The total return on Veritas’ investments was 3.9 per cent in April–June and 7.3 per cent in the first half of 2021. The good investment result strengthened Veritas’ solvency, which increased to 131.5 per cent at the end of June. Veritas’ solvency capital surpassed one billion euros for the first time. Veritas attracted a record number of new customers in the second quarter.

1. Interim report
1 January – 30 June 2021
27 August 2021

2. Summary of January–June
• The total return on Veritas’ investments was 3.9 per cent in April–June and 7.3 per cent in the first half of 2021.
• The good investment result strengthened Veritas’ solvency, which increased to
131.5 per cent at the end of June. Veritas’ solvency capital surpassed one billion euros for the first time.
• Customers’ payroll has started to rise after the decline caused by the corona pandemic and the premiums written
are expected to exceed 600 million euros.
• The first half of the year was strong in terms of customer acquisition. Veritas attracted a record number of new
customers in the second quarter.
4.2bn
Value of investments
1.9
Solvency position
131.5%
Solvency ratio
7.3%
Return on investments

3. Investments

4. The investment return was 7.3% in the first half
of the year
11.3 %
7.4 %
6.5 %
5.8 %
6.6 %
8.0 %
-1.5 %
9.9 %
5.6 %
7.3 %
-4.0 %
-2.0 %
0.0 %
2.0 %
4.0 %
6.0 %
8.0 %
10.0 %
12.0 %
2012 2013 2014 2015 2016 2017 2018 2019 2020 1-6/2021
• The return on Veritas’ investments
was 3.9% in April-June.
• In the first half of the year, the
investment return was 7.3%.
• Equity investments performed
best, with a return of 15.4%. Real
estate investments had a return of
2.8%, other investments 5.9%,
and fixed-income investments
0.9%.
Investment returns

5. Long-term return at a good level
90
100
110
120
130
140
150
160
170
180
190
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
The return is calculated from 1 July 2011 to 30 June 2021 .
Nominal return
Real return
10 years
6.1 %
5 years
7.0 %
10 years
5.0 %
5 years
5.9 %
The cumulative investment return for a 10-year period is 80.9%.

6. Changes in portfolio allocation
36.0 %
45.1 %
16.3 %
6.2 %
-3.6 %
32.1 %
44.4 %
15.7 %
7.4 %
0.4 %
33.7 %
45.4 %
15.3 %
6.8 %
-1.2 %
-10.0 %
0.0 %
10.0 %
20.0 %
30.0 %
40.0 %
50.0 %
Fixed-income
investments
Equities and shares Real-estate
investments
Other investments Effect of derivatives
31.12.2020 31.3.2021 30.6.2021

7. Geographical distribution of investments
All investments Listed equities

8. Breakdown of investments at fair value
1-6/2021
milj. € % milj. € % ⁸ %
1 456,2 35,0 1 404,6 33,7 0,9
Loan receivables ¹ 58,4 1,4 58,4 1,4 0,7
Bonds ¹ 1 151,1 27,7 1 094,9 26,3 1,2
Government bonds 573,6 13,8 522,0 12,5 -0,1
Other bonds 577,5 13,9 572,9 13,8 2,4
Other money market instruments and deposits ¹ ² 246,7 5,9 251,3 6,0 0,0
Equity investments 1 786,4 42,9 1 889,8 45,4 15,4
Listed equities 1 444,3 34,7 1 547,6 37,2 16,0
Private equity investments ³ 307,2 7,4 307,2 7,4 14,3
Unlisted equities ⁴ 34,9 0,8 34,9 0,8 3,4
Real estate investments 636,5 15,3 636,5 15,3 2,8
Direct real estate investments 525,6 12,6 525,6 12,6 2,4
Real estate funds 110,9 2,7 110,9 2,7 5,1
Other investments 282,7 6,8 282,7 6,8 5,9
Hedge fund investments ⁵ 171,7 4,1 171,7 4,1 8,1
Other investments ⁶ 111,0 2,7 111,0 2,7 2,0
Total investments 4 161,8 100,0 4 213,5 101,2 7,3
Effect of derivatives ⁷ -51,7 -1,2
Total investments at fair value 4 161,8 100,0
Modified duration of the bond portfolio 3,6
Open currency position, % of the market value of investments 19,0
Fixed-income investments
Basic breakdown Risk-adjusted breakdown Return
30 Jun 2021 30 Jun 2021

9. Good investment result strengthened solvency
• The solvency ratio increased
to 131.5% during the first half
of the year.
• The solvency position was
1.9 at the end of June.
• The solvency capital stood at
EUR 1 021.1 million at the
enf of June 2021.
100%
105%
110%
115%
120%
125%
130%
135%
140%
0
200
400
600
800
1 000
1 200
Solvency limit, milj. € Solvency capital, milj. € Solvency ratio, % (right-hand scale)
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.

10. Pensions and insurance

11. The pension expenditure is close to
600 million euros
533.8
568.1
589.5 585.4
599.3
200.0
250.0
300.0
350.0
400.0
450.0
500.0
550.0
600.0
2017 2018 2019 2020 6/2021
Pensions and other claims paid 1, 2), EUR million
1) Pensions and other claims paid 6/2021 is an estimate for the whole year 2021.
2) The figures for 2017-2018 are pro forma figures (Veritas + Pensions-Alandia)
Number of pensioners 2)
35714
36324
37118
37627 37942
20000
22000
24000
26000
28000
30000
32000
34000
36000
38000
2017 2018 2019 2020 6/2021

12. The premiums written are expected to exceed
600 million euros
567.1
588.6 592.7
551.6
601.6
300
350
400
450
500
550
600
650
2017 2018 2019 2020 6/2021
Premiums written 1, 2), EUR million
0
20000
40000
60000
80000
100000
120000
140000
2017 2018 2019 2020 6/2021
Number of
pensioners
Number of YEL
policies
Number of
TyEL insured
Number of insured persons 2, 3)
1) Premiums written 6/2021 is an estimate of the whole year 2021. The temporary discount on employers’ TyEL contributions between May and December 2020 is taken into account.
2) The figures for 2017–2018 are pro forma figures (Veritas + Pensions-Alandia).
3) 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.

13. Customers’ payroll has started to rise
after the decline caused by the corona pandemic
2059.1
2133.1
2159.2
2131.4
2196.0
1000
1200
1400
1600
1800
2000
2200
2400
2017 2018 2019 2020 6/2021
TyEL payroll 1, 2), EUR million
1) The figures for 2017–2018 are pro forma figures (Veritas + Pensions-Alandia)
2) TyEL payroll 6/2021 is an estimate for the whole year 2021.
Number of TyEL policies 1, 3)
8215
8711
8885 8839
9385
8769
5000
5500
6000
6500
7000
7500
8000
8500
9000
9500
10000
2017 2018 2019 6/2020 2020 6/2021

14. Number of YEL policies continues to increase
276.0 276.4
289.6 295.6 301.4
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
2017 2018 2019 2020 6/2021
Reported income under YEL 1, 2), EUR million
1) The figures for 2017–2018 are pro forma figures (Veritas + Pensions-Alandia)
2) Reported income under YEL 6/2021 is an estimate for the whole year 2021.
Number of YEL policies 1)
11516
12129
12940
13285 13448
5000
6000
7000
8000
9000
10000
11000
12000
13000
14000
2017 2018 2019 2020 6/2021

15. Result
Result analysis, EUR million 1-6/2021 1-6/2020 2020
Technical underwriting result 5,6 3,6 2,3
Return on investments at fair value 123,1 -159,8 70,0
+ Net return on investments at fair value 284,8 -155,0 206,4
- Return requirement on technical provisions -161,7 -4,8 -136,4
Loading profit 0,8 0,9 1,8
Other profit 0,1 0,6 1,7
Total result 129,6 -154,7 75,8
Operating income covered by expense loading component,
EUR million
9,4 8,8 17,5
% of the expense loading component 91,9 % 90,4 % 90,5 %
Number of employees (average) 159 156 157

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