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.

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