Finnish earnings-related pension provider Veritas has reported a positive set of results for the first half of 2025, with investments returning 1.9 per cent in the period from January to June.

The second quarter alone produced a 2.2 per cent return, reflecting the strength of Finnish equities and a resilient investment strategy despite ongoing market turbulence.

Indeed, by the end of June, the value of Veritas’ investment portfolio had risen to €4.9bn, compared to €4.6bn at the same point last year.

Meanwhile, by asset class, fixed income returned 0.9 per cent, equities 3.2 per cent, real estate 1.8 per cent and alternative investments 0.3 per cent.

Veritas acting CEO, Tommy Sandås, highlighted the firm’s strong premium income growth, with contributions estimated to rise by more than 12 per cent this year.

Veritas said this increase has been driven by higher payroll sums among its client base, where wage bills were up by over 12 per cent in the first half of the year.

Sandås noted, however, that the broader economy remained under pressure, with unemployment climbing above 10 per cent in the second quarter and private sector wage growth limited to just 2 per cent.

“There has been a pick-up in industrial orders, which is positive news. Consumer confidence also increased slightly in July, although it is still at a low level. We will probably have to wait a while longer for consumer demand to recover,” he added.

Also praising the firm's strong performance, Veritas chief investment officer, Laura Wickström, emphasised the rising returns of Finnish equities, with low valuations at the start of the year supporting profits.

She added that the engineering sector, in particular, had delivered a "strong" performance.

Meanwhile, as markets began the second quarter in a turbulent state but ended on a firmer footing, Wickström noted that investor sentiment has become more resilient.

She suggested that markets are now less reactive to the "abrupt changes" of US President Donald Trump, and that attention has shifted towards the impact of trade negotiations.

Wickström also observed that inflation developments in both Europe and the US have been milder than expected.

However, she cautioned that higher import tariffs and associated uncertainty could weigh on the real economy and inflation over the longer term.

“The market believes it is likely that the US Federal Reserve will cut its key interest rate in September.

“However, rising inflation could put a damper on the interest rate decision,” she warned.

The interim results place Veritas broadly in line with other Nordic pension institutions that have reported steady but unspectacular gains this year.

Like its peers in Sweden and Denmark, Veritas has benefited from stronger equity markets and relatively muted inflation, but continues to face challenges from a weakening domestic economy.

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