Quarterly report Q4 2020

Heerlen/Amsterdam, January 21, 2021. Thanks to the coronavirus pandemic, 2020 was an unusual year across the world. The impact on ABP, too, was considerable. The coverage ratio went into a nosedive in the first quarter (from 97.8% to 82.0%) and was in the danger zone for quite a while. On the back of the recovering stock markets and stable interest rates in the fourth quarter, the coverage ratio rose above the 90% mark. With a coverage ratio of 93.2% as of December 31, 2020, a lowering of pensions at ABP has been ruled out for this year. Despite the poor first quarter (- €46 billion), ABP posted a positive annual return of 6.2% in 2020 (+€29 billion, see graph). Liabilities rose sharply last year by €53 billion.

Highlights

  • No reduction of pensions in 2021
  • ABP believes that an unnecessary reduction in the transition period must be avoided
  • Current coverage ratio at the end of 2020 93.2% (2019 97.8%)
  • Annual return of +6.2% (+€29 billion)
  • Increase in pension liabilities by €53 billion mainly due to lower interest rate

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21-01-2021

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