Varma employment pension company increased its pension assets by almost EUR 10 billion a year – “The pension system in the best condition in its history”

Employment pension company On Friday, Varma entered the group, which has increased the amount of pension assets by almost ten billion euros (9.8 billion euros) per year to a total of 56.6 billion euros. On Thursday, the same ten billion growth news was reported by the pension institution Keva, which manages municipal employment pension funds.

Varma has achieved the best investment return of 13.5 percent among pension insurers by the end of September 2021. The return on Keva’s investments was 12 percent, ie the institution’s earnings-related pension assets increased by EUR 7 billion to EUR 64.8 billion.

Increases in value are calculated and real gains will only be seen when the funds are sold over the coming decades.

Varman managing director Risto Murto said at a earnings announcement on Friday that the year has been very good for the pension investor, especially due to the rise in the stock market.

“In addition to equity investments, the return on hedge funds was highlighted in Varma’s portfolio,” Murto said.

The year has been good for the whole industry.

“The pension system is in the best condition in its history,” Murto said at the announcement of the result.

Murto said he calculated that by the end of September 2021, public and private pension investors have increased the value of pension assets by a total of 23 billion euros.

The pension system is also a cause for concern, as long-term sustainability is a mystery.

“The problem is that the earnings-related pension system is big and the level of contributions is already high. The ability to increase fees is limited, ”Murto said.

Varman and Keva’s investment returns in 2021 were better than Ilmarinen, Finland’s largest employment pension company. Ilmarinen’s investments returned 10.5 per cent in the first half of the year, and the value of the company’s pension assets rose to EUR 58.4 billion.

The investment result was also published this week by Elo, the third largest occupational pension company. Elo said on Thursday morning that the company’s investments returned 9.4 percent in January – September.

Finland’s smallest occupational pension company, Veritas, announced on Thursday the lowest rate of return of 8.3 for 2021. The value of pension assets managed by Veritas was EUR 4.2 billion at the end of September.