Pension Fennia Performance Report for 1 January – 31 March 2013: Investment yield of 2.8 per cent

23.4.2013

In the first quarter of the year, Pension Fennia’s investment activities showed a yield of 2.8 per cent (as compared to 4.4% for Q1/2012). The best yield was provided by listed equities at 7.7 per cent (11.7%).

“In the first quarter, we achieved success, particularly in the addition and selection of equity investments. The hedge funds breaking up the total risk and real estate investments brought about a good yield. We predict that the investment income will continue to see positive development over the remainder of the year, but at a more modest rate than was experienced at the start of the year,” says Eeva Grannenfelt, Director and Chief Investment Officer at Pension Fennia.

Calculated from the start-up of operations in 1999, the average nominal yield for Pension Fennia’s investments was 5.1 per cent and the real yield was 3.1 per cent. The average nominal yield for investments over a period of five years was 4.4 per cent and the real yield was 2.5 per cent. The average nominal yield for investments over a period of ten years was 5.5 per cent and the real yield was 3.7 per cent.

Solvency strengthened during the first quarter of the year. The company’s solvency capital totalled €1,464 million (compared to €1,163 million on 31 March 2012). The solvency capital before the equalization amount was €1,242 million (€913 million). The solvency ratio stood at 22.9 per cent (19.3%) of the technical provisions and was 2.6 times (2.4) the solvency limit.

The year’s first two transfer rounds for employment pension insurances decreased Pension Fennia’s TyEL premium income by 18.2 million euro. The number of TyEL insurances declined by 260 policies and the number of YEL insurances by 340 policies.

Pension Fennia and LähiTapiola Mutual Pension Insurance Company will form a new employment pension company as of 1 January 2014. At the end of March, the Boards of the companies approved the framework agreement and plan for the merger. The merger still requires the approval of the authorities and the general meetings of both companies. The name of the new employment pension company will be announced later in the spring.

“We are implementing a major merger within the employment pension field with the aim of establishing a company that provides quality services in a cost-efficient manner. We will invest, in particular, in corporate financing and work welfare services in order to further strengthen the competitiveness of our customers,” states Lasse Heiniö, Managing Director of Pension Fennia.

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

Pension Fennia Interim Report 1 January - 31 March 2013 >

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