Varma's 2022 Investment Return Was -4.9 Percent

Keskinäinen työläkeyhtiö Varma, a Finnish employment pension company, reported a negative investment return of -4.9 percent for the year 2022. The company's investment assets stood at EUR 56.2 billion at year-end, down from EUR 59 billion at the start of the year, reflecting a difficult global market environment characterized by geopolitical tensions, high inflation, and rising interest rates.

Despite the negative returns, Varma's solvency remained strong, with a solvency ratio of 130.5 percent. The company's Chief Investment Officer, Markus Aho, noted that market conditions stabilized in the final quarter of the year due to cooling inflation and improved energy availability in Europe, which boosted European equities. The company's diversified portfolio across asset classes, including private equity and real estate, provided some buffer against declines in listed equities.

Investment performance varied significantly across asset classes. Private equity investments yielded 7.9 percent and real estate investments 5.7 percent. In contrast, equity investments returned -8.7 percent and fixed income investments -5.2 percent. Varma's President & CEO, Risto Murto, commented on the market threats of 2022, including the war in Ukraine and central bank policies, but expressed satisfaction that market downturns were less severe than in previous crises.

Varma also announced client bonuses totaling EUR 173 million, intended to reduce insurance contribution costs for its customers. The company reported strong customer acquisition, particularly among small and startup businesses, contributing to a total of EUR 6.1 billion in new employee pension insurance (TyEL) income. Furthermore, Varma was recognized by EcoVadis, an international sustainability assessment specialist, ranking among the top one percent of companies evaluated.