Mon, 27 Jun, 2016 12:01:29 AM FTimes – STT Report, Jun 27  Pension Insurance Company Ilmarinen's President and CEO Timo Ritakallio. File Photo – Lehtikuva. The shock caused by the outcome of the British EU referendum will not jeopardise the finances of Finland’s two largest employment pension companies, company officials said.
The CEO of pension company Ilmarinen, Timo Ritakallio said the company’s solvency is strong owing to seven years of high investment returns.
Similarly, the CEO of pension company Varma, Risto Murto explained that risk buffers are strong. Murto also pointed out that Friday’s stock market tumble following Brexit was not even the current year’s lowest.
There is however, very little information about how Britain will be different from the rest of the EU and what would be the long-term effect on the economy.
“The process in the markets will likely be messy and prolonged. The final economic impact cannot be solved in one or two months’ time; rather it depends on the negotiating process,” Murto said.
The CEO of Varma, Risto Murto. File Photo – Lehtikuva. The fluctuation in market prices has been expected for a long period for reasons other than Brexit.
According to the assessment of Murto and Ritakallio, the United States’ economic outlook and the presidential elections slated for the end of the year are keeping up the uncertainty in the market.
“In any case, this will be a roller coaster year for the stock markets,” Ritakallio said.
Ritakallio revealed that Ilmarinen has reduced investments in equity weight significantly. This reduces the risk level.
“We are doing just fine in such a market, even though this situation would prolong,” Ritakallio said.
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