SWEDEN - Swedish life companies' solvency ratios fell sharply during the second half, although none reported a ratio below 1, according to the regulator Finansinspektionen.

At year end, the average ratio among mutual insurers was just below 10, a nearly 40% drop compared with the end of June, when it was 16. 

The average ratio for occupational pension providers was 6, a 50% fall since the end of June, while for other life companies the ratio stood at just below 3.

The average for all providers was 8 at year-end.

Capital buffers also fell by 25% for the industry as a whole, the regulator said.

While solvency levels plunged in the first quarter, performance picked up for some providers.

Alecta's total return was 4.4% for the quarter compared with 0.2% for the same period last year, while SEB Trygg Liv Gamla was up by 4.1% compared with 1.2%. 

AMF's total return was 2.6% against 0.2% for the same period last year, with assets increasing to SEK391bn (€44bn) from SEK375.1bn at the end of the previous quarter.

In other news, Alexandra Nilsson, head of fund investments at AP6, one of the national buffer funds, has resigned.

Her resignation comes just over a month since former chief executive Marianne Dicander left after less than a year in the role.

Nilsson has worked at AP6 since 1998, when she started as chief legal counsel and moved to her current role in 2007.

Karl Anders Falk will assume Nilsson's role on an interim basis, the fund said.