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.

  Basic breakdown
EUR mill.
% Risk breakdown
EUR mill.
% Return % Volatility
Fixed-income investments 15,248 27.3 12,782 22.9 -5.7  
Loan receivables 1,892 3.4 1,892 3.4 3.2  
Bonds 12,904 23.1 11,679 20.9 -7.2 5.1
Public corporation bonds 4,596 8.2 3,254 5.8 -10.9  
Other bonds 8,308 14.9 8,425 15.1 -4.8  
Other money market instruments
and deposits (incl. investment
receivables and payables)
452 0.8 -789 -1.4 -0.7  
Equities and shares 26,761 48.0 25,379 45.5 -12.8  
Listed equities and shares 17,730 31.8 16,349 29.3 -18.6 15.1
Private equity investments 7,731 13.9 7,731 13.9 0.8  
Non-listed equities and shares 1,299 2.3 1,299 2.3 6.6  
Real estate investments 7,048 12.6 7,108 12.7 4.0  
Real estate investments 6,339 11.4 6,382 11.4 3.4  
Real estate funds and
joint investments
709 1.3 726 1.3 9.2  
Other 6,719 12.0 7,218 12.9 -3.3  
Hedge fund investments 4,899 8.8 4,899 8.8 8.8 5.3
Commodity investments 34 0.1 403 0.7 -  
Other investments 1,786 3.2 1,915 3.4 -32.8  
Investments total 55,775 100.0 52,487 94.1 -8.0 6.5
Effect of derivates     3,289 5.9    
Investments at current value 55,775   55,775 100.0    



The modified duration of bond investments is 2.5 years.
The open currency position is 23.3% 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’ >