- The return on Veritas’ investments stood at -0.4 per cent during the first quarter.
- The return on fixed income investments was 0.9 per cent.
- Equity investments dropped to -2.4 per cent.<0
- The return on real estate investments was 1.6 per cent.
- The solvency capital totalled 583.7 million euro and was 26.5 per cent of the technical provisions.
The total yield on Veritas’ investments stood at -0.4 per cent during the first quarter. Niina Bergring, Chief Investment Officer at Veritas, describes the first quarter as having been especially turbulent and divided in terms of direction.
“We prepared for the weak start of the year with a moderate risk allocation. Thus, we performed reasonably well despite significant market movements. Our solvency remained at a good level.”
China’s indebtedness and accelerated capital outflow caused concern at the start of the review period. The imbalance in the country’s national economy has continued to increase, as the State has sought to boost growth through increased lending.
During the quarter, the atmosphere in the market experienced a radical turn, however, from extremely negative to positive.
“This was due to the communication and expansive measures enacted by the central banks in the United States, Japan and Europe. The growth figures for the economy were weaker than anticipated and the global growth outlooks were cut back during the quarter. The result expectations of companies have, in some cases, decreased drastically."
“As the real economy has not shown any positive development, the reliance on central banks as guarantors of market confidence has increased further. The measures available to the central banks have proven, in this situation, to be quite limited, and there is even talk of ‘helicopter money’.”
Bergring speculates that the nervousness in the market will continue. "Our basic allocation is still based on a slightly positive return expectation for this year. Our pension scheme has a strong foundation thanks to high long-term yields, and it guarantees one of the world's best pension security bases for the insured."
Solvency remains strong
At the end of the first quarter, Veritas’ solvency capital was 26.5 per cent of the technical provisions and 2.2 times the solvency limit.
The information in the performance report for 1-3/2016 has not been audited.
Veritas’ annual report for 2015 is available from our website at veritas.fi/annualreport2015.
VERITAS PENSION INSURANCE
For more information, please contact:
CIO Niina Bergring, tel. 010 5501 882, 040 8221 514
Financing Director Tommy Sandås, tel. 010 5501 186, 050 593 0138