In 2020, the return on Varma’s investments was 2.8 (12.0) percent or EUR 1.4 billion. The value of investments grew to EUR 50.2 (48.7) billion at the end of 2020, the year of the coronavirus.
“Despite the dire Covid-19 pandemic, Varma’s pension assets increased; our pension assets have never been higher than they are now. Especially important for the real economy and investment markets were the rapidly initiated strong stimulus measures,” says Varma’s President and CEO Risto Murto.
The Covid-19 pandemic had a negative impact on Varma’s investment returns in early 2020, but in the final quarter, the returns were back in positive territory. Solvency remained strong throughout the year and stood at 129.3 (130.8) percent at the end of December. Varma’s operational efficiency was also at an excellent level. In 2020, administrative costs totalled EUR 78 (86) million, which is 61 (62) percent of the expense loading included in the insurance contributions. The smaller the percentage is, the more efficient the company is.
“Finnish companies made it through the first Covid-19 year better than expected. Vaccines have been developed in record time, which will very likely give us a path out of the Covid-19 economic crisis,” says Murto.
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