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SPP Approves New Insurance Terms Of Defined Benefit Pension

To give higher expected return on invested capital

SPP Livforsakring AB, a company within the Storebrand Group, has approved changes in the insurance terms for the defined benefit based product (DB) to be offered in the Swedish market.

The changes expect to give higher expected return on invested capital and secure increased buffer capital that will result in increased expected pension payments to the policyholders.

The new insurance terms enables SPP to adapt the asset management to the long term nature of the insurance liabilities to increase the expected return in the investment portfolios. Compared to the existing practice, insurance liabilities in DB insurance contracts will be measured by using a market rate instead of a guaranteed interest rate.

The new insurance terms will be introduced from 1 January 2010. The approved changes will not have any impact in the current year.