Quarterly report Q2 2017

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

Highlights:

  • Current coverage ratio in second quarter rises to 101.3%
  • Investment return in second quarter: 0.0% (-€ 0.1 billion)
  • Liabilities in the second quarter declined due to increased interest rate (-€ 7 billion)
  • Policy coverage ratio rises by 2.3 percentage points to 94%

Heerlen/Amsterdam, July 20, 2017. ABP's financial position slightly improved in the second quarter of 2017. The current coverage ratio rose by 1.5 percentage points to 101.3%. This is primarily due to the increased interest rate. This reduced liabilities by € 7 billion. ABP's available assets stayed the same in the second quarter due to disappointing returns (€ 389 billion).

Chairman Corien Wortmann-Kool: "The coverage ratio slowly continues to creep up and that in itself is positive. Nevertheless, we do not expect to be able to index pensions much, if at all, in the coming five years. The likelihood of having to lower pensions will continue to be a possibility in the coming years. ABP understands the necessity of modernizing our pension system and therefore supports the outline of the SER Plan as it is currently known. I sincerely hope that the new Cabinet will create the proper basic requirements that will make this possible."

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20-07-2017