1.7 per cent return on Varma’s investments – Finnish equities yielded the best returns

The return on Varma’s investments in January–June was 1.7 (5.9) per cent. The value of Varma’s investments was EUR 64.9 (64.4 on 1 Jan) billion. 

“Investments performed satisfactorily in the first half of the year. The investment markets have been restless due to geopolitical crises and uncertainty related to tariffs, but the reactions have nevertheless been limited. The weak US dollar in particular has affected investment returns,” says President and CEO Risto Murto.

The return on Varma’s equity investments was 1.0 (9.1) per cent. Fixed income investments yielded 2.8 (1.6) per cent, real estate investments 1.2 (-2.4) and hedge funds 3.2 (6.1) per cent. Finnish equities performed the best (15.2 per cent).  

“At the start of the second quarter, the USA announced import tariffs, causing a sharp drop in stock prices. They rebounded quickly, however, and the investment markets performed even surprisingly well in the second quarter. Nasdaq Helsinki’s performance was a bright spot in the first half of 2025, and Finnish equities also boosted our returns,” says Varma’s Deputy CEO Markus Aho. 

“The EU and the USA came to an agreement on tariffs in July, which eliminated one source of uncertainty. The effects of trade policy and rising tariff levels may still bring some surprises in autumn. Higher tariffs and the related uncertainties will also inevitably be bad news for Finland’s export-dominated economy,” says Murto.

Varma’s solvency ratio at the end of June was 134.0 (134.6 on 1 Jan) per cent, and solvency capital was EUR 16.8 (16.8 on 1 Jan) billion. Varma has been well-prepared to face volatility in the equity market, thanks to the company’s near record-strong solvency, which has not significantly weakened.

Principles for defence sector investments updated 

Varma updated its Principles for Responsible Investment regarding the defence sector. The changes will allow profitable and secure investments in the new business landscape emerging around the defence sector. Excluded from Varma’s direct investments are companies that manufacture controversial weapons and whose headquarters are not located in the areas of NATO, Switzerland, or the IP-4 countries (Japan, South Korea, Australia and New Zealand).

In the first half of 2025, Varma participated in over 400 shareholder meetings. At the meetings, Varma supported shareholder proposals on transparency in political donations and the ethical use of AI. Varma supported increased requirements for reporting political donations in five US companies. In terms of AI, Varma supported proposals requiring companies to report on their use of data and to commit to ethical AI principles.

Growth in TyEL payroll at a good level 

The TyEL payroll of Varma’s client companies grew 3.9 per cent in January–June compared to a year ago. The payroll continued to grow well despite growing unemployment and a weakened economic outlook in Finland.

EUR 73 (142) million in net annual TyEL premiums written will transfer to Varma from other earnings-related pension insurance companies. Sales of pension insurance policies to new customers amounted to EUR 39 (44) million. 

The number of new disability pensions granted for mental health reasons was highest among young adults

In the first half of 2025, the number of new disability pensions decreased year-on-year in all age cohorts, with the exception of those between the ages of 45 and 54. Most new disability pensions were granted to those aged 55–59 and those over 60.

The share of mental health-based disability pensions among all new disability pensions was highest among those under 35 years. They accounted for just under a third (31 per cent) of all new recipients of positive mental health decisions.

Partial old-age pension remains a popular pension benefit, although considerably fewer applications were received in April–June compared to a year earlier. The number of applications fell by 50 per cent in the first half of the year compared to the same period last year. The decline is due to the fact that not a single new age cohort will reach the lower age limit for partial old-age pension this year. 

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

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