Our investments are guided by many principles of responsibility. We publish information about our results four times a year.
In 2020, the return on Varma’s investments was 2.8 (12.0) percent or EUR 1.4 billion. The value of investments grew to EUR 50.2 (48.7) billion at the end of 2020, the year of the coronavirus.
Financial Statement news release
Financial Statement presentation (pdf)
Varma’s Report of the Board of Directors 2020 (pdf)
Varma invests the assets collected as pension contributions profitably and securely for current and future pensions. At the end of 2020 the market value of Varma’s investments stood at EUR 50.2 billion, of which 26%, i.e. EUR 12.4 billion, is invested in Finnish society. We mainly invest in fixed income, equities, real estate, and hedge funds.
Varma’s solvency remained at a good level throughout the year. Solvency capital, which serves as a risk buffer for investment operations, strengthened to EUR 11.5 billion. The solvency ratio was 129.3%.
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 has nenewed its climate targets for 2020-2035. We aim for a carbon-neutral porfolio by 2035.
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 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.
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 2020 (pdf)
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.
