Heerlen/Amsterdam, October 19, 2023. In Q3, ABP’s current coverage ratio leapt from 5% to 118.6%. This was due to the significant increase in interest rates that quarter. As a result of this increase, the value of all pensions that ABP has to pay out also decreased significantly, to €32 billion. The flip side of an increase in interest rates is that it has a negative impact on the financial markets. Consequently, ABP posted a negative quarterly return for the first time: -3.7%. As a result, its available assets decreased to €457 billion. The policy coverage ratio decreased to 114.5%.
Highlights
- Current coverage ratio rises to 118.6%
- Investment result: Q3 -3.7% (-€17.5 billion), YTD 2023 -0.4% (-€1.7 billion)
- Policy coverage ratio falls to 114.5%
- At the end of November this year, ABP will decide whether pensions can be increased in 2024
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