Työttömyysvakuutusrahasto - Other information disclosed according to the rules of the Exchange

Unemployment Insurance Fund's (TVR) preliminary results for Year 2016

Unemployment Insurance Fund     Stock Exchange Release     24 January 2017 at
11:30

Unemployment Insurance Fund's (TVR) preliminary results for Year 2016


Key points

·           Unemployment insurance contributions and other income was 4.089
million euros, increase 23 %
·           Benefits paid including administration expenses was 3.860 million
euros, decrease 4 %
·           Change in net position (profit/loss) was  227  million euros
·           Net position of the Buffer fund was -459 million euros
·           Total amount of Investments and assets was 704 million euros
·           Total amount of Debt and other liabilities was 1.170 million euros
·           Unemployment rate was 8,8 % (estimate), decreased with 0,6 %- points
·           Investment return was 0,3 %

 Full-year result 2016 (estimate)  source: TVR, Statistics Finland
----------------------------------------------------------------------------
 Amounts %                              2 015         2016 e          2017 B
                                                     24.1.2017
----------------------------------------------------------------------------


 Unemployment rate                      9,4       8,9                9,1

 Wage sum growth p.a.                   0,8       1,2                1,1

 UIC, employers (average)               2,34      2,87               2,40

 UIC, employees                         0,65      1,15               1,60


----------------------------------------------------------------------------
 Key Figures, EURm *
----------------------------------------------------------------------------


 Unemployment Insurance Contributions   2 188     2 980              3 006

 Other income **                        1 142     1 109              1 024

 Benefits paid                        -  4 002  -  3 860           -  3 952

 Change in net position               -  677      227                73

 Net position                         -  686    -  459             -  567

 Maximum limit for buffer               1 521     1 521              2 252

 * figures for 2016 are unaudited

 ** contributions from MSAH



Positive result due to improving economy

Finnish economy improved during 2016, which in turn contributed positively to
employment. Unemployment rate decreased and total amount of benefit payments
paid by TVR diminished somewhat. The Unemployment Insurance Fund reported about
the improvement of it's estimate of the Full-year result three times during the
year 2016. The Preliminary result for 2016 is showing the change of the net
position being positive 227 million euros, which is 27 million euros better than
the previous estimate dated 20 December 2016.



Unemployment insurance contributions boosted by higher UIC rates

The Unemployment insurance contribution (UIC) rates were raised by 0,5
percentage points for 2016. The total amount of UICs collected by TVR increased
substantially mainly due to the higher UIC rates and were 2.980 million euros in
2016. In addition to this did the Ministry of Social Affairs and Health (MSAH)
provide funding worth 1.109 million euros as the Government's share of the
benefits paid by TVR. The total amount of Unemployment insurance contributions
increased by 23 %.


TVR managed to pay back short term debt

The  net position  of TVR  became negative  at the  end of  2014 and the deficit
increased  further  in  the  year  2015, at  the  end  of which year was the net
position  negative almost 700 million euros.  TVR launched at 2015 a substantial
debt financing program and issued among other things two senior bonds.

TVR issued in 2016 commercial paper for liquidity management purposes. The
liquidity position improved steadily during the year and TVR managed to pay back
a part of its' short term debt obligations.


Outlook for the year 2017 is improving

The number of persons unemployed is expected  to decrease further during the
year 2017 compared to the previous year. According to the TVR's Budget 2017
would that imply that the change of the net position would be positive in 2017.
Unemployment Insurance Fund is in a better capacity to give out estimates
regarding the development of unemployment in Finland and its operations in late
March 2017 when it is due to present the Full-year report for 2016.



Additional  information:

Janne Metsämäki, Managing Director. tel. +358 40 522 3614
Tapio Oksanen, Deputy Managing Director, CFO tel. +358 40 539 4651



Helsinki, 24 January 2017

Unemployment Insurance Fund (TVR)

Tapio Oksanen
Deputy Managing Director



Distribution:
NASDAQ OMX Helsinki
Media
www.tvr.fi


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