Preliminary information about Pension Fennia's financial statements for 2011: Uncertainty in the investment environment affected the return from 2011
Investment income stood at -1.6%
The solvency ratio was 16.5% of the technical provisions and the amount of the solvency margin and comparable items was 2.7 times the solvency limit.
Efficiency was excellent.
Pension Fennia further strengthened its position as an employment pension insurer of self-employed persons
“It was a difficult year for investments. In terms of investment income, however, we were among the best in the employment pension industry, but our negative result is nothing to celebrate. Our solvency remained at a secure level despite the challenges presented by the investment environment. We are especially satisfied with the fact that Pension Fennia further strengthened its position as an employment pension insurer for self-employed persons. Furthermore, our efficiency was excellent,” states Lasse Heiniö, Managing Director of Pension Fennia.
According to preliminary information about financial statements, Pension Fennia's investment income for 2011 stood at -1.6 per cent (10.0% in 2010). Over the past decade, the average nominal annual return on investments has been 4.4 per cent and the actual return 2.8 per cent. In 2011, the best yield was gained from real estate investments at 9.2 per cent (8.2%) and fixed-income investments at 3.3 per cent (5.0%). The yield from quoted shares was negative at -18.4 per cent (24.8%).
“The growth of the global economy weakened in spring 2011 at the same time that the financial crisis in the eurozone countries came to a head. As a result, the return from early autumn, particularly in terms of high-risk investments, was especially weak. Towards the end of the year, the investment market recovered slightly. In 2011, we managed quite reasonably with the changes in our risk position. In 2012, the global economic growth is expected to be subdued and the interest rate low. For this reason, we anticipate that investment income will be more stable than it was in 2011,” explains Eeva Grannenfelt, Chief Investment Officer at Pension Fennia
Pension Fennia's solvency ratio was around 16.5 per cent (21.4%) of the technical provisions and 2.7 times (2.8) the solvency limit at the end of the year. The amount of the solvency margin and comparable items was 975 million euro (€1,226 million). Without the temporary solvency regulations, the solvency ratio would have been 11.9 per cent of the technical provisions and the solvency position 1.9 times the solvency limit.
Pension Fennia continued to strengthen its position as the earnings-related pension insurer of SMEs and self-employed persons. In terms of transfer business during 2011, the company was number one as measured by the number of YEL policies and in second place as measured by the number of TyEL policies. The area of new business also stood at an exceptionally good level. Pension Fennia gained 7,500 new YEL policies in 2011. Every fifth new entrepreneur chooses Pension Fennia as their employment pension insurer.
These figures are preliminary. Pension Fennia's official financial statements for 2011 will be published in week 10.