Annual Report 2014


Solvency and expertise in workability management benefit our customers

Varma’s strong solvency and good operating expense efficiency in 2014 lower our clients’ insurance contributions. We also help our client companies save in their pension costs.

Varma’s solvency reached a new record in 2014, at EUR 10.3 billion. This benefits our customers, as Varma reserved an all-time high EUR 117 (105) million, or 3.8 (3.4) per cent of the employers’ TyEL contribution, for client bonuses to be paid for 2014.

Varma pays its customers the best client bonuses in the sector. They lower the employer’s final contributions. The amount of the bonuses is influenced by the pension company’s solvency capital and by the loading profit, an indicator of the cost-effectiveness of the operations.

Support for managing pension costs

We help our client companies to manage their pension and sick leave costs. We also continuously develop the co-operation practices between occupational health care providers and employers. The goal is to take timely control of the client’s disability risks.

The workability projects carried out together with our client companies support their business development and have a positive financial outcome.

The online Workability Management Information Service tool meant for managing disability costs is available for employers liable to pay excess. They can use the tool to analyse their current disability risk and assess the savings potential of the lower disability contribution category. At the same time, the employer can compare the development of its contribution category to the sector or to Varma’s client base. The information service is used by over 600 of Varma’s client companies. The service will be extended to cover also the needs of smaller companies.

How does Varma typically assist its client companies?

  • Co-operation with the occupational health care provider. Building early support models together and coaching supervisors to take action accordingly.
  • Smoother processes in the work community. Assessing together whether work is being performed smoothly and smartly.
  • Coaching for supervisors. Supervisors face tough challenges during changes. We provide support and serve as a sounding board for them.
  • Providing HR tools e.g. to support development discussions.

We develop our services by listening to our customers

We continuously develop our services on the basis of customer feedback. In our web service they can, for example, manage their insurances and print out contribution information and payment certificates to be attached to an offer.

Our customers can take care of all their insurance matters online, if they so choose. More in-depth guidance is available through our phone service and chat service, which offers assistance in filling in an insurance application or using the Entrepreneur’s Calculator. In spring 2015, we will launch a mobile service for entrepreneurs, through which they can order payment or earnings certificates and adjust their earnings information.

Varma’s headquarters are located in Salmisaari, Helsinki, and our network of account managers covers nearly the entire nation. For our self-employed clients and small client companies we offer a comprehensive service network with our co-operation partners, If P&C Insurance and Nordea Bank. Major employers are served by Varma’s company-specific service teams.

An excellent year in terms of client acquisition

Varma's premiums written stood at EUR 4,344 (4,258) million in 2014.

Varma had a good year in terms of sales, and was highly successful in client transfers between earnings-related pension insurance companies, with a net result of EUR 55 million in TyEL insurances for the entire year. Varma’s long-standing expert work as an efficient handler of earnings-related pension matters and especially in abating disability risk shows in the increasing trust placed in us by our customers. 


Number of insured and insurance policies
31 Dec. 201431 Dec. 2013Change
Number of insured
TyEL 1488,190491,400-3,210
1of which covered by TEL registered supplementary pension insurance4,3904,928-538
Number of insurance policies

Challenging operating environment

The Finnish business sector continues to suffer from the difficult economic situation. Growth has stalled, and nearly all sectors of business and industry face structural challenges. The decline in purchasing power is hitting the retail industry especially hard.

2014 continued to be characterised by numerous co-determination negotiations and layoffs. Companies’ HR functions are struggling to maintain the remaining employees’ capacity to work while going through co-determination negotiations. Varma supports its clients in order to secure their ability to start expanding their operations once growth resumes.