Heerlen/Amsterdam, October 20, 2022. For the third quarter in a row, ABP records a negative return on its investments (-€25.8 billion). However, ABP’s financial position will recover in the third quarter thanks to an increase in coverage ratios. In the third quarter of 2022, ABP’s latest coverage ratio rose from 1.5% to 124.2%. The increase is, as in the first six months of the year, mainly due to the rise in interest rates, which means that the fund needs much less capital (-€26 billion) to pay out all current and future pensions. This mitigates the loss on investments. As the latest coverage ratio increased, the policy coverage ratio in the third quarter also rose: to 116.4%.

Highlights

• Current coverage ratio increases to 124.2%
• Return at -5.3% in the third quarter (-€25.8 billion)
• Decrease in pension liabilities by €26 billion due to higher interest rates (+0.5%)
• Policy coverage ratio rises to 116.4%

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