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Annual review of 2012:

Jan-Erik Stenman

Our strong key figures tell of a well-conducted business and efficient operations

The year 2012 was especially challenging from a financial perspective. The eurozone just nearly avoided a full-blown crisis, and it does not appear that we are in the clear yet.

Despite this challenging financial situation, the past year was a good one for Veritas. We managed to increase our premium income and achieve an excellent return on our investments. The return on all asset categories was good. The long-term annual nominal yield is at an adequate level, around 5.9 per cent since 1997.

These favorable key figures are a reflection of our well-managed company and efficient activities. Part of our result will directly benefit our customers: during 2013, we will transfer 4.8 million euro to customer bonuses; an increase of 40 per cent from the previous year! Veritas represents a worthy choice for its customers.

Employment pension ensures a secure future

Employment pension is something that all generations have in common. Those who are working now are providing a large proportion of the pensions that are currently being paid out. For this reason, it is important to consider the future of the pension system from a broad perspective.

According to Professor Nicolas Barr and Professor Keith Ambachtsheer, Finland has a pension system that holds its own in international comparison. In order to make sure that this success is sustainable, we need to work together on its development. Work careers must be extended and the investment return on managed pension funds improved while, at the same time, the cost development must be kept in check.

Despite the developmental needs, the future of the employment pension industry is on solid footing.  A system that has open and transparent administration and that is actively developing in such a way as to meet with the demands of society and working life will surely carry us for another 50 years – and beyond.

Steady growth through co-operation

Our customers expect us to provide ever more comprehensive solutions to their everyday challenges. In order to serve them as well as possible, we need a diverse network of partners.

In February 2012, we purchased a 15 per cent share of the current Folksam Non-Life Insurance Company Ltd (at that time, Aktia Non-Life Insurance Company), at the same time as the Swedish company Folksam Sak became the majority shareholder in the company. For Veritas, this investment is a strategic part of strengthening its competitive edge as an employment pension partner for self-employed persons and SMEs.

Our fruitful co-operation with the Aktia Group has already been ongoing for years. As a bank, Aktia is an important partner to Veritas, particularly as it concerns self-employed persons and smaller employers.

Our longest partnership is with Pensions-Alandia in the Åland islands. We have been working together since the employment pension system entered into force in 1962, at which point we were both granted a license to operate as employment pension insurers. In accordance with our coinsurance agreement, Veritas is responsible for one half of Pensions-Alandia’s insurance portfolio.

In addition to those mentioned above, I would like to thank POP Banks, RVM Group Ltd and Financeworld Ltd for acting as agents for Veritas throughout 2012. You have all helped us to stay close to our customers.

Personal service lends a competitive edge

I would also like to share my gratitude to our customers for their trust in our company and services. At Veritas, our activities are guided by a strong belief in personal service; this is an area that we will continue to invest in, also in the future.

In 2012, we initiated two extensive system reforms, namely to upgrade our compensation system and the online service for our TyEL and YEL customers. Both undertakings represent long-term investments in the quality of our service and the development of our efficiency.

In 2012, Veritas also excelled in making pension decisions at a faster rate than average. Speed is not, however, a value that stands on its own. Our rapid service is the result of staunch professional competence and a polished customer service process: each customer can conveniently handle their pension issues with a personally assigned insurance advisor.

Our personnel has shown its solid commitment to their work. I would like to extend my warmest thanks to them for their dedication. You are the ones who made this all possible. A great deal of gratitude also belongs to the Board of Directors and Supervisory Board of our company.

Turku, Finland     April 2013

Jan-Erik Stenman