Finnish earnings-related pension provider, Elo, made a return on investments of 6 per cent in 2023.

The market value of its investments at the end of 2023 stood at over €30bn, while its solvency ratio was 121.3 per cent and remained at the same level (1.5). The annual amount of pensions paid increased by almost 10 per cent to approximately €4,191m.

Elo's strategic goal is to become the most attractive company in the industry. To achieve this goal, it is focusing on five key objectives: being the most customer-centric, strong performance in services, excellent employee experience, a pioneer in workforce services and sufficient solvency.

“We continued to improve our efficiency and will pay back €10.4m in refunds to our customers. In addition, our customers will pay significantly lower premiums in 2024," Elo CEO, Carl Pettersson, said.

“A major customer project was the transfer of the statutory insurance portfolio of the Orion Pension Fund to Elo at the turn of the year. This was the first major transfer of pension assets for us and we carried it out successfully.”

In terms of its investments, returns on quoted equity and fixed-income investments were strong. Real estate investment returns were weighed down by fair value changes due to rising market interest rates.

“We delivered a good result in a volatile market environment. The return on investment rose to six per cent and clearly exceeded the ten-year average nominal return for Elo and the industry. The market value of our investments exceeded €30bn for the first time in Elo's history," Elo CIO, Jonna Ryhänen, said.

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