Elo’s solvency at a good level despite the coronavirus crisis
The coronavirus pandemic caused an exceptional decline in the equity market worldwide in the first half of the year. The returns and solvency of all Finnish pension companies suffered as a result. Despite the crisis, Elo’s solvency stands at a good and secure level.
On the following day, 20 March 2020, Elo’s solvency position rose by several points, restoring the solvency capital to above the solvency limit. After this, Elo’s solvency has continued to increase clearly, as measured by various indicators. Elo’s solvency ratio has remained at a good level throughout the coronavirus crisis, including on 19 March 2020. Elo’s pension assets exceeded pension liabilities by some 14 per cent on that date.
“Our solvency is at a good and secure level, thanks to both Elo’s own actions and the general market rise. At the end of March, the solvency ratio was 116.6 per cent and solvency capital was 1.2 times the solvency limit. Elo’s solvency has continued to significantly improve after the end of March,” says Elo’s CEO Satu Huber.
“Elo is a solvent company and our operational capacity has remained good even during the coronavirus crisis. When employment pension companies published their results at the turn of April–May, Elo’s return on investments of −9.5% on 31 March 2020 was second best compared to its pension company competitors. Measured by long-term returns, Elo’s five-year returns are the best among employment pension companies and, in ten-year returns, we share first place,” adds Huber.