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Interim report, 1 January – 31 March 2022

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Veritas Eläkevakuutus - Veritas Pensionsförsäkring
Veritas Eläkevakuutus - Veritas Pensionsförsäkring

- The interim report summarizes Veritas' investments from January to March 2022. The return on investments was negative at -3.5% for the quarter. - Veritas' solvency ratio remained secure at 127.9% and solvency capital was 1.7 times the solvency limit. - Veritas published a Corporate Responsibility Report on April 20th detailing reductions in carbon emissions from its real estate, equity, and bond investments faster than targeted.

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Interim report 1 January – 31 March 2022 28 April 2022
Summary of January–March • The return on Veritas’ investments was negative in the first quarter of 2022. • Veritas’ solvency remained at a secure level and at the end of March was 1.7-fold compared to the solvency limit. • Veritas published its Corporate Responsibility Report on 20 April. • In real estate as well as in equity investments and corporate bonds, carbon dioxide emissions were reduced faster than targeted. 4.2bn Value of investments 1.7 Solvency position 127.9% Solvency ratio -3.5% Return on investments
Investments
The investment return was -3.5% in the first quarter Investment returns 7,4 % 6,5 % 5,8 % 6,6 % 8,0 % -1,5 % 9,9 % 5,6 % 12,6 % -3,5 % -6,0 % -4,0 % -2,0 % 0,0 % 2,0 % 4,0 % 6,0 % 8,0 % 10,0 % 12,0 % 14,0 % 2013 2014 2015 2016 2017 2018 2019 2020 2021 1-3/2022 • During the first quarter of this year, the return on Veritas’ investments amounted to -3.5 per cent. • Fixed-income instruments yielded -3.0 per cent, equity investments -6.8 per cent, real estate 1.2 per cent and other investments 3.0 per cent.
The cumulative investment return for a 10-year period is 82.6 per cent 90 110 130 150 170 190 210 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 The return is calculated from 1 April 2012 to 31 March 2022. Nominal return 10 years 6.2% 5 years 5.5% Real return 10 years 4.8% 5 years 3.5%
Changes in portfolio allocation 30,2 % 47,4 % 15,6 % 8,7 % -1,9 % 33,6 % 42,0 % 16,2 % 9,8 % -1,6 % -10,0 % 0,0 % 10,0 % 20,0 % 30,0 % 40,0 % 50,0 % Fixed-income investments Equities and shares Real-estate investments Other investments Effect of derivatives 31.12.2021 31.3.2022
Geographical distribution of investments All investments Listed equities
Breakdown of investments at fair value 1-3/2022 milj. € % milj. € % ⁸ % 1 421,8 33,6 1 419,8 33,6 -3,0 Loan receivables ¹ 53,9 1,3 53,9 1,3 0,5 Bonds ¹ 1 044,5 24,7 1 042,5 24,6 -3,9 Government bonds 569,1 13,5 567,1 13,4 -5,2 Other bonds 475,4 11,2 475,4 11,2 -2,0 Other money market instruments and deposits ¹ ² 323,4 7,6 323,4 7,6 -0,3 Equity investments 1 707,1 40,3 1 776,6 42,0 -6,8 Listed equities 1 296,7 30,6 1 366,3 32,3 -9,9 Private equity investments ³ 365,1 8,6 365,1 8,6 5,2 Unlisted equities ⁴ 45,2 1,1 45,2 1,1 2,6 Real estate investments 686,5 16,2 686,5 16,2 1,2 Direct real estate investments 569,0 13,4 569,0 13,4 1,2 Real estate funds 117,5 2,8 117,5 2,8 1,5 Other investments 415,7 9,8 415,7 9,8 3,0 Hedge fund investments ⁵ 256,8 6,1 256,8 6,1 2,6 Other investments ⁶ 158,9 3,8 158,9 3,8 3,8 Total investments 4 231,1 100,0 4 298,6 101,6 -3,5 Effect of derivatives ⁷ -67,6 -1,6 Total investments at fair value 4 231,1 100,0 Modified duration of the bond portfolio 4,6 Open currency position, % of the market value of investments 24,7 Fixed-income investments Basic breakdown Risk-adjusted breakdown Return 31 Mar 2022 31 Mar 2022
Veritas’ solvency remained at a secure level 100% 105% 110% 115% 120% 125% 130% 135% 140% 0 200 400 600 800 1 000 1 200 Solvency limit, milj. € Solvency capital, milj. € Solvency ratio, % (right-hand scale) • The solvency ratio was 127.9 per cent. • The solvency position was 1.7-fold compared to the solvency limit. • The solvency capital stood at EUR 940.2 million at the end of March 2022. 1) Veritas Pension Insurance and Pensions-Alandia merged on 1 January 2019. The figures for the previous years are Veritas figures before the merger. 2) The figures for 2012 include the provision for pooled claims equated with solvency capital, which was EUR 78.3 million.
2021 2025 2030 2035 Shift to low-carbon indices Carbon footprint -30 % Carbon footprint -50 % Fossil free heating and electricity Carbon footprint -80 % Carbon neutrality Carbon neutral portfolio Listed equity investments Direct real estate investments Veritas climate roadmap Listed equity and direct real estate investments Base year 2020
Emissions of Veritas’ equity and corporate bonds portfolio Source: UNEP, Emissions Gap Report 2021 Veritas corporate responsibility report of 2021
Working towards carbon-neutral properties by 2030 Carbon dioxide emissions (tCO₂) 2021 2020 Change All properties 558.9 2070 -73 % Total real estate mass, ratio (kgCO₂/m³) 0.14 Waste, volume (tn) 2021 2020 Change All properties 251.18 479.9 -48 % Water consumption (m³) 2021 2020 Change All properties 53 984 51 844 4 %
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Interim report, 1 January – 31 March 2022

  • 1. Interim report 1 January – 31 March 2022 28 April 2022
  • 2. Summary of January–March • The return on Veritas’ investments was negative in the first quarter of 2022. • Veritas’ solvency remained at a secure level and at the end of March was 1.7-fold compared to the solvency limit. • Veritas published its Corporate Responsibility Report on 20 April. • In real estate as well as in equity investments and corporate bonds, carbon dioxide emissions were reduced faster than targeted. 4.2bn Value of investments 1.7 Solvency position 127.9% Solvency ratio -3.5% Return on investments
  • 4. The investment return was -3.5% in the first quarter Investment returns 7,4 % 6,5 % 5,8 % 6,6 % 8,0 % -1,5 % 9,9 % 5,6 % 12,6 % -3,5 % -6,0 % -4,0 % -2,0 % 0,0 % 2,0 % 4,0 % 6,0 % 8,0 % 10,0 % 12,0 % 14,0 % 2013 2014 2015 2016 2017 2018 2019 2020 2021 1-3/2022 • During the first quarter of this year, the return on Veritas’ investments amounted to -3.5 per cent. • Fixed-income instruments yielded -3.0 per cent, equity investments -6.8 per cent, real estate 1.2 per cent and other investments 3.0 per cent.
  • 5. The cumulative investment return for a 10-year period is 82.6 per cent 90 110 130 150 170 190 210 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 The return is calculated from 1 April 2012 to 31 March 2022. Nominal return 10 years 6.2% 5 years 5.5% Real return 10 years 4.8% 5 years 3.5%
  • 6. Changes in portfolio allocation 30,2 % 47,4 % 15,6 % 8,7 % -1,9 % 33,6 % 42,0 % 16,2 % 9,8 % -1,6 % -10,0 % 0,0 % 10,0 % 20,0 % 30,0 % 40,0 % 50,0 % Fixed-income investments Equities and shares Real-estate investments Other investments Effect of derivatives 31.12.2021 31.3.2022
  • 7. Geographical distribution of investments All investments Listed equities
  • 8. Breakdown of investments at fair value 1-3/2022 milj. € % milj. € % ⁸ % 1 421,8 33,6 1 419,8 33,6 -3,0 Loan receivables ¹ 53,9 1,3 53,9 1,3 0,5 Bonds ¹ 1 044,5 24,7 1 042,5 24,6 -3,9 Government bonds 569,1 13,5 567,1 13,4 -5,2 Other bonds 475,4 11,2 475,4 11,2 -2,0 Other money market instruments and deposits ¹ ² 323,4 7,6 323,4 7,6 -0,3 Equity investments 1 707,1 40,3 1 776,6 42,0 -6,8 Listed equities 1 296,7 30,6 1 366,3 32,3 -9,9 Private equity investments ³ 365,1 8,6 365,1 8,6 5,2 Unlisted equities ⁴ 45,2 1,1 45,2 1,1 2,6 Real estate investments 686,5 16,2 686,5 16,2 1,2 Direct real estate investments 569,0 13,4 569,0 13,4 1,2 Real estate funds 117,5 2,8 117,5 2,8 1,5 Other investments 415,7 9,8 415,7 9,8 3,0 Hedge fund investments ⁵ 256,8 6,1 256,8 6,1 2,6 Other investments ⁶ 158,9 3,8 158,9 3,8 3,8 Total investments 4 231,1 100,0 4 298,6 101,6 -3,5 Effect of derivatives ⁷ -67,6 -1,6 Total investments at fair value 4 231,1 100,0 Modified duration of the bond portfolio 4,6 Open currency position, % of the market value of investments 24,7 Fixed-income investments Basic breakdown Risk-adjusted breakdown Return 31 Mar 2022 31 Mar 2022
  • 9. Veritas’ solvency remained at a secure level 100% 105% 110% 115% 120% 125% 130% 135% 140% 0 200 400 600 800 1 000 1 200 Solvency limit, milj. € Solvency capital, milj. € Solvency ratio, % (right-hand scale) • The solvency ratio was 127.9 per cent. • The solvency position was 1.7-fold compared to the solvency limit. • The solvency capital stood at EUR 940.2 million at the end of March 2022. 1) Veritas Pension Insurance and Pensions-Alandia merged on 1 January 2019. The figures for the previous years are Veritas figures before the merger. 2) The figures for 2012 include the provision for pooled claims equated with solvency capital, which was EUR 78.3 million.
  • 10. 2021 2025 2030 2035 Shift to low-carbon indices Carbon footprint -30 % Carbon footprint -50 % Fossil free heating and electricity Carbon footprint -80 % Carbon neutrality Carbon neutral portfolio Listed equity investments Direct real estate investments Veritas climate roadmap Listed equity and direct real estate investments Base year 2020
  • 11. Emissions of Veritas’ equity and corporate bonds portfolio Source: UNEP, Emissions Gap Report 2021 Veritas corporate responsibility report of 2021
  • 12. Working towards carbon-neutral properties by 2030 Carbon dioxide emissions (tCO₂) 2021 2020 Change All properties 558.9 2070 -73 % Total real estate mass, ratio (kgCO₂/m³) 0.14 Waste, volume (tn) 2021 2020 Change All properties 251.18 479.9 -48 % Water consumption (m³) 2021 2020 Change All properties 53 984 51 844 4 %