Our financial situation deteriorated in the second quarter of 2019. This is due to the fact that interest rates have continued to fall. As a result, we need more capital to be able to pay out the pensions now and in the future. “Fortunately, our investment results were positive in this quarter as well as the previous quarter, as a result of which, despite the falling interest rates, we still find ourselves in a reasonably comfortable position.”, says Ruud Degenhardt, Chairman of the Board. “The chance that we need to reduce pensions next year, still remains small. The chance of an increase of pensions next year has now however become very small.” You can read more about this in the quarterly report published today.
Policy funding ratio as at 30 June 2019: 107.1%
The financial situation of the past few months is reflected in the policy funding ratio, which is a 12-month average. This funding ratio decreased in the 2nd quarter, from 108.0% on 31 March 2019 to 107.1% on 30 June 2019.
Current UFR funding ratio as at 30 June 2019: 103.3%
The current UFR funding ratio decreased from 106.1% to 103.3% in the 2nd quarter. This concerns the so-called UFR funding ratio, which is a snapshot of the position at the end of the month.
Return on investments up to and including 30 June 2019: +11.6% (in the 2nd quarter: 3.1%)
The return on investments was 11.6% in the first two quarters. The investments to hedge the interest rate risk (Matching) showed a positive return of 11.2% in the first two quarters. Fixed-income securities (Return), such as equities, made a 12.0% return in the first two quarters.
Investment returns Defined Contribution schemes
The returns per age category of our defined contribution schemes were positive in the 2nd quarter. The returns in the 2nd quarter of 2019 were +2.7% for participants up to and including age 37; +2.9% for participants aged 38-47; +3.1% for participants aged 48-57; and +3.4% for participants aged 58-68.
Do you need more information? Please consult the quarterly report.