The solvency ratio of Finnish earnings-related pension providers increased to 130.7 at the end of 2025, the latest figures from the Finnish Financial Supervisory Authority (FIN-FSA) have revealed.

At the end of 2025, the solvency ratio, which is calculated by dividing pension assets by technical provisions, was 130.7 per cent. It had increased by 0.8 percentage points from the previous review in September 2025, when it stood at 129.9 per cent.

Broken down, pension insurance companies’ average solvency ratio was 130.4 per cent, while for company funds and industry-wide funds it was 142.5 per cent at the end of 2025.

In addition, FIN-FSA said the solvency capital of the Finnish earnings-related pension sector grew in 2025 due to positive returns on investment (7.7 per cent),
FIN-FSA also said the solvency limit was raised by the growth in investment assets and a higher equity allocation.

The combined solvency position, which refers to solvency capital divided by the solvency limit, remained at the level of the previous year (1.6) as solvency capital rose at the same pace as the solvency limit.

In regard to investments, FIN-FSA said the highest returns were generated by equity investments, with Finnish earnings-related pension providers allocating 56.3 per cent to the asset class in 2025.

Employee pension institutions’ resilience to equity shock remained broadly unchanged from the previous year and was at a reasonable level, the authority stated.

Overall, FIN-FSA said the solvency of Finland’s financial sector remained strong in 2025. However, it stressed that geopolitical tensions are “maintaining uncertainty” in the financial markets and are “casting a shadow over economic recovery”.

It highlighted the United States’ military strikes on Venezuela and Iran, the dispute on the status of Greenland, as well as uncertainty over US tariff policy fuelled uncertainty in the financial markets, as key challenges to the financial markets in 2025 and early 2026.

In addition, it noted that calls for easing financial sector regulation have increased recently.

Commenting, FIN-FSA director general, Tero Kurenmaa, said: “The regulatory and supervisory reforms introduced after the financial crisis have strengthened resilience and, partly due to the reforms, the financial sector has in recent years coped very well in the turbulent operating environment.

“Simplification of regulation is justifiable to enhance efficiency and clarity, and FIN-FSA supports the proposals by EU authorities to simplify the regulatory framework. Simplification must not, however, weaken the resilience of the financial sector or threaten stability.”

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