Finland’s Ilmarinen returns 4.8% on investment portfolio in Q1

Finnish earnings-related pension provider, Ilmarinen, made a return of 4.8 per cent between 1 January and 31 March, it has revealed.

Published its first quarter results, the provider said the return on the investment portfolio was 4.8 per cent equivalent to €2.5bn. This is in stark contrast to the -7.5 per cent it faced in the same period in 2020.

The market value of investments grew to €55.4bn. The long-term average return on investments was 6.0 per cent. This corresponds to an annual real return of 4.5 per cent.

Premiums written declined to €1.4bn as customers’ payrolls decreased due to the impacts of Covid-19; €1.5bn was paid in pensions. Net customer acquisition was €93m as the net transfer rose due to good customer retention and successful customer acquisition.

The decline in Ilmarinen’s customers’ payrolls reduced loading income by €2m and the loading profit weakened to €11m. Operating expenses financed using loading income amounted to €29m.

Solvency capital strengthened to €13.9bn, and the solvency ratio to 132.8 per cent.

Ilmarinen president and CEO, Jouko Pölönen, commented: “Strong performance in Ilmarinen’s investment activities and customer acquisition continued during the first quarter. In January–March, the return on Ilmarinen’s investment portfolio was 4.8 per cent, i.e. €2.5bn. Solvency strengthened to 132.8 per cent and investment assets grew to €55bn.”

    Share Story:

Recent Stories


Podcast: Stepping up to the challenge
In the latest European Pensions podcast, Natalie Tuck talks to PensionsEurope chair, Jerry Moriarty, about his new role and the European pension policy agenda

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.

Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows