Quarterly report Q2 2016

ABP’s financial position stable

Highlights:

  • Current coverage ratio virtually unchanged at: 90.6%
  • Positive return for the second quarter 2016 of 3.9% (€ 13.9 billion)
  • Liabilities rise due to declining interest rates (€ 14 billion)
  • There continues to be a distinct probability of a reduction in pensions in 2017

Heerlen, July 21, 2016. The second quarter was an eventful quarter, but on balance ABP’s financial position remained stable. At the end of the second quarter, the current coverage ratio of 90.6% was virtually the same as it was at the end of the first quarter (90.4%). As such, the coverage ratio stayed just above the critical 90% limit. ABP booked a positive investment return of almost € 14 billion in the second quarter and had € 372 billion in capital at the end of June.

Chairman Corien Wortmann-Kool: 'Due to our positive second quarter investment results, we managed to keep our coverage ratio to virtually the same level as in the first quarter. A reduction in pensions in 2017 remains a real possibility, however. To prevent this, the coverage ratio as at the end of December this year must stay above the critical 90% limit. The development over the coming six months of the returns on the financial markets and of the interest rates used to calculate the pension liabilities are determining factors in this respect. The impact of the Brexit outcome at the end of the second quarter was limited due to positive returns before, as well as after the results of the British referendum.'

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21-07-2016