Pension Fennia Performance Report for 1 January – 30 September 2012: Investment income 7.3 per cent

“Although the signs of insecurity in global economy have increased and confidence in economic growth is generally weak, it did not yet affect Pension Fennia’s investment income. Return of over seven per cent is good considering the conditions. I am particularly proud of the efficiency of our operations. Our administration cost surplus for the whole year is calculated to exceed € 13 million, which would be the highest figure in the history of Pension Fennia”, says Lasse Heiniö, Managing Director of Pension Fennia.

Pension Fennia’s investment income for 1 January – 30 September 2012 stood at 7.3% (1–9/2011: -3.5%). The best yield was provided by listed shares at 12.8.% (-21.4%) and bonds at 8.4% (2.3%). Real estate also provided a good yield at 5.2% (5.7%).

”In the third quarter we succeeded in the timing and selection of both investments with a credit risk and investments in shares. The return for year-to-date has been exceptionally good despite the waning economic growth and low interest rates. We anticipate the investment income at the year-end to be at the level of end of September”, says Eeva Grannenfelt, Director and Chief Investment Officer at Pension Fennia.

The solvency ratio was 20.7% (1–9/2011: 16.1%) of the technical provisions and the solvency margin was 3.1 (2.4) times the solvency limit. Without the temporary solvency regulations, the solvency ratio would have been 15.9% (11.5%) of the technical provisions and the solvency position 2.4 (1.7) times the solvency limit. The amount of the solvency margin and comparable items was € 1,273 million (30 September 2011: € 934 million).

Calculated from the year 1999, the nominal yield for Pension Fennia’s investments stood at 4.8% and the real yield at 2.8% at the end of September. The average nominal yield for investments over a period of five years was 2.1% and the real yield was -0.2%. The average nominal yield for investments over a period of ten years was 5.2% with a real yield of 3.3%.

The transfer business between employment pension companies in 2012 was slightly negative for Pension Fennia. The four transfer rounds of employment pension policies in 2012 reduced Pension Fennia’s TyEL premium income by € 8.8 million which is just over 0.8 per cent of Pension Fennia’s annual TyEL premium income. The net reduction of TyEL policies was 165 and that of YEL policies was 111.

The figures presented are those of the parent company and have not been audited.

Pension Fennia Performance Report slides for 1 January – 30 September 2012

Further information:
Lasse Heiniö, Managing Director, tel. +358 10 503 7204
Matti Carpén, Deputy Managing Director, tel. +358 10 503 7290
Eeva Grannenfelt, Director, Chief Investment Officer, tel. +358 50 544 6355