In 2020, Veritas reported an investment return of 5.6% for the year, with a notable increase in solvency to 128.8%. The extent of pandemic-related challenges was evident as premiums written declined, though the number of insurance policies increased. Veritas aims for a carbon-neutral investment portfolio by 2035 and has updated its investment principles to focus on sustainability.

1. Financial statement
presentation 2020
18 February 2021

2. The year 2020 in brief
• The return on Veritas’ investments was 6.8%t in the fourth quarter of 2020, bringing the
investment return for the whole year to 5.6%.
• The good investment result strengthened Veritas’ solvency, which increased by the end of the
year to 128.8%.
• Veritas offered its customers flexibility and granted payment extensions.
• Premiums written declined due to the temporary discount on employers’ TyEL contributions
and a decline in employment.
• The number of YEL and TyEL insurance policies grew.
3.9bn
Value of investments
1.9
Solvency position
128.8%
Solvency ratio
5.6%
Investment return

3. Investments

4. The investment return was 6.8% in the fourth quarter
-4.9 %
11.3 %
7.4 %
6.5 %
5.8 %
6.6 %
8.0 %
-1.5 %
9.9 %
5.6 %
-6.0 %
-4.0 %
-2.0 %
0.0 %
2.0 %
4.0 %
6.0 %
8.0 %
10.0 %
12.0 %
14.0 %
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
• The investment return for the
whole year was 5.6% in 2020
• Equity investments succeeded
best, with a return of 9.1% last
year. The return on real estate
investments was 6.8%, fixed
income investments 3.8% and
other investments -2.6%.
• In the fourth quarter, the
investment return was 6.8%.
Investment returns

5. Investment year 2020: pandemic and stimulus
Return on Veritas’ investments 2020
Lockdown in
Wuhan,
China
Covid-19
spreads to
Italy
Fed cuts
interest rates by
0.5 percentage
points
Fed cuts interest
rates by 1.0
percentage points
ECB: PEPP
EUR 750bn
Lockdowns
in Europe
FED: unlimited QE
US
elections
ECB: PEPP
+ EUR 600bn
Easing of
lockdown
restrictions
EU stimulus:
EUR 750 bn
Covid-19:
second wave
US stimulus: USD 2 000bn
First vaccine
announcements
ECB: PEPP
+ EUR 500bn
US stimulus:
+ USD 900bn

6. Investment returns recovered from the fall
90
100
110
120
130
140
150
160
170
180
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
The return is calculated from 1 January 2011 to 31 December 2020.
Nominal return
Real return
10 years
5.4%
5 years
5.6%
10 years
4.2%
5 years
4.8%
The cumulative investment return for a 10-year period is 68.5%

7. Active adjustments to the allocation
35.8 %
40.7 %
15.0 %
9.0 %
-0.5 %
40.2 %
31.9 %
16.0 %
9.4 %
2.5 %
36.2 %
41.6 %
15.6 %
9.4 %
-2.8 %
37.9 %
42.4 %
15.6 %
5.9 %
-1.8 %
36.0 %
45.1 %
16.3 %
6.2 %
-3.6 %
-10.0 %
0.0 %
10.0 %
20.0 %
30.0 %
40.0 %
50.0 %
Fixed-income investments Equity investments Real-estate investments Other investments Effect of derivatives
31.12.2019 31.3.2020 30.6.2020 30.9.2021 31.12.2020
Changes in portfolio allocation

8. Geographical distribution of investments
All investments Listed equities

9. Breakdown of investments at fair value
⁶ Includes items that cannot be allocated to other investment groups
⁷ Includes the effect of derivatives on the difference between risk-adjusted breakdown and basic breakdown. The effect may be positive or
negative (+/-). When the effect is taken into account, the sums of the risk-adjusted breakdown and the basic breakdown are equal.
⁸ The relative proportion is calculated using the total of the line ‘Total investments at fair value’ as the divisor.
The table has been compiled according to the guidelines of the Finnish Pension Alliance Tela.
¹ Includes accrued interest.
² Includes cash and bank balance as well as settlement receivables and liabilities.
³ Includes private equity and mezzanine funds.
⁴ Includes unlisted real estate investment companies.
⁵ Includes all types of hedge fund shares, regardless of the fund’s strategy.
2020
milj. € % milj. € % ⁸ %
1 438,4 37,1 1 392,6 36,0 3,8
Loan receivables ¹ 55,4 1,4 55,4 1,4 1,8
Bonds ¹ 1 179,3 30,5 1 133,5 29,3 4,6
Government bonds 633,7 16,4 587,8 15,2 5,4
Other bonds 545,7 14,1 545,7 14,1 3,3
Other money market instruments and deposits ¹ ² 203,7 5,3 203,7 5,3 -0,5
Equity investments 1 560,6 40,3 1 747,2 45,1 9,1
Listed equities 1 248,4 32,2 1 435,0 37,1 9,1
Private equity investments ³ 280,1 7,2 280,1 7,2 9,0
Unlisted equities ⁴ 32,0 0,8 32,0 0,8 7,2
Real estate investments 631,6 16,3 631,6 16,3 6,8
Direct real estate investments 524,8 13,6 524,8 13,6 7,7
Real estate funds 106,8 2,8 106,8 2,8 2,8
Other investments 241,7 6,2 241,7 6,2 -2,6
Hedge fund investments ⁵ 167,5 4,3 167,5 4,3 -3,2
Other investments ⁶ 74,2 1,9 74,2 1,9 -0,3
Total investments 3 872,2 100,0 4 013,0 103,6 5,6
Effect of derivatives ⁷ -140,7 -3,6
Total investments at fair value 3 872,2 100,0
Modified duration of the bond portfolio 5,5
Open currency position, % of the market value of investments 14,4
Fixed-income investments
Basic breakdown Risk-adjusted breakdown Return
31 Dec 2020 31 Dec 2020

10. The good investment result strengthened solvency
1) Veritas Pension Insurance and Pensions-Alandia merged on 1 January 2019. The figures for the previous years are Veritas figures before the merger.
2) The figures for 2010–2012 include the provision for pooled claims equated with solvency capital, which was EUR 70.1 million in 2010, EUR 73.3 million in
2011 and EUR 78.3 million in 2012.
• Solvency has remained at a
good level throughout the
various phases of the corona
crisis.
• The solvency ratio increased
during the final quarter to
128.8%.
• The solvency position was 1.9
at the end of the year.
• The solvency capital stood at
EUR 891.9 million at the end
of the year.
100%
105%
110%
115%
120%
125%
130%
135%
140%
0
100
200
300
400
500
600
700
800
900
1 000
Solvency limit, EUR million Solvency capital, EUR million
Solvency ratio, % (right-hand scale)

11. Aiming for a carbon-neutral
investment portfolio by 2035
• We updated our responsible investment
principles and investment-related climate policy
• In real estate investments we focused on green
energy
• Our new headquarters was built according to
ambitious green building standards
• We increased investments in wind power

12. Pensions and insurance

13. EUR 585.4 million paid in pensions
528.7 533.8
568.1
589.5 585.4
200
250
300
350
400
450
500
550
600
2016 2017 2018 2019 2020
Pensions and other claims paid 1), EUR million
1) The figures for 2016-2018 are pro forma figures (Veritas + Pensions-Alandia)
Number of pensioners 1)
34742
35714
36324
37118
37627
20000
22000
24000
26000
28000
30000
32000
34000
36000
38000
2016 2017 2018 2019 2020

14. Premiums written declined
552.3
567.1
588.6 592.7
551.6
300
350
400
450
500
550
600
650
2016 2017 2018 2019 2020
Premiums written 1, 2), EUR million
0
20000
40000
60000
80000
100000
120000
140000
2016 2017 2018 2019 2020
Number of
pensioners
Number of YEL
policies
Number of
TyEL insured
Number of insured persons 2, 3)
1) The figures for 2016–2018 are pro forma figures (Veritas + Pensions-Alandia).
2) The number of TyEL-insured persons in 2019 and 2020 is not fully comparable with the earlier years. The definition of this key figure changed in 2019 when the
Incomes Register was taken into use.
due to the temporary discount on employers’ TyEL contributions and a decline in employment

15. TyEL payroll amount declined
2027.5
2059.1
2133.1
2159.2
2131.4
1000
1200
1400
1600
1800
2000
2200
2400
2016 2017 2018 2019 2020
TyEL payroll 1), EUR million
1) The figures for 2016–2018 are pro forma figures (Veritas + Pensions-Alandia).
Number of TyEL policies 1)
8038
8215
8711
8885
9385
5000
5500
6000
6500
7000
7500
8000
8500
9000
9500
10000
2016 2017 2018 2019 2020

16. Number of YEL policies continues to increase
287.1
276.0 276.4
289.6 295.6
0
50
100
150
200
250
300
350
2016 2017 2018 2019 2020
Reported income under YEL 1), EUR million
1) The figures for 2016–2018 are pro forma figures (Veritas + Pensions-Alandia).
Number of YEL policies 1)
11684 11516
12129
12940
13285
5000
6000
7000
8000
9000
10000
11000
12000
13000
14000
2016 2017 2018 2019 2020

17. Result
Result analysis, EUR million 2020 2019
Technical underwriting result 2,3 -4,3
Return on investments at fair value 70,0 85,6
+ Net return on investments at fair value 206,4 332,6
- Return requirement on technical provisions -136,4 -247,0
Loading profit 1) 1,8 2,5
Other profit 1,7 1,5
Total result 75,8 85,2
Operating income covered by expense loading component,
EUR million
17,5 18,9
% of the expense loading component 1) 90,5 % 88,3 %
Number of employees (average) 157 154
1) The expense loading rate was reduced by 6.9% at the start of 2020. The comparable loading profit was improved by EUR 0.8 million compared to 2019 and was
EUR 3.3 million. The ratio of operating expenses to expense loading components improved by 4.0 percentage points to 84.3%.

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