Varma

Varma for entrepreneurs

Varma is a solvent company and thus a safe choice. Varma’s extensive services, provided through various channels, make attending to insurance matters easy.

We have made taking care of insurance matters easy for our customers: everything can be handled conveniently online. Entrepreneurs can, for example, print out insurance-related certificates to be attached to an offer.  

We also offer detailed advice by phone and via our chat service, in questions relating to, for example, the Entrepreneur’s Calculator or filling in an insurance application. The chat function has been expanded since the end of 2015, upon request by our customers.

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.

We offer several service channels according to customer needs  

In spring 2015, Varma mobiili, a mobile phone application for entrepreneurs and small businesses, was introduced. In the app you can change your earned income information and see how changes in earned income affect pension accrual and insurance contributions. You can also order an earnings certificate and certificates to be attached to an offer via the app.

In 2015, we also entered into co-operation with the Palkkaus.fi service in order to promote work carried out in Finland. Earnings-related pension contributions paid through Palkkaus.fi are steered to Varma, and households can use the service to take care of all of their statutory payments and obligations.

Check out Palkkaus.fi (in Finnish).

New online service helps entrepreneurs succeed

In 2015, we set up, together with If P&C Insurance and Nordea Bank, an online service called Onnistu yrittäjänä ("Succeed as an entrepreneur") for entrepreneurs. The service provides assistance in, for example, establishing a company, insurance matters, and running and developing a business. The service also helps new entrepreneurs build and implement a business plan.  

Experiences with the online service have been encouraging, and the feedback has been positive. We will continue to develop the service further in 2016.

Visit the Onnistu yrittäjänä website (in Finnish).

Entrepreneur’s pension insurance, or YEL, is the basis of a self-employed person’s social security It affects not only the entrepreneur’s pension, but also many other benefits, such as disability pension,
parental allowance, daily allowances paid by the Social Insurance Institution Kela, and rehabilitation benefits. Sufficient YEL income also secures income during retirement and other life situations.

Establishing a company

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Illness

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Unemployment

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Parental leave

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Disability

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Survivors’ pension

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Old-age pension

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When you set up a company, be sure to look into entrepreneurs’ statutory earnings-related pension insurance YEL
YEL income is used as the basis for calculating daily sickness allowance. YEL income set at a sufficient level guarantees a secure income for the entrepreneur also during illness.
Your YEL income affects your eligibility for unemployment benefits and the amount of your earnings-related daily benefit. As a member of an unemployment fund, an entrepreneur may be eligible for a daily allowance that is based on the confirmed YEL income. Those that are not members of a fund can receive basic unemployment allowance or a labour market subsidy, which are paid by Kela.
When considering the amount of your YEL income, it is a good idea to keep in mind that it will also have a bearing on the entrepreneur’s maternity and parental allowance. A sufficient level of YEL income guarantees the entrepreneur’s income during parental leave.
When illness makes it hard to cope at work and workability is threatened, an entrepreneur has the options of rehabilitation, work trial and retraining. If the illness continues and it is not possible to return to work, an entrepreneur may apply for disability pension. The cash rehabilitation benefit, disability pension and rehabilitation allowance, paid by the earnings-related pension company, are based on confirmed YEL income.
Survivors’ pension can be paid to a child under 18, to the spouse or to an ex-spouse. YEL income affects the amount of survivors’ pension.
Old-age pension is accrued through pension contributions paid during one’s entire career. Sufficient YEL income guarantees the entrepreneur’s income also during retirement.

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The year in brief

In 2015, Varma’s return on investments stood at 4.2 per cent. The value of investments increased to EUR 41.3 billion. Premiums written increased clearly, and operating expense efficiency also showed positive development. Solvency capital was strong at EUR 10.0 billion.

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President & CEO review

2015 was a good year for Varma, and we succeeded well according to all key indicators: 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.

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Lower earnings-related pension contributions for customers

Varma is a solvent company. That means the best client bonuses in the sector and lower pension contributions for our customers. Our modern digital services provide our customers with a comprehensive set of tools that enable them to take care of their pension matters easily.

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Varma for entrepreneurs

Varma is a solvent company and thus a safe choice. Varma’s extensive services, provided through various channels, make attending to insurance matters easy.

  • #pensioncover
  • #workinglife
  • #finance

Pension cover

The number of pensioners and the euro amount of pensions paid is constantly rising at Varma. Our task is to pay pensions correctly and on time to an increasing number of pensioners.

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Workability and good working life

Workability management promotes companies’ competitiveness and productivity and the societal goal of longer careers. Our workability services improve employee well-being and working life at our client companies.

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Varma’s targets and strategy

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.

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Operating environment

The economic year 2015 ended in a climate of turbulence. Uncertainty in the global economy is again on the rise.

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Solvency

Varma’s strong solvency secures pensions. Thanks to its high solvency, Varma has been paying very competitive client bonuses for several years now.

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Fixed income investments

The return on fixed-income investments remained slightly negative, at -0.4 per cent. They accounted for 30 (32) per cent of investments and had a market value of EUR 12.3 (12.8) billion.

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Equity investments

Equity investments performed the best of all asset classes. They accounted for 45 (41) per cent of Varma’s investments and yielded a return of 8.8 (9.1) per cent.

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Real estate investments

Varma’s real estate investment portfolio amounted to EUR 3.9 (3.8) billion at the end of 2015, and the total return stood at 3.3 (3.8) per cent.

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Other investments

Other investments accounted for 17 (20) per cent of Varma’s portfolio.

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Varma’s investment principles

With EUR 41.3 billion in investment assets, Varma is Finland’s largest private investor. We invest the assets to secure present and future pensions.

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Targets and measures

On the basis of the materiality assessment, we defined Varma’s CSR targets, indicators and measures.

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Personnel

Varma’s success is based on competent personnel efficiently handling our customers’ pension cover. Customer focus is at the core of Varma’s expert work and operational development. Service that is appreciated by our customers is the result of broad competence and co-operation.

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Responsible investment

Responsibility is an integral part of our investment operations and ownership practices. In 2015, we looked into the responsibility of our hedge funds and decided to determine the carbon footprint of our investments.