In Q4, we achieved a good return on our investments: 9.4% over 2024. At the same time, interest rates fell, meaning we set aside more money for current and future pensions. As a result, our coverage ratio fell slightly compared to the end of 2023, but at the end of 2024 it still stood at a healthy 116.2%.
The financial situation of the past few months is reflected in the policy funding ratio, which is an average over 12 months. This ratio increased slightly in the fourth quarter from 116.0% on 30 September 2024 to 116.2% on 31 December 2024.
In the fourth quarter, the current coverage ratio fell from 117.8% on 30 September to 116.7% on 31 December 2024. This concerns the so-called UFR coverage ratio, which is a snapshot of the end of the month. Click here to read more about the development of the UFR coverage ratio and the policy funding ratio.
The investments to hedge the interest rate risk (Matching) achieved a return of +3.2% over the fourth quarter. The investments to achieve an extra return, such as equities, achieved a return of +14.1% over the first four quarters.
The returns of our defined contribution schemes are positive for all age groups over the fourth quarter: 12.5% for participants aged up to 49, 11.4% for participants aged 50 to 55, 10.3% for participants aged 56 to 61. The return for participants aged 62 and over was 9.2% over the first two quarters.
Want to find out more? Read our quarterly report.