Ilmarinen’s return on investments was 6.2 per cent or EUR 4.2 billion

“Ilmarinen enjoyed strong development in January–September. The pension assets we manage increased by EUR 4.2 billion and solvency ratio strengthened. We did exceedingly well in customer acquisition”, says Mikko Mursula, President and CEO of Ilmarinen.

Returns were increased especially by listed equity investments

The return on Ilmarinen’s investments was 6.2 (4.8) per cent in January–September, or EUR 4.2 billion. The market value of investments rose to EUR 71.0 billion (EUR 67.5 billion at the end of 2025). Ilmarinen’s investments have generated a total of EUR 32.6 billion since 2017.

Return on investments was increased especially by listed equity investments. Equity investments yielded 10.9 (5.4) per cent. The return on fixed income investments was -1.3 (4.7) per cent. The return on real estate investments improved to 1.6 (1.3) per cent. Other investments yielded 4.6 (5.8) per cent. 

“Development in Q3 was mainly positive in the investment market. Better than expected development of economic growth combined with the strong performance of the corporate sector supported risky asset classes”, Annika Ekman, EVP, Investments explains.

“However, geopolitical tensions, disruptions in the energy sector and persistent concerns over inflation did not ease, and interest rates increased. Nervousness increased towards the end of the quarter.”

Long-term returns on investments were at a good level. The long-term average return since 1997 was 6.0 per cent, which corresponds to a real return of 4.1 per cent.

Solvency ratio strengthened at the start of the year

Ilmarinen’s solvency capital increased to EUR 16.6 billion (EUR 15.5 billion at the end of 2025). The solvency ratio strengthened to 129.9 per cent (129.2 per cent at the end of 2025).

The legislative proposals concerning the pension reform entered into force at the beginning of July. As a result of the reform, Ilmarinen’s solvency position improved considerably as the solvency limit decreased. This meant more opportunities for risk-taking.

Share of equity investments in the risk distribution of investments grew to 65 per cent

The reform of investment regulation is enabling a higher proportion of shares and seeking higher investment returns but will increase the variation in returns.

“We have prepared carefully for the reform and increased the share of equity investments in our risk distribution of investments to 65 per cent. We also leveraged the use of real estate debt, which was made possible by the pension reform”, Annika Ekman explains.  

Support for growth companies across Finland

Eighteen per cent, or EUR 13.1 billion, of Ilmarinen’s investments are in Finland.

“Investing in Finnish companies is part of the work we do to build sustainable growth in Finland. Together with OP Pohjola, we are currently running a EUR 300 million growth financing programme. The goal is to provide Finnish SMEs with better access to financing and support growth projects across the country”, Mikko Mursula states.

“Let's revive growth in Finland. We have been actively involved in investing in Finnish venture capital funds, and we have also invested directly in Finnish growth companies”, Mursula adds.

Customer acquisition was particularly strong

Our premiums written in January–September were at the level of the preceding year, EUR 5.5 billion (EUR 5.5 billion).

The payroll and confirmed income of employees and self-employed people insured by Ilmarinen increased by 2.2 per cent to EUR 22.6 billion (EUR 22.1 billion).

Ilmarinen was particularly successful in customer acquisition: net customer acquisition strengthened to EUR 162 (71) million, and the customer retention rate was 96.8 (95.6) per cent.

Cost-effectiveness is at a good level at Ilmarinen. Operating expenses financed using loading income decreased to EUR 66 million (68) in January–September. They accounted for 0.29 per cent (0.31) of the payroll and confirmed income of insured employees and self-employed people.

Decisions on old-age pension are issued quickly

At the end of September, Ilmarinen’s pension recipients totalled 446,701 (449,917). Ilmarinen paid EUR 6.1 billion in pensions (EUR 6.0 billion). Ilmarinen issues decisions on old-age pensions even faster now, or in 2 (3) days on average.

In January-September, new pension decisions were made 17 per cent less than in the previous year, with a total of 27,443 (33,110) decisions made. This is mainly due to the fact that the number of old-age pension decisions fell by as much as 40 per cent from the previous year to 10,488.

“In 2025, the number of old-age pension decisions was higher than usual because working during retirement has become more common, and people applied for the pension accrued from this work more often than earlier”, Mursula explains.

“The upper age limit for the insurance obligation was now raised to 69 years, which postponed the application for pension accrued from work done alongside one's pension. Because of this, no new age group was eligible to apply for this pension this year”, Mursula adds.

In January-September, a total of 6,633 (7,384) people transitioned to disability pension or cash rehabilitation allowance, which is 10 per cent less than the year before.

Work ability must be supported at all career stages

Pensions are widely discussed by the public, with the most recent discussions concerning retirement age increase.

“It is one tool for strengthening sustainable working life. However, the financial situation of our pension scheme is stable, and it will be further improved by the pension reform. People are already retiring later than before. As life expectancy increases, the lowest old-age pension age will rise on the basis of the current regulations so that the ratio between calculated working time and the duration of retirement will remain at the current level. In other words, there is no need for major changes from the perspective of the pension scheme”, Mikko Mursula points out.

“In addition to the new increases in retirement age, we must consider how to build a sustainable working life where jobs are available and work ability is supported throughout all career stages. It is also worth looking for more job opportunities for people with partial work ability”, Mursula says.

YEL reform is a good start

The Government proposal to amend the Self-Employed Persons’ Pensions Act progressed to Parliament in early October. According to the proposal, self-employed people could select actual confirmed income or confirmed income based on an overall estimate as the basis for their pension contributions and pension benefits.

“It is good that in the future, self-employed people can insure their pension cover on the basis of their earned income. The long-term goal should be that all self-employed people can insure themselves on the basis of as up-to-date earnings data as possible”, Mursula says. 

The Act is due to enter into force on 1 April 2028.

The current legislative proposal does not propose the launch of YEL funding. However, a rapporteur appointed by the Ministry of Social Affairs and Health will investigate options for launching funding and ways to make YEL implementation more efficient and reduce administrative costs.

“Launching funding would offer a solution to the long-term challenges of the financial sustainability of the pension scheme of self-employed people”, Mikko Mursula explains.

January–September performance in brief:

• The return on Ilmarinen’s investment portfolio was 6.2 (4.8) per cent, i.e. EUR 4.2 billion. The market value of investments increased to EUR 71.0 (67.5) billion. The long-term average return on investments since 1997 was 6.0 per cent, which corresponds to a real return of 4.1 per cent.
• The total result was EUR 1,070 (808) million. ​
• Premiums written totalled EUR 5,495 (5,457) million, and pensions paid EUR 6,107 (6,015) million. ​
• Net client acquisition strengthened to EUR 162 (71) million, and rolling client retention for the previous 12 months was 96.8 (95.6) per cent. ​
• Operating expenses financed using loading income totalled EUR 66 (68) million, amounting to 0.29 (0.31) per cent of the Employees Pensions Act payroll and YEL income of the insured. ​
• Solvency capital grew to EUR 16.6 (15.5) billion, and the solvency ratio strengthened to 129.9 (129.2) per cent.
• Prospects: Ilmarinen’s written premiums are expected to increase at a slightly slower rate than the increase in payrolls, as the TyEL contribution percentage decreased for 2026. The decrease in the contribution percentage was due to the fact that repayment of the temporary reduction of employers' social security contributions granted during the COVID-19 pandemic ended in 2025.
  
  

Additional information:

• Mikko Mursula, President and CEO, Ilmarinen, tel. +358 50 380 3016, mikko.mursula@ilmarinen.fi
• Annika Ekman, EVP, Investments, Ilmarinen, tel. +358 40 590 0344, annika.ekman@ilmarinen.fi
• Sami Ärilä, EVP, People and Communications, Ilmarinen, tel. +358 400 271 066, sami.arila@ilmarinen.fi 

Read more:

• Ilmarinen’s interim report (PDF, in Finnish)
• Interim report picture supplement (PDF, in Finnish)
• Ilmarinen’s business cycle index provides up-to-date information in Finnish on the development of the Finnish economy: Ilmarinen’s business cycle index