Equities and hedge funds boost Finland’s Fennia
FINLAND - Preliminary results for Pension Fennia, one of the largest pension insurance providers in Finland, revealed equities returned a massive 33.7% on investments while hedge funds delivered 16.4% in 2009.
Early headline data provided by the firm showed the investment portfolio delivered an overall positive return of 10.1% for the year - a healthy comeback from the losses incurred in 2008 when returns hit -12.1%.
Last year's performance of equities and hedge fund investments present a stark contrast to the losses of 2008 when equities returned -36.7% and hedge funds also fell 19.4%.
Officials said the recession was noticeable at Pension Fennia as people were found to be delaying the payment of their insurance premiums. And the increase in unemployment and redundancies was visible in Pension Fennia's premium income too, as this decreased by 0.7% compared with the previous year.
"The international situation is improving thanks to exceptional support measures. But economic development in the near future, and inflation expectations later on, still involve uncertainty", said Eeva Grannenfelt, chief investment officer at Fennia.
Pension Fennia's solvency ratio was approximately 16.7% for the full year, compared to 12.9% in 2008. The amount of solvency margin and comparable items increased to €899m compared to €646m the previous year.
Without the temporary solvency regulations, put in place by the government as a result of the recession, the solvency ratio would have been 12 % and the solvency position would have been two times the solvency limit.
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