Finland’s Ilmarinen generates €4.7bn return in H1 2021

Finnish earnings-related pension provider, Ilmarinen, made an 8.9 per cent return, equating to €4.7bn, in the first half of 2021.

Publishing its interim results, the provider attributed the positive results to the strong performance of the equity markets. The market value of investments grew to €57.5bn. Over the period, €3.2bn was paid in pensions and net customer acquisition rose to €116m.

Its solvency capital strengthened to €15.1bn, up from €12.5bn and the solvency ratio to 134.6 per cent, up from 130.2 per cent.

Commenting, Ilmarinen CEO and president, Jouko Pölönen, said: “The first half of the year was strong for Ilmarinen, both with regard to investment activities and customer acquisition, and customers’ payrolls began to grow.

“The momentum on the investment markets was strong in H1. The dramatic global economic recovery from the downturn caused by the coronavirus, companies’ strong earnings performance, and massive financial and monetary policy stimulus measures have supported the positive performance of the equity markets.”

Of the main asset classes in Ilmarinen’s investment portfolio, equity investments generated the best return at 16.9 per cent. The return on fixed income investments was 2.6 per cent, on real estate investments 2.1 per cent and -0.5 per cent on other investments. The long-term average nominal return on investments was 6.1 per cent, corresponding to a 4.6 per cent annual real return.

In addition, in the area of sustainability, Ilmarinen’s goal is to achieve a carbon-neutral investment portfolio by the end of 2035. It co-operates with other investors and, in the spring, joined the international Institutional Investors Group on Climate Change (IIGCC) network in which investor organisations work to develop measures for achieving carbon-neutral portfolios.

Ilmarinen is also part of the Climate Leadership Coalition (CLC) initiative related to the global pricing of carbon and a signatory in the investors’ call to ramp up governments’ climate measures. In April, Ilmarinen joined its asset management partner in a new low-carbon corporate bond fund as a pioneer investor with a sum of €170m.

    Share Story:

Recent Stories

Podcast: The benefits of private equity in pension fund portfolios
The outbreak of the Covid-19 pandemic, in which stock markets have seen increased volatility, combined with global low interest rates has led to alternative asset classes rising in popularity. Private equity is one of the top runners in this category, and for good reason.

In this podcast, Munich Private Equity Partners Managing Director, Christopher Bär, chats to European Pensions Editor, Natalie Tuck, about the benefits private equity investments can bring to pension fund portfolios and the best approach to take.

Podcast - The power of three: Using Common Contractual Funds to improve tax outcomes for investors
Large asset owners are still investing in equities in a way where they are taxed on their income. The implication is that they get a poorer return. They need to, and can, improve this, but how?

In this podcast, AMX Head of Client and Manager Development, Aaron Overy, and AMX Product Tax Specialist, Kevin Duggan, discuss with European Pensions Editor, Natalie Tuck, about three options to help ensure good withholding tax outcomes for institutional investors.
Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows

Europe’s pensions challenges
Francesca Fabrizi meets Matti Leppälä, Secretary General and CEO of PensionsEurope, to discuss the key aims and objectives of the association today.