Finland’s OP Financial Group transfers pension fund to Ilmarinen
Written by Natalie Tuck
Finland’s OP Financial Group is undertaking a buyout of its OP Bank Group pension fund with Ilmarinen Mutual Pension Insurance Company.
Publishing its interim results today, 1 August 2018, OP Financial Group said the transfer will improve earnings by around €240m for the year.
The transaction is still awaiting regulatory approval, and will also improve the capital base. It is expected that the transfer of the pension liability will take place at the end of the year. OP Financial Group said its final effect on earnings will depend on developments in bond markets towards the end of the year.
OP Financial Group reported a 24 per cent drop in its first-half pre-tax profit, which it put down to rising costs and lower investment income. However, with the pension transfer, it is expecting better full-year results than previously forecast.
The lender said pretax profit in January to June period fell by 24 per cent year on year to €425m.