Suomi-yhtiö

Review by the President and CEO

The year 2009 was an excellent year for the Suomi Mutual. As a result, customers received more than EUR 160 million in additional benefits. In the coming years, the introduction of new solvency requirements for insurance companies may mean lower additional benefits. If the increases in solvency requirements envisaged by the EU will be implemented, companies will have to lower their investment risk. That in turn will make it more difficult to provide customers with additional benefits.

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Customer Benefits

High investment returns allowed the company again to provide generous additional benefits. Old insurance policies may receive a return of more than 12 per cent on their savings for 2009. The return on other savings will also be high, between 4.5 and 5.0 per cent. The benefits will be paid during 2010. Of the special additional benefits of five billion markka (EUR 840 million) promised to old insurance polices, some EUR 100 million still remains undistributed. The company has distributed almost EUR 1.2 billion as additional benefits in the period 2005−2010.

Investments

The return on Suomi Mutual’s investments was very good, 12.5 per cent. The company gradually increased its risk during the financial year. It had been lowered during 2008, which had been characterised by a financial crisis. The annual overall return for these two years was about four per cent, which was an excellent achievement considering the market development and the operating environment. It can be said that the company has managed its business successfully and made a full recovery after the financial crisis.