The value of Varma’s investments exceeded EUR 70 billion – capital expenditure on AI boosted the equity markets and supported the global economy

The return on Varma’s investments in January–June was 5.3 (1.7) per cent. The value of Varma’s investments was EUR 71.4 (68.3 on 1 Jan) billion.  

“The investment markets demonstrated strong resilience, as the war in Iran and the ensuing energy crisis did not interrupt the upward trend in the market. Also positive is that rising interest rates and the conflict in the Middle East were not able to stall Finland’s economic recovery,” says Varma’s President & CEO Risto Murto.

The return on Varma’s equity investments was 8.0 (1.0) per cent. The return on listed equities was 10.7 (3.6) per cent, on fixed-income investments 0.4 (2.8) per cent, on private equity investments 2.2 (-4.1) per cent, on real estate investments -2.0 (1.2) per cent and on hedge funds 5.0 (3.2) per cent.

“The global economy made progress in the heavy crosscurrents of AI capex and the war in Iran. Energy supply disruptions accelerated inflation, but at the same time, the ongoing capital expenditure on AI supported the economy, businesses and the investment market,” says Varma’s Deputy CEO Markus Aho.

“The rise in equity markets seen in the spring concentrated on AI and technology companies, as well as semiconductor companies. Capital expenditure on AI and computing power represents a large individual wave of infrastructure investment, with more far-reaching impacts than initially anticipated,” says Aho.

Varma’s solvency ratio at the end of June was 137.4 (135.7 on 1 Jan) per cent, and solvency capital was EUR 19.7 (18.2 on 1 Jan) billion. 

Share of equities on the rise in Varma’s investment portfolio

This half-year result is the last one before the pension reform that took effect at the beginning of July. In the reform, the solvency regulations for earnings-related pension companies will be relaxed in stages, allowing pension companies to raise their investments’ risk and seek higher returns.

“An increasing share of Varma’s investments is in equities. As an earnings-related pension insurance company with strong solvency, we have been able to implement our investment strategy while taking the market situation into account,” says Aho. 

Varma rearranged its real estate investments during the reporting period. The sale of residential properties to Lumo Asuminen Oy, completed at the beginning of April, increased Varma’s holding in the parent company Lumo Kodit. The pension reform allows the subsidiaries of earnings-related pension insurance companies to use leverage in their real estate investments. Varma prepared a financing arrangement to release equity tied up in real estate investments following the pension reform that took effect in July.

YEL reform leaves room for improvements to entrepreneurs’ pension security

The Finnish Government decided in its spending limits session in April to reform the pension insurance system for self-employed persons (YEL). The proposed reform would give entrepreneurs the option to choose whether their pension contributions are based on the taxable earned income from their self-employed activities or on the current system of estimated YEL income. 

“It is good that entrepreneurs’ pension security is being developed, but the reform itself does not address the system’s key challenge: entrepreneurs’ pension security is at risk of being too low. The reform may even further weaken pension security,” Murto says.

The TyEL payroll of Varma’s client companies grew 4.2 per cent compared to the same period in 2025.

The number of those insured by and receiving pension from Varma exceeded one million

The number of employees and entrepreneurs insured by and those receiving pension from Varma rose to more than one million. Varma is responsible for the earnings-related pension security of these people. Varma paid out pensions in a total of EUR 3.9 billion.

Varma made 14,700 new pension decisions and preliminary decisions by the end of June, which is approximately seven per cent more than in the corresponding period last year. A total of 27,000 pension decisions were issued between January and June.

The number of new disability pensions granted in January–June was 8.2 per cent higher than in the same period last year. The main reasons for new disability pensions were mental health disorders and musculoskeletal diseases.

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