NORWAY - Kommunal Landspensjonskasse says it made a value-adjusted return in the first quarter of 1.9%, while profits almost doubled to 973 million crowns (119.1 million euros).

“Value-adjusted return for the fist quarter was 1.9%,” mutually owned KLP said. “If the value changes for hold-to-maturity bonds are included the return on capital was 2.4%.” Total assets rose to 130.1 billion crowns from 126.4 billion at the start of the year.

Profit before allocations was 973 million crowns from 495 million crowns in the same period last year.

It said: “The company's long-term investment profile focuses on predictable and secure returns on the clients' pension assets.”

“Investment assets are now placed so that KLP can withstand a long period with low interest rates but nevertheless will not experience major profitability impact from rapidly rising interest rates.”

“We are satisfied with the financial results and the room the company has for manoeuvre,” said chief executive Bjørn Kristoffersen.

“KLP is in a positive development phase in which we are investing significant resources in product development, efficiency improvement and continuing strengthening of client relationships.”

He also commented on the prospect of changing its mutual status. “We expect to have important clarification in regard to conversion of the company during the year. With this, the company will be in the best position to succeed in maintaining its place as the market leader within public sector pensions in Norway.”

KLP provides funded public pension schemes for municipalities and regional authorities. It KLP pays pensions to about 130,000 pensioners.