Varma records best ever annual investment return

Written by Adam Cadle

18/02/2022

Finnish insurer Varma has reported a return on investments of 18.5% or €9.3bn in 2021, the highest annual return ever in its history.

The best returns were generated by equities, 32.2%, of which private equity investments generated 49.6%, unlisted equities 26.3%, and listed equities 26.4%. Hedge fund investments also generated very good returns, at 15.3%. Real estate investments generated a return of 5.9%, and fixed income investments 1.9%.

Varma’s solvency capital reached a new record high of €16.9bn and was 2.0 times the solvency limit at the end of the year.

“Last year was exceptionally favourable for investors," Varma’s CIO Reima Rytsölä said.

“The strategic allocation of our investment portfolio worked particularly well. The asset classes that showed weak performance in 2020 were our strengths last year. It goes to show that investment calls for resilience and perseverance.”

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