Finnish pension company Ilmarinen recorded investment returns of 6.2 per cent in the first nine months of 2026, as its portfolio reached a record market value of €71bn.

According to its interim report for January to September 2026, investment returns rose from 4.8 per cent in the corresponding period in 2025, and the market value of investments rose from €67.5bn at the end of last year.

Equity investments drove performance, returning 10.9 per cent, compared with 5.4 per cent in the same period last year.

Listed equities also performed strongly, returning 13.8 per cent, although fixed income investments posted a -1.3 per cent loss, down from 4.7 per cent a year earlier.

Ilmarinen's long-term average annual investment return since 1997 stood at 6 per cent, equivalent to a real return of 4.1 per cent, with cumulative investment returns reaching €32.6bn since 2017.

Ilmarinen CEO, Mikko Mursula, said: "The development in January–September was strong at Ilmarinen. The pension assets under our management grew by €4.2bn, and solvency strengthened. We were particularly successful in customer acquisition."

The provider's solvency position also improved during the period, with solvency capital increasing to €16.6bn from €15.5bn at the end of 2025.

Ilmarinen attributed part of the improvement in its solvency position to pension reforms that came into force in July 2026, which reduced the solvency limit and increased the scope for investment risk-taking.

The reforms also changed investment regulations, allowing Finnish pension providers to increase their equity allocations to pursue higher long-term returns.

Following the changes, Ilmarinen increased the share of equity investments in its risk allocation to 65 per cent, compared with 56 per cent at the end of 2025.

Ilmarinen investment director, Annika Ekman, commented: "We have prepared carefully for the reform and increased the share of equity investments in our risk allocation to 65 per cent. We also took advantage of the use of real estate debt made possible by the pension reform."

Ekman noted that investment market developments in the third quarter were broadly positive, supported by stronger-than-expected economic growth and corporate performance.

However, she warned that geopolitical tensions, energy sector disruptions and persistent inflation concerns continued to create uncertainty, while rising interest rates contributed to increased market nervousness towards the end of the quarter.

Meanwhile, Ilmarinen reported that it allocated approximately 18 per cent of its investments, equivalent to €13.1bn, to Finland.

Mursula stated that investing in domestic businesses remained an important part of Ilmarinen's efforts to support sustainable economic growth in Finland.

"We have been actively involved in investing in Finnish venture capital funds and have also invested directly in domestic growth companies," he added.

Overall, at the end of September, Ilmarinen had 446,701 pension recipients, down from 449,917 a year earlier, while total pension payments rose to €6.1bn from €6bn.

The number of new pension decisions fell by 17 per cent year-on-year to 27,443, largely reflecting a 40 per cent decline in new old-age pension decisions to 10,488.

Ilmarinen explained that the decline followed an unusually high number of applications in 2025 from retirees seeking payment of pension benefits accrued through employment undertaken alongside retirement.

Changes that raised the upper age limit for compulsory pension insurance to 69 later delayed when some of these benefits could be claimed.

Looking ahead, Mursula stressed that Finland's pension system remained financially stable, arguing that further increases in the retirement age should be considered alongside measures to support sustainable working lives.

He suggested greater attention should be given to ensuring employment opportunities remain available for older workers and that work ability is supported throughout individuals' careers.

The provider also welcomed proposed reforms to Finland's entrepreneurs' pension system, which would let entrepreneurs choose whether contributions and benefits are based on actual earned income or estimated income.

The changes are scheduled to take effect in April 2028, with Mursula arguing that using actual earnings more often would improve the system's fairness and sustainability.

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