Pension Fennia Performance Report for 1 January 2012 – 31 March 2012: Investment income 4.4 per cent

17.4.2012
  • Solvency was good; solvency ratio was 19.3% of the technical provisions 
  • Investment income was good at 4.4% 
  • Pension Fennia was successful in client transfers in the first quarter

Pension Fennia’s investment income in the first quarter of the year stood at 4.4 per cent. The best yield was provided by listed equities at 11.7 per cent. Good yield was also provided by bonds (3.9%) and hedge fund investments (4.1%).

”Investment operations were successful in the first quarter of the year. We raised the risk level and increased equities and investments with a credit risk. We anticipate more modest investment income during the rest of the year. Probably the current year on the whole will, however, be better than last year for investors”, says Eeva Grannenfelt, Chief Investment Officer of Pension Fennia.

The average nominal return on Pension Fennia’s investments from the year 1999 was 4.8 per cent (1999–2011) and real return 2.8 per cent. The five-year average nominal return was 2.1 per cent (2007–2011) and real return -0.2 per cent. The ten-year average nominal return was 4.8 per cent (2002–2011) and real return 2.9 per cent.

The amount of the solvency margin and comparable items increased from the beginning of the year and the solvency margin stood at 1,163 million euro and was 2.4 times the solvency limit. The solvency ratio was 19.3% of the technical provisions. Without the temporary solvency regulations, the solvency ratio would have been 14.6% of the technical provisions and the solvency position 1.8 times the solvency limit.
Pension Fennia succeeded in terms of customer transfers for TyEL and YEL insurance between pension companies. The first two transfer rounds of the year increased Pension Fennia’s TyEL premium income by approximately 2.8 million euro. The number of TyEL insurances increased by policies and that of YEL insurance by 289 policies.

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

Interim Report March 31, 2012

For further information, please contact:
Lasse Heiniö, Managing Director, tel. +358 10 503 7204
Eeva Grannenfelt, Director, Chief Investment Officer, tel. +358 50 544 6355