Tiedote 26.4.2012

Interim Report 1 January to 31 March 2012: Positive investment result for early part of year: returns at +5.1 per cent

The return on Ilmarinen’s investment portfolio in the first quarter of 2012 was 5.1 per cent, or approximately EUR 1.4 billion (1.2 per cent, i.e. EUR 340 million in 31 March 2011). The market value of Ilmarinen’s investments totalled EUR 29.1 (29.1) billion at the end of March.

“The positive investment return resulted from the rise in share prices, especially during the early part of the year. Fixed-income investments have also yielded good returns,” describes Timo Ritakallio, Deputy CEO.

The return on Ilmarinen’s equity investments was 9.5 (1.4) per cent and return on fixed-income investments 3.2 (0.9) per cent.

According to Ritakallio the recovery of share prices is a sign of growing confidence in the brevity of the economic down-turn and abating concerns over the sustainability of the financial system.

“Insecurities still exist in terms of finding a conclusive solution for ending the European debt crisis. At the moment the markets’ attention is fixed specifically on the economic and debt problems of Spain. Also the increased price of oil causes concerns from the economic standpoint,” says the Deputy CEO.

Positive turnaround for long-term investment returns

The good return on investments can also be seen in Ilmarinen’s long-term investment returns. The long-term real investment return from 1997 increased at the turn of the year from 3.6 per cent to 3.8 per cent. A 3.5 per cent expected real return is used to estimate the future development of earnings-related pension insurance contributions.

“It is highly possible that the long-term annual real return on investments will return to the four per cent level in the future,” assesses Ritakallio.

Ilmarinen’s solvency also remained at a good level. At the end of March Ilmarinen’s solvency capital was EUR 5.8 (6.6) billion, which is 24.8 per cent (29.6) of the technical provisions and 2.2 times (2.4) the solvency limit. Excluding the temporary legislation concerning the solvency of pension institutions, the solvency ratio would have been 19.8 per cent and the solvency position 1.8.

Excellent sales figures

At the start of 2012, Ilmarinen fared very well in the competition for customers between pension insurance companies. The sales figures for January–March increase the premiums written by some EUR 54.4 million. The share of TyEL insurance policies was EUR 43.4 million and YEL insurance policies accounted for EUR 11.0 million.

Ilmarinen’s customer retention was also good during the early part of the year.

(The figures in this release are unaudited.)

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For more information, please contact:

Timo Ritakallio, Deputy CEO, Head of Investments, tel. +358 10 284 3838, +358 500 536 346
Jaakko Kiander, Senior Vice President, Finance and Pension Policy, tel. +358 10 284 2599, +358 50 583 8599
Päivi Sihvola, Senior Vice President, Corporate Communications and Human Resources, tel. +358 10 284 2530, +358 50 448 1182