Income from investments in subsidiaries, associated enterprises and jointly controlled entities
2 566
-3 080
3 473
-694
241
Interest income and dividends etc. on financial assets
4 321
4 202
13 129
11 198
14 507
3
Value changes on investments
10 244
-7 755
31 309
20 601
32 140
Gains and losses realized on investments
311
4 581
2 942
-5 745
-4 388
Net income from investments in the common portfolio
17 442
-2 053
50 852
25 360
42 500
3
Net income from investments in the investment option portfolio
80
-20
243
123
212
Other insurance-related income
372
364
1 090
1 050
1 415
4
Claims
-6 892
-6 661
-23 024
-21 501
-28 261
Changes in insurance liabilities taken to profit/loss - contractual liabilities
-10 401
-4 840
-37 536
-46 063
-63 368
Changes in insurance liabilities taken to profit/loss – individual investment option portfolio
-42
-160
-137
-319
-315
Funds assigned to insurance contracts - contractual liabilities
0
0
0
0
-20 632
Unallocated profit to insurance contracts
-14 177
5 307
-40 610
-15 967
0
5
Insurance-related operating expenses
-394
-333
-1 187
-1 093
-1 512
Other insurance-related costs
-370
-359
-1 091
-1 048
-1 408
Technical profit/loss
156
174
397
574
-1 043
3, 6
Net income from investments in the corporate portfolio
714
245
1 448
760
1 282
Other income
19
15
49
32
48
Administration costs and other costs associated with the corporate portfolio
-76
-72
-232
-231
-306
Non-technical profit/loss
657
188
1 266
561
1 024
Profit/loss pre-tax
813
362
1 663
1 136
-20
Tax
-143
-92
-315
-264
-82
Income before other income and expenses
670
270
1 348
872
-101
7
Actuarial gains and losses on defined benefits pension schemes
-76
-30
135
219
-88
Proportion of other comprehensive income on application of the equity method
-38
-17
84
130
-59
Adjustment of the insurance liabilities
8
5
-24
-39
13
Tax on other income and expenses that will not be reclassified to profit or loss
19
8
-34
-55
22
Total other income and expenses that will not be reclassified to profit or loss
-87
-34
160
256
-111
TOTAL COMPREHENSIVE INCOME
583
235
1 508
1 127
-213
Statement of financial positionKommunal Landspensjonskasse
NOTE
NOK MILLIONS
30.09.2024
30.09.2023
31.12.2023
ASSETS
ASSETS IN THE CORPORATE PORTFOLIO
Intangible assets
1 502
1 238
1 326
8
Buildings and other real estate
1 322
1 384
1 301
Shares and holdings in property subsidiaries
3 012
3 108
3 068
Shares and holdings in other subsidiaries, associated enterprises and jointly controlled entities
6 643
6 179
6 200
9
Financial assets valued at amortized cost
22 382
20 914
21 256
8, 9
Financial assets valued at fair value
14 575
13 559
13 423
Receivables
6 278
2 775
1 486
10
Right-of-use assets
675
784
756
Other assets
1 370
1 022
1 182
Total assets in the corporate portfolio
57 760
50 962
49 999
ASSETS IN THE CUSTOMER PORTFOLIOS
Shares and holdings in property subsidiaries
79 576
73 390
73 742
Shares and holdings in other subsidiaries, associated enterprises and jointly controlled entities
6 518
6 011
6 662
Receivables on and securities issued by subsidiaries, associated enterprises and jointly controlled entities
10 569
11 317
11 137
9
Financial assets valued at amortized cost
299 778
285 268
288 086
8, 9
Financial assets valued at fair value
393 760
342 227
354 711
Total investment in the common portfolio
790 200
718 214
734 337
Shares and holdings in property subsidiaries
320
294
296
Receivables on and securities issued by subsidiaries, associated enterprises and jointly controlled entities
58
61
58
9
Financial assets at amortized costs
1 017
971
989
8, 9
Financial assets at fair value
1 668
1 404
1 488
Total investments in the investment option portfolio
3 063
2 730
2 830
Total assets in the customer portfolios
793 263
720 944
737 168
TOTAL ASSETS
851 023
771 906
787 167
NOTE
NOK MILLIONS
30.09.2024
30.09.2023
31.12.2023
OWNERS' EQUITY AND LIABILITIES
Owners’ equity contributed
24 226
22 551
22 978
Retained earnings
22 375
22 634
20 866
Total owners’ equity
46 601
45 185
43 845
9
Subordinated loan capital etc.
4 976
4 809
4 795
Premium reserve etc.
608 764
562 487
571 399
Buffer fund
108 930
101 807
109 281
Premium funds, defined contribution funds, pension regulation funds etc.
27 430
21 681
42 251
Unallocated profit to customers
40 434
15 925
0
Total insurance liabilities - contractual liabilities
785 558
701 900
722 931
Pension capital etc.
2 300
2 313
2 173
Buffer fund
185
61
185
Premium funds, defined contribution funds, pension regulation funds etc.
425
460
491
Unallocated profit to customers
200
81
0
Total insurance liabilities - special investment portfolio
3 110
2 915
2 850
7
Pension obligations
468
252
572
Current tax liabilities
346
495
107
Deferred tax liabilities
503
315
503
10
Lease liabilities
747
848
822
11
Liabilities
8 591
15 096
10 508
Accrued costs and prepaid income
124
91
234
TOTAL OWNERS’ EQUITY AND LIABILITIES
851 023
771 906
787 167
OFF-BALANCE SHEET ITEMS
Contingent liabilities
32 276
30 098
28 895
Changes in owners’ equityKommunal Landspensjonskasse
2024 NOK MILLIONS
Owners’ equity contributed
Retained earnings
Total owners’ equity
Risk equalization fund
Other retained earnings
Own funds 1 January 2024
22 978
3 674
17 193
43 845
Income before other income and expenses
257
1 090
1 348
Actuarial gains and losses on defined benefits pension schemes
135
135
Proportion of other comprehensive income on application of the equity method
84
84
Adjustment of the insurance liabilities
-24
-24
Tax on other income and expenses that will not be reclassified to profit or loss
-34
-34
Total other income and expenses that will not be reclassified to profit or loss
160
160
Total comprehensive income (unallocated)
257
1 251
1 508
Owners equity contribution recieved
1 248
1 248
Total transactions with owners
1 248
1 248
Own funds 30 September 2024
24 226
3 931
18 443
46 601
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
96
96
Own funds 1 January 2023
21 388
4 643
16 864
42 896
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
17 811
45 185
¹ Implementation effects due to changes in IFRS Accounting Standards
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
96
96
Own funds 1 January 2023
21 388
4 643
16 864
42 896
Income before other income and expenses
428
-969
440
-101
Actuarial gains and losses on defined benefits pension schemes
-88
-88
Proportion of other comprehensive income on application of the equity method
-59
-59
Adjustment of the insurance liabilities
13
13
Tax on other income and expenses that will not be reclassified to profit or loss
22
22
Total other income and expenses that will not be reclassified to profit or loss
-111
-111
Total comprehensive income
428
-969
329
-213
Owners equity contribution recieved
1 162
1 162
Total transactions with owners
1 162
1 162
Own funds 31 December 2023
22 978
3 674
17 193
43 845
¹ Implementation effects due to changes in IFRS Accounting Standards
Statement of cash flowsKommunal Landspensjonskasse
NOK MILLIONS
01.01.2024 -30.09.2024
01.01.2023 -30.09.2023
01.01.2023 -31.12.2023
Net cashflow from operational activities
-661
-408
-341
Net cashflow from investment activities ¹
-294
-348
-468
Net cashflow from financing activities ²
1 147
821
1 032
Net changes in cash and bank deposits
192
64
223
Holdings of cash and bank deposits at start of period
1 141
918
918
Holdings of cash and bank deposits at end of period
1 334
982
1 141
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 01.01.2024 – 30.09.2024. 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 2023, 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 2023. 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. Reference is made to note 3 “Important accounting estimates and valuations” in the annual report for 2023 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 2024
Q3 2023
01.01.2024 -30.09.2024
01.01.2023 -30.09.2023
01.01.2023 -31.12.2023
Gross premiums due
14 538
8 930
51 794
59 941
70 234
Transfer of premium reserves from others
0
0
1
91
92
Total premium income
14 538
8 930
51 795
60 032
70 326
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. During the third quarter of 2024, no changes have been made to the models used to calculate the expected loss. The total net loss provisions as of 30.09.24 is reduced by NOK 3,3 million compared to 01.01.24.
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)
30.09.2024
30.09.2023
31.12.2023
stage 1
stage 2
stage 3
Total stage 1-3
Total stage 1-3
Total stage 1-3
Opening balance ECL 01.01.
24 474
3 264
0
27 738
33 832
33 832
Transfer to stage 1 during Q3
0
0
0
0
0
0
Transfer to stage 2 during Q3
0
0
0
0
0
0
Transfer to stage 3 during Q3
0
0
0
0
0
0
Net changes
391
-449
0
-58
-4 671
-3 803
New losses
1 493
0
0
1 493
555
4 497
Write-offs
-376
0
0
-376
-763
-6 788
Closing balance ECL 30.09./31.12.
25 982
2 815
0
28 797
28 953
27 738
Change (01.01. - 30.09./31.12.)
1 508
-449
0
1 059
-4 879
-6 094
Expected credit loss (ECL) loans and receivables at amortised cost- all segments
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
30.09.2024
30.09.2023
31.12.2023
stage 1
stage 2
stage 3
Total stage 1-3
Total stage 1-3
Total stage 1-3
Opening balance ECL 01.01.
4 325
10 009
175 732
190 065
5 289
5 289
Transfer to stage 1 during Q3
1
-1
0
0
0
0
Transfer to stage 2 during Q3
0
0
0
0
0
0
Transfer to stage 3 during Q3
0
0
0
0
0
0
Net changes
-581
-9 938
6 180
-4 339
232 112
184 303
New losses
129
0
0
129
281
653
Write-offs
-159
0
0
-159
-89
-180
Closing balance ECL 30.09./31.12.
3 715
70
181 911
185 696
237 594
190 065
Change (01.01. - 30.09./31.12.)
-610
-9 939
6 180
-4 369
232 305
184 776
Expected credit loss (ECL) - segments excluded from the balance sheet
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
30.09.2024
30.09.2023
31.12.2023
stage 1
stage 2
stage 3
Total stage 1-3
Total stage 1-3
Total stage 1-3
Opening balance ECL 01.01.
0
0
0
0
0
0
Transfer to stage 1 during Q3
0
0
0
0
0
0
Transfer to stage 2 during Q3
0
0
0
0
0
0
Transfer to stage 3 during Q3
0
0
0
0
0
0
Net changes
0
1
0
1
18
0
New losses
0
0
0
0
0
0
Write-offs
0
0
0
0
-18
0
Closing balance ECL 30.09./31.12.
0
1
0
1
0
0
Change (01.01. - 30.09./31.12.)
0
1
0
0
0
0
Book value fixed-income securities measured at amortised cost
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
30.09.2024
30.09.2023
31.12.2023
stage 1
stage 2
stage 3
Total stage 1-3
Total stage 1-3
Total stage 1-3
Opening balance 01.01.
220 181 807
6 751 897
1 458 606
228 392 310
215 135 762
215 135 762
Transfer to stage 1 during Q3
0
0
0
0
0
0
Transfer to stage 2 during Q3
0
0
0
0
0
0
Transfer to stage 3 during Q3
0
0
0
0
0
0
Net changes
6 795 650
-578 577
-1 458 606
4 758 467
3 507 804
11 240 660
New fixed-income securities
9 258 281
0
0
9 258 281
14 507 975
16 777 244
Write-offs
-3 949 463
0
0
-3 949 463
-6 921 083
-14 761 356
Fixed-income securities at amortised cost 30.09./31.12.
232 286 275
6 173 320
0
238 459 596
226 230 457
228 392 310
Book value ECL
-25 982
-2 815
0
-28 797
-28 953
-27 738
Book value fixed-income securities at amortised cost 30.09./31.12.
232 260 294
6 170 505
0
238 430 799
226 201 504
228 364 572
Book value loans and receivables at amortised cost- all segments
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
30.09.2024
30.09.2023
31.12.2023
stage 1
stage 2
stage 3
Total stage 1-3
Total stage 1-3
Total stage 1-3
Opening balance 01.01.
81 067 106
466 828
622 592
82 156 525
78 253 630
78 253 630
Transfer to stage 1 during Q3
26 387
-26 387
0
0
0
0
Transfer to stage 2 during Q3
0
0
0
0
0
0
Transfer to stage 3 during Q3
0
0
0
0
0
0
Net changes
-2 249 232
-361 486
457 806
-2 152 912
-1 350 565
-2 201 927
New loans
7 897 989
0
0
7 897 989
8 773 423
12 133 524
Write-offs
-2 966 341
-3 154
-1 118
-2 970 613
-4 724 791
-6 028 701
Loans and receivables measured at amortised cost 30.09./31.12.
83 775 909
75 800
1 079 280
84 930 989
80 951 697
82 156 525
Book value ECL
-3 715
-70
-181 911
-185 696
-237 594
-190 065
Book value loans and receivables measured at amortised cost 30.09./31.12.
83 772 194
75 731
897 369
84 745 294
80 714 104
81 966 460
Book value loans and receivables – all segments excluded from the balance sheet
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
30.09.2024
30.09.2023
31.12.2023
stage 1
stage 2
stage 3
Total stage 1-3
Total stage 1-3
Total stage 1-3
Opening balance 01.01.
61 813
2 783
0
64 596
71 818
71 818
Transfer to stage 1 during Q3
683
-683
0
0
0
0
Transfer to stage 2 during Q3
-2 000
2 000
0
0
0
0
Transfer to stage 3 during Q3
0
0
0
0
0
0
Net changes
-118
0
0
-118
-5 794
-4 347
New loans
0
0
0
0
0
0
Write-offs
-18 897
0
0
-18 897
0
-2 875
Book value loans and receivables - excluded from the balance sheet 30.09./31.12.
41 481
4 100
0
45 581
66 023
64 596
Note 4 Claims
NOK MILLIONS
Q3 2024
Q3 2023
01.01.2024 -30.09.2024
01.01.2023 -30.09.2023
01.01.2023 -31.12.2023
Claims paid
6 888
6 657
20 601
19 376
26 122
Transfers of premium reserves to others
4
4
2 423
2 125
2 139
Total claims
6 892
6 661
23 024
21 501
28 261
Note 5 Insurance-related operating expenses
NOK MILLIONS
Q3 2024
Q3 2023
01.01.2024 -30.09.2024
01.01.2023 -30.09.2023
01.01.2023 -31.12.2023
Personnel costs
247
192
662
619
882
Depreciation
75
57
203
167
224
Other operating expenses
71
84
322
307
406
Total insurance-related operating expenses
394
333
1 187
1 093
1 512
Note 6 Value-adjustment investment property
The portfolio of investment properties, including investment properties owned via subsidiaries, has been valued as at 30. September 2024.
NOK MILLIONS
Q3 2024
Q3 2023
01.01.2024 -30.09.2024
01.01.2023 -30.09.2023
01.01.2023 -31.12.2023
Value adjustment incl. foreign exchange
1 236
-4 519
656
-3 957
-4 422
Foreign exchange effect on hedging
-935
910
-1 143
-1 637
-1 969
Net value adjustment incl. exchange hedging
301
-3 609
-486
-5 593
-6 391
Note 7 Pension obligations
NOK MILLIONS
30.09.2024
30.09.2023
31.12.2023
Capitalized net liability 01.01.
572
524
524
Capitalized pension costs
101
90
120
Capitalized financial costs
15
14
19
Actuarial gains and losses
-135
-219
88
Premiums / contributions received
-86
-157
-179
Capitalized net liability 30.09. / 31.12.
468
252
572
ASSUMPTIONS
30.09.2024
30.09.2023
31.12.2023
Discount rate
3.25 %
4.00 %
3.10 %
Salary growth
3.50 %
4.00 %
3.50 %
The National Insurance basic amount (G)
3.25 %
3.50 %
3.25 %
Pension increases
2.80 %
2.90 %
2.80 %
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 reduce the pension liability for employees with NOK 135 million as of 30.09.2024. The change is recognized in "Total other income and expenses that will not be reclassified to profit or loss".
Note 8 Fair value hierarchy
30.09.2024 NOK MILLIONS
Level 1
Level 2
Level 3
Total
FINANCIAL ASSETS BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Certificates
0
874
0
874
Bonds
52
8 252
0
8 304
Fixed-income funds
3 465
0
0
3 465
Fixed-income securities
3 517
9 125
0
12 642
Loans and receivables
1 190
227
0
1 417
Shares
0
0
4
4
Shares and units
0
0
4
4
Financial derivatives
0
512
0
512
Other financial assets
0
0
0
0
Total corporate portfolio
4 707
9 864
4
14 575
COMMON PORTFOLIO
Certificates
2 707
5 814
0
8 521
Bonds
19 105
28 583
0
47 688
Fixed-income funds
22 607
11 632
16 765
51 004
Fixed-income securities
44 419
46 029
16 765
107 213
Loans and receivables
13 943
950
0
14 893
Shares
90 547
2 296
5 855
98 698
Equity funds
106 737
0
38
106 775
Property funds
0
2 650
8 611
11 261
Special funds
0
3 391
1 601
4 992
Private Equity
0
0
47 585
47 585
Shares and units
197 284
8 337
63 690
269 311
Financial derivatives
0
1 814
0
1 814
Other financial assets
0
529
0
529
Total common portfolio
255 646
57 659
80 455
393 760
INVESTMENT OPTION PORTFOLIO
Fixed-income funds
305
9
0
315
Fixed-income securities
305
9
0
315
Loans and receivables
28
0
0
28
Equity funds
1 267
0
0
1 267
Property funds
0
0
42
42
Special funds
0
15
0
15
Shares and units
1 267
15
42
1 324
Financial derivatives
0
1
0
1
Other financial assets
0
0
0
0
Total investment option portfolio
1 601
25
42
1 668
Total financial assets valued at fair value
261 954
67 548
80 501
410 003
CORPORATE PORTFOLIO
Buildings and other real estate
0
0
1 322
1 322
Total buildings and other real estate
0
0
1 322
1 322
FINANCIAL LIABILITIES BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Financial derivatives
0
41
0
41
Debt to credit institutions
479
0
0
479
Total corporate portfolio
479
41
0
520
COMMON PORTFOLIO
Financial derivatives
0
971
0
971
Debt to credit institutions
669
0
0
669
Total common portfolio
669
971
0
1 640
INVESTMENT OPTION PORTFOLIO
Financial derivatives
0
8
0
8
Debt to credit institutions
0
0
0
0
Total investment option portfolio
0
8
0
8
Total financial liabilities at fair value
1 148
1 019
0
2 167
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
Buildings and other real estate
0
0
1 384
1 384
Total buildings and other real estate
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
31.12.2023 NOK MILLIONS
Level 1
Level 2
Level 3
Total
FINANCIAL ASSETS BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Certificates
0
440
0
440
Bonds
0
7 975
0
7 975
Fixed-income funds
3 344
0
0
3 344
Fixed-income securities
3 344
8 416
0
11 760
Loans and receivables
913
219
0
1 132
Shares
0
0
4
4
Shares and units
0
0
4
4
Financial derivatives
0
527
0
527
Other financial assets
0
1
0
1
Total corporate portfolio
4 258
9 162
4
13 423
COMMON PORTFOLIO
Certificates
1 578
1 618
0
3 196
Bonds
20 668
28 533
0
49 202
Fixed-income funds
24 743
11 070
16 041
51 854
Fixed-income securities
46 989
41 221
16 041
104 252
Loans and receivables
19 960
829
0
20 788
Shares
68 712
2 134
3 403
74 248
Equity funds
89 660
0
37
89 696
Property funds
0
1 980
8 176
10 156
Special funds
0
2 497
0
2 497
Private Equity
0
0
42 470
42 470
Shares and units
158 371
6 611
54 085
219 067
Financial derivatives
0
9 814
0
9 814
Other financial assets
0
790
0
790
Total common portfolio
225 320
59 265
70 126
354 711
INVESTMENT OPTION PORTFOLIO
Fixed-income funds
249
9
0
257
Fixed-income securities
249
9
0
257
Loans and receivables
102
0
0
102
Equity funds
1 048
0
0
1 048
Property funds
0
0
43
43
Special funds
0
14
0
14
Shares and units
1 048
14
43
1 104
Financial derivatives
0
24
0
24
Other financial assets
0
0
0
0
Total investment option portfolio
1 398
47
43
1 488
Total financial assets valued at fair value
230 976
68 473
70 173
369 622
CORPORATE PORTFOLIO
Buildings and other real estate
0
0
1 301
1 301
Total buildings and other real estate
0
0
1 301
1 301
FINANCIAL LIABILITIES BOOKED AT FAIR VALUE
CORPORATE PORTFOLIO
Financial derivatives
0
0
0
0
Debt to credit institutions
578
0
0
578
Total corporate portfolio
578
0
0
578
COMMON PORTFOLIO
Financial derivatives
0
1 137
0
1 137
Debt to credit institutions
6 126
0
0
6 126
Total common portfolio
6 126
1 137
0
7 263
INVESTMENT OPTION PORTFOLIO
Financial derivatives
0
1
0
1
Debt to credit institutions
23
0
0
23
Total investment option portfolio
23
1
0
25
Total financial liabilities at fair value
6 727
1 139
0
7 866
Changes in Level 3 shares, unlisted CORPORATE PORTFOLIO
Book value 30.09.2024
Book value 30.09.2023
Book value 31.12.2023
Opening balance 01.01.
4
6
6
Sold
0
0
0
Bought
0
0
0
Unrealised changes
0
0
-2
Closing balance 30.09./31.12.
4
6
4
Realised gains/losses
0
0
0
Changes in Level 3 shares, unlisted COMMON PORTFOLIO
Book value 30.09.2024
Book value 30.09.2023
Book value 31.12.2023
Opening balance 01.01.
3 403
3 262
3 262
Sold
-37
-25
-43
Bought
2 483
87
84
Unrealised changes
6
118
100
Closing balance 30.09./31.12.
5 855
3 441
3 403
Realised gains/losses
-3
-12
-27
Changes in Level 3 equity funds, unlisted COMMON PORTFOLIO
Book value 30.09.2024
Book value 30.09.2023
Book value 31.12.2023
Opening balance 01.01.
37
60
60
Sold
0
0
0
Bought
0
0
0
Unrealised changes
1
-9
-23
Closing balance 30.09./31.12.
38
51
37
Realised gains/losses
0
0
0
Changes in Level 3, private equity, property funds, fixed income funds and special funds COMMON PORTFOLIO
Book value 30.09.2024
Book value 30.09.2023
Book value 31.12.2023
Opening balance 01.01.
66 687
52 703
52 703
Sold
-4 596
-2 379
-4 798
Bought
7 202
9 255
15 886
Unrealised changes
5 270
3 802
2 895
Closing balance 30.09./31.12.
74 562
63 380
66 687
Realised gains/losses
1 433
973
1 844
Changes in Level 3, property funds INVESTMENT OPTION PORTFOLIO
Book value 30.09.2024
Book value 30.09.2023
Book value 31.12.2023
Opening balance 01.01.
43
48
48
Sold
-2
-1
-2
Bought
0
0
0
Unrealised changes
1
-2
-3
Closing balance 30.09./31.12.
42
45
43
Realised gains/losses
0
0
0
Changes in Level 3, buildings and other real estate CORPORATE PORTFOLIO
Book value 30.09.2024
Book value 30.09.2023
Book value 31.12.2023
Opening balance 01.01.
1 301
1 392
1 392
Sold
0
-3
-3
Bought
21
0
0
Unrealised changes
0
31
-50
Other
0
-35
-39
Closing balance 30.09./31.12.
1 322
1 384
1 301
Realised gains/losses
0
0
0
Total level 3
81 823
68 308
71 474
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 "buildings and other real estate". Unrealised changes are reflected in the line «Value changes on investments» in the different portfolios in the income statement.
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. Fixed income securities priced on the basis of interest rate paths are examples of instruments at level 2.
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 4 091 million as of 30.09.2024 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 376 million moved from Level 1 to Level 2 and NOK 14 million moved from level 1 to level 3. In addition, NOK 7 million moved from level 2 to level 1 and NOK 109 million from level 2 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.
30.09.2024 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
5 352
5 904
70 403
68 090
382
370
76 137
74 364
Accrued not due interest
98
98
1 134
1 134
5
5
1 238
1 238
Foreign bonds
16 797
15 645
141 278
137 279
621
598
158 696
153 522
Accrued not due interest
134
134
2 217
2 217
9
9
2 360
2 360
Total fixed-income securities
22 382
21 782
215 032
208 720
1 017
981
238 431
231 484
OTHER LOANS AND RECEIVABLES
Secured loans
0
0
2 564
2 496
0
0
2 564
2 496
Lending with public sector guarantee
0
0
75 215
74 377
0
0
75 215
74 377
Loans abroad secured by mortgage and local government guarantee
0
0
6 233
6 287
0
0
6 233
6 287
Accrued not due interest
0
0
733
733
0
0
733
733
Total other loans and receivables
0
0
84 745
83 892
0
0
84 745
83 892
Total financial assets at amortized cost
22 382
21 782
299 778
292 612
1 017
981
323 176
315 375
ASSETS – AT FAIR VALUE
EQUITY CAPITAL INSTRUMENTS
Norwegian shares
4
4
16 047
16 047
0
0
16 051
16 051
Foreign shares
0
0
82 651
82 651
0
0
82 651
82 651
Total shares
4
4
98 698
98 698
0
0
98 702
98 702
Property funds
0
0
11 261
11 261
42
42
11 304
11 304
Norwegian equity funds
0
0
105 909
105 909
1 267
1 267
107 177
107 177
Foreign equity funds
0
0
51 788
51 788
0
0
51 788
51 788
Total equity fund units
0
0
168 959
168 959
1 309
1 309
170 268
170 268
Norwegian alternative investments
0
0
1 654
1 654
15
15
1 668
1 668
Foreign alternative investments
0
0
0
0
0
0
0
0
Total alternative investments
0
0
1 654
1 654
15
15
1 668
1 668
Total shares and units
4
4
269 311
269 311
1 324
1 324
270 639
270 639
DEBT INSTRUMENTS AT FAIR VALUE
Norwegian bonds
7 755
7 755
27 016
27 016
0
0
34 771
34 771
Foreign bonds
479
479
20 187
20 187
0
0
20 666
20 666
Accrued not due interest
69
69
485
485
0
0
554
554
Norwegian fixed-income funds
3 434
3 434
23 986
23 986
311
311
27 731
27 731
Foreign fixed-income funds
0
0
26 824
26 824
0
0
26 824
26 824
Accrued not due interest
31
31
194
194
3
3
228
228
Norwegian certificates
868
868
7 785
7 785
0
0
8 653
8 653
Foreign certificates
0
0
698
698
0
0
698
698
Accrued not due interest
5
5
38
38
0
0
43
43
Fixed income securities
12 642
12 642
107 213
107 213
315
315
120 171
120 171
Norwegian loans and receivables
378
378
7 519
7 519
15
15
7 912
7 912
Foreign loans and receivables
1 039
1 039
7 373
7 373
13
13
8 426
8 426
Total loans and receivables
1 417
1 417
14 893
14 893
28
28
16 338
16 338
DERIVATIVES
Interest rate swaps
492
492
254
254
0
0
746
746
Share options
0
0
0
0
0
0
0
0
Forward exchange contracts
19
19
1 560
1 560
1
1
1 580
1 580
Total financial derivatives classified as assets
512
512
1 814
1 814
1
1
2 326
2 326
OTHER FINANCIAL ASSETS
Other financial assets
0
0
529
529
0
0
530
530
Total financial assets valued at fair value
14 575
14 575
393 760
393 760
1 668
1 668
410 003
410 003
LIABILITIES
DERIVATIVES
Interest rate swaps
0
0
51
51
0
0
51
51
Forward exchange contracts
41
41
920
920
8
8
968
968
Total financial derivatives classified as liabilities
41
41
971
971
8
8
1 019
1 019
SUBORDINATED LOAN CAPITAL
Subordinated loan capital
3 487
3 541
0
0
0
0
3 487
3 541
Hybrid Tier 1 securities
1 489
1 489
0
0
0
0
1 489
1 489
Total subordinated loan capital etc.
4 976
5 030
0
0
0
0
4 976
5 030
LIABILITIES TO CREDIT INSTITUTIONS
Repos
0
0
0
0
0
0
0
0
Norwegian call money ¹
0
0
116
116
0
0
116
116
Foreign call money ¹
479
479
553
553
0
0
1 032
1 032
Total liabilities to credit institutions
479
479
669
669
0
0
1 148
1 148
¹ Call money is collateral for paid/received margin related to derivatives.
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.
31.12.2023 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
5 720
5 469
65 501
63 444
333
317
71 554
69 231
Accrued not due interest
89
89
874
874
4
4
967
967
Foreign bonds
15 288
14 671
137 631
131 700
641
609
153 560
146 980
Accrued not due interest
158
158
2 114
2 114
11
11
2 283
2 283
Total fixed-income securities
21 256
20 388
206 120
198 132
989
941
228 365
219 461
OTHER LOANS AND RECEIVABLES
Secured loans
0
0
2 782
2 689
0
0
2 782
2 689
Lending with public sector guarantee
0
0
73 602
72 237
0
0
73 602
72 237
Loans abroad secured by mortgage and local government guarantee
0
0
4 991
5 040
0
0
4 991
5 040
Accrued not due interest
0
0
591
591
0
0
591
591
Total other loans and receivables
0
0
81 966
80 556
0
0
81 966
80 556
Total financial assets at amortized cost
21 256
20 388
288 086
278 688
989
941
310 331
300 017
ASSETS – AT FAIR VALUE
EQUITY CAPITAL INSTRUMENTS
Norwegian shares
4
4
12 271
12 271
0
0
12 275
12 275
Foreign shares
0
0
61 977
61 977
0
0
61 977
61 977
Total shares
4
4
74 248
74 248
0
0
74 252
74 252
Property funds
0
0
10 156
10 156
43
43
10 198
10 198
Norwegian equity funds
0
0
89 369
89 369
1 048
1 048
90 417
90 417
Foreign equity funds
0
0
42 797
42 797
0
0
42 797
42 797
Total equity fund units
0
0
142 322
142 322
1 090
1 090
143 412
143 412
Norwegian alternative investments
0
0
2 497
2 497
14
14
2 511
2 511
Foreign alternative investments
0
0
0
0
0
0
0
0
Total alternative investments
0
0
2 497
2 497
14
14
2 511
2 511
Total shares and units
4
4
219 067
219 067
1 104
1 104
220 175
220 175
DEBT INSTRUMENTS AT FAIR VALUE
Norwegian bonds
7 064
7 064
29 484
29 484
0
0
36 548
36 548
Foreign bonds
846
846
19 205
19 205
0
0
20 052
20 052
Accrued not due interest
65
65
512
512
0
0
577
577
Norwegian fixed-income funds
3 344
3 344
26 222
26 222
257
257
29 824
29 824
Foreign fixed-income funds
0
0
25 632
25 632
0
0
25 632
25 632
Accrued not due interest
0
0
0
0
0
0
0
0
Norwegian certificates
435
435
2 272
2 272
0
0
2 707
2 707
Foreign certificates
0
0
898
898
0
0
898
898
Accrued not due interest
5
5
26
26
0
0
31
31
Fixed income securities
11 760
11 760
104 252
104 252
257
257
116 269
116 269
Norwegian loans and receivables
414
414
14 977
14 977
25
25
15 417
15 417
Foreign loans and receivables
718
718
5 811
5 811
77
77
6 606
6 606
Total loans and receivables
1 132
1 132
20 788
20 788
102
102
22 023
22 023
DERIVATIVES
Interest rate swaps
437
437
963
963
0
0
1 400
1 400
Share options
0
0
0
0
0
0
0
0
Forward exchange contracts
89
89
8 851
8 851
24
24
8 964
8 964
Total financial derivatives classified as assets
527
527
9 814
9 814
24
24
10 365
10 365
OTHER FINANCIAL ASSETS
Other financial assets
1
1
790
790
0
0
791
791
Total financial assets valued at fair value
13 423
13 423
354 711
354 711
1 488
1 488
369 622
369 622
LIABILITIES
DERIVATIVES
Interest rate swaps
0
0
57
57
0
0
57
57
Forward exchange contracts
0
0
1 081
1 081
1
1
1 082
1 082
Total financial derivatives classified as liabilities
0
0
1 137
1 137
1
1
1 139
1 139
SUBORDINATED LOAN CAPITAL
Subordinated loan capital
3 361
3 327
0
0
0
0
3 361
3 327
Hybrid Tier 1 securities
1 434
1 434
0
0
0
0
1 434
1 434
Total subordinated loan capital etc.
4 795
4 761
0
0
0
0
4 795
4 761
LIABILITIES TO CREDIT INSTITUTIONS
Repos
0
0
0
0
0
0
0
0
Norwegian call money ¹
0
0
1 277
1 277
0
0
1 277
1 277
Foreign call money ¹
578
578
4 849
4 849
23
23
5 450
5 450
Total liabilities to credit institutions
578
578
6 126
6 126
23
23
6 727
6 727
¹ Call money is collateral for paid/received margin related to derivatives.
Note 10 Leases
NOK MILLIONS
30.09.2024
30.09.2023
31.12.2023
RIGHT-OF-USE ASSETS
Property
Opening balance 01.01.
756
865
865
Depreciation
-81
-81
-108
Deduction
0
0
-2
Closing balance 30.09. / 31.12.
675
784
756
NOK MILLIONS
30.09.2024
30.09.2023
31.12.2023
LEASE LIABILITIES
Property
Opening balance 01.01.
822
920
920
Repayments
-75
-72
-96
Deduction
0
0
-2
Closing balance 30.09. / 31.12.
747
848
822
NOK MILLIONS
Q3 2024
Q3 2023
01.01.2024 -30.09.2024
01.01.2023 -30.09.2023
01.01.2023 -31.12.2023
Property
Interest expense lease liabilities
5
5
15
16
21
Interest expense lease liabilities
5
5
15
16
21
Note 11 Liabilities
NOK MILLIONS
30.09.2024
30.09.2023
31.12.2023
Short-term liability securities
5 269
9 644
729
Advance tax-deduction pension scheme
553
522
577
Accounts payable
10
37
13
Derivatives
1 019
1 414
1 139
Debt to credit institutions
1 148
956
6 727
Liabilities related to direct insurance
556
2 497
1 279
Other liabilities
36
26
44
Total liabilities
8 591
15 096
10 508
Note 12 Presentation of assets and liabilities that are subject to net settlement
30.09.2024 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
2 326
0
2 326
-523
-1 149
-1 010
32
Total
2 326
0
2 326
-523
-1 149
-1 010
32
PORTFOLIO ALLOCATION OF ASSETS
Total assets – common portfolio
1 814
0
1 814
-522
-669
-1 010
0
Total assets – corporate portfolio
512
0
512
0
-480
0
32
Total assets – investment option portfolio
1
0
1
-1
0
0
0
Total
2 326
0
2 326
-523
-1 149
-1 010
32
LIABILITIES
Financial derivates
1 019
0
1 019
-523
-56
-328
139
Total
1 019
0
1 019
-523
-56
-328
139
PORTFOLIO ALLOCATION OF LIABILITIES
Total liabilities – common portfolio
971
0
971
-522
-56
-328
91
Total liabilities – corporate portfolio
41
0
41
0
0
0
40
Total liabilities – investment option portfolio
8
0
8
-1
0
0
7
Total
1 019
0
1 019
-523
-56
-328
139
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
31.12.2023 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
10 365
0
10 365
-1 077
-6 716
-2 755
149
Total
10 365
0
10 365
-1 077
-6 716
-2 755
149
PORTFOLIO ALLOCATION OF ASSETS
Total assets – common portfolio
9 814
0
9 814
-1 076
-6 114
-2 755
100
Total assets – corporate portfolio
527
0
527
0
-578
0
32
Total assets – investment option portfolio
24
0
24
-1
-23
0
17
Total
10 365
0
10 365
-1 077
-6 716
-2 755
149
LIABILITIES
Financial derivates
1 139
0
1 139
-1 077
-62
-5
0
Total
1 139
0
1 139
-1 077
-62
-5
0
PORTFOLIO ALLOCATION OF LIABILITIES
Total liabilities – common portfolio
1 137
0
1 137
-1 076
-62
-5
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
1 139
0
1 139
-1 077
-62
-5
0
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 own funds appear from the Solvency II balance sheet and Hybrid Tier 1 securities. Tier 2 own funds consist of subordinated loans, the risk equalization fund and ancillary own funds. The Financial Supervisory Authority of Norway has accepted that KLP’s right to call in further member contribution if necessary, which is laid down in the Company’s articles of association, can be counted as ancillary own funds, the amount corresponding to 2.5 per cent of the Company’s premium reserve. Capital that may be included in Tier 2 own funds 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 351 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 351 per cent.
30.09.2024
30.09.2023
31.12.2023
SOLVENCY II-SCR RATIO
351 %
368 %
346 %
NOK BILLIONS
30.09.2024
30.09.2023
31.12.2023
SIMPLIFIED SOLVENCY II FINANCIAL POSITION STATEMENT
Assets, book value
850
771
786
Added values - hold-to-maturity portfolio/loans and receivables
-7
-17
-9
Added values - other lending
-1
-2
-1
Other added/lesser values
0
0
0
Deferred tax asset
0
0
0
Total assets - solvency II
842
751
776
NOK BILLIONS
30.09.2024
30.09.2023
31.12.2023
SIMPLIFIED SOLVENCY II FINANCIAL POSITION STATEMENT
Best estimate
767
674
702
Risk margin
12
10
11
Hybrid Tier 1 securities/Subordinated loan capital
5
4
5
Other liabilities
10
17
12
Deferred tax liabilities
0
0
0
Total liabilities - solvency II
794
705
731
Excess of assets over liabilities
48
47
45
- Deferred tax asset
0
0
0
- Risk equalization fund
-4
-5
-4
+ Hybrid Tier 1 securities
1
1
1
Tier 1 basic own funds
45
43
42
Total eligible tier 1 own funds
45
43
42
Subordinated loans
3
3
3
Risk equalization fund
4
5
4
Tier 2 basic own funds
7
8
7
Ancillary own funds
15
14
14
Tier 2 ancillary own funds
15
14
14
Deduction for max. eligible tier 2 own funds
-15
-15
-14
Total eligible tier 2 own funds
8
7
7
Deferred tax asset
0
0
0
Total eligible tier 3 own funds
0
0
0
Eligible own funds to meet the solvency capital requirement
53
50
50
Market risk
175
131
142
Counterparty risk
3
3
3
Life risk
124
122
113
Diversification
-62
-55
-55
Operational risk
3
3
3
Loss absorbing capacity of technical provisions
-226
-190
-191
Loss absorbing capacity deferred tax
-1
-1
-1
Solvency capital requirement (SCR)
15
14
14
Absolute floor of the MCR
0
0
0
Linear minimum capital requirement (MCR_linear)
2
1
4
Minimum
4
3
4
Maximum
7
6
6
Minimum capital requirement (MCR)
4
3
4
Eligible own funds to meet the minimum capital requirement