Ilmarinen's Financial Statements 2025: Return on investments was 8.1 per cent or EUR 5.1 billion

– The past year was a strong one for Ilmarinen. Despite geopolitical tensions, Ilmarinen’s investments provided a good return and solvency continued to strengthen. Premiums written grew, and our cost-effectiveness is at a good level, says Mikko Mursula, President and CEO of Ilmarinen.

Investment income was increased especially by listed equity investments as well as fixed income and credit risk investments

The market value of Ilmarinen’s investments increased to a record level of EUR 67.5 (63.3) billion. The return on investments was 8.1 (8.6) per cent, or EUR 5.1 (5.0) billion. Ilmarinen’s investments have generated a total of EUR 30.2 billion over a period of 10 years.

The development of capital markets was mainly positive in 2025. Stock market development was excellent, with the exception of the period during late March and early April when uncertainty related to trade and power policy was at its highest in the global economy.

– Ilmarinen’s return on investments was particularly increased by equity investments and fixed income and credit risk investments. The return on our listed equity investments was especially good. Corporate bonds also produced good results, and we had excellent revenue from absolute return investments, explains Annika Ekman, EVP, Investments at Ilmarinen.

The return on Ilmarinen’s equity investments was 10.4 (14.1) per cent and 6.3 (4.4) per cent on fixed income investments. The return on real estate investments was 1.1 (-0.9) per cent and the return on other investments 8.4 (6.7) per cent.

The long-term average return on investments since 1997 has been 5.9 per cent, which corresponds to a real return of 4.0 per cent.

Twenty per cent of investments are in Finland

At the end of 2025, Ilmarinen’s investments in Finland were EUR 13.6 billion, or 20 per cent of the investment portfolio. Approximately half of these investments, or EUR 7.2 billion, are investments in Finnish listed companies. Ilmarinen’s investments in unlisted Finnish companies total EUR 1.9 billion.

– As a pension insurance company, it is our duty to invest in a profitable, secure and responsible manner. Long-term investment in Finland and growth companies is part of the work we do to secure pensions and build sustainable economic growth. Finland is our domestic market. This home field advantage allows us to closely monitor different projects and gives us a good perspective on domestic opportunities. We examine domestic investments carefully and actively invest through funds and directly in unlisted companies, says Ekman.

We reached our climate targets early

Ilmarinen is strengthening its climate work and setting stricter climate targets. The aim is to manage the climate risk of our investments.

– We achieved excellent results in all the emission reduction targets set for 2021–2025. Our new climate plan includes a commitment to Science Based Targets initiative and we have also set stricter targets for 2026–2030, explains Ekman.

Solvency continued to strengthen, higher customer bonuses 

In 2025, Ilmarinen’s solvency capital increased to EUR 15.5 (13.9) billion, and the solvency ratio improved to 129.2 (127.5) per cent.

– The improved solvency allows us to transfer EUR 149 million to customer bonuses, which is 6 per cent more than in the previous year. This is despite the fact that only 0.95 per cent of solvency capital can be distributed as customer bonuses instead of the previous 1 per cent, says Mursula. 

Premiums written grew by 3 per cent, cost-effectiveness at a good level 

Ilmarinen’s premiums written grew by 3 per cent to EUR 7.2 (7.0) billion. The insurance premium income was increased by a 2.6 per cent increase in the Employee Pensions Act payroll and a slight rise in the earning-related pension contribution. The increase in premiums written was also affected by positive net customer acquisition.

– Our goal is to offer the best customer experience in the industry, and we were very successful in this area. Our customers’ NPS (Net Promoter Score) was above the target level, and we received the best results in the earnings-related pension sector in all areas of an EPSI Rating study, says Mursula.

Ilmarinen’s operating expenses financed using loading income decreased to EUR 92.0 (92.2) million. They accounted for 0.32% (0.33%) of the Employees Pensions Act payroll and YEL income.

– Our cost-effectiveness directly benefits our clients in the form of lower premiums, says Mursula.

We paid EUR 8 billion in pensions to 450,000 pensioners

Ilmarinen paid a total of EUR 8.0 (7.6) billion in pensions. At the end of the year, there were 449,273 (454,556) pension recipients.

A total of 43,436 (41,279) new pension decisions were made. The number of old-age pension decisions increased by 49 per cent from the previous year and totalled 22,484.

– The significant increase in old-age pension decisions is due to the fact that working during retirement has become more common, and people are applying for the pension accrued from this work more often than earlier. On average, a decision on old-age pension was issued by Ilmarinen in three days, explains Mursula.

The average old-age pension age increased in comparison to the previous year and was 65.2 years (65.1). 

Decrease in the number of disability pension applications

Ilmarinen received a total of 10,781 new disability pension applications, which is 8 per cent less than in the previous year (11,663). A total of 3,383 (3,557) persons started to receive disability pension, which was 5 per cent less than in the previous year. The majority of disability pensions were granted due to musculoskeletal diseases and mental health disorders.

– The underlying reasons behind incapacity for work are strongly linked to age. Mental health disorders were the most common reason for those under 55, while musculoskeletal diseases were the most common reason for those aged over 55. Depression has long been the single largest reason for retirement, but osteoarthritis became the most common diagnosis in 2025, says Mursula.

Ilmarinen’s year 2025 in brief:

• The return on Ilmarinen’s investment portfolio was 8.1 (8.6) per cent, or EUR 5.1 billion. The market value of investments increased to EUR 67.5 (63.3) billion. The long-term average return on investments since 1997 was 5.9 per cent, which corresponds to an annual real return of 4.0 per cent.
• The total result was EUR 1,766 (1,804) million.
• Premiums written increased by 3 per cent to EUR 7,160 (6,956) million. Pensions paid increased by 4 per cent to EUR 7,950 (7,636) million.
• Net client acquisition was EUR 107 (179) million, and rolling client retention for the previous 12 months was 95.8 (96.7) per cent.
• Operating expenses financed using loading income totalled EUR 92 (92) million, amounting to 0.32 (0.33) per cent of the Employees Pensions Act payroll and YEL income of the insured.
• Solvency capital was EUR 15.5 (13.9) billion, and the solvency ratio was 129.2 (127.5) per cent.
• Prospects: Ilmarinen’s premiums written are expected to increase at a slightly slower rate than the increase in payrolls, as the earning-related pension contribution percentage will decrease for 2026. The decrease in the contribution percentage is due to the fact that repayment of the temporary reduction of employers' social security contributions granted during the COVID-19 pandemic ended in 2025.

Additional information:

• Mikko Mursula, CEO, tel. +358 50 380 3016, mikko.mursula@ilmarinen.fi
• Annika Ekman, EVP, Investments, tel. +358 40 590 0344, annika.ekman@ilmarinen.fi
• Sami Ärilä, EVP, People and Communications, tel. +358 400 271 066, sami.arila@ilmarinen.fi 
  
  

Read more:

• Ilmarinen's annual report and finfancial statements 2025 (PDF, in Finnish)
• Image appendix to the financial statements (PDF, in Finnish)