Finnish pension company Elo recorded its strongest quarterly investment return on record in the second quarter of 2026, as improved solvency supported preparations for the country’s pension reform.

Elo’s investments returned 6.4 per cent, or €2.2bn, during the first half of the year, including a 6.2 per cent return in the second quarter, which the company said was its best quarterly result in history.

The market value of Elo’s investments stood at €36.3bn at the end of June, up from €34.4bn at the end of 2025, while the company’s total result reached €1bn, compared with a €0.2bn loss in the corresponding period a year earlier.

Its solvency ratio also strengthened to 126.5 per cent, from 123.8 per cent at the end of 2025, while solvency capital remained at 1.4 times the solvency limit.

Elo CEO, Carl Pettersson, described the second quarter of 2026 as a "record-breaking year".

“Good investment results, strengthened solvency, good development in insurance sales and the use of data and analytics in our services create an excellent starting point for the rest of the year," he said.

The results came as the first phase of Finland’s pension reform took effect at the beginning of July, which Elo argued had improved its solvency position and created conditions for a controlled increase in investment risk.

Elo chief investment officer and deputy CEO, Jonna Ryhänen, revealed that the company had been preparing for the reform by deliberately increasing the equity weighting in its investment portfolio.

“Good investment return development and strengthened solvency have made this possible even before the reform came into force,” she continued.

“The share of equities in investments is now at an exceptionally high level, which supports long-term return expectations.”

Over the past 10 years, Elo’s investments have produced an average annual return of 6.5 per cent, equivalent to a real return of 4.2 per cent.

The pension company noted the strong results were achieved despite an operating environment characterised by geopolitical uncertainty, the Iran war and continued inflationary pressures.

However, Elo also pointed to signs of improvement in the Finnish economy, including stronger exports, increased investment and improved business prospects.

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