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2017-01-24

Työttömyysvakuutusrahasto: 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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This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Työttömyysvakuutusrahasto via Globenewswire

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