Return on Ilmarinen’s investments was 2.1 per cent – solvency was strong and cost-effectiveness at a good level

“Our investment assets reached a record level of EUR 64 billion, and our solvency is strong. We have improved our efficiency over the long term. Our cost-effectiveness is translated into lower premiums for our clients,” says Jouko Pölönen, CEO of Ilmarinen.

Investment assets rose to EUR 64 billion

The return on Ilmarinen’s investments was 2.1 (4.9) per cent in January–June, or EUR 1.3 billion. The market value of investments rose to EUR 64.0 billion (EUR 63.3 billion at the end of 2024).

Return on investments was increased especially by fixed income investments and equity investments. Fixed income investments returned 2.9 (1.4) per cent and equity investments 1.5 (9.3) per cent. The return on real estate investments was 0.4 (-0.6) per cent and the return on other investments 4.4 (1.4) per cent. 

“Despite the geopolitical and commercial tensions, the interest rate and equity markets mainly yielded good returns in the first half of the year, and the equity market recovered rapidly from the decline in early April. Uncertainties related to the US fiscal and trade policy were very visible in the currency market, weakening the US dollar and consequently the return on dollar-denominated investments,” explains Mikko Mursula, Ilmarinen’s Deputy CEO, Investments.    

Calculated from 1997, Ilmarinen’s average annual return at current value for Ilmarinen’s investments has been 5.8 per cent per annum. This corresponds to an annual real return of 3.9 per cent.

Solvency is strong

Solvency capital was EUR 14.0 billion (EUR 13.9 billion at the end of 2024), and the solvency ratio was 127.3 per cent (127.5 per cent at the end of 2024).

“Our strong solvency enables the long-term investment of pension assets in an unstable market situation,” says Mursula.  

Premiums written grew by 3 per cent – employment prospects still weak

Premiums written rose by 3 per cent to EUR 3,670 (3,551) million in January–June. The growth in premiums written was due to the increase in clients’ payroll. The payroll and confirmed income for employees insured with Ilmarinen grew by 3 per cent to EUR 14,888 (14,489) million.

In Finland, employment has been on the decline for over two years. The number of employees in the companies belonging to Ilmarinen’s business cycle index fell by 1.9 per cent year-on-year during January–June. In June, the decline was 2.1 per cent.

“The deteriorating employment situation can only be reversed by economic growth. Finland needs growth. Growth requires work, investments and productivity. It is important for companies and society as a whole to improve productivity to ensure competitiveness,” says Pölönen.

Cost-effectiveness was further improved 

Operating expenses financed using loading income accounted for EUR 47 (47) million. The ratio of operating expenses to the payroll and confirmed income, a measure of cost-effectiveness, improved to 0.32 (0.33) per cent in the first half of the year.

“We have improved our productivity in the long term. Our clients’ premiums written directly benefit from our efficiency,” says Pölönen.  

Pensions paid increased by 5 per cent from the previous year – the number of new pension decisions increased

At the end of June, Ilmarinen had 451,799 (453,559) pension recipients. They were paid a total of EUR 4,021 (3,845) million in pensions in the first half of the year, showing an increase of 5 per cent from the previous year.

In January–June, a total of 23,367 (19,641) new pension decisions were made, which was 19 per cent more than in the previous year. The number of old-age pension decisions doubled from the previous year and was 12,559. 

“Working alongside the old-age pension has become more common, and the pension accrued from this work is being applied for. On average, Ilmarinen processes old-age pension applications in three days,” says Pölönen. 

Ilmarinen’s CEO changes

Ilmarinen’s current CEO, Jouko Pölönen, will remain in his position until the end of August, after which he will assume the role of CEO of eQ Plc.

“It has been a privilege to lead Ilmarinen for the last seven years. Ilmarinen has become Finland’s largest employment pension insurance company, and we have significantly improved our efficiency and productivity. Our premiums written have increased by 36 per cent while our insurance operating expenses financed using loading income have decreased by 36 per cent. Our investment assets have also reached record levels. I am particularly pleased that our personnel and client experiences have also become excellent. I offer my sincerest thanks for great cooperation to our clients and the entire personnel, administration and stakeholders of Ilmarinen,” Pölönen says.

In June, the Board of Directors of Ilmarinen appointed Mikko Mursula, M.Sc. (Econ.), as the new CEO of Ilmarinen. Mursula has previously served as Ilmarinen’s Chief Investment Officer and Deputy CEO. He will assume the role of CEO of Ilmarinen at the beginning of September.

Development in Ilmarinen during January–June 2025 in brief:

• The return on Ilmarinen’s investment portfolio was 2.1 (4.9) per cent, or EUR 1.3 billion.
• The market value of investments was EUR 64.0 (63.3) billion. The long-term average return on investments since 1997 was 5.8 per cent, which corresponds to an annual real return of 3.9 per cent.
• The total result was EUR 112 (995) million.
• Premiums written increased by 3 per cent to EUR 3,670 (3,551) million. Pensions paid increased by 5 per cent to EUR 4,021 (3,845) million.
• Net client acquisition was EUR 24 (51) million, and rolling client retention for the previous 12 months was 96.1 (96.6) per cent.
• Operating expenses financed using loading income were EUR 47 (47) million, amounting to 0.32 (0.33) per cent of the Employees Pensions Act payroll and YEL income of the insured.
• The solvency capital was EUR 14.0 (13.9) billion, and the solvency ratio was 127.3 (127.5) per cent.
• Mikko Mursula will assume the role of CEO on 1 September 2025.
• Prospects: Ilmarinen’s premiums written are expected to increase as payroll increases.

 

Additional information:

• Jouko Pölönen, President and CEO, tel. +358 50 1282, jouko.polonen@ilmarinen.fi
• Mikko Mursula, Deputy CEO, Investments, tel. +358 50 380 3016, mikko.mursula@ilmarinen.fi
• Sami Ärilä, Executive Vice President, People and Communications, tel. +358 400 271 066, sami.arila@ilmarinen.fi 
  
  

Read more:

• Ilmarinen's interim report 1 January–30 June 2025 (PDF in Finnish)
• Interim report picture supplement (PDF in Finnish)
• Työntekijämäärän lasku jatkuu - Ilmarinen (in Finnish)
• Ilmarinen’s career index describes work and earnings-related pensions Työuraindeksi (in Finnish)
• Ilmarinen’s disability pension index provides a comprehensive picture of how disability develops in different sectors in Finland. Ilmarisen työkyvyttömyyseläkeindeksi (in Finnish)