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.”

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