FINLAND - Tapiola Pension's investment income has dropped to 4.1% during 2007, down from 6.8% in 2006, despite all asset classes performing positively.
The solvency ratio of Tapiola Pension was about 21.4% and the solvency margin was 1.8-fold the solvency limit. According to preliminary figures, the customer bonuses and rebates were estimated to amount to about €20m (US$29.44m).
Hanna Hiidenpalo, investment director, Tapiola Pension's, added: "The general return level on the equity market 2007 was clearly lower than in 2006 which resulted in decreased total investment income in comparison with 2006. The return level of Tapiola Pension's equity and fixed-income investments exceeded the return of the market indexes."
Tapiola Pension changed portfolio allocations towards the end of the year. The amount of equity investments was decreased to under 30% in order to budget for the shaky market development at the beginning of 2008.
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