Q3 2023 Interim report KLP Group, sustainability and KLP
Kommunal LandspensjonskasseQ3 2023
Income statementKommunal Landspensjonskasse
NOTE
NOK MILLIONS
Q3 2023
Q3 2022
01.01.2023 -30.09.2023
01.01.2022 -30.09.2022
01.01.2022 -31.12.2022
2
Premium income
8 930
7 552
60 032
40 633
50 523
Income from investments in subsidiaries, associated enterprises and jointly controlled entities
-3 080
1 552
-694
8 743
6 441
Interest income and dividends etc. on financial assets
4 202
2 663
11 198
7 889
10 824
3
Value changes on investments
-7 755
-10 109
20 601
-36 631
-25 583
Gains and losses realized on investments
4 581
1 978
-5 745
2 418
748
Net income from investments in the common portfolio
-2 053
-3 917
25 360
-17 581
-7 570
3
Net income from investments in the investment option portfolio
-20
-19
123
-104
-58
Other insurance-related income
364
348
1 050
1 012
1 358
4
Claims
-6 661
-6 086
-21 501
-22 453
-28 517
Changes in insurance liabilities taken to profit/loss - contractual liabilities
-4 840
3 281
-46 063
2 012
-11 731
Changes in insurance liabilities taken to profit/loss – individual investment option portfolio
-160
26
-319
-355
-392
Funds assigned to insurance contracts - contractual liabilities
0
0
0
0
-651
Unallocated profit to insurance contracts
5 307
-413
-15 967
-963
0
5
Insurance-related operating expenses
-333
-309
-1 093
-1 057
-1 487
Other insurance-related costs
-359
-346
-1 048
-1 020
-1 368
Technical profit/loss
174
118
574
124
107
3, 6
Net income from investments in the corporate portfolio
245
194
760
534
1 066
Other income
15
5
32
8
16
Administration costs and other costs associated with the corporate portfolio
-72
-72
-231
-206
-271
Non-technical profit/loss
188
127
561
336
811
Profit/loss pre-tax
362
244
1 136
461
918
Tax
-92
-61
-264
-42
-115
Income before other income and expenses
270
184
872
419
803
7
Actuarial gains and losses on defined benefits pension schemes
-30
6
219
47
66
Proportion of other comprehensive income on application of the equity method
-17
3
130
28
66
Adjustment of the insurance liabilities
5
-1
-39
-8
-21
Tax on other income and expenses that will not be reclassified to profit or loss
8
-1
-55
-12
-17
Total other income and expenses that will not be reclassified to profit or loss
-34
7
256
55
94
TOTAL COMPREHENSIVE INCOME
235
191
1 127
473
897
Statement of financial positionKommunal Landspensjonskasse
NOTE
NOK MILLIONS
30.09.2023
30.09.2022
31.12.2022
ASSETS
ASSETS IN THE CORPORATE PORTFOLIO
Intangible assets
1 238
906
978
8
Investment properties
1 384
1 103
1 399
Shares and holdings in property subsidiaries
3 108
3 697
3 483
Shares and holdings in other subsidiaries, associated enterprises and jointly controlled entities
6 081
5 516
5 641
9
Financial assets valued at amortized cost
20 914
20 099
20 132
8, 9
Financial assets valued at fair value
13 559
12 794
12 489
Receivables
2 775
1 143
1 350
10
Right-of-use assets
784
892
865
Other assets
1 022
924
956
Total assets in the corporate portfolio
50 864
47 074
47 292
ASSETS IN THE CUSTOMER PORTFOLIOS
Shares and holdings in property subsidiaries
73 390
77 991
74 979
Shares and holdings in other subsidiaries, associated enterprises and jointly controlled entities
6 011
5 817
5 495
Receivables on and securities issued by subsidiaries, associated enterprises and jointly controlled entities
11 317
11 994
11 858
9
Financial assets valued at amortized cost
285 268
269 243
267 451
8, 9
Financial assets valued at fair value
342 227
306 050
300 584
Total investment in the common portfolio
718 214
671 095
660 366
Shares and holdings in property subsidiaries
294
318
301
Receivables on and securities issued by subsidiaries, associated enterprises and jointly controlled entities
61
63
61
9
Financial assets at amortized costs
971
941
943
8, 9
Financial assets at fair value
1 404
1 279
1 305
Total investments in the investment option portfolio
2 730
2 602
2 609
Total assets in the customer portfolios
720 944
673 697
662 976
TOTAL ASSETS
771 808
720 771
710 268
NOTE
NOK MILLIONS
30.09.2023
30.09.2022
31.12.2022
OWNERS' EQUITY AND LIABILITIES
Owners’ equity contributed
22 551
20 812
21 388
Retained earnings
22 536
21 563
21 411
Total owners’ equity
45 087
42 375
42 799
9
Subordinated loan capital etc.
4 809
4 812
4 575
Premium reserve etc.
562 487
509 679
516 525
Buffer fund
101 807
97 985
102 162
Premium funds, defined contribution funds, pension regulation funds etc.
21 681
30 599
33 024
Unallocated profit to customers
15 925
957
0
Total insurance liabilities - contractual liabilities
701 900
639 219
651 711
Pension capital etc.
2 313
2 000
2 005
Buffer fund
61
37
61
Premium funds, defined contribution funds, pension regulation funds etc.
460
543
547
Unallocated profit to customers
81
6
0
Total insurance liabilities - special investment portfolio
2 915
2 585
2 613
7
Pension obligations
252
529
524
Current tax liabilities
495
127
467
Deferred tax liabilities
315
493
316
10
Lease liabilities
848
943
920
11
Liabilities
15 096
29 605
5 985
Accrued costs and prepaid income
91
81
357
TOTAL OWNERS’ EQUITY AND LIABILITIES
771 808
720 771
710 268
OFF-BALANCE SHEET ITEMS
Contingent liabilities
30 098
31 384
28 767
Changes in owners’ equityKommunal Landspensjonskasse
2023 NOK MILLIONS
Owners’ equity contributed
Retained earnings
Total owners’ equity
Risk equalization fund
Other retained earnings
Own funds 31 December 2022
21 388
4 643
16 768
42 799
Change recognized directly in equity ¹
-2
-2
Own funds 1 January 2023
21 388
4 643
16 766
42 798
Income before other income and expenses
181
691
872
Actuarial gains and losses on defined benefits pension schemes
219
219
Proportion of other comprehensive income on application of the equity method
130
130
Adjustment of the insurance liabilities
-39
-39
Tax on other income and expenses that will not be reclassified to profit or loss
-55
-55
Total other income and expenses that will not be reclassified to profit or loss
256
256
Total comprehensive income (unallocated)
181
947
1 127
Owners equity contribution recieved
1 162
1 162
Total transactions with owners
1 162
1 162
Own funds 30 September 2023
22 551
4 824
17 712
45 087
¹ Implementation effect IFRS 9
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 ¹
415
-172
243
Own funds 1 January 2022
19 831
4 786
16 304
40 921
Income before other income and expenses
-130
549
419
Actuarial gains and losses on defined benefits pension schemes
47
47
Proportion of other comprehensive income on application of the equity method
28
28
Adjustment of the insurance liabilities
-8
-8
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
55
55
Total comprehensive income (unallocated)
-130
604
473
Owners equity contribution recieved
982
982
Total transactions with owners
982
982
Own funds 30 September 2022
20 812
4 655
16 908
42 375
¹ See note 2.1.1 c) in the financial statement 2022 for information
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 ¹
415
-172
243
Own funds 1 January 2022
19 831
4 786
16 304
40 921
Income before other income and expenses
576
-142
369
803
Actuarial gains and losses on defined benefits pension schemes
66
66
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
-17
-17
Total other income and expenses that will not be reclassified to profit or loss
94
94
Total comprehensive income
576
-142
464
897
Owners equity contribution recieved
982
982
Total transactions with owners
982
982
Own funds 31 December 2022
21 388
4 643
16 768
42 799
¹ See note 2.1.1 c) in the financial statement 2022 for information
Statement of cash flowsKommunal Landspensjonskasse
NOK MILLIONS
01.01.2023 -30.09.2023
01.01.2023 -30.06.2023
01.01.2023 -31.03.2023
01.01.2022 -31.12.2022
01.01.2022 -30.09.2022
Net cashflow from operational activities
-408
885
476
-374
-527
Net cashflow from investment activities ¹
-348
-249
-112
-329
-237
Net cashflow from financing activities ²
821
-292
-276
866
895
Net changes in cash and bank deposits
64
344
88
163
131
Holdings of cash and bank deposits at start of period
918
918
918
755
755
Holdings of cash and bank deposits at end of period
982
1 261
1 006
918
885
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 01.01.2023 – 30.09.2023. 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 2022, unless stated otherwise.
The Financial Reporting Regulations have changed the rules for recognition and measurement of financial instruments. According to the Financial Reporting Regulations, these must be recognized in accordance with IFRS 9 from and including the financial year starting on 1 January 2023. The Financial Accounts Regulations, however, allow for financial assets that satisfy the criteria in IFRS 9.4.2A to be measured at amortized cost or fair value with changes in value in comprehensive income. KLP has used the opportunity to measure these securities at amortized cost.
The implementation effect is partly applied to the company's equity and partly to the insurance obligations as shown in the table below:
NOK MILLIONS
Corporate portfolio
Common portfolio
Investment option portfolio
Total for customer portfolios
Financial assets
-2
-13
0
-13
Financial liabilities
0
0
0
0
Tax effect
1
0
0
0
Net effect
-2
-13
0
-13
The effect is posted at:
Equity
Insurance liabilities
There is no requirement to rework comparative figures from previous periods, and the comparative figures have thus not been reworked.
For more information about the accounting principles related to this changes and implementation effects, please refer to the company's annual report for 2022, note 37.
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 2022. 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. When implementing new rules for the recognition and measurement of financial instruments, there is a requirement for provisions for expected credit losses on financial instruments valued at amortized cost. There will be significant estimate uncertainty linked to the calculation of expected credit losses. Otherwise, reference is made to note 3 “Important accounting estimates and assessments” in the annual report for 2022 for a description of accounting items where there is a significant risk of material changes in balance sheet values in future periods.
Note 2 Premium income
NOK MILLIONS
Q3 2023
Q3 2022
01.01.2023 -30.09.2023
01.01.2022 -30.09.2022
01.01.2022 -31.12.2022
Gross premiums due
8 930
7 552
59 941
40 248
50 137
Transfer of premium reserves from others
0
0
91
386
386
Total premium income
8 930
7 552
60 032
40 633
50 523
Note 3 Loss provisions on fixed-income securities and loans measured at amortised cost
The note shows provisions for losses on fixed-income securities measured at amortised cost as well as loans and receivables measured at amortised cost.
In the 3rd quarter of 2023, no changes have been made to the models used to calculate the expected loss. The net loss provisions have increased by NOK 3 million during this period. We refer to note 37 in the annual report for a more detailed description of the model.
Expected credit loss (ECL) fixed-income securities measured at amortised cost
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Opening balance ECL 01.01.2023
29 793
4 039
0
33 832
Transfer to stage 1
0
-209
0
-209
Transfer to stage 2
0
0
0
0
Transfer to stage 3
0
0
0
0
Net changes
-2 924
-797
0
-3 721
New losses
2 318
0
0
2 318
Write-offs
-2 792
-475
0
-3 267
Closing balance ECL 30.09.2023
26 395
2 558
0
28 953
Changes (01.01.2023 - 30.09.2023)
-3 398
-1 481
0
-4 879
Expected credit loss (ECL) loans and receivables - all segments
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Opening balance ECL 01.01.2023
5 187
4
97
5 289
Transfer to stage 1
2
-2
0
0
Transfer to stage 2
-1 449
1 449
0
0
Transfer to stage 3
0
0
0
0
Net changes
-477
232 382
208
232 112
New losses
281
0
0
281
Write-offs
-88
-1
0
-89
Closing balance ECL 30.09.2023
3 456
233 833
305
237 594
Changes (01.01.2023 - 30.09.2023)
-1 731
233 829
208
232 305
Expected credit loss (ECL) loans and receivables - business loans
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Opening balance ECL 01.01.2023
4 388
0
0
4 388
Transfer to stage 1
0
0
0
0
Transfer to stage 2
-1 449
1 449
0
0
Transfer to stage 3
0
0
0
0
Net changes
-469
232 379
0
231 910
New losses
200
0
0
200
Write-offs
-31
0
0
-31
Closing balance ECL 30.09.2023
2 639
233 828
0
236 467
Changes (01.01.2023 - 30.09.2023)
-1 749
233 828
0
232 079
Expected credit loss (ECL) loans and receivables - mortgage loans
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Opening balance ECL 01.01.2023
6
4
97
108
Transfer to stage 1
2
-2
0
0
Transfer to stage 2
0
0
0
0
Transfer to stage 3
0
0
0
0
Net changes
-3
3
208
207
New losses
2
0
0
2
Write-offs
-1
0
0
-1
Closing balance ECL 30.09.2023
7
5
305
317
Changes (01.01.2023 - 30.09.2023)
1
1
208
209
Expected credit loss (ECL) loans and receivables - public sector
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Opening balance ECL 01.01.2023
792
0
0
792
Transfer to stage 1
0
0
0
0
Transfer to stage 2
0
0
0
0
Transfer to stage 3
0
0
0
0
Net changes
-23
0
0
-23
New losses
79
0
0
79
Write-offs
-38
0
0
-38
Closing balance ECL 30.09.2023
810
0
0
810
Changes (01.01.2023 - 30.09.2023)
17
0
0
17
Expected credit loss (ECL) loans and receivables - senior loans
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Opening balance ECL 01.01.2023
0
0
0
0
Transfer to stage 1
0
0
0
0
Transfer to stage 2
0
0
0
0
Transfer to stage 3
0
0
0
0
Net changes
0
0
0
0
New losses
0
0
0
0
Write-offs
0
0
0
0
Closing balance ECL 30.09.2023
0
0
0
0
Changes (01.01.2023 - 30.09.2023)
0
0
0
0
Expected credit loss (ECL) - segments excluded from the balance sheet
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Opening balance ECL 01.01.2023
0
0
0
0
Transfer to stage 1
0
0
0
0
Transfer to stage 2
0
0
0
0
Transfer to stage 3
0
0
0
0
Net changes
18
0
0
18
New losses
0
0
0
0
Write-offs
-18
0
0
-18
Closing balance ECL 30.09.2023
0
0
0
0
Changes (01.01.2023 - 30.09.2023)
0
0
0
0
Note 4 Claims
NOK MILLIONS
Q3 2023
Q3 2022
01.01.2023 -30.09.2023
01.01.2022 -30.09.2022
01.01.2022 -31.12.2022
Claims paid
6 657
6 085
19 376
17 794
23 858
Transfers of premium reserves to others
4
1
2 125
4 658
4 659
Total claims
6 661
6 086
21 501
22 453
28 517
Note 5 Insurance-related operating expenses
NOK MILLIONS
Q3 2023
Q3 2022
01.01.2023 -30.09.2023
01.01.2022 -30.09.2022
01.01.2022 -31.12.2022
Personnel costs
192
177
619
604
843
Depreciation
57
49
167
141
189
Other operating expenses
84
84
307
312
454
Total insurance-related operating expenses
333
309
1 093
1 057
1 487
Note 6 Value-adjustment investment property
The portfolio of investment properties, including investment properties owned via subsidiaries, has been valued as at 30. September 2023.
NOK MILLIONS
Q3 2023
Q3 2022
01.01.2023 -30.09.2023
01.01.2022 -30.09.2022
01.01.2022 -31.12.2022
Value adjustment incl. foreign exchange
-4 519
813
-3 957
6 732
3 417
Foreign exchange effect on hedging
910
-749
-1 637
-912
134
Net value adjustment incl. exchange hedging
-3 609
64
-5 593
5 820
3 550
Note 7 Pension obligations
NOK MILLIONS
30.09.2023
30.09.2022
31.12.2022
Capitalized net liability 01.01.
524
553
553
Capitalized pension costs
90
93
124
Capitalized financial costs
14
10
13
Actuarial gains and losses
-219
-47
-66
Premiums / contributions received
-157
-80
-101
Capitalized net liability 30.09. / 31.12.
252
529
524
ASSUMPTIONS
30.09.2023
30.09.2022
31.12.2022
Discount rate
4.00%
3.20 %
3.00 %
Salary growth
4.00%
3.75 %
3.50 %
The National Insurance basic amount (G)
3.50%
3.50 %
3.25 %
Pension increases
2.90%
2.75 %
2.60 %
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 219 million as of 30.09.2023. The change is recognized in "Total other income and expenses that will not be reclassified to profit or loss".
Note 8 Fair value hierarchy
30.09.2023 NOK MILLIONS
Level 1
Level 2
Level 3
Total
FINANCIAL ASSETS BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Certificates
0
812
0
812
Bonds
0
7 404
0
7 404
Fixed-income funds
3 202
0
0
3 202
Fixed-income securities
3 202
8 216
0
11 419
Loans and receivables
768
702
0
1 470
Shares
0
0
6
6
Shares and units
0
0
6
6
Financial derivatives
0
613
0
613
Other financial assets
0
50
0
50
Total corporate portfolio
3 971
9 582
6
13 559
COMMON PORTFOLIO
Certificates
2 074
2 911
0
4 985
Bonds
19 003
28 471
0
47 474
Fixed-income funds
23 368
10 441
13 257
47 066
Fixed-income securities
44 445
41 823
13 257
99 524
Loans and receivables
15 420
782
0
16 203
Shares
64 468
2 472
3 441
70 382
Equity funds
89 586
0
51
89 637
Property funds
0
2 095
7 556
9 651
Special funds
0
2 405
0
2 405
Private Equity
0
0
42 567
42 567
Shares and units
154 054
6 973
53 615
214 642
Financial derivatives
0
2 199
0
2 199
Other financial assets
0
9 659
0
9 659
Total common portfolio
213 919
61 436
66 872
342 227
INVESTMENT OPTION PORTFOLIO
Fixed-income funds
236
9
0
245
Fixed-income securities
236
9
0
245
Loans and receivables
95
0
0
95
Equity funds
996
0
0
996
Property funds
0
0
45
45
Special funds
0
13
0
13
Shares and units
996
13
45
1 054
Financial derivatives
0
8
0
8
Other financial assets
0
1
0
1
Total investment option portfolio
1 327
32
45
1 404
Total financial assets valued at fair value
219 217
71 050
66 923
357 191
CORPORATE PORTFOLIO
Investment property
0
0
1 384
1 384
Total investment property
0
0
1 384
1 384
FINANCIAL LIABILITIES BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Financial derivatives
0
0
0
0
Debt to credit institutions
616
0
0
616
Total corporate portfolio
616
0
0
616
COMMON PORTFOLIO
Financial derivatives
0
1 413
0
1 413
Debt to credit institutions
330
0
0
330
Total common portfolio
330
1 413
0
1 742
INVESTMENT OPTION PORTFOLIO
Financial derivatives
0
1
0
1
Debt to credit institutions
11
0
0
11
Total investment option portfolio
11
1
0
12
Total financial liabilities at fair value
956
1 414
0
2 371
30.09.2022 NOK MILLIONS
Level 1
Level 2
Level 3
Total
FINANCIAL ASSETS BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Certificates
0
535
0
535
Bonds
46
7 110
0
7 156
Fixed-income funds
3 142
0
0
3 142
Fixed-income securities
3 189
7 645
0
10 833
Loans and receivables
504
793
0
1 297
Shares
0
0
6
6
Shares and units
0
0
6
6
Financial derivatives
0
657
0
657
Other financial assets
0
0
0
0
Total corporate portfolio
3 692
9 095
6
12 794
COMMON PORTFOLIO
Certificates
2 104
3 034
0
5 139
Bonds
18 731
26 484
0
45 215
Fixed-income funds
33 318
8 988
9 573
51 879
Fixed-income securities
54 154
38 506
9 573
102 233
Loans and receivables
10 832
192
0
11 024
Shares
47 668
1 383
2 947
51 998
Equity funds
80 621
0
56
80 677
Property funds
0
2 324
7 202
9 526
Special funds
0
2 004
0
2 004
Private Equity
0
0
36 694
36 694
Shares and units
128 289
5 711
46 900
180 899
Financial derivatives
0
325
0
325
Other financial assets
0
11 569
0
11 569
Total common portfolio
193 275
56 303
56 473
306 050
INVESTMENT OPTION PORTFOLIO
Fixed-income funds
259
8
0
268
Fixed-income securities
259
8
0
268
Loans and receivables
88
0
0
88
Equity funds
863
0
0
863
Property funds
0
0
49
49
Special funds
0
11
0
11
Shares and units
863
11
49
923
Financial derivatives
0
0
0
0
Other financial assets
0
0
0
0
Total investment option portfolio
1 210
20
49
1 279
Total financial assets valued at fair value
198 174
65 418
56 528
320 120
CORPORATE PORTFOLIO
Investment property
0
0
1 103
1 103
Total investment property
0
0
1 103
1 103
FINANCIAL LIABILITIES BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Financial derivatives
0
182
0
182
Debt to credit institutions
702
0
0
702
Total corporate portfolio
702
182
0
884
COMMON PORTFOLIO
Financial derivatives
0
13 283
0
13 283
Debt to credit institutions
159
0
0
159
Total common portfolio
159
13 283
0
13 442
INVESTMENT OPTION PORTFOLIO
Financial derivatives
0
45
0
45
Debt to credit institutions
20
0
0
20
Total investment option portfolio
20
45
0
65
Total financial liabilities at fair value
881
13 510
0
14 391
31.12.2022 NOK MILLIONS
Level 1
Level 2
Level 3
Total
FINANCIAL ASSETS BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Certificates
0
318
0
318
Bonds
47
7 367
0
7 414
Fixed-income funds
3 194
0
0
3 194
Fixed-income securities
3 241
7 685
0
10 926
Loans and receivables
612
489
0
1 101
Shares
0
0
6
6
Shares and units
0
0
6
6
Financial derivatives
0
455
0
455
Other financial assets
0
0
0
0
Total corporate portfolio
3 854
8 630
6
12 489
COMMON PORTFOLIO
Certificates
1 853
1 079
0
2 931
Bonds
18 254
38 572
0
56 826
Fixed-income funds
19 831
9 569
9 835
39 234
Fixed-income securities
39 938
49 219
9 835
98 992
Loans and receivables
16 397
193
0
16 590
Shares
47 713
1 609
3 262
52 584
Equity funds
80 476
0
60
80 536
Property funds
0
2 165
7 083
9 248
Special funds
0
2 191
0
2 191
Private Equity
0
0
35 785
35 785
Shares and units
128 189
5 966
46 189
180 344
Financial derivatives
0
4 164
0
4 164
Other financial assets
0
493
0
493
Total common portfolio
184 523
60 036
56 024
300 584
INVESTMENT OPTION PORTFOLIO
Fixed-income funds
265
8
0
273
Fixed-income securities
265
8
0
273
Loans and receivables
98
0
0
98
Equity funds
862
0
0
862
Property funds
0
0
47
47
Special funds
0
12
0
12
Shares and units
862
12
47
922
Financial derivatives
0
9
0
9
Other financial assets
0
4
0
4
Total investment option portfolio
1 225
34
47
1 305
Total financial assets valued at fair value
189 602
68 699
56 078
314 378
CORPORATE PORTFOLIO
Investment property
0
0
1 399
1 399
Total investment property
0
0
1 399
1 399
FINANCIAL LIABILITIES BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Financial derivatives
0
60
0
60
Debt to credit institutions
512
0
0
512
Total corporate portfolio
512
60
0
572
COMMON PORTFOLIO
Financial derivatives
0
1 321
0
1 321
Debt to credit institutions
2 130
0
0
2 130
Total common portfolio
2 130
1 321
0
3 452
INVESTMENT OPTION PORTFOLIO
Financial derivatives
0
6
0
6
Debt to credit institutions
36
0
0
36
Total investment option portfolio
36
6
0
42
Total financial liabilities at fair value
2 678
1 387
0
4 066
Changes in Level 3 shares, unlisted CORPORATE PORTFOLIO
Book value 30.09.2023
Book value 30.09.2022
Book value 31.12.2022
Opening balance 01.01.
6
8
8
Sold
0
0
0
Bought
0
0
0
Unrealised changes
0
-2
-2
Closing balance 30.09./31.12.
6
6
6
Realised gains/losses
0
0
0
Changes in Level 3 shares, unlisted COMMON PORTFOLIO
Book value 30.09.2023
Book value 30.09.2022
Book value 31.12.2022
Opening balance 01.01.
3 262
2 721
2 721
Sold
-25
-20
-53
Bought
87
33
432
Unrealised changes
118
213
162
Closing balance 30.09./31.12.
3 441
2 947
3 262
Realised gains/losses
-12
-13
-6
Changes in Level 3 equity funds, unlisted COMMON PORTFOLIO
Book value 30.09.2023
Book value 30.09.2022
Book value 31.12.2022
Opening balance 01.01.
59
50
50
Sold
0
0
0
Bought
0
0
0
Unrealised changes
-9
5
9
Closing balance 30.09./31.12.
50
55
59
Realised gains/losses
0
0
0
Changes in Level 3, private equity and property funds COMMON PORTFOLIO
Book value 30.09.2023
Book value 30.09.2022
Book value 31.12.2022
Opening balance 01.01.
52 683
40 127
40 127
Sold
-2 379
-4 258
-5 753
Bought
9 255
10 733
14 036
Unrealised changes
3 822
6 867
4 292
Closing balance 30.09./31.12.
63 380
53 470
52 703
Realised gains/losses
973
1 726
2 313
Changes in Level 3, property funds INVESTMENT OPTION PORTFOLIO
Book value 30.09.2023
Book value 30.09.2022
Book value 31.12.2022
Opening balance 01.01.
48
0
0
Sold
-1
-1
-2
Bought
0
50
50
Unrealised changes
-1
0
-1
Closing balance 30.09./31.12.
46
49
48
Realised gains/losses
0
0
0
Changes in Level 3, investment property CORPORATE PORTFOLIO
Book value 30.09.2023
Book value 30.09.2022
Book value 31.12.2022
Opening balance 01.01.
1 399
1 004
1 004
Sold
-3
0
0
Bought
0
0
0
Unrealised changes
31
138
435
Other
-42
-40
-40
Closing balance 30.09./31.12.
1 384
1 103
1 399
Realised gains/losses
0
0
0
Total level 3
68 308
57 630
57 476
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 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 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 7 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 9. 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 included 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 7 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 3 415 million as of 30.09.2023 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. For 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 3rd quarter, NOK 474 million moved from Level 1 to Level 2, NOK 68 million moved from level 2 to level 1 and NOK 70 million moved from level 1 to level 3. 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 9 Fair value of financial assets and liabilities
For information regarding pricing of financial assets and liabilities see note 7 Fair value of financial assets and liabilities in the consolidated financial statement.
30.09.2023 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
FIXED-INCOME SECURITIES
Norwegian bonds
5 647
5 153
63 890
58 826
325
294
69 862
64 273
Accrued not due interest
91
91
1 052
1 052
4
4
1 147
1 147
Foreign bonds
15 063
14 026
137 540
125 625
633
577
153 236
140 227
Accrued not due interest
113
113
1 835
1 835
9
9
1 957
1 957
Total fixed-income securities
20 914
19 383
204 317
187 337
971
884
226 202
207 604
OTHER LOANS AND RECEIVABLES
Secured loans
0
0
2 851
2 734
0
0
2 851
2 734
Lending with public sector guarantee
0
0
73 076
71 304
0
0
73 076
71 304
Loans abroad secured by mortgage and local government guarantee
0
0
4 362
4 371
0
0
4 362
4 371
Accrued not due interest
0
0
663
663
0
0
663
663
Total other loans and receivables
0
0
80 952
79 072
0
0
80 952
79 072
Total financial assets at amortized cost
20 914
19 383
285 268
266 409
971
884
307 153
286 676
ASSETS – AT FAIR VALUE
EQUITY CAPITAL INSTRUMENTS
Norwegian shares
6
6
12 013
12 013
0
0
12 019
12 019
Foreign shares
0
0
58 369
58 369
0
0
58 369
58 369
Total shares
6
6
70 382
70 382
0
0
70 388
70 388
Property funds
0
0
9 651
9 651
45
45
9 696
9 696
Norwegian equity funds
0
0
89 376
89 376
996
996
90 372
90 372
Foreign equity funds
0
0
42 828
42 828
0
0
42 828
42 828
Total equity fund units
0
0
141 855
141 855
1 041
1 041
142 896
142 896
Norwegian alternative investments
0
0
2 405
2 405
13
13
2 419
2 419
Foreign alternative investments
0
0
0
0
0
0
0
0
Total alternative investments
0
0
2 405
2 405
13
13
2 419
2 419
Total shares and units
6
6
214 642
214 642
1 054
1 054
215 703
215 703
DEBT INSTRUMENTS AT FAIR VALUE
Norwegian bonds
6 617
6 617
28 756
28 756
0
0
35 374
35 374
Foreign bonds
727
727
18 267
18 267
0
0
18 994
18 994
Accrued not due interest
60
60
450
450
0
0
510
510
Norwegian fixed-income funds
3 135
3 135
24 231
24 231
240
240
27 606
27 606
Foreign fixed-income funds
0
0
22 206
22 206
0
0
22 206
22 206
Accrued not due interest
67
67
630
630
5
5
702
702
Norwegian certificates
805
805
4 076
4 076
0
0
4 881
4 881
Foreign certificates
0
0
891
891
0
0
891
891
Accrued not due interest
7
7
17
17
0
0
24
24
Fixed income securities
11 419
11 419
99 524
99 524
245
245
111 188
111 188
Norwegian loans and receivables
1 101
1 101
10 602
10 602
26
26
11 729
11 729
Foreign loans and receivables
370
370
5 600
5 600
69
69
6 039
6 039
Total loans and receivables
1 470
1 470
16 203
16 203
95
95
17 768
17 768
DERIVATIVES
Interest rate swaps
473
473
185
185
0
0
658
658
Share options
0
0
0
0
0
0
0
0
Forward exchange contracts
140
140
2 015
2 015
8
8
2 163
2 163
Total financial derivatives classified as assets
613
613
2 199
2 199
8
8
2 821
2 821
OTHER FINANCIAL ASSETS
Other financial assets
50
50
9 659
9 659
1
1
9 710
9 710
Total financial assets valued at fair value
13 559
13 559
342 227
342 227
1 404
1 404
357 191
357 191
LIABILITIES
DERIVATIVES
Interest rate swaps
0
0
214
214
0
0
214
214
Forward exchange contracts
0
0
1 199
1 199
1
1
1 200
1 200
Total financial derivatives classified as liabilities
0
0
1 413
1 413
1
1
1 414
1 414
SUBORDINATED LOAN CAPITAL
Subordinated loan capital
3 340
3 271
0
0
0
0
3 340
3 271
Hybrid Tier 1 securities
1 470
1 470
0
0
0
0
1 470
1 470
Total subordinated loan capital etc.
4 809
4 741
0
0
0
0
4 809
4 741
LIABILITIES TO CREDIT INSTITUTIONS
Repos
0
0
0
0
0
0
0
0
Norwegian call money ¹
0
0
269
269
0
0
269
269
Foreign call money ¹
616
616
61
61
11
11
687
687
Total liabilities to credit institutions
616
616
330
330
11
11
956
956
¹ Call money is collateral for paid/received margin related to derivatives.
30.09.2022 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
496
493
3 448
3 407
2
2
3 946
3 902
Accrued not due interest
14
14
95
95
0
0
108
108
Foreign hold-to-maturity bonds
6 572
6 270
15 853
15 326
38
38
22 463
21 634
Accrued not due interest
23
23
171
171
0
0
194
194
Total investments held to maturity
7 104
6 799
19 567
18 999
40
40
26 711
25 838
BONDS CLASSIFIED AS LOANS AND RECEIVABLES
Norwegian bonds
5 048
4 636
55 992
51 595
302
277
61 343
56 508
Accrued not due interest
76
76
865
865
4
4
945
945
Foreign bonds
7 789
7 245
111 824
102 928
586
541
120 199
110 715
Accrued not due interest
82
82
1 567
1 567
8
8
1 658
1 658
Total bonds classified as loans and receivables
12 995
12 039
170 248
156 955
901
831
184 144
169 825
OTHER LOANS AND RECEIVABLES
Secured loan
0
0
3 016
2 908
0
0
3 016
2 908
Lending with public sector guarantee
0
0
69 884
68 213
0
0
69 884
68 213
Loans abroad secured by mortgage and local government guarantee
0
0
6 144
6 144
0
0
6 144
6 144
Accrued not due interest
0
0
383
383
0
0
383
383
Total other loans and receivables
0
0
79 428
77 649
0
0
79 428
77 649
Total financial assets at amortized cost
20 099
18 838
269 243
253 603
941
871
290 283
273 312
ASSETS – AT FAIR VALUE
EQUITY CAPITAL INSTRUMENTS
Norwegian shares
6
6
9 816
9 816
0
0
9 822
9 822
Foreign shares
0
0
42 182
42 182
0
0
42 182
42 182
Total shares
6
6
51 998
51 998
0
0
52 004
52 004
Property funds
0
0
9 526
9 526
49
49
9 575
9 575
Norwegian equity funds
0
0
80 486
80 486
863
863
81 349
81 349
Foreign equity funds
0
0
36 885
36 885
0
0
36 885
36 885
Total equity fund units
0
0
126 897
126 897
911
911
127 809
127 809
Norwegian alternative investments
0
0
2 004
2 004
11
11
2 016
2 016
Foreign alternative investments
0
0
0
0
0
0
0
0
Total alternative investments
0
0
2 004
2 004
11
11
2 016
2 016
Total shares and units
6
6
180 899
180 899
923
923
181 828
181 828
DEBT INSTRUMENTS AT FAIR VALUE
Norwegian bonds
6 798
6 798
27 139
27 139
0
0
33 937
33 937
Foreign bonds
322
322
17 741
17 741
0
0
18 063
18 063
Accrued not due interest
36
36
335
335
0
0
371
371
Norwegian fixed-income funds
3 136
3 136
20 697
20 697
266
266
24 099
24 099
Foreign fixed-income funds
0
0
31 109
31 109
0
0
31 109
31 109
Accrued not due interest
6
6
74
74
1
1
81
81
Norwegian certificates
532
532
4 694
4 694
0
0
5 226
5 226
Foreign certificates
0
0
430
430
0
0
430
430
Accrued not due interest
3
3
14
14
0
0
17
17
Fixed income securities
10 833
10 833
102 233
102 233
268
268
113 334
113 334
Norwegian loans and receivables
865
865
5 404
5 404
41
41
6 310
6 310
Foreign loans and receivables
431
431
5 620
5 620
47
47
6 099
6 099
Total loans and receivables
1 297
1 297
11 024
11 024
88
88
12 409
12 409
DERIVATIVES
Interest rate swaps
657
657
2
2
0
0
660
660
Share options
0
0
118
118
0
0
118
118
Forward exchange contracts
0
0
204
204
0
0
204
204
Total financial derivatives classified as assets
657
657
325
325
0
0
982
982
OTHER FINANCIAL ASSETS
Other financial assets
0
0
11 569
11 569
0
0
11 570
11 570
Total financial assets valued at fair value
12 794
12 794
306 050
306 050
1 279
1 279
320 123
320 123
LIABILITIES
DERIVATIVES
Interest rate swaps
0
0
2 423
2 423
0
0
2 423
2 423
Forward exchange contracts
182
182
10 860
10 860
45
45
11 087
11 087
Total financial derivatives classified as liabilities
182
182
13 283
13 283
45
45
13 510
13 510
SUBORDINATED LOAN CAPITAL
Subordinated loan capital
3 162
3 059
0
0
0
0
3 162
3 059
Hybrid Tier 1 securities
1 650
1 393
0
0
0
0
1 650
1 393
Total subordinated loan capital etc.
4 812
4 452
0
0
0
0
4 812
4 452
LIABILITIES TO CREDIT INSTITUTIONS
Repos
0
0
0
0
0
0
0
0
Norwegian call money ¹
0
0
4
4
3
3
6
6
Foreign call money ¹
702
702
155
155
17
17
875
875
Total liabilities to credit institutions
702
702
159
159
20
20
881
881
¹ Call money is collateral for paid/received margin related to derivatives
31.12.2022 NOK MILLION
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
494
500
2 559
2 573
2
2
3 055
3 075
Accrued not due interest
19
19
95
95
0
0
114
114
Foreign hold-to-maturity bonds
6 479
6 133
14 273
13 949
38
39
20 790
20 121
Accrued not due interest
39
39
202
202
1
1
241
241
Total investments held to maturity
7 030
6 691
17 129
16 820
41
41
24 200
23 552
BONDS CLASSIFIED AS LOANS AND RECEIVABLES
Norwegian bonds
5 138
4 836
55 584
52 806
302
283
61 024
57 925
Accrued not due interest
70
70
769
769
4
4
844
844
Foreign bonds
7 789
7 303
113 271
105 231
586
545
121 645
113 079
Accrued not due interest
105
105
1 716
1 716
9
9
1 830
1 830
Total bonds classified as loans and receivables
13 102
12 314
171 339
160 522
902
842
185 343
173 678
OTHER LOANS AND RECEIVABLES
Secured loans
0
0
2 935
2 836
0
0
2 935
2 836
Lending with public sector guarantee
0
0
70 213
68 807
0
0
70 213
68 807
Loans abroad secured by mortgage and local government guarantee
0
0
5 332
5 332
0
0
5 332
5 332
Other loans
0
0
115
115
0
0
115
115
Accrued not due interest
0
0
389
389
0
0
389
389
Total other loans and receivables
0
0
78 982
77 478
0
0
78 982
77 478
Total financial assets at amortized cost
20 132
19 005
267 451
254 820
943
883
288 525
274 708
ASSETS – AT FAIR VALUE
EQUITY CAPITAL INSTRUMENTS
Norwegian shares
6
6
10 961
10 961
0
0
10 968
10 968
Foreign shares
0
0
41 622
41 622
0
0
41 622
41 622
Total shares
6
6
52 584
52 584
0
0
52 590
52 590
Property funds
0
0
9 248
9 248
47
47
9 296
9 296
Norwegian equity funds
0
0
80 234
80 234
862
862
81 096
81 096
Foreign equity funds
0
0
36 087
36 087
0
0
36 087
36 087
Total equity fund units
0
0
125 570
125 570
909
909
126 479
126 479
Norwegian alternative investments
0
0
2 191
2 191
12
12
2 203
2 203
Foreign alternative investments
0
0
0
0
0
0
0
0
Total alternative investments
0
0
2 191
2 191
12
12
2 203
2 203
Total shares and units
6
6
180 344
180 344
922
922
181 272
181 272
DEBT INSTRUMENTS AT FAIR VALUE
Norwegian bonds
7 144
7 144
27 753
27 753
0
0
34 898
34 898
Foreign bonds
223
223
28 552
28 552
0
0
28 775
28 775
Accrued not due interest
47
47
520
520
0
0
568
568
Norwegian fixed-income funds
3 194
3 194
21 271
21 271
273
273
24 738
24 738
Foreign fixed-income funds
0
0
17 964
17 964
0
0
17 964
17 964
Accrued not due interest
0
0
0
0
0
0
0
0
Norwegian certificates
315
315
2 499
2 499
0
0
2 814
2 814
Foreign certificates
0
0
420
420
0
0
420
420
Accrued not due interest
4
4
12
12
0
0
15
15
Fixed income securities
10 926
10 926
98 992
98 992
273
273
110 191
110 191
Norwegian loans and receivables
630
630
10 531
10 531
32
32
11 193
11 193
Foreign loans and receivables
471
471
6 059
6 059
66
66
6 596
6 596
Total loans and receivables
1 101
1 101
16 590
16 590
98
98
17 789
17 789
DERIVATIVES
Interest rate swaps
455
455
657
657
0
0
1 113
1 113
Share options
0
0
135
135
0
0
135
135
Forward exchange contracts
0
0
3 372
3 372
9
9
3 381
3 381
Total financial derivatives classified as assets
455
455
4 164
4 164
9
9
4 628
4 628
OTHER FINANCIAL ASSETS
Other financial assets
0
0
493
493
4
4
498
498
Total financial assets valued at fair value
12 489
12 489
300 584
300 584
1 305
1 305
314 378
314 378
LIABILITIES
DERIVATIVES
Interest rate swaps
0
0
118
118
0
0
118
118
Forward exchange contracts
60
60
1 203
1 203
6
6
1 269
1 269
Total financial derivatives classified as liabilities
60
60
1 321
1 321
6
6
1 387
1 387
SUBORDINATED LOAN CAPITAL
Subordinated loan capital
3 147
3 093
0
0
0
0
3 147
3 093
Hybrid Tier 1 securities
1 428
1 428
0
0
0
0
1 428
1 428
Total subordinated loan capital etc.
4 575
4 521
0
0
0
0
4 575
4 521
LIABILITIES TO CREDIT INSTITUTIONS
Norwegian call money ¹
0
0
636
636
3
3
639
639
Foreign call money ¹
512
512
1 494
1 494
33
33
2 039
2 039
Total liabilities to credit institutions
512
512
2 130
2 130
36
36
2 678
2 678
¹ Call money is collateral for paid/received margin related to derivatives.
Note 10 Leases
NOK MILLIONS
30.09.2023
30.09.2022
31.12.2022
RIGHT-OF-USE ASSETS
Property
Opening balance 01.01.
865
973
973
Depreciation
-81
-81
-108
Closing balance 30.09. / 31.12.
784
892
865
NOK MILLIONS
30.09.2023
30.09.2022
31.12.2022
LEASE LIABILITIES
Property
Opening balance 01.01.
920
1 012
1 012
Repayments
-72
-69
-92
Closing balance 30.09. / 31.12.
848
943
920
NOK MILLIONS
Q3 2023
Q3 2022
01.01.2023 -30.09.2023
01.01.2022 -30.09.2022
01.01.2022 -31.12.2022
Property
Interest expense lease liabilities
5
6
16
18
24
Interest expense lease liabilities
5
6
16
18
24
Note 11 Liabilities
NOK MILLIONS
30.09.2023
30.09.2022
31.12.2022
Short-term liability securities
9 644
12 962
852
Advance tax-deduction pension scheme
522
478
522
Accounts payable
37
8
18
Derivatives
1 414
13 510
1 387
Debt to credit institutions
956
881
2 678
Liabilities related to direct insurance
2 497
1 740
492
Other liabilities
26
26
36
Total liabilities
15 096
29 605
5 985
Note 12 Presentation of assets and liabilities that are subject to net settlement
30.09.2023 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
2 821
0
2 821
-1 357
-948
0
654
Total
2 821
0
2 821
-1 357
-948
0
654
PORTFOLIO ALLOCATION OF ASSETS
Total assets – common portfolio
2 199
0
2 199
-1 356
-329
0
553
Total assets – corporate portfolio
613
0
613
0
-616
0
96
Total assets – investment option portfolio
8
0
8
-1
-4
0
5
Total
2 821
0
2 821
-1 357
-948
0
654
LIABILITIES
Financial derivates
1 414
0
1 414
-1 357
-196
-467
0
Total
1 414
0
1 414
-1 357
-196
-467
0
PORTFOLIO ALLOCATION OF LIABILITIES
Total liabilities – common portfolio
1 413
0
1 413
-1 356
-196
-467
0
Total liabilities – corporate portfolio
0
0
0
0
0
0
0
Total liabilities – investment option portfolio
1
0
1
-1
0
0
0
Total
1 414
0
1 414
-1 357
-196
-467
0
30.09.2022 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
982
0
982
-207
-867
0
163
Total
982
0
982
-207
-867
0
163
PORTFOLIO ALLOCATION OF ASSETS
Total assets – common portfolio
325
0
325
-207
-149
0
118
Total assets – corporate portfolio
657
0
657
0
-702
0
45
Total assets – investment option portfolio
0
0
0
0
-16
0
0
Total
982
0
982
-207
-867
0
163
LIABILITIES
Financial derivates
13 510
0
13 510
-207
-162
-11 148
2 153
Total
13 510
0
13 510
-207
-162
-11 148
2 153
PORTFOLIO ALLOCATION OF LIABILITIES
Total liabilities – common portfolio
13 283
0
13 283
-207
-160
-11 148
1 927
Total liabilities – corporate portfolio
182
0
182
0
0
0
182
Total liabilities – investment option portfolio
45
0
45
0
-2
0
44
Total
13 510
0
13 510
-207
-162
-11 148
2 153
31.12.2022 NOK MILLIONS
Related amounts not presented net
Gross financial assets/ liabilities
Gross assets/ liabilities presented net
Book value
Financial instruments
Security in cash
Security in securities
Net amount
ASSETS
Financial derivates
4 628
0
4 628
-1 228
-2 667
-667
366
Total
4 628
0
4 628
-1 228
-2 667
-667
366
PORTFOLIO ALLOCATION OF ASSETS
Total assets – common portfolio
4 164
0
4 164
-1 225
-2 124
-667
360
Total assets – corporate portfolio
455
0
455
0
-512
0
0
Total assets – investment option portfolio
9
0
9
-2
-31
0
6
Total
4 628
0
4 628
-1 228
-2 667
-667
366
LIABILITIES
Financial derivates
1 387
0
1 387
-1 228
-88
-211
64
Total
1 387
0
1 387
-1 228
-88
-211
64
PORTFOLIO ALLOCATION OF LIABILITIES
Total liabilities – common portfolio
1 321
0
1 321
-1 225
-42
-211
0
Total liabilities – corporate portfolio
60
0
60
0
-25
0
60
Total liabilities – investment option portfolio
6
0
6
-2
-21
0
3
Total
1 387
0
1 387
-1 228
-88
-211
64
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 13 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. Starting 30.09.2022 the risk equalization fund will also be considered tier 2 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 368 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 368 per cent.
30.09.2023
30.09.2022
31.12.2022
SOLVENCY II-SCR RATIO
368 %
341 %
318 %
NOK BILLIONS
30.09.2023
30.09.2022
31.12.2022
SIMPLIFIED SOLVENCY II FINANCIAL POSITION STATEMENT
Assets, book value
771
720
709
Added values - hold-to-maturity portfolio/loans and receivables
-17
-15
-12
Added values - other lending
-2
-2
-2
Other added/lesser values
0
0
0
Deferred tax asset
0
0
0
Total assets - solvency II
751
703
695
NOK BILLIONS
30.09.2023
30.09.2022
31.12.2022
SIMPLIFIED SOLVENCY II FINANCIAL POSITION STATEMENT
Best estimate
674
613
629
Risk margin
10
11
12
Hybrid Tier 1 securities/Subordinated loan capital
4
5
5
Other liabilities
17
31
8
Deferred tax liabilities
0
0
0
Total liabilities - solvency II
705
660
653
Excess of assets over liabilities
47
43
42
- Deferred tax asset
0
0
0
- Risk equalization fund (tier 2 own funds starting 30.09.2022)
-5
-5
-5
+ Hybrid Tier 1 securities
1
2
1
Tier 1 basic own funds
43
40
39
Total eligible tier 1 own funds
43
40
39
Subordinated loans
3
3
3
Risk equalization fund (tier 2 own funds starting 30.09.2022)