High growth in Ilmarinen’s
investment return continues
Ilmarinen's return on investments
during the period 1 January–30 September 2009, calculated as a total return on
market values, was 13.4 per cent. Returns by asset class were as follows:
fixed-income investments 11.6 per cent, equity investments 22.9 per cent, real
estate investments -0.4 per cent, and other investments 6.0 per cent. At the
end of September, the total market value of the company's investment assets was
EUR 25.1 billion.
At
the end of September, Ilmarinen's
solvency capital was 22.8 per cent of technical provisions and 3.0 times the
solvency limit. If the solvency regulations valid for a fixed term are not
taken into account, the company’s solvency capital accounted for 17.9 per cent
of the technical provisions.
Ilmarinen’s return on investments
continued its strong recovery during the third quarter. While the market value
of Ilmarinen’s investments
decreased last year by a historical record, now almost two-thirds of that has
been recovered.
“The
moral of the story is that equity investments pay in the long run. We kept our
nerve and held on to stocks even when the market lost faith in them,” says Timo Ritakallio,
Deputy CEO, Head of Investments.
According
to Ritakallio, Ilmarinen
has been rapidly reaching the growth track that is most commonly used as a
basis when estimating future employment pension contributions. From the
beginning of 1997, the average annual return of Ilmarinen’s investments has been 5.8 per cent, or
4.1 per cent in real terms.
Ritakallio reminds that the
return on investments of an employment pension institution should only be analysed over a long time span.
“When this is done, fluctuations — even when as dramatic as those now
experienced — will not cause unnecessary uncertainty.”
These
figures are unaudited.
For more information, please contact:
Harri Sailas,
tel. +358 10 284 3000
Jaakko Tuomikoski,
tel. +358 10 284 3447 or +358 50 66398
Timo Ritakallio,
tel. +358 10 284 3838 or +358 500 536 346
Attachments:
Results release material (pdf)
