Finland’s Ilmarinen returns 3.3% in first nine months of 2023

Written by Natalie Tuck

01/11/2023

Finnish mutual pensions insurance company, Ilmarinen, made a return of 3.3% in the first nine months of 2023, equivalent to €1.9bn.

Publishing an interim update, Ilmarinen said the drivers of the investment portfolio's 3.3% return were the favourable development of the stock market and interest and credit risk investments.

The rise in interest rates was reflected in real estate investment returns, which turned negative. The long-term average return since 1997 was 5.7%. The market value of the investments was €57.7bn.

Ilmarinen's cost efficiency improved further, as insurance premium income increased by 5% and medical expenses decreased by 2%. Medical expenses were 0.34% of the insured's TyEL salary and YEL income. Between January and September, it paid pensions of approximately €5.4bn to 455,000 pensioners.

Net customer acquisition was €135m and the rolling customer retention rate for the previous 12 months was 96.6%. The solvency capital increased to €12bn and the solvency ratio decreased to 125.5%.

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