Varma secures pensions
Varma's core task is to secure pensions. Our main goals of strong solvency, good development in premiums written, high quality pension services and efficient operations, also stem from this.
Varma’s strategic focal points
In 2015 we renewed our strategy for the 2016–2020 period. In the coming years, we will be focussing on four important themes: One Varma for the customer, Promoting entrepreneurship, Responsible Varma and Courage to try new things.
The development of all our operations focuses on bringing benefits to our customers. We promote our client companies’ growth and support entrepreneurship. We develop services and look for ways to make companies’ and entrepreneurs’ daily operations easier. During the year under review, we built a corporate social responsibility programme, the implementation of which will continue in the coming years. We will communicate more systematically about our CSR activities and about what responsibility means to Varma. We will encourage Varma employees to develop our internal operating culture and propose daily innovations and experiments. Lean will be a key element of our daily work and the continuous improvement of our operations.
Varma’s core function
We take care of the statutory pension cover of private entrepreneurs and employees. We invest the assets collected as pension contributions profitably and securely for current and future pensions. We take care of the implementation of earnings-related pension provision for approximately 64,500 companies and entrepreneurs and more than 860,000 people.
Our core function – securing pensions – is based on law, and it forms the foundation for our operations. Varma’s strategy provides a framework for how we respond to changes in the operating environment and to our customers’ expectations, and how we want to stand out from our competitors. Our strategy helps us to achieve our main goals of strong solvency, good development in premiums written, high quality pension services and efficient operations.
In 2015 we succeeded well in achieving our goals: we maintained our strong solvency position, our premium income increased, we processed pension applications faster than before and our operational efficiency is at a competitive level.
Pension contributions are used to pay pensions and some is set aside in funds for future pensions.
The Finnish statutory earnings-related pension scheme is partially fund-based. The majority of the pension contributions paid by employers and employees is used to pay the pensions for that year. A share of the contributions is set aside in funds for future pension payments.
By law, pension assets must be invested profitably and securely. Part of the investment returns is used to strengthen pension liabilities and part is used to maintain the solvency of the earnings-related pension company. Based on the solvency and operational efficiency of the pension company, it may grant client bonuses.
Varma’s operating expense efficiency and solvency have been extremely competitive for several years. Our high cost efficiency and strong solvency lower our customers’ pension contributions.