Quarterly report Q4 2019

23 januari 2020

Heerlen/Amsterdam, January 23, 2020. ABP recorded a return of 16.8% in 2019 and added 67 million euros to the fund's assets. The substantial decline in interest rate resulted in a 65-billion euro increase in the pension liabilities during the course of the year. As a result, the coverage ratio at the end of December 2019 was only slightly different (0.7%) from the ratio at year-end 2018. The decline in the current coverage ratio in the second and third quarters of 2019 was compensated for by the increase in the last quarter. The current coverage ratio of 97.8% ultimately recorded at the end of December (which is above the critical limit of 95%) removed the need to reduce pensions in 2020. The fund did not need to make use of the guidelines provided by Mr. Koolmees, Minister of Social Affairs. However, the policy coverage ratio, which is important for pension increases or reductions, was 95.8% at the end of 2019. Consequently, the likelihood of reductions in 2021 and the following years remains real.