The average solvency ratio of Finnish earnings-related pension providers increased to 128.5 per cent at the end of the second quarter (Q2), new data from the Finnish Financial Supervisory Authority has revealed.

The solvency ratio is calculated by dividing pension assets with technical provisions. The Q2 result is 0.4 percentage points higher than the average solvency ratio at the end of the first quarter when it stood at 128.1 per cent.

In the previous review, at the end of March, the solvency ratio was 128.1 per cent. Thus, the solvency ratio improved by 0.4 percentage points during the second quarter of the year.

Broken down, pension insurance companies have a higher average solvency ratio (128.2 per cent) than that of company funds and industry-wide funds (140.4 per cent).

Recent data published by the Finnish Pension Alliance (Tela) also revealed that Finnish occupational pension funds grew by €10bn during the first half of the year, with a total of €261bn in assets at the end of the period.

According to the update, the positive development of pension investments continued during the second quarter, despite the weak state of the domestic economy, with growth in Q2 reaching around €3bn.

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