PME retains strong buffer despite geopolitical turmoil
PME’s financial position declined in the first quarter of 2026. The current funding ratio decreased from 125.3% at the end of 2025 to 121.5% at the end of the first quarter of 2026. This was mainly due to a slightly lower interest rate. Geopolitical instability has increased further due to the war in Iran. As a result, financial markets are in turmoil.
Key figures for the first quarter of 2026
- Current funding ratio as at 31 March 2026: 121.5%
- Policy funding ratio as at 31 March 2026: 122.2%
- Investment return for the first quarter of 2026: 0.3%
- Pension assets rose to approximately €60.3 billion in Q1 2026
- Pension liabilities increased slightly to approximately €49.6 billion in the first quarter of 2026
Alae Laghrich, Chairman of the Executive Board: ‘In the past quarter, the world was faced with rapid geopolitical shifts. The war that is raging between the US, Israel and Iran, resulting in the blockade of the Strait of Hormuz, has created uncertainty in the financial markets.
Fortunately, PME started this year with a good starting point, a high funding ratio of more than 125 per cent. This gives us a buffer in these challenging market conditions. The return in the first quarter was slightly positive at 0.3%. However, the funding ratio fell to 121.5% due to a lower interest rate. At the same time, there is also the possibility of a rapid recovery. When this message was published, our funding ratio had risen back to approximately 125%. This shows the current reality, in which upward and downward outliers are more common.
We never let ourselves be led by passing fads, but this volatility does emphasise why we are currently protecting our reserves. By further increasing the interest rate hedge in the past quarter, we are preventing the pensions of our participants from becoming unnecessarily vulnerable to the whims of the world market just before the transition to the new pension system.’
Key figures for the first quarter of 2026
