Quarterly Report Q3 2017

Gradual rising ABP coverage ratio trend continues

Highlights:

  • Current coverage ratio in third quarter rises to 103.3%
  • Investment return in third quarter: 1.9% (+ €7.3 billion)
  • Liabilities in third quarter remain the same
  • Policy coverage ratio rises to 99.3%

Heerlen/Amsterdam, October 19, 2017. The gradual rising ABP coverage ratio trend continued in the third quarter of 2017. ABP’s financial position slightly improved four quarters in a row (starting from September 2016). The current coverage ratio rose by 2 percentage points to 103.3%. This is primarily due to the investment return. ABP's available assets increased by over € 7 billion this quarter to € 396 billion. Liabilities stayed the same as in the second quarter and amounted to € 383 billion.

Chairman Corien Wortmann-Kool: ‘The fact that the coverage ratios are increasing is positive. However, this does not mean that we should leave our system unchanged. The labor market has changed and participants have different demands. The current system is in dire need of change if we are to be able to offer our participants a robust and sound pension in the future as well. ABP is pleased that the modernization of the system is on the agenda of the governing agreement and that mandatory participation, tax margin and sharing good fortune and bad fortune together are being recognized as important fundamental principles. I hope that the employers’ and employees’ organizations in the Social and Economic Council (SER), with the support of the new government, will take the next step in adjusting the system. We will also continue to make a contribution to the continuing process on the basis of our expertise.’

19-10-2017