Finland’s Ilmarinen returns 3.2% in Q1

Written by Jack Gray

15/05/2024

Finnish pension insurance company, Ilmarinen, returned 3.2% on its investments in the first quarter of 2024, its latest data has revealed.

Ilmarinen stated that the positive return between January and March was driven by the strong performance of its listed equity investments.

However, higher interest rates ‘dampened’ returns on fixed income investments.

The pension insurance company’s return in Q1 amounted to €1.9bn, bringing the total value of its investments up to €60.5bn.

Since 1997, Ilmarinen’s long-term average return was 5.8%, corresponding to an annual real return of 3.8%.

Ilmarinen’s total result rose year-on-year to €778m, with premiums written rising by 2% to €1.69bn and pensions in payment increasing by 8% to €1.89bn.

Its solvency capital increased to €13bn and its solvency ratio improved by 1.2 percentage points to 126.6%.

“We have successfully continued implementing Ilmarinen’s strategy and improved our productivity significantly over the past six years,” said Ilmarinen CEO, Jouko Pölönen.

“Over the past six years, Ilmarinen has successfully reduced the annual costs for managing pension insurance by a third, or close to €50m, for our more than 1.1 million customers.

“At the same time, premiums written have grown 34%. Pensions are part of public social security, and we want to continuously manage them even more effectively.”

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