Finnish earnings-related pension provider, Elo, made a return of 2.7 per cent, between 1 January and 30 September 2023.

The solvency level was 120.3 per cent and the solvency capital was 1.4 times in relation to the solvency limit. Premium income amounted to €3.3bn and pensions and other benefits paid out also amounting to €3.3bn.

Net income from investment operations amounted to 2.7 per cent, equivalent to 0.8bn – the market value of its investments amounted to €28.8bn.

Commenting, Elo CEO, Carl Pettersson, said: “When the whole year is considered, Elo's income was at a good level. During the third quarter of the year, both the equity and mass bond loans produced a weak return. Behind the weak yields was a concern about continued tight monetary policy. The returns on the property market were also under pressure and we made a write-down of €93m in the direct property investments at the end of September.”

Geographically, the differences in returns on the stock market increased. For example, American and Japanese stock markets provided good return, while the return in Finland and China has been negative this year.

The return on Elo's equity investments for the current year was good, 4.0 per cent, although the returns on quoted shares in the third quarter remained negative. Elo's fixed income investments returned 2.4 per cent from the beginning of the year and property investments returned -1.6 per cent.

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