Finland’s Ilmarinen makes 5.8% return in 2023

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.

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