Long-term approach generated record-high profits for Ilmarinen

Ilmarinen has recovered quickly from the historically difficult market conditions.The return on Ilmarinen's investments for 2009 amounted to 15.8% (-17.7% in 2008). As inflation was nearly nonexistent, the investment return was the company's best ever in real terms.

Timo Ritakallio, Deputy CEO, Head of Investments, says that Ilmarinen succeeded in the allocation as well as timing of its investments.

"We were able to use the economic cycles to our advantage. Due to our high solvency, we did not need to sell any shares in panic. Naturally, the good investment result also included a significant recovery of certain asset values following the distressed market conditions in2008," he says, commenting on the background of the company’s performance in 2009.

Ritakallio points out that the risk level should not be excessively restricted in order to reach the targeted long term real investment returns. “This excellent result is due to Ilmarinen’s long-term, equity-weighted investment policy, the rewards of which we can now reap."

Jaakko Tuomikoski, Deputy CEO, says that last year also proved that the Finnish employment pension system fares well internationally.

"We have earned the right to be proud of our Finnish innovation. It has weathered the financial crisis without having to interfere in pension benefits or contributions. There are few pension systems in the world that have survived as well as ours," he justifies.

The company's solvency has improved significantly. At year-end, the solvency capital ratio was about 24.0 (14.0) per cent of the technical provisions, and 2.7 times (2.0 times) the solvency limit. Excluding the temporary relief insolvency legislation, the solvency capital ratio would have been 19.1 per cent and the solvency position 2.1 times.

About EUR 52 (31) million will be allocated for client bonuses, corresponding to 0.4 (0.2) per cent of the insured total payroll." As a result of our successful investment activity and high cost-efficiency, we will be able to pay our customers very competitive client bonuses also this year," Tuomikoski estimates.

These figures are preliminary. Ilmarinen's official financial statements for 2009 will be published on 24 February 2010.

Preliminary Information on the financial statement of Ilmarinen for 2009 (pdf)

For more information, please contact:

Harri Sailas, President and CEO, tel. +358 10 284 3000
Jaakko Tuomikoski, Deputy CEO, +358 10 284 3447, +358 50 66398
Timo Ritakallio, Deputy CEO, tel. +358 10 284 3838, +358 500 536 346
Päivi Sihvola, Senior Vice President, Corporate Communications, tel. +358 10 284 3590, +358 40 757 4992