Financial situation has further improved in third quarter

11 April 2021

Financial situation has further improved in third quarter

In the third quarterly report of 2021, chairman of the Board Jochem Dijckmeester stated:

"Our improved financial situation in the first two quarters of this year fortunately persisted in the third quarter. Our coverage ratios have continued to rise further since the end of 2020. Due to higher interest rates, the value of our bonds decreased. Our investments in equities fortunately amply made up for this. As a result, we made a positive return of +2.9% up to and including the third quarter."

Policy coverage ratio as at 30 September 2021: 107.9%
The financial situation of the past few months is reflected in the policy coverage ratio, which is a 12-month average. This coverage ratio increased in the third quarter, from 103.9% on 30 June 2021 to 107.9% on 30 September 2019. Here you can find more information about the development of the policy coverage ratio.

Current UFR coverage ratio as at 30 September 2021: 112.9%
The current coverage ratio decreased from 113.3% to 112.9% in the third 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 30 September 2021: +2.9%
The return was -0.3% in the third quarter. Consequently the total return in 2021 is +2.9%. The investments to hedge the interest rate risk (Matching) showed a return of -7.3% in the third quarter. The investments to achieve an extra return (Return), such as equities, showed a return of +10.80% in the third quarter.

Investment returns defined contribution schemes 2021
The returns on our defined contribution schemes were positive for all age groups up to and including the third quarter: +8.1% for participants aged up to 49, +6.3% for participants aged 50-55, +4.5% for participants aged 56-61, and +2.7% for participants aged 62 and over.