Finnish pension company Veritas has reported returns of 0.5 per cent on its investments in the third quarter of 2022, despite market challenges.

The firm stated that its solvency remained strong and at the end of September was 1.7 times the solvency limit.

Despite the positive return in Q3, Veritas’ investment return across the first three quarters of 2022 was -6.2 per cent.

Fixed income investment returns over this period were -8.2 per cent, returns on equities were -12.6 per cent, returns on real estate were 3.9 per cent and on other investments returns were 12.9 per cent.

Veritas’ premium income increased in the period January – September by 16.3 per cent compared to the same period in 2021.

Premium income throughout the year is forecast to exceed €700m.

"The listed shares have continued to fall, but the alternative investments have shown a positive return in our investment portfolio," said Veritas investment director, Kari Vatanen.

However, Vatanen warned that the market environment was constantly changing in a negative direction.

"The outlook for the economy and the investment market continues to be weak,” he stated.

“Expectations for economic growth have been gradually adjusted downwards throughout the beginning of the year, and the euro area is probably already in a recession.”

In September, the number of applications for old-age pension and partial old-age pension was found to be “significantly higher than normal”.

The pensions are adjusted at the turn of the year with an index increase that this year is exceptionally large.

"The increase in the occupational pension index benefits those who retire this year,” commented Veritas CEO, Carl Haglund.

“The number of applications in September was 108 percent more than during the same period last year.”

However, the number of people who applied for a disability pension had decreased by 13 per cent year-on-year.

"Mental illness is now the most common cause of disability retirement,” said Haglund.

“This is particularly prominent when it comes to young people's disability pensions.”

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