January–September 2015 progressed well for Etera Mutual Pension Insurance Company. Customer retention improved further and, considering the market movements, the return on investments was stable. The efficiency improvement measures are proceeding according to plan.
“We have achieved good results in, among other things, improving our efficiency, sales and our work ability efforts. In terms of cost efficiency, we are even ahead of our target,” says Etera’s Managing Director, Stefan Björkman.
Etera has expanded its foothold in the sales of new earnings-related pension insurance policies. “We have gained more new customers than before. Customer retention has also been better this year,” says Björkman.
At the end of September, Etera accounted for 14 per cent of all new TyEL insurance policies this year and for 10 per cent of all new YEL insurance policies.
Stable returns in the context of market movements
The market value of Etera’s investment portfolio at the end of September was EUR 5.8 billion (30 Sept. 2014: EUR 5.7 billion). Investments generated a return of 1.7 per cent in the January–September period (1–9/2014: 4.5%).
“Considering the market movements, our broadly diversified portfolio has produced stable returns,” says Björkman.
The return on fixed income investments during the period was 1.3 per cent (4.3%), and the return on equity investments totalled 1.8 per cent (6.2%). Real estate investments yielded a return of 2.9 per cent (3.4%). The return on other investments was 1.6 per cent (2.5%).
Etera’s solvency capital amounted to EUR 750 million at the end of September (30 June 2015: EUR 893 million). The solvency ratio was 14.5 per cent (17.2%) and the solvency position was 1.3 (1.6).
Efficiency improving as planned
Etera is improving its efficiency according to plan. “Our aim is to improve our competitiveness through the Etera 2020 programme, which has been making good progress,” says Björkman. According to current estimates, Etera’s expense ratio for 2015 is approximately 80 per cent.
Savings have been achieved in, for instance, IT systems and office premises. “We reached another milestone with the completion of our new, more compact premises in Pasila,” says Björkman.
We promote work ability in Finland
Etera actively promotes the work ability of Finns. The company’s work ability services were enhanced during the year and new tools for measuring personnel’s productivity were developed.
“We are committed to promoting the work ability of Finns in many ways. During the year we focused on enhancing the effectiveness of our work ability services. We also shone the spotlight on companies that show outstanding performance in furthering work ability, and we awarded a company for their efforts to promote work ability,” Björkman sums up.
UPM Silvesta Oy, one of five outstanding finalists, was the winner of Etera’s Work Ability Award 2015. “Even though the goal is the same, the means of attaining it are very diverse. It is important to bring to light the different paths to achieving better work ability, well-being at work and results,” Björkman stresses.
For further information, please contact
Stefan Björkman, Managing Director, tel. +358 050 63219, email@example.com
Portfolio structure and returns 30 September 2015, pdf
The figures are unaudited. Etera publishes its investment returns monthly on its website, at etera.fi/financial information. Etera’s financial statements for 2015 will be published on 9 March 2016.