Finland’s Veritas returns 1.6% on investments in Q1 2023

Written by Adam Cadle

05/05/2023

Finnish pension insurer, Veritas, return 1.6% on its investments in the first quarter of 2023, its quarterly report has revealed.

Its return on equity investments was 2.4% and its fixed income investments returned 2%.

Veritas also saw a positive return on its real estate investments (1.1%), although its return on ‘other’ investments was -0.6%.

The pension insurer's solvency level was 1.7 times the solvency limit at the end of March.

"The positive trend in the investment market has persisted despite the fact that some banks' problems led to turbulence in the market in March,” Veritas investment director, Kari Vatanen, said.

“The share and fixed income investments have given a positive return in contrast to the same time last year."

The pension insurer noted that as the worst inflation fears receded at the beginning of the year and inflation began to decline, the market environment perked up, despite central banks continuing to raise interest rates.

It said that the rising interest rates should restore “realism” in the investment market.

"With these interest rates, fixed income investments are once again a worthwhile option for institutional investors,” Vatanen explained.

“On the other hand, one probably still needs to test the valuation levels of risk investments if central bank interest rates continue to rise."

At the start of 2023, Veritas received a record number of new customers, with Veritas CEO, Carl Haglund, saying that its customers appreciated that they get their own insurance adviser in addition to the YÖPL or ArPL insurance.

In the years 2020-2022, Veritas reduced its portfolio’s weighted carbon dioxide intensity for listed equities by more than 40%.

"Our goal is for the investment portfolio to be climate neutral by 2035,” said Vatanen.

“We are currently exceeding our goals, but the last metres will certainly be more difficult than the first steps."

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