Listed/private equity boost sees Varma record best ever quarterly investment result

Written by Adam Cadle

29/04/2021

Varma recorded the best quarterly investment result in the company’s history in January-March 2021, with a return on investments at 6% ( Q1 2020: -10%) or €3bn and the total value of investments growing to €52.9bn.

The investment result was affected in particular by the strong performance of both listed and private equities, as well as hedge funds. Equity investments yielded a return of 10.8%, of which private equities accounted for 16.0% and listed equities for 9.2%. Other investments returned 4.4%, of which hedge funds accounted for 4.5%. The return on real estate investments was 0.9%, and on fixed income investments it was -0.3%.

Solvency capital reached a new record-high level at €13.5bn, due to good investment returns The solvency ratio was 133.5%.

“Starting from the beginning of last November, we have witnessed an exceptionally strong period in the equity markets. It has been supported by the global economy’s recovery and strong fiscal and monetary policy stimulus, and not even the rising long-term interest rates have ruffled the equity market,” Varma’s CIO Reima Rytsölä said.

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