Veritas Pension Insurance succeeded in attaining excellent investment returns in 2021. The return from the investments during the year amounted to 12.6 per cent, i.e., close to EUR 0.5 billion. Equity investments generated 25.2 per cent, real estate investments 9.5 per cent, fixed-income investments 1.6 per cent, and other investments 7.4 per cent. The good investment return strengthened Veritas solvency.

1. Financial statement
presentation 2021
17 February 2022

2. The year in brief
• Veritas succeeded in attaining excellent investment returns in 2021. The return from
investments during the year amounted to 12.6 per cent, i.e., close to EUR 0.5 billion.
• Veritas’ solvency position remained solid and was further improved owing to the good
investment performance.
• Veritas gained a record-breaking number of new customers and increased its customer
retention.
• At the close of the year, a total of 78 000 people were insured by Veritas. Veritas was paid
out pensions to nearly 38 000 recipients.
4.4bn
Value of investments
1.8
Solvency position
131.9%
Solvency ratio
12.6%
Investment return

3. Investments

4. Highest investment return for Veritas
in the 21st century
11.3 %
7.4 %
6.5 %
5.8 %
6.6 %
8.0 %
-1.5 %
9.9 %
5.6 %
12.6 %
-4.0 %
-2.0 %
0.0 %
2.0 %
4.0 %
6.0 %
8.0 %
10.0 %
12.0 %
14.0 %
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
• The investment return for the
whole year was 12.6% in 2021
• Equity investments succeeded
best, with a return of 25.2% last
year. The return on real estate
investments was 9.5%, other
investments 7.4% and fixed
income investments 1.6%.
• In the fourth quarter, the
investment return was 4.0%.
Investment returns

5. 2021 – the year of stimulus, vaccines and inflation
-2%
0%
2%
4%
6%
8%
10%
12%
14%
01/2021 02/2021 03/2021 04/2021 05/2021 06/2021 07/2021 08/2021 09/2021 10/2021 11/2021 12/2021
Return development of Veritas investments 2021
Real rates start to rise
US stimulus
packages
Interest rates
stop rising
Vaccinations begin
Reported inflation
rises rapidly
Supply chains face
increased disruptions
Woes in China’s
real estate sector
Inflation expectations
and interest rates
rise again
Omicron
spreads
Europe’s
energy crisis
Delta variant
spreads

6. Monetary stimulus has contributed to
good investment returns
100
120
140
160
180
200
220
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
The return is calculated from 1 January 2012 to 31 December 2021.
Nominal return
Real return
10 years
7.2%
5 years
6.8%
10 years
5.9%
5 years
5.5%
The cumulative investment return for a 10-year period is 99.5%

7. The share of equity investments increased
32.1 %
44.4 %
15.7 %
7.4 %
0.4 %
33.7 %
45.4 %
15.3 %
6.8 %
-1.2 %
34.2 %
46.2 %
15.2 %
7.5 %
-3.1 %
30.2 %
47.4 %
15.6 %
8.7 %
-1.9 %
-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
31.3.2021 30.6.2021 30.9.2021 31.12.2021
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.
2021
milj. € % milj. € % ⁸ %
1 361,3 31,1 1 322,2 30,2 1,6
Loan receivables ¹ 54,2 1,2 54,2 1,2 0,9
Bonds ¹ 1 069,1 24,4 1 030,0 23,5 1,9
Government bonds 612,4 14,0 573,3 13,1 0,8
Other bonds 456,7 10,4 456,7 10,4 3,2
Other money market instruments and deposits ¹ ² 238,0 5,4 238,0 5,4 0,4
Equity investments 1 951,0 44,6 2 072,2 47,4 25,2
Listed equities 1 550,7 35,4 1 671,9 38,2 23,8
Private equity investments ³ 354,8 8,1 354,8 8,1 31,1
Unlisted equities ⁴ 45,5 1,0 45,5 1,0 27,5
Real estate investments 683,8 15,6 683,8 15,6 9,5
Direct real estate investments 566,1 12,9 566,1 12,9 9,1
Real estate funds 117,7 2,7 117,7 2,7 11,3
Other investments 380,2 8,7 380,2 8,7 7,4
Hedge fund investments ⁵ 246,7 5,6 246,7 5,6 9,0
Other investments ⁶ 133,5 3,1 133,5 3,1 4,9
Total investments 4 376,2 100,0 4 458,4 101,9 12,6
Effect of derivatives ⁷ -82,1 -1,9
Total investments at fair value 4 376,2 100,0
Modified duration of the bond portfolio 4,7
Open currency position, % of the market value of investments 25,5
Fixed-income investments
Basic breakdown Risk-adjusted breakdown Return
31 Dec 2021 31 dec 2021

10. Solvency was further improved
owing to the good investment performance
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 2011–2012 include the provision for pooled claims equated with solvency capital, which was EUR 73.3 million in 2011 and EUR 78.3 million in
2012.
• The solvency ratio
increased during the final
quarter to 131.9%.
• The solvency position was
1.8 at the end of the year.
• The solvency capital stood
at EUR 1 081.0 million at
the end of the year.
100%
105%
110%
115%
120%
125%
130%
135%
140%
0
200
400
600
800
1 000
1 200
Solvency limit, EUR million Solvency capital, EUR million
Solvency ratio, % (right-hand scale)

11. 2035
2030
2025
2021
Carbon neutral
portfolio
Shift to low-carbon
indices
Carbon footprint
-30%
Carbon footprint
-50 %
Fossil free
heating and
electricity
Carbon footprint
-80%
Carbon neutrality
Direct real estate
investments
Listed equity
investments
Listed equity investments
Base year 2020
Veritas climate roadmap

12. Pensions and insurance

13. Over EUR 600 million paid in pensions
Pensions and other claims paid 1), EUR million
1) The figures for 2017-2018 are pro forma figures (Veritas + Pensions-Alandia)
Number of pensioners 1)
35714
36324
37118
37627
37965
20000
22000
24000
26000
28000
30000
32000
34000
36000
38000
2017 2018 2019 2020 2021
533.8
568.1
589.5 585.4
601.9
200.0
250.0
300.0
350.0
400.0
450.0
500.0
550.0
600.0
650.0
2017 2018 2019 2020 2021

14. Premiums written increased to over EUR 600 million
567.1
588.6 592.7
551.6
614.3
300
350
400
450
500
550
600
650
2017 2018 2019 2020 2021
Premiums written 1, 2), EUR million
0
20000
40000
60000
80000
100000
120000
140000
2017 2018 2019 2020 2021
Number of
pensioners
Number of YEL
policies
Number of
TyEL insured
Number of insured persons 2, 3)
1) The figures for 2017–2018 are pro forma figures (Veritas + Pensions-Alandia).
2) The number of TyEL-insured persons in 2019-2021 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.

15. TyEL payroll amount increased by 5.3 per cent
2059.1
2133.1
2159.2
2131.4
2244.6
1000
1200
1400
1600
1800
2000
2200
2400
2017 2018 2019 2020 2021
TyEL payroll 1), EUR million
1) The figures for 2017–2018 are pro forma figures (Veritas + Pensions-Alandia).
Number of TyEL policies 1)
8215
8711
8885
9385 9339
5000
5500
6000
6500
7000
7500
8000
8500
9000
9500
10000
2017 2018 2019 2020 2021

16. Number of entrepreneur customers
continues to increase
276.0 276.4
289.6 295.6 302.5
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
2017 2018 2019 2020 2021
Reported income under YEL 1), EUR million
1) The figures for 2017–2018 are pro forma figures (Veritas + Pensions-Alandia).
Number of YEL policies 1)
11516
12129
12940
13285
13859
5000
6000
7000
8000
9000
10000
11000
12000
13000
14000
2017 2018 2019 2020 2021

17. Result
Result analysis, EUR million 2021 2020
Technical underwriting result 8,7 2,3
Return on investments at fair value 192,6 70,0
+ Net return on investments at fair value 490,3 206,4
- Return requirement on technical provisions -297,6 -136,4
Loading profit 2,0 1,8
Other profit -0,4 1,7
Total result 202,9 75,8
Operating income covered by expense loading component,
EUR million
18,2 17,5
% of the expense loading component 90,3 % 90,5 %
Number of employees (average) 157 157

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