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CEO’s Review

Seafarers’ Pension Fund 2022 Annual Report

Geopolitical risks supersede COVID-19 challenges

Passenger traffic recovered in the latter half of 2022
to a near pre-COVID level. This was also reflected in the
positive development of our premium income and the
number of insured customers. The war in Ukraine, on

the other hand, has had a negative impact caused by,
for example, the rapid increase of ship fuel costs and
other cost pressures brought on by inflation, and
has been further compounded by the financing
costs resulting from the rise in interest rates.
One challenge in the near future will be the price
and availability of financing, which will hinder
investments in more energy-efficient ships.
We focused on our updated strategy, the key
aspects of which are customers and responsibility.
In terms of our customer work, we sent our
customer team to meet especially with HR
representatives of shipping companies, and we
hope that, during 2023, we will be able to resume
ship visits, as we were able to do prior to the
COVID-19 pandemic. In terms of responsibility,
our share of so-called impact investments
continued to grow. While our ESG rating for listed
investments achieved the highest AAA class in the
autumn, portfolio changes for the rest of the year,
such as the increased weight of listed fixed income
investments and emerging markets, caused the rating

to remain at the AA level. Carbon risk was at the same
level as at the beginning of the year.

Our new pension and insurance processing system
worked reliably, and so we focused primarily on further
refining its details during the year. This system will help
us, in the future, to conduct our stakeholder satisfaction
surveys even more efficiently. Our most significant internal
changes included the implementation of our new real
estate investment strategy. We focused on portfolio-
level decision-making and outsourced all tasks related
to property management and maintenance. We also
continued to sell real estate, which made it possible to
improve our liquidity position and to buy listed equity and
fixed income investments as their yield expectations clearly
increased.

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