ILMARINEN'S INVESTMENTS
Ilmarinen seeks to gain the best possible return on its assets funded for the payment of future pensions. The company is attempting to contain the pressure to raise pension contributions through profitable investments.
Part of the yield on investments is returned to clients. Thanks to successful investments Ilmarinen has been able to pay very competitive client bonuses. From its 2010 result the company will transfer EUR 71 million to be used for reductions in contributions.
At the end of september, Ilmarinen’s solvency capital, used to measure the company's solvency was EUR 4.8 billion, i.e. 21.3 percent of the technical provisions. The investment portfolio was distributed as follows:
- Fixed-income Investments: 44.7%
- Equities and shares: 38.7%
- Real Estate Investments: 11.7%
- Other: 5.0%
Fixed-income investments
At the end of september 2011, the value of Ilmarinen’s fixed-income portfolio including loan receivables, bonds and other money market instruments and deposits was, in market capitalisation terms, about EUR 12.1 billion. A total of EUR 4.3 billion of fixed-income asset allocation was invested in bonds.
Ilmarinen’s loan portfolio was about EUR 2.8 billion at the end of september 2011.
Equities
The equity and shares portfolio accounted for about EUR 10.5 billion of Ilmarinen’s total investment assets at the end of september 2011. Some 41.0% of listed equities was in domestic equity investments.
Real estate investments
At the end of september 2011, the value of all Ilmarinen’s real estate investments was EUR 3.2 billion. The company owns altogether slightly over 4,500 dwellings and about 100 commercial, office, warehouse and other properties. A significant part of these locates in the Helsinki metropolitan area. Responsibility for the maintenance and leasing of the properties is with Ovenia Oy. (www.ovenia.fi).
Additional information
- Financial information
- Annual Report 2010 (pdf)
- Ownership Policy (pdf)
- Investments organisation chart (pdf)