President and CEO's Review

Varma's main objective in the challenging market environment of 2012 was to safeguard the company's strong solvency. We succeeded well in achieving this goal, and our solvency strengthened clearly.

In investment activities, our focus was on careful risk management, and on the security and broad diversification of investments. Varma's investments produced good returns, and all asset classes achieved a positive return.

In terms of operations, the management of insurance services and pensions also developed favourably. Varma's premiums written increased, and the share of self-employed persons' pensions has risen.

The number of both the insured and pension recipients grew during 2012. Due to the aging population and baby-boomers' retirement on old-age pension, Varma finds itself, for the first time ever, in a situation where the amount of pension payments equals contribution income. This means that we have to pay special attention to the development of investment activities.

The Finnish economy is much more dependent on demand from outside Europe than the rest of the European Union, which means that our export industry has to adapt not only to the challenging situation within Europe but also outside it.

Varma is able to support Finnish companies by taking care of its core function – managing pension cover and the execution of the pension scheme – as efficiently as possible. We can also help our client companies and their personnel to succeed in their efforts to promote workability management and rehabilitation, and in bolstering the prerequisites for longer careers. We aim at the lowest pension costs in the sector for our customers.

I would like to extend my thanks to Varma's customers, policyholders and insured, and to our personnel for their good work during 2012.

Matti Vuoria
President and CEO