The strong growth of the pension insurance company Veritas continued in 2024. Veritas gained a record number of new customers, and sales reached a new record for the fourth consecutive year.
During the year, Veritas acquired over 6,800 (5,100) new TyEL and YEL insurance policies. In terms of euros, the new premiums written totalled EUR 165.9 (108.2) million.
At the end of the year, nearly 71,000 employees and 16,000 entrepreneurs were insured by Veritas.
“In terms of customer acquisition, the year 2024 broke all previous records. Veritas’ sales grew by over 50 percent compared to the previous year,” says Veritas’ CEO Carl Haglund.
Veritas’ premiums written grew by 7 per cent from the previous year and amounted to EUR 774.6 (724.1) million. The TyEL payroll of companies insured by Veritas increased by 6.9 (4.4) per cent.
Veritas’ solvency position remained at a strong level and was 1.4 times (1.6 times) the solvency limit at the end of the year. The solvency ratio was 123.4 (122.2) per cent.
The return on Veritas’ Investments was 8.4 per cent
The return on Veritas’ investments was 8.4 (5.7) per cent during the year. The value of the investments was EUR 4.8 billion.
“Last year was a good investment year. Continued strong economic growth in the United States surprised the markets. At the beginning of the year, equity markets in Finland and Europe also looked promising, but good performance diminished towards the end of the year. The geographical dispersion in equity returns was particularly large in the last quarter,” says Veritas’ Chief Investment Officer Laura Wickström.
The return on Veritas’ fixed-income investments was 6.7 (7.8) per cent during the year, equity investments 12.7 (8.7) per cent, real estate investments -0.7 (-4.1) per cent and other investments 7.9 (4.8) per cent. In the last quarter of the year, the return on investments was 1.5 per cent.
“Equity investments generated the best returns, but we also achieved good returns from fixed income and alternative investments.”
Domestic real estate, on the other hand, had another disappointing year, with returns remaining negative.
“This year looks brighter if the decline in interest rates continues. It will positively affect the real estate market, and prices may finally start to rise.”
According to Wickström, the year has started positively in the investment markets, and especially European equities have performed well.
“The return on the Helsinki Stock Exchange was flat last year, but this year returns have been positive so far. Geopolitical threats and the risk of intensifying trade war may, however, cause market volatility.”
Pension reform aims to improve investment returns
In January, the central labour market organizations reached an agreement on pension reform. The aim of the reform is to ensure the financial sustainability of pension security and an adequate level of benefits.
The most significant change relates to the investment of pension funds. With the reform, pension insurance companies can increase the share of equities in their investment portfolios.
“Increasing the equity weight increases the likelihood of higher investment returns in the long term, but at the same time, volatility of returns increases. In bad times, returns can therefore be weaker than currently, and correspondingly better in good times,” says Haglund.
An important piece of information for employer customers is the stabilization of the TyEL contribution at 24.4 per cent for the years 2026–2030.
Appendix:
Further information:
- Carl Haglund, CEO, tel. +358 10 550 1600, firstname.lastname@veritas.fi
- Laura Wickström, Chief Investment Officer, tel. +358 44 209 7498, firstname.lastname@veritas.fi
The figures have not been audited. The comparative figures in brackets refer to the corresponding period of the previous year.
