Finnish earnings-related pension provider, Ilmarinen, made a return of 5.8 per cent in 2023, equivalent to €3.3bn, it has revealed.

Publishing its full-year results, Ilmarinen said it also improved its cost efficiency in the year, which directly benefited savers. For example, at the start of 2024 it reduced the management cost of its employment pension insurance premium by 20 per cent.

“2023 was a good year for Ilmarinen,” Ilmarinen CEO, Jouko Pölönen, said. “For us, managing pension security responsibly means that we want to constantly improve our operations and efficiency. Already in 2022, we became the most efficient company in the field, measured by the treatment cost ratio.

“Last year, the treatment costs used for operational activities continued to decrease, despite inflation, by 5.3 per cent, while fee income increased by 4 per cent. Above all, our customers will benefit from efficiency, but it is also important in terms of the efficiency of the entire pension system.”

Equity investments performed best over the year (10.1 per cent) and interest rate and credit risk investments (8.4 per cent). However, the return on real estate investments remained negative (-13.5 per cent).

“Listed shares and interest rate and credit risk investments yielded very well in 2023, and the positive momentum accelerated as the year drew to a close. It was a difficult year for Finnish shares, and especially the weak return of the real estate portfolio reduced the otherwise excellent investment return,” Ilmarinen vice president responsible for investments, Mikko Mursula, said.

Its solvency capital strengthened to €12.2bn and the solvency ratio was 125.4 per cent.

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