Veritas’ interim report 1 Jan – 30 June 2022: Strong growth in YEL insurance policies

25.8.2022, News and press releases

The investment returns of pension insurance company Veritas were negative in April-June, amounting to -3.3 per cent. The solvency position remained strong and at the end of June, it was 1.7-fold compared to the solvency limit.

From the customer acquisition perspective, the first part of the year was a success and the volume of YEL insurance policies continued to grow. The payroll of Veritas’ customer companies increased in January-June by 11.6 per cent compared to the same period last year. Premiums written are expected to grow by nearly 13 per cent in 2022, due to the growth in TyEL insurance policies.

”We invest heavily in customer service, and I believe this is the reason why the volume of YEL insurance policies is growing for the fifth year in a row. We offer each customer a personal insurance advisor and answer phone calls in under 20 seconds. Entrepreneurs have better things to do than to listen to music on hold,” says Veritas’ Chief Executive Officer Carl Haglund.

Sub-zero investment returns

During the period of January through June, the return on Veritas’ investments amounted to -6.7 per cent. Fixed-income investments generated a return of -7.6 per cent, equity investments a return of -12.5 per cent, real estate 2.9 per cent and other investments 8.3 per cent. 

Interim report 1-6/2022. The value of Veritas' investments was EUR 4.1 billion. The 10-year nominal return was 6.0% and the real return 4.5%.

”In the first part of the year, the liquid market did not offer any escape routes, as interest rates and credit margins increased and equity markets declined. Alternative and illiquid investments, in turn, provided protection and fared well,” explains Veritas’ Chief Investment Officer Kari Vatanen.

According to Vatanen, the current economic outlook is bleak. The climbing energy prices are sustaining high inflation and central banks are raising their interest rates.

”Inflation has accelerated more than anticipated and consumer confidence has declined rapidly. The equity markets have witnessed a positive upward turn since June, but it continues to feel too good to be true. The downturn of the real economy still lies ahead, with central banks tackling inflation through tightening monetary policy.”

Amendments proposed to the Self-Employed Workers’ Pensions Act

The reform of the Self-Employed Workers’ Pensions Act has been raising concerns over the summer. The government has proposed reforms to be made to the Act with the aim of enhancing entrepreneurs’ pension security and social security during their professional careers. The premise adopted for determining the YEL working income are the median wages in the private sector.

”Many entrepreneurs have expressed concerns over the working income being determined directly based on the median salary within the industry. This, however, is not the case, but, rather, the individual circumstances of each entrepreneur will be considered also going forward,” says Haglund.

The determination of the YEL working income considers, inter alia, the work input, the scope of operation, the entrepreneur’s expertise and information reflecting the value of the entrepreneur’s professional contribution.


Further information:

  • Carl Haglund, Chief Executive Officer, tel. +358 (0)10 550 1600,
  • Kari Vatanen, Chief Investment Officer, tel. +358 (0)10 550 1882,