In our last quarterly report of 2023, Chairman of the Board Jochem Dijckmeester says: “The 4th quarter was a good quarter for our investments. We closed 2023 with a return of 11.7%. However, our coverage ratio fell slightly in the 4th quarter compared to 3rd quarter, from 117.3% to 116.5%. This was caused by the sharp drop in interest rates in the last quarter and the increase in pensions by 5.2% as of 1 January 2024.”
Policy funding ratio 31 December 2023: 116.5%
The financial situation of the past few months is reflected in the policy coverage ratio, which is an average over 12 months. This coverage ratio fell slightly in the fourth quarter from 117.3% to 116.5% on 31 December 2023.
Present UFR coverage ratio 31 December 2023: 112.5%
The current coverage ratio fell from 120.7% to 112.5% in the fourth quarter. This concerns the so-called UFR coverage ratio, which is a snapshot of the end of the month.
Click here to read more about the development of the UFR coverage ratio and the policy funding ratio.
Return on investments up to and including 31 December 2023: 11.7%
The return on the investments is 11.7% over 2023. The investments to hedge the interest rate risk (Matching) achieved a return of 12.8% over the fourth quarter. The investments to achieve an extra return, such as equities, achieved a return of 10.5% over the first four quarters.
Investment Returns Defined Contribution Schemes 2023
The returns of our defined contribution schemes are positive for all age groups over the fourth quarter: 10.8% for participants aged up to 49, 11.1% for participants aged 50 to 55, 11.3% for participants aged 56 to 61. The return for participants aged 62 and over was 11.5% over the first four quarters.
Want to find out more? Read our quarterly report.