Sales of new insurance policies remained strong, cost-efficiency improved and investments returned -0.4%
/ News
In January–March, the returns on the investments of Elo Mutual Pension Insurance Company turned negative in an uncertain operating environment. The solvency position remained stable and operating expenses decreased compared to the corresponding period last year. − Our sales of new insurance policies grew at a record rate, and Elo is currently the most popular employment pension company in terms of number of policies, says CEO Carl Pettersson.
The return on Elo’s investments was -0.4% (3.3%). The first quarter was overshadowed by increased uncertainty in the investment markets, particularly in the United States. European stock markets were the best performing of the main markets, and the good development of returns was also reflected in the Finnish stock market, which was one of the best performing markets in Europe during the review period.
− As markets fluctuate and investment returns fall, we must bear in mind that the investments of an employment pension company are made for the long term and that we diversify our investments widely to manage the risks, says Pettersson.
Strong trend in sales of new TyEL and YEL insurance policies continued
– Our new sales have continued to grow well, and we are currently the most popular employment pension company in terms of number of policies. We are continuously developing our services, and early this year we launched the Work Ability Database, which provides our corporate customers with research and data-based information to support their work ability management.
Customers benefit from Elo’s improved cost efficiency. – Thanks to the improved efficiency of our operations and the cost savings we’ve achieved, our customers will keep paying a lower expense loading fee in 2025, Pettersson explains.
At the end of March, Elo managed 45,900 TyEL insurance policies and 83,400 YEL insurance policies for the self-employed. The total number of insured employees and self-employed persons was 450,100. The market share of new TyEL insurance policies was 42.5%, while the market share for new YEL policies was 38.4%
The economic situation of companies remained challenging. The number of bankruptcies remained high, which was also reflected in the high TyEL credit losses of Elo's customers during the reporting period.
Trade war affects global economic growth
The trade war threatens to hamper economic growth and raises inflationary pressures, especially in the US. US import tariffs and counter-tariffs are increasing uncertainty. In the euro area, gradually easing inflation and falling interest rates are supporting economic development that is otherwise suffering from the trade war. The Finnish economy is highly dependent on the cyclical developments of the global economy. If the trade war continues, growth of the global economy as a whole will slow down significantly.
Elo aims to strengthen its market share in TyEL insurance and maintain its market leadership in YEL insurance. Elo continues to invest in the development of work ability services and creates added value to customers by reducing work ability risks. In line with its strategy, Elo ensures sufficient solvency in all market situations.
Elo’s result in brief January−March 2025
- Net return on investment was -0.4% (3.3%), or EUR -114.4 million.
- Market value of investments was EUR 32.1 billion (32.4 at the end of 2024). Ten-year average return on investment was 5.1%. This corresponds to a real return of 2.9%.
- The solvency ratio fell to 121.9% (123.0% at the end of 2024) and the solvency position was 1.4 (1.4 at the end of 2024).
- Cost-efficiency improved and operating expenses covered by the expense loading component fell by 2.8%
For more information:
CEO Carl Pettersson, interview requests Miia Pullinen/Communications, tel. +358 40 588 3637
The figures are unaudited and the comparison figures in brackets are for 31 March 2024, unless stated otherwise.
Interim Report 1 January – 31 March 2025 >
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