Search results

No results "{{searchTerm}}"

Financial information & investments

Varma’s investment result increased strongly into positive territory

Varma’s return on investments in January–September stood at 3.1%. Unlisted equity investments and private equity funds generated the best returns. In a zero-interest environment, fixed income investments also yielded very good returns.

Media Release

Interim report’s presentation (pdf)

Interim Report (pdf) 

Varma has published its climate policy

Varma has determined the carbon footprint of its investments and has published its climate policy, which details how the company will achieve a lower-carbon portfolio.

Read more

Other investments

Varma's other investments consist of hedge funds, inflation-linked investments and commodities. At the end of September 2016, other investments accounted for 16 per cent of the investment portfolio.

Hedge fund investments made up 16 per cent of the portfolio. The portfolio is diversified across several different funds and investment strategies. The investments are allocated to low-risk and liquid funds and to longer-term opportunistic funds.

Varma's inflation-linked investments include inflation-linked bonds issued by states with good creditworthiness. The proportion of commodities in the portfolio is low. The diversified commodities portfolio includes investments in, for example, energy, raw materials and food products. Commodity investments are made through funds and derivatives.

Varma's investments by asset class

Read more about our investments in our latest financial releases and annual report.

Solvency

Varma’s solvency is at a high level. Varma’s solvency capital  stood at EUR 10.1 billion at the end of September 2016, i.e. 31.0 per cent of the technical provisions.

More information is available in our financial release and annual report.

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

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.

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.

Share ownership policy

The share ownership policy states what kind of owner Varma is in Finnish companies and the matters that we focus on in the companies in which we have a holding. These matters include the exercising of voting rights, appointment of the nomination committee and of the board of directors, and the composition, compensation and pension of the board of directors.

Read more:

Varma's share ownership policy (pdf)

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

Corporate social responsibility

Varma's operations are based on work performed in Finland. Earnings-related pension is the main source of income for most pensioners. We have a strong commitment to social and economic responsibility, and as a significant Finnish real estate investor we also take responsibility for the environment.

Earnings-related pension provision forms an integral part of Finnish social security, combining both economic and social targets. Varma's economic responsibility involves ensuring the company's own profitability, and at the same time the competitiveness of the earnings-related pension scheme, in a sustainable manner. First and foremost, economic responsibility involves managing pension assets – the company must produce strong returns in the long term on the pension assets entrusted to its care.

For Varma, social responsibility means taking care of the sustainability of earnings-related pension provision. It means responsible investments, efficient earnings-related pension provision and flexible services for our customers. We want to be a pioneer in workability management. It is important for us to develop well-being at work and rehabilitation schemes. It is how we carry our responsibility for the well-being of our client companies' personnel and for the quality of Finnish working life.

Read more:

Financial, social and environmental responsibility (pdf)

Responsible investment