Koivu M., Pennanen T., Ranne A. Modeling assets and liabilities of a Finnish pension company: a VEqC approach. Scandinavian Actuarial Journal. This paper develops a stochastic model for assets and liabilities of a Finnish pension insurance company. The assets and liabilities are expressed in terms of seven economic factors from Finland and the EU-area. The development of these factors is modeled with a Vector Equilibrium Correction model, that incorporates statistical information with expert

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... ws in the form of user specified growth rates and long term equilibria. The forecast performance of the resulting model is tested and the model is used in long-term solvency and asset liability simulations.