Quarterly report Q1 2019
Fall in interest rates prevents increase in ABP coverage ratio
Heerlen/Amsterdam, April 18, 2019. ABP’s financial position improved in the first quarter of 2019.The current coverage ratio rose by 2% to 99.0%. A very positive contribution to this was the return of 8.2% (€32.5 billion). In one fell swoop, this compensated for the negative return of 2018 (-2.3%). The fall in interest rates caused an increase in pension liabilities of €25 billion. As a result, the development of interest rates is slowing down the increase in the current coverage ratio. However, the policy coverage ratio, which is important for pension increases or reductions, fell from 103.8% to 102.4% in the first quarter. This percentage is now almost 2% below the minimum required level of 104.2%.