Press release 24.10.2025

Return on Ilmarinen’s investments was 4.8 per cent – solvency was at a good level

The return on Ilmarinen’s investments was 4.8 per cent in January–September, or EUR 3.0 billion. Investment assets reached record levels and solvency was strengthened.

“The year has been marked by geopolitical and commercial tensions as well as general uncertainty in the economy and investment markets. Still, uncertainty related to trade and power policy has decreased after the spring, due to new trade agreements, among other matters. Development in Ilmarinen has been strong in January–September. In particular, equity and fixed income investments have performed well, and our solvency has continued to improve,” Mikko Mursula, CEO of Ilmarinen, concludes.  

Returns were increased especially by fixed income investments and equity investments

The return on Ilmarinen’s investments was 4.8 (7.4) per cent in January–September, or EUR 3.0 billion. The market value of investments rose to EUR 65.7 billion (EUR 63.3 billion at the end of 2024).

Return on investments was raised particularly by fixed income investments and equity investments. The return on equity investments was 5.4 (11.9) per cent and the return on fixed income investments 4.7 (4.6) per cent. The return on real estate investments was 1.3 (-0.3) per cent and the return on other investments 5.8 (4.0) per cent.

“The equity market recovered well from the decline in early April, and listed equity investments in particular performed well. The return on fixed income investments also reached an excellent level,” explains Annika Ekman, EVP of Investments at Ilmarinen.    

The long-term average return on investments since 1997 was 5.8 per cent, which corresponds to an annual real return of 4.0 per cent.

Solvency is strong – the pension reform enables increasing the equity risk

The solvency capital rose to EUR 14.7 billion (EUR 13.9 billion at the end of 2024), and the solvency ratio to 128.3 per cent (127.5 per cent at the end of 2024).

The legislative drafting of the pension reform is currently under way. Changes to the regulation of investment operations are at the core of the reform. The aim is to achieve higher return on investments for pension assets in the long term. Risk-taking opportunities will be increased by loosening solvency rules and allowing a higher equity weighting.

“The reform allows us to increase the overall risk level of the investment portfolio, which in turn increases the long-term expected return. Common pension assets must be invested profitably, securely and responsibly even after the pension reform. We are preparing for the reform with careful risk management and by analysing various market scenarios,” Annika Ekman explains.

We need a sustainable working life – entrepreneurs’ pension cover needs to be updated

Recently, the need to raise the retirement age has been a popular topic in public. Statistics show that Finns are already working longer. In 2024, the average retirement age was 63.1. The expected retirement age increased by 0.3 years in one year, and the 2025 increase target was already exceeded by 0.7 years.

“Before we discuss new increases, we should ensure that working life supports work ability, allowing us to work longer. Raising the retirement age alone will not solve our problems if our work ability deteriorates earlier. Supporting work ability and goal-oriented work ability management are key factors for the sustainability of our system,” Mikko Mursula says.

Another interesting topic has been the reform of entrepreneurs’ pension cover, which is currently being examined in a project by the Ministry of Social Affairs and Health. The aim is to find alternative methods for determining entrepreneurs’ confirmed income and for launching funding.

“It's important to update the pension scheme for entrepreneurs and bring entrepreneurs’ pension cover to the same level with employees,” Mr Mursula says.

Premiums written grew by 3 per cent 

Ilmarinen’s premiums written rose by 3 per cent to EUR 5.5 (5.3) billion in January–September. The growth in premiums written was due to the increase in clients’ payroll. The payroll and confirmed income for those insured with Ilmarinen grew by 2.5 per cent to EUR 22.1 (21.6) billion.

In Finland, employment has been on the decline for over two years. The number of employees in the companies belonging to Ilmarinen’s business cycle index fell by 1.8 per cent year-on-year during January–September.

Ilmarinen’s operating expenses financed by the use of loading income were EUR 68 (69) billion in January–September. The ratio of operating expenses to the payroll and confirmed income – a measure of cost-effectiveness – improved to 0.31 (0.32) per cent.

“We've improved our productivity over the long term. Our clients’ premiums written directly benefit from our efficiency,” Mr Mursula says.   

The number of pension decisions increased, and pensions paid increased 

At the end of September, Ilmarinen had 449,917 (453,821) pension recipients. They were paid a total of EUR 6.0 (5.8) billion in pensions in January–September, showing an increase of 4 per cent from the previous year.

In January–September, a total of 33,110 (30,113) new pension decisions were made, which was 10 per cent more than in the previous year. The number of new old-age pension decisions almost doubled from the previous year and was 17,358 (9,980).

“An increasing number of people work during retirement, and the pension accrued from this work is being applied for. This is reflected in the number of pension decisions. On average, Ilmarinen processes old-age pension applications in three days,” Mr Mursula relates.

In January–September, a total of 7,384 (7,609) new disability pension decisions were made, which was 3 per cent less than in the previous year.

Development at Ilmarinen during January–September 2025 in brief:

• The return on Ilmarinen’s investment portfolio was 4.8 (7.4) per cent, or EUR 3.0 billion. The market value of investments increased to EUR 65.7 (63.3) billion. The long-term average return on investments since 1997 was 5.8 per cent, which corresponds to an annual real return of 4.0 per cent.
• The total result was EUR 808 (1,791) million.
• Premiums written increased by 3 per cent to EUR 5,457 (5,299) million. Pensions paid increased by 4 per cent to EUR 6,015 (5,776) million.
• Net client acquisition was EUR 71 (150) million, and rolling client retention for the previous 12 months was 95.6 (96.5) per cent.
• Operating expenses financed using loading income reached EUR 68 (69) million, amounting to 0.31 (0.32) per cent of the Employees Pensions Act payroll and YEL income of the insured.
• The solvency capital was EUR 14.7 (13.9) billion, and the solvency ratio was 128.3 (127.5) per cent.
• Mikko Mursula assumed the role of CEO on 1 September 2025.
• Prospects: Ilmarinen’s premiums written are expected to increase as payrolls increase.

 Additional information:

• Mikko Mursula, CEO, tel. +358 50 380 3016, mikko.mursula@ilmarinen.fi
• Annika Ekman, EVP, Investments, tel. +358 40 590 0344, annika.ekman@ilmarinen.fi
• Sami Ärilä, EVP, People and Communications, tel. +358 400 271 066, sami.arila@ilmarinen.fi

Read more:

• Ilmarinen's interim report 1 January–30 September 2025 (PDF, in Finnish)
• Interim report picture supplement (PDF, in Finnish)
• Ilmarinen’s business cycle index provides up-to-date information on the development of the Finnish economy Ilmarisen suhdanneindeksi – Ilmarinen (in Finnish)
• Ilmarinen’s career index describes work and earnings-related pensions Työuraindeksi - Ilmarinen (in Finnish)
• Ilmarinen’s disability pension index provides a comprehensive picture of how disability develops in various sectors in Finland. Ilmarisen työkyvyttömyyseläkeindeksi - Ilmarinen (in Finnish)