Finland’s Veritas sees investment returns recover in Q3 2020

Finnish pension insurance company, Veritas, saw its investment return improve to 3.3 per cent in Q3 2020, its interim report has revealed.

However, its overall return on investments in 2020 remained negative, at -1.1 per cent, as of 30 September.

Between January and September, Veritas’ return on fixed income investments was 1.2 per cent, while equity investments returned -3.5 per cent, real estate 3.5 per cent and other investments -5.1 per cent.

“This year, the diversification of investments has not paid off,” said Veritas CIO, Kari Vatanen.

“Risks were realised in different asset classes at the same time and a positive investment yield has been achieved by a few industries that have suffered minimally as a result of the corona crisis.

“On the whole, the effect of diversification has decreased due to the growing central bank stimulus.”

However, Veritas’ solvency remained strong throughout the pandemic, with its solvency ratio increasing to 124.3 per cent at the end of September. Its solvency position was 1.8.

The value of its investments totalled €3.6bn, with the 10-year nominal return registered at 5 per cent and real return at 3.8 per cent.

“The financial recovery process has taken on a K-shape,” added Vatanen.

“Some fields are doing well, while others are doing very poorly. Although the manufacturing industry has begun to bounce back, the service sector continues to suffer.”

Veritas’ premium income was €547.3m for the period of January–September 2020, compared to €592.7m in 2019.

    Share Story:

Recent Stories

Podcast: How can a cross-border approach to pensions benefit multinationals?
In this podcast, Irish Association of Pension Funds CEO, Jerry Moriarty and AMX Head of Client and Manager Development, Aaron Overy, discuss with European Pensions Editor, Natalie Tuck, how a cross-border approach to pensions can benefit multinational companies.

Podcast - How are investors reacting to climate change in the Nordics?
In this podcast, BNP Paribas Asset Management’s Chief Sustainability Strategist, Mark Lewis, and AP7’s Head of ESG and Communications, Johan Florén, discuss with European Pension’s Editor, Natalie Tuck, how investors are reacting to climate change in the Nordics.
Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows

Europe’s pensions challenges
Francesca Fabrizi meets Matti Leppälä, Secretary General and CEO of PensionsEurope, to discuss the key aims and objectives of the association today.