Elo adopts 'cautiously positive' outlook despite H1 volatility

Written by Adam Cadle

15/08/2025

Finnish pension insurer, Elo, has said that its economic expectations for the rest of 2025 are "cautiously positive", despite its total surplus falling to €162m in the first half of 2025.

The group's interim report emphasised that whilst its solvency ratio had weakened during H1, falling from 123% at the end of 2024 to 122.1% at the halfway point for 2025, the overall solvency position remained "stable" at 1.4.

And despite a negative investment return in the first quarter of 2025 of -0.4%, the stock market's recovery increased the return on investment for the second quarter to 1.9%.

Whilst the net return on investment was sigicantly down from the same period in 2024, falling from 5.2% in H1 2024 to 1.4% in 2025 (€492m), Elo CEO, Carl Pettersson, said that this was a "good" return given the turbulent market.

"Exchange rate fluctuations in the stock market were high due to US trade tariffs, and we made preparations to protect our solvency if the situation continues," he stated.

"In addition, the weakening dollar has reduced investment returns for euro-based investors."

The report showed that the ten-year average return on investment was 5.3%, which equates to a real return of 3.2%.

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