Finnish pension company Varma has reported that the value of its investments exceeded €70bn in the first half of 2026, primarily driven by strong equity returns, its half-year report has shown.

Its investments returned 5.3 per cent between January and June 2026, bringing the value of its investments up by €3.1bn to €71.4bn.

“The investment market showed strong resilience, as the Iran war and the subsequent energy crisis did not interrupt the market's rise,” said Varma CEO, Risto Murto.

“It is also positive that the recovery of the Finnish economy has not been stopped by rising interest rates and the conflict in the Middle East.”

Varma’s equity return was 8 per cent in the first half of 2026, with listed equities returning 10.7 per cent.

Its return on fixed income investments was 0.4 per cent, while private equity returned 2.2 per cent, and hedge funds returned 5 per cent.

However, the pension company’s real estate investments had a negative return of -2 per cent.

Varma’s solvency ratio increased from 135.7 at the start of the year to 137.4 at the end of June, while its solvency capital was €19.7bn, up from €18.2bn.

“The global economy progressed in a strong cross-wave between artificial intelligence investments and the consequences of the Iran war,” said Varma deputy CEO, Markus Aho.

“Energy supply problems accelerated inflation, but at the same time, ongoing investments in artificial intelligence supported the economy, companies and investment markets.

“The stock market rally seen in the spring was focused on artificial intelligence companies, chip manufacturers and technology companies.

“Investments related to artificial intelligence and computing power are one of the large single waves of infrastructure investment, the impact of which is broader than originally estimated."

Following the Finnish pension reform, which came into effect in July and allowed pension companies to take more risk on their investments, Varma has increased its exposure to equities in its investment portfolio.

“A growing portion of Varma's investments is invested in shares,” Aho added.

“As a solvent pension company, we have been able to implement our investment strategy taking into account the market situation.”

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