Fixed income and equities lift Ilmarinen's H1 return to 2.1%

Written by Natalie Tuck

15/08/2025

Finnish earnings-related pension provider Ilmarinen achieved a 2.1% return on its investments in the first half of 2025, as strong fixed income and equity markets lifted assets to a record €64bn and maintained solid solvency.

The return, equivalent to €1.3bn, compares to 4.9% in the same period last year. Solvency capital stood at €14bn, with a solvency ratio of 127.3%.

Commenting on the results, Ilmarinen president and CEO, Jouko Pölönen, said: “Our investment assets reached a record level of €64bn and our solvency is strong. We have been improving our efficiency over the long term, and our cost efficiency is reflected in lower premiums for our customers.”

Fixed income investments returned 2.9%, compared to 1.4% a year earlier, while equities delivered a 1.5% return, down from 9.3% in H1 2024. Real estate investments returned 0.4% and other investments delivered 4.4%.

Ilmarinen executive vice president for investments, Mikko Mursula, said geopolitical and trade tensions shaped markets during the period.

“Interest rates and equity markets performed broadly well in the first half of the year and stock markets quickly recovered from the fall in early April,” he said.

“Uncertainties related to US fiscal and trade policies were strongly reflected in currency markets, weakening the US dollar and thus the return on dollar-denominated investments.”

Ilmarinen’s long-term average nominal return since 1997 stands at 5.8%, equivalent to a real return of 3.9%.

Premiums written increased by 3% to €3.67bn, supported by a similar rise in customers’ wages and salaries.

Pölönen will step down as CEO at the end of August to join eQ Plc.

“It has been a privilege to lead Ilmarinen for the past seven years… investment assets have reached record levels, and our premium income has increased by 36% while insurance management costs have decreased by the same amount,” he said.

Mursula will take over as CEO from 1 September. Looking ahead, the provider expects premium income to continue to grow in line with the rising wage bill.

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