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Our investments are guided by many principles of responsibility. We publish information about our results four times a year.

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Varma’s investment returns continued to recover – the development of employment in Finland is even more critical to the pension system than realised returns

Varma’s investment returns continued to recover in the third quarter from the abrupt fall in share prices caused by the coronavirus crisis early in the year. The market value of the investments increased by EUR 1.5 billion compared to the situation at the end of June and totalled EUR 46.8 billion at the end of September. According to President and CEO Risto Murto, an issue that is even more critical for the pension system than realised returns is the development of employment. 

Interim report news release
Interim report presentation (pdf)
Interim report 1 January – 30 September 2020 (pdf)

Varma’s investments

Varma invests the assets collected as pension contributions profitably and securely for current and future pensions. At the end of September 2020 the market value of Varma’s investments stood at EUR 46.8 billion, of which 27%, i.e. EUR 12.7 billion, is invested in Finnish society. We mainly invest in fixed income, equities, real estate, and hedge funds.

Read more about our investment principles (pdf)

Solvency

Varma’s solvency capital, which serves as a risk buffer for investment operations, remained at a strong level. Solvency capital increased in the third quarter by EUR 0.9 billion compared to the situation at the end of June and stood at EUR 9.7 (11.6 on 1 Jan) billion. The solvency ratio was 125.7 percent (130.8 percent on 1 Jan).
More information is available in our news release.

Strong solvency upholds confidence in pension provision. Better investment returns mitigate the pressure to increase pension contributions. Varma’s strong solvency benefits our clients through lower insurance contributions.

In good investment years, investment returns are used to increase the solvency capital, while in lean investment years, the solvency capital shrinks. Good solvency enables Varma to aim for higher returns by making higher-risk investments. As a rule of thumb, one percentage point more in investment returns in the long term means a two-percentage-point drop in pension contributions.

Solvency capital increased in the third quarter by EUR 0.9 billion compared to the situation at the end of June and stood at EUR 9.7 billion.

Varma's climate policy

Varma has nenewed its climate targets for 2020-2035. We aim for a carbon-neutral porfolio by 2035.

Responsible investment

Varma invests in a responsible manner. We incorporate responsibility system-atically in all our investment operations.

We require that our investees comply with international agreements and standards, the most important of which are:

  • The UN Global Compact initiative on corporate responsibility
  • The OECD guidelines for multinational enterprises
  • The ILO labour conventions

The topics covered by Varma's principles for responsible investment include mitigating climate change, which is one of Varma's CSR targets. Because this topic is so important and topical, we have drawn up a separate climate policy (pdf). Responsibility in also included in our ownership policy (pdf).

Varma has signed the UN Principles for Responsible Investment (PRI) and published a PRI responsible investment report:

Varma has also signed the CDP (formerly Carbon Disclosure Project), and joined the PRI-supported Montréal Pledge initiative.

Read more about Varma's sustainability

Share ownership policy

Market sounding

Varma requires the disclosing market participant to be compliant with EU's Market Abuse Regulation (MAR).

The disclosing market participant must follow Varma's procedure for market sounding purposes.

Previous financial information

Read more

Annual Reports

Read more

Current issues

Varma made a USD 240 million investment in a sustainable fund that invests in emerging markets
News
20.01.2021
Varma has clarified its ways of engaging with investees: : companies that operate unsustainably may end up on an observation list or blacklist
News
15.12.2020
Varma driven by tough climate targets in GRESB real estate sustainability assessment
News
07.12.2020
Varma’s investment returns continued to recover – the development of employment in Finland is even more critical to the pension system than realised returns
News
30.10.2020
Varma once again among the leaders in PRI’s responsible investment assessment thanks to excellent climate reporting
News
05.10.2020
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