Alecta has lowest costs in the industry

Alecta distinguishes itself among life insurance companies due to its low costs. At the same time, return for the first nine months of 2006 was 5.1 per cent.

Alecta has reduced the operating expenses for its pension products still further from an already low level. The management expense ratio for the first nine months of 2006 was 0.12. This represents a continued improvement over the level for the first six months of 0.13.
Alecta’s President, Tomas Nicolin, comments: “This means that we have the lowest costs of all our competitors. Our own costs, however, are even lower. Up to now, Collectum’s costs and the costs of the parties’ information resources have been reported through Alecta. Starting next year, this will be financed differently. If we were to deduct these costs today, the management expense ratio would be 0.10. Making this adjustment, savers can more easily compare our costs with those of other life insurance companies.”

Alecta’s total return during 2006 thus far amounts to 5.1 per cent. The main explanation for this is rising stock market prices during the third quarter.
“This is a good for return for the period but it is even more important to look at our ability to create a long-term return. We have achieved an average annual return of 6.6 per cent over the past five years,” says Tomas Nicolin.

The market for occupational pensions is undergoing change with the new defined contribution ITP Plan. Alecta is one of the life insurance companies participating in the tender process.

Management expense ratio
The management expense ratio is the key ratio that shows a life insurance company’s management costs in relation to assets under management.

For further information, please contact
Tomas Nicolin President, Alecta, +46 441 60 50
Cecilia Schön Jansson, Senior Vice President, Corporate Communications, Alecta,
+46 8 441 93 50, +46 70 526 93 50