In 2024, the return on Varma’s investments was 10.2 (6.0) per cent. The value of Varma’s investments totalled EUR 64.4 (59.1) billion.
“Pension assets grew remarkably last year, and it was one of the best years for investments in the past decade. The high returns can be attributed to broad diversification and the strong performance of the equity markets. The geographical differences were great,” says Varma’s President & CEO Risto Murto.
Of Varma’s investments, listed equities returned 16.5 (10.3) per cent. The return on all equity investments was 14.9 (8.6) per cent. Private equity investments yielded 12.0 (5.5), fixed income investments 4.7 (5.6) and hedge funds 10.5 (6.1) per cent. The return on real estate investments was -2.8 (-4.3) per cent.
“Almost all asset classes performed favourably. The markets’ faith in the USA held strong throughout the year, and optimism surrounding AI drove the performance of tech companies. The outcome of the US presidential elections was in the end clear, which saved the investment markets from unrest at the end of the year,” says Varma’s Chief Investment Officer Markus Aho.
“The US and European economies are heading in different directions. Finland needs a competitive and thriving Europe, especially given the growing significance of tariffs and other barriers in world trade,” Murto points out.
Varma’s solvency ratio was 134.6 (130.4) per cent, and solvency capital was EUR 16.8 billion. Varma has long been the most solvent earnings-related pension company in Finland.
Pension reform strengthens the financing of pensions
The central labour market organisations reached an agreement on pension reform in January. The aim of the reform is to stabilise the pension system and improve investment returns in the long run.
“We are pleased that the labour market organisations have negotiated an agreement that supports the pension system’s sustainability in the long term. The agreement also corresponds well with pension companies’ assessments of how the system can be strengthened in practice,” says Murto.
The next phase of the reform is the drafting of legislation based on the proposed measures, under the lead of the Ministry of Social Affairs and Health.
Customer acquisition at a record high level, efficiency improved, new features in digital services
The TyEL payroll of Varma’s client companies grew 2.9 per cent in 2024. Varma’s successful customer acquisition contributed to the increased payroll. Varma’s sales result in terms of euro-denominated premium income was at an all-time high. EUR 130 million in net TyEL income was transferred to Varma from other earnings-related pension companies, and EUR 57 million in TyEL policies were sold to new clients. The corresponding sales of YEL policies totalled EUR 28 million.
Varma further improved its operational efficiency during the year. The operating expenses related to TyEL and YEL activities decreased by nearly six per cent, or EUR 5 million, from the previous year. Since the start of 2025, the administrative cost contributions of Varma’s customers decreased even further.
Varma developed its digital services, for instance, by improving their user-friendliness and increasing the number of digital channels for interaction. Satisfaction with Varma’s customer service was high.
In 2024, Varma reviewed the YEL income level of roughly 7,000 entrepreneurs. This year, Varma will review the income of approximately 14,000 entrepreneurs. The Finnish Government launched an assessment of the need to develop the Self-employed Persons’ Pensions Act (YEL).
Varma once again ranked among the top companies in the EcoVadis sustainability assessment
EcoVadis, a corporate sustainability assessment specialist, awarded Varma the Platinum EcoVadis Medal for the fourth time. Varma ranked in the top 1% of the 150,000 companies analysed. EcoVadis assesses companies’ sustainability performance from the perspectives of environmental issues, labor practices and human rights, ethical business conduct, and supply chain and procurement sustainability.
Varma will publish its first Sustainability Statement in accordance with the Corporate Sustainability Reporting Directive (CSRD) as part of the 2024 Report of the Board of Directors.
Partial old-age pension retained its popularity
The number of applications for partial old-age pension received by Varma increased 45 per cent compared to 2023. Altogether around 6,900 applications were received steadily throughout the year. In 2025, not a single new age cohort will reach the lower age limit for partial old-age pension, as the age limit for those born in 1964 is 62. In 2024, the average age of those retiring on partial old-age pension was 61.8 years.
At the beginning of 2025, a 1.3 per cent index increase was made to pensions. At year-end, Varma was paying out pensions to 351,000 (350,000) people.
Varma’s goal is to lengthen people’s careers
The number of disability pension applications received by Varma increased 2.4 per cent. A total of approximately 13,600 applications were submitted.
The number of granted disability pensions was highest among the 55+ age groups. The largest number of disability pensions was granted to employees in the construction and transport sectors, with the dominant reason for their disability being musculoskeletal diseases.
Mental health disorders were the main reason for new disability pensions (32.2 per cent). Overall, new disability pensions granted for mental health reasons declined 11.9% compared to 2023.
Varma’s goal is to lengthen careers, for instance, by developing work ability management services and providing effective rehabilitation.
Varma Mutual Pension Insurance Company is a responsible and solvent investor of pension funds. The company is responsible for the statutory earnings-related pension cover of 970,000 people in the private sector. Premiums written totalled EUR 6.7 billion in 2024 and pension payments stood at EUR 7.5 billion. Varma’s investment portfolio amounted to EUR 64.4 billion at the end of 2024.
Additional information:
Hanna Kaskela, Senior Vice President, Sustainability & Communications, tel. +358 40 584 5045 or hanna.kaskela(at)varma.fi
Marjut Tervola, Communications Manager, tel. +358 45 673 0120 or marjut.tervola(at)varma.fi