Financial information & investments

In 2019, Varma’s investments yielded a record-high return of EUR 5.2 billion, or 12.0% (–2.0%). By year-end, the market value of the investments rose to EUR 48.7 (44.0) billion. Varma’s pensions assets have doubled since the financial crisis. Efficiency remained at an excellent level, which means that Varma is able to pay the highest client bonuses ever.

Financial Statements news release
Financial Statements presentation (pdf)
Report of the Board of Directors 2019 (pdf)

Varma invests the assets collected as pension contributions profitably and securely for current and future pensions. At the end of 2019 the market value of Varma’s investments stood at EUR 48.7 billion, of which 22%, i.e. EUR 11.1 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)

The good investment returns strengthened Varma’s solvency capital, which rose to EUR 11.6 (9.6) billion, i.e. to 1.8 times the solvency limit. 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.

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:

• PRI responsible investment report 2017 (pdf)
• PRI responsible investment report 2016 (pdf)
• PRI responsible investment report 2015 (pdf)
• PRI responsible investment report 2014 (pdf)

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

Varma’s Principles for Responsible Investment (pdf)

Responsible investment in asset classes (pdf)

Climate policy for Varma's investments (pdf)

Carbon footprint of Varma’s investments

Share ownership policy (pdf)

Varma’s corporate social responsibility

We have published our updated share ownership policy, which describes the expectations Varma has of companies in which it is a major shareholder.

Read more:

Varma's share ownership policy (pdf)

Varma's memberships in shareholders' nomination boards of listed companies (pdf)

News release: Varma brings good governance and responsibility to the core of its ownership steering

Shareholder meetings of Finnish listed companies and Varma's voting 2019 (pdf)

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.