Solvency statistics of earnings-related pension providers at the end of 2016

29.03.2017

The Financial Supervisory Authority has published recent data on the solvency of earnings-related pension providers. The earnings-related pension providers’ solvency ratio, or the ratio between solvency capital and technical reserves, was 28.6 per cent at the end of 2016.

In the previous review, at the end of September 2016, the solvency ratio was 28.2 per cent. Thus, the solvency ratio improved by 0.4 percentage points during the last quarter of the year.

The pension insurance companies’ average solvency ratio was 28.0 per cent, while that of company funds and industry-wide funds 40.0 per cent.

This information concerning the solvency of the insurance sector in the last quarter of the year has been published by the Financial Supervisory Authority. As defined in the reports of the Financial Supervisory Authority, earnings-related pension providers comprise private-sector pension insurers, i.e. pension insurance companies, company pension funds and industry-wide pension funds.

We have also updated the solvency statistics on our website so that they are congruent with the latest data: ‘Statistics on liability and solvency’.

The regulations on solvency only pertain to private-sector pension insurers, i.e. pension insurance companies, company pension funds and industry-wide pension funds. Solvency describes the pension provider’s capacity to bear risks. It is measured by determining the pension provider’s assets that exceed the technical provisions. If the assets invested exceed the technical provisions by a sufficient margin, the pension provider is solvent.

More information:

Financial Supervisory Authority’s Press release, March 28th 2017: Financial position and risks of supervised entities as at 31 December 2016