Quarterly report Q4 2021

27 januari 2022

Heerlen/Amsterdam, January 27, 2022. In 2021, ABP’s current coverage ratio increased by 16.7% to 110.2% at the end of the year. Despite the uncertain economic outlook at the beginning of the year, it was a good investment year for ABP, with the return for 2021 at 11.1%. ABP’s assets grew to €550 billion by the end of 2021, mainly due to favorable conditions on the financial markets. Interest rates also rose during the year, which had the positive effect of reducing the value of the liabilities (all pension payments now and in the future) for the fund. The policy coverage ratio also increased (by 15.2% to 102.8% by the end of 2021), but ended up below the level at which pension increases are possible.

Highlights

  • Current coverage ratio as at end 2021: 110.2% (93.5% as at end 2020) 
  • Annual return of +11.1% (+€54.7 billion) 
  • Assets as at end 2021: €550 billion (€495 billion as at end 2020)
  • Decrease in pension liabilities by €31 billion mainly due to higher interest rates
  • Policy coverage ratio still too low to increase pensions

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