3 133	3 033
Lending with public sector guarantee	0	0	69 431	68 136	0	0	69 431	68 136
Loans abroad secured by mortgage and local government guarantee	0	0	5 941	5 941	0	0	5 941	5 941
Accrued not due interest	0	0	298	298	0	0	298	298
Total other loans and receivables	0	0	78 804	77 407	0	0	78 804	77 407
Total financial assets at amortized cost	19 987	19 071	265 442	253 178	943	887	286 372	273 135
ASSETS – AT FAIR VALUE
EQUITY CAPITAL INSTRUMENTS
Norwegian shares	6	6	10 132	10 132	0	0	10 138	10 138
Foreign shares	0	0	41 039	41 039	0	0	41 039	41 039
Total shares	6	6	51 171	51 171	0	0	51 177	51 177
Property funds	0	0	9 245	9 245	49	49	9 294	9 294
Norwegian equity funds	0	0	82 146	82 146	838	838	82 983	82 983
Foreign equity funds	0	0	34 237	34 237	0	0	34 237	34 237
Total equity fund units	0	0	125 628	125 628	887	887	126 515	126 515
Norwegian alternative investments	0	0	1 920	1 920	11	11	1 931	1 931
Foreign alternative investments	0	0	0	0	0	0	0	0
Total alternative investments	0	0	1 920	1 920	11	11	1 931	1 931
Total shares and units	6	6	178 719	178 719	898	898	179 622	179 622
DEBT INSTRUMENTS AT FAIR VALUE
Norwegian bonds	6 336	6 336	26 845	26 845	0	0	33 181	33 181
Foreign bonds	314	314	17 702	17 702	0	0	18 016	18 016
Accrued not due interest	27	27	293	293	0	0	320	320
Norwegian fixed-income funds	2 667	2 667	20 765	20 765	302	302	23 735	23 735
Foreign fixed-income funds	0	0	30 570	30 570	0	0	30 570	30 570
Accrued not due interest	1	1	65	65	1	1	67	67
Norwegian certificates	354	354	2 060	2 060	0	0	2 415	2 415
Foreign certificates	0	0	417	417	0	0	417	417
Accrued not due interest	1	1	5	5	0	0	6	6
Fixed income securities	9 702	9 702	98 722	98 722	304	304	108 727	108 727
Norwegian loans and receivables	974	974	1 714	1 714	98	98	2 786	2 786
Foreign loans and receivables	532	532	6 411	6 411	46	46	6 989	6 989
Total loans and receivables	1 506	1 506	8 125	8 125	144	144	9 775	9 775
DERIVATIVES
Interest rate swaps	559	559	17	17	0	0	577	577
Share options	0	0	0	0	0	0	0	0
Forward exchange contracts	0	0	481	481	1	1	482	482
Total financial derivatives classified as assets	559	559	498	498	1	1	1 059	1 059
OTHER FINANCIAL ASSETS
Other financial assets	3	3	14 974	14 974	1	1	14 977	14 977
Total financial assets valued at fair value	11 776	11 776	301 037	301 037	1 347	1 347	314 160	314 160
LIABILITIES
DERIVATIVES
Interest rate swaps	0	0	880	880	0	0	880	880
Forward exchange contracts	83	83	4 602	4 602	27	27	4 712	4 712
Total financial derivatives classified as liabilities	83	83	5 482	5 482	27	27	5 592	5 592
SUBORDINATED LOAN CAPITAL
Subordinated loan capital	3 026	3 314	0	0	0	0	3 026	3 314
Hybrid Tier 1 securities	1 550	1 345	0	0	0	0	1 550	1 345
Total subordinated loan capital etc.	4 576	4 659	0	0	0	0	4 576	4 659
LIABILITIES TO CREDIT INSTITUTIONS
Repos	0	0	1 300	1 300	0	0	1 300	1 300
Norwegian call money ¹	0	0	1 296	1 296	3	3	1 299	1 299
Foreign call money ¹	672	672	60	60	17	17	749	749
Total liabilities to credit institutions	672	672	2 656	2 656	20	20	3 348	3 348
¹ Call money is collateral for paid/received margin related to derivatives.

30.06.2021 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	540	626	4 445	4 890	11	11	4 996	5 527
Accrued not due interest	10	10	107	107	0	0	117	117
Foreign hold-to-maturity bonds	6 291	6 586	16 164	17 681	38	43	22 493	24 309
Accrued not due interest	18	18	214	214	1	1	233	233
Total investments held to maturity	6 859	7 239	20 930	22 892	50	55	27 838	30 186
BONDS CLASSIFIED AS LOANS AND RECEIVABLES
Norwegian bonds	4 605	4 755	48 465	49 297	205	214	53 275	54 265
Accrued not due interest	65	65	732	732	4	4	801	801
Foreign bonds	7 424	7 819	101 922	109 379	476	502	109 821	117 700
Accrued not due interest	155	155	1 587	1 587	8	8	1 750	1 750
Total bonds classified as loans and receivables	12 248	12 793	152 706	160 995	693	729	165 648	174 517
OTHER LOANS AND RECEIVABLES
Secured loan	0	0	3 086	3 105	0	0	3 086	3 105
Lending with public sector guarantee	0	0	65 089	65 849	0	0	65 089	65 849
Loans abroad secured by mortgage and local government guarantee	0	0	8 246	8 246	0	0	8 246	8 246
Accrued not due interest	0	0	285	285	0	0	285	285
Total other loans and receivables	0	0	76 706	77 485	0	0	76 706	77 485
Total financial assets at amortized cost	19 107	20 032	250 342	261 372	743	784	270 192	282 187
ASSETS – AT FAIR VALUE
EQUITY CAPITAL INSTRUMENTS
Norwegian shares	7	7	8 512	8 512	0	0	8 518	8 518
Foreign shares	0	0	32 654	32 654	0	0	32 654	32 654
Total shares	7	7	41 166	41 166	0	0	41 172	41 172
Property funds	0	0	4 730	4 730	0	0	4 730	4 730
Norwegian equity funds	0	0	90 720	90 720	711	711	91 430	91 430
Foreign equity funds	0	0	22 096	22 096	0	0	22 096	22 096
Total equity fund units	0	0	117 546	117 546	711	711	118 256	118 256
Norwegian alternative investments	0	0	1 865	1 865	9	9	1 874	1 874
Foreign alternative investments	0	0	0	0	0	0	0	0
Total alternative investments	0	0	1 866	1 866	9	9	1 874	1 874
Total shares and units	7	7	160 577	160 577	719	719	161 303	161 303
DEBT INSTRUMENTS AT FAIR VALUE
Norwegian bonds	5 812	5 812	27 316	27 316	0	0	33 128	33 128
Foreign bonds	434	434	18 633	18 633	0	0	19 066	19 066
Accrued not due interest	18	18	271	271	0	0	289	289
Norwegian fixed-income funds	2 665	2 665	30 276	30 276	316	316	33 257	33 257
Foreign fixed-income funds	0	0	29 997	29 997	0	0	29 997	29 997
Accrued not due interest	148	148	2 864	2 864	19	19	3 031	3 031
Norwegian certificates	100	100	4 200	4 200	0	0	4 300	4 300
Foreign certificates	0	0	550	550	0	0	550	550
Accrued not due interest	0	0	2	2	0	0	2	2
Fixed income securities	9 177	9 177	114 109	114 109	335	335	123 621	123 621
Norwegian loans and receivables	985	985	6 305	6 305	48	48	7 337	7 337
Foreign loans and receivables	699	699	6 675	6 675	70	70	7 444	7 444
Total loans and receivables	1 684	1 684	12 980	12 980	117	117	14 781	14 781
DERIVATIVES
Interest rate swaps	646	646	10	10	0	0	656	656
Share options	0	0	223	223	0	0	223	223
Forward exchange contracts	0	0	76	76	0	0	77	77
Total financial derivatives classified as assets	646	646	310	310	0	0	956	956
OTHER FINANCIAL ASSETS
Other financial assets	1	1	5 456	5 456	0	0	5 457	5 457
Total financial assets valued at fair value	11 514	11 514	293 432	293 432	1 171	1 171	306 118	306 118
LIABILITIES
DERIVATIVES
Interest rate swaps	0	0	477	477	0	0	477	477
Forward exchange contracts	1	1	2 543	2 543	11	11	2 555	2 555
Total financial derivatives classified as liabilities	1	1	3 020	3 020	11	11	3 032	3 032
SUBORDINATED LOAN CAPITAL
Subordinated loan capital	2 989	3 351	0	0	0	0	2 989	3 351
Hybrid Tier 1 securities	1 635	1 585	0	0	0	0	1 635	1 585
Total subordinated loan capital etc.	4 623	4 937	0	0	0	0	4 623	4 937
LIABILITIES TO CREDIT INSTITUTIONS
Norwegian call money ¹	0	0	527	527	3	3	529	529
Foreign call money ¹	898	898	247	247	17	17	1 162	1 162
Total liabilities to credit institutions	898	898	774	774	19	19	1 692	1 692
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

30.06.2022 NOK MILLIONS	Level 1	Level 2	Level 3	Total
FINANCIAL ASSETS BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Certificates	0	356	0	356
Bonds	48	6 630	0	6 678
Fixed-income funds	2 669	0	0	2 669
Fixed-income securities	2 716	6 986	0	9 702
Loans and receivables	722	784	0	1 506
Shares	0	0	6	6
Shares and units	0	0	6	6
Financial derivatives	0	559	0	559
Other financial assets	0	3	0	3
Total corporate portfolio	3 438	8 332	6	11 776
COMMON PORTFOLIO
Certificates	867	1 616	0	2 483
Bonds	20 085	24 755	0	44 840
Fixed-income funds	34 128	9 522	7 750	51 399
Fixed-income securities	55 079	35 893	7 750	98 722
Loans and receivables	7 805	319	0	8 125
Shares	47 051	1 170	2 950	51 171
Equity funds	82 977	0	51	83 028
Property funds	0	2 269	6 976	9 245
Special funds	0	1 920	0	1 920
Private Equity	0	0	33 355	33 355
Shares and units	130 029	5 359	43 331	178 719
Financial derivatives	0	498	0	498
Other financial assets	0	14 974	0	14 974
Total common portfolio	192 913	57 044	51 080	301 037
INVESTMENT OPTION PORTFOLIO
Fixed-income funds	295	8	0	304
Fixed-income securities	295	8	0	304
Loans and receivables	144	0	0	144
Equity funds	838	0	0	838
Property funds	0	0	49	49
Special funds	0	11	0	11
Shares and units	838	11	49	898
Financial derivatives	0	1	0	1
Other financial assets	0	1	0	1
Total investment option portfolio	1 277	21	49	1 347
Total financial assets valued at fair value	197 628	65 396	51 136	314 160
CORPORATE PORTFOLIO
Investment property	0	0	1 005	1 005
Total investment property	0	0	1 005	1 005
FINANCIAL LIABILITIES BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Financial derivatives	0	83	0	83
Debt to credit institutions	672	0	0	672
Total corporate portfolio	672	83	0	755
COMMON PORTFOLIO
Financial derivatives	0	5 482	0	5 482
Debt to credit institutions	2 656	0	0	2 656
Total common portfolio	2 656	5 482	0	8 139
INVESTMENT OPTION PORTFOLIO
Financial derivatives	0	27	0	27
Debt to credit institutions	20	0	0	20
Total investment option portfolio	20	27	0	47
Total financial liabilities at fair value	3 348	5 593	0	8 941

30.06.2021 NOK MILLIONS	Level 1	Level 2	Level 3	Total
FINANCIAL ASSETS BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Certificates	0	100	0	100
Bonds	0	6 264	0	6 264
Fixed-income funds	2 813	0	0	2 813
Fixed-income securities	2 813	6 364	0	9 177
Loans and receivables	820	864	0	1 684
Shares	0	0	7	7
Shares and units	0	0	7	7
Financial derivatives	0	646	0	646
Other financial assets	0	1	0	1
Total corporate portfolio	3 633	7 874	7	11 514
COMMON PORTFOLIO
Certificates	2 973	1 779	0	4 752
Bonds	20 558	25 662	0	46 220
Fixed-income funds	48 857	8 643	5 637	63 137
Fixed-income securities	72 388	36 084	5 637	114 109
Loans and receivables	12 664	316	0	12 980
Shares	38 176	327	2 662	41 166
Equity funds	92 184	0	49	92 233
Property funds	0	1 117	3 613	4 730
Special funds	0	1 866	0	1 866
Private Equity	0	0	20 582	20 582
Shares and units	130 360	3 310	26 906	160 577
Financial derivatives	0	310	0	310
Other financial assets	0	5 456	0	5 456
Total common portfolio	215 413	45 477	32 543	293 432
INVESTMENT OPTION PORTFOLIO
Fixed-income funds	328	7	0	335
Fixed-income securities	328	7	0	335
Loans and receivables	117	0	0	117
Equity funds	711	0	0	711
Special funds	0	9	0	9
Shares and units	711	9	0	719
Financial derivatives	0	0	0	0
Other financial assets	0	0	0	0
Total investment option portfolio	1 156	16	0	1 171
Total financial assets valued at fair value	220 202	53 366	32 550	306 118
CORPORATE PORTFOLIO
Investment property	0	0	1 002	1 002
Total investment property	0	0	1 002	1 002
FINANCIAL LIABILITIES BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Financial derivatives	0	1	0	1
Debt to credit institutions	898	0	0	898
Total corporate portfolio	898	1	0	900
COMMON PORTFOLIO
Financial derivatives	0	3 020	0	3 020
Debt to credit institutions	774	0	0	774
Total common portfolio	774	3 020	0	3 795
INVESTMENT OPTION PORTFOLIO
Financial derivatives	0	11	0	11
Debt to credit institutions	19	0	0	19
Total investment option portfolio	19	11	0	30
Total financial liabilities at fair value	1 692	3 032	0	4 724

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 30.06.2022	Book value 30.06.2021	Book value 31.12.2021
Opening balance 01.01.	8	7	7
Sold	0	0	0
Bought	0	0	0
Unrealised changes	-2	0	1
Closing balance 30.06./31.12.	6	7	8
Realised gains/losses	0	0	0
Changes in Level 3 shares, unlisted COMMON PORTFOLIO	Book value 30.06.2022	Book value 30.06.2021	Book value 31.12.2021
Opening balance 01.01.	2 721	2 545	2 545
Sold	-20	0	0
Bought	1	4	15
Unrealised changes	247	113	161
Closing balance 30.06./31.12.	2 950	2 662	2 721
Realised gains/losses	-13	0	0
Changes in Level 3 equity funds, unlisted COMMON PORTFOLIO	Book value 30.06.2022	Book value 30.06.2021	Book value 31.12.2021
Opening balance 01.01.	50	55	55
Sold	0	0	0
Bought	0	0	0
Unrealised changes	0	-6	-5
Closing balance 30.06./31.12.	50	49	50
Realised gains/losses	0	0	0
Changes in Level 3, private equity, fixed- income funds and property funds COMMON PORTFOLIO	Book value 30.06.2022	Book value 30.06.2021	Book value 31.12.2021
Opening balance 01.01.	40 127	23 312	23 312
Sold	-2 480	-1 646	-4 551
Bought	6 012	4 976	13 793
Unrealised changes	4 420	3 190	7 574
Closing balance 30.06./31.12.	48 080	29 832	40 127
Realised gains/losses	955	870	2 236
Changes in Level 3, property funds INVESTMENT OPTION PORTFOLIO	Book value 30.06.2022	Book value 30.06.2021	Book value 31.12.2021
Opening balance 01.01.	0	0	0
Sold	-1	0	0
Bought	50	0	0
Unrealised changes	0	0	0
Closing balance 30.06./31.12.	49	0	0
Realised gains/losses	0	0	0
Changes in Level 3, investment property CORPORATE PORTFOLIO	Book value 30.06.2022	Book value 30.06.2021	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	20	20	40
Other	-20	-35	-53
Closing balance 30.06./31.12.	1 005	1 002	1 004
Realised gains/losses	0	0	0
Total level 3	52 140	33 552	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 2 607 million as of 30.06.2022 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 2nd quarter, NOK 240 million was moved from Level 1 to Level 2 and NOK 59 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

30.06.2022 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	1 059	0	1 059	-475	-741	-18	0
Total	1 059	0	1 059	-475	-741	-18	0
PORTFOLIO ALLOCATION OF ASSETS
Total assets – common portfolio	498	0	498	-474	-54	-18	0
Total assets – corporate portfolio	559	0	559	0	-672	0	0
Total assets – investment option portfolio	1	0	1	-1	-15	0	0
Total	1 059	0	1 059	-475	-741	-18	0
LIABILITIES
Financial derivates	5 592	0	5 592	-475	-158	-6 205	139
Total	5 592	0	5 592	-475	-158	-6 205	139
PORTFOLIO ALLOCATION OF LIABILITIES
Total liabilities – common portfolio	5 482	0	5 482	-474	-155	-6 205	31
Total liabilities – corporate portfolio	83	0	83	0	0	0	83
Total liabilities – investment option portfolio	27	0	27	-1	-2	0	25
Total	5 592	0	5 592	-475	-158	-6 205	139

30.06.2021 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	956	0	956	-87	-820	0	241
Total	956	0	956	-87	-820	0	241
PORTFOLIO ALLOCATION OF ASSETS
Total assets – common portfolio	310	0	310	-87	-130	0	223
Total assets – corporate portfolio	646	0	646	0	-678	0	18
Total assets – investment option portfolio	0	0	0	0	-12	0	0
Total	956	0	956	-87	-820	0	241
LIABILITIES
Financial derivates	3 032	0	3 032	-87	-111	-2 462	391
Total	3 032	0	3 032	-87	-111	-2 462	391
PORTFOLIO ALLOCATION OF LIABILITIES
Total liabilities – common portfolio	3 020	0	3 020	-87	-108	-2 462	381
Total liabilities – corporate portfolio	1	0	1	0	0	0	1
Total liabilities – investment option portfolio	11	0	11	0	-3	0	8
Total	3 032	0	3 032	-87	-111	-2 462	391

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	30.06.2022	30.06.2021	31.12.2021
Short-term liabilities securities	15 377	6 213	367
Advance tax-deduction pension scheme	843	760	491
Accounts payable	-7	44	10
Derivatives	5 592	3 032	2 014
Debt to credit institutions	3 348	1 692	1 651
Liabilities related to direct insurance	99	107	699
Other liabilities	26	21	30
Total liabilities	25 278	11 870	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 340 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 340 per cent.

NOK BILLIONS	30.06.2022	30.06.2021	31.12.2021
	30.06.2022	30.06.2021	31.12.2021
SOLVENCY II-SCR RATIO	340 %	282 %	316 %
SIMPLIFIED SOLVENCY II FINANCIAL POSITION STATEMENT
Assets, book value	727	692	706
Added values - hold-to-maturity portfolio/loans and receivables	-13	12	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	714	704	713
NOK BILLIONS	30.06.2022	30.06.2021	31.12.2021
SIMPLIFIED SOLVENCY II FINANCIAL POSITION STATEMENT
Best estimate	630	631	647
Risk margin	11	14	13
Hybrid Tier 1 securities/Subordinated loan capital	5	5	5
Other liabilities	32	19	11
Deferred tax liabilities	0	1	1
Total liabilities - solvency II	677	670	676
Excess of assets over liabilities	37	34	36
- Deferred tax asset	0	0	0
+ Hybrid Tier 1 securities	2	2	2
Tier 1 basic own funds	38	36	38
Total eligible tier 1 own funds	38	36	38
Subordinated loans	3	3	3
Tier 2 basic own funds	3	3	3
Ancillary own funds	13	12	12
Tier 2 ancillary own funds	13	12	12
Deduction for max. eligible tier 2 own funds	-9	-7	-8
Total eligible tier 2 own funds	7	8	7
Deferred tax asset	0	0	0
Total eligible tier 3 own funds	0	0	0
Solvency II total eligible own funds	45	43	45
Market risk	7	7	7
Diversification market risk	-2	-2	-2
Counterparty risk	0	0	0
Life risk	12	14	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)	13	15	14
Linear minimum capital requirement (MCR_linear)	4	7	5
Minimum	3	4	4
Maximum	6	7	6
Minimum capital requirement (MCR)	4	7	5
Solvency I -SCR ratio	340 %	282 %	316 %

Note 11 Leases

NOK MILLIONS	Q2 2022	Q2 2021	01.01.2022 -30.06.2022	01.01.2021 -30.06.2021	01.01.2021 -31.12.2021
NOK MILLIONS			30.06.2022	30.06.2021	31.12.2021
RIGHT-OF-USE ASSETS			Property
Opening balance 01.01.			973	1 081	1 081
Depreciation			-54	-54	-108
Closing balance			919	1 027	973
NOK MILLIONS			30.06.2022	30.06.2021	31.12.2021
LEASE LIABILITIES			Property
Opening balance 01.01.			1 012	1 099	1 099
Repayments			-46	-43	-88
Closing balance			966	1 056	1 012
	Property
Interest expense lease liabilities	6	6	12	13	26
Interest expense lease liabilities	6	6	12	13	26

Note 12 Pension obligations

NOK MILLIONS	30.06.2022	30.06.2021	31.12.2021
Capitalized net liability 01.01.	553	594	594
Capitalized pension costs	62	55	110
Capitalized financial costs	7	6	12
Actuarial gains and losses	-41	-118	-48
Premiums / contributions received	-36	-33	-116
Capitalized net liability 30.06. / 31.12.	545	505	553
ASSUMPTIONS	30.06.2022	30.06.2021	31.12.2021
Discount rate	3.20 %	2.00 %	1.90 %
Salary growth	3.50 %	2.25 %	2.75 %
The National Insurance basic amount (G)	3.25 %	2.00 %	2.50 %
Pension increases	2.48 %	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 41 million as of 30.06.2022. The change is recognized in "Total other income and expenses that will not be reclassified to profit or loss".