FINLAND - The roughly €400m pensions arm of Finland Posti - Finland Post Pension Fund - will be closed down following the outsourcing of its entire statutory and supplementary divisions to Ilmarinen Pension Co. and Pohjola Life respectively.

The main reason behind the move is so that Posti can concentrate on its core business, said Pohjola Life’s first vice president Ilkka Lohi.

“The transaction allows Posti to outsource the pension scheme administration, risk elements related to longevity and insurance risks like death and disability and also the investment risk.”

In September Pohjola signed a €73m agreement with Finland Post Pension Fund, which would see the transfer of its supplementary cover to Pohjola Life.

According to Lohi, this amounts to 17% with the rest going to Ilmarinen.

The assets will be invested along the lines of Pohjola Life’s general investment plan, while the administration will be converted to the Pohjola organisation.

“The deal is important to Pohjola Life and Pohjola is proud to be chosen as a partner in this transaction,” said Lohi.

“For Pohjola Life the transaction is favourable because of its scale on economics and its experience the field of pension and personal risks management.”

The transfer is due to take place on December 31, and rests on consent from the Finnish Insurance Supervisory Authority.

Pohjola Life – with €1.3bn worth of assets under management and good third quarter results - anticipates no difficulties in this regard.