Solvency statistics of earnings-related pension providers at the end of March 2017

09.08.2017

The Financial Supervisory Authority has published recent data on the solvency of earnings-related pension providers. The earnings-related pension providers’ solvency ratio, which is calculated by dividing pension assets by technical provisions, was 129.7 per cent at the end of March 2017. In the previous review, at the end of 2016, the solvency ratio was 128.6 per cent. Thus, the solvency ratio improved by 1.1 percentage points during the first quarter of the year.

The pension insurance companies’ average solvency ratio was 129.1 per cent, while that of company funds and industry-wide funds was 141.8 per cent.

This information concerning the solvency of the insurance sector in the first 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 revised regulations concerning the calculation of the solvency limit and the diversification of investments came into effect at the start of 2017. This means that all essential investment risks and insurance risks will be taken into account more accurately and more comprehensively in the calculation of 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.