Elo’s investments returned EUR 1.4 billion – customers benefit from cost-efficiency
/ News
The investments of the pension insurance company Elo returned 4.5% in January–September. Solvency strengthened, and operating expenses continued to decrease. “We have managed to pass the benefits of cost savings to our customers and strengthened our market position,” says CEO Carl Pettersson.
“In the third quarter, our return on investment grew to 2.9% (1.7%). The rise of the stock market was driven by tariff agreements between the United States and its key trading partners, as well as the strong development of large technology companies. The market value of our investments climbed to EUR 33.5 billion at the end of the review period,” says Chief Investment Officer Jonna Ryhänen.
Market leader in new TyEL and YEL policies
“In addition to strong new sales, we have systematically improved our cost-efficiency in the long term, and this year we have succeeded at this even better than anticipated. The TyEL expense loading fee for 2026 will be reduced by an average of 20% from the 2025 level, which will benefit our employer customers,” says Pettersson.
At the end of September, Elo managed 45,600 TyEL policies and 84,200 YEL policies for the self-employed. The total number of insured employees and self-employed persons was 473,400. Our cumulative market share in the sales of new YEL policies was 38.8%, and the corresponding figure for TyEL policies was 41.0%. The goal of each occupational rehabilitation decision processed by Elo is to see the customer return to work. In 2024, 75% of rehabilitees returned to work. Elo’s occupational rehabilitation was 2 percentage points more successful than that offered by other operators in the field.
The financial situation of companies has not improved during the year. The number of bankruptcies among Elo’s customers remained high in January–September, which was also reflected in TyEL-related credit losses. In 2025, the amount of credit losses is estimated to be almost at the same level as in 2024.
Cautious improvement in the economic outlook
The economic outlook for the rest of the year is cautiously positive. The recovery of real household incomes following the slowdown in inflation improves expectations. However, US tariffs overshadow the production and export outlook, and create cost and margin pressures for companies.
In accordance with its strategy, Elo will continue the effective implementation of the earnings-related pension system and will continue to invest in being a trailblazer in work ability services. Our task is to ensure sufficient solvency and good returns on investments in the long term. Elo has updated its strategy for 2026–2030 and will publish it during Q4.
For more information:
Chief Executive Officer Carl Pettersson
Chief Investment Officer, Deputy CEO Jonna Ryhänen
Interview requests: Miia Pullinen / Communications, tel. +358 40 588 3637
Interim result presentation >
Interim report Q3 2025 >
The figures are unaudited, and the comparison figures in brackets are for 30 September 2024 unless stated otherwise.
Elo’s result for January−September 2025 in brief
- Overall result EUR 242 (714) million
- Net return on investment 4.5% (7.0%) or EUR 1.4 billion
- Market value of investments EUR 33.5 (32.4 at the end of 2024) billion
- The ten-year average return on investments 5.9%, which equals 3,7 % real return
- Solvency ratio 123.2% (123.0% at end 2024) and solvency position 1.4 (1.4 at end 2024)
- Operating expenses covered with the expense loading component EUR 54 (56) million