Strong equity performance boosted Varma’s investment returns to 6.9 per cent

Between January and September, the return on Varma’s investments was 6.9 (4.4) per cent. The value of Varma’s investments was EUR 72.4 (68.3 on 1 Jan) billion.  

“Despite geopolitical tensions, the year has brought solid returns to investors. The impacts of the AI boom are now strongly spilling over into the Finnish export industry, and Finland’s economy has also shifted into export-driven growth. The rise in energy prices and interest rates caused by the war in Iran could, however, slow Finland’s economic recovery,” says President and CEO Risto Murto.

Of Varma’s investments, equities yielded 11.2 (5.8) per cent. The return on listed equities was 13.8 (10.0) per cent. The return on fixed income investments was -2.0 (3.5) per cent, on private equity investments 4.9 (-2.3) per cent, on real estate investments -2.1 (1.8) per cent and on hedge funds 5.7 (3.6) per cent.

“Companies’ strong earnings growth and capex in AI have buoyed the equity markets. Long-term interest rates have neared their highest levels of the 2000s in many countries, heightening market unease. We have seen corrections in individual sectors and highly concentrated markets, but as a whole, equity returns have still developed quite positively,” says Varma’s Deputy CEO Markus Aho. 

Varma’s solvency ratio was 137.4 (135.7 on 1 Jan) per cent, and solvency capital was EUR 20.0 (18.2 on 1 Jan) billion. The TyEL payroll of Varma’s client companies grew 4.0 per cent compared to the same period in 2025. Solid payroll development strengthens premium income and contributes to the sustainability of the earnings-related pension system.

Equities make up 66 per cent of Varma’s investments 

At the end of September, equity investments accounted for 66 per cent of Varma’s investment portfolio. The pension reform that took effect in July has allowed earnings-related pension companies to increase their investment risk in order to pursue stronger returns.

The pension reform also allows the subsidiaries of earnings-related pension insurance companies to use leverage in their real estate investments. Since the beginning of July, Varma has released equity tied up in real estate investments against external debt. With regard to Varma’s direct real estate investments, the reported figure represents the equity value of its holdings.

Varma backs the growth of Finnish companies

Varma has increased its investments in Finnish growth companies. During the reporting period, Varma made follow-on investments in several domestic growth companies pursuing public listings and international expansion. In the past 18 months alone, Varma has invested close to EUR 400 million in Finnish growth companies through equity financing. 

Through investments in growth companies, Varma seeks a good long-term return for pension assets and diversification across companies at various stages of development. The investments also support the growth and employment of Finnish companies.

Keilaniemen Portti – a prominent gateway to Espoo 

Keilaniemen Portti office building commissioned by Varma was completed at a traffic hub where Länsiväylä meets Ring Road I. The premises have been let under long-term lease agreements and handed over to the tenants. Keilaniemen Portti’s timber-clad facade and unique architecture make the building a gateway landmark in Espoo. The building is in the running for the 2026 Wood Award.

Varma will help entrepreneurs with choices related to the YEL reform

The reform of the Self-Employed Persons’ Pensions Act (YEL) is currently before Parliament. According to the bill, entrepreneurs would in future be able to choose whether their YEL income is based on the earnings from their entrepreneurial activities or on an overall assessment of the monetary value of their work input, similar to the current model. Varma is preparing to support entrepreneurs with the choices related to the change.

The pension system’s financing outlook is balanced

Pensions have been the subject of lively public debate. Measures to cut pensions and raise the retirement age have also been put forward as a means of balancing the public budget. The financial state of Finland’s earnings-related pension system is strong, however.

“The crisis in Finland’s public economy is not the pension system’s financial crisis. Pension assets are higher than ever, and they continue to grow. According to the Finnish Centre for Pensions’ most recent long-term projections, the financing outlook for the pension system remains stable,” says Murto.

High number of applications yet again for partial old-age pension

Varma paid out a total of EUR 5.9 billion in pensions in January–September. The number of pension decisions issued totalled 39,900, i.e. roughly 8 per cent more than a year earlier. The increase in old-age pension decisions is due to annual fluctuations related to the minimum old-age retirement age. 

The number of applications for partial old-age pension grew 80 per cent compared to the same period last year. Last year, the number of applications was low, as no new age cohort became eligible for the benefit in 2025. Of the old-age pensions paid by Varma that began this year, 35 per cent were preceded by a partial old-age pension.

The figures in parentheses are comparison figures from the corresponding period last year unless otherwise indicated.

Additional information:  

Hanna Kaskela, Senior Vice President, Sustainability and 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