RISE IN SHARE PRICES LEADS TO GOOD INVESTMENT RESULT
In January–March, the return on Ilmarinen’s investment portfolio was 2.2 per cent (-1.4 per cent in Q1 2016). At the end of March, the market value of investments stood at EUR 38.3 billion (31.3.2016: EUR 35.8 billion). The long-term average real return remained at a good level, at 4.2 per cent.
Solvency strengthened slightly compared to the situation at the turn of the year. At the end of March, solvency capital was EUR 8,752 (7,475) million and the solvency ratio was 129.7 (126.6) per cent.
Ilmarinen's customer acquisition showed strong growth in the first quarter. Measured in premiums written, net customer acquisition amounted to approximately EUR 39 million during the first quarter. Pensions were processed faster, and a higher number of new pension decisions were made than in the corresponding period last year.
Ilmarinen's President and CEO Timo Ritakallio:
"In terms of investment returns, Ilmarinen had a good start to 2017. The market value of investment assets grew by more than EUR 1 billion during the quarter and stood at EUR 38.3 billion at the end of March. The good investment result was attributed especially to the rise in share prices. Listed equity investments generated the best returns.
The average annual real return on Ilmarinen's investments since 1997 is at a good level, at 4.2 per cent. This clearly exceeds the 3.0 per cent return assumption used by the Finnish Centre for Pensions in its calculations. Solvency also remained strong and the solvency ratio, i.e. pension assets in relation to technical provisions, rose to 129.7 per cent.
Ilmarinen's customer acquisition showed strong growth in the first quarter; measured in terms of premiums written, net customer acquisition amounted to roughly EUR 39 million. We made more than 8,300 new pension decisions in January–March, which is clearly more than in the corresponding period last year. We succeeded in clearing the backlog in applications caused by the renewal of the pension processing system and significantly speeded up the time it takes to process pension decisions.
Along with the pension reform, a new type of pension – partial early old-age pension – was introduced at the start of the year and raised much interest among Ilmarinen's customers. During the first quarter, we received 1,300 applications and made 1,140 decisions concerning partial early old-age pension.
At the end of the quarter we launched a new version of the Parempi vire mobile app. The app, which encourages work capacity and well-being, has raised a lot of interest and is now available for all our customers. In the first quarter, we launched a new phase of our Wauhdittamo innovation programme, which involves developing new services together with our customers. We are also celebrating Finland’s one hundredth anniversary by collecting one hundred good deeds for a better working life.”
Ilmarinen's Interim Report 1 January–31 March 2017 (pdf)
Timo Ritakallio, President and CEO, tel. +358 500 536 346
Mikko Mursula, CIO, tel. +358 50 380 3016
Jaakko Kiander, CFO, tel. +358 50 583 8599
Päivi Sihvola, Senior Vice President, Corporate Communications, tel. +358 40 7574992