Finland’s financial supervisory authority (Finanssivalvonta, FIN-FSA) has called for immediate solvency updates from the country’s workplace pensions institutions because it judged there had been a major change in risks.
Occupational pension providers must submit reports including a summary of the risk and solvency assessment and the conclusions drawn from this, the watchdog said.
In a statement, FIN-FSA said: “According to the regulations on occupational pension institutions, the risk and solvency assessment must be updated regularly and without delay, if the risks have changed significantly.”
The regulator said it had collected information from occupational pension institutions more often than usual during the spring. It revealed that the average solvency ratio of occupational pension insurance companies, pension foundations, pension funds conducting statutory operations and the Seamen’s Pension Fund was 123% at the end of April was with a solvency position of 1.6.
In making the assessments, FIN-FSA said the institutions should not assume the measures to temporarily strengthen the pension institutions’ solvency – which is currently being prepared by the Ministry of Social Affairs and Health – will be implemented.
Industriens Pension invests over DKK100m in new Aarhus neighbourhood
Denmark’s pension fund for industrial-sector workers, Industriens Pension, announced an investment of more than DKK100m (€13.4m) in a housing project in the new Skejbyen neighbourhood in Denmark’s second-largest city Aarhus.
The DKK174bn fund said it will take ownership of 159 homes in the development in early June, when all the units would be let and occupied. Demand for the project’s affordable housing was high, it said.
Jan Østergaard, Industriens Pension head of unlisted investments, said: “We are pleased to be part of this development, and we would like to continue to expand our presence in the city.”
The development in the city’s northern district of Vejlby has been built by Danish developer A. Enggaard in conjunction with pension fund firm PKA, and consists of 850 homes in total, according to Industriens Pension.
Folksam invests SEK1.5bn in City of Stockholm bond
Swedish pension and insurance group Folksam said it has invested SEK1.5bn (€142m) in a new bond issue from the City of Stockholm.
The firm said the five-year bonds would form part of its strategy to invest in sustainable development.
Michael Kjeller, Folksam Group deputy chief executive officer and head of asset management and sustainability, said: “I am happy that we can invest our customers’ money to finance Stockholm’s development.”
Although not labelled a green bond, Folksam said all investments the city made were in line with its environment and climate policy.
The bonds would finance the capital’s ongoing work constructing a new wastewater treatment plant with higher environmental standards, it said, adding that Stockholm was also working to continuously improve energy efficiency in homes and schools.
The investment is split across the Folksam group, with the municipal pension fund subsidiary KPA Pension investing SEK650m, Folksam’s life and pensions business taking SEK650m of the issue and its general insurance unit investing SEK200m.