Solvency statistics of earnings-related pension providers updated

28.09.2016

The Financial Supervisory Authority (FIN-FSA) 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 26.0 per cent at the end of June 2016. In the previous review, at the end of March 2016, the solvency ratio was 26.3 per cent. Thus, the solvency ratio declined by 0.3 percentage points during the second quarter of the year.

The pension insurance companies’ average solvency ratio was 25.6 per cent, while that of company funds and industry-wide funds was 35.1 per cent.

This information concerning the solvency of the insurance sector in the second quarter of the year has been published by the FIN-FSA. As defined in the reports of the FIN-FSA, 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 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.