Varma’s 2025 result: return on investments 7.5 per cent – very strong return on Finnish equities

The return on Varma’s investments in 2025 was 7.5 (10.2) per cent. The value of the investments was EUR 68.3 (64.4) billion.

“It was a good year for investors. There was considerable uncertainty related to geopolitics, but ultimately, for example, the import tariffs imposed by the USA had only minor impacts on the markets’ development. After a few lacklustre years, Finnish equities saw a welcome recovery in returns,” says Varma’s President and CEO Risto Murto.

Of Varma’s investments, listed equities yielded 16.4 (16.5) per cent. The return on all equity investments was 10.6 (14.9) per cent, and the return on Finnish equities was 36.2 (0.2) per cent. Private equity investments yielded -0.6 (12.0), fixed income investments 4.1 (4.7) and hedge funds 5.0 (10.5) per cent. The return on real estate investments was 1.0 (-2.8) per cent.

“Major investments in AI and data centres in the USA bolstered the economy, and economic sentiment in Europe was also upbeat, thanks to investments in the defence sector and other planned investments. Emerging market returns and the Nasdaq Helsinki reached record highs. For the European investor, the depreciation of the US dollar eroded the returns on US investments,” says Varma’s Deputy CEO Markus Aho.

“The strong rise in Finland’s equity market stood in stark contrast to the country’s sluggish economic growth in 2025. Stable global economic growth and the recovery of nearby markets raise hopes that the markets are correctly pricing in an economic turnaround this time,” says Murto.

Varma’s solvency ratio was 135.7 (134.6) per cent, and solvency capital was EUR 18.2 (16.8) billion. Varma is the most solvent earnings-related pension company, which enables long-term investment activities even when the markets fluctuate.

Strong payroll development continued, efficiency improved

The payroll of Varma’s TyEL customers increased 3.5 per cent. The stronger-than-average growth of the payroll is partly explained by the successful acquisition of new customers.

EUR 105 (130) million in net TyEL income was transferred to Varma from other earnings-related pension companies, and sales of TyEL insurance policies to new customers amounted to EUR 54 (57) million. The corresponding impact on YEL premiums written was EUR 26 (28) million. 

Varma’s operating expenses (EUR 78 million) were down six per cent, or EUR 5 million, compared to the previous year. Thanks to its strong solvency and strong investment returns, Varma pays the highest client bonuses in the pension insurance sector.

Gold medal for Varma’s sustainability in EcoVadis ratings

Varma updated its sustainability programme to cover the years 2026–2030. In the programme, we commit to ensuring pension security, investing responsibly, promoting sustainable work ability and being a good employer. 

EcoVadis, an international corporate social responsibility assessment specialist, awarded Varma with its Gold medal recognition. The gold medal was granted to five per cent of the companies rated by EcoVadis. EcoVadis assesses companies’ sustainability performance from the perspectives of the environment, labour & human rights, ethics and sustainable procurement.

EUR 7.7 billion in pensions were paid out

At year-end, Varma had 348,000 pension recipients and paid out a total of EUR 7.7 billion in pensions.

In 2025, Varma issued approximately 49,000 pension decisions, which is seven per cent less than in the previous year. The decrease is due to fewer applications for partial old-age pension, as not a single new age cohort was eligible for the pension benefit in 2025.

In 2025, Varma received 13,500 disability pension applications, which is around the same as in the previous year.

Varma well-prepared to implement the pension reform 

The proposed pension reform bill that was negotiated in 2025 is scheduled to be to Parliament in early 2026. The objective of the reform is to stabilise the pension system and improve investment returns in the long term. The reform will enable increased risk-taking and a higher equity weight in the investment portfolio.

“Our strong solvency gives us flexibility to implement changes based on the market situation. Our preparations for the pension reform have gone according to plan, and we are well-prepared for its implementation,” says Murto.

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