In our fourth quarterly report published today, chair of the Board Jochem Dijckmeester says the following about this:
“We look back on a year of extremes. On the stock exchanges, after a dramatic start, records were broken in the fourth quarter of 2020. In the economy, we see very different effects in various sectors.”
“We are pleased with the positive return in 2020. And with the arrival of the Corona vaccines, which offer prospects for the future. At the same time, we are still dealing with strict Corona rules and there is a lot of uncertainty about further developments this year.”
Policy coverage ratio 31 December 2020: 96.3%
The financial situation of the past few months is reflected in the policy coverage ratio, which is a 12-month average. This coverage ratio decreased in the fourth quarter, from 97.0% on 30 September 2020 to 96.3% on 31 December 2020. Here
you can find more information about the development of the policy coverage ratio.
Current UFR coverage ratio as at 31 December 2020: 102.5%
The current UFR coverage ratio rose from 97.4% to 102.5% in the fourth quarter. This concerns the so-called UFR coverage ratio, which is a snapshot of the position at the end of the month. Here
you can find more information about the development of the UFR coverage ratio.
Return on investments up to and including 31 December 2020: +6.7% (in fourth quarter: +5.4%)
The return rose by +5.4% in the fourth quarter. The total return of the investments in 2020 was therefore +6.7%. The investments to hedge the interest rate risk (Matching) showed a return of +10.8% up to and including the fourth quarter. The investments to achieve an extra return (Return), such as equities, yielded a return of +5.0% up to and including the fourth quarter.
Investment returns defined contribution schemes
The returns of our defined contribution schemes were positive in the fourth quarter:
+7.6% for participants up to age 49; +6.9% for participants aged 50-55; +6.1% for participants aged 56-61; and +5.3% for participants from age 62. The returns for the whole of 2020 can be found in our quarterly report.