Quarterly report Q1 2017

ABP’s financial position improves due to interest rate rise.

Highlights:

  • Current coverage ratio rises by 3.1 percentage points to 99.8% in first quarter
  • Positive investment return for first quarter: 2% (+€7.5 billion)
  • Liabilities decline in first quarter due to rising interest rates (-€5 billion)
  • Policy coverage ratio rises by 2.3 percentage points to 94%

Heerlen/Amsterdam, April 20, 2017. ABP’s financial position improved in the first quarter of 2017. The current coverage ratio rose by 3.1 percentage points to 99.8%. The improved financial position is attributable to a positive investment return and slight rise in the interest rate. The increase in the interest rate reduced the liabilities by €5 billion. In addition to this, ABP earned €7.5 billion for its participants on investments. At the end of March, ABP had capital amounting to €389 billion.

Chairman Corien Wortmann-Kool: ‘Just as occurred in the previous quarter, the current coverage ratio rose in the first quarter of this year. This is now almost 100%, which means that ABP’s assets and liabilities are in balance. This does not mean we are at the level where we should be, however. The policy coverage ratio, important for increasing pensions, is also showing an upward trend, for the first time in a long time. Despite the slight increase, the current level of 94% is still a far cry from the 110% needed to be able to increase pensions. Indexation is still a long way off.’

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20-04-2017