Finland’s Ilmarinen returns 7.4% up to end of Q3

Written by Paige Perrin

28/10/2024

Ilmarinen made an investment return of 7.4% for the period from January to September 2024, equal to €4.4bn, its interim results reveal.

The market value of Ilmarinen’s investments grew to €62.9bn over the period. The provider’s solvency capital increased to €14bn, while its solvency “strengthened” over the period, rising to 128.1%, up from 125.4%.

In addition to this, the provider’s return on equity investments was 11.9%, and on fixed income investments 4.6%.

Its long-term average return on investments was 5.8% since 1997, corresponding to an annual real return of 3.9%.

Commenting on the market activity, Ilmarinen chief investment officer, Mikko Mursula, said: “The main driver of Ilmarinen's positive return on investment was the listed stock market. Investments in US equities performed particularly well.

“The fall in interest rates that started towards the end of the summer improved the return on the fixed income portfolio in the third quarter.”

The provider said that employment in Finland has “weakened” since last summer, with the number of employees in the companies belonging to Ilmarinen’s business cycle index falling by -2.8% year-on-year during January–September. In September, the decline was -3.4%.

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