Varma - Annual Report 2012

Operating expenses

Varma used 84 (73) per cent of the expense loading, included in the insurance contributions, to cover operating expenses. The considerable investments made in the project to reform the pension application processing system weakened Varma's operating expense efficiency compared to the previous year. Good operational efficiency benefits Varma's customers by means of client bonuses. Varma's goal is to manage the assets of both present and future pensioners as efficiently as possible.


In addition to economies of scale, increasing efficiency also requires continuous control of human resources and, in particular, IT system expenses, as these account for most of Varma's operating expenses. Overall operating expenses increased on the previous year, totalling EUR 149 (136) million. Varma has adjusted the amortization of its major IT systems.

Varma is actively involved in the administration of the pension sector's joint information systems and expects transparency and efficiency in terms of costs.