Finnish pension insurance company, Ilmarinen, returned 5.3% on its investments in the first half of 2026, its half-year results report has revealed.
The market value of its investments increased from €67.5bn at the end of 2025 to €70.4bn at the end of June.
Its investment returns were primarily driven by listed equity investments, which Ilmarinen said delivered excellent returns.
Ilmarinen’s return on equity investments was 8.3% in H1, while its fixed income investments return was 1.2%.
Real estate returns for the pension company were 0.3%, while other investments generated a return of 3.4%.
“The first half of the year has been marked by several geopolitical events and twists and turns,” commented Ilmarinen investment director, Annika Ekman.
“Despite inflation and interest rate uncertainties, corporate performance has been strong and stock market returns have been good.
“Continuing strong AI investments are starting to have a broader impact on the economy.”
The long-term average return on Ilmarinen’s investments since 1997 was 6%, corresponding to a real return of 4.1%.
Ilmarinen noted that the Finnish pension reform had increased the opportunities for earnings-related pension companies to take risks and increase their exposure to equities.
The first phase of the investment regulation reform began at the start of July 2026, with the remaining changes to come into effect in stages.
“Pension assets must continue to be invested productively and securely,” said Ekman.
“However, increased risk-taking will lead to greater fluctuations in investment returns than usual. At Ilmarinen, we have prepared for the reform for a long time and carefully.
“We have increased the share of equity investments in our investment risk distribution from 54% to 62% during the first half of the year.”
In the first half of the year, Ilmarinen’s solvency capital increased from €15.5bn to €16.8bn, while its solvency ratio improved from 129.2% to 130.7% over the same period.
