FINANCIAL STATEMENTS February 2014

Transcription

1 FINANCIAL STATEMENTS February 214 1

2 ILMARINEN S KEY FIGURES FOR 213 Return on investments 9.8 per cent Value of investment assets: EUR 32.3 billion Solvency capital: EUR 7.1 billion Solvency ratio: 28. per cent Solvency position: 1.9 times the solvency limit Premiums written: EUR 4.1 billion Pension expenditure: EUR 4.1 billion Net sales of pension insurance: EUR 16 million Client bonuses: EUR 86 million 2

3 3 Sales performance

4 SUCCESS IN THE COMPETITION BETWEEN PENSION INSURANCE COMPANIES Net transfer result for the period 1 Jan 31 Dec 213 Number of policies Payroll 1, EUR TyEL ,82 YEL 1,195 6,723 Total 2,157 63,85 4

5 NUMBER OF INSURANCE POLICIES RISING Number of insurance policies 7 7, 6 6, 5 5, 4 4, 3 3, 2 2, 1 1, 56,717 58,776 6,612 52,243 53,66 36,767 36,511 37,462 38,237 35, TyEL-vakuutukset policies YEL-vakuutukset YEL policies 5

6 6 We are responsible for the pension provision of over 9, people

7 NUMBER OF PEOPLE INSURED INCREASED SLIGHTLY Number of people insured 6 6, 5 5, 472, 51, 515, 529, 529, 4 4, 3 3, 2, 1, 52,243 53,66 56,717 58,776 6, Under TyEL TyEL-vakuutetut Under YEL YEL-vakuutetut 7

8 INCREASING NUMBER OF PENSIONERS Pensions paid on 31 Dec , 3 3, 25 25, 2 2, 15 15, 1 1, 55, Survivors' pension Unemployment pension Disability pension Part-time pension Early-aged pension Old-age pension

9 INCREASED NUMBER OF PENSION DECISIONS New pension decisions Change, % Old-age pensions 1,88 9, Early old-age pensions Part-time pensions Disability pensions 6,333 6, Unemployment pensions 9 21 Survivors pensions 3,54 3, Right to rehabilitation 2,375 2, New pension decisions, total 23,365 22, Other pension decisions (incl. continued and amended decisions) 19,368 18, Pension decisions, total 42,733 41,

10 Days SHORTER THAN AVERAGE PROCESSING TIMES Processing times of pension applications disability pensions rehabilitation survivors' pensions part-time pensions old-age pensions Ilmarinen Other TyEL/YEL institutions Source: The Finnish Centre for Pensions 31 Dec 213 1

11 EUR billion PENSION CONTRIBUTIONS EUR 4.1 BILLION Premiums written 4, , 3. 2, 2. 1, 1., TyEL YEL 11

12 EUR billion PAID TO PENSIONERS EUR 4.1 BILLION Pensions paid 4, , 3. 2, 2. 1, 1., TyEL YEL 12

13 13 Investments and solvency

14 % NET INVESTMENT RETURN AT CURRENT VALUE Ilmarinen Other companies on average Ilmarinen s annual average nominal return (17 years) Ilmarinen s annual average real return (17 yrs) 14 *213 returns of other companies estimated based on preliminary financial statement information

15 EUR mill. RETURN ON INVESTMENTS BACK TO LONG-TERM TREND Cumulative net return on investments Dec , 18 18, 16 16, 14 14, 12 12, 1 1, 8 8, 6 6, 4 4, 2 2, Cumulative return corresponds with an annual average return of 5.9% and an average real return of 4.% 15

16 5-YEAR REAL RETURN 5.8% % Ilmarinen Finnish equities and shares European equities and shares Euro government bonds Euro corporate bonds 12 / Average return over five years Average return over 1 years Average return since Real average return over five years Real average return over 1 years Real average return since

17 RETURN ON INVESTMENTS 9.8% Market value EUR mill. Market value % Risk breakdown EUR mill. Risk breakdown % Fixed-income investments 14, , Loan receivables Bonds Public corporation bonds Other bonds Other money market instruments and deposits (incl. investment receivables and payables) 1, , , , , ,575. 2, , ,34.5 Equities and shares 12, , Listed equities and shares Private equity investments Unlisted equities and shares 1, , , , , ,61.4 Real estate investments 3, , Direct real estate investments Real estate funds and joint investments 3, , Other 1, , Hedge fund investments Commodity investments Other investments , , Return % Volatility Investments total, % Effect of derivatives, % Investments total 32, , The modified duration of bond investments is.2 years 17

18 EUR mill. MARKET VALUE ON INVESTMENTS GROWING STRONGLY Asset allocation according to risk 35, 3, 25, 25, , , , , , 15, 1, 55, Equities and shares Real estate Other Fixed income incl. effect of derivatives 18

19 SHARE OF EQUITIES AND SHARES IN PORTFOLIO STILL GROWING Asset allocation according to risk 1 1% % 9 9% % 8 8% % 7 7% % 6 6% % 5 5% % 4 4% % 3 3% % 2 2% % 1 1% % % % Equities and shares Real estate Other Fixed income incl. effect of derivatives 19

20 % SHARE OF EUROPEAN EQUITIES AND SHARES INCREASED Finland Europe USA Japan China Emerging markets exl. China

21 % % of of technical technical provisions provisions SOLVENCY STRENGTHENED ,.4, 14, 14, On 31 December 213, the solvency ratio was 1.9 times the solvency limit (31 Dec. 212: 2.2) Solvency capital Solvency capital Tasausvastuusta Provision for pooled toimintapääomaan claims treated rinnastettava equal to solvency osa capital Tasausvastuusta Provision toimintapääomaan for pooled claims rinnastettava treated equal osa Vakavaraisuusraja Solvency limit to solvency capital Vakavaraisuusraja Solvency limit 21

22 22 Cost efficiency and client bonuses

23 EUR mill. OPERATIONAL EFFICIENCY Loading profit and operational efficiency Operating expenses as a percentage of loading profit = Operational efficiency Activity-based operating expenses Loading profit 76% 74% 74% 8% 75% 23

24 PRODUCTIVITY OF ILMARINEN S PERSONNEL INCREASING Person years/1, insured,8.8,7.7,6.6,5.5,4.4 htv total yht py htv-hk py covered by expence loading component,

25 CLIENT BONUSES EUR 86 MILLION Solvency capital, EUR mill. 7,123 5,752 4,89 6,578 4,877 Loading profit, EUR mill Transfer to client bonuses, EUR mill Transfer to client bonuses of TyEL payroll, % Transfer to client bonuses per continuous TyEL employment contract, EUR

26 CLIENT BONUSES EUR 62 MILLION FOR A BETTER LIFE Solvency capital, EUR mill. 5,752 4,89 6,578 4,877 2,673 Loading profit, EUR mill Transfer to client bonuses, EUR mill Transfer to client bonuses of TyEL payroll, % Transfer to client bonuses per continuous TyEL employment contract, EUR