Finnish pension insurer, Varma, has reported a 7.5% return on its investments for 2025, down from 10.2% for 2024.
Its investments generated €4.8bn over the year, bringing its total assets under management (AUM) to €68.3bn, up from €64.4bn.
The pension insurance company said a historically good year on the Helsinki Stock Exchange made Finnish equities the best-performing asset class in Varma’s investment portfolio.
“It was a good year for investors. There were many geopolitical uncertainties, but in the end, the impact of import tariffs imposed by the United States, for example, on market development was minimal. Finnish equities performed encouragingly well after a few lacklustre years,” Varma CEO, Risto Murto, said.
Broken down by asset class, listed shares yielded 16.4% and private equity investments delivered -0.6%. The return on all equity investments was 10.6%, and 36.2% for Finnish shares.
Fixed income investments made a 4.1% return while hedge funds generated a 5% return. The return on real estate investments was 1%.
“The strong rise in the Finnish stock market and sluggish economic growth created an exceptional contradiction in 2025. The stability of international economic growth and the recovery of nearby markets raise hopes that this time the markets will price the economic turnaround correctly,” Murto said.
At the end of 2025, Varma's solvency ratio was 135.7%, up from 134.6%, and its solvency capital was €18.2bn, up from €16.8bn the previous year.
