Etera is between a rock and a hard place. The solvency of the fourth largest pension insurance company in Finland deteriorated further in the final quarter of last year, according to its financial statement. Already last autumn, the Financial Supervisory Authority (Fiva) expressed its concerns about the solvency position of Etera in a report highlighting the differences in the solvency margins of Finnish pension insurers. “The differences grew further in the final part of the year,” Tarja Taipalus, a chief actuary at Fiva, now says.
Although Taipalus refuses to comment on specific cases, the data published by Etera suggest that the concerns of Fiva stem expressly from it.
At the end of September, the solvency capital of Etera equalled 16.2 per cent of its provisions. By late December, the solvency margin had eroded to 15.4 per cent, while the average solvency margin of other pension insurers in Finland stood at 28 per cent.