Heerlen, 21 January 2010 - ABP’s financial position improved further in the second half of 2009. In 2009, ABP booked a return on investment of +20.2%. In the second half of 2009, the return was 15.1%. The improved financial position of the fund is also reflected in the coverage ratio, the ratio of assets to liabilities. In the second half of 2009, ABP’s coverage ratio rose from 98% to 109%.
ABP periodically carries out studies into the changes in average life expectancy. As these studies revealed that the average life expectancy of the Dutch population is greater than previously estimated, ABP has adjusted its liabilities, i.e. the pension benefits which the fund must pay out now and in future, to take this increased life expectancy into account. As a result, these liabilities have increased significantly. This has a (one-time) negative impact on the coverage ratio, causing it to decrease from 109% to 104% as of the end of 2009.
Chairman of the Board Nijpels: “It is clear that ABP’s financial position also improved in the second half of 2009. The coverage ratio rose and the rates of return were good. We are on the road to recovery but remain cautious, as it is uncertain what will emerge after the next bend. Financial markets remain unpredictable.”
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