Risk management and solvency in investing pension assets

The goal of investing pension assets is to safeguard our ability to pay current and future pensions. We invest the pension assets profitably and securely. From this page you can find more information about our risk management in our investment operations.

Solvency describes the ability to bear investment risks 

The goal of investing pension assets is to safeguard our ability to pay current and future pensions. That is why the pension assets must be invested both profitably and securely. Profitable investing always means taking risks. A key objective of investment operations is to make use of the company’s risk-bearing ability in order to maximise long-term returns without compromising compliance with regulatory solvency requirements in the short term.

We manage the market risk affecting our investment assets by following the solvency regulations and taking care of our solvency and sufficient diversification of the investment portfolio. The pension system also bears part of the market risk.

We have systematically linked our risk management priorities to our basic mission as well as our strategic and operative targets. The risk management system, which is independent of the business operations, is documented in the operating principles of the risk management system that encompass all of the company’s operations and which are annually reviewed and approved by the Board of Directors.

The table below shows the most recent investment allocations and returns disclosed by us. We present the figures in the comparable format agreed on jointly between employment pension insurance companies.

31.3.2025

Basic breakdown
EUR mill.
% Risk breakdown
EUR mill.
% Return % Volatility
Fixed-income investments 18 669 30 24 388 39 1,3  
Loan receivables 926 1 926 1 1,3  
Bonds 18 297 29  20 877 33 1,1 4,3
Public corporation bonds 7 701 12 11 331 18 0,8  
Other bonds 10 596 17 9 456 15 1,3  
Other money market instruments
and deposits (incl. investment
receivables and payables)
-554 -1 2 585 4 -  
Equities and shares 32 402 51 32 459 51 -0,6  
Listed equities and shares 22 004 35 22 062 35 -1,5 9,2
Private equity investments 8 715 14 8 715 14 0,6  
Non-listed equities and shares 1 682 3 1 682 3 4,3  
Real estate investments 5 890 9 5 890 9 0,2  
Direct real estate investments 3 117 5 3 117 5 0,6  
Real estate funds and
joint investments
2 773 4 2 773 4 -0,3  
Other 6 141 10 6 280 10 1,6  
Hedge fund investments 6 039 10 6 039 10 1,2 5,9
Commodity investments 0 0 0 0 -  
Other investments 101 0 241 0 34,2  
Investments total 63 102 100 69 017 109 0,2 3,8
Effect of derivates     -5 916 -9    
Investments at current value 63 102
100 63 102 100 0,2  



The modified duration of bond investments is 3.7 years.
The open currency position is 29.2 % of the market value of the investments.
The total return percentage includes income, expenses and operating expenses not allocated to any investment types.

How do we manage risks in our overall operations?

Learn more about risk management in the section ’The way we work’ >