The average solvency of Finland’s earnings-related pension insurers improved by 0.3 per cent in the second quarter of 2025, standing at 128.9 per cent at the end of June, according to new data from the Financial Supervisory Authority (FIN-FSA).

The increase follows a decline of 0.6 percentage points in the first quarter of the year, which FIN-FSA attributed to a €0.8bn fall in sector capital.

In addition, at the end of June, the average solvency across all pension companies was 128.6 per cent, while pension funds and foundations recorded a stronger 140.2 per cent.

Commenting on the results, Tela mathematician, Hanna Mäkinen, noted that investment conditions remained supportive despite market volatility.

“The good news is that despite the challenging financial market situation, investment returns were 1.8 per cent positive.

She also highlighted that the amount of equity investments increased to a new record of 53.1 per cent.

Meanwhile, the sector’s solvency position - the average capital ratio relative to the risk-based solvency limit - remained stable at 1.6 at the end of June, a level it has held since mid-2023 and more than one and a half times the statutory requirement.

“According to the FIN-FSA, the stress resistance of earnings-related pension insurers against stock market shocks is still at a reasonable level,” Mäkinen added.

Tela also highlighted that solvency regulation applies only to private-sector pension insurers, such as pension companies, funds and foundations, and said it had updated its public solvency statistics to reflect the latest figures.

The positive update follows wider comments from the FIN-FSA on the resilience of Finland’s financial sector.

FIN-FSA director general, Tero Kurenmaa, said that despite ongoing challenges, there were signs of optimism in the economy, with business confidence improving and consumer activity in the housing market picking up.

“In the first half of the year, the solvency of the banking sector remained strong. Solvency also remains strong in the pension and insurance sectors,” he said.

“The domestic fund sector recovered from the unstable market situation in the spring, and in June fund capital had returned to almost the record level of the beginning of the year.”

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