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Veritas Interim Report 1 January–30 September 2024

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Veritas Eläkevakuutus - Veritas Pensionsförsäkring
Veritas Eläkevakuutus - Veritas Pensionsförsäkring

The return on Veritas’ investments was 6.7 per cent in January–September. The return on fixed-income investments was 5.3 per cent, on equity investments 10.4 per cent, on real estate 1.1 per cent and on other investments 4.4 per cent. 

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Interim report 1 January – 30 September 2024 30 October 2024
Summary of January-September • The return on Veritas’ investments was 6.7 per cent in January-September. • The return on fixed-income investments was 5.3 per cent, equity investments 10.4 per cent, real estate investments 1.1 per cent and other investments 4.4 per cent. • The year is shaping up to be record-breaking in terms of customer acquisition. Sales are increasing by more than 50 per cent compared to the previous year. • Premiums written are expected to grow by 5.4 per cent in 2024. • The TyEL payroll is estimated to increase by 6.8 per cent in 2024. 4.7bn Value of investments 1.5 Solvency position 123.4% Solvency ratio 6.7% Return on investments 2
Investments
The return on investments was 6.7 per cent Investment returns 5.8 % 6.6 % 8.0 % -1.5 % 9.9 % 5.6 % 12.6 % -4.5 % 5.7 % 6.7 % -6.0 % -4.0 % -2.0 % 0.0 % 2.0 % 4.0 % 6.0 % 8.0 % 10.0 % 12.0 % 14.0 % 2015 2016 2017 2018 2019 2020 2021 2022 2023 1-9/2024 • The return on Veritas’ investments was 1.4 per cent in the third quarter of 2024. • In January-September, the return on investments was 6.7 per cent. • The return on fixed income investments was 5.3 per cent, equity investments 10.4 per cent, real estate investments 1.1 per cent and other investments 4.4 per cent. 4
The cumulative investment return for a 10-year period is 70.2 per cent 90 100 110 120 130 140 150 160 170 180 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 The return is calculated from 1 October 2014 to 30 September 2024. Nominal return 10 years 5.5% 5 years 5.7% Real return 10 years 3.4% 5 years 2.2% 5
The share of equity investments exceeds 50 per cent 28.2 % 46.9 % 14.2 % 13.7 % -2.9 % 26.2 % 51.1 % 13.7 % 13.8 % -4.9 % 24.8 % 50.4 % 13.5 % 13.8 % -2.5 % 21.5 % 52.1 % 13.2 % 13.4 % -0.2 % -10.0 % 0.0 % 10.0 % 20.0 % 30.0 % 40.0 % 50.0 % 60.0 % Fixed-income investments Equities and shares Real-estate investments Other investments Effect of derivates 31.12.2023 31.3.2024 30.6.2024 30.9.2024 6
Geographical distribution of investments All investments Listed equities 7
Breakdown of investments at fair value ¹ Includes accrued interest ² Includes cash and bank balance as well as settlement receivables and liabilities ³ Includes private equity and mezzanine funds ⁴ Includes unlisted real estate investment companies ⁵ Includes all types of hedge fund shares, regardless of the fund’s strategy ⁶ Includes items that cannot be allocated to other investment groups ⁷ Includes the effect of derivatives on the difference between risk-adjusted breakdown and basic breakdown. The effect may be positive or negative (+/-). When the effect is taken into account, the sums of the risk-adjusted breakdown and the basic breakdown are equal. ⁸ The relative proportion is calculated using the total of the line ‘Total investments at fair value’ as the divisor. The table has been compiled according to the guidelines of the Finnish Pension Alliance Tela. 8 1-9/2024 milj. € % milj. € % ⁸ % 1 089.7 23.1 1 014.4 21.5 5.3 Loan receivables ¹ 58.6 1.2 58.6 1.2 4.3 Bonds ¹ 922.0 19.5 846.7 17.9 5.7 Government bonds 551.9 11.7 476.6 10.1 4.4 Other bonds 370.1 7.8 370.1 7.8 7.1 Other money market instruments and deposits ¹ ² 109.1 2.3 109.1 2.3 3.2 Equity investments 2 372.3 50.3 2 457.2 52.1 10.4 Listed equities 1 869.5 39.6 1 954.5 41.4 13.4 Private equity investments ³ 433.1 9.2 433.1 9.2 0.7 Unlisted equities ⁴ 69.7 1.5 69.7 1.5 3.3 Real estate investments 624.8 13.2 624.8 13.2 1.1 Direct real estate investments 506.7 10.7 506.7 10.7 1.5 Real estate funds 118.1 2.5 118.1 2.5 -0.7 Other investments 631.0 13.4 631.0 13.4 4.4 Hedge fund investments ⁵ 479.1 10.2 479.1 10.2 3.7 Other investments ⁶ 151.8 3.2 151.8 3.2 6.8 Total investments 4 717.7 100.0 4 727.4 100.2 6.7 Effect of derivatives ⁷ -9.6 -0.2 Total investments at fair value 4 717.7 100.0 Modified duration of the bond portfolio 4.0 Open currency position, % of the market value of investments 25.2 Fixed-income investments Basic breakdown Risk-adjusted breakdown Return 30 Sep 2024 30 Sep 2024
Veritas’ solvency has strengthened during the year 100% 105% 110% 115% 120% 125% 130% 135% 140% 0 200 400 600 800 1 000 1 200 Solvency limit, EUR million Solvency capital, EUR million Solvency ratio, % (right-hand scale) • The solvency ratio was 123.4 per cent at the end of September. • The solvency position was 1.5 times the solvency limit. • The solvency capital stood at EUR 918.0 million at the end September. 1) Veritas Pension Insurance and Pensions-Alandia merged on 1 January 2019. The figures for the previous years are Veritas figures before the merger. 9
Pensions and insurance
Veritas pays out pensions to 40 000 people Pensions and other claims paid 1), EUR million 585.4 601.9 635.2 701 761.5 200 300 400 500 600 700 800 2020 2021 2022 2023 9/2024 Number of pensioners 37627 37965 38785 39396 39981 20000 25000 30000 35000 40000 45000 2020 2021 2022 2023 9/2024 11 1) Pensions and other claims paid 9/2024 is an estimate for the whole year 2024.
Veritas takes care of the pension cover of 124,000 people Number of insured persons 68 349 65 983 67 728 64 319 58 940 15 656 14 864 14 391 13 859 13 285 39 981 39 396 38 785 37 965 37 627 0 20000 40000 60000 80000 100000 120000 140000 9/2024 2023 2022 2021 2020 TyEL insured YEL insured Pension recipients TyEL insured YEL insured Pension recipients 68 349 15 656 39 981 12
Premiums written are expected to grow by 5.4 per cent Premiums written 1), EUR million 551.6 614.3 696.5 724.1 763.0 300.0 350.0 400.0 450.0 500.0 550.0 600.0 650.0 700.0 750.0 800.0 2020 2021 2022 2023 9/2024 • Veritas’ premiums written are expected to grow by 5.4 per cent to EUR 763.0 million. • The share of TyEL insurances accounts for EUR 684.3 million and YEL insurances for EUR 78.7 million of the total. 13 1) Premiums written 9/2024 is an estimate of the whole year 2024.
The TyEL payroll is estimated to increase by 6.8 per cent TyEL payroll 1), EUR million 2131.4 2244.6 2488.2 2598.9 2775.0 1000.0 1200.0 1400.0 1600.0 1800.0 2000.0 2200.0 2400.0 2600.0 2800.0 3000.0 2020 2021 2022 2023 9/2024 Number of TyEL policies 9385 9339 9377 8944 9213 9413 5000 5500 6000 6500 7000 7500 8000 8500 9000 9500 10000 2020 2021 2022 9/2023 2023 9/2024 1) TyEL payroll 9/2024 is an estimate for the whole year 2024. 14
Growth in YEL insurance policies picked up Reported income under YEL 1), EUR million 295.6 302.5 319.6 336.6 380.6 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 2020 2021 2022 2023 9/2024 Number of YEL policies 13285 13859 14391 14864 15656 5000 7000 9000 11000 13000 15000 17000 2020 2021 2022 2023 9/2024 1) Reported income under YEL 9/2024 is an estimate for the whole year 2024. 15
Result 16 Result analysis, EUR million 1-9/2024 1-9/2023 2023 Technical underwriting result -4.0 -1.1 -2.8 Return on investments at fair value 96.0 -33.1 26.1 + Net return on investments at fair value 297.4 96.3 237.6 - Return requirement on technical provisions -201.4 -129.4 -211.5 Loading profit 1) -1.8 0.5 -0.3 Other profit 0.7 0.3 0.3 Total result 90.9 -33.4 23.2 Operating income covered by expense loading component, EUR million 1) 13.7 12.7 18.0 Number of employees (average) 134 132 130
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Veritas Interim Report 1 January–30 September 2024

  • 1. Interim report 1 January – 30 September 2024 30 October 2024
  • 2. Summary of January-September • The return on Veritas’ investments was 6.7 per cent in January-September. • The return on fixed-income investments was 5.3 per cent, equity investments 10.4 per cent, real estate investments 1.1 per cent and other investments 4.4 per cent. • The year is shaping up to be record-breaking in terms of customer acquisition. Sales are increasing by more than 50 per cent compared to the previous year. • Premiums written are expected to grow by 5.4 per cent in 2024. • The TyEL payroll is estimated to increase by 6.8 per cent in 2024. 4.7bn Value of investments 1.5 Solvency position 123.4% Solvency ratio 6.7% Return on investments 2
  • 4. The return on investments was 6.7 per cent Investment returns 5.8 % 6.6 % 8.0 % -1.5 % 9.9 % 5.6 % 12.6 % -4.5 % 5.7 % 6.7 % -6.0 % -4.0 % -2.0 % 0.0 % 2.0 % 4.0 % 6.0 % 8.0 % 10.0 % 12.0 % 14.0 % 2015 2016 2017 2018 2019 2020 2021 2022 2023 1-9/2024 • The return on Veritas’ investments was 1.4 per cent in the third quarter of 2024. • In January-September, the return on investments was 6.7 per cent. • The return on fixed income investments was 5.3 per cent, equity investments 10.4 per cent, real estate investments 1.1 per cent and other investments 4.4 per cent. 4
  • 5. The cumulative investment return for a 10-year period is 70.2 per cent 90 100 110 120 130 140 150 160 170 180 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 The return is calculated from 1 October 2014 to 30 September 2024. Nominal return 10 years 5.5% 5 years 5.7% Real return 10 years 3.4% 5 years 2.2% 5
  • 6. The share of equity investments exceeds 50 per cent 28.2 % 46.9 % 14.2 % 13.7 % -2.9 % 26.2 % 51.1 % 13.7 % 13.8 % -4.9 % 24.8 % 50.4 % 13.5 % 13.8 % -2.5 % 21.5 % 52.1 % 13.2 % 13.4 % -0.2 % -10.0 % 0.0 % 10.0 % 20.0 % 30.0 % 40.0 % 50.0 % 60.0 % Fixed-income investments Equities and shares Real-estate investments Other investments Effect of derivates 31.12.2023 31.3.2024 30.6.2024 30.9.2024 6
  • 7. Geographical distribution of investments All investments Listed equities 7
  • 8. Breakdown of investments at fair value ¹ Includes accrued interest ² Includes cash and bank balance as well as settlement receivables and liabilities ³ Includes private equity and mezzanine funds ⁴ Includes unlisted real estate investment companies ⁵ Includes all types of hedge fund shares, regardless of the fund’s strategy ⁶ Includes items that cannot be allocated to other investment groups ⁷ Includes the effect of derivatives on the difference between risk-adjusted breakdown and basic breakdown. The effect may be positive or negative (+/-). When the effect is taken into account, the sums of the risk-adjusted breakdown and the basic breakdown are equal. ⁸ The relative proportion is calculated using the total of the line ‘Total investments at fair value’ as the divisor. The table has been compiled according to the guidelines of the Finnish Pension Alliance Tela. 8 1-9/2024 milj. € % milj. € % ⁸ % 1 089.7 23.1 1 014.4 21.5 5.3 Loan receivables ¹ 58.6 1.2 58.6 1.2 4.3 Bonds ¹ 922.0 19.5 846.7 17.9 5.7 Government bonds 551.9 11.7 476.6 10.1 4.4 Other bonds 370.1 7.8 370.1 7.8 7.1 Other money market instruments and deposits ¹ ² 109.1 2.3 109.1 2.3 3.2 Equity investments 2 372.3 50.3 2 457.2 52.1 10.4 Listed equities 1 869.5 39.6 1 954.5 41.4 13.4 Private equity investments ³ 433.1 9.2 433.1 9.2 0.7 Unlisted equities ⁴ 69.7 1.5 69.7 1.5 3.3 Real estate investments 624.8 13.2 624.8 13.2 1.1 Direct real estate investments 506.7 10.7 506.7 10.7 1.5 Real estate funds 118.1 2.5 118.1 2.5 -0.7 Other investments 631.0 13.4 631.0 13.4 4.4 Hedge fund investments ⁵ 479.1 10.2 479.1 10.2 3.7 Other investments ⁶ 151.8 3.2 151.8 3.2 6.8 Total investments 4 717.7 100.0 4 727.4 100.2 6.7 Effect of derivatives ⁷ -9.6 -0.2 Total investments at fair value 4 717.7 100.0 Modified duration of the bond portfolio 4.0 Open currency position, % of the market value of investments 25.2 Fixed-income investments Basic breakdown Risk-adjusted breakdown Return 30 Sep 2024 30 Sep 2024
  • 9. Veritas’ solvency has strengthened during the year 100% 105% 110% 115% 120% 125% 130% 135% 140% 0 200 400 600 800 1 000 1 200 Solvency limit, EUR million Solvency capital, EUR million Solvency ratio, % (right-hand scale) • The solvency ratio was 123.4 per cent at the end of September. • The solvency position was 1.5 times the solvency limit. • The solvency capital stood at EUR 918.0 million at the end September. 1) Veritas Pension Insurance and Pensions-Alandia merged on 1 January 2019. The figures for the previous years are Veritas figures before the merger. 9
  • 11. Veritas pays out pensions to 40 000 people Pensions and other claims paid 1), EUR million 585.4 601.9 635.2 701 761.5 200 300 400 500 600 700 800 2020 2021 2022 2023 9/2024 Number of pensioners 37627 37965 38785 39396 39981 20000 25000 30000 35000 40000 45000 2020 2021 2022 2023 9/2024 11 1) Pensions and other claims paid 9/2024 is an estimate for the whole year 2024.
  • 12. Veritas takes care of the pension cover of 124,000 people Number of insured persons 68 349 65 983 67 728 64 319 58 940 15 656 14 864 14 391 13 859 13 285 39 981 39 396 38 785 37 965 37 627 0 20000 40000 60000 80000 100000 120000 140000 9/2024 2023 2022 2021 2020 TyEL insured YEL insured Pension recipients TyEL insured YEL insured Pension recipients 68 349 15 656 39 981 12
  • 13. Premiums written are expected to grow by 5.4 per cent Premiums written 1), EUR million 551.6 614.3 696.5 724.1 763.0 300.0 350.0 400.0 450.0 500.0 550.0 600.0 650.0 700.0 750.0 800.0 2020 2021 2022 2023 9/2024 • Veritas’ premiums written are expected to grow by 5.4 per cent to EUR 763.0 million. • The share of TyEL insurances accounts for EUR 684.3 million and YEL insurances for EUR 78.7 million of the total. 13 1) Premiums written 9/2024 is an estimate of the whole year 2024.
  • 14. The TyEL payroll is estimated to increase by 6.8 per cent TyEL payroll 1), EUR million 2131.4 2244.6 2488.2 2598.9 2775.0 1000.0 1200.0 1400.0 1600.0 1800.0 2000.0 2200.0 2400.0 2600.0 2800.0 3000.0 2020 2021 2022 2023 9/2024 Number of TyEL policies 9385 9339 9377 8944 9213 9413 5000 5500 6000 6500 7000 7500 8000 8500 9000 9500 10000 2020 2021 2022 9/2023 2023 9/2024 1) TyEL payroll 9/2024 is an estimate for the whole year 2024. 14
  • 15. Growth in YEL insurance policies picked up Reported income under YEL 1), EUR million 295.6 302.5 319.6 336.6 380.6 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 2020 2021 2022 2023 9/2024 Number of YEL policies 13285 13859 14391 14864 15656 5000 7000 9000 11000 13000 15000 17000 2020 2021 2022 2023 9/2024 1) Reported income under YEL 9/2024 is an estimate for the whole year 2024. 15
  • 16. Result 16 Result analysis, EUR million 1-9/2024 1-9/2023 2023 Technical underwriting result -4.0 -1.1 -2.8 Return on investments at fair value 96.0 -33.1 26.1 + Net return on investments at fair value 297.4 96.3 237.6 - Return requirement on technical provisions -201.4 -129.4 -211.5 Loading profit 1) -1.8 0.5 -0.3 Other profit 0.7 0.3 0.3 Total result 90.9 -33.4 23.2 Operating income covered by expense loading component, EUR million 1) 13.7 12.7 18.0 Number of employees (average) 134 132 130