Pension Fennia Biannual Review of Operations 1 January – 30 September 2011: Investment income reflects the difficult market situation

– on top in the transfer round as an insurer of self-employed persons

- Investment income stood at -3.5%.
- The solvency ratio was 16.1% of the technical provisions and the amount of the solvency margin and comparable items was 2.4 times the solvency limit.
- Best company in YEL insurance as indicated by transfer business between employee pension companies.

“Already in early 2011, we predicted that the instability of the world economy and the turbulence would last a long time, and accordingly, we kept our equity investments at a low level. Our solvency has remained at a secure level despite the challenges presented by the investment environment,” states Lasse Heiniö, Managing Director of Pension Fennia.

Pension Fennia’s investment income for 1 January – 30 September 2011 stood at -3.5% (1-9/2010: 7.0%). The best yield was gained from fixed-income investments at 2.2% (5.4%) and real estate investments at 5.7% (5.0%). The solvency ratio was 16.1% (20.3%) of the technical provisions and the solvency margin was 2.4 (2.4) times the solvency limit. Without the temporary solvency regulations, the solvency ratio would have been 11.5% (15.5%) of the technical provisions and the solvency position 1.7 (1.8) times the solvency limit. The amount of the solvency margin and comparable items was 934 million euro (1,226 million euro at the beginning of the year).

“The investment year has been difficult as a whole, but despite that, we have done fairly well. During the period under review, we saw particular success in the areas of fixed-income and real estate investments,” states Eeva Grannenfelt, Chief Investment Officer at Pension Fennia.

Pension Fennia’s average nominal yield for investments over a period of five years was 2.3% and over a period of ten years 4.5%. Calculated from the start-up of operations in 1999, the nominal yield for investments stood at 4.5% and the real yield at 2.5%.

Pension Fennia holds a strong position as an insurer of self-employed persons and SMEs

The four transfer rounds in 2011 increased Pension Fennia’s TyEL premium income by a total of 5.7 million euro. The net total of TyEL insurances increased by 249 policies and that of YEL by 824 policies. Pension Fennia took the absolute top position for transfers of YEL insurance policies and the second place for TyEL insurance when calculated by number of policies and premium income. This level of success within a tight market situation is directly due to the active and productive customer work carried out by the Fennia Group and Local Insurance Group.

The high rate of transfer success in YEL insurance policies, in particular, serves to further reinforce Pension Fennia's position as one of the leading insurers of self-employed persons. Pension Fennia’s market share of YEL insurances is experiencing a strong upward swing. Every fifth new self-employed person chooses Pension Fennia as their employment pension insurer.

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

For further information, please contact:

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