Veritas is an earnings-related pension insurance professional. We work together with our customers and partners based on our more than 100 years of experience.
Our task is to secure the future. We invest the pension funds entrusted to us in a productive and secure manner for the benefit of all pension recipients. This makes us a responsible component of the decentralised Finnish earnings-related pension system.
We focus on the customer. We invest in our personnel’s competence so that we can offer our customers personal and professional service.
One of our greatest assets is our personnel who are dedicated and enthusiastic about their work. We ensure the well-being of our employees and strive to improve coping at work.
Our goal is profitable growth. Reliable and expert partners provide the cornerstones for growth. Strong key figures establish a sustainable foundation for our operations in a changing environment.
Veritas is a unique presence in the earnings-related pension markets. Our history of more than 100 years bears testimony to our strong expertise in the insurance sector and above all our excellent ability to adapt to changes taking place in society.
Adaptability has been a useful trait over the past few years. The adverse economic development affected Veritas’s customer base in 2013 and therefore the performance of our total premiums written took a slightly downward turn after several years of growth.
An uncertain economic situation also affects the investment markets. However, thanks to the positive share development during the final quarter of the year, our investment income rose to 7.4 per cent, which is an excellent result considering the current uncertain market sentiment.
In order to maintain the sustainability of the pension system, the long-term investment result is more important than an individual investment year. Our five-year real return of 5.1 per cent clearly exceeds the real return assumption of 3.5 per cent used by the Finnish Centre for Pensions in its calculations.
Achieving good returns in the investment markets is a challenging prospect in light of the uncertain economic outlook for upcoming years. Earnings-related pension funds must be invested both productively and securely. With solid expertise, a determined focus and intelligent diversification decisions we can continue to achieve good results in the future.
Strength through co-operation
In an ever-changing operating environment, co-operation is key. The earnings-related pension sector must also collaborate in areas that boost the sustainability of our system without endangering competition.
Over the past couple of years we have been preparing, in co-operation with Varma and Pension Fennia, a shared IT system project that will update our compensation system. I sincerely believe that this way we will achieve a better result more cost-effectively. I am delighted that Ilmarinen joined our ranks in the autumn and Elo in the spring. The first part of the new system will be implemented here at Veritas in spring 2014.
Good partners bring stability to our operations and strengthen performance. Veritas expanded its partner network in the spring by concluding a co-operation agreement with Handelsbanken Finland. In the summer, we deepened our sales co-operation with Pohjantähti Mutual Insurance Company. Our partnerships with Aktia Bank, Folksam Vahinkovakuutus, Alandia and Ålandsbanken are all thriving.
Based on service
Our operating concept is based on high-quality personal service. Customers experience this most clearly in their daily management of pension matters, which they can take care of conveniently through a single designated contact person.
Our customers value the services we offer. In the sector-specific customer satisfaction survey conducted by Taloustutkimus, we received the best overall score in our industry. In comparison with the previous years, the overall image of our brand developed in a positive direction. Our competent and dedicated personnel and strong customer-orientation are responsible for this good result.
Modern society presents its own set of demands for accessibility. In addition to our personal service we have also developed online services for our TyEL and YEL customers. The updated online service was launched in February 2014. We stay true to our operating concept by listening to our customers’ wishes and developing our service based on their needs
A dynamic system adapts to society’s needs
Even international assessments have found that Finland has an efficient and effective pension system.
The structure of the system must, however, be reconsidered carefully as the world changes. Only a dynamically developing system can adapt to rapid changes in society.
The social partners are drafting a pension system reform for 2017 based on the report submitted by the Director General of the Economics Department at the Ministry of Finance Jukka Pekkarinen in autumn 2013. They will present development proposals in the autumn of 2014. It is important to carefully investigate the effect that the various options will have on the entire system and to take into account the sustainability of pension system financing.
The earnings-related pension sector is also facing a number of additional changes. The dialogue concerning the regulation of well-being at work measures, which is intended to increase competition, will continue in 2014. The options for company-specific pricing are still being looked into. The openness of the earnings-related pension insurance sector and the transparency of corporate governance have also emerged as topics of public debate. These are areas in which Veritas has invested and will continue to invest even more in the future.
Our strong solvency and good key figures create a solid foundation for meeting future challenges.
I thank our Board, Supervisory Board and our committed and competent personnel for creating this foundation.
I also wish to extend my gratitude to all of our partners and wish them success in 2014. Let’s make it happen – together.
Turku, Finland, April 2014
Jan-Erik Stenman
CEO
