Press release 17 December 2018

Finnish insurance sector would maintain its solvency in weakening of investment markets

The Financial Supervisory Authority (FIN-FSA) conducted a national extension of the stress test of the European Insurance and Occupational Pensions Authority (EIOPA), covering three insurance groups and five employee pension insurance companies. The companies calculated the impact on solvency of two EIOPA risk scenarios. 

“Both the insurance groups and the employee pension insurance companies would withstand the impact on their solvency of a rapidly deteriorating investment climate,” states Head of Department Samu Kurri on the results of the FIN-FSA’s insurance sector stress tests.

The results were largely as expected. The market scenarios had a negative impact on the value of the companies’ investment assets (equity, fixed income, real estate and other investments) and on their solvency.

In the case of the insurance groups, the solvency ratio declined for all three insurance groups in both of the market scenarios. The scenario describing a fall in the general level of interest rates (yield curve) had a larger negative impact on the solvency ratio.

For the employee pension insurance companies, the second scenario, describing a rise in the general level of interest rates (yield curve), was more negative in terms of its impact. The value of the employee pension insurance companies’ investment assets declined significantly in this scenario, which weakened the companies’ solvency.  In the scenarios, the stress directed at equity investments caused the largest losses. Overall, however, the solvency capital of the employee pension insurance companies still exceeded the minimum capital requirement.

For further information, please contact

Samu Kurri, Head of Department. Requests for interviews are coordinated by FIN-FSA Communications, tel. +358 9 183 5030, weekdays 9.00–16.00.


Insurance groups and employee pension insurance companies participating in the FIN-FSA’s national stress test extension

Insurance groups:

  • Fennia Group
  • LocalTapiola Group
  • OP Group (Insurance)

Employee pension insurance companies:

  • Veritas Pension Insurance Company
  • Försäkringsaktiebolaget Pensions-Alandia
  • Ilmarinen Mutual Pension Insurance Company
  • Elo Mutual Employment Pension Insurance Company
  • Varma Mutual Employment Pension Insurance Company