EIOPA published the results of 2019 IORP stress test on 17 December 2019. 176 IORPs from 19 countries participated in this third Europe-wide IORP stress test whose objective was to assess the resilience of IORPs to an adverse market scenario, and to analyse the second-round effects on the real economy and financial markets.
PensionsEurope is not surprised by the results. The 2019 stress test used the relatively challenging end-2018 as the reference date and applied a substantial shock on especially equity related investments on top of that. As some of the major stocks indices fell sharply in December 2018 – suffering one of the worst declines since the 2008 financial crisis – with an additional shock in the stress scenario had a significant impact on the results.