Coverage ratio of ABP falls as a result of lower interest rates
Heerlen/Amsterdam, July 18, 2019. ABP’s financial position deteriorated in the second quarter of 2019. The current coverage ratio fell by almost 4% to 95.3%. The positive return on investments of 2.5% (almost €11 billion) could not prevent this decline. A further fall in interest rates caused ABP's pension liabilities to rise to a record level: €464 billion.
In the second quarter, the actuarial interest rate fell from 102.4% to 100.6%.
The likelihood of pensions being reduced at ABP in 2020 increased considerably in the second quarter.