Varma’s solvency strengthened during 2017 by EUR 1,3 billion, and at the end of the year, solvency capital
amounted to EUR 11,5 billion. Varma’s pension assets in relation to technical provisions (solvency ratio)
was 133.5%. Solvency capital was at a strong level: at 1.7 times higher than the solvency limit. More information is available in our financial 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.