LocalTapiola General Mutual Insurance
Company
Report of the Board of Directors and financial
statements for 2025
Business ID: 0211034-2
Table of contents
Report of the Board of Directors for 2025
1Key information
2Key events during the financial year
3Solvency and the risk position
4Events after the financial year
5Future prospects
6Governance of LocalTapiola Group
7Sustainability statement
8Proposal for the use of profit
Financial statements for 1 January 2025 - 31 December 2025
9Consolidated financial statements, LocalTapiola Group
10Parent company, LocalTapiola General
11Accounting principles
12Notes on risk management
Signatures for the report of the Board of Directors and financial statements
Auditor’s note
LocalTapiola General | Report of the Board of Directors for 2025
1
Report of the Board of Directors
for 2025
LocalTapiola General Mutual Insurance Company
(LocalTapiola General) is domiciled in Espoo, Finland, and its
business ID is 0211034-2. LocalTapiola General provides
voluntary and statutory non-life insurance.
As the ultimate parent company, LocalTapiola General
prepares the consolidated financial statements of
LocalTapiola Group to the extent determined for insurance
groups as defined in the Insurance Companies Act. The
business areas of LocalTapiola Group are non-life insurance,
life insurance, asset management, and motor vehicle finance
and corporate lending.
1 Key information
• In 2025, LocalTapiola Group’s premiums written increased in both
non-life and term life insurance, and our business also continued to
grow in asset management and motor vehicle finance.
• In spite of the uncertainty that shook the investment market,
different asset classes provided a positive yield, and the investment
year ultimately turned out largely as expected.
• LocalTapiola Group’s solvency remained strong and operating result
for 2025 was EUR 445.9 million (in 2024: EUR 630.8 million). Total
result, which also reflects changes in the valuation differences of
investments, was EUR 576.8 million (EUR 835.6 million).
• LocalTapiola Group’s market position consolidated in several
business areas:
• In non-life insurance, direct premiums written grew 6.2 per cent.
According to statistics by Finance Finland published in 2025, we
became the market leader in workers’ compensation insurance, as
measured by premiums written. We further consolidated our position
as the motor liability insurance market leader, as measured by the
number of insurance contracts, and we are also the market leader in
farm insurance. 
• In term life insurance, we are the market leader in Finland, and
premiums written for term life insurance increased 4.2 per cent.
LocalTapiola Life’s total premiums written grew 0.7 per cent.
• At year-end, assets under management by LocalTapiola Asset
Management Group were EUR 35.2 billion, representing year-on-year
growth of 8.9 per cent. Seligson & Co, which is part of LocalTapiola
Asset Management Group, grew to become the fourth-largest fund
management company in Finland.
• LocalTapiola Finance is Finland’s second-largest motor vehicle
finance company, and despite the difficult market situation, the
finance portfolio under its management grew 1.0 per cent.
• As outlined in our Owner Intent, we focus on increasing customer
benefits for our owner-customers. In 2025, we credited our customers
EUR 139.6 million (EUR 123.5 million) in non-life and life insurance
customer bonuses and EUR 45.1 million (EUR 41.5 million) in S Group
bonus on insurance premiums. Overall, LocalTapiola Group had 1.8
million (1.8 million) customers.
• Sari Heinonen started as LocalTapiola Group’s President on 1 May
2025.
• Antti Pulkkanen started as Managing Director of LocalTapiola
General on 1 August 2025.
• In the 2025 Report of the Board of Directors, we report sustainability
information for LocalTapiola Group as required under the Accounting
Act.
LocalTapiola General | Report of the Board of Directors for 2025
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LocalTapiola Group
Volume and profitability of insurance operations
2025
2024
Non-life insurance, Premiums written in direct insurance,
EUR m
1,604.2
1,510.9
Life insurance, Premiums written, EUR m
418.9
416.0
Combined ratio (excl. unwinding of discount expense), %
91.2
96.2
Risk ratio, %
61.8
66.3
Cost ratio, %
29.4
29.9
Claims and customer benefits
Claims paid, non-life insurance, EUR m
1,014.6
1,035.2
Claims paid, life insurance, EUR m
393.5
409.1
Customer credits, non-life and life insurance, EUR m
139.6
123.5
S Bonus, EUR m
45.1
41.5
Result and solvency
Operating profit, EUR m
445.9
630.8
Total result, EUR m
576.8
835.6
Solvency ratio, %
196.3
201.7
Solvency ratio = amount of eligible own funds as compared to the Solvency
Capital Requirement (Solvency II). Solvency calculation does not fall within
the remit of statutory audit. The formulae for calculating the key figures are
described in the financial statements. The comparative figures for the profit
and loss account items and for the periodic key figures (shown in
parentheses) are those reported for 1 January 2024 - 31 December 2024. The
comparative figures for the balance-sheet and other cross-sectional key
figures (shown in parentheses) are those representing the situation on 31
December 2024
2 Key events during the financial year
2.1 Non-life insurance
2.1.1 Non-life insurance activities of LocalTapiola
Group
The non-life insurance activities of the group comprise LocalTapiola General,
the regional non-life insurance companies and Finnish P&C Insurance Ltd.
LocalTapiola General is active in the businesses of workers’ compensation
insurance, insurance for large corporate clients, and reinsurance. The business
activity of the LocalTapiola regional companies consists in the provision of
insurance to private and farm customers, and to small and medium-sized
enterprises. Finnish P&C Insurance Ltd provides non-life insurance to private
customers by utilising digital service channels in particular.
Our operational starting point is to deliver benefit to owner-customers.
LocalTapiola is there for its customers. Our aim is to produce the greatest
customer benefit and customer satisfaction achievable – at a competitive
price. We measure how the financial benefits of owner-customers develop. In
our group strategy, we seek profitable growth, a sound customer base and
sustainable success over the long term.
As our business landscape is becoming increasingly digital, we continued
improving the online services of both private and corporate customers and
clients across our insurance, saving and investment services. By developing
digital services, we facilitate customer self-service for routine transactions in
order to ensure smooth multichannel service as well as wide access to
specialist services in more complex transaction needs.
A high customer retention rate is testament to the satisfaction of our owner-
customers. A large-scale reform of insurance systems is ongoing in both non-
life insurance and life insurance.
Direct premiums written in non-life insurance amounted to  EUR 1604.2
million (EUR 1510.9 million), representing year-on-year growth of 6.2 per cent.
Premiums were affected by price increases and indexation, and the growth in
premiums written was supported by the consistently high customer retention
rate. In terms of our lines of business, growth was strongest in voluntary
personal insurance, where premiums written increased 9.5 per cent. Over the
LocalTapiola General | Report of the Board of Directors for 2025
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course of 2025, we consolidated our position as the motor liability insurance
market leader by 0.4 percentage points. Measured by the number of
insurance contracts, our market share at year-end was 37.4 per cent.
Furthermore, we are also the market leader in farm insurance, with a market
share of 66 per cent as the principal insurer of farms
LocalTapiola Group
Development of direct premiums written, by group of classes, EUR million
For the second consecutive year, non-life insurance claims paid to customers
exceeded one billion euros, but claims development and inflation moderated
compared to the past couple of years. Claims paid decreased 2.0 per cent
year-on-year, with the actual figure at EUR 1,014.6 million (EUR 1,035.2
million). The number of claims increased further in some lines of business,
including medical expenses insurance and pet insurance. However, the volume
of building, motor and occupational accident claims decreased compared to
2024. Following the Hannes storm, which in December buffeted western
Finland in particular, 2025 recorded the highest claims expenditure volume
for storms in the 2020s.
There were 91 (93) property and business claims for catastrophes worth at
least EUR 300,000, slightly fewer the year before. Our gross claims
expenditure for these claims was EUR 60.0 million (EUR 85.1 million).
LocalTapiola Group’s non-life insurance claims incurred were EUR 1,096.7
million (EUR 1,101.6 million) and the group’s risk ratio, which describes the
profitability of the core insurance business, excluding the unwinding of
discount rate, was 61.8 per cent (66.3%). The actual figure includes non-
recurring changes made to the actuarial principles, both in 2025 and in the
comparison period, that decreased claims incurred in both years.
Increased non-life insurance volumes, wage inflation and investments made in
operational development have raised the group’s operating expenses. Non-
life insurance operating expenses were EUR 449.8 million (EUR 434.8 million),
but as a result of good growth in premiums earned, the cost ratio, which
measures the efficiency of non-life insurance, improved 0.5 percentage
points to 29.4 per cent (29.9%).
Balance on the technical account before the change in the equalisation
provision was EUR 111.8 million (EUR 36.4 million). The combined ratio
excluding the unwinding of discount rate was 91.2 per cent (96.2%).
In non-life insurance, premiums written, premiums earned and claims incurred
include non-recurring items related to changes in the actuarial principles and
method of calculation of technical provisions. The combined impact from the
items improved the balance on the technical account before the change in
the equalisation provision by EUR 48.7 million. The changes are described in
more detail in the accounting principles of the financial statements.
2.1.2 LocalTapiola General
For LocalTapiola General, 2025 was a good year in terms of sales and
investment. During the year, direct premiums written increased 7.3 per cent
to EUR 282.4 million. Premiums written strengthened particularly in voluntary
personal insurance and property insurance. All in all, premiums written
increased 3.0 per cent.
In 2025, we surpassed goals in non-life insurance sales to large clients. Sales
were strongest in corporate property and business insurance.
LocalTapiola General | Report of the Board of Directors for 2025
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We serve large clients across Finland, with six teams responsible for clients in
their respective geographical regions, and five sectorally organised teams
serving our clients in the Helsinki Metropolitan Area.
We offer large clients LocalTapiola Group’s products and services for non-life
insurance, life insurance, asset management, finance and remuneration, and
earnings-related pension products and services provided by a partner. In
2025, we continued to invest strongly in developing our broker services.
During 2025, we launched a new responsible client selection guideline and
approach. We continued to invest in our employees’ sustainability
competences and preventive risk management. In our Sustainability Report,
we published a PCAF-based GHG emission calculation for the corporate
clients that we insure.
LocalTapiola has several ongoing projects for developing insurance products
and services of corporate clients. It is of particular importance for us that the
projects address client needs. In 2025, an increasing number of our specialists
participated in these projects, in various different roles. Internally, we
deployed, among other things, a new telephone system and a host of
artificial-intelligence tools.
The profitability of our claims service continued to improve during the year. A
mild winter reduced the number of occupational accidents. Lead times for
claims in the statutory lines of business, and the claims service’s workload,
were at a good level throughout the year. The close cooperation by the claims
service with occupational healthcare and client companies produced good
results. The Accident Appeal Board’s rate of revision – an indicator of the
quality of claims handling – decreased further from the previous year, and
LocalTapiola’s figure was the smallest for large companies.
For investment, the year 2025 was very much as expected. LocalTapiola
General’s investment income was 4.7 per cent (EUR 168.5 million). Driven by
equity investments, the return on investment in all asset classes was clearly
positive. Returns on listed equities, in particular, were good. Furthermore, the
return on fixed-income investments was also positive, aided by the clearly
higher interest rates as compared to recent years. The return on sovereign
debt investments, used to hedge the interest rate risk of technical provisions,
remained approximately 4% negative following a rise in long-term interest
rates. On the other hand, the increased interest rates decreased the present
value of the technical provisions of the group’s insurance companies, thereby
improving solvency. Also, the return on illiquid investments was positive, which
was primarily due to alternative investments and investment loans. As a result
of steady rent cash flows, returns from real estate investments were
moderately positive, although property values continued to show a slight
decline.
Due to a strong return on investment, LocalTapiola General’s capital and
reserves position enhanced by some EUR 83 million during the year. The
solvency ratio at the end of the financial year was 337 per cent. The company
meets regulatory requirements clearly. 
LocalTapiola Group deployed a new HR system, Hertta. At LocalTapiola
General, we continued to pursue the systematic development of
competences, focusing on the core skills we have identified, including
leadership, management, technological and customer experience
competences. We invested in improving collaboration between teams, units
and companies by developing more effective structures and enhancing our
communications. We increased management’s and employees’ awareness and
understanding of diversity and inclusion. Based on the Roihu employee survey,
our employee experience was good and leadership was excellent.
LocalTapiola General 
Volume and profitability of insurance operations
2025
2024
Premiums written in direct insurance, EUR m
282.4
263.2
Change %
7.3
3.4
Margin before change in equalisation provision, EUR m
25.4
13.5
Combined ratio (excl. unwinding of discount expense), %
87.8
92.1
Risk ratio, %
62.6
64.9
Cost ratio, %
25.2
27.2
Claims paid, EUR m
198.7
198.5
Result and solvency
Operating profit, EUR m
152.0
279.7
Total result, EUR m
194.4
325.4
Solvency ratio, %
336.6
346.5
2.2 Life insurance
A sound financial basis has allowed us to develop our products, processes and
services, and increase customer benefits. An increasing number of Finns have
recognised how important it is to personally prepare for the future. In risk
insurance, we have strengthened our market leader position, and we expect
this growth to also continue in the coming years.
LocalTapiola General | Report of the Board of Directors for 2025
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We have invested in corporate clients and the development of remuneration
services. In 2024, we founded a remuneration services company to
complement the service offering of LocalTapiola Group. Employee
engagement is becoming increasingly important for companies, and they
want to hold on to top talents.
Employee satisfaction remained strong. We focused on customer service,
ensuring the availability of consistently high‑quality service across all
customer processes. These successes contributed to the continued positive
development of customer experience.
We continued the development of co-investment service models and
products. With LocalTapiola’s assistance, our owner-customers get to invest
in instruments in which we also invest. In future, we will be seeking strong
growth in the savings life insurance sector.
We continued the development project to reform our core systems, with the
aim of considerably improving customer experience by providing increasingly
smoother services and by investing in making services more understandable
and relevant. Our system reform and lifelong security strategy are both based
on excellent customer experience.
LocalTapiola Life’s total premiums written increased 0.7 per cent to EUR
418.9 million (EUR 416.0 million). The good development of premiums written
continued in term life insurance. In term life insurance, premiums written
increased 4.5 per cent. The premiums written for savings life insurance fell 0.8
per cent, while the premiums written for group pension insurance declined 0.4
per cent.
LocalTapiola Life paid its customers EUR 393.5 million (EUR 409.1 million) in
claims. EUR 132.4 million (EUR 124.8 million) was paid in pensions, EUR 26.3
million (EUR 22.6 million) in reimbursement for medical expenses and
disability benefits and EUR 54.6 million (EUR 48.3 million) in death benefits.
LocalTapiola Life’s operating profit was EUR 130.3 million (EUR 218.3 million)
and total result was EUR 121.7 million (EUR 232.6 million). Investment income
at fair value was 2.1 per cent, or EUR 61.9 million (6.1%, or EUR 177.6 million).
The company’s underwriting result developed well. Risk result was EUR 60.4
million (EUR 54.7 million), and expense result was EUR 3.0 million (EUR 5.6
million). Expense result includes items treated as loading income.
2.3 Investment markets, and the insurance
companies’ investments 
Investment aims to generate value for our owner-customers in the interests
of insureds. Investment income enables us to maintain solvency and provide
competitive services in the future. 
In the financial market, equity prices increased in 2025 across the board. The
eventful year was marked particularly by President Trump’s volatile trade and
economic policies, which caused significant market swings in the first half of
the year. In the second half of the year, the strong rise in the stock markets
was supported by stronger‑than‑expected economic and performance
developments, a reduction in trade policy uncertainty, a strengthening of
investor risk appetite, and continued enthusiasm for artificial intelligence.
Unlike in recent years, the performance of the European and Finnish stock
markets was stronger than in the United States. As for bonds, high-risk
corporate bonds and emerging market bonds, in particular, performed well. A
significant weakening of the U.S. dollar reduced the euro‑denominated
returns of dollar‑denominated investments.
At the start of the year, the overall outlook for the financial markets
regarding economic and performance growth prospects is reasonably
positive. Global economic growth is expected to continue in 2026 close to the
previous year’s level. The outlook for the international economy improved in
the second half of 2025 as trade policy uncertainty eased, but politics and
geopolitical tensions continue to be surrounded by significant uncertainty. In
the financial markets as well, the most significant risk factors are linked to
politics and geopolitics. In addition, sovereign debt challenges, the reduced
fiscal space for stimulus, and elevated asset valuations may, in weaker
scenarios, cause instability in the economic and financial system.
For investment, 2025 proved very much as expected for the LocalTapiola
Group insurance companies, with a positive return on investment in all asset
classes, driven by equity investments. As a result of higher technical provisions
and a weaker profit from the fixed-income investments hedging them,
LocalTapiola Life’s profit fell short of the profit recorded by the group’s non-
life insurance companies. As a whole, the LocalTapiola Group insurance
companies’ net investment income for 2025 was EUR 434 million (EUR 728
million). Returns on listed equities, in particular, were good. Furthermore, the
return on fixed-income investments was positive, with risky corporate bonds
performing extremely well. The return on sovereign debt investments, used to
hedge the interest rate risk of technical provisions, remained negative
following a rise in long-term interest rates. On the other hand, the increased
LocalTapiola General | Report of the Board of Directors for 2025
6
interest rates decreased the present value of technical provisions, thereby
improving the solvency of the companies. The return on illiquid investments
was positive, which was primarily due to alternative investments and
investment loans. As a result of steady rent cash flows, returns from real
estate investments were moderately positive, although property values
continued to show a slight decline. 
Taken as a whole, the risk level of the investment portfolios of the group’s
insurance companies is moderate in relation to risk-bearing capacity.
LocalTapiola General’s net investment income at fair value for 2025 was 4.7
per cent (9.4%). Of all investments, more than 47.7% were equity
investments. LocalTapiola General’s average five-year annual investment
income was 4.4 per cent (4.1%), and the average ten-year annual investment
income was 4.3 per cent (4.4%).
LocalTapiola General
Investment activities
2025
2024
Return on investment at current value, %
4.7
9.4
Fixed-income investments
2.8
4.5
Equity investments
7.8
15.4
Real estate investments
1.2
3.2
Other investments
6.6
5.2
Investment allocation, %
Fixed-income investments
33.5
35.2
Equity investments
47.7
45.1
Real estate investments
18.6
19.5
Other investments
0.2
0.3
LocalTapiola General’s investment assets at fair value were EUR 3,646.1
million in 2025 (EUR 3,496.9 million in 2024).
The LocalTapiola regional companies recorded a 5.3 per cent (6.1%) fair-value
rate of return on investments.
LocalTapiola Life’s net investment income at fair value was 2.1 per cent
(6.1%), or EUR 62 million (EUR 178 million). LocalTapiola Life’s average five-
year annual investment income was 2.3 per cent (2.4%).
2.4 Asset management
Apart from LocalTapiola Life, services for saving and investment are provided
by the following companies: LocalTapiola Asset Management Ltd, which acts
as asset manager for investment clients; Seligson & Co Fund Management
Company Plc, which engages in the funds business; alternative investment
fund manager LocalTapiola Alternative Investment Funds Ltd (merged to
Seligson & Co Fund Management Company Plc on 31 December 2025) and its
subsidiaries; and real estate investment manager LocalTapiola Real Estate
Asset Management Ltd and its subsidiaries. Together, the companies make up
LocalTapiola Asset Management Group, whose parent company is
LocalTapiola Asset Management Ltd.
On 31 December 2025, LocalTapiola Alternative Investment Funds Ltd was
merged to Seligson & Co Fund Management Company Plc. After the merger,
Seligson & Co Fund Management Company Plc manages LocalTapiola Asset
Management Group’s all funds. The concentration of the fund management
companies clarifies the operations of LocalTapiola Asset Management Group,
enabling services to be produced more efficiently.
Relating to the merger, the group has centralised activities, harmonised
processes and carried out system integrations. The measures support
LocalTapiola’s investment services growth strategy while enabling a stronger
focus on the development of customer experience and services.
In early 2025, LocalTapiola Asset Management Group published updated
climate strategy milestones for 2030. In autumn, the real estate division
prepared new goals for nature-related action and updated its climate goals.
LocalTapiola Asset Management Group’s operating result excluding
amortisation of goodwill on consolidation increased EUR 2.2 million year on
year, buoyed by favourable market developments. LocalTapiola Asset
Management Group’s turnover was EUR 62.5 million (EUR 60.0 million) and
operating result was EUR -0.5 million (EUR -2.7 million). Operating result
excluding amortisation of goodwill on consolidation was EUR 6.5 million (EUR
4.3 million).
In the equity market, 2025 was a strong year, as was 2024. A strengthening
of the global economic cycle, a slowdown in inflation and an easing of
monetary policy boosted investor risk appetite, which was reflected in a
broad-based rise in equity prices. In addition, credit risk rewarded investors,
and the returns on high-risk corporate bonds and emerging market fixed-
income investments, in particular, were exceptionally good. As a result of
positive developments, net commissions received by LocalTapiola Asset
LocalTapiola General | Report of the Board of Directors for 2025
7
Management Group from equity and fixed-income investment management
rose 5.0 per cent year on year.
Net commissions from real estate operations fell 1.7 per cent in 2025. During
2025, trading activity in the Finnish real estate market picked up significantly
compared with the previous year. There were no significant changes in the
yield requirements of properties during 2025. The LocalTapiola Group
companies did not make any new real estate investments during 2025. We
largely managed to maintain the occupancy rates for commercial properties
at a good level, and although the residential rental market remains
challenging, occupancy rates have in many areas improved as the demand–
supply balance has stabilised.
For private equity funds, the positive outlook seen at the beginning of 2025
faded with the introduction of Liberation Day tariffs. However, the
LocalTapiola private equity and private debt funds continued on the growth
path. The LocalTapiola Private Equity VI LP fund held its last closing in
November (EUR 428 million), and for the LocalTapiola Private Debt III LP fund,
investments were completed when the fund made its final investment in July.
LocalTapiola Asset Management Group’s net commissions from private
equity and private debt funds increased 25.1 per cent.
The (gross) assets under management by the LocalTapiola Asset
Management Group companies totalled EUR 35.2 billion (EUR 32.3 billion). Of
these, EUR 16.7 billion (EUR 15.2 billion) was in assets in portfolio
management, and EUR 14.3 billion (EUR 12.7 billion) was in fund capitals, EUR
1.5 billion (EUR 1.6 billion) in other contractually managed assets and EUR 2.8
billion (EUR 2.8 billion) in administered real estate.
2.5 Finance
2.5.1 Motor vehicle finance 
The year 2025 continued the strong development achieved in 2024. Despite
challenges in the business landscape both in the Finnish economy and in the
automotive market, our competitive position as a motor vehicle finance
company improved. Our market share of new sales increased, and the market
share of the financed vehicle stock also rose. Our position as the
second‑largest motor vehicle finance company in Finland strengthened during
2025, and our refinancing position is strong. We completed one public
securitisation transaction worth over EUR 575 million, and we have more than
EUR 1.3 billion in bilateral securitisation facilities with various banks. In
addition to securitisation and LocalTapiola Group, our funding sources
include bilateral loans, the commercial paper market and the green finance
bond market. In 2025, our receivables from customers increased to EUR 2.5
billion as profitability improved. Our operating result improved, soaring 28%
to EUR 17.1 million. The credit rating agency Standard & Poor’s maintained
LocalTapiola Finance Ltd’s credit rating unchanged at the ‘BBB’ level with a
stable outlook.
2.5.2 Corporate lending
LocalTapiola General is the company pursuing corporate lending activity at
LocalTapiola. In 2025, the corporate lending and real estate financing
portfolio remained qualitatively good. During 2025, the volume of corporate
lending increased slightly compared to the turn of the year, while real estate
financing volumes decreased as planned. Investments by businesses as well as
M&A activity picked up slightly compared with 2024, particularly towards the
end of 2025. In new real estate financing projects, we continued to take a
cautious approach, as in the two previous years. We mainly participated in
the refinancing of our existing real estate loans, while also financing a small
number of new real estate projects during 2025. LocalTapiola will continue
the cooperation with EU guarantee programmes, and in 2025 LocalTapiola’s
corporate client finance division still participated in two different guarantee
programmes that offer additional collateral for the finance provided to
corporate entities.
2.6 Ancillary activity
In the reporting year, the ancillary activity of the LocalTapiola Group
insurance companies included the marketing of services related to saving and
investment, finance services and insurance products. As ancillary activity, the
group’s insurance companies also engaged in marketing cooperation with
partners operating in the risk management and loss prevention sector.
Furthermore, companies belonging to LocalTapiola Group, including
LocalTapiola Remuneration Services Ltd, LocalTapiola Finance Ltd and
LocalTapiola Asset Management Group, used the organisation and
distribution channels of insurance companies to market their own products
and services.
2.7 Credit rating
The credit rating agency Standard & Poor’s has been performing a credit
rating evaluation on LocalTapiola Group since 2019.
Standard & Poor’s on 10 December 2025 confirmed LocalTapiola General’s
‘A’ rating with a stable outlook. This rating was affected by the group’s
strong solvency and good performance in recent years. The rating and the
outlook are equivalent to the previous rating in November 2024. Standard &
LocalTapiola General | Report of the Board of Directors for 2025
8
Poor’s believes that LocalTapiola will continue to maintain its leading position
on the Finnish insurance market.
3 Solvency and the risk position
At LocalTapiola Group, risk and prudential management is based on the risk
management policy and the prudential management principles, which are
confirmed annually at the group’s Boards of Directors. The purpose is to
ensure that the interests of policyholders, compensation recipients and other
beneficiaries are safeguarded while defining standard operating procedures
for risk and prudential management for LocalTapiola Group and its
companies. On the subject of risks and risk management, we have prepared a
note to these financial statements, which discusses, inter alia, the
organisation and responsibilities of risk management.
3.1 Prudential management
Prudential management is part of the risk management undertaken by the
group and its companies. The starting point for prudential management is
that the group and the companies have sufficient solvency capital to meet
their obligations, with due consideration of expected and unexpected losses.
It follows from operating as a group of mutual companies that prudential
management emphasises good solvency across the group and its companies,
so as to ensure the financial security of customers at all times.
LocalTapiola Group constitutes an insurance group within the meaning of the
Insurance Companies Act and an insurance and financial conglomerate within
the meaning of the Act on the Supervision of Financial and Insurance
Conglomerates. As the ultimate parent company, LocalTapiola General is
tasked with ensuring that the group and its companies fulfil the legal solvency
requirements. The solvencies of LocalTapiola Group and its insurance
companies are calculated by employing the Solvency II standard formula.
Solvency calculation does not fall within the remit of statutory audit.
A Joint Liability Agreement has been concluded between LocalTapiola
General and the regional companies with the aim of safeguarding the
solvency of the LocalTapiola Group companies. The Agreement defines the
policy and the decision-making procedures for the extraordinary situation
that the solvency of a group company is being or may be jeopardised.
According to the Agreement, LocalTapiola General and the regional
companies are obliged, where necessary, to capitalise another group
company, provided that the capitalising company’s own solvency is
sufficiently strong and will remain so after the capitalisation. The amount of
capitalisation to be provided under the Agreement is restricted in proportion
to the assets of the capitalising company.
The Joint Liability Agreement also contains terms whereby the solvency of
LocalTapiola Mutual Life Insurance Company and of the group’s asset
management companies (LocalTapiola Asset Management Ltd, LocalTapiola
Real Estate Asset Management Ltd, LocalTapiola Alternative Investment
Funds Ltd) can, where necessary, be supported under corresponding
principles, in proportions commensurate with the guarantee capital holdings
and share capital holdings. As applicable, the principles laid down in the Joint
Liability Agreement also apply to ensuring the solvency of LocalTapiola
Finance Ltd. However, these companies are not parties to the Joint Liability
Agreement, and consequently they cannot rely on the Agreement to demand
additional capitalisation.
The LocalTapiola Group non-life insurance companies are among the most
solvent companies in their sector in Finland, and currently the solvency of all
group companies is strong. More details about the group’s prudential
management are provided in the Solvency and Financial Condition Reports at
www.lahitapiola.fi/tietoa-lahitapiolasta/lahitapiola-ryhma/lahitapiola-
ryhman-raportit. The LocalTapiola Group report for 2025 will be published by
8 April 2026.
LocalTapiola General | Report of the Board of Directors for 2025
9
3.2 Solvency position
The solvency ratio of LocalTapiola General at the end of the financial year
(the company’s eligible own funds as compared to the Solvency Capital
Requirement) was 337 per cent (346%), while the solvency ratio of
LocalTapiola Group was 196 per cent (202%).
The solvency ratios of LocalTapiola Group and the non-life insurance
companies part of it mainly weakened during the financial year, nevertheless
remaining strong. An increase in the value of investment assets, and market
risk growth, particularly for equity and currency risk, increased the market-
risk capital requirement for several companies. For LocalTapiola General,
increased non-life insurance risk and market risk had an increasing impact on
the amount of the capital requirement.
Solvency position 2025
(% / EUR million)
Solvency ratio
Own funds
Solvency capital
requirement
LocalTapiola General
337%
2,693.1
800.1
Group's other non-life
insurance companies
271%
2,571.9
949.9
LocalTapiola Life
254%
1,464.9
577.8
LocalTapiola Group
196%
4,630.8
2,359.6
3.3 Risk position
The main risks to operations are insurance risks in the non-life insurance
business; insurance risks in the life insurance business; market risks associated
with investment activities; operational risks; and risks relating to the
operating environment and the strategy.
In the non-life insurance business, the main insurance risks relate to the
pricing and underwriting of insurance products, inflation, interest rate
fluctuations, mortality rate changes, occupational diseases, and reinsurance
covers.
In the life insurance business, the main insurance risks include risks associated
with technical provisions and the customer behaviour-related risks of
termination of contracts and interruption of the payment of premiums.
Market risk is caused by fluctuations in the market values of assets, including,
for example, fluctuation that is due to changes in interest rates, share prices
or foreign exchange rates.
Operational risk refers to the risk of loss resulting from inadequate or failed
internal processes, personnel, systems and external factors. Legal risks are
included in operational risks.
Operating environment and strategy risks include, for example, risks
associated with the general operating landscape; with changes in the markets
and in customer behaviour; with the competitive situation and competitors;
and with the content and implementation of the strategy.
On the basis of the group’s assessment model, the LocalTapiola Group
companies identify and assess risks on the basis of their likelihood and
potential impacts, defining responsible persons and scheduled management
actions for each risk. The Boards of the companies approve the risk
management plan, which includes a summary of the relevant company’s risk
appetite, risk tolerance based on various metrics, and risk assessment by risk
category. Furthermore, as part of the sustainability reporting process, we
implement a CSRD-compliant double materiality assessment that addresses
not only LocalTapiola Group’s impacts on the environment and society, but
also the financial effects, relating to sustainability topics, that impact the
activities of LocalTapiola Group. Sustainability reporting risk management is
described in this document in section ESRS 2 GOV-5 Risk management and
internal controls over sustainability reporting.
The financial sector is very dependent on the general economic landscape
and its development. According to forecasts by the Bank of Finland, Finland’s
recovery from the recession will be slow. According to the forecast (December
2025), Finland’s economy will grow by approximately 0.2% in 2025. Economic
recovery will be muted, with the development hindered in particular by trade
war escalation, general uncertainty in the global economy and a weak labour
market situation. Inflation is expected to remain moderate, while the increase
in prices will be slow. At the same time, general government finances will
remain in deficit, and the debt‑to‑GDP ratio will continue to rise due to
measures including tax cuts and higher defence spending. Increasing trade
and geopolitical tensions are weighing on global developments, and this has
also been felt in Finland. However, household incomes are rising, with the rate
of price increases remaining moderate. Falling borrowing rates will support
the recovery of consumption and investment. Public expenditures will
continue to exceed revenues, causing government indebtedness to increase
further.
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10
Geopolitical tensions in Ukraine, the Middle East and Greenland are
heightening uncertainty further in the global economy. In Finland, fiscal policy
tightening may weaken private consumption more strongly than expected in
the short term. In an economic recession, both individuals and businesses may
reduce insurance purchases to save costs. This can lead to a decrease in the
premiums written by insurers.
In the insurance sector, operating environment and strategy risks are
heightened by the concurrent uncertainty in the geopolitical and financial
landscape as well as by the ever-increasing pace of change in the operating
landscape: including digital transformation, consolidation, new types of
entities and consortia, demographic change, internationalisation and climate
change. Uncertainty in the operating landscape, and the materialisation of
different types of shock to the financial sector, expose the financial market
to sudden market swings. If materialised, negative asset price developments,
for example on the equity and bond markets, would increase the investment
losses of businesses. Furthermore, the situation in the real estate sector and
the construction industry remains difficult, which increases both credit risks
and risks related to the valuation of real estate investments. However, as we
move into early 2026, a clear recovery is expected in the property markets in
Finland and across the Nordic countries. The normalisation of interest rates,
easing inflation and cautious economic growth support a pick‑up in the
markets.
Over the longer term, financial sector entities will be challenged not only by
unstable economic conditions, but also by long-term trends including climate
change impacts and the measures aimed at preventing them; demographic
change; digitalisation; new technologies, products, policies and approaches;
and cyber risks. 
More details about LocalTapiola Group’s risk management and key risks are
provided in the risk management notes to the financial statements and in the
Solvency and Financial Condition Report at www.lahitapiola.fi/tietoa-
lahitapiolasta/lahitapiola-ryhma/lahitapiola-ryhman-raportit.
4 Events after the financial year 
According to a decision issued by the Financial Supervisory Authority, Turva
Mutual Insurance Company (business ID 0211695-5) will be included in the
Solvency II reporting of LocalTapiola Group and consolidated into the
consolidated financial statements of LocalTapiola General starting from the
financial year beginning on 1 January 2026.
5 Future prospects
5.1 Prospects for non-life insurance 
For non-life insurance, the prospects for 2026 are moderate. Economic
growth forecasts have been repeatedly downgraded, and modest growth is
expected for 2026.
The projected low inflation, stable interest rate environment and growth in
household purchasing power support moderate growth in the non-life
insurance market. Due to global uncertainty and a weak employment
situation, households are focusing on saving, and a significant recovery in
private consumption is unlikely. Both consumers and businesses are being
cautious in their purchasing decisions.
Investments by businesses will remain low overall, although production‑related
investments in the green transition, data centres and the defence industry will
bring some positive momentum to the national economy. Residential
construction has relied on public support, and the construction cycle remains
weak. Declining house prices are not a sign of improving prospects.
Significant risks continue to cloud the growth outlook. Geopolitical and
geoeconomic risks may lead to unpredictable market consequences. In the
financial sector, elevated equity market valuations increase the risk of a
major correction. If realised, risks related to data security and data
protection may also substantially weaken trust in insurance companies. Risks
associated with the use of artificial intelligence represent a new and
emerging area of risk.
In a tight economic environment, both households and businesses value
tangible financial benefits in insurance services. In non-life insurance, efforts
focus on competitive pricing and developing financial customer benefits.
In non-life insurance operations, investments in technological renewal are at
a high level. In addition to core system reforms, the aim is to improve
automation generally and explore experimental uses of artificial intelligence.
The benefits of AI are reflected more in companies’ increased internal
efficiency than as innovations that genuinely enhance customer experience.
LocalTapiola General | Report of the Board of Directors for 2025
11
In the automotive market, the persistently weak sales of new vehicles are
expected to see a slight upturn. Cost challenges in the public healthcare
system support demand for health insurance, although the strongest market
growth phase has already passed.
5.2 Prospects for life insurance
The long-term prospects are positive. LocalTapiola Life aims to make
preparing for the future through saving, insurance and investment easy
across all service channels. This objective is supported by the core system
reform launched in 2023.
Longer lives and the pressure on social security emphasise the importance of
individual arrangements. This increases demand for saving products and term
life insurance products alike, which lays a solid foundation for future growth.
5.3 Prospects for investment
The initial outlook for the 2026 investment year is fairly good. In the baseline
scenario, the economic cycle outlook and favourable corporate earnings
expectations support the equity markets. However, one of the key questions
for equity market performance is the future trajectory of the artificial
intelligence theme. A key risk for equity markets is related to elevated
valuations, as a result of which potential economic or earnings
disappointments could, in weaker scenarios, lead to a repricing of risks.
Political and geopolitical uncertainty also remains high, which may be
reflected in equity market developments.
For bond investments, the interest rate outlook in the euro area is relatively
clear. The European Central Bank has, for the time being, ended its rate cuts
and moved to a wait-and-see stance. A substantial decrease in short-term
rates is no longer in sight, although small movements remain possible. Also, a
significant decline in long-term euro area rates would require that the
economy recede. In the United States, there are more question marks
surrounding the Federal Reserve’s interest rate policy.  For corporate bonds,
yield levels remain reasonable as we head into 2026, but risk premiums of
corporate bonds have narrowed to historically tight levels. In the baseline
scenario, strengthening economic conditions support corporate earnings
performance and solvency, but there is limited room for a further tightening
of risk premiums.
In real estate investments, valuations have reached their bottom. The
markets are supported particularly by lower interest rates and an improving
economic cycle. However, the Finnish real estate market is recovering with a
delay compared to markets in Europe and the other Nordic countries.
Polarisation on the real estate markets continues, and investors, financiers
and users remain selective in their choices.
Overall, 2026 will be an interesting year on the investment market. Economic
prospects particularly in the United States are still positive and, following the
fiscal stimulus efforts led by Germany, euro area households are also
expected to recover. On the other hand, markets have yielded exceptional
returns over the past three years, and as a result some valuation levels have
already risen rather high particularly in the United States. Furthermore, the
profitability of artificial intelligence-related investments is surrounded by
significant risks. However, interest rate levels continue to be clearly positive,
which is why the return expectation for all investment assets is good.
Consequently, the building blocks are in place for a positive investment year.
In the light of these premises, the prospects for the investment activities of
LocalTapiola Group companies continue to be surrounded by an exceptionally
high degree of uncertainty. Investment income has a major impact on
insurers’ results. With its good solvency level and the investments made in
prudential management, LocalTapiola Group is well prepared for different
movements to take place on the investment market.
LocalTapiola General | Report of the Board of Directors for 2025
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6 Governance of LocalTapiola Group 
6.1 Structure of LocalTapiola Group
All LocalTapiola Group insurance companies, with the exception of one, are
mutual companies, owned by their policyholders and guarantee capital
owners. Finnish P&C Insurance Ltd is an exception to the mutual company
form. As the ultimate parent company of LocalTapiola Group, LocalTapiola
General prepares the consolidated financial statements, which consolidate
the LocalTapiola General group pursuant to the Accounting Act and the other
companies that, together with the LocalTapiola General group, constitute an
insurance group within the meaning of chapter 26, section 2 of the Insurance
Companies Act. LocalTapiola’s group-wide risk management reporting and
prudential reporting are based on the consolidated financial statements of
LocalTapiola Group. Although the financial statements are drawn up to cover
the entire insurance group as defined in the Insurance Companies Act, this
does not expand LocalTapiola General’s company-law group structure under
the Accounting Act.
The most notable companies consolidated into LocalTapiola Group are the 19
regional non-life insurance companies; Finnish P&C Insurance Ltd;
LocalTapiola Life and its group entities LocalTapiola Remuneration Services
Ltd and LocalTapiola Asset Management Ltd Group – comprising
LocalTapiola Real Estate Asset Management Ltd and Seligson & Co Fund
Management Company Plc; LocalTapiola Finance Ltd; LocalTapiola Services
Ltd; and Tieto-Tapiola Oy. Most of the other consolidated companies are
housing and real estate companies. Turva Mutual Insurance Company is a
LocalTapiola General subsidiary, of whose guarantee capital the LocalTapiola
Group companies own 76 per cent; yet, in accordance with a derogation
issued by the Financial Supervisory Authority that was effective until 31
December 2025, it is not consolidated into the consolidated financial
statements of LocalTapiola Group.
The LocalTapiola Group regional insurance companies
and their network of offices cover entire Finland
6.2 Governance of LocalTapiola Group
LocalTapiola Group and its companies adhere to good corporate governance
practices, which are based on insurance and financial sector legislation, the
regulations and guidelines issued by the Financial Supervisory Authority and
also, where applicable to mutual insurance companies, the Finnish Corporate
Governance Code for listed companies. LocalTapiola General provides a
LocalTapiola General | Report of the Board of Directors for 2025
13
governance statement in a document that is separate from the report of the
Board of Directors, in accordance with the recommendation laid down in the
Finnish Corporate Governance Code 2025. LocalTapiola General’s and
LocalTapiola Life’s corporate governance statement is available at
www.lahitapiola.fi/tietoa-lahitapiolasta/lahitapiola-ryhma/lahitapiola-
ryhman-raportit.
As the ultimate parent company of the insurance group, LocalTapiola General
has responsibility extending to entire LocalTapiola Group for the organisation
of reliable governance, prudential supervision, risk management, internal
control and related regulatory reporting within the group and its companies.
The LocalTapiola Group companies have concluded intragroup agreements
on their mutual responsibilities and division of duties.
6.2.1 Annual General Meeting
The Annual General Meeting of LocalTapiola General was held on 28 May
2025. The meeting approved the financial statements for 2024, decided on
the use of the company’s profit, discharged from liability the members of the
Supervisory Board and the Board of Directors as well as the Managing
Director and the temporary Managing Director, and elected the company’s
auditor and the sustainability reporting assurer. Furthermore, the meeting
confirmed the number and remuneration of the members of the Supervisory
Board, and elected the new Supervisory Board members.
6.2.2 Supervisory Board
At LocalTapiola Group, our governance model is strongly affected by the
mutual status of the group’s insurance companies, which means that
policyholders are owning members in the insurance companies. As there is
therefore a very large number of members, the Supervisory Boards, in
addition to the duties laid down for them in the Articles of Association, play a
major role in the corporate governance of the insurance companies and as a
channel for interaction between the companies and their members.
The salaries and commitments of the Supervisory Board are presented in the
note ‘Management salaries and remunerations, pension commitments,
monetary loans and terms thereof, as well as guarantees and contingent
liabilities’ to the profit and loss account.
6.2.2.1 Nomination Committee of the Supervisory
Board 
The purpose of the Nomination Committee of the Supervisory Board is to
ensure diversity and transparency in the preparation of appointment
proposals when electing members to the company’s Supervisory Board and
Board of Directors. The Nomination Committee drafts the proposals
regarding the selection of members to the Supervisory Board and to the
Board of Directors, with the exception of the Board Chair and Deputy Chair,
with regard to whom all selection proposals are drafted by the Cooperation
Committee of the LocalTapiola Supervisory Boards.
6.2.2.2 Cooperation Committee of the Supervisory
Boards
The Cooperation Committee of the Supervisory Boards of LocalTapiola
General and LocalTapiola Life drafts the decision proposals for the
Supervisory Boards, as well as preparing the other business on the agenda of
the meetings of the Supervisory Boards. The Cooperation Committee
oversees the work of the Boards of Directors, President, Managing Directors
and the entire group, reporting on it to the Supervisory Boards.
By virtue of the authorisation given to it by the Supervisory Boards, the
Cooperation Committee takes decisions on the pay and remuneration of the
LocalTapiola Group President, who chairs the Board of Directors, as well as on
the pay and remuneration of the full-time members of the Boards of
Directors. Decisions on the remuneration of non-full-time members of the
Board of Directors are taken by the Supervisory Board.
6.2.3 Board of Directors
The Board of Directors is in charge of the governance of LocalTapiola
General, and it ensures the appropriate organisation and control of activities,
accounts and asset management.
The composition of the Board of Directors in the 1 January 2025–31
December 2025 financial year is discussed in the sustainability statement in 
section 7.1.2 ESRS 2 GOV Governance.
The salaries and commitments of the Board of Directors are presented in the
note ‘Management salaries and remunerations, pension commitments,
monetary loans and terms thereof, as well as guarantees and contingent
liabilities’ to the profit and loss account.
6.2.3.1 Committees of the Boards of Directors of
LocalTapiola General and LocalTapiola Life
The committees assisting the Boards of Directors of LocalTapiola General
and LocalTapiola Life – the Audit and Risk Management Committee, the
Human Resources and Compensation Committee and the Investment and
ALM Committee – are discussed in the sustainability statement in section
7.1.2 ESRS 2 GOV Governance.
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14
6.2.4 Group’s Management Group
LocalTapiola Group has a Group’s Management Group that is appointed by
the Board of Directors of LocalTapiola General. The Management Group has
broad representation from the various LocalTapiola Group companies and
from the responsible managers of the most important group-level functions.
The Group’s Management Group is responsible for preparing strategic and
other group-wide matters of LocalTapiola Group, for related decision-making
and implementation, and for the overall control and development of the
group, within the authorisations granted to it by the Board of Directors and
set out in the Joint Agreement concluded between the LocalTapiola Group
companies.
The Management Group was chaired by LocalTapiola Services Ltd Managing
Director Pekka Antikainen, and the members were the managers of the
group’s shared functions, Jari Eklund, Vesa-Matti Kultanen and Esa Tihilä,
and temporary LocalTapiola General Managing Director Mika Makkonen until
31 July 2025, and LocalTapiola General Managing Director Antti Pulkkanen
from 1 August 2025, Pasi Haarala (LocalTapiola Life), Olli Aakula
(LocalTapiola Varsinais-Suomi), Kari Salmela (LocalTapiola Lappi), Asko
Lammela (LocalTapiola Savo-Karjala), Kristian Nygren (LocalTapiola
Etelärannikko) and Teemu Toivanen (LocalTapiola Keski-Suomi) until 31
January 2025 and Teemu Routti (LocalTapiola Kaakkois-Suomi) from 1
February 2025.
6.2.5 Managing Director
Until 31 July 2025, Mika Makkonen (LL.M., MBA) served as the temporary
Managing Director of LocalTapiola General, and Antti Pulkkanen (Master of
Science in Technology [Industrial Engineering and Management]) served as
Managing Director beginning on 1 August 2025.
The salaries and commitments of the Managing Director and the temporary
Managing Director are presented in the note ‘Management salaries and
remunerations, pension commitments, monetary loans and terms thereof, as
well as guarantees and contingent liabilities’ to the profit and loss account.
6.2.6 Auditor and the sustainability statement
auditor
The Annual General Meeting elected KPMG Oy Ab to continue as
LocalTapiola General’s auditor and to act as the sustainability statement
auditor, with Timo Nummi (Authorised Public Accountant, Authorised
Sustainability Auditor) acting as the principal auditor and sustainability
reporting auditor appointed by KPMG Oy Ab.
6.2.7 Supervisory authority
LocalTapiola General is a non-life insurance company subject to public
supervision by the Financial Supervisory Authority (FIN-FSA). The FIN-FSA
supervises and ensures that insurance institutions comply with the law and
good insurance practice, and that they employ appropriate methods in their
operations. It monitors and assesses the financial position of the companies
that it supervises, as well as monitoring and assessing the management,
supervision and risk management systems, operating prerequisites and
changes in the operating landscape of these companies.
6.2.8 Related parties
The related parties of LocalTapiola General are discussed in the notes to the
financial statements.
6.3 Personnel and remuneration
The total number of full-time equivalent personnel at LocalTapiola Group
averaged 4,035 (3,996), of which 409 (355) at LocalTapiola General.
Incentive payment schemes form an integral part of the special remuneration
scheme of LocalTapiola Group, and their aim is to support the achievement
of strategic and operative goals by incentivising and committing personnel.
Incentive payment schemes comprise annual performance reward schemes
and senior management’s long-term incentive payment scheme. When
confirming the special remuneration scheme, efforts are made to ensure that
the scheme is aligned with the business strategy, targets and values of the
company and of LocalTapiola Group and that it works in the long-term
interests of the group. The special remuneration scheme is in harmony with
the group’s good and effective risk management and does not encourage
excessive risk-taking.
The management’s annual bonus is based on elements that affect the group’s
and the companies’ results, as well as on employee experience, customer
experience, sustainability and the targets of each bonus recipient’s own
business unit and duties. Primarily, the indicators are based on official key
figures. The targets are derived from the group’s strategy, and they can be
either group-specific or company-specific. The management’s long-term
incentive bonus is based on the strategic objectives determined for the result
of the group, measured over a period of several years. Personnel at the
investment organisations have in place their own incentive payment model,
whereby their bonus is determined on the basis of the following factors:
elements that affect the companies’ results; sustainability; personnel
experience and customer experience; and investment income calculated from
LocalTapiola General | Report of the Board of Directors for 2025
15
different levels. The incentive of those working in control functions that are
independent of the business functions is mainly determined on the basis of
achievement of the objectives defined for control, and it must not be
dependent on the result of the business unit controlled. In addition, a profit
bonus item, specified on the basis of achieved targets, is annually transferred
to the personnel funds of LocalTapiola Group. This bonus item is determined
on the basis of targets derived from the strategy. The personnel funds do not
cover the employees of all companies. The criteria for determining the profit
bonus are confirmed each year. Profit bonus transfers are deducted in
accordance with preliminary estimates from the results of the relevant
financial years.
The retirement age of the senior management of LocalTapiola General is
determined on the basis of employee pension legislation, unless a retirement
age of 63 years is specifically agreed. LocalTapiola General has taken out
supplementary pension insurance cover for its employees, which improves
their pension cover. All those whose employment relationship with the group
commenced before 1 January 2013 are covered by this benefit. Employment
relationships that have commenced after this date are not eligible for the
supplementary pension benefit. In addition, LocalTapiola General has taken
out defined-contribution supplementary pension insurance cover for persons
with an agreed retirement age that deviates from the statutory retirement
age. The pension payable is based on the contributions paid by the employer
and on the interest income accruing on them.
The salaries and other short-term benefits paid to the members of the Board
of Directors and to the Managing Director and the temporary Managing
Director during the 2025 financial year are shown in the notes to the financial
statements. In addition, more details about them and the remuneration
principles are provided in the remuneration report at www.lahitapiola.fi/
tietoa-lahitapiolasta/lahitapiola-ryhma/lahitapiola-ryhman-raportit.
LocalTapiola General | Report of the Board of Directors for 2025
16
7 Sustainability statement
7.1 ESRS 2 General disclosures
IRO-2, 56
Starting in 2024, we have reported the sustainability statement of
LocalTapiola Group as part of the Report of the Board of Directors. The
LocalTapiola Group 2025 sustainability statement is based on the material
sustainability topics, selected on the basis of a double materiality assessment,
that the Board of LocalTapiola General approved in June 2025.
E1 Climate change
In the 2024 sustainability statement, we announced an effort to prepare a
sustainability reporting standard-compliant transition plan during 2025. In
2025, we initiated the harmonisation of climate goals into group-wide goals,
but we have not yet prepared a transition plan. In 2025, we updated 2024 as
the new baseline year for GHG emissions, and retrospectively revised the
2024 emission calculation. As a new topic, in section E1-7 GHG removals and
GHG mitigation projects financed through carbon credits, we report on the
carbon offset credits that we have acquired as a group.
S1 Own workforce
As new dimensions, we report sections S1-8 Collective bargaining coverage
and social dialogue, and S1-16 Remuneration metrics (pay gap and total
remuneration). In terms of employee experience, our aim for 2025 was to
attain the AAA level, but AA was the actual level realised. In addition, we
deployed a new HR and training system.
S4 Consumers and end-users
We added a new reported sustainability topic, section S4 Consumers and
end-users, in relation to which we describe our policies, contact with
customers, processes, and measures in relation to identified impacts, and our
objectives. Customer encounter NPS is the metric we use to measure
LocalTapiola Group’s strategic objective ‘The best service in the sector
personally, locally and by digital means’. Our metrics target for 2025 was 66,
with 65 the actual figure realised.
G1 Business conduct
We updated our Partner Code of Conduct and created a whistleblowing
channel policy. For 2025, we do not report the completion figures for the
Code of Conduct course, for reporting is not possible due to a training system
switch.
On the LocalTapiola website, LocalTapiola Group will also publish a
Sustainability Report on the data concerning the 2025 financial year.
In the following table, we have compiled the table of contents of the
LocalTapiola Group sustainability statement, and in the table, we also
present the sustainability reporting standard acronyms that we use in the
sustainability statement.
Reported disclosure requirements
Disclosure Requirement
Page
BP-1 – General basis for preparation of the CSRD report
BP-2 – Disclosures in relation to specific circumstances
GOV-1 – The role of the administrative, management and supervisory
bodies
GOV-2 – Information provided to and sustainability matters
addressed by the undertaking’s administrative, management and
supervisory bodies
GOV-3 – Integration of sustainability-related performance in
incentive schemes
GOV-4 – Statement on due diligence
GOV-5 – Risk management and internal controls over sustainability
reporting
SBM-1 – Strategy, business model and value chain
SBM-2 – Interests and views of stakeholders
SBM-3 – Material impacts, risks and opportunities and their
interaction with strategy and business model
IRO-1 – Description of the process to identify and assess material
impacts, risks and opportunities
IRO-2 – Disclosure Requirements in ESRS covered by the undertaking’s
sustainability statements
MDR-P – Policies adopted to manage material sustainability matters
MDR-A – Actions and resources in relation to material sustainability
matters
61, 86, 94, 99
MDR-M – Metrics in relation to material sustainability matters
63, 70, 72, 81,
86, 89, 89,
95, 96, 99
MDR-T – Tracking effectiveness of policies and actions through
targets
63, 86, 95, 96,
99
E1-1 – Transition plan for climate change mitigation
E1-2 – Policies related to climate change mitigation and adaptation
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17
Reported disclosure requirements
Disclosure Requirement
Page
E1-3 – Actions and resources in relation to climate change policies
E1-4 – Targets related to climate change mitigation and adaptation
E1-5 – Energy consumption and mix
E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions
E1-7 – GHG removals and GHG mitigation projects financed through
carbon credits
E1-8 – Internal carbon pricing
S1-1 – Policies related to own workforce
S1-2 – Processes for engaging with own workers and workers’
representatives about impacts
S1-3 – Processes to remediate negative impacts and channels for own
workers to raise concerns
S1-4 – Taking action on material impacts and approaches to
mitigating material risks and pursuing material opportunities related
to own workforce, and effectiveness of those actions and approaches
S1-5 – Targets related to managing material impacts, advancing
positive impacts, as well as to risks and opportunities
S1-6 – Characteristics of the Undertaking’s Employees
S1-8 – Collective bargaining coverage and social dialogue
S1-11 – Social protection
S1-13 – Training and Skills Development metrics
S1-14 – Health and safety metrics
S1-15 – Work-life balance metrics
S1-16 – Remuneration metrics (pay gap and total remuneration)
S1-17 – Incidents, complaints and severe human rights impacts
S4-1 – Policies related to consumers and end-users
S4-2 – Processes for engaging with consumers and end-users about
impacts
S4-3 – Processes to remediate negative impacts and channels for
consumers and end-users to raise concerns
S4-4 – Taking action on material impacts on consumers and end-
users, and approaches to managing material risks and pursuing
material opportunities related to consumers and end-users, and
effectiveness of those actions
Reported disclosure requirements
Disclosure Requirement
Page
S4-5 – Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities
G1-1 – Corporate culture and business conduct policies and corporate
culture
G1-2 – Management of relationships with suppliers
G1-3 – Prevention and detection of corruption and bribery
G1-4 – Confirmed incidents of corruption or bribery
ESRS acronyms
Acronym
English term
ESRS
European sustainability reporting standards
BP
Basis of preparation
GOV
Governance
SBM
Strategy, business model and value chain
IRO
Impacts, risks and opportunities
MDR
Minumum disclosure requirements
P
Policy
A
Actions
M
Metrics
T
Targets
LocalTapiola General | Report of the Board of Directors for 2025
18
7.1.1 ESRS 2 BP Principles for preparation
7.1.1.1 ESRS BP-1 General basis for preparation of the
sustainability statement
BP-1, 5
We prepare the LocalTapiola Group sustainability statement in accordance
with the requirements laid down in the Accounting Act (1336/1997) for the
preparation and presentation of sustainability information. We report the
information required by the European Sustainability Reporting Standard
(ESRS) and the Commission Delegated Regulations on the EU classification
system for sustainable activities (taxonomy) in the scope of the consolidated
financial statements of LocalTapiola Group. The accounting principles of the
consolidated financial statements of LocalTapiola Group are discussed in
further detail in the financial statements as part of section  11.1 Composition
of LocalTapiola Group Any exceptions to the scope or coverage of
sustainability reporting are mentioned separately in the context of the
Disclosure Requirements in question. The companies consolidated into the
consolidated financial statements of LocalTapiola Group are not obligated to
submit sustainability reporting in 2025. Our double materiality assessment in
the sustainability statement covers only the main business relationships in the
upstream and downstream value chain, as well as the material available
information for the upstream and downstream value chain. We have not
omitted any information corresponding to intellectual property, know-how or
the results of innovation.
7.1.1.2 ESRS BP-2 Disclosures in relation to specific
circumstances
BP-1, 10; BP-2, 13
We have made changes to the GHG emissions calculation compared with last
year’s statement, which can be found in section E1-6 Gross Scopes 1, 2, 3 and
Total GHG emissions. As a new dimension, in Scope 2 calculation, we have
included the real estate division’s cold sites where tenants are responsible for
the electricity contract. In Scope 3 category 15, we have introduced GHG
emissions from sovereign bonds and those associated with commercial lines
portfolios. Furthermore, we have transferred emissions from financed vehicles
from Scope 3 category 11 to category 15, and updated the calculation
methodology for financed cars.
Due to the above changes, the emission figures published in the 2024
sustainability statement are not comparable. We have retrospectively re-
calculated the GHG emissions for 2024 by applying the 2025 methodology in
order to ensure comparability. Starting from 2025, in the total emissions
table, we use 2024 as the baseline year, instead of 2021. As a result of the
retroactively updated calculations, total location-based GHG emissions for
2024 increased 279,949 tCO2e, and market-based GHG emissions increased
285,972 tCO2e.
7.1.2 ESRS 2 GOV Governance
7.1.2.1 ESRS 2 GOV-1 The role of the administrative,
management and supervisory bodies
GOV-1, 21; GOV-1, 22; GOV-1, 23
As the insurance group’s ultimate parent company within the meaning of the
Insurance Companies Act, LocalTapiola General is responsible that the
governance system of the group complies with the statutory requirements
and that the functions of the governance system, and prudential supervision
and reporting, are organised lawfully and in a consistent manner across all
group companies. As the ultimate parent company of the insurance group,
LocalTapiola General prepares the sustainability statement of LocalTapiola
Group.
The Board of Directors of LocalTapiola General manages LocalTapiola
General professionally and in compliance with sound and prudent business
practices and reliable-governance principles and regulations. It is in charge of
the governance of LocalTapiola General, and ensures the appropriate
organisation and control of activities, accounts and asset management. The
Boards of LocalTapiola General and LocalTapiola Life are assisted by joint
board committees. 
The Audit and Risk Management Committee assists the Boards of
LocalTapiola General and LocalTapiola Life in matters of finance, accounting,
solvency, risk management, audit, internal control and internal audit. As part
of financial reporting, the Committee monitors and evaluates the
sustainability reporting of LocalTapiola Group and its development. The
Committee directs senior management in the control and monitoring of
sustainability goals, and with respect to the content of the sustainability
statement to be submitted to the Boards for consideration. The Board makes
the decisions relating to sustainability reporting, and controls the
achievement of the sustainability goals. Furthermore, the Audit and Risk
Management Committee presents to the Boards the results from the audit
and from the assurance of sustainability reporting, as well as its view on the
LocalTapiola General | Report of the Board of Directors for 2025
19
reliability of reporting and on its own role in the assurance of the audit
process and sustainability reporting. 
The Human Resources and Compensation Committee assists the Boards of
LocalTapiola General and LocalTapiola Life in the examination of matters
that concern human resources and compensation. In addition, the Committee
assists LocalTapiola General and LocalTapiola Life in formulating policy with
regard to their human resources and compensation matters which, according
to the Joint Agreement, fall under the common matters of LocalTapiola
Group. Inter alia, the Committee monitors and assesses leadership,
management, supervisory work and the state and development of the
corporate culture and staff satisfaction, and for its part drafts the Human
Resources Strategy and the key policies and guidelines concerning the status
and treatment of staff for the consideration of the Board.
The Investment and ALM Committee assists the Boards of LocalTapiola
General and LocalTapiola Life with the statutory matters, and the matters
provided for in the rules of procedure, that concern prudential supervision
and the appropriate organisation of asset management. Inter alia, the
Committee monitors and assesses the implementation and promotion of a
responsible corporate culture in investment activities and how climate
change-related targets are addressed in investment choices.
By examining the reports determined in its annual wheel and provided for in
its rules of procedure, the Board of LocalTapiola General seeks to efficiently
ascertain that the operational management of LocalTapiola General and
LocalTapiola Group carries out the sustainability goal actions and reports on
them appropriately to the Board. The regularly examined reports include: risk
management reports, the ORSA report, the group’s voluntary Sustainability
Report, investment activity reports, the HR report, the report on the
functioning of the governance system, the Data Protection Annual Report
and reports illustrating the implementation of the group strategy. In 2025, we
specified the group-wide and company-wide roles and responsibilities of the
insurance companies’ governance system, increased resources for key
functions and developed the reporting and oversight of these functions. 
The Board of LocalTapiola General is composed of eight members. The
position of Board Chair is a full-time position, and it is discharged by the
LocalTapiola Group President. The position of Board Deputy Chair has also
been discharged by a full-time executive person of LocalTapiola Group who
works under a contract of service with the group. The remaining six members
are independent of the executive management of LocalTapiola Group, two of
whom have been selected from amongst candidates put forward by the
LocalTapiola Group regional non-life insurance companies in order to ensure
geographically comprehensive representation of owner-customers on the
Board. No employee representatives sit on the Board. Instead, employees are
represented in governance through Supervisory Board membership. In
accordance with the regulations of the Financial Supervisory Authority,
professional skills, competencies and experience from the following sectors
are collectively represented on the Board of LocalTapiola General: the
insurance and financial markets, business strategy and business model,
governance system, financial analysis, actuarial analysis, and regulation and
the requirements it imposes on insurance activities. Furthermore, the
composition of the Board takes into account experience and competencies in
overall leadership and change management, strategic planning capacity,
customer account management, digitalisation and sustainability. In order to
promote diversity in the composition of the Board, the Board has a balanced
representation of both sexes and persons of different ages and with a range
of experiences and educational backgrounds. The responsibility of the Board
is collective regardless of the fact that individual Board members have
complementary competencies relating to the activities of LocalTapiola
Group, in accordance with official regulations and the skills profile targets of
the Board.
On the last day of the financial year, 75 per cent of the Board members were
independent of LocalTapiola Group, and 50 per cent of the Board members
were male and 50 per cent were female.
LocalTapiola General Board members in  2025
• Board Chair Sari Heinonen, born 1976, D.Sc. (Econ.), President, from 1 May
2025
• Deputy Chair Jari Eklund, born 1963, M.Sc. (Econ.), Group Director,
LocalTapiola Group, Board Chair until 30 April 2025
• Eeva Ahdekivi, born 1966, M.Sc. (Econ.), DBA, board professional
• Birgitta Forsström, born 1973, PhD (Econ.), CEO, Brita Maria Renlund
Commemorative Foundation
• Olli Holmström, born 1960, MTh, board professional
• Ulla-Maija Moisio, born 1962, Master of Laws, trained on the bench,
varatuomari, Senior Vice President, Legal Affairs, Industrial Power
Corporation
• Jussi Tolvanen, born 1978, M.Sc. (Econ.), CEO, DNA Plc
• Timo Vuorinen, born 1964, Master of Laws, board professional
LocalTapiola General | Report of the Board of Directors for 2025
20
The Audit and Risk Management Committee consists of members of the
Boards of LocalTapiola General and LocalTapiola Life who are independent of
LocalTapiola Group. The Committee reports to the Boards of these
companies. In 2025, Ulla-Maija Moisio (Chair of the Audit and Risk
Management Committee) and Timo Vuorinen were the LocalTapiola General
Board members who sat on the Audit and Risk Management Committee.
The Human Resources and Compensation Committee is made up of Sari
Heinonen, President of LocalTapiola Group and Chair of the Board of
LocalTapiola General, who chairs the Committee, and two to four members of
the Board of LocalTapiola General and LocalTapiola Life who are
independent of LocalTapiola Group. The Committee reports to the Boards of
these companies. In 2025, Jussi Tolvanen and Birgitta Forsström were the
LocalTapiola General Board members who sat on the Human Resources and
Compensation Committee.
The Investment and ALM Committee comprises Jari Eklund, Deputy Chair of
the Board of LocalTapiola General, who chairs the Committee, and two Board
members from LocalTapiola General and two from LocalTapiola Life who are
independent of LocalTapiola Group. The Committee reports to the Boards of
these companies. In 2025, Eeva Ahdekivi and Timo Vuorinen were the
LocalTapiola General Board members who sat on the Investment and ALM
Committee.
Before the opinion of the auditor of the Report of the Board of Directors and
the financial statements and the opinion of the sustainability statement
auditor, the Board of LocalTapiola General signs the sustainability statement
as part of the Report of the Board of Directors, and for its part ensures the
accuracy and adequacy of the content of the sustainability statement. The
Board and its Audit and Risk Management Committee assess the
competences and expertise of the corporate group’s management in
sustainability-relevant issues regularly as part of examinations of the
sustainability statement and in connection with the Sustainability Report that
is examined annually by the Board. Furthermore, requirements concerning
competences and expertise are examined as part of the company’s and the
group’s annual ORSA policy debate, report and control, and when evaluating
the implementation, timeliness and change needs of policies related to
sustainability matters.
Where necessary, the Board guides senior management on increasing the
competence and expertise related to material sustainability impacts, and on
improving management or staff competences. The Audit and Risk
Management Committee plays a key role in guiding and monitoring the
sustainability statement processes and content. The Board of LocalTapiola
General and its Audit and Risk Management Committee both have an
opportunity to use independent external specialists to support their own
assessment and the increasing of their competencies, and to support the
auditing of the achievement of sustainability requirements.
In the group’s risk management processes, we also take into account the
material sustainability reporting impacts, risks and opportunities identified in
the double materiality assessment. The material impacts, risks and
opportunities are described in further detail in section SBM-3 Material
impacts, risks and opportunities and their interaction with strategy and
business model.
Annually, in spring, the Board of LocalTapiola General conducts a policy
debate on the statutory risk and solvency assessment (ORSA) of LocalTapiola
Group. The Board instructs senior management and the group’s risk
management function on the selection of risks and scenarios. The ORSA
report contains, inter alia, the conclusions of LocalTapiola Group’s risk
assessment, risk scenario reviews, the solvency and risk position, and
information on the organisation and assessment of risk management. The
Board-approved ORSA report will be sent to the Financial Supervisory
Authority. In autumn, the Board examines the situational picture in order to
ensure that the criteria of the ORSA report continue to be up to date and
adequate. The responsibility for preparing, implementing and monitoring the
ORSA report rests with the Managing Director and other management of
each company. The group’s risk management function supports the company
in the preparation of the report. Reporting to LocalTapiola General, the Risk
Management Committee has representation not only from the Managing
Directors and risk management representatives of the group companies, but
also from the directors responsible for finance, information technology and
the actuarial and compliance function.
7.1.2.2 ESRS 2 GOV-2 Information provided to and
sustainability matters addressed by the undertaking’s
administrative, management and supervisory bodies
GOV-2, 26
Risk Management Services produce to the Board the material for the
following: the ORSA policy debate of LocalTapiola Group and LocalTapiola
General conducted every spring; the examination of the ORSA report
confirmed before summer; and the ORSA monitoring undertaken in late
autumn. Twice a year, the Board examines the progress made with the
implementation of the LocalTapiola sustainability programme. Annually in
late spring, the Board of LocalTapiola General examines the key corporate
LocalTapiola General | Report of the Board of Directors for 2025
21
group-wide and company-wide policies, and assesses their timeliness,
functioning and adequacy. These policies include the Climate Policy, the
Human Rights Policy, the Tax Policy, the statutory governance policies, and
the Code of Conduct that applies to the group’s own operations. In autumn
2025, the Board of LocalTapiola General adopted the group’s updated
Partner Code of Conduct. The LocalTapiola Group Partner Code of Conduct
describes the approaches to which LocalTapiola requires its partners to
commit. The content of the Partner Code of Conduct was expanded and
specified, and it was updated to better meet regulatory requirements.
Twice a year, Human Resources Services produces to the Board a human
resources report, which takes into account goals related to material
sustainability topic ‘S1 Own workforce’ and the monitoring of their
implementation. Furthermore, on a proposal from Human Resources Services,
on the basis of a strategy report presented to the Board annually, the Board
confirms the LocalTapiola Group Human Resources Strategy and monitors
how the strategy is implemented.
At its 2025 meetings, the Audit and Risk Management Committee regularly
examined sustainability reporting. In June, the Audit and Risk Management
Committee’s meeting examined the updated sustainability reporting double
materiality assessment and the scope of the 2025 sustainability statement. In
June, the Board of LocalTapiola General approved the material sustainability
topics to be reported in the LocalTapiola Group sustainability statement, as
well as the scope of the sustainability statement. 
On a regular basis, the Board of LocalTapiola General examines reports and
reviews, presented by the management of LocalTapiola General and
LocalTapiola Group, that involve material sustainability factors. Reports and
reviews provide the Board with information about material sustainability
impacts, risks and opportunities while reinforcing and ensuring the Board’s
competency with regard to sustainability matters. In addition to actual
sustainability-related reports, sustainability factors are included, inter alia, in
regular risk management, compliance function, data protection, HR
management and investment reports.
During 2025, at its meetings, the Board of LocalTapiola General examined
the following sustainability issues in particular:
• LocalTapiola Group Sustainability Report 2024 and the material
sustainability topics
• Sustainability and advocacy review
• LocalTapiola Group insurance companies’ principles for responsible
investment, and their annual performance reporting
• LocalTapiola General’s principles for responsible investment and
corporate governance principles
• HR Strategy priorities, and the HR Strategy performance report incl.
results of the personnel satisfaction survey
• Evaluations by the Financial Supervisory Authority and an external
party on the functioning and adequacy of the governance system of
LocalTapiola Group, and the development measures decided on their
basis and the monitoring of these measures
• Donations from the contingency reserve: supporting the climate
programme
• Sustainability statement materiality assessment
• Reformed LocalTapiola Partner Code of Conduct
• Sustainability review, and the 2026 matching-funding topics for
donations to be made from the contingency reserve
• Flood extension for corporate insurance policies
• Sustainability reporting monitoring report
• Sustainability goals 2026
• Draft sustainability statement
• LocalTapiola Group’s transition plan for climate change mitigation
How material sustainability impacts, risks and opportunities are addressed in
the monitoring of the implementation of the strategy and in risk
management and major business decisions will develop as sustainability
impacts are integrated more broadly in the strategy, business plans and risk
management as well as in related reporting. The aim is to be able to integrate
sustainability goals in the group’s regular plans and processes.
LocalTapiola General | Report of the Board of Directors for 2025
22
7.1.2.3 ESRS 2 GOV-3 Integration of sustainability-
related performance in incentive schemes
GOV-3, 29
From the beginning of 2025, a sustainability indicator combining three
components was added to the remuneration of the Board members who work
under a contract of service with LocalTapiola Group. The three dimensions of
this composite indicator are: the image Finns have of LocalTapiola as a
proactive insurer (measured as part of the group’s annual B2C brand
monitoring); the own operations climate goal of LocalTapiola Group and its
companies; and the ROIHU employee survey Sustainability Index, which
gauges the staff’s experience about how well equality, diversity, inclusion and
occupational wellbeing are achieved in work communities. All three
dimensions of the sustainability indicator are linked to the goals set out in the
LocalTapiola Group sustainability programme.
The remuneration principles of the management of LocalTapiola Group, and
the bases, targets and indicators of their performance-related bonuses, are
decided by companies’ Boards. In the annual bonus scheme of the Board
members who work under a contract of service, the remuneration
sustainability indicator carries a weight of ten per cent. The sustainability
indicator is also employed for other members of the senior management of
the group companies operating in Espoo, and a recommendation to use the
indicator has been given to the group’s regional companies and LocalTapiola
Finance. Asset Management Group uses its own sustainability indicators in
remuneration.
7.1.2.4 ESRS 2 GOV-4 Statement on sustainability
due diligence
GOV-4, 30; GOV-4, 32
In the following table, we present the main components of the sustainability
due diligence process in our sustainability statement and the sections in
which they appear in the sustainability statement.
Core elements of due
diligence 
Sections in the Sustainability
statement
Page
a) Embedding due diligence
in governance, strategy and
business model 
ESRS 2 GOV-2
ESRS 2 GOV-3
ESRS 2 SBM-3
b) Engaging with affected
stakeholders in all key steps
of the due diligence 
ESRS 2 GOV-2
ESRS 2 SBM-2
ESRS 2 IRO-1
ESRS 2 MDR-P
The phases and purposes of stakeholder
engagement in the topical standards
63, 86, 95, 96,
99
c) Identifying and assessing
adverse impacts 
ESRS 2 IRO-1
ESRS 2 SBM-3
d) Taking actions to address
those adverse impacts 
Efforts to influence the impacts
61, 86, 94, 99
e) Tracking the effectiveness
of these efforts and
communicating 
Topical standards that deal with the
metrics and objectives
63, 70, 72, 81,
86, 89, 89,
95, 96, 99
7.1.2.5 ESRS 2 GOV-5 Risk management and
internal controls over sustainability reporting
GOV-5, 36
In 2025, we carried out expert work to update the identification and
assessment of risks to the sustainability reporting process. In the assessment
of risks, we employed the risk assessment model of LocalTapiola Group, under
which risk is assessed on the basis of likelihood and potential impacts.
Furthermore, a responsible person and scheduled management actions are
defined for each risk.
In their progress reviews, the LocalTapiola Group sustainability reporting
project Steering Group and the Audit and Risk Management Committee of
the Board of Directors of LocalTapiola General examine the main risks of the
sustainability reporting process risk assessment. We update the risks regularly
on an annual basis.
The main risks of the sustainability reporting process risk survey are
associated with the ambiguity of reporting requirements and the backup
personnel arrangements of information producers. The ambiguity of
sustainability reporting standards may lead to incomplete or incorrect
reporting, but the likelihood of this risk has diminished from the previous year
due to published sustainability statements. We manage this risk by ensuring
LocalTapiola General | Report of the Board of Directors for 2025
23
sufficient expert resources and taking advantage of external expertise in
interpreting reporting requirements. As for the risk associated with backup
personnel arrangements, we manage it by adequate resources.
Internal control of the reporting process is based on set timetables and on
monitoring the tasks for which the information producers are responsible.
Control is supported by the information system used in the sustainability
reporting process, which allows us to monitor the progress of tasks and the
quality and adequacy of the information produced. The continuity of
information production is secured by process descriptions compiled by
information producers containing, inter alia, information on the sources of
the reported information, on the information collection process and on the
control measures by which the accuracy and adequacy of information are
ensured.
LocalTapiola General | Report of the Board of Directors for 2025
24
7.1.3 ESRS 2 SBM Strategy
7.1.3.1 ESRS 2 SBM-1 Strategy, business model and value
chain
SBM-1, 40; SBM-1, 42
LocalTapiola Group is a corporate group serving private, farm, entrepreneur,
corporate and institutional customers and clients. The mutual insurance
companies of the group have as their purpose to generate financial benefit
for their members, who consist of policyholders and owners of guarantee
shares. Relying on multichannel services, we operate on the basis of a local
service network covering entire Finland that is close to customers. Our
products and services protect health, finances and property, adapting to
each customer’s unique situation. Our voluntary and statutory non-life
insurance products cover people, property and business against risks, while
our personal insurance and health insurance products and related services
support health and wellbeing. Furthermore, by delivering solutions for asset
management, saving, finance and life insurance, we also help our customers
and clients increase their wealth and prepare financially for the future. And
not just that: we also produce real estate investment and management
services. All our operations aim at excellent customer satisfaction, controlled
growth and long-term sustainable success.
For LocalTapiola, sustainability is an essential enabler of profitable and long-
term business operations. To improve our sustainability impact is one of the
five objectives set out for the LocalTapiola 2022–2026 strategy period. We
want to be a pioneer in impactful sustainability in our sector, across Finland.
At LocalTapiola Group, sustainability work is guided by the group strategy
and the Owner Intent. The LocalTapiola sustainability programme 2022–2026
defines the group’s common sustainability goals and key actions. We want to
be the most impactful partner in preventing evolving risks and to step up the
impact of our loss prevention work. Evolving risks associated with climate,
mental health and the cyber environment, in particular, challenge us to
develop our products and services. We have done a good job when no harm
happens, or when steps have been taken to anticipate it. In addition, we want
to strengthen our position as a responsible investor. In respect of climate, our
objective is to bring our insurance-associated and financed GHG emissions
down to net zero by 2050. For our own operations (Scope 1 and 2), we have in
place a climate goal for 2025. All climate goals are discussed in further detail
in section ESRS E1-4 Targets related to climate change mitigation and
adaptation.
Developing our operations together with our owner-customers and other key
stakeholders, we invest in improving products and services with a long-term
focus, anticipating changes in customer needs, in order to ensure the
interests and success of customers now and in the future. By producing stable
and cost efficient e-services, we enable the growth of LocalTapiola Group’s
business and a better digital customer experience. We provide more specific
information about interaction with LocalTapiola’s customers in section S4
Consumers and end-users.
Our professional staff and investments made in the development of
competences enable us to succeed, with due regard to regional needs. In
2025, the number of employees at LocalTapiola Group was 4,345. We provide
more specific information about LocalTapiola employees in section S1 Own
workforce.
We use the financial surplus from operations for the benefit of customers in
the form of discounted premiums, customer bonuses and service
development. Some of the profit we use for strengthening solvency, which will
also safeguard the interests of our customers in the future. We monitor the
development of both direct and indirect customer benefits.
We divide the value chain of LocalTapiola Group into three sections:
upstream, own operations, and downstream. The following table describes our
value chain in more detail.
LocalTapiola General | Report of the Board of Directors for 2025
25
Upstream
Own operations
Downstream
Goods and services procured (suppliers)
Insurance and claim services
Use of LocalTapiola’s services (customers)
ICT service procurement (suppliers)
Investment services
Insurance (customers and insured assets)
Claim remediation procurement and services (suppliers)
Real estate operations
Investment and asset management (clients and portfolio
investments)
Service and sales cooperation (suppliers)
Asset management services
Claim remediation (compensation recipients and beneficiaries)
Procurement for real estate operations (suppliers)
Financial services
Financing (clients)
External investments (portfolio investments)
Remuneration services
Use and leasing of properties (users and lessees)
Reinsurance (reinsurers)
Product and service development
Communication, and media cooperation (media, society)
Cooperation with authorities, and supervision (authorities)
Sales and distribution
Social partnerships and donations (local communities and
other partners)
Group’s services
Marketing and communications
7.1.3.2 ESRS 2 SBM-2 Interests and views of
stakeholders
SBM-2, 45
The most important stakeholders of LocalTapiola Group are customers,
employees and governance bodies. Other identified stakeholders include
strategic and other partners, service providers, authorities and political
decision-makers, cross-industry organisations and special interest groups,
research institutes and educational institutions, NGOs, local communities and
the media.
Engagement with customers, employees, governance bodies, partners and
authorities is regular and continuous. The role played by decision-makers,
organisations, local communities and the media takes on heightened
importance not only when it comes to maintaining our business prerequisites
and upholding our reputation, but also in local advocacy. 
In 2025, the themes we discussed with our stakeholders included climate
change risks and adaptation, working life and mental health issues,
sustainability in investment activities, and safety and security topics. In the
following table, we have compiled a summary of stakeholder interaction for
2025.
LocalTapiola General | Report of the Board of Directors for 2025
26
Stakeholder engagement 2025
Stakeholder
Modes of engagement
Purpose of engagement
Consideration of the results
Customers
Customer service and customer work
Digital service and communication channels
Customer surveys, satisfaction surveys and
feedback
The LocalTapiola customer community
Customer events and functions
Training and coaching events
Customer communication
Service aligned with customer needs and
circumstances
Customer insight
Customer needs and expectations
Risk management and loss prevention
Inclusion of customers in development
Communication objectives
Product and service development
Customer encounter and care models
Clear and understandable communication
Sustainability and responsibility goals
Personnel
Employee surveys and polls, statutory reports
Networks and cooperation forums
Staff events and functions
Discussion events and workshops
Induction and training
Workplace communication
Employee experience and occupational
wellbeing
Achievement of equality and non-discrimination
Employer image
Upskilling
Inclusion and involvement
Policies
Management and leadership
Leadership Promises and Employee Promises
Equality and Non-Discrimination Plan
Diversity Plan
Development opportunities
Strategy and operational development
Governance
Meetings
Working groups and committees
Events and functions
Training and coaching
Satisfaction survey for governance bodies
Implementation of Owner Intent
Governance
Inclusion of governance bodies
Owner-customers’ views and expectations
Governance bodies’ view in operational
development
Governance bodies’ Leadership Promises
Partners, suppliers and
service providers
Contractual cooperation
Cooperation negotiations and meetings
Events and functions
Stakeholder surveys
Projects and initiatives
Business partnerships
Claim remediation activity
Procurement, and supply chain management
Social and non-profit activity
Partnership management model
Partner Code of Conduct
Responsible supply chains
Cooperation development
LocalTapiola General | Report of the Board of Directors for 2025
27
Stakeholder engagement 2025
Stakeholder
Modes of engagement
Purpose of engagement
Consideration of the results
Authorities
Regulatory meetings and discussions
Supervisory meetings and contacts
Regular communication
Reporting
Application and development of regulation
Regular and continuous dialogue
Reporting to authorities
Ensuring legal compliance for business
operations
Ensuring operational prerequisites
Development of business operations and
reporting
Decision-makers and interest
groups
Advocacy and protection of interests
Meetings and contributions
Cooperation projects and networks
Discussion events
Ensure operational prerequisites
Regular dialogue
Cooperation and related projects
Advocacy and Protection of Interests Plan
Operational development
Development of cooperation and approaches
Organisations, local
associations and educational
institutions
Contractual cooperation
Cooperation initiatives and projects
Events, functions and trainings
Local presence through regional companies
Communication cooperation 
Anticipation of risks, and risk management
Stakeholder discussions and cooperation
Donations and sponsoring
Support health, safety and economic actors
Safety training events
National and local cooperation
Social debate
Promote the vitality, safety and wellbeing of
local communities
Risk management and loss prevention
Selection of partners and cooperation initiatives
Cooperation impact
Selection of donation and sponsorship recipients
Selection of partners and cooperation initiatives
Identification of regional risks, and research
cooperation
Impact assessment
Selection of donation recipients
Media
Media encounters and events
Media releases
Pitches
Interviews
Support business
Build the LocalTapiola brand
Increase awareness and visibility
Protect and enhance the company’s reputation
Contribute to social debate
Landscape analysis
Communication preparedness
Brand building
Stakeholder support
LocalTapiola Group owner-customers are represented in the governance
bodies that guide the activities of our insurance companies. Each mutual
insurance company of LocalTapiola Group has a Board of Directors and a
Supervisory Board, whose members represent broadly the customer base and
different sectors of society. Owner-customers exercise their voting right at
General Meetings of the mutual insurance companies. The regional
companies cooperate actively with their regional stakeholders, which include
organisations, safety operators, educational institutions and sport clubs.
At LocalTapiola Group, the purpose of stakeholder engagement is, for its
part, to help our customers protect their life and business. LocalTapiola
Group has as one of its long-term objectives to increase customer benefits,
which is why we are regularly monitoring how the customer benefits develop.
The regular dialogue conducted with our partners and other collaborating
LocalTapiola General | Report of the Board of Directors for 2025
28
entities supports national and local cooperation while enabling operational
development.
By keeping in contact with authorities and decision-makers, we strive, for
example, to confirm issues concerning the interpretation of regulation and of
our reporting obligations. Furthermore, we also influence our future operating
prerequisites through social debate and the protection of interests. Regular
and continuous engagement with different stakeholders helps us identify
their expectations and anticipate changes taking place in our business
landscape.
In 2025, members of the LocalTapiola Group management and specialists
from various functions participated broadly in the sustainability reporting
double materiality assessment. They also infused the process with their
experience of the results of the 2022 sustainability materiality assessment
carried out in the form of a stakeholder survey. In the sustainability
statement double materiality assessment in 2025, we updated the description
of the LocalTapiola Group value chain. This allowed us to ensure that all key
stakeholders are taken into account. We examine the double materiality
assessment once a year or more frequently, and will update it where
necessary when there are changes in business operations or stakeholder
expectations.
Twice a year, we provide reporting on the implementation of the Owner
Intent and the group strategy to the Boards of Directors of LocalTapiola
General and LocalTapiola Life. In addition, twice a year, the Board of
LocalTapiola General deliberates on the implementation of the LocalTapiola
sustainability programme, and approves the separate voluntary sustainability
report of LocalTapiola Group on an annual basis.
The goals laid down in the LocalTapiola group strategy are based on
anticipating changes in the business landscape and on ensuring future
competitiveness. Our strategy process is participated in broadly by
representatives of the corporate group’s governance bodies, management
members and specialists, which gives us useful information for our strategy
work about the views and interests of our different stakeholders. The
currently valid LocalTapiola group strategy has been drawn up for the years
2022–2026, which is why the group strategy objectives were not changed in
2025. As part of assessing long-term developments in the operating
environment, representatives of governing bodies and the personnel during
2025 evaluated the impacts of climate change and biodiversity loss on both
customers and business operations.
In accordance with the strategy process of LocalTapiola Group, we review the
content of the group strategy on an annual basis. Our strategic goals that
guide operational development can be found at the LocalTapiola Group
website (https://www.lahitapiola.fi/tietoa-lahitapiolasta/lahitapiola-ryhma/
toiminnan-tarkoitus/).
The LocalTapiola group strategy and the Owner Intent describe the long-term
intent of the group. Owner-customer representatives play a role in the
corporate group’s governance bodies, contributing to our operational
development. From the annual satisfaction survey targeting LocalTapiola
Group’s governance bodies, we obtain information on the views held by
members of the Boards of Directors and Supervisory Boards of the group
companies about issues related to the governance of LocalTapiola Group.
7.1.3.3 ESRS 2 SBM-3 Material impacts, risks and
opportunities and their interaction with strategy and
business model
SBM-3, 48, E1.SBM-3, 18; E1.SBM-3, 19; E1.SBM-3, AR 7, and AR 8;
S1.SBM-3, 14; S1.SBM-3, 15; S1.SBM-3, 16
In the sustainability reporting double materiality assessment process, we
identify the material impacts, risks and opportunities of LocalTapiola Group.
We present the material impacts in the following tables: Material impacts on
the environment, Material impacts on society, and Material impacts on
governance. The material risks and opportunities are illustrated in the
Material financial impacts table. All material impacts, risks and opportunities
fall within the scope of the sustainability reporting standard Disclosure
Requirements. In 2025, no resilience analysis was carried out for the strategy
and business model of LocalTapiola Group. In the planning of our upcoming
strategy period, we will address the material impacts, risks and opportunities
identified in the double materiality assessment. Compared with the reporting
period of the previous year, we report new sustainability topics that exceed
the materiality threshold. These topics are S4 Consumers and end-users, S1-8
Collective bargaining coverage and social dialogue and S1-16 Remuneration
metrics (pay gap and total remuneration).
Consumers and end-users cover the policyholders, insured persons and other
customers and clients of LocalTapiola Group (inter alia, the clients of assets
management, finance and remuneration services, and the tenants of
properties). We have identified that LocalTapiola’s consumers and end-users
may be affected by negative impacts relating to privacy protection, the
protection of personal data, and non-discrimination. We describe these
impacts in further detail in the ‘Material impacts on society’ table. By their
LocalTapiola General | Report of the Board of Directors for 2025
29
nature, negative impacts are mainly individual cases, but wide-ranging
negative impacts are also possible, for example, in the event of an extensive
personal data security breach. We outline actions related to positive impacts
in the description of the following table, and describe them in more detail in
section S4-4 Taking action on material impacts on consumers and end-users,
and approaches to managing material risks and pursuing material
opportunities related to consumers and end-users, and effectiveness of those
actions. As part of the double materiality assessment, we have identified that
we collect most personal information about insured customers (inter alia,
health information), which is why they may be affected by negative impacts
more likely than other customer groups. The data protection and data
security risks that affect the personal data of insured customers are
therefore more significant than in other customer groups. 
Material impacts on the environment
Material topic
Value chain part
Activities
Sustainability impact on the environment
Nature of the impact
Time horizon
E1
Climate change
mitigation 
Downstream
GHG emissions from portfolio
investments
Emissions generated by portfolio investments
Negative
Actual
Long-term
GHG emissions from insured assets
Emissions generated by insured assets (corporate activities
and assets, vehicles, homes etc.)
Negative
Actual
Long-term
GHG emissions from the remediation
of claims
Emissions generated by the remediation of customers’
claims (for example, home, car, health)
Negative
Actual
Long-term
GHG emissions from financed
vehicles
Emissions generated by financed vehicles
Negative
Actual
Long-term
GHG emissions from real estate
investments
Operational energy consumption, repair and new
construction of investment properties
Negative
Actual
Long-term
Select investments that support and
promote climate change mitigation
Select portfolio investments that support climate change
mitigation
Positive
Potential
Long-term
Insure green transition assets
Promote the green transition by insuring sectors and
technologies that further it
Positive
Actual
Medium-term /
Long-term
Provide insurance products that
enable the green transition
Development related to insurance products to enable the
green transition.
Positive
Potential
Long-term
Climate change
adaptation
Downstream
Invest in assets that support climate
change adaptation
Invest in assets that, through their own business operations,
promote climate change adaptation.
Positive
Actual
Long-term
Progress of climate work of client
companies
Support client companies in setting their own climate
change-related measures, metrics and goals
Positive
Actual
Long-term
Energy
Downstream,
Upstream
Emissions from value chain energy
consumption
Emissions generated by the energy consumption of insured
assets, portfolio investments and outsourced service
providers
Negative
Actual
Long-term
Asiakasyritysten ilmastotyön
edistyminen
Asiakasyritysten tukeminen oman ilmastonmuutoksen
liittyvien toimenpiteiden, mittaroinnin ja tavoitteiden
asetannassa
Positive
Actual
Long-term
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Material impacts on society
Material topic
Value chain part
Activities
Sustainability impact on human beings
Nature of the impact
Time horizon
S1
Other wok-
related rights
Own operations
Security breaches of workers’
personal data
Security breaches compromising the personal data of own
employees, and the harm they cause to employees.
Negative
Actual
Short-term /
Medium-term /
Long-term
Working
conditions
Own operations
Anticipate workers’ working capacity
risks
By anticipating workers’ working capacity risks, the
occupational wellbeing of staff improves, the number of
sick leaves and occupational accidents decreases and
cooperation with occupational healthcare runs smoothly
Positive
Actual
Short-term /
Medium-term /
Long-term
Worker wellbeing and employee
experience
Good leadership has a major impact on staff wellbeing and
a good employee experience
Positive
Actual
Short-term /
Medium-term /
Long-term
Realisation of workers’ rights
Ensure employment-related rights and employment security
through policies and agreements
Positive
Actual
Short-term /
Medium-term
Develop policies and approaches
within the work community
We ensure appropriate treatment and working conditions
for our employees so as to be able to guarantee correct
policies and the consideration of different views
Positive
Potential
Short-term /
Medium-term /
Long-term
Equal treatment
and opportunities
for all
Own operations
Development of workers’
competences
For employees, learning pathways are available that have
been defined on the basis of their own work roles. In
addition to learning pathways, we also offer our staff a
diverse range of other opportunities for upskilling.
Positive
Potential
Short-term /
Medium-term /
Long-term
Unequal treatment of workers and
job-seekers based on sex
Not all employees are treated in a non-discriminatory
manner due to sex, and not everyone is offered equal
opportunities
Negative
Actual
Short-term /
Medium-term /
Long-term
Workers’ unequal pay
Not all employees are paid the same pay for work of equal
value
Negative
Actual
Short-term /
Medium-term /
Long-term
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Material impacts on society
Material topic
Value chain part
Activities
Sustainability impact on human beings
Nature of the impact
Time horizon
S4
Personal safety of
consumers and/or
end-users
Downstream
Provision of insurance products and
services to customers
Insurance products and services can provide protection to
support customers’ health and safety. Loss prevention and
proactive health and wellbeing support for customers We
deliver expert services to customers for managing different
risks and for safety work.
Positive
Actual
Short-term /
Medium-term /
Long-term
Social inclusion of
consumers and/or
end-users
Downstream
Non-discriminatory treatment of
customers
Customers are treated on a non-discriminatory basis in
insurance and claim encounters. In terms of decisions,
customers are treated equally and fairly.
Positive
Actual
Short-term /
Medium-term /
Long-term
Service network coverage
Customers can use services via multiple channels and
locally around Finland. Regional companies operate a wide
network of offices.
Positive
Actual
Short-term /
Medium-term /
Long-term
Generation of customer benefit
Provision of products and services that align with customer
circumstances and needs. By developing customer benefits,
better customer value can be generated.
Positive
Actual
Short-term /
Medium-term /
Long-term
Services and products do not satisfy
accessibility requirements
In terms of accessibility requirements, legal requirements
are not met, that is to say, customers’ special needs are not
taken into account comprehensively enough. Use of
services may become more difficult.
Negative
Actual
Short-term /
Medium-term /
Long-term
Information-
related impacts
for consumers
and/or end-users
Downstream
Security breaches of customers’
personal data
Security breaches of customers’ personal data and the
harm that they cause to the privacy of customers
Negative
Actual
Short-term /
Medium-term /
Long-term
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Material impacts on governance
Material topic
Value chain part
Activities
Sustainability impact on the environment or human beings
Nature of the impact
Time horizon
G1
Corruption and
bribery
Own operations
Prevention of corruption and bribery
Anti-corruption and bribery prevention efforts can combat
financial crime and the grey economy. Knowledge and
training ensure that our own staff have the capability to
identify situations and act right.
Positive
Actual
Short-term
Own
operations /
Upstream /
Downstream
Incidents of corruption and bribery
Incidents of corruption and bribery occur in our own
operations or value chain
Negative
Actual
Short-term
Management of
relationships with
suppliers including
payment practices
Upstream
Suppliers adhere to responsible
policies
Suppliers ensure that their business operations comply with
the law, and they follow the best practices of their industry
Positive
Actual
Short-term /
Medium-term /
Long-term
Corporate culture
Downstream
Implementation of a responsible
corporate culture in portfolio
companies and insured companies
Require a responsible corporate culture from portfolio
companies and insured companies.
Positive
Actual
Short-term /
Medium-term /
Long-term
Own operations
Reinforcing responsible policies
Management practices, common policies and guidelines
support the creation of a responsible corporate culture
Positive
Actual
Short-term /
Medium-term /
Long-term
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Material financial effects
Material topic
Description of the risk / opportunity
Financial effect
Nature of
the effect
Time horizon
E1
Climate change
mitigation
Physical risks in insurance activities
Compensation claims for weather-related loss and damage are expected to
increase. The wide exclusions in current products or in future insurance cover are
not compatible with our lifelong security strategy, causing clients disappointments
and risk of financial losses. The financial effect will target the profit and loss
account as the number of clients decreases.
Risk
Medium-term
Transition risks in insurance
activities
Risks related to remediating loss and damage resulting from transitioning to a
carbon-neutral economy (for example, solar panels). The financial effect will target
the profit and loss account as remediation costs increase.
Risk
Long-term
Climate change
adaptation
Physical risks in insurance activities
Increased compensation claims for weather-related loss and damage and their
impact on the profitability of non-life insurance (for example, damage to forest
and property). The financial effect will target the profit and loss account as the
volume of claims increases.
Risk
Long-term
Transition risks in insurance
activities
Impacts from transitioning to a carbon neutral economy on investment returns.
Climate risks to investments.  The financial impact will affect the balance sheet.
Risk
Medium-term
S1
Other work-related
rights
Data protection and data security
risks affecting the personal data of
our own employees
The number and severity of data protection and data security incidents may
increase in the coming years. The financial impact will affect the profit and loss
account if potential claims increase.
Risk
Short-term
Working conditions
Increasing safety risks for employees
Compromised occupational safety increases reputational risk and affects the
customer experience and satisfaction. The financial impact will affect the profit
and loss account if the number of customers declines, and for potential claims.
Risk
Short-term
S4
Social inclusion of
consumers and/or end-
users
The scope of cover of products does
not meet customer expectations
If the scope of cover of products does not meet customer expectations, the
number of customers can be anticipated to decrease and reputational risk can
increase. The financial impact will affect the profit and loss account as the number
of customers decreases.
Risk
Medium-term
Data-related impacts on
consumers and/or end-
users
Data protection and data security
risks affecting customers’ personal
data
The number and severity of data protection and data security incidents may
increase in the coming years. The financial impact will affect the profit and loss
account if potential claims increase and the number of customers decreases.
Risk
Short-term
LocalTapiola General | Report of the Board of Directors for 2025
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7.1.4 ESRS 2 IRO Impact, risk and opportunity
management Disclosures on the materiality
assessment process
7.1.4.1 ESRS 2 IRO-1 Description of the processes to
identify and assess material impacts, risks and
opportunities
IRO-1, 53; E1.IRO-1, 20; E1.IRO-1, 21; E2.IRO-1, 11; E3.IRO-1, 8;
E4.IRO-1, 17; E4.IRO-1, 18; E4.IRO-1, 19; E5.IRO-1, 11; G1.IRO-1, 6;
IRO-2, 59
The identification and assessment of impacts, risks and opportunities of the
sustainability topics that are material to LocalTapiola Group is a continuous
process. We update our sustainability reporting double materiality
assessment as needed, but in any case at least annually. In this work, we take
into account the value chain and important stakeholders of LocalTapiola
Group. In spring 2025, the double materiality update process was
participated in broadly by specialists and responsible persons from, inter alia,
insurance functions, the insurance companies’ investment divisions, asset
management, finance functions, sustainability, financial management, risk
management and legal services. In the sustainability reporting double
materiality assessment, in addition to the 2024 double materiality
assessment, we used the LocalTapiola sustainability materiality assessment
approved in 2023, the results from the survey of the group’s sustainability
risks and the feedback received from stakeholders in the course of
sustainability work. In this assessment, we did not focus on specific activities,
business relationships, geographies or other factors that potentially give rise
to heightened risk of adverse impacts.
At LocalTapiola, the sustainability reporting double materiality assessment is
a four-step, continuous process:
1) Map the value chain;
2) Identify the impacts of the activities of LocalTapiola Group
3) Identify the financial effects on the activities of LocalTapiola Group (risks
and opportunities); and
4) Assess materiality, and formulate the double materiality reporting
requirements.
In the first step of the double materiality assessment, we update the
description of the LocalTapiola Group value chain. The value chain
descriptions cover both direct and indirect contractual relationships, in the
upstream and downstream of which we take into account, when possible, not
only first-tier suppliers but also those in the subsequent tiers.
In the second step, we identify impacts that LocalTapiola Group’s own
operations and value chain have on people and the environment. The
outcome we deliver is a summary of the positive and negative impacts, either
actual or possible, of LocalTapiola Group’s own operations and value chain.
Furthermore, for the impacts, risks and opportunities, we also define a time
horizon: short-term (the reporting year), medium-term (1–5 years) or long-
term (more than 5 years).
In the third step of the assessment, we identify financial risks and
opportunities presented by the sustainability topics. In this work, we also
address the sustainability risks identified in the LocalTapiola Group
companies’ own risk surveys. As the outcome of the third step, we define
impact pathways and the financial effects deriving from the sustainability
topics. As for financial effects, we classify them into opportunities and risks.
In the fourth step of the process, we score the impacts, risks and
opportunities identified in the previous steps. Based on the identification and
scoring of impacts, risks and opportunities, we compile a preliminary double
materiality summary of the sustainability topics that emerge as material. As
regards our impacts on people and the environment, we assess them as the
average of severity and likelihood on a scale of one to five, in which the
scoring for severity is determined as the average of scale, scope and
irreparability on a scale of one to five. The financial materiality scale we use
is the same scale used in the LocalTapiola Group risk survey, that is to say, we
assess the magnitude and likelihood of risks and opportunities on a scale of
one to five. As a product of these two above values, we obtain a full financial
materiality scale of one to 25.
In the sustainability reporting double materiality assessment updated in
2025, we kept the threshold for impacts unchanged from the previous
reporting period, at four. As for the threshold for financial risks and
opportunities that affect LocalTapiola Group, we maintained it at nine. We
defined material sustainability reporting standards, that is, standards to be
reported, as those that exceed the threshold for either impact materiality or
financial materiality.
LocalTapiola General | Report of the Board of Directors for 2025
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The sustainability reporting double materiality assessment summary is
processed by the LocalTapiola Group sustainability reporting project Project
Group and Steering Group. Based on the summary, the Project Group
consisting of specialists from different functions prepares a proposal on the
reported, material and excluded sustainability topics, Disclosure
Requirements and datapoints. The Project Group ensures that the results of
the double materiality assessment and the scope of the sustainability
statement are aligned. All this is documented in the information collection
system used in sustainability reporting. After examining the proposal, the
Audit and Risk Management Committee submits it to the Board of Directors
of LocalTapiola General for confirmation. At its meetings, the Risk
Management Committee allots time for examining sustainability reporting
and drafting proposals to be submitted to Board meetings. The Audit and
Risk Management Committee is also responsible for supervising the
independence of the sustainability statement auditor. The Board of
LocalTapiola General confirms that the sustainability statement included in
the Report of the Board of Directors has been prepared in compliance with
the sustainability reporting standard and the Accounting Act.
Discussions of the sustainability statement and the double materiality
assessment are included in the annual wheels governing the scheduling of
meetings of the Board of LocalTapiola General and its Committees.
Whenever there are any material changes in the operating landscape or
business operations, the Board of LocalTapiola General will also confirm the
updated sustainability reporting double materiality assessment in between
the annual discussions undertaken at meetings. In addition to examining the
topics already identified as material, the Board of LocalTapiola General will
also examine whether some of the topics, Disclosure Requirements or
datapoints previously assessed as not material exceed, after the changes, the
threshold for impact materiality or financial materiality.
We include the material risks identified in the double materiality assessment
as part of the sustainability risks highlighted in LocalTapiola Group’s risk
survey. Finally, we also use the LocalTapiola Group risk assessment model for
assessing other risks, which we discuss in further detail in section GOV-5 Risk
management and internal controls over sustainability reporting.
E1 Climate change
In the double materiality assessment, we examine the impacts that the
operations of LocalTapiola Group have on climate change, as well as the
impacts of climate change-related risks and opportunities on the operations
of LocalTapiola Group. In the materiality assessment process, we address
physical risks in our own operations and in the upstream and downstream
value chain. We identify chronic and acute hazards related to temperature,
wind, water and solid mass over the short-, medium- and long-term, and
assess their effects for assets and business activities. In this assessment, we
employ time horizon definitions that are compliant with the sustainability
reporting standard. At LocalTapiola Group, we address the impacts of
climate change-related risks and opportunities in product development and
strategy planning, but no specific capital expenditures are allocated to this
work. The impact assessment of climate-related hazards is included in the
operational risk survey process of the LocalTapiola Group regional non-life
insurance companies. We identify transition risks over the different time
horizons, and evaluate our exposure to these events. In the identification
process, we evaluate the likelihood, scope and duration of the transition risks
of investment activities, insurance activities and finance. In 2025, we did not
use climate-related scenario analysis as part of the double materiality
assessment, but have developed the assessment process with regard to the
insurance business.
E2 Pollution, E3 Water and marine resources, E4 Biodiversity and
ecosystems, and E5 Resource use and circular economy
In the double materiality assessment, we also examine impacts, risks and
opportunities related to other environmental standards in the own operations
and value chain of the LocalTapiola Group companies (E2 Pollution, E3 Water
and marine resources, E4 Biodiversity and ecosystems, E5 Resource use and
circular economy). In 2025, these sustainability topics did not exceed the
threshold for double materiality assessment reporting, meaning that we did
not identify any material impacts, risks or opportunities for these. During
2025, we did not conduct stakeholder consultations relating to these themes.
In assessing E2 Pollution, we take into account the nature of our operations,
the location of offices, and our value chain. In the assessment, we use our
specialists’ assessment from the perspective of insurance activities,
investment activities and finance, examining pollution sub-topics including
pollution of air, pollution of soil, microplastics and pollution of water. In the
2025 assessment, the main topics were soil emissions from portfolio
investments and insured assets as well as emissions from insured assets into
water, but, on the basis of the scoring, the impacts were determined to be
not material. 
In assessing E3 Water and marine resources, we take into account not only
our own operations but also our value chain. In the assessment, we use our
specialists’ assessment from the perspective of insurance activities,
investment activities and finance, examining water and marine resources sub-
topics including water consumption, water discharges, water withdrawals and
extraction and use of marine resources. In the 2025 assessment, the water
consumption of investment real estate properties and water discharges from
LocalTapiola General | Report of the Board of Directors for 2025
36
insured assets were highlighted, but, on the basis of the scoring, the impacts
were determined to be not material.
For E4 Biodiversity and ecosystems, we identify and assess real and potential
impacts and dependencies on biodiversity, taking into account the location of
our offices, and our value chain. Furthermore, we identify and assess
transition risks, physical risks, opportunities and systemic risks related to the
standard In the 2025 assessment, for LocalTapiola Group’s own operations,
we did not identify activities in or near biodiversity-sensitive areas or any
material direct impacts on biodiversity loss. In respect of the value chain, we
identified impacts, inter alia, for portfolio investments, agricultural and
forestry assets and real estate investment assets, and for the construction
and insurance of new developments. However, based on the scoring,
biodiversity did not exceed the reporting threshold.
For E5 Resource use and circular economy, we assess the impacts of own
operations and our value chain on circular economy. In the 2025 assessment,
the amount and quality of waste from claim remediation activities and from
damage repairs, and the acquisitions made for claim remediation activities,
were highlighted as the most material impacts, but, on the basis of the
scoring, the impacts were determined to be not material.
G1 Business conduct
In the G1 Governance and corporate culture-related double materiality
assessment, we address the business areas of LocalTapiola Group, the
structure of the corporate group, the multichannel nature and coverage of
services in Finland and updates to the corporate culture policies.
7.1.4.1 ESRS 2 IRO-2 Disclosure Requirements in ESRS
covered by the undertaking’s sustainability statement
IRO2, 56; IRO-2, 58; IRO-2, 59
In the following tables, in accordance with Appendix B to the ESRS 2
standard, we illustrate the datapoints reported in the 2025 sustainability
statement, and the sections in which they appear in the sustainability
statement.
Datapoints in cross-cutting and topical standards that derive from other
EU legislation
Standard, Disclosure
Requirement & datapoint
Description
Location
ESRS 2 GOV-1, 21 d
Board’s gender diversity
ESRS 2 GOV-1, 21 e
Percentage of independent board
members
ESRS 2 GOV-4, 30
Statement on due diligence
ESRS 2 SBM-1, 40 d i
Involvement in activities related to fossil
fuel activities
Not material
ESRS 2 SBM-1, 40 d ii
Involvement in activities related to
chemical production
Not material
ESRS 2 SBM-1, 40 d iii
Involvement in activities related to
controversial weapons
Not material
ESRS 2 SBM-1, 40 d iv
Involvement in activities related to
cultivation and production of tobacco
Not material
ESRS E1, E1-1, 14
Transition plan to reach climate neutrality
by 2050
ESRS E1, E1-1, 16 g
Undertakings excluded from Paris-aligned
Benchmarks
ESRS E1, E1-4, 34
GHG emission reduction targets
ESRS E1, E1-5, 38
Energy consumption from fossil sources
disaggregated by sources
ESRS E1, E1-5, 37
Energy consumption and mix
ESRS E1, E1-5, 40-43
Energy intensity associated with activities
in high climate impact sectors
ESRS E1, E1-6 , 44
Gross Scopes 1, 2, 3 and Total GHG
emissions
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Datapoints in cross-cutting and topical standards that derive from other
EU legislation
Standard, Disclosure
Requirement & datapoint
Description
Location
ESRS E1, E1-6, 53-55
Gross GHG emissions intensity
ESRS E1, E1-7, 56
GHG removals and carbon credits
ESRS E1, E1-9, 66
Exposure of the benchmark portfolio to
climate-related physical risks
Not material
ESRS E1, E1-9, 66 a
Disaggregation of monetary amounts by
acute and chronic physical risk
Not material
ESRS E1, E1-9, 66 c
Location of significant assets at material
physical risk
Not material
ESRS E1, E1-9, 67 c
A breakdown of the carrying value of the
undertaking’s real estate assets by
energy-efficiency classes
Not material
ESRS E1, E1-9, 69
Degree of exposure of the portfolio to
climate-related opportunities
Not material
ESRS E3, E3-1, 13
Dedicated policy
Not material
ESRS E3, E3-1, 14
Sustainable oceans and seas
Not material
ESRS E3, E3-4, 28 c
Total water recycled and reused
Not material
ESRS E3, E3-4, 29
Total water consumption in m3 per net
revenue on own operations
Not material
ESRS 2 - SBM-3 - E4, 16 a i
Activities negatively affecting biodiversity
sensitive areas
Not material
ESRS 2 - SBM-3 - E4, 16 b
Whether the undertaking has identified
material negative impacts with regards to
land degradation, desertification or soil
sealing
Not material
ESRS 2 - SBM-3 - E4, 16 c
Whether the undertaking has operations
that affect threatened species
Not material
ESRS E4, E4-2, 24 b
Sustainable land / agriculture practices or
policies
Not material
ESRS E4, E4-2, 24 c
Sustainable oceans / seas practices or
policies
Not material
ESRS E4, E4-2, 24 d
Policies to address deforestation
Not material
ESRS E5, E5-5, 37 d
Non-recycled waste
Not material
ESRS E5, E5-5, 39
Hazardous waste and radioactive waste
Not material
ESRS 2 - SBM-3 - S1, 14 f
Risk of incidents of forced labour
Not material
ESRS 2 - SBM-3 - S1, 14 g
Risk of incidents of child labour
Not material
Datapoints in cross-cutting and topical standards that derive from other
EU legislation
Standard, Disclosure
Requirement & datapoint
Description
Location
ESRS S1, S1-1, 20
Human rights policy commitments
ESRS S1, S1-1, 21
Due diligence policies on issues addressed
by the fundamental International Labor
Organisation Conventions 1 to 8
ESRS S1, S1-1, 22
Processes and measures for preventing
trafficking in human beings
ESRS S1, S1-1, 23
Workplace accident prevention policy or
management system
ESRS S1, S1-3, 32 c
Grievance/complaints handling
mechanisms
ESRS S1, S1-14, 88 b, c
Number of fatalities and number and rate
of work-related accidents
ESRS S1, S1-14, 88 e
Number of days lost to injuries, accidents,
fatalities or illness
ESRS S1, S1-16, 97 a
Unadjusted gender pay gap
ESRS S1, S1-16, 97 b
Excessive CEO pay ratio
ESRS S1, S1-17, 103 a
Incidents of discrimination
ESRS S1, S1-17, 104 a
Non-respect of UNGPs on Business and
Human Rights principles and OECD
guidelines
ESRS 2 - SBM-3 - S2, 11 b
Significant risk of child labour or forced
labour in the value chain
Not material
ESRS S2, S2-1, 17
Human rights policy commitments
Not material
ESRS S2, S2-1, 19
Due diligence policies on issues addressed
by the fundamental International Labor
Organisation Conventions 1 to 8
Not material
ESRS S2, S2-4, 36
Human rights issues and incidents
connected to its upstream and
downstream value chain
Not material
ESRS S3, S3-1, 16
Human rights policy commitments
Not material
ESRS S3, S3-1, 17
Non-respect of UNGPs on Business and
Human Rights, ILO principles or OECD
guidelines
Not material
ESRS S3, S3-4, 36
Human rights issues and incidents
Not material
ESRS S4, S4-1, 16
Policies related to consumers and end-
users
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38
Datapoints in cross-cutting and topical standards that derive from other
EU legislation
Standard, Disclosure
Requirement & datapoint
Description
Location
ESRS S4, S4-1, 17
Non-respect of UNGPs on Business and
Human Rights principles and OECD
guidelines
ESRS S4, S4-4, 35
Human rights issues and incidents
ESRS G1, G1-1, 10 b
United Nations Convention against
Corruption
ESRS G1, G1-1, 10 d
Protection of whistleblowers
ESRS G1, G1-4, 24 a
Fines for violation of anti-corruption and
anti-bribery laws
ESRS G1, G1-4, 24 b
Standards of anti-corruption and anti-
bribery
We describe the definition of material datapoints and the use of thresholds in
the section ESRS 2 IRO-1 Description of the processes to identify and assess
material impacts, risks and opportunities’.
The sustainability topics determined to be material in 2024,
E1 Climate change, S1 Own workforce and G1 Business conduct, also
exceeded the materiality threshold in the 2025 assessment. As a new
reported sustainability topic in the sustainability statement, S4 Consumers
and end-users was highlighted as material. In the 2025 results for the
sustainability reporting double materiality assessment, the E5 Resource use
and circular economy standard was at the reporting threshold but did not
exceed it. In the review of the E5 Resource use and circular economy
standard, impact materiality reached the materiality threshold for two
dimensions. The materiality of financial effects remained clearly below the
threshold.
The sustainability reporting project Project Group examined the double
materiality assessment-based reporting package, and documented the
criteria for excluding the standards that were found to be close to the
reporting threshold. The Audit and Risk Management Committee examined
the proposal submitted to the Board of Directors for confirmation. The
proposal also contained the excluded sustainability topics
LocalTapiola General | Report of the Board of Directors for 2025
39
7.1.4.2 ESRS 2 MDR-P Policies adopted to manage material sustainability matters
MDR-P, 65
In the following table, we present our policies in use at LocalTapiola Group to manage material sustainability matters.
LocalTapiola Group Code of Conduct
Policies
Key content
Scope of
application
Responsible
party
Commitments
Addressing the interests of
stakeholders
Availability
Owner Intent
Promote the interests of LocalTapiola
Group owner-customers, and direct
mutual corporate governance
LocalTapiola
Group companies
Supervisory
Boards of
LocalTapiola
General and
LocalTapiola Life
No commitments to external
principles
Inclusion of owner-customers and
representatives of governance
bodies
Non-public,
available to
staff in the
intranet*
Group strategy
Anticipate and prepare for changes in
LocalTapiola Group’s business
landscape, strengthen the modern
meaning and benefit of being an
owner-customer, develop future
competitive advantage and
competitiveness and direct the
development of business operations
and our offering.
LocalTapiola
Group companies
Supervisory
Boards of
LocalTapiola
General and
LocalTapiola Life
No commitments to external
principles
Inclusion of owner-customers and
representatives of governance
bodies
Non-public,
available to
staff in the
intranet*
Code of
Conduct
The key LocalTapiola Group policies
with which we at the group are
committed to complying. The Code
describes the policies we follow and
the action we do not approve of.
LocalTapiola
Group companies
excluding Finnish
P&C Insurance Ltd
and LTC Otso Oy
Group
companies’
Boards
Finance Finland’s Responsible
Financial Sector principles,
Good insurance practice
(provision of insurance, and
claims handling),
Principles for responsible
investment (investment
activities and asset
management activities),
Good securities markets
practice.
LocalTapiola Group’s business mix
and changing business landscape
taken into account. In 2024,
specialists from different functions
and companies were involved in the
updating of the Code of Conduct.
Publicly
available at the
LocalTapiola
website
Partner Code
of Conduct
The LocalTapiola Group policies and
approaches to which we require our
partners to commit and which we also
follow.
LocalTapiola
Group partners,
suppliers and
other cooperation
partners
Group
companies’
Boards
No commitments to external
principles
Diversity of LocalTapiola Group’s
cooperation partners taken into
account. Specialists from
LocalTapiola companies and
functions, and selected partners,
were involved in the preparation of
the Code.
Publicly
available at the
LocalTapiola
website
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40
LocalTapiola Group Code of Conduct
Policies
Key content
Scope of
application
Responsible
party
Commitments
Addressing the interests of
stakeholders
Availability
Sustainability
programme
The LocalTapiola sustainability
programme 2022–2026 defines the
group’s common sustainability goals
and the key actions to achieve them.
LocalTapiola
Group companies
excluding Finnish
P&C Insurance Ltd
and LTC Otso Oy
Group’s
Management
Group
UN Principles for Sustainable
Insurance
Asset Management Group: UN-
supported Principles for
Responsible Investment
We made use of results from the
sustainability materiality
assessment. The materiality
assessment surveyed stakeholder
views on LocalTapiola’s material
sustainability impacts. The survey
was sent out to clients, members of
governance bodies and staff, and
to a group representing partners,
decision-makers and organisations.
Representatives from senior
management, governance bodies
and partners participated in the
interviews.
Publicly
available at the
LocalTapiola
website
Human Rights
Policy
The LocalTapiola Human Rights Policy
contains a human rights commitment
and information about LocalTapiola
Group’s main adverse human rights
impacts. The impact assessment
addresses entire LocalTapiola Group
and the group’s value chain. The
Policy sets out methods to monitor
respect for human rights, and it
describes measures for preventing
and mitigating adverse impacts.
LocalTapiola
Group companies
excluding LTC
Otso Oy
Group
companies’
Boards
The UN’s International Bill of
Human Rights, which includes
the International Covenant on
Civil and Political Rights (ICCPR)
and the International Covenant
on Economic, Social and
Cultural Rights (ICESCR)
The ILO Declaration on
Fundamental Principles and
Rights at Work
We have identified human rights
impacts relating to the various
roles that LocalTapiola occupies,
and, as a result, have taken into
account the perspectives of
different stakeholders (employer,
service provider, investor and asset
manager, procurer, partner, and
community member)
Publicly
available at the
LocalTapiola
website
Human
Resource
Strategy
The LocalTapiola Group Human
Resources Strategy aims to ensure,
support and contribute to the
achievement of LocalTapiola’s
strategic objectives through
measures of HR work and HR
management.
LocalTapiola
Group companies
excluding Finnish
P&C Insurance Ltd
and LTC Otso Oy
Group’s
Management
Group
No commitments to external
principles
Inclusion and involvement of our
own staff
Non-public,
available to
staff in the
intranet*
Tax Policy
The LocalTapiola Tax Policy was
drawn up to lay down the goals and
key principles which LocalTapiola as a
corporate group follows in the
management of tax matters.
LocalTapiola
Group companies
excluding Finnish
P&C Insurance Ltd
and LTC Otso Oy
Group
companies’
Boards
No commitments to external
principles
As an insurer, LocalTapiola Group
is helping strengthen and create
stability in Finnish society. Through
investment and financing, we help
clients increase their wealth and
finance their business. LocalTapiola
Group aims to make tax and tax-
like payments according to valid
tax legislation, yet in such a way
that taxes will not be paid in excess
of the provisions of laws and
regulations.
Publicly
available at the
LocalTapiola
website
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41
LocalTapiola Group Code of Conduct
Policies
Key content
Scope of
application
Responsible
party
Commitments
Addressing the interests of
stakeholders
Availability
Climate Policy
The LocalTapiola Climate Policy
describes the approaches that we
employ to prevent, mitigate, manage
and remediate our impacts on the
climate and to address climate
change-related risks. We address
climate change mitigation and
adaptation-related aspects in the
client and risk selection relating to
our insurance activities, in product
development, loss prevention and
claims handling, in investment, asset
management and finance, and in our
own operations. As for energy
efficiency and the use of renewable
energy, we promote them particularly
in our real estate activities and own
operations.
LocalTapiola
Group companies
excluding Finnish
P&C Insurance Ltd
and LTC Otso Oy
Group
companies’
Boards
UN Principles for Sustainable
Insurance
Asset Management Group: UN-
supported Principles for
Responsible Investment, and the
Net Zero Asset Managers
climate initiative
Real estate division: Net Zero
Carbon Buildings initiative
LocalTapiola Finance: Green
Deal agreement concluded
jointly between the State of
Finland and the automotive
sector
LocalTapiola wants to deliver
Finnish solutions for climate
change adaptation and mitigation
– in cooperation with clients,
partners and other stakeholders.
Publicly
available at the
LocalTapiola
website
Data
protection
policy
The data protection policy outlines
the general principles and practices
underlying data protection at
LocalTapiola. The policy describes the
fundamental requirements for data
protection so that data protection by
design and by default is also achieved
in practice. Data protection covers
the privacy of individuals and the
other rights which safeguard privacy
when processing personal data. The
data protection policy aims to ensure
lawful processing of personal data,
safeguard the privacy of customers
and employees, support
LocalTapiola’s reputation as a reliable
and responsible player, lay a
foundation for credible, functioning
and systematic processing of
personal data and define the roles
and responsibilities relating to the
protection of personal data.
LocalTapiola
Group companies
excluding Finnish
P&C Insurance Ltd
and LTC Otso Oy
Group
companies’
Boards
No commitments to external
principles
Safe management of customer and
employee data as part of daily
activities.
Non-public,
available to
staff in the
intranet*
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42
LocalTapiola Group Code of Conduct
Policies
Key content
Scope of
application
Responsible
party
Commitments
Addressing the interests of
stakeholders
Availability
Data security
policy
The data security policy defines the
goals, responsibilities and
implementation methods of cyber
and data security. Cyber and data
security are an element of business
management, risk management,
corporate responsibility and
corporate security. Data security aims
at ensuring the confidentiality,
integrity and availability of the data
that our companies process. The
policy aims to ensure that the digital
environment of LocalTapiola is secure
and free from disruptions.
LocalTapiola
Group companies
excluding Finnish
P&C Insurance Ltd
and LTC Otso Oy
Group
companies’
Boards
ISO/IEC 27001 standard
Data on stakeholders are managed
in a manner that is secure and
meets the requirements laid down
in national legislation and the
GDPR.
Non-public,
available to
staff in the
intranet*
Risk
management
policy
The risk management policy defines
the practices used to prepare, within
the limits of the defined risk appetite,
for threats and opportunities arising
from evolving external and internal
conditions in order to achieve
strategic and operational objectives.
Risk management reduces the
likelihood of unforeseen financial
losses and the amount of loss, as well
as mitigating threats to
LocalTapiola’s reputation
LocalTapiola
Group companies
excluding Finnish
P&C Insurance Ltd
and LTC Otso Oy
Group
companies’
Boards
ORSA
Solvency 2
Increases stakeholder trust in
LocalTapiola. Guarantees a
sufficient solvency position, which
enables the payment of benefits to
customers in the event of
surprising risks.
Non-public,
available to
staff in the
intranet*
Insurance
companies’
product
management
policy
The product management policy
guides the LocalTapiola Group
insurance companies in taking
customer objectives, interests and
characteristics appropriately into
account in product development and
throughout the entire product
lifecycle. In addition, the product
management policy provides the
Board, management and superiors
with guidelines on the principles and
procedures to be followed in product
development and product
management.
LocalTapiola
Group insurance
companies,
excluding Finnish
P&C Insurance Ltd
and the insurance
intermediaries
involved in the
production of
insurance
products
Boards of the
group’s
insurance
companies
No commitments to external
principles
Customer objectives, interests and
characteristics are taken into
account throughout the entire
product lifecycle.
Non-public,
available to
staff in the
intranet*
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43
LocalTapiola Group Code of Conduct
Policies
Key content
Scope of
application
Responsible
party
Commitments
Addressing the interests of
stakeholders
Availability
Non-life
insurance
underwriting
policy
The underwriting policy provides an
overall view of the principles and
guidelines governing non‑life
insurance and underwriting activities.
The policy aims at guiding the
risk‑taking involved in the
underwriting activities of the non‑life
insurance companies in order to
achieve their financial objectives;
providing the Board, management,
superiors and staff with guidelines on
the principles to be followed in
underwriting; supporting the
companies’ Boards, management and
superiors in carrying out their
respective responsibilities; and serving
as a basis for the companies’ more
detailed operating models and
instructions.
LocalTapiola
Group insurance
companies
excluding Finnish
P&C Insurance Ltd
Group
companies’
Boards
Finance Finland’s general
underwriting principles
Ensure the continuity of
LocalTapiola Group’s operations,
and responsible non‑life insurance,
which enables the ability to meet
payment obligations.
Non-public,
available to
staff in the
intranet*
Insurance
companies’
principles for
responsible
investment
The insurance companies’ principles
for responsible investment guide
investments so that environmental,
social and governance sustainability
factors are integrated into
investment processes and
decision‑making.
LocalTapiola
Group insurance
companies
excluding Finnish
P&C Insurance Ltd
Boards of
LocalTapiola
General and
LocalTapiola Life
UN’s Principles for Sustainable
Insurance (PSI)
The objective of investment
activities is to safeguard the value
of invested capital and to generate
the best possible long‑term returns,
while taking into account risk
management and responsibility for
the benefit of clients and
stakeholders.
Publicly
available at the
LocalTapiola
website
Partnership
management
principles
The partnership management
principles determine how
LocalTapiola examines the
partnership lifecycle and addresses
the various dimensions of partnership
management.
LocalTapiola
Group companies
excluding Finnish
P&C Insurance Ltd
and LTC Otso Oy
Board of
LocalTapiola
Services
No commitments to external
principles
Active partnership management
enables improved process
efficiency during the lifecycle of
partnerships and allows the
provision of the most effective
service possible to consumers and
end-users.
Non-public,
available to
staff in the
intranet*
Climate and
nature strategy
of Asset
Management
Group
LocalTapiola Asset Management
Group’s climate and nature strategy
sets out the concrete measures for
mitigating climate change and
safeguarding biodiversity. The
strategy guides investment activities,
real estate operations and ownership
steering toward carbon neutrality,
responsibility and the achievement of
sustainable development goals.
LocalTapiola
Asset
Management
Group
Board of
LocalTapiola
Asset
Management
Paris Agreement, Net Zero Asset
Managers initiative, The Net
Zero Carbon Buildings
Commitment, TCFD (Task Force
on Climate Related Financial
Disclosures), PRI (Principles for
Responsible Investment), CDP
(Carbon Disclosure project),
Climate Action 100+, TNFD
(Taskforce on Nature-related
Financial Disclosures), CDP
Science-Based Targets
Campaign, UN’s Sustainable
Development Goals (SDG)
Prevent and minimise the impacts
of climate change as part of
LocalTapiola Asset Management
Group’s operations. Promote
stability and predictability in the
business landscape, which enables
sustainable societal, business and
investment development.
Publicly
available
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44
LocalTapiola Group Code of Conduct
Policies
Key content
Scope of
application
Responsible
party
Commitments
Addressing the interests of
stakeholders
Availability
Claims policy
The claims service policy sets out that
claims services implement the
LocalTapiola strategy and deliver the
best customer experience and lifelong
security to customers. Targets are
defined for the strategic objectives of
claims services, and their
achievement and timeliness are
continuously monitored within the
claims service organisation. In claims
service, it is ensured that customers
are provided with service that
exceeds their expectations across
online, mobile, telephone and
in‑office channels.
LocalTapiola
Group insurance
companies
excluding Finnish
P&C Insurance Ltd
Board of
LocalTapiola
Services
No commitments to external
principles
Customers are provided with a
uniform claims service based on
common processes, shared policies
and uniform claims guidelines.
Claims are always processed in
accordance with the law and the
applicable insurance contract.
Non-public,
available to
staff in the
intranet*
Customer
encounter
model
The customer encounter model
defines the practices related to the
role of customer insight,
measurement and feedback in
developing the customer experience.
LocalTapiola
Group companies
excluding Finnish
P&C Insurance Ltd
and LTC Otso Oy
Board of
LocalTapiola
Services
No commitments to external
principles
To be able to deliver the best
lifelong security to customers, we
need to understand
customers’ (life) situation and
needs. Through genuine interaction
and attentive listening, we can
offer customers the best possible
solutions or help them in their
moment of need.
Non-public,
available to
staff in the
intranet*
Customer
feedback
processing
principles
The customer feedback processing
principles define the policies for
collecting and processing customer
feedback
LocalTapiola
Group companies
excluding Finnish
P&C Insurance Ltd
and LTC Otso Oy
Board of
LocalTapiola
Services
No commitments to external
principles
Feedback given by customers is
taken into account as part of
business operations.
Non-public,
available to
staff in the
intranet*
Customer
complaints
processing
policy
The processing of customer
complaints is based on efficiency,
fairness and the customer first
principle. Complaints can be
submitted in several ways, including
by telephone and email or through
electronic service channels, and each
complaint is recorded systematically.
The handling of complaints is
continuously monitored and analysed,
they are regularly reported to
management and the Board, and the
timeliness of the processing principles
is ensured annually.
LocalTapiola
Group insurance
companies
excluding Finnish
P&C Insurance Ltd
Board of
Directors of
LocalTapiola
General
EIOPA-BoS-12/069
EIOPA-BoS-12/07
Complaints lodged by customers
are processed transparently,
efficiently, fairly and on a customer
first basis
Non-public,
available to
staff in the
intranet*
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45
LocalTapiola Group Code of Conduct
Policies
Key content
Scope of
application
Responsible
party
Commitments
Addressing the interests of
stakeholders
Availability
Whistleblowing
channel policy
The purpose of the whistleblowing
channel policy is to describe
LocalTapiola Group’s whistleblowing
procedures, handling processes and
work instructions. The document
serves as guidance for all users of the
whistleblowing channel, those
handling reports and other parties
involved in the process.
LocalTapiola
Group companies
excluding Finnish
P&C Insurance Ltd
and LTC Otso Oy
Board of
Directors of
LocalTapiola
General
Ilmoittajansuojelulaki (the
whistleblowing act) (1171/2022)
European Union’s
whistleblowing directive (EU
2019/1937)
The policy applies to all
LocalTapiola Group companies and
their staff, and to other
stakeholders that can file a report
through the channel.
Non-public,
available to
staff in the
intranet*
*With the exception of the employees of Finnish P&C Insurance Ltd, Seligson & Co Fund Management Company Plc and LTC Otso Oy, the employees of LocalTapiola
Group have access to the LocalTapiola intranet.
LocalTapiola General | Report of the Board of Directors for 2025
46
7.2 ESRS E Environmental information
In the Environmental information section of this sustainability statement, we
examine taxonomy reporting and the E1 Climate change sustainability topic.
7.2.1 Disclosures pursuant to Article 8 of
Regulation (EU) 2020/852 (Taxonomy Regulation)
We report the disclosures required by the Taxonomy Regulation, its Annexes
and the supplementing Delegated Regulation. We report Taxonomy
Regulation disclosures as per the legislation effective on 31 December 2025.
The Commission Delegated Regulation (EU) 2026/73 allows the application, in
the sustainability reporting for the 2025 financial year, of the same EU
Taxonomy regulations that were applied in the 2024 sustainability reporting
(these include the Commission Delegated Regulation (EU) 2021/2139, the
supplementary delegated climate regulation (Commission Delegated
Regulation (EU) 2022/1214), the delegated environmental regulation
(Commission Delegated Regulation (EU) 2023/2486), and the amendments to
the delegated climate regulation (Commission Delegated Regulation (EU)
2023/2485). The taxonomy reporting for the 2025 financial year of
LocalTapiola Group takes advantage of this opportunity.
7.2.1.1 Non-life insurance premiums written
The following climate change adaptation-related activities set out in the
Taxonomy Regulation concern non-life insurance and reinsurance operations:
10.1. Non-life insurance: underwriting of climate-related perils, and 10.2.
Reinsurance. Under some non-life insurance products, we provide
compensation for natural event-related losses, such as those from storms,
wildfire and flooding. The terms and conditions of our non-life insurance
products do not specifically exclude climate change-related losses from
coverage.
We report as Taxonomy-eligible (Annex X, template row A.2) only that portion
of the premiums written for each non-life insurance class which we charge to
cover losses that are due to one or several of the climate risks set out in
Appendix A to the Delegated Regulation. The premiums written for
reinsurance acceptances and reinsurance cessions and for retrocession of
reinsurance acceptances are reported as Taxonomy-eligible according to the
insurance class-specific portions of direct premiums written.
Taxonomy-aligned reporting (Annex X, template row A.1) of non-life insurance
premiums written requires compliance with the relevant technical criteria and
minimum safeguards. The minimum safeguards require compliance with the
guidelines on human rights, corruption, taxation and fair competition laid
down in the United Nations (UN) Guiding Principles on Business and Human
Rights (UNGP). In our Human Rights Policy, Code of Conduct and elsewhere,
we, for example, pledge to respect and implement human rights in everything
we do. Development work is underway at LocalTapiola Group to comply with
the minimum safeguards, with which we do not comply in the 2025 reporting.
The insurance products of LocalTapiola do not in all respects meet the
Taxonomy-alignment criteria set for non-life and life insurance activities.
With regard to the technical criteria for making a substantial contribution to
climate change adaptation, our current insurance products do not meet the
technical criteria for climate-risk modelling and pricing. This is because
forward-looking climate models are not employed for rating purposes. In
future, we will aim to develop our non-life insurance products and, where
possible, increase the share of both direct insurance and reinsurance
premiums written that meets the technical criteria.
We use the template determined for non-life and reinsurance undertakings in
Annex X to the Commission Delegated Regulation to report on the non-life
insurance premiums written shown in the consolidated financial statements
of LocalTapiola Group.
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47
Annex X template: The underwriting KPI for non-life insurance and reinsurance undertakings
Substantial contribution to climate change
adaptation
DNSH (Do No Significant Harm)
Economic activities (1)
Absolute
premiums, year
2025 (2)
Proportion of
premiums, year
2025 (3)
Proportion of
premiums, year
2024 (4)
Climate
change
mitigation
(5)
Water and
marine
resources
(6)
Circular
economy
(7)
Pollution
(8)
Biodiversity
and
ecosystems
(9)
Minimum
safeguards
(10)
MEUR
%
%
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
A.1 Non-life insurance and reinsurance underwriting
Taxonomy-aligned activities (environmentally
sustainable)
0.00
—%
—%
Y
Y
Y
Y
Y
N
A.1.1 Of which reinsured
0.00
—%
—%
Y
Y
Y
Y
Y
N
A.1.2 Of which stemming from reinsurance activity
0.00
—%
—%
Y
Y
Y
Y
Y
N
A.1.2.1 Of which reinsured (retrocession)
0.00
—%
—%
Y
Y
Y
Y
Y
N
A.2 Non-life insurance and reinsurance
underwriting Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities)
207.95
12.93%
13.09%
B. Non-life insurance and reinsurance underwriting
Taxonomy-non-eligible activities
1,412.56
87.07%
86.91%
Total (A.1+A.2+B)
1,620.51
100%
100%
“Premiums” in columns (2) and (3) shall be reported as gross premiums written or, as applicable, turnover relating to non-life insurance or reinsurance activity.
LocalTapiola Group reports “premiums” as gross premiums written
Non-life insurance and reinsurance can only be aligned with Regulation (EU) 2020/852 as activity that enables climate change adaptation. That is why the data reported in column (5)
are the same for all insurance and reinsurance undertakings that carry on non-life insurance and/or non-life reinsurance activities.
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48
7.2.1.2 Investments
We use the templates determined for non-life and reinsurance undertakings
in Annexes X and XII to the Commission Delegated Regulations to report on
the investments shown in the consolidated financial statements of
LocalTapiola Group.
We report investments at fair value. For target undertakings subject to
disclosure obligations, we use third-party sustainability data in our reporting
which are based on sustainability data reported by the respective target
undertakings.
In 2025, the proportion of Taxonomy-aligned items, as measured by revenue,
was 2.22% (1.65%), and, as measured by capital expenditure, this was 2.80%
(2.13%), in relation to the assets covered by the Key Performance Indicator
(KPI). The growth compared with the previous year is mainly attributable to
an increased share of reporting target undertakings. We have not set any
goals regarding the Taxonomy alignment of investment activities.
In the breakdown of the denominator of the KPI, other investments include
direct and indirect real estate investments, loans secured by mortgages on
immovable property, fund investments and other collective investments for
which adequate details cannot be provided, cash in funds, and other
investments that cannot be assigned to the other categories.
Annex X template: The proportion of the insurance or reinsurance undertaking’s investments that are directed at funding, or are associated with, Taxonomy-
aligned in relation to total investments 
The weighted average value of all the investments of insurance or reinsurance
undertakings that are directed at funding, or are associated with Taxonomy-aligned
economic activities relative to the value of total assets covered by the KPI, with
following weights for investments in undertakings per below:
The weighted average value of all the investments of
insurance or reinsurance undertakings that are directed at
funding, or are associated with Taxonomy-aligned economic
activities, with following weights for investments in
undertakings per below:
Turnover-based: %
2.22%
Turnover-based: [monetary amount]
EUR
256.64
Million
Capital expenditures-based: %
2.80%
Capital expenditures-based: [monetary amount]
EUR
324.22
Million
The percentage of assets covered by the KPI relative to total investments of
insurance or reinsurance undertakings (total AuM). Excluding investments in
sovereign entities
The monetary value of assets covered by the KPI. Excluding
investments in sovereign entities.
Coverage ratio: %
88.08%
Coverage ratio: [monetary amount]
EUR
11,568.06
Million
Additional, complementary disclosures: breakdown of denominator of the KPI
The percentage of derivatives relative to total assets covered by the KPI
The value in monetary amounts of derivatives:
%
0.05%
[monetary amount]
EUR
5.72
Million
The proportion of exposures to financial and non-financial undertakings not subject
to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the
KPI:
Value of exposures to financial and non-financial
undertakings not subject to Articles 19a and 29a of Directive
2013/34/EU:
For non-financial undertakings:
33.51%
For non-financial undertakings: [monetary amount]
EUR
3,876.22
Million
For financial undertakings:
12.08%
For financial undertakings: [monetary amount]
EUR
1,397.90
Million
The proportion of exposures to financial and non-financial undertakings from non-
EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU over total
assets covered by the KPI:
Value of exposures to financial and non-financial
undertakings from non-EU countries not subject to Articles
19a and 29a of Directive 2013/34/EU:
For non-financial undertakings:
24.17%
For non-financial undertakings: [monetary amount]
EUR
2,796.33
Million
For financial undertakings:
5.83%
For financial undertakings: [monetary amount]
EUR
674.64
Million
The proportion of exposures to financial and non-financial undertakings subject to
Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:
Value of exposures to financial and non-financial
undertakings subject to Articles 19a and 29a of Directive
2013/34/EU:
For non-financial undertakings:
14.06%
For non-financial undertakings: [monetary amount]
EUR
1,626.75
Million
For financial undertakings:
9.97%
For financial undertakings: [monetary amount]
EUR
1,152.93
Million
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49
Annex X template: The proportion of the insurance or reinsurance undertaking’s investments that are directed at funding, or are associated with, Taxonomy-
aligned in relation to total investments 
The proportion of exposures to other counterparties and assets over total assets
covered by the KPI:
Value of exposures to other counterparties and assets:
%
30.33%
[monetary amount]
EUR
3,508.54
Million
The proportion of the insurance or reinsurance undertaking’s investments other than
investments held in respect of life insurance contracts where the investment risk is
borne by the policy holders, that are directed at funding, or are associated with,
Taxonomy-aligned economic activities:
Value of insurance or reinsurance undertaking’s investments
other than investments held in respect of life insurance
contracts where the investment risk is borne by the policy
holders, that are directed at funding, or are associated with,
Taxonomy-aligned economic activities:
%
9.61%
[monetary amount]
EUR
1,111.84
Million
The value of all the investments that are funding economic activities that are not
Taxonomy-eligible relative to the value of total assets covered by the KPI:
Value of all the investments that are funding economic
activities that are not Taxonomy-eligible:
%
63.88%
[monetary amount]
EUR
7,389.79
Million
The value of all the investments that are funding Taxonomy-eligible economic
activities, but not Taxonomy-aligned relative to the value of total assets covered by
the KPI:
Value of all the investments that are funding Taxonomy-
eligible economic activities, but not Taxonomy-aligned:
%
23.53%
[monetary amount]
EUR
2,721.95
Million
Additional, complementary disclosures: breakdown of numerator of the KPI
The proportion of Taxonomy-aligned exposures to financial and non-financial
undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total
assets covered by the KPI:
Value of Taxonomy-aligned exposures to financial and non-
financial undertakings subject to Articles 19a and 29a of
Directive 2013/34/EU:
For non-financial undertakings:
For non-financial undertakings: [monetary amount]
Turnover-based: %:
1.88%
Turnover-based: [monetary amount]
EUR
217.17
Million
Capital expenditures-based: %
2.33%
Capital expenditures-based: [monetary amount]
EUR
269.87
Million
For financial undertakings:
For financial undertakings: [monetary amount]
Turnover-based: %:
0.34%
Turnover-based: [monetary amount]
EUR
39.47
Million
Capital expenditures-based: %
0.47%
Capital expenditures-based: [monetary amount]
EUR
54.35
Million
The proportion of the insurance or reinsurance undertaking’s investments other than
investments held in respect of life insurance contracts where the investment risk is
borne by the policy holders, that are directed at funding, or are associated with,
Taxonomy-aligned:
Value of insurance or reinsurance undertaking’s investments
other than investments held in respect of life insurance
contracts where the investment risk is borne by the policy
holders, that are directed at funding, or are associated with,
Taxonomy-aligned:
Turnover-based: %:
1.69%
Turnover-based: [monetary amount]
EUR
195.29
Million
Capital expenditures-based: %
2.14%
Capital expenditures-based: [monetary amount]
EUR
247.04
Million
The proportion of Taxonomy-aligned exposures to other counterparties and assets
over total assets covered by the KPI:
Value of Taxonomy-aligned exposures to other
counterparties and assets over total assets covered by the
KPI:
Turnover-based: %:
0.00%
Turnover-based: [monetary amount]
EUR
0.00
Million
Capital expenditures-based: %
0.00%
Capital expenditures-based: [monetary amount]
EUR
0.01
Million
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50
Breakdown of the numerator of the KPI per environmental objective
Taxonomy-aligned activities – provided ‘do-not-significant-harm’ (DNSH) and social safeguards positive assessment:
A) Transitional activities
    B) Enabling activities
(1) Climate change mitigation
      Turnover: %
Turnover: %
      Turnover: %
1.75%
0.06%
0.78%
      CapEx: %
CapEx: %
      CapEx: %
2.32%
0.05%
0.94%
(2) Climate change adaptation
      Turnover: %
Turnover: %
      Turnover: %
0.04%
0.00%
0.00%
      CapEx: %
CapEx: %
      CapEx: %
0.02%
0.00%
0.00%
(3) Sustainable use and protection of water and marine resources
      Turnover: %
Turnover: %
      Turnover: %
0.00%
0.00%
0.00%
      CapEx: %
CapEx: %
      CapEx: %
0.00%
0.00%
0.00%
(4) Transition to a circular economy
      Turnover: %
Turnover: %
      Turnover: %
0.15%
0.00%
0.03%
      CapEx: %
CapEx: %
      CapEx: %
0.11%
0.00%
0.00%
(5) Pollution prevention and control
      Turnover: %
Turnover: %
      Turnover: %
0.02%
0.00%
0.00%
      CapEx: %
CapEx: %
      CapEx: %
0.02%
0.00%
0.00%
(6) Protection and restoration of biodiversity and ecosystems
      Turnover: %
Turnover: %
      Turnover: %
0.00%
0.00%
0.00%
      CapEx: %
CapEx: %
      CapEx: %
0.00%
0.00%
0.00%
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51
Annex XII standard templates for the disclosure referred to in Article 8(6) and (7)
Template 1 Nuclear and fossil gas related activities
Row
Nuclear energy related activities
1
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity
generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.
Yes
2
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or
process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety
upgrades, using best available technologies.
Yes
3
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat,
including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety
upgrades.
Yes
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity
using fossil gaseous fuels.
Yes
5
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power
generation facilities using fossil gaseous fuels.
Yes
6
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
Yes
For the data in Annex XII template 1, we have not identified, regarding premiums written for Taxonomy-aligned non-life insurance and reinsurance activities, any links to the activities set out
in the template.
 
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52
Annex XII standard templates for the disclosure referred to in Article 8(6) and (7)
Template 2 Taxonomy-aligned economic activities (denominator). Turnover (TEUR)
Row
Economic activities
Amount and proportion
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
1.1
0.00%
1.1
0.00%
0.0
0.00%
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
11,873.9
0.10%
11,873.9
0.10%
0.0
0.00%
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
6,435.6
0.06%
6,435.6
0.06%
0.0
0.00%
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
15.4
0.00%
15.4
0.00%
0.0
0.00%
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
91.3
0.00%
91.3
0.00%
0.0
0.00%
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
24.9
0.00%
24.9
0.00%
0.0
0.00%
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in
rows 1 to 6 above in the denominator of the applicable KPI
188,766.4
1.63%
184,015.9
1.59%
4,750.6
0.04%
8
Total applicable KPI
207,208.5
1.79%
202,457.9
1.75%
4,750.6
0.04%
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Annex XII standard templates for the disclosure referred to in Article 8(6) and (7)
Template 2 Taxonomy-aligned economic activities (denominator). CapEx (TEUR)
Row
Economic activities
Amount and proportion
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0.0
0.00%
0.0
0.00%
0.0
0.00%
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
2,118.7
0.02%
2,118.7
0.02%
0.0
0.00%
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
12,046.0
0.10%
12,043.6
0.10%
2.5
0.00%
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
19.5
0.00%
19.5
0.00%
0.0
0.00%
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
131.6
0.00%
131.6
0.00%
0.0
0.00%
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
3.3
0.00%
3.3
0.00%
0.0
0.00%
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in
rows 1 to 6 above in the denominator of the applicable KPI
255,993.3
2.21%
253,922.4
2.20%
2,070.8
0.02%
8
Total applicable KPI
270,312.5
2.34%
268,239.2
2.32%
2,073.3
0.02%
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Annex XII standard templates for the disclosure referred to in Article 8(6) and (7)
Template 3 Taxonomy-aligned economic activities (numerator). Turnover (TEUR)
Row
Economic activities
Amount and proportion
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
1.1
0.00%
1.1
0.00%
0.0
0.00%
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
11,873.9
4.63%
11,873.9
4.63%
0.0
0.00%
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
6,435.6
2.51%
6,435.6
2.51%
0.0
0.00%
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
15.4
0.01%
15.4
0.01%
0.0
0.00%
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
91.3
0.04%
91.3
0.04%
0.0
0.00%
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
24.9
0.01%
24.9
0.01%
0.0
0.00%
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in
rows 1 to 6 above in the numerator of the applicable KPI
188,766.4
73.55%
184,015.9
71.70%
4,750.6
1.85%
8
Total amount and proportion of taxonomy-aligned economic activities in the numerator of
the applicable KPI
207,208.5
80.74%
202,457.9
78.89%
4,750.6
1.85%
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Annex XII standard templates for the disclosure referred to in Article 8(6) and (7)
Template 3 Taxonomy-aligned economic activities (numerator). CapEx (TEUR)
Row
Economic activities
Amount and proportion
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
0.0
0.00%
0.0
0.00%
0.0
0.00%
2
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
2,118.7
0.65%
2,118.7
0.65%
0.0
0.00%
3
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
12,046.0
3.72%
12,043.6
3.71%
2.5
0.00%
4
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
19.5
0.01%
19.5
0.01%
0.0
0.00%
5
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
131.6
0.04%
131.6
0.04%
0.0
0.00%
6
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI
3.3
0.00%
3.3
0.00%
0.0
0.00%
7
Amount and proportion of other taxonomy-aligned economic activities not referred to in
rows 1 to 6 above in the numerator of the applicable KPI
255,993.3
78.96%
253,922.4
78.32%
2,070.8
0.64%
8
Total amount and proportion of taxonomy-aligned economic activities in the numerator of
the applicable KPI
270,312.5
83.37%
268,239.2
82.73%
2,073.3
0.64%
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Annex XII standard templates for the disclosure referred to in Article 8(6) and (7)
Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities. Turnover (TEUR)
Row
Economic activities
Amount and proportion
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0.0
0.00%
0.0
0.00%
0.0
0.00%
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
1.3
0.00%
1.3
0.00%
0.0
0.00%
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
107.7
0.00%
107.7
0.00%
0.0
0.00%
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
2,832.6
0.02%
2,832.6
0.02%
0.0
0.00%
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
518.2
0.00%
518.2
0.00%
0.0
0.00%
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
5.1
0.00%
5.1
0.00%
0.0
0.00%
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
2,493,230.0
21.55%
2,480,225.6
21.44%
13,004.4
0.11%
8
Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic
activities in the denominator of the applicable KPI
2,496,694.9
21.58%
2,483,690.5
21.47%
13,004.4
0.11%
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Annex XII standard templates for the disclosure referred to in Article 8(6) and (7)
Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities. CapEx (TEUR)
Row
Economic activities
Amount and proportion
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0.0
0.00%
0.0
0.00%
0.0
0.00%
2
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
0.1
0.00%
0.1
0.00%
0.0
0.00%
3
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
36.2
0.00%
36.2
0.00%
0.0
0.00%
4
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
1,326.5
0.01%
1,326.5
0.01%
0.0
0.00%
5
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
180.5
0.00%
180.5
0.00%
0.0
0.00%
6
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
18.0
0.00%
18.0
0.00%
0.0
0.00%
7
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
323,313.2
2.79%
267,386.5
2.31%
55,926.7
0.48%
8
Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic
activities in the denominator of the applicable KPI
324,874.4
2.81%
268,947.7
2.32%
55,926.8
0.48%
LocalTapiola General | Report of the Board of Directors for 2025
58
Annex XII standard templates for the disclosure referred to in Article 8(6) and (7)
Template 5 Taxonomy non-eligible economic activities. Turnover (TEUR)
Row
Economic activities
Amount
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0.2
0.00%
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0.0
0.00%
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
27.0
0.00%
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
12.6
0.00%
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0.2
0.00%
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0.2
0.00%
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the
applicable KPI
8,452,207.7
73.07%
8
Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI
8,452,248.0
73.07%
Annex XII standard templates for the disclosure referred to in Article 8(6) and (7)
Template 5 Taxonomy non-eligible economic activities. CapEx (TEUR)
Row
Economic activities
Amount
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0.0
0.00%
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
9.3
0.00%
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
37.0
0.00%
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
12.5
0.00%
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0.6
0.00%
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
0.0
0.00%
7
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the
applicable KPI
10,622,057.9
91.82%
8
Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI
10,622,117.3
91.82%
LocalTapiola General | Report of the Board of Directors for 2025
59
7.2.2 ESRS E1 Climate change
The climate change-related material impacts, risks and opportunities of
LocalTapiola Group are described in further detail in section SBM-3 Material
impacts, risks and opportunities and their interaction with strategy and
business model. Material impacts, risks and opportunities in brief:
• Climate change mitigation
◦ GHG emissions from insured assets, portfolio investments,
claim remediation activities, financed vehicles and real
estate investments
◦ Select portfolio investments that support and promote
climate change mitigation
◦ Insure green transition assets
◦ Provide insurance products that enable the green transition
◦ Physical risks in insurance activities
◦ Transition risks in insurance activities
• Climate change adaptation
◦ Invest in assets that support climate change adaptation
◦ Progress of climate work at client companies
◦ Physical risks in insurance activities
◦ Transition risks in investment activities
• Energy
◦ GHG emissions from insured assets, portfolio investments
and external energy consumption 
In section E1 Climate change, we provide information on the following
Disclosure Requirements:
• E1-1 Transition plan for climate change mitigation
• E1-2 Policies related to climate change mitigation and adaptation
• E1-3 Actions and resources in relation to climate change policies
• E1-4 Targets related to climate change mitigation and adaptation
• E1-5 Energy consumption and mix
• E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
• E1-7 GHG removals and GHG mitigation projects financed through
carbon credits
• E1-8 Internal carbon pricing
7.2.2.1 ESRS E1-1 Transition plan for climate change
mitigation
E1-1, 14; E1-1, 16; E1-1, 17; E1-1, AR1; E1-1, AR3; E1-1, AR4; E1-1, AR5
E1-1, 16
The objective of this transition plan reporting requirement is to enable an
understanding of the reporting undertaking’s past, current and future climate
change mitigation actions to ensure that the undertaking’s strategy and
business model are compatible, inter alia, with the Paris Agreement.
LocalTapiola Group does not have a single group-wide transition plan in place
– instead, in this sustainability statement, we disclose transition plan
information set out in the ESRS E1-1 standard. This information is based on
existing group-wide objectives, measures and strategies and those of the
different group companies. LocalTapiola Group, LocalTapiola General,
LocalTapiola Asset Management and the LocalTapiola real estate division
have in place their own administrative, management and supervisory bodies
that have approved the group’s and the companies’ existing climate goals
and measures.
In the  2025 sustainability statement, we disclosed that we will be drawing up
a group-wide ESRS E1-1 transition plan during 2025. In 2025, we initiated the
harmonisation of climate goals into group-wide goals, but we have not yet
compiled a group-wide transition plan. In this sustainability statement, we
report on group-wide goals for Scope 1 and 2, and with regard to Scope 3
emissions, we do not yet report on group-wide goals.
With regard to the key GHG emission reduction methods, the resources
required by them and any possible locked-in GHG emissions, we describe
them qualitatively.
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60
Compatibility of the GHG emission targets with the Paris Agreement
goal, and decarbonisation levers
The GHG emission reduction targets of LocalTapiola Group support the Paris
Agreement goal to limit global warming to 1.5°C. No sectoral decarbonisation
paths suitable for the operations of LocalTapiola Group have been defined
yet, which is why our climate goals cannot be compared with the sectoral
decarbonisation pathway. That is why the rationale that the emission
reduction targets support the 1.5°C goal is based, in particular, on the targets
to reduce LocalTapiola Group’s own Scope 1 and 2 emissions. The benchmark
we have used is an economy-wide scenario, and in setting the GHG emission
reduction targets, we have applied the general emission reduction targets,
translated from the state to undertaking level.
We present our climate goals and our related measures in further detail in
section E1-4 Targets related to climate change mitigation and adaptation.
We have so far not set any targets or plans for adapting our economic
activities to the criteria adopted in Commission Delegated Regulation (EU)
2021/2139.
Our greatest influence in climate change mitigation relates to reducing
emissions from our value chain, that is, Scope 3 emissions. To reduce GHG
emissions from the LocalTapiola Group value chain does not require major
own investments; rather, this will be achieved mainly through strategic
choices, such as investment decisions. As for climate change mitigation
actions, in 2025, we did not carry out major investments by which we would
support the implementation of our emission reduction targets. Currently,
LocalTapiola Group does not have ready any plans for premiums written or
CapEx plans which we would disclose in accordance with Commission
Delegated Regulation (EU) 2021/2178.
Locked-in GHG emissions
We have identified that our key assets may potentially include locked-in GHG
emissions. Under the sustainability reporting standard, locked-in GHG
emissions mean an estimate of future GHG emissions that are likely to be
caused by a reporting undertaking’s key resources or sold products, within
their operating lifetime.
For the time being, it is not possible to obtain renewable energy for
LocalTapiola Group’s all commercial premises. Although our fleet of cars has
been renewed to be increasingly low-emission, even our fully electric cars are
not completely emission-free. However, GHG emissions generated in our own
operations are marginal in relation to LocalTapiola Group’s total emissions.
In insurance activities, locked-in GHG emissions might arise from the insuring
of firms, sectors, buildings or vehicles that are dependent on fossil fuels. In
our asset management and investment activities, locked-in emissions might
arise from investments in assets which are strongly dependent on fossil fuels.
LocalTapiola Asset Management manages this risk with exclusionary
investment strategies. In real estate operations, locked-in emissions might
arise, inter alia, from real estate energy solutions, materials and property
maintenance actions. Due to planned risk management measures, emissions
do not compromise the achievement of our GHG emission reduction targets.
During the reporting period, LocalTapiola Group did not invest significant
capitals in economic activities related to coal, oil or gas. LocalTapiola Group
has not been excluded from the EU Paris-aligned Benchmarks.
Relationship of the climate goals to the LocalTapiola strategy
At LocalTapiola Group, sustainability work is guided by the group strategy,
the Owner Intent and the LocalTapiola sustainability programme 2022–2026.
The sustainability programme contains the group’s main sustainability goals
and related key measures. Climate change mitigation is one of the priorities
outlined in the sustainability programme. The LocalTapiola Group own
operations climate roadmap guides climate work related to own operations.
At LocalTapiola Asset Management Group (hereinafter ‘Asset Management
Group’), investment sustainability work is guided by the group’s Climate and
nature strategy (formerly the Climate and sustainable development strategy).
Climate work at the LocalTapiola real estate division is guided by the real
estate division’s climate roadmap adopted in autumn 2025.
LocalTapiola does not have an ESRS E1-1 transition plan-related financial
plan.
7.2.2.2 ESRS E1-2 Policies related to climate change
mitigation and adaptation
E1-2, 24; E1-2, 25
LocalTapiola Group and its companies have in place policies that aim to
mitigate our impacts on the climate and to adapt to risks brought about by
climate change. The policies apply either to individual companies or to all
group companies. In addition, the group operates other climate change-
related company-specific policies, some of which we describe in further detail
in section E1-4 Targets related to climate change mitigation and adaptation.
The LocalTapiola Group Climate Policy, Partner Code of Conduct and
insurance companies’ principles for responsible investment have been
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61
published on the LocalTapiola website at https://www.lahitapiola.fi/tietoa-
lahitapiolasta/vastuullisuus/.
Climate Policy
The Climate Policy describes LocalTapiola Group’s approaches by which we
prevent, mitigate, manage and remediate our impacts on the climate and
address climate change-related risks. Prepared in 2024 and updated in 2025,
the Climate Policy has been approved by the Boards of LocalTapiola General
and of the other group companies. As outlined in the Climate Policy, we
address aspects related to climate change mitigation and adaptation in:
• the insurance client and risk selection, product development, loss
prevention and claims handling;
• investment, asset management and finance; and
• our own operations.
As for energy efficiency and the use of renewable energy, we promote them
particularly in real estate operations and our own operations.
Partner Code of Conduct
In 2025, we reformed the LocalTapiola Group Partner Code of Conduct. In
the reformed Partner Code of Conduct, we address climate change
mitigation and adaptation in our value chain more comprehensively than
before. Furthermore, we also expect our cooperation partners to take climate
impacts into account and minimise them, inter alia, by means of energy
efficiency and the circular economy.
Principles for responsible investment
Early in 2025, we prepared common principles for responsible investment for
the group’s insurance companies. At the LocalTapiola Group insurance
companies, the key responsible investment principles are the integration of
sustainability factors into investment processes; engagement with portfolio
investments, fund portfolio entities and our fund partners; and active
ownership. We can advance the LocalTapiola Group Climate Policy in our
portfolio investments by taking into account, in our investment assessments,
factors including the carbon footprint of the investment or financed entity,
as well as the entity’s sustainability goals and measures to achieve them.
Climate and nature strategy of LocalTapiola Asset Management
Group
The climate and nature strategy of Asset Management Group sets out the
measures taken in investment activities to curb climate change and
biodiversity loss and to foster biodiversity. It describes climate change-
related risks, opportunities and engagement as well as how climate change is
taken into account in the investment activities of Asset Management Group.
Asset Management Group’s key policies related to climate change mitigation
and adaptation are described in section E1-4 Targets related to climate
change mitigation and adaptation. The strategy includes the real estate
division’s updated climate goals and new nature action roadmap. The
strategy has been published on the LocalTapiola website at https://
www.lahitapiola.fi/henkilo/saastaminen-ja-sijoittaminen/vastuullisuus-
lahitapiola-varainhoidossa/.
Other company-specific policies
In addition, LocalTapiola General and LocalTapiola Life have in place specific
corporate governance policies and sustainable investment principles that
guide the investment activities of the companies and refer to climate change
mitigation and adaptation. 
Consideration of sustainability risks
As part of the regular operational risk surveys, we address sustainability risks
that affect LocalTapiola Group. Climate risks are included in the
sustainability risk mix. Sustainability risk management is an element in normal
business risk management, which is guided by the risk management policy
approved by the Boards of the LocalTapiola Group companies. As part of
operational risk surveys, we identify the sustainability risks to which
LocalTapiola Group and the group companies are exposed, and define the
risk management measures. In addition, we identify and assess LocalTapiola
Group’s material climate-related impacts, risks and opportunities in
accordance with the double materiality assessment requirements laid down in
the sustainability reporting standard.
7.2.2.3 ESRS E1-3 Actions and resources in relation
to climate change policies
E1-3, 28; E1-3, 29; MDR-A
LocalTapiola Group has pledged to contribute to climate change mitigation
and the promotion of climate change adaptation. We have defined several
decarbonisation levers, and related actions are analysed in the table below.
As a general rule, the levers and actions relate to improving energy efficiency
in commercial premises part of our own operations, reducing GHG emissions
from the fleet of cars and developing insurance activities and claims
handling. They also relate to responsible investment and responsible real
estate investment and management.
LocalTapiola General | Report of the Board of Directors for 2025
62
The LocalTapiola Group Climate Policy outlines the approaches that we
employ to prevent, mitigate, manage and remedy our impacts on the climate.
The climate goals of LocalTapiola Group are described in this sustainability
statement in section ESRS E1-4 Targets related to climate change mitigation
and adaptation.
Decarbonisation lever
Actions
Developing the energy
efficiency of commercial
premises as well as energy
sources
Reduce energy consumption (for example, by improving energy efficiency and renewing the building services engineering of commercial premises)
Reduce emissions from delivered energy (for example, by acquiring renewable energy when possible)
Acquire district-heat Guarantees of Origin in 2025 for the commercial premises where renewable district heat is not available.
Renewing the company
car fleet
Renew the company car fleet with lower-emission cars (for example, at some group companies, the emission limit for company cars is 80 gCO2/km)
Risk management in the
provision of insurance and
the remediation of claims
Develop client and risk selection in insurance activities
Develop insurance products
Loss prevention (for example, cooperation with clients)
In claims services, we promote lower-emission repair solutions (for example, by increasing the use of recycled and reused spare parts) and calculate a
claim-specific carbon footprint for motor repairs and building claims
Take sustainability factors
into account in investment
decisions
Climate risks are limited in investment portfolios by exclusionary strategies (for instance, investments in fossil fuels are restricted in stock-picking and
bond-picking)
In 2025, we introduced Asset Management Group’s updated Net Zero Asset Managers (NZAMi) milestones and continued reviewing investment solutions.
Quality maintenance, energy efficiency development and renewable energy use at sites in the LocalTapiola Real Estate Asset Management-managed real
estate portfolio
Take sustainability factors
into account in real estate
operations
At the LocalTapiola real estate division, investigate possible climate change-related risks for new real estate investments, because the LocalTapiola real
estate division does not invest in any properties assessed to carry excessive sustainability risk and any possible uncontrollable revenue implications and/or
risk impact
Construct the investment sites we develop in compliance with LocalTapiola’s real estate investment sustainable construction guideline and design
guidelines (For example, for the sites we develop, we require that they calculate their carbon footprint and take action to reduce emissions while adhering
to high standards of energy efficiency)
In construction development and conversion projects carried out by the LocalTapiola real estate division, strive to use raw materials efficiently and recycle
as much as possible (For example, waste from dismantled parts is sorted and processed appropriately, and recycled parts are used whenever possible)
Perform energy-efficiency measures for investment real estate properties (for example, LED lighting and renewable energy production at sites)
Acquire district-heat Guarantees of Origin for all investment real estate properties in 2025
Starting in 2023, a carbon footprint calculation is prepared for completed construction projects (no new construction projects in 2025)
When possible, calculate the carbon footprint for modifications in all tenant modification projects
The LocalTapiola Group own operations climate roadmap describes the
measures to achieve the group’s own operations (Scope 1 and 2 excluding the
real estate division) target by the end of 2030 or sooner. The implementation
of the climate roadmap is not dependent on whether we will draw up a
sustainability reporting standard-compliant transition plan for LocalTapiola
Group in the future. Key actions to reduce GHG emissions from our own
operations include improving energy efficiency, reducing energy consumption,
transitioning to renewable electricity in all commercial premises and
transitioning to renewable district heat in the commercial premises where it is
available. Starting in 2025, we acquire district-heat Guarantees of Origin for
the commercial premises where renewable district heat is not available. We
have replaced company cars with lower-emission models. LocalTapiola
Group’s own operations GHG emission reduction targets are described in this
LocalTapiola General | Report of the Board of Directors for 2025
63
sustainability statement in section E1-4 Targets related to climate change
mitigation and adaptation.
In our role as insurer, LocalTapiola Group can help its clients prepare for
climate risks. We actively provide communication to our clients and
cooperation partners about the importance of loss prevention in order to be
able to mitigate losses caused by weather extremes. In 2025, we continued
the climate scenario-based assessment of climate-related risks to insurance.
Climate risk data can be utilised in risk selection, insurance pricing,
reinsurance and the development of insurance products. The targets to
reduce insurance-associated GHG emissions are described in this
sustainability statement in section E1-4 Targets related to climate change
mitigation and adaptation.
LocalTapiola Group has an opportunity to contribute to the reduction of
GHG emissions through its choice of portfolio investments. The group’s
insurance companies invest independently and purchase asset management
services from LocalTapiola Asset Management Group asset management
companies, which manage a majority of the insurance companies’ investment
assets. In 2025, government bonds and unit-linked products were added to
the GHG inventory of the group’s insurance companies’ own investments. For
the direct equity and corporate bond investments of LocalTapiola Life and
LocalTapiola General, we have set an emission reduction target for 2030. The
targets and measures set for the group’s insurance companies’ own
investments are described in further detail in this sustainability statement in
section E1-4 Targets related to climate change mitigation and adaptation.
For LocalTapiola Asset Management, the most important actions for
reducing GHG emissions from investment portfolios are investment
limitations, portfolio investment choices, investment solutions that promote
sustainability characteristics, and means of active ownership. The
exclusionary strategies that the company employs apply to direct equity and
corporate bonds. Asset Management restricts investment, for example, in
fossil fuel-related activities. The company’s product range features two
climate funds that have as their objective to reduce GHG emissions and
mitigate climate change. Means of active ownership include voting at
General Meetings and engagement in investor collaborative engagement
projects and at portfolio managers’ company meetings. The targets and
measures of Asset Management are described in further detail in this
sustainability statement in section E1-4 Targets related to climate change
mitigation and adaptation.
In real estate investment and in the management of investment real estate
properties, key climate change mitigation actions include increasing energy
efficiency, using renewable electricity and heat and self-generating energy at
properties. The targets and measures to reduce GHG emissions from real
estate activities are described in further detail in this sustainability statement
in section E1-4 Targets related to climate change mitigation and adaptation.
No significant capital expenditures or operational expenditures have so far
been allocated to the implementation of actions aiming for climate change
mitigation and adaptation. 
7.2.2.4 ESRS E1-4 Targets related to climate change
mitigation and adaptation
E1-4, 32; E1-4, 33; E1-4, 34; E1-4, AR 24; E1-4, AR 25; E1-4, AR 26;
E1-4, AR 30, MDR-M, MDR-T
Our climate work is guided by the LocalTapiola Group strategy and
sustainability programme. In our sustainability programme, we have set
climate goals for the insurance and investment activities of LocalTapiola
Group and for our own operations (excluding the real estate division). The
climate goals defined in our sustainability programme were drawn up in
cooperation with LocalTapiola Group-internal stakeholders, without external
stakeholders.
We report on the GHG emissions and emission reduction targets of
LocalTapiola Group as part of the E1-6 Disclosure Requirement. In 2025, we
updated 2024 to be the baseline year for our climate goals. Starting in 2025,
we compare our emission reductions and goals with the baseline year, 2024.
LocalTapiola General | Report of the Board of Directors for 2025
64
Emission
category
Target
Responsible party
Scope 1
Reduce 42% (-112 tCO2e) by 2030 (compared to
2024)
LocalTapiola Group
Scope 2
Reduce 50% (-8,052 tCO2e) by 2030 (compared
to 2024)
LocalTapiola Group
Scope 3,
category 2
For self-developed new construction projects,
achieve a 30% smaller emission intensity level by
the end of 2030   
LocalTapiola Group’s
real estate division
Scope 3,
category 15
Bring the insurance companies’ investments down
to net zero by 2050 (compared to 2024)
LocalTapiola Group
insurance companies
By the end of 2030, reduce by 20% (-8,116
tCO2e) Scope 1 and 2 emissions from the listed
equities and corporate bonds of LocalTapiola Life
and LocalTapiola General (compared to 2024)
LocalTapiola Life
and LocalTapiola
General
Compared to 2019, reduce by 50% the carbon
intensity of emissions from the investment
portfolios covered by the target
LocalTapiola Asset
Management Group
Increase the share of climate-solution
investments covered by the target to 25 per cent
LocalTapiola Asset
Management Group
Bring the insurance-associated emissions of
LocalTapiola Group down to net zero by 2050
(compared 2024)
LocalTapiola Group
insurance companies
*In addition to the investment assets of group-internal companies, Asset
Management Group’s target also covers external client assets, which we nevertheless
do not include in the emissions reported in the sustainability statement that arise
from Scope 3 category 15 investments
Our climate goals do not cover all emissions included in our GHG inventory.
No goals have been set yet for claim remediation activities (Scope 3 category
11) or emissions generated from journeys made by LocalTapiola-financed
vehicles (Scope 3 category 15). Nor have goals been set for purchased goods
and services (Scope 3 category 1), acquired company cars (Scope 3 category
2), waste generated in operations (Scope 3 category 5), business travel (Scope
3 category 6) and employee commuting (Scope 3 category 7). As for the other
Scope 3 categories, we have excluded them from our GHG inventory because
they are not material for LocalTapiola Group.
LocalTapiola Group’s Scope 1 and 2 climate goals for 2030
We have pledged to reduce GHG emissions from our own operations, and set
a new milestone for our own operations (Scope 1 and 2 excluding the
investment real estate properties of the real estate division) emissions by the
end of 2030. The LocalTapiola Group real estate division also has a climate
goal for 2030, which includes the group’s Scope 2 (excl. own operations)
emission reduction target in respect of investment real estate properties.
In late 2025, we combined the own operations Scope 1 and 2 emission target
and the real estate division’s Scope 2 emission target into a group-wide
climate goal. Compared with 2024, our aim is, by the end of 2030, to:
• Reduce Scope 1 emissions by 42% (-112 tCO2e)
• Reduce Scope 2 market-based emissions by 50% (-8,052.5 tCO2e).
The target is measured as an absolute quantity. The target covers the group’s
all GHG inventory marked-based Scope 1 and 2 emissions, which accounted
for 0.58 per cent of the 2025 GHG emissions of LocalTapiola Group. We
monitor the achievement of this target in section E1-6 Gross Scopes 1, 2, 3
and Total GHG emissions table E1-6 AR 48.
The operational responsibility for the target divides between the own
operations climate goal and the real estate division, which we describe next in
sections Own operations climate goals and Climate goals of the LocalTapiola
Group real estate division.
The target supports the goals of the Paris Agreement and aligns with the SBTi
(Science Based Targets initiative) cross-sector pathway, which supports
undertakings operating in different sectors to determine a science-based
target level. The targets have not been externally validated.
Own operations climate goals
At the end of 2025, we set a new milestone for own operations (Scope 1 and
2, excl. the real estate division) emissions. This goal is a continuum of the
previous climate goal set for the end of 2025. The goal is part of the Scope 1
and 2 climate goal of LocalTapiola Group.
Our target is, by the end of 2030, to (compared with 2024):
• Reduce Scope 1 emissions by 60% (-89 tCO2e)
• Reduce market-based Scope 2 emissions by 80% (-606 tCO2e).
The targeted level is measured as an absolute quantity.
In 2025, the own operations climate goal was extended to also cover Finnish
P&C Insurance and LocalTapiola Remuneration Services Ltd, meaning that
the goal covers all LocalTapiola Group companies. GHG emissions covered by
this goal account for 0.06 per cent of the 2025 GHG emissions of
LocalTapiola Group. The goal does not apply to the E1-6, 50 b) subsidiary,
LocalTapiola General | Report of the Board of Directors for 2025
65
Turva Mutual Insurance Company, or to the real estate companies reported in
Scope 1 and 2 emissions.
Above all, the own operations climate goal is about reducing GHG emissions
from the use of our commercial premises and journeys made by company
cars. Our target is to reduce direct GHG emissions from company cars, from
refrigerant leaks in our commercial premises and from energy self-generated
on the premises (Scope 1) and indirect market-based GHG emissions from the
energy delivered to commercial premises and from the energy consumed by
company cars (Scope 2).
The reduction of own operations GHG emissions covered by the goal is guided
by the LocalTapiola Group Own operations climate roadmap, which describes
the most important measures we need to take to achieve the goal by the end
of 2030. To prepare the emission reduction measures, we have used the SBTi
tool.
The key measures to reduce own operations GHG emissions include reducing
the energy consumption from the use of our commercial premises,
transitioning to renewable electricity at all premises where the electricity
contract is managed by LocalTapiola and reducing GHG emissions from
company cars. In 2025, we acquired district-heat Guarantees of Origin to
reduce emissions from commercial premises that we occupy for own use
where renewable district heat was not acquired under a specific contract or
where we as the lessee did not have an opportunity to influence the district
heat contract. The more detailed company-specific measures are described in
the LocalTapiola Group Own operations climate roadmap, and the most
important measures can be found in the table provided in section E1-3
Actions and resources in relation to climate change policies. When
determining the measures, consideration has been given to the goals of the
Paris Agreement. No significant quantitative resources have been allocated
to measures that support decarbonisation.  With regard to self-generated
energy and refrigerant leaks in our own commercial premises, and for the
fuels of our company cars, we monitor in Scope 1 emissions how GHG
emissions develop, as tonnes of carbon dioxide equivalent (tCO2e). With
regard to our own commercial premises, in Scope 2 emissions, we annually
monitor the following: emissions (tCO2e) from our commercial premises;
energy consumption in megawatt hours (MWh); and the amount (MWh) and
percentage (%) of renewable electricity in the electricity that we consume.
Our aim was to reduce, by the end of 2025, direct GHG emissions (Scope 1)
from company cars, from refrigerant leaks in our commercial premises and
from energy self-generated on the premises, by 37 per cent (-59 tCO2e) by
the end of 2025 from the 2021 level (159 tCO2e). In terms of indirect market-
based GHG emissions (Scope 2) from the energy delivered to commercial
premises and from the energy consumed by company cars, our aim was to
achieve a 60 per cent reduction (-655 tCO2e) by the end of 2025 from the
2021 level (1,092 tCO2e). By the end of 2025, we reduced Scope 1 emissions
by -27 tCO2e and Scope 2 emissions by -794 tCO2e. Our target was not met
with regard to Scope 1 emissions. The 2025 GHG inventory is not fully
comparable with the 2021 inventory. These targets do not cover the
investment real estate properties managed by the real estate division that
are reported in Scope 1 and 2 emissions. 2022 was the year when we set an
own operations climate goal for the first time.
We use the carbon footprint calculated both at group-wide level and on a
company specific basis to monitor the progress made with the own
operations climate goal. The achievement of the own operations GHG
emission reduction targets is influenced, inter alia, by reductions in emissions
from the Finnish energy sector and by the development of costs of energy-
efficient solutions and low-emission mobility.
Our own operations climate goal and our emission reduction actions support
the goals of the Paris Agreement and align with the SBTi cross-sector
pathway, which supports undertakings operating in different sectors to
determine a science-based target level. The targets have not been externally
validated.
Scope 1 and 2 climate goals of the LocalTapiola Group real estate division
For their part, the climate goals that the group’s real estate division has set
for its own Scope 2 emissions support LocalTapiola Group’s 2030 Scope 1
and 2 climate goal.
The LocalTapiola Group companies engaged in real estate operations,
LocalTapiola Real Estate Asset Management Ltd and LocalTapiola
Alternative Investment Funds Ltd (merged to Seligson & Co Fund
Management Company Plc on 31 December 2025), have signed the
international Net Zero Carbon Buildings Commitment (NZCB). The
Commitment aims to reduce operational emissions from real estate by 2025
(Scope 2). We attained the operational emission target in 2025, when we
transitioned to purchasing Guarantee-of-Origin certified renewable district
heat. For quite some time now, we have been procuring renewable electricity.
In 2025, we updated the real estate division’s climate goals for 2030:
• Scope 2: Starting in 2025, we will reduce GHG emissions from the
energy we purchase for the sites that we manage by 100% (-6,118
tCO2e) compared with 2024.
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66
• Scope 2: By the end of 2030, we will reduce GHG emissions from
tenant-acquired energy by 30% (-2,768 tCO2e) from 2024.
The target is measured as an absolute quantity.
GHG emissions from the real estate division’s energy consumption, reserve
power and refrigerants originate in the use of self-managed and leased-out
investment real estate properties. The emission sources for energy, reserve
power and refrigerants include delivered energy (electricity, district heat,
district cooling), fuel consumed by reserve power units and refrigerants
consumed by ventilation units. The GHG emissions generated from these are
included in LocalTapiola Group’s Scope 1 and 2 emissions (excl. own
operations emissions), in which we include the real estate investments of
which LocalTapiola Group owns more than 50 per cent. In Scope 3 category
13, we include the investment real estate properties in which ownership is
under 50 per cent, as well as the special mutual fund. We have not set climate
goals for emissions that they generate. Furthermore, LocalTapiola Group’s
Scope 2 emissions also cover most of the real estate sites where tenants are
responsible for procuring energy, because most of these sites are over 50 per
cent owned by LocalTapiola Group in 2025. A small amount of emissions from
sites where tenants are responsible for procuring energy is assigned to Scope
3 emissions, for LocalTapiola Group owns less than 50 per cent of them in
2025.
The real estate division’s Scope 2 emissions covered by the target account for
0.51 per cent of the emissions of LocalTapiola Group in 2025. Currently, the
2030 climate goal of the real estate division does not cover Scope 1
emissions.
The real estate division’s Scope 1 emissions arise from the use of fuel and
refrigerants of reserve power units. We can reduce these emissions by
switching to renewable fuel in reserve power units, monitoring refrigerant
leaks and endeavouring to minimise leaks by servicing the units, and by
switching to lower-emission refrigerants.
In real estate operations, we strive to reduce GHG emissions from the energy
that we purchase by increasing energy efficiency in properties, acquiring
renewable electricity and heat for properties and self-generating renewable
energy on the premises. We aim to contribute to reducing GHG emissions
from the energy that tenants purchase through discussions with tenants and
by collecting from tenants data on the energy that they acquire and on
consumption figures, and by also introducing related requirements into lease
agreement, when possible.
The achievement of the climate goal for the real estate division’s self-
purchased energy is facilitated by the fact that energy companies are
transitioning towards lower-emission energy sources, which improves the
availability of renewable district heat while reducing costs. Tenant and
investor demand for lower-emission properties has grown. We expect demand
to grow further due to clients’ own emission reduction targets. From the start
of 2025, the electricity and district heat that the real estate division
purchases for the sites which it manages are produced by renewable energy
sources, and district cooling is produced emission-free, which means that the
NZCB goal has been fulfilled.
In 2025, the real estate division attained its target to achieve a 100 per cent
reduction in emissions from the energy that it purchases, with these emissions
amounting to 0 tCO2e. It also met the target to achieve a 30 per cent
reduction in emissions from tenant‑procured energy, with the emissions
amounting to 4,029 tCO2e, compared to the 2024 level (9,228 tCO2e). In
2025, some of the properties covered by the target are Scope 3 category 13
emissions because ownership of the properties is under 50 per cent, but they
are nevertheless included in emissions covered by the target. The decrease in
emissions from tenant‑procured energy is mainly due to more refined
calculations based on the energy contracts provided by tenants.
In 2025, we specified our emission reduction targets for the integrated
LocalTapiola Group base year, which is the year 2024. In the NZCB
commitment, the base year for the real estate division’s emission reduction
target is 2022, when operational emissions (including refrigerant leaks) were
9,902 tCO2e. In 2025, we achieved the target for energy emissions, which are
0 tCO2e, and for refrigerants our emissions were 120.1 tCO2e.
Our climate goal has not been externally assured. Our goals, targets and
emission reduction actions support the goals laid down in the Paris
Agreement.
Scope 3 category 2 climate goal for 2030
Scope 3 category 2 climate goal of the LocalTapiola Group real estate
division
Under the Net Zero Carbon Buildings Commitment (NZCB), the LocalTapiola
Group companies engaged in real estate operations have also pledged to
reduce embodied GHG emissions by 2030. In 2025, we updated the real
estate division’s climate goals for 2030:
• Scope 3 category 2: For self-developed new construction projects, by
the end of 2030, we will achieve an emission intensity level that is
30% smaller than the regulatory level.
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67
This goal is measured on the basis of emission intensity, and the goal is
compared to the carbon footprint threshold defined in the Building Act.
Embodied GHG emissions are generated from the construction of new real
estate division-managed investment properties and from major renovations.
We calculate embodied GHG emissions arising from the construction of
investment properties in accordance with the ‘Method for the whole life
carbon assessment of buildings’ publication prepared by the Ministry of the
Environment. In calculating emissions, we take into account GHG emissions
across the entire construction life cycle, which divide into the product stage
(A1-3), the construction process (A4-5), the use stage (B) and the end-of-life
stage (C). Our reported embodied GHG emissions cover stages A1–A5, which
reflect the climate impacts of construction. In compliance with the NZCB
commitment, the target to reduce embodied emissions includes the product
stage and construction (A1-5). Embodied GHG emissions are included in
LocalTapiola Group’s Scope 3 category 2 emissions.
The real estate division’s Scope 3 category 2 GHG emissions covered by the
target account for 0 per cent of the emissions of LocalTapiola Group in 2025.
In 2025, there were no new construction projects which would have generated
emissions.
When building new real estate properties, and in major renovations, we
calculate the life-cycle carbon footprint for all new projects. In construction
projects, we will reduce construction-stage GHG emissions in the manner
required by law and, from 2030, in compliance with our climate goals. GHG
emissions of projects are compared to the thresholds set for the climate
statement required by the Building Act.
Reducing embodied GHG emissions is challenging, and it requires cooperation
between construction companies, designers, construction product
manufacturers and building owners. The sector is developing rapidly, and new
technical solutions for low-carbon construction are being constantly
developed. The new Building Act that entered into force in Finland at the
start of 2025 requires new construction projects from now on to draw up a
climate statement, in which the carbon footprint and handprint of the project
are calculated for the building’s 50-year life cycle. Furthermore, in 2026, for
new buildings, a so-called building type-specific ‘carbon budget’ will also be
set, which represents maximum thresholds for emissions. For many years
already, we have voluntarily been carrying out calculations required by
unfolding regulation, and our climate goal for construction activities is more
ambitious than what is demanded by regulation. 
In 2025, we specified our emission reduction targets for the integrated
LocalTapiola Group base year, which is the year 2024.
Our climate goal has not been externally assured.   
Scope 3 category 15 climate goals
The Scope 3 category 15 climate goals of LocalTapiola Group divide between
the investments of the group’s insurance companies, Asset Management
Group and insurance-related goals.  As an investor and a provider of finance,
we aspire to promote climate-sustainable solutions alongside other goals. In
the LocalTapiola Group sustainability programme, we have pledged to bring
financed GHG emissions down to net zero by 2050. This goal concerns the
group’s insurance companies’ own investments and the assets managed by
Asset Management Group.
The Scope 3 category 15 climate goals of LocalTapiola Group divide between
the investments of the group’s insurance companies, Asset Management
Group and insurance-related goals.
As an investor and a provider of finance, we aspire to promote climate-
sustainable solutions alongside other goals. In the LocalTapiola Group
sustainability programme, we have pledged to bring financed GHG emissions
down to net zero by 2050. This goal concerns the group’s insurance
companies’ own investments and the assets managed by Asset Management
Group.
Emissions generated from the investment portfolios of LocalTapiola Group
insurance companies are included in Scope 3 category 15 emissions of our
GHG inventory. The emission calculation of investment portfolios does not
yet cover all our asset classes. For 2025, we have improved the coverage of
the GHG inventory of investment operations by including sovereign debt as a
new asset class in emission calculation. In future, we will compare the target
for financed emissions to the baseline year, 2024. We describe LocalTapiola
Group’s investment net zero goal in further detail in this section under
Climate goals of the investment portfolios of LocalTapiola Group insurance
companies and in Climate goals of LocalTapiola Asset Management Group.
We want to support our insurance clients in the green transition, and to bring
insurance-associated GHG emissions down to net zero by 2050. In 2025, for
the first time, we include insurance-associated GHG emissions in Scope 3
category 15 emissions of the GHG inventory. We have calculated insurance-
associated emissions retrospectively for 2024, and in future will compare the
insurance-associated emissions target to the baseline year, 2024. The
insurance-associated emissions net zero target is described in further detail in
this section under Insurance-related climate goals.
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68
Climate goals of the investment portfolios of LocalTapiola Group insurance
companies
For GHG emissions generated from the investment portfolios of LocalTapiola
Group insurance companies, we have set a net zero target for 2050, which
supports the goals of the Paris Agreement. This goal also aligns with the goals
laid down in the LocalTapiola sustainability programme. GHG emissions from
LocalTapiola Group mutual insurance companies’ investments are calculated
for listed equities and corporate bonds and for sovereign bonds. We have
examined asset classes that are excluded from the emission calculation, and
identified currently available emission data and what kind of gaps there are
in emission data. Furthermore, we also examine how we could use estimate-
based calculation in the emission calculation for these asset classes.
Previously, we followed LocalTapiola Asset Management’s milestone. In 2025,
we set a new milestone, for 2030, for LocalTapiola Group insurance
companies’ listed equities and corporate bonds:
• By the end of 2030, we will reduce by 20% (-8,116 tCO2e) the Scope 1
and 2 emissions generated from the listed equities and corporate
bonds of LocalTapiola Life and LocalTapiola General compared to
2024 (40,582 tCO2e).
We measure this target as an absolute quantity, and will also specify the
target in the coming years. The figures exclude LocalTapiola Life’s unit-linked
policies. The financed GHG emissions covered by the target account for 12
per cent of the financed emissions of LocalTapiola Group in 2025. In 2025,
emissions from investments covered by the target were 48,586 tCO2e.
We will add asset classes to the milestone as adequately reliable data on
emissions becomes available and once the methodology exists for setting the
milestone in the asset class concerned. Currently, the milestone is not
science-based, and this will be developed as part of expanding the milestone
coverage.
Real estate investments are one major asset class among insurers’
investments. A majority of the real estate investment portfolios of the
LocalTapiola Group mutual insurance companies are real estate investments
managed by the LocalTapiola real estate division. These investments are
covered by the climate goals set by the LocalTapiola Group real estate
division, and the goals are described in further detail in the description of the
climate goals of the LocalTapiola Group real estate division above.
The metrics used in the targets determined for LocalTapiola Group insurance
companies’ investment portfolios have not been externally validated.
Climate goals of LocalTapiola Asset Management Group
Asset Management Group comprises several companies. Its parent company
is LocalTapiola Asset Management, and the subsidiaries are LocalTapiola Real
Estate Asset Management Ltd and Seligson & Co Fund Management
Company Plc, to which LocalTapiola Alternative Investment Funds Ltd was
merged in late 2025. In the same connection, portfolio management of the
LocalTapiola funds was transferred from Asset Management to Fund
Management Company.
Asset Management Group has joined the international Net Zero Asset
Managers initiative (NZAMi). Asset Management Group aims to bring GHG
emissions from investment AUM down to net zero by 2050 or sooner. This
target aligns with the goals laid down in the LocalTapiola sustainability
programme.
During 2025, NZAMi consulted asset managers and decided, in the
commitment updated in autumn 2025, to stress the position of asset
managers as managers of external assets. The commitment seeks to reduce
GHG emissions from investment AUM in line with the Paris Agreement. As a
manager of client assets, Asset Management Group favours the elaborations
which specify the role that clients play in achieving the goal.
Asset Management Group’s milestones, updated in 2025, by the end of 2030
are the following:
• We will reduce by 50% the carbon intensity of emissions from the
investment portfolios covered by the target, compared to 2019,
measured in tonnes of carbon dioxide equivalent (tCO2e) / USD
million portfolio company revenue (WACI).
• We will increase the share of climate-solution investments covered by
the target to 25 per cent.
The main target of Asset Management Group is measured as an absolute
quantity, with the milestones measured as relative quantities.
At the end of 2024, 60 per cent of the investment AUM fell within the scope
of our target, and a preliminary estimate on the proportion of investment
AUM covered by the target in 2025 is 62 per cent. The proportion of the
investment assets covered by the target in the AUM varies annually,
depending on investment allocation changes and changes in the value of
investment assets. In addition to the Seligson & Co equity and corporate
bond funds, the target takes into account the funds and portfolios which are
under the portfolio management of LocalTapiola Asset Management and
managed using direct equity and corporate bond investments. Asset
LocalTapiola General | Report of the Board of Directors for 2025
69
Management Group’s target does not cover fund of funds solutions,
sovereign debt or a majority of client portfolios. The target covers assets of
the group’s external clients and assets of group companies.
In the GHG inventory, we take into account only portfolio companies’ Scope 1
and 2 emissions. The NZAMi climate initiative goals are responsive to the Net
Zero Investment Framework (NZIF) methodology. We have not carried out
emission calculation or target setting for absolute emissions – instead, we use
carbon intensity, which is more suitable for investment instruments. In
calculating emissions, we use the latest GHG emissions reported by portfolio
companies themselves or figures or estimates reported for portfolio
companies by service providers well-known in the sector. We compare the
progress made with the target to the baseline year of 2019.
In terms of the portfolio investments covered by the milestone, the carbon
intensity of direct equity and corporate bond investments fell 52.9 per cent in
2024 and 44.6 per cent in 2025 compared to 2019. The 2019 baseline carbon
intensity was 133.3 tCO₂e/USD million, and a target was set to halve this by
2030. The target was attained in 2024, when the actual carbon intensity was
62.8 tCO₂e/USD million, but we failed to achieve the target in 2025, when the
carbon intensity was 73.9 tCO₂e/USD million.
The methodology for calculating carbon intensity was changed at the turn of
2024–2025 to one based on portfolio company revenue, replacing the
previous method that used proportioning to invested capital. The main factor
contributing to the achievement of the target in 2024 was the launch of the
Climate Index funds. At the end of 2024, climate solutions accounted for 17.2
per cent of all solutions, and at the end of 2025 this was 17.0 per cent.
Asset Management Group’s climate goals have not been externally assured.
LocalTapiola Asset Management implements Asset Management Group’s
climate goals
For an asset manager, the most important means to achieve Asset
Management Group’s goal is to support portfolio management clients in
setting net zero targets and including them in their investment portfolios.
Moreover, the target can be furthered by investment limitations, portfolio
investment choices and means of active ownership.
The employed exclusion principles apply to direct equity and corporate bond
investments that portfolio managers administer. Investments will not be
made, for example, in any mining or energy companies or public utilities that
contribute money to new coal, lignite or peat projects. Investments will not be
made in companies deriving more than twenty per cent of turnover from the
production of coal, lignite or peat or from their use in energy production. In
carbon intensive sectors, Asset Management may invest, in addition to those
with the best carbon footprint, in companies estimated to be among clear
improvers on the basis of data obtained from an external service provider.
These sectors include energy (oil and gas companies), public utilities, waste
management, aviation and shipping, and materials. Investment limitations do
not apply to green bond investments issued by any of the above companies.
Green bond investments support the green transition. Exceptions may also
occur in climate index investments, including the LocalTapiola Europe and
USA Climate Index funds, which comply with the limitations and weights of
the relevant Paris Agreement-aligned index.
Means of active ownership include voting at General Meetings, and
engagement both through investor collaborative engagement projects and
investor opinions and at portfolio managers’ company meetings. The
corporate governance policy of LocalTapiola Asset Management contains
more detailed information about how engagement projects are selected and
about the voting policy to be followed at General Meetings. The voting policy
is consistent with the tailored policy agreed with the asset management
company of a European mutual insurance undertaking and which contains
binding instructions for climate change mitigation and biodiversity loss
prevention. Furthermore, the Sustainable Investment Steering Group of Asset
Management Group has defined climate change mitigation and the
supporting of biodiversity as engagement priorities for 2025.
Alongside a financial analysis, portfolio managers prepare a sustainability
analysis for target companies, and in their sustainability analysis they
evaluate the target company’s most material sustainability risks. This analysis
is, in part, about risk management, but in evaluating the return-risk ratio
importance is also placed on current and future sustainability opportunities
from which the company may benefit through its operations or products and
services. Many of these opportunities relate to green transition solutions. At
company meetings, portfolio managers get to discuss directly with the
management and to put further questions.
LocalTapiola Asset Management uses carbon intensity (WACI) to measure
climate impacts of the investment portfolios that it manages, including the
LocalTapiola funds that are based on direct equity and corporate bond
investments. We calculate carbon intensity on a semi-annual basis in
accordance with the recommendations of the Taskforce on Climate-related
Financial Disclosures (TCFD) framework. Portfolio managers assess the
commitment of portfolio companies of direct equity and corporate bond
investments to the SBT emission reduction targets. As for the SBT data that
we use in reporting, we collect them from the initiative website. We report the
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70
commitments of the portfolio companies of LocalTapiola funds in the fund-
specific sustainability reviews available on the LocalTapiola Group website.
LocalTapiola Asset Management is participating in the following investor
collaborative engagement projects, among others: ClimateAction 100+, CDP
Non-Disclosure Campaign and the ISS Stoxx engagement project programme.
The ISS Stoxx programme comprises four thematic projects, one of which is
the Net Zero climate initiative. Through engagement projects, we can engage
our portfolio companies on a wider scale with regard to systemic risks such as
climate change.
Insurance-related climate goals of LocalTapiola Group
Traditionally, the insurance sector has provided protection against shocks to
the finances of clients. Recognition of the environmental and social impacts
of insured activities, such as climate impacts, is emerging alongside the
enabling of economic activities. In its role as sharer of risk, risk management
expert and major investor, the insurance sector plays a key part in
transitioning to a low-carbon economy. 
Insurance-associated GHG emissions are generated in the value chain of
insurers as GHG emissions from insured assets and from business operations.
These emissions are generated, inter alia, due to the activities of corporate
clients. GHG emissions arising from claim remediation activities are not
included in insurance-associated emissions. 
In its sustainability programme, LocalTapiola Group has pledged to bring
insurance-associated GHG emissions down to net zero by 2050. As insurance-
associated emissions are about GHG emissions generated from the activities
of entities in LocalTapiola’s insurance portfolio, the achievement of the
target is significantly affected, inter alia, by how widely and how quickly low-
emission solutions gain prominence and how our clients deploy them.
In 2025, we initiated the calculation of our corporate clients’ insurance-
associated GHG emissions, reporting insurance-associated emissions for the
first time as part of the LocalTapiola Group GHG inventory in the 2025
sustainability statement. In addition, we calculate our corporate clients’
insurance-associated GHG emissions retrospectively for 2024. At
LocalTapiola, the calculation of insurance-associated GHG emissions is
guided by the Insurance-Associated Emissions (Part C) standard guidance
prepared by the Partnership for Carbon Accounting Financials (PCAF), a
global financial-sector cooperation body. We have set 2024 to be the base
year for the insurance-associated emission target, and will continue to pursue
our efforts to define more specific emission reduction targets and emission
reduction actions while also developing our calculation methods. The target is
measured as an absolute quantity. 
7.2.2.1 ESRS E1-5 Energy consumption and mix
E1-5, 37; E1-5, 38; E1-5, 40; E1-5, 41; E1-5, 42; E1-5, 43; E1-5, AR32,
E1-5, AR33; MDR-M
In this sustainability statement, we report on both the energy consumption of
our own commercial premises and the energy consumption generated from
our activities in high climate impact sectors.
LocalTapiola has real estate asset management-related economic activities
in sectors defined as high climate impact sectors under Section L (Real estate
activities) in Annex I to Regulation (EC) No 1893/2006 of the European
Parliament and of the Council. For Section L economic activities, energy
consumption is generated from the upkeep of managed real estate
properties. The related energy consumption is monitored. The investment real
estate properties of which LocalTapiola Group companies own more than 50
per cent are considered falling under high climate impact economic activities.
Energy consumption consists of the electricity, district heat, district cooling
and reserve power unit fuels consumed in investment real estate properties,
and it also comprises the heat self-generated by heat pumps and the solar
power generated on the premises. The energy intensity (MWh/MEUR) of
LocalTapiola’s real estate asset management-related economic activities in
high climate impact sectors, and how the calculation of energy intensity is
matched to information presented in the financial statements, is shown in the
tables found at the end of this chapter.
In 2025, the LocalTapiola Group companies operated a total of 177
commercial premises occupied for own use, taking into account the premises
taken into and removed from use during the year. The energy consumption
(MWh) of our own commercial premises is monitored annually on a group-
wide level in respect of the consumption of electricity and heat. Energy
consumption is monitored either by measuring actual consumption or, where
actual consumption data are not available, by calculation. The heat
consumption in commercial premises is mainly monitored by calculation, but
for some premises measured consumption data are available. The energy
consumption (MWh) measurement has not been externally validated.
In 2025, our total energy consumption was 97,510 MWh. In 2025, the
proportion of renewable sources in our total energy consumption was 89 per
cent. Renewable electricity means electricity or heat which we have agreed by
agreement or for which we have acquired renewable-energy Guarantees of
Origin.
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71
Our energy consumption is illustrated in the following table, and it covers
energy consumption resulting from our own commercial premises as well as
from our investment real estate properties of which the group owns more
than 50 per cent.
In 2025, we expanded our GHG inventory by adding the real estate division’s
leased-out sites where tenants manage energy supply contracts
independently. As part of the base year re-calculations, we also re-calculated
energy consumption for 2024. In the table below, in connection with the 2025
figures, we report re-calculated energy consumption data for 2024. In 2024,
our total energy consumption was 141,821 MWh. In 2024, the proportion of
renewable sources in our total energy consumption was 41 per cent. We used
the updated energy consumption data (MWh) to update the 2024
operational energy intensity calculations for high impact climate sectors.
Own offices and company cars of LocalTapiola Group *,**
2024
2025
1) Fuel consumption from coal and coal products (MWh)
0
0
2) Fuel consumption from crude oil and petroleum products (MWh)
678
376
3) Fuel consumption from natural gas (MWh)
0
0
4) Fuel consumption from other fossil sources (MWh)
0
0
5) Consumption of purchased or acquired electricity, heat, steam,
or cooling from fossil sources (MWh)
79,897
9,703
6) Total fossil energy consumption (MWh) (calculated as the sum
of lines 1 to 5)
80,575
10,080
Share of fossil sources in total energy consumption (%)
57%
10%
7) Consumption from nuclear sources (MWh)
2,911
383
Share of consumption from nuclear sources in total energy
consumption (%)
2%
—%
8) Fuel consumption for renewable sources, including biomass (also
comprising industrial and municipal waste of biologic origin,
biogas, renewable hydrogen, etc.) (MWh)
0
0
9) Consumption of purchased or acquired electricity, heat, steam,
and cooling from renewable sources (MWh)
57,162
84,917
10) Consumption of self-generated non-fuel renewable energy
(MWh)
1,096
2,131
11) Total renewable energy consumption (MWh) (calculated as the
sum of lines 8 to 10)
58,258
87,047
Share of renewable sources in total energy consumption (%)
41%
89%
Total energy consumption (MWh) (calculated as the sum of lines
6, 7 and 11)
141,743
97,510
* Energy consumption includes the fuel consumed at offices occupied by LocalTapiola
Group for own use, the fuel consumed by company cars insofar as data for the
amount of fuel consumed have been available, and the electricity, heat and district
cooling consumed at LocalTapiola’s own offices. The energy consumption data for
own commercial premises are reported for the LocalTapiola head office, the premises
of the regional companies and the premises of Seligson and Finnish P&C Insurance Ltd
(a total of 195 premises as at 20 December 2024). The energy consumption data for
premises take into account all premises acquired and divested during the calendar
year, over the entire period for which the premises have been in use.
** Energy consumption for real estate operations includes the real estate companies
reported in Scopes 1 and 2.
*** Consumption of self-generated energy covers energy generated by heat pumps
and solar power.
LocalTapiola General | Report of the Board of Directors for 2025
72
Energy intensity associated with activities in
high climate impact sectors (MWh/Milj. €)
2024
2025
% N/N-1
908.9
748.9
82%
Net revenue from activities in high climate impact
sectors used to calculate energy intensity *
€117,171,109.46
Net revenue (other)
€2,564,229,237.74
Total net revenue (Financial statements)**
€2,681,400,347.20
* Includes net revenue from LocalTapiola’s real estate operations in Section L of
Annex I to Regulation (EC) No 1893/2006 of the European Parliament and of the
Council.
** For the definition of LocalTapiola Group’s net revenue (turnover), please see
section 11.4.1 of the Report of the Board of Directors.
The revenue, derived from activities in high impact climate sectors, that is
used in the calculation of energy intensity has also been updated for 2024 to
cover sites over whose energy contracts our real estate division does not
exercise control. The 2024 revenue used in the calculations is
€141,382,737.65.
7.2.2.1 ESRS E1-6 Gross Scopes 1, 2, 3 and Total
GHG emissions
E1-6, 44; E1-6, 47; E1-6, 48; E1-6, 49; E1-6, 50; E1-6, 51; E1-6, 52;
E1-6, 53; E1-6, 54; E1-6, 55; E1-6, AR 39; E1-6, AR 41; E1-6, AR 42;
E1-6, AR 43; E1-6, AR 45; E1-6, AR 46; E1-6, AR 48; E1-6, AR 50; E1-6,
AR 52; E1-6, AR 55, MDR-M, ESRS 2 BP-2; 10
Calculation of the GHG emissions of LocalTapiola Group, and the
methodologies, boundaries and emission factors applied for the calculation
We calculate the GHG emissions (tCO2e) of LocalTapiola Group in
accordance with the GHG Protocol Corporate Standard, monitoring it on an
annual basis. In calculating emissions, we take into account the direct (Scope
1) and indirect (Scope 2) emissions from our own operations as well as other
material indirect emissions (Scope 3) from the value chain of LocalTapiola
Group.
The GHG emission calculation covers the companies consolidated into the
consolidated financial statements of LocalTapiola General. The calculation
boundary is based on operational control as determined in the GHG protocol
and on financial control required by the ESRS standard. The emission
calculation takes into account the following: the value chains of LocalTapiola
Group in accordance with ESRS 1 standard section ‘5.1 Reporting undertaking
and value chain’, and the results of the double materiality assessment (ESRS 1
paragraphs from 62 to 67).
Turva Mutual Insurance Company, a subsidiary of LocalTapiola Group, is not
included in the consolidated financial statements of LocalTapiola Group, and
its Scope 1 and 2 emissions are disclosed, in accordance with E1-6 paragraph
50 (b), separately from the emissions of LocalTapiola Group. In 2025, Turva’s
Scope 1 emissions were 25 tCO2e, and marked-based Scope 2 emissions were
60 tCO2e and location-based Scope 2 emissions were 349 tCO2e.
As for Scope 1 and 2 emissions of the LocalTapiola Group associated
undertakings, Pihlajalinna Plc, Noja Holding Oy and Noja Rahoitus Oy, we
take them into account in category 15 of Scope 3 emissions because
LocalTapiola does not exercise operative control in these companies.
However, no emission data were available for Noja Holding Oy and Noja
Rahoitus Oy.
Regarding the housing and real estate companies consolidated into
LocalTapiola Group, we take them into account in Scope 1 and 2 emissions
when the group’s ownership is more than 50 per cent, in which case 100 per
cent of the GHG emissions from the real estate concerned is calculated as
attributed to LocalTapiola. The housing and real estate companies in which
ownership is less than 50 per cent, and special mutual fund portfolio
investments, are taken into account in Scope 3 category 13. Their GHG
emissions are taken into account in relation to ownership. For investment real
estate properties, excluded from the emission calculation are real estate
companies whose GHG emissions are not material (for example, plots), which
are not covered by the emission monitoring (for example, car parks), over
which the group does not exercise control or whose GHG emissions for some
other reason cannot be reported. The investment real estate properties
managed independently by regional companies are excluded from the
emission calculation because adequate data are not available. The fair value
of these regional companies’ real estate investment assets included in the
calculation is EUR 78.6 million, and they account for 2.9% of the real estate
investments of entire LocalTapiola Group from which assets excluded from
the emission calculation boundaries have been eliminated. For information
about other emission calculation boundaries, see the table below. 
In 2025, we added new emission sources to our calculation, and updated the
2024 GHG inventory to be the baseline year for our climate goals. As a result
of this, we re-calculated the 2024 GHG inventory, and report the 2024
emissions in table E1-6 AR 48. For the 2024 calculation, the real estate
LocalTapiola General | Report of the Board of Directors for 2025
73
business’s sites over whose energy contracts our real estate division does not
have operative control have been added as a new category. There are
approximately 20 sites of this kind. In 2024, ownership of these sites was over
50 per cent, and they were included in the group’s Scope 2 emissions. In 2025,
ownership of some sites was under 50 per cent, and the sites were taken into
account in Scope 3 Category 13 emissions.
We updated the operating-expenses emission calculation by using the group’s
consolidated financial statements figures (Scope 3, category 1). In terms of
the active data for claim remediation activity (Scope 3, category 11), we
transitioned from cash-basis calculation to accrual-basis compensation
payments. From 2024, emissions from vehicles financed by LocalTapiola
Finance Ltd are calculated by using the Financed Emissions (Part A)
calculation method for Motor Vehicle Loans provided in the Partnership for
Carbon Accounting Financials (PCAF) standard. These emissions are reported
in Scope 3 category 15, whereas the 2024 sustainability statement reported
them in Scope 3 category 11. From 2024, the Financed Emissions (Part A)
calculation method provided in the PCAF standard is used as the calculation
method for investments reported in Scope 3 category 15. Sovereign debt and
unit-linked products are new asset classes that we report as part of the GHG
inventory. For 2024, we also report insurance-associated emissions as a new
emission source in Scope 3 category 15. The method that we use for
calculating insurance-associated GHG emissions is the PCAF standard
Insurance-Associated Emissions (Part C) from 2024 on.
The following tables illustrate the boundaries and significant assumptions
related to calculating the emissions of LocalTapiola Group. The tables also
show the sources of the emission factors used as well as the planned
measures to improve the accuracy of emission calculation for Scope 1 and 2
and for the Scope 3 emissions assessed to be material that are therefore
included in the GHG inventory.
Direct (Scope 1) GHG emissions 
Source of
emissions
Calculation boundaries and significant
assumptions
Calculation criteria
Sources of emissions factors
Planned measures to
improve the accuracy
Fuels 
Covers CO2e emissions from the use of
vehicles owned or managed by
LocalTapiola Group (leasing cars).
Calculated as a product of car model-specific or fuel type-
based emission factors and kilometres driven. The amount of
fuel consumed is also utilised, if known.
Car manufacturers
Defra (2025). UK Government
GHG Conversion Factors for
Company Reporting.
Greenhouse gas reporting.
Conversion factors 2025: full set
(for advanced users). Tab:
Business travel, land.
Statistics Finland (2025). Fuel
classification.
-
Self-generation
of energy
Covers CO2e emissions from reserve
power unit use at investment real estate
properties and own premises.
Calculated as a product of the emission factor determined for
the type of fuel consumed and the refuelling-based amount
of fuel consumed.
Statistics Finland (2025). Fuel
classification.
-
Refrigerant leaks
Covers CO2e emissions from refrigerant
leaks at investment real estate properties
and own premises.
The calculation is based on the amount of refrigerant leaked,
determined from recharge quantities. Emission factors are
based on the GWP values of different refrigerants over a
period of 100 years.
IPCC 2021: Climate Change
2021: The Physical Science Basis.
Contribution of Working Group I
to the Sixth Assessment Report
of the Intergovernmental Panel
on Climate Change (AR6).
-
LocalTapiola General | Report of the Board of Directors for 2025
74
Energy indirect (Scope 2) GHG emissions 
Source of
emissions
Calculation boundaries and significant
assumptions
Calculation criteria
Sources of emissions factors
Planned measures to
improve the accuracy
Electricity,
market-based 
Covers CO2e emissions from the
production of electricity consumed at
investments real estate properties and at
commercial premises occupied by the
LocalTapiola Group companies, and
CO2e emissions from the production of
electricity consumed by company cars.
Biogenic CO2 emissions are not included
in the calculation, but other biogenic
GHGs are.
Investment real estate properties and commercial premises:
The amount of electricity consumed (MWh) is based on
measured consumption or, if this is not available,
consumption is estimated by calculation on the basis of
surface area and LocalTapiola Real Estate Asset
Management’s estimate of the specific electricity
consumption of the premises. For purchased electricity, the
emission factor is based on the electricity supply contract. In
the case of acquired electricity when there is no specific
knowledge of the electricity supply contract or the electricity
supplier, we use the 2024 emission factor for residual energy
mix reported by the Energy Authority.
Electric cars: Emissions are calculated as a product of the
average electricity generation emission factor of Finland and
the kilometres driven with electric cars.
Energy companies, Statistics
Finland 2025 and the
Energy Authority 2024
Specify the type and
energy company of
electricity contracts
of sites occupied for
own use.
Electricity,
location-based 
Covers CO2e emissions from the
production of electricity consumed at
investments real estate properties and at
commercial premises occupied by the
LocalTapiola Group companies, and
CO2e emissions from the production of
electricity consumed by company cars.
Biogenic CO2 emissions are not included
in the calculation, but other biogenic
GHGs are.
Investment real estate properties and commercial premises:
For electricity consumption, the calculation is as with market-
based, but the average electricity generation emission factor
of Finland (the sliding 5-year average) for 2025 is the
emission factor used.
Electric cars: Emissions are calculated using the average
electricity generation emission factor of Finland (the sliding
5-year average) and the kilometres driven with electric cars.
Statistics Finland 2025
-
LocalTapiola General | Report of the Board of Directors for 2025
75
Energy indirect (Scope 2) GHG emissions 
Source of
emissions
Calculation boundaries and significant
assumptions
Calculation criteria
Sources of emissions factors
Planned measures to
improve the accuracy
Heat, market-
based 
Covers CO2e emissions from the
production of heat consumed at (self-
managed and leased out) investment real
estate properties and at commercial
premises occupied by the LocalTapiola
Group companies.
For our own commercial premises,
biogenic CO2 emissions are not included
in the calculation, but other biogenic
GHGs are.
For investment real estate properties,
biogenic CO2 emissions are not included
in the calculation, but other biogenic
GHGs are in respect of properties for
whose heat consumption no Guarantees
of Origin have been acquired.
Heat consumption (MWh) is based on measured consumption
or, if this is not available, consumption is estimated by
calculation on the basis of surface area and the estimated
specific heat consumption of the premises. The emission
factor is based on contracts or municipality-specific district
heat emission factors (the efficiency method).
The District Heat Emissions
Calculator maintained by Local
Power
Developing the
monitoring of
measured district
heat consumption.
Heat, location-
based 
Heat consumption (MWh) is based on measured consumption
or, if this is not available, on surface area-based apparent
consumption and the estimated specific heat consumption of
the premises. The average heat generation emission factor of
Finland (the sliding 5-year average) for 2024 is the emission
factor used.
Statistics Finland 2024
-
District cooling,
market-based 
Covers CO2e emissions from the district
cooling consumed at investment real
estate properties and at commercial
premises occupied by the LocalTapiola
Group companies.
District cooling consumption (MWh) is determined by
calculation on the basis of the building square meterage in
use. The emission factor used is the district cooling supplier’s
emission factor.
Energy companies
-
District cooling,
location-based 
Other indirect (Scope 3) GHG emissions 
Source of
emissions
Calculation boundaries and significant
assumptions
Calculation criteria
Sources of emissions factors
Planned measures to
improve the accuracy
Category 1:
Purchased goods
and services 
Covers the products and services
purchased by LocalTapiola Group
companies, and the energy consumption
of server rooms. Delivered energy of
commercial premises is included in Scope
2. Does not cover waste management
costs. LTC Otso is taken into account for
emission calculation purposes through
purchases made by LocalTapiola from
LTC Otso.
Calculated as a product of the book value of acquisitions and
the emission factor determined for each category of
acquisition. The emission factor for the energy consumption
of server rooms is based on the type of electricity acquired by
the entity managing the server rooms, and for sites where the
entity’s electricity type is not known, the emission factor that
we use is the average electricity generation emission factor of
Finland (the sliding 5-year average) for 2025.
EPA 2022
Manager of server rooms
Statistics Finland 2025
-
LocalTapiola General | Report of the Board of Directors for 2025
76
Other indirect (Scope 3) GHG emissions 
Source of
emissions
Calculation boundaries and significant
assumptions
Calculation criteria
Sources of emissions factors
Planned measures to
improve the accuracy
Category 2:
Capital goods 
Covers the long-term car acquisitions
made by LocalTapiola Group companies,
and investments made by the
LocalTapiola real estate division for new
construction and repair construction
projects.
Car acquisitions: Based on the number of cars acquired and
the type-specific emission factor.
New construction developments: Based on the site-specific
life-cycle carbon footprint calculated in accordance with the
Ministry of the Environment’s valid assessment method.
Repair construction: calculated as a product of the
investments made for repair construction and EPA’s
applicable emission factors.
Car acquisitions:
Autokalkulaattori
New construction: Calculations
by the LocalTapiola real estate
division (no constructed sites in
2025)
Repair construction: EPA 2022
-
Category 5:
Waste generated
in operations
Category 6:
Business travel
Covers the LocalTapiola Group
companies’ kilometre-reimbursed
business travel by car, overnight hotel
accommodation for contract hotels, and
centrally booked flights and train
journeys. The calculation does not cover
flights and train journeys personally
booked by staff.
Emissions from kilometre-reimbursed travel by car are
calculated as a product of the amount of travel (km) and the
average passenger car emission factor. Emissions from air
travel are based on a supplier-specific emission report.
Overnight hotel accommodation is based on the number of
overnight hotel accommodation and the applicable emission
factors. Emissions from rail travel are calculated as a product
of the purchases made (€) and the emission factor for
electricity acquired by VR.
Kilometre-reimbursed travel by
car: Defra 2025
Overnight hotel
accommodation: Statistics
Finland 2024, EEA 2024 and
EPA 2015
Rail travel: VR
Travel by air: Defra 2025
-
Category 7:
Employee
commuting
Covers CO2e emissions from employee
travelling between home and workplace
and from telework.
Emissions from travelling are based on the 2025 mobility
survey carried out for staff. Emissions from telework are
based on the share of telework reported for 2025 and on the
electricity consumption of computers (MWh). The average
electricity generation emission factor of Finland (the sliding
5-year average) for 2025 is the emission factor used.
Emissions from buses, coaches
and passenger cars: Defra
(2025). UK Government GHG
Conversion Factors for
Company Reporting.
Greenhouse gas reporting.
Conversion factors 2025: full set
(for advanced users).
Statistics Finland 2025
-
Category 11: Use
of sold products
Includes emissions from the claim
remediation activity of the LocalTapiola
Group insurance companies. Paid claims
include all types of compensation and all
claims paid to customers. Emissions are
calculated for claim remediation in its
entirety, that is to say, customer
deductibles are not deducted from the
compensation amounts.
The calculation is based on accrual-basis compensation
amounts, that is to say, it covers emissions from the
remediation of claims that have arisen during 2025. The
calculation is based on the amount of paid compensation
sums (€) and on the emission factors determined for different
kinds of activities of claim types.
EPA 2022
-
LocalTapiola General | Report of the Board of Directors for 2025
77
Other indirect (Scope 3) GHG emissions 
Source of
emissions
Calculation boundaries and significant
assumptions
Calculation criteria
Sources of emissions factors
Planned measures to
improve the accuracy
Category 13:
Downstream
leased assets
Covers operational Scope 1 and 2 CO2e
emissions from the LocalTapiola real
estate division-managed real estate
properties in which the group’s ownership
is less than 50%, and Scope 1 and 2
emissions from the properties of the
special mutual fund. 
The calculation is based on measured data on the properties’
electricity, heat and fuel consumption and refrigerant leaks
or, if no data are available, on estimated consumption
according to surface area. The emission factors are based on
contracts signed with energy suppliers or on the residual
energy mix.
Data reported by the
LocalTapiola real estate division
Biogenic emissions: Defra
(2025). UK Government GHG
Conversion Factors for
Company Reporting.
Greenhouse gas reporting.
Conversion factors 2025: full set
(for advanced users).
-
Category 15:
Investments 
Investment: Covers indirect Scope 1 and 2
CO2e emissions from the listed equity
and corporate bond investments,
government bonds and unit-linked
products of the LocalTapiola Group
companies, with the exception of
derivatives and cash held outside the
funds. The calculation does not cover all
asset classes, including, for example,
private equity investments or investment
loans. Also includes Scope 1 and/or 2
CO2e emissions of the LocalTapiola-
owned joint ventures and associates over
which LocalTapiola does not exercise
control.
Finance: Covers operational CO2e
emissions generated during the reporting
year by vehicles financed by LocalTapiola
Finance Ltd.
Insurance: Covers LocalTapiola Group’s
indirect Scope 1 and 2 CO2e emissions
associated with commercial lines
portfolios
Investments: the calculation is based on the methodology
determined for applicable asset classes in Financed Emissions
(Part A) of the PCAF standard. The calculation covers
portfolio investments’ Scope 1 and 2 emissions, which are
either CO2e emissions reported by the portfolio investments
themselves for 2023 or, where these have not been available,
CO2e emissions estimated by MorningStar.
Financed vehicles: the calculation is based on the PCAF
Financed Emissions (Part A) Motor Vehicle Loans
methodology.
Commercial lines portfolios: the calculation is based on the
PCAF Insurance-Associated Emissions (Part C) methodology.
The calculation includes indirect Scope 1 and 2 emissions from
insured assets.
Investments: Morningstar
Systainalytics 2025
LocalTapiola’s joint ventures
and associates over which
LocalTapiola does not exercise
control: emissions reported by
the companies themselves for
2024 insofar as data on
emissions have been available.
Financed vehicles: Car-specific
emission factor according to the
Traficom vehicle register.
Emissions from electric vehicles
according to the electricity
generation emission factor of
Finland.
Commercial lines portfolios:
PCAF database (CEDA, 2024),
company-specific emission data
LocalTapiola General | Report of the Board of Directors for 2025
78
A small number Scope 3 emissions categories are excluded from the GHG
inventory of LocalTapiola Group. For GHG protocol-compliant Scope 3
upstream emissions, category 4 ‘Upstream transportation and distribution’
and category 8 ‘Upstream leased assets’ are excluded from the calculation,
for the activities of LocalTapiola Group do not involve major upstream
transportation or distribution or leased assets. For the time being, upstream
Scope 3 category 3 Fuel- and energy-related emissions have been excluded
from the emission calculation due to a low consumption of fuel and energy
and because of the accuracy of the data available from energy companies.
The materiality of this category will be assessed as part of the next GHG
inventory. With regard to downstream emissions, categories 9 ‘Downstream
transportation’, 10 ‘Processing of sold products’ and 12 ‘End-of-life
treatment of sold products’ are excluded from the calculation, for the
activities of LocalTapiola Group do not involve any major product-related
transportation, processing or end-of-life treatment. Also excluded from the
calculation is category 14 ‘Franchises’, for even though LocalTapiola Group
does engage in franchising, its relevance for emissions is estimated to be low,
and we take some of the commercial premises occupied for franchising
purposes into account in Scope 2 emissions.
In part, GHG emissions of LocalTapiola Group are calculated by an external
entity; LocalTapiola Group itself calculates the majority of Scope 3 category
15 emissions. The calculation of GHG emission and the measurement of
metrics have not been externally validated.
GHG emissions of LocalTapiola Group
In 2025, the total marked-based GHG emissions of LocalTapiola Group were
766,880 tCO2e.
LocalTapiola Group’s direct Scope 1 GHG emissions were 252 tCO2e.
LocalTapiola Group does not have any Scope 1 emissions from regulated
emission trading schemes. Nor does LocalTapiola Group have any biogenic
CO2 emissions included in Scope 1 emissions.
LocalTapiola Group’s indirect market-based Scope 2 emissions were 4,189.3
tCO2e, and location-based Scope 2 emissions were 10,960.3 tCO2e. Scope 2
biogenic CO2 emissions were 1,207 tCO2 in 2025. In section E1-5 Energy
consumption and mix, we report the proportions of the consumption of
renewable electricity and heat in total energy consumption.
In  2025, our indirect Scope 3 emissions from our value chain were 762,438.2
tCO2e. Our greatest Scope 3 emissions were from investments (80.5 per
cent), the use of sold products (16.3 per cent) and purchased goods and
services (1.9 per cent).
The share of our Scope 3 emissions that is calculated using primary data
obtained from suppliers or other value chain partners is 20.9 per cent.
In the LocalTapiola Group value chain, biogenic emissions of CO2e from the
combustion or bio-degradation of biomass may be generated, inter alia, from
the operational energy consumption in our own commercial premises and in
properties owned by real estate companies consolidated into the financial
statements. They may also be generated from the activities of portfolio
companies. We monitor biogenic GHG emissions for LocalTapiola real estate
division-managed category 13 properties for which no renewable-energy
Guarantees of Origin have been acquired. These biogenic CO2 emissions from
our value chain were 3,457.2 tCO2 in 2025.
The table below illustrates the GHG emissions of LocalTapiola and related
targets. In the table, we report only on group-wide scope-specific targets.
LocalTapiola’s all climate goals are described in section E1-4 Targets related
to climate change mitigation and adaptation. Emission calculation
boundaries and methods are described in tables found earlier in this section
(E1-6).
LocalTapiola General | Report of the Board of Directors for 2025
79
Total emissions
Retrospective
Milestones and target years
Base year
(2024)
Comparative
(2024)
2025
% N / N-1
2030*
(2050)
Annual % target /
Base year
Scope 1 GHG emissions
Gross Scope 1 GHG emissions (tCO2e)
266
266
252
94.8%
154
—
7.5%
Gross Scope 1 GHG emissions, excl. real estate operations
149
149
132
88.6%
—
—
—%
Gross Scope 1 GHG emissions, real estate operations
117
117
120
102.8%
—
—
—%
Percentage of Scope 1 GHG emissions from regulated emission trading schemes
(%)
—
—
—
—%
—
—
—%
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions (tCO2e) *
16,844
16,844
10,960
65.1%
—
—
—%
Gross location-based Scope 2 GHG emissions, excl. real estate operations
1,527
1,527
1,011
66.2%
—
—
—%
Gross location-based Scope 2 GHG emissions, real estate operations ***
15,316
15,316
9,949
65.0%
—
—
—%
Gross market-based Scope 2 GHG emissions (tCO2e) *
16,105
16,105
4,189
26.0%
8,052
—
—%
Gross market-based Scope 2 GHG emissions, excl. real estate operations
758
758
298
39.3%
—
—
—%
Gross market -based Scope 2 GHG emissions, real estate operations ***
15,346
15,346
3,891
25.4%
—
—
—%
Scope 3 GHG emissions (categories)
Total Gross indirect (Scope 3) GHG emissions (tCO2e)
718,478
718,478
762,438
106.1%
—
—
—%
1 Purchased goods and services [Optional sub-category: Cloud computing and data
centre services
12,804
12,804
14,786
115.5%
—
—
—%
2 Capital goods ***
3,753
3,753
3,181
84.8%
—
—
—%
3 Fuel and energy-related Activities (not included in Scope1 or Scope 2)
—
—
—
—%
—
—
—%
4 Upstream transportation and distribution
—
—
—
—%
—
—
—%
5 Waste generated in operations
666
666
933
140.2%
—
—
—%
6 Business travel
1,344
1,344
1,458
108.5%
—
—
—%
7 Employee commuting
3,400
3,400
4,007
117.9%
—
—
—%
8 Upstream leased assets
—
—
—
—%
—
—
—%
9 Downstream transportation
—
—
—
—%
—
—
—%
10 Processing of sold products
—
—
—
—%
—
—
—%
11 Use of sold products
143,223
143,223
124,329
86.8%
—
—
—%
12 End-of-life treatment of sold products
—
—
—
—%
—
—
—%
13 Downstream leased assets ****
1,385
1,385
250
18.0%
—
—
—%
14 Franchises
—
—
—
—%
—
—
—%
LocalTapiola General | Report of the Board of Directors for 2025
80
Total emissions
Retrospective
Milestones and target years
Base year
(2024)
Comparative
(2024)
2025
% N / N-1
2030*
(2050)
Annual % target /
Base year
15 Investments *****
551,904
551,904
613,494
111.2%
—
—
—%
Motor vehicle finance
137,375
137,375
148,489
108.1%
—
—
—%
Investments**
363,837
363,837
411,450
113.1%
—
—
—%
LocalTapiola Group’s associated undertakings***
1,217
1,217
633
52.0%
—
—
—%
Insurance****
49,474
49,474
52,922
107.0%
—
—
—%
Total GHG emissions
Total GHG emissions (location-based) (tCO2e)
735,587
735,587
773,651
105.2%
—
—
—%
Total GHG emissions (market-based) (tCO2e)
734,848
734,848
766,880
104.4%
—
—
—%
*For 2030, we have set LocalTapiola Group’s Scope 1 and 2 emission targets, which consist of own operations targets and the real estate division’s targets. In future, we will be
reporting on the progress made with the target on a group-wide level, but in section E1-4 Targets related to climate change mitigation and adaptation, we provide a breakdown of the
progress made with the targets regarding both our own operations and the real estate division, including progress towards the target set for 2021–2025.
** Emissions include indirect Scope 1 and 2 emissions from portfolio investments. In accordance with the PCAF guideline, we report Scope 3 emissions from portfolio investments
separately as supplementary information. In 2024, Scope 3 emissions from portfolio investments were 1,875,981 tCO2e, and in 2025 they were 2,054,892 tCO2e.
*** Includes Scope 1 and 2 emissions of the LocalTapiola Group associated undertakings over which LocalTapiola does not exercise operative control.
**** Emissions include indirect Scope 1 and 2 emissions from the undertakings insured by group companies. In accordance with the PCAF guideline, we report Scope 3 emissions
associated with commercial lines portfolios separately as supplementary information. In 2024, Scope 3 emissions associated with commercial lines portfolios were 95,596 tCO2e, and
in 2025 they were 59,922 tCO2e.
GHG intensity based on net revenue
In 2025, LocalTapiola Group’s market-based GHG intensity was 286.0 tCO2e
per one million euros, and the location-based GHG intensity was 288.5 tCO2e
per one million euros. The net revenue used in the calculation is calculated in
accordance with the regulations and guidelines of the Financial Supervisory
Authority (FIN-FSA). The formula for calculating net revenue is presented in
the financial statements in section 11.4.1 General key figures describing
financial development.
In the table below, we show LocalTapiola Group’s GHG intensity (tCO2e /
MEUR) in relation to net revenue. The  2025 GHG intensity reflects the data
reported for 2025. Here we also report the re-calculated GHG intensity for
2024.
GHG intensity per net revenue
2024
2025
% N / N-1
Total GHG emissions (location-based) per net
revenue (tCO2e/€)
249.9
288.5
115.5%
Total GHG emissions (market-based) per net revenue
(tCO2e/€)
249.6
286.0
114.6%
Retrospective reporting of 2024 emissions
In late 2025, we re-calculated the GHG emissions for 2024. In future, we will
be monitoring the development of our GHG emissions in relation to the
common group-wide baseline year, 2024.
LocalTapiola Group’s direct Scope 1 emissions in 2024 were 266 tCO2e. 
Our indirect market-based Scope 2 emissions from own operations in 2024
were 16,105 tCO2e, and our location-based Scope 2 emissions were 16,844
tCO2e. Scope 2 biogenic CO2 emissions were 9,625 tCO2 in 2024. In section
E1-5 Energy consumption and mix, we report the proportions of the
consumption of renewable electricity and heat in total energy consumption.
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In 2024, our indirect Scope 3 emissions from our value chain were 718,478
tCO2e. Our greatest Scope 3 emissions were from investments (76.8 per cent),
the use of sold products (19.9 per cent) and purchased goods and services (1.8
per cent).
The 2024 emissions, by category, are illustrated in table E1-6, AR 48.
GHG intensity based on net revenue for 2024
LocalTapiola Group’s re-calculated market-based 2024 GHG intensity was
250 tCO2e per one million euros, and the location-based GHG intensity was
250 tCO2e per one million euros. The net revenue used in the calculation is
calculated in accordance with the regulations and guidelines of the Financial
Supervisory Authority (FIN-FSA). The formula for calculating net revenue is
presented in the financial statements in section 11.4.1 General key figures
describing financial development.
7.2.2.1 ESRS E1-7 GHG removals and GHG
mitigation projects financed through carbon credits
E1-7, 56; E1-7, 58; E1-7, 58; E1-7, 59; E1-7, 61; E1-7, AR 60; E1-7,
AR61; E1-7, AR62, MDR-M
For the time being, as part of achieving our climate goals, we do not use any
GHG removals or GHG mitigation projects financed through carbon credits.
We have acquired carbon offset credits for our 2025 Scope 1 and 2 emissions
from own operations (excl. the real estate division). The real estate division
has also acquired carbon offset credits for its Scope 1 and 2 emissions which
could not be avoided. In addition, LocalTapiola Finance cancelled its
previously acquired carbon offset credits that had not been cancelled yet,
amounting to the GHG emissions from the use of certain cars in Finance’s
portfolio. All carbon offset credits are produced outside the LocalTapiola
Group value chain.
As required under the sustainability reporting standard, we report our
acquired carbon offset credits separately from LocalTapiola Group’s GHG
emissions that are reported in section E1-6, and the carbon offset credits are
not included in the calculation of our climate goals.
We have devised a common model for the group to acquire carbon offset
credits in 2025. Carbon offset credits must align with regulation and good
practices, and they need to remove carbon from the atmosphere for as long
as possible. In the current market situation, our criteria are best satisfied by
carbon offset credits that are certified by the Finnish Puro.earth platform
and derive from biochar projects. Furthermore, if possible financially,
availability-wise and in terms of the quality of projects, we primarily acquire
carbon offset credits produced in Finland and, secondarily, in the EU. Where
this is not possible, carbon offset credits produced elsewhere in the world may
also be acquired. Voluntary carbon markets are surrounded by various
uncertainties related, inter alia, to supply and regulation, which may make it
more difficult to acquire carbon offset credits that comply with good
practices.
Carbon offset credits acquired for financed cars
LocalTapiola Finance has acquired UN-issued Certified Emission Reductions
(CERs) to cover emissions from the use of cars financed by LocalTapiola
Finance. CERs have been acquired for LocalTapiola Finance-financed cars
whose calculated emissions are under 160 gCO2/km and whose motor liability
insurance cover has been taken out with LocalTapiola. Emissions from
financed cars are included in LocalTapiola Group’s GHG inventory Scope 3
category 15, which also includes emissions generated from other LocalTapiola
Finance-financed vehicles that are not covered by the carbon offsetting
programme.
In 2024, LocalTapiola Finance purchased CERs worth 50,000 tCO2e, and they
derive from the following renewable energy project located in India: Bundled
Wind Power Project in Jamnagar, Gujarat. The details of emission reductions
can be publicly verified at the UN Carbon Offset Platform website, under
project ID 4964. For the needs of the carbon offsetting programme,
LocalTapiola Finance has acquired a total of 470,477 tCO2e in CERs through
the UN Carbon Offset Platform website.
In 2025, no more CERs were purchased because the CERs acquired previously
are enough to cover the 2025 need. 2025 emissions were offset with
previously acquired CERs derived from the following renewable energy
projects: Maibarara Geothermal Power Project (the Philippines, project code
8960), 5 MW Solar Power Project by Baba Group (India, project code 10 360)
and Bundled wind power project at Satara, Maharashtra (India, project code
9927). According to the current estimate, the amount of CERs of previous
years is enough to cover the lifecycle emissions of all cars belonging to the
carbon offsetting programme. The acquired CERs have been produced
outside the EU, and they have been produced outside the LocalTapiola Group
value chain.
The amount of needed CERs was anticipated by estimating, in advance,
operational emissions from the cars covered by the carbon offsetting
programme. For the cars covered by CER acquisition, their specific
consumption figures were retrieved from the system maintained by Traficom.
The average mileage (13,794 kilometres per year) published by Traficom and
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82
Statistics Finland was used to estimate the annual consumption of cars. In
addition, we have taken into account the average financing contract term,
which is 24 months. The amount of CERs to be purchased for the following
year was estimated in compliance with the annual wheel in October. In
estimating the CER need for the following year, we have taken into account
the CERs purchased according to the calculation carried out for the previous
period and from which the emissions realised during the period have been
deducted. We acquired the CERs through the UN Carbon Offset Platform.
In 2025, LocalTapiola Finance decided to terminate, as of 1 January 2026, its
carbon offsetting programme that had been running since 2019. However,
the carbon offsetting programme will continue unchanged for financing
contracts that were concluded before the end of 2025 and that were covered
by the carbon offsetting programme. LocalTapiola Finance will continue to
pursue climate efforts and find means to reduce emissions from motoring. For
more information about the carbon offsetting programme and its
termination: https://www.lahitapiola.fi/henkilo/rahoitus/autorahoitus/.
Carbon offset credits acquired by the real estate division
At the beginning of 2026, the LocalTapiola real estate division acquired
PURO-certified carbon offset credits worth 122 tCO2e generated in a biochar
project. The acquired carbon offset credits cover the real estate division’s
2025 Scope 1 emissions (excl. emissions from own operations). The acquired
carbon offset credits were produced outside the LocalTapiola Group value
chain.
The acquisition of carbon offset credits relates to the Net Zero Carbon
Buildings Commitment that the real estate division has signed, according to
which the real estate division’s Scope 1 emissions, that is, emissions from the
fuel consumed by the reserve power and the evaporation of the refrigerants
which it possesses, must be offset. Carbon offset credits have been acquired
amounting to the refrigerant emissions of nine properties. Carbon offset
credits worth 122 tCO2e were acquired in accordance with the emission
calculation carried out by the real estate division, whereas the corresponding
share of emissions in the sustainability statement is 120 tCO2e. This
difference is due to discrepancies in the emission factors used; in addition,
the emission calculation carried out by the real estate division includes one
extra property that is excluded from the sustainability statement
calculations.
The carbon offset credits acquired by the real estate division originate from
Exomad Green’s PURO-certified biochar project located Riberalta, Bolivia.
The Retirement Statement can be verified in the Puro.earth Registry: https://
retirements.puro.earth/retirement-statement/
fd31a551-2464-4101-8c43-4521b106e626.
The acquired carbon offset credits are reported separate from GHG
emissions, in compliance with the ESRS standards, and they are not included
in the official emission-target calculation. For carbon offset credits, we take
into account established quality standards, including Puro.earth’s criteria, in
order to ensure the credibility and permanence of the climate impacts of
credits. The use of biochar carbon units supports our climate change
mitigation commitment, particularly in situations where direct emission
reductions are not technically or financially practicable.
The real estate division has a framework agreement in place for acquiring
carbon offset credits. The real estate division will also acquire carbon offset
credits in the coming years in an amount corresponding to its own Scope 1
emissions (excl. own operations emissions).
Carbon offset credits acquired for own operations emissions
In 2025 and at the beginning of 2026, LocalTapiola Group acquired a total of
323 tCO2e of PURO-certified carbon offset credits generated in a French
biochar project. Our target was to acquire carbon offset credits in an amount
equivalent to the 2025 own operations Scope 1 and 2 (excl. the real estate
division) emissions. We use all the carbon offset credits acquired to cover
2025 Scope 1 and 2 emissions. We also intend to acquire more carbon offset
credits during 2026 because own operations Scope 1 and 2 emissions were
greater than expected at 430 tCO2e. The additional carbon offset credits to
be acquired during 2026 are intended to cover the remaining own operations
Scope 1 and 2 emissions (107 tCO2e), and we will be reporting on them in the
2026 sustainability statement. 
The carbon offset credits that we have acquired originate from the French
Four Bordet biochar project. The Retirement Statement can be verified in the
Puro.earth Registry: https://retirements.puro.earth/retirement-
statement/9a3fba65-9eea-4e50-96a5-b1107563c14c. The carbon offset
credits that we have acquired serve as a supplementary climate action,
supporting our own operations (Scope 1 and 2, excl. the real estate division)
climate goal, in accordance with which, alongside emission reductions, we
acquire carbon offset credits in an amount corresponding to hard-to-abate
emissions. The use of biochar carbon units supports our climate change
mitigation policies, particularly in situations where direct emission reductions
are not technically or financially practicable. The carbon offset credits that
we acquire are produced outside the LocalTapiola Group value chain.
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LocalTapiola Group has no valid agreements for own operations emissions on
the basis of which we could calculate the amount, in tonnes of carbon dioxide
equivalent, of carbon offset credits to be cancelled in the future.
Carbon credits cancelled in the reporting year
2024
2025
Total (tCO2e)
100,000
50,445
Share from removal projects (%)
—%
0.9%
Share from reduction projects (%)
100.0%
99.1%
Carbon credits aligned with the United Nations
Framework Convention on Climate Change (%)
100.0%
100.0%
Share from projects within the EU (%)
—%
0.6%
Share of carbon credits that qualifies as a
corresponding adjustment under Article 6 of the Paris
Agreement
—%
—%
7.2.2.1 ESRS E1-8 Internal carbon pricing
E1-8, 62
LocalTapiola Group does not apply internal carbon pricing.
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7.3 ESRS S Social information
In the Social information section of this sustainability statement, we examine
sustainability topics S1 Own workforce and S4 Consumers and end-users.
7.3.1 ESRS S1 Own workforce
LocalTapiola Group’s own workforce-related material impacts, risks and
opportunities are described in further detail in section SBM-3 Material
impacts, risks and opportunities and their interaction with strategy and
business model. Material impacts, risks and opportunities in brief:
• Other work-related rights
◦ Security breaches of workers’ personal data
• Working conditions
◦ Anticipation of workers’ working capacity risks
◦ Worker wellbeing and employee experience
◦ Realisation of workers’ rights
◦ Development of policies and approaches within the work
community
• Equal treatment and equal opportunities for all
◦ Development of workers’ competences
◦ Unequal treatment of workers and job-seekers based on sex
◦ Workers’ unequal pay. 
In section S1 Own workforce, we provide information on the following
Disclosure Requirements:
• S1-1 Policies related to own workforce
• S1-2 Processes for engaging with own workers and workers’
representatives about impacts
• S1-3 Processes to remediate negative impacts and channels for own
workers to raise concerns
• S1-4 Taking action on material impacts and approaches to
mitigating material risks and pursuing material opportunities related
to own workforce, and effectiveness of those actions and
approaches
• S1-5 Targets related to managing material impacts, advancing
positive impacts, as well as to risks and opportunities
• S1-6 Characteristics of the undertaking’s employees
• S1-8 Collective bargaining coverage and social dialogue
• S1-11 Social protection
• S1-13 Training and skills development metrics
• S1-14 Health and safety metrics
• S1-15 Work-life balance metrics
• S1-16 Remuneration metrics (pay gap and total remuneration)
• S1-17 Incidents, complaints and severe human rights impacts
7.3.1.1             ESRS S1-1 Policies related to own workforce
S1-1, 19; S1-1, 20; S1-1, 21: S1-1, 23; S1-1, 24
LocalTapiola Group is committed to developing an equal and appreciative
work community that supports diversity. We are mindful of the occupational
wellbeing, working capacity, safety and integrity of our staff, ensuring
equitable and appreciative treatment both in day-to-day work and in
recruitment, by applying the following policies:
The LocalTapiola Group Code of Conduct guides our daily work and decision-
making, promoting actions and a corporate culture that are aligned with our
values. In our Code of Conduct, we pledge to respect human rights under
international human rights conventions. As outlined in our Code of Conduct,
we do not accept any discrimination, harassment or other inappropriate
treatment based on age, origin, nationality, language, religion, conviction,
opinion, political activity, trade union activity, family relations, health,
disability, sexual orientation or other reasons specific to a person.
Our Leadership Promises and Employee Promises form a foundation of
person-driven values for how we treat each other as people at the workplace.
Our Leadership Promises and Employee Promises support the development of
our corporate culture.
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The Human Resources Strategy, the Remuneration Policy, the Equality and
Non-Discrimination Plan and work community development plans support
and promote the development of our corporate culture, ensuring equitable
treatment for all our employees.
The LocalTapiola Group Human Rights Policy contains a human rights
commitment, our main adverse human rights impacts, and information about
mitigation and prevention measures and means of monitoring and controlling
human rights. LocalTapiola Group is committed to respecting internationally
recognised human rights in everything it does. We comply with current and
applicable legislation and official regulations. The LocalTapiola Group Human
Rights Policy expressly deals with the eradication of forced and child labour.
Human trafficking is not specifically addressed in the Human Rights Policy.
Our above key policies are discussed in section MDR-P Policies adopted to
manage material sustainability matters.
Through dialogue, we foster the proper and timely flow of information
between the employer and staff. We have in place common approaches for
threatening customer service situations, as well as a whistleblowing channel
for reporting abuse. Our employees and superiors have access to instructions
for addressing inappropriate treatment. The occupational accident
prevention policy is described in the occupational health and safety policy
and in the occupational healthcare action plan.
7.3.1.2   ESRS S1-2 Processes for engaging with own
workers and workers’ representatives about impacts
S1-2, 27; S1-2, 28
There is continuous dialogue between the employer and staff to develop
activities and the work community. This dialogue is implemented at either
quarterly or semi-annual meetings attended by employer and staff
representatives. Regular dialogue improves the flow of information and the
empowerment of staff. In accordance with the Co-operation Act, the
LocalTapiola Group companies, in cooperation with staff representatives,
have drawn up company-specific work community development plans, in
which companies record the areas needing development and the related
measures that have been agreed in dialogue with a staff representative.
The minimum working conditions are laid down in the collective agreements
and wage agreements for the insurance and financial sector. At LocalTapiola
Group, the Director, People and Culture has operational responsibility for
ensuring the conduct of interaction. As for the healthiness and safety of work,
we promote them through occupational health and safety cooperation, in
which Occupational Health and Safety Representatives represent employees.
Conducted annually, an employee survey maps employee experience relating
to own work, the immediate work community, leadership and the business
culture. Carried out by an external service provider, the employee survey aims
to identify strengths and areas needing development within the organisation.
Furthermore, LocalTapiola Group has in place an Equality and Non-
Discrimination Plan, and we monitor the achievement of the objectives of the
plan on an annual basis.
7.3.1.3   ESRS S1-3 Processes to remediate negative
impacts and channels for own workers to raise concerns
S1-3, 32; S1-3, 33; S1-3, 34
LocalTapiola Group has in place several processes to remediate negative
impacts to workers, as well as several channels for communicating concerns.
These channels are publicly available to all employees and employee
representatives. Through continuous dialogue between staff and the
employer, and through occupational health and safety actions, we remediate
negative impacts to our employees. We foster an open and honest culture of
communication, encouraging staff to express their concerns. Anonymously
through a whistleblowing channel maintained by an external service provider,
staff can report abuses or concerns observed in the activities of LocalTapiola
Group companies or the group’s business partners.
Our staff have access to policies for threatening customer service situations,
and to guidelines for addressing situations of harassment and bullying and
inappropriate conduct. We support superiors in dealing with situations by way
of a specific guideline and the daily activity of HR management.
LocalTapiola Group follows the legal guidelines of LocalTapiola Group,
available to our staff in the LocalTapiola intranet. We do not assess the
effectiveness of our approaches and measures.
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7.3.1.4   ESRS S1-4 Taking action on material
impacts and approaches to mitigating material risks and
pursuing material opportunities related to own
workforce, and effectiveness of those actions and
approaches
S1-4, 37; S1-4, 38; S1-4, 39; S1-4, 41; S1-4, 43, MDR-A
Across entire LocalTapiola Group, we apply the following actions to
employees belonging to our own workforce.
Quality HR services and HR processes
Through high-quality human resources services and human resources
processes, we support the development of LocalTapiola Group’s strategic
goal, strong lifelong security expertise and a culture of cooperation. The time
horizon for developing HR processes varies from short-term to long-term.
Ensuring the interests, rights and occupational safety of employees through
policies and agreements
We comply with the current legislation and collective bargaining agreement,
developing our related processes. The time horizon for implementing these
measures varies between short-, medium- and long-term.
Equality and Non-Discrimination Plan
We have prepared an Equality and Non-Discrimination Plan, which includes
the objectives and measures at the workplace that are laid down in the Act
on Equality between Women and Men and the Non-discrimination Act. The
objective is that all employees are treated in a non-discriminatory manner,
regardless of sex, and that everyone is offered equal opportunities. The time
horizon for these measures varies from short-term to long-term.
Dialogue and work community development plan pursuant to the Co-
operation Act
We carry out dialogue pursuant to the Co-operation Act, and draw up
company-specific staff development plans. The purpose is to promote the
flow of information and the empowerment of staff in matters concerning
work, working conditions and the status of staff. The time horizon for these
measures varies from short-term to medium-term.
Enhancing the anticipation of work capacity risks, and reducing risks
By identifying work capacity-related risks, we can take measures to mitigate
or eliminate them. We strive to continuously develop our work capacity
management processes. Through these actions and smooth cooperation with
occupational healthcare, we strive to develop better occupational wellbeing
for staff as well as the reduction of sick leaves and occupational accidents.
The time horizon for these measures varies from short-term to long-term.
Leadership
Quality leadership plays an important role in achieving our strategic goals.
We invest in leadership development and in developing the skills of superiors,
and measure the success of leadership. The time horizon for these measures
varies from short-term to long-term.
Whistleblowing channel, guidance and policies to prevent and deal with
situations
We aspire to prevent potential abuse through competence development and
guidelines. Staff have the opportunity to report potential abuses, for
example, through the whistleblowing channel. LocalTapiola Group employs a
specific approach with a view to resolving abuses. The time horizon for these
measures varies from short-term to medium-term.
Protecting the privacy of own employees
LocalTapiola Group ensures the protection of the privacy of its own
employees, and processes personal data as required by law and in line with
good data management and data processing practice.
Upskilling of employees
We encourage our staff to embrace continuous learning, and offer role-
specific learning pathways to all our personnel groups. In addition to learning
pathways, we provide our staff with versatile upskilling opportunities,
including training events, coaching programmes and online courses.
7.3.1.5 ESRS S1-5 Targets related to managing
material impacts, advancing positive impacts, as well as
to risks and opportunities
S1-5, 46; S1-5, 47, MDR-T, MDR-M
Supporting our daily work and decision-making, the LocalTapiola Group Code
of Conduct guides how we operate in various situations. We comply with
international conventions, national legislation, collective agreements and
established practices as regards working hours, salaries, benefits and
overtime work. The employer and staff engage in continuous dialogue, which
promotes the flow of information and the empowerment of staff in matters
concerning work, working conditions and the status of staff. In occupational
health and safety cooperation, we promote the healthiness and safety of
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87
work, with Occupational Health and Safety Representatives representing
employees.
LocalTapiola Group has joined the Zero Accidents forum set up by the Finnish
Institute of Occupational Health, which aims to disseminate information, best
practices, ideas and material to improve occupational safety and
occupational wellbeing. In addition, we also have zero tolerance for bullying
and harassment at the workplace. We have in place common approaches for
threatening customer service situations, and staff have access to a
whistleblowing channel for reporting abuse.
The LocalTapiola Equality and Non-Discrimination Plan lays down the
objectives and policies for equality and non-discrimination work, lending
support to compliance with the goals outlined in the group strategy and the
Human Resources Strategy and to achieving the obligations set out in the Act
on Equality between Women and Men and the Non-discrimination Act. In
2025, LocalTapiola Group does not monitor the effectiveness of the
objectives set for own workforce.
We annually measure staff commitment and satisfaction by the People Power
index that is part of our employee survey. The index compares the
commitment and satisfaction of LocalTapiola Group staff to the results of
other participating companies. We use the results from the index in defining
development areas and measures that improve the occupational wellbeing
and commitment of staff. One of the objectives laid down in the LocalTapiola
sustainability programme is to achieve and maintain an employee experience
level of AAA, which means ranking among the best six per cent of all
companies as measured by the People Power index. The results of the
employee survey are mirrored with comparable companies in the sector. On
the basis of the results, we can assess in what dimensions LocalTapiola Group
performs better than comparable companies and what issues should be
developed. In 2025, the index score was 76.0, giving LocalTapiola Group an
employee experience level of AA.   
Employee experience results
Year
Score
Change
Change, %
Level
Response rate, %
2025
76.0
-1.50
-1.94%
AA
91.0%
2024
77.5
1.20
1.57%
AA+
92.8%
2023
76.3
-1.50
-1.93%
AA+
90.4%
2022
77.8
0.60
0.78%
AAA
90.5%
2021
77.2
0.10
0.13%
AAA
89.3%
2020
77.1
0.10
0.13%
AAA
85.1%
2019
77.0
0.00
—%
AAA
89.5%
An external service provider implements the employee survey, but the results
have not been externally validated. Stakeholders were not involved in the
target setting. During the ongoing measurement period, we have not made
any changes to the target. The staff of Finnish P&C Insurance and LTC-Otso
are not included in the employee survey and its response rate.
7.3.1.6 ESRS S1-6 Characteristics of the
undertaking’s employees
S1-6, 50; S1-6, 52
LocalTapiola Group employs 4,345 (4,269) employees, approximately one half
of whom work at the regional non-life insurance companies around Finland.
The figures are reported as at the last day of the financial year, as numbers
of persons. As a rule, contracts of employment are full-time contracts for an
indefinite term. However, a fixed-term employment contract is possible in the
following situations: when requested by the person concerned; when required
by the nature of the work; when the contract is for a temporary replacement
or on-the-job training; or if the position is tied to calendar time.
All employees of LocalTapiola Group work in Finland. During the reporting
period, 197 (222) employees left LocalTapiola Group, representing a turnover
of 4.6 per cent (5.2%). The data are given as number of persons in the
situation as at the last day of the financial year. The data are retrieved from
the LocalTapiola HR system and companies’ in-house HR systems (Finnish
P&C Insurance, Seligson & Co Fund Management Company and LTC-Otso),
and they have not been externally validated. For the number of full-time
equivalent employees, please see section 3.3.3 Average number of personnel
during the financial year in the financial statements.
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Gender
Number of employees (head count)
Male
1552
Female
2791
Other
2
Not reported
0
Total employees
4345
Female
Male
Other
Not reported
Total
Number of employees (head count)
2791
1552
2
0
4345
Number of permanent employees (head count)
2571
1440
1
0
4012
Number of temporary employees (head count)
220
112
1
0
333
Number of non-guaranteed hours employees (head count)
148
95
1
0
244
Number of full-time employees (head count)
2411
1420
1
0
3832
Number of part-time employees (head count)
232
37
0
0
269
7.3.1.7     ESRS S1-8 Collective bargaining coverage and
social dialogue
S1-8, 63; S1-8, 60; S1-8, AR70
In Finland, wages and salaries and the terms of employment are regulated by
collective bargaining agreements, which are concluded between the relevant
union and employers’ association. An employer cannot, not even by a
contract of employment, pay a lower wage than what is stipulated in the
minimum wage provisions of the collective bargaining agreement to which
that employer is bound.
The collective bargaining agreement for the insurance sector is universally
applicable, and the LocalTapiola Group insurance companies comply with the
provisions laid down in that agreement. The agreement stipulates the terms
of employment of salaried employees, including the terms of their salary, who
work for insurance companies operating in Finland.
The total number of employees in the insurance sector as defined in the
agreement is approximately 11,647, and the number of employees covered by
the binding scope of the agreement under the Collective Agreements Act is
about 10,000.
LocalTapiola Finance applies the collective bargaining agreement for the
financial sector voluntarily, as applicable. The voluntary application of the
collective bargaining agreement for the financial sector is based on
LocalTapiola Finance’s independent decision, that is, the company’s policy.
The company applies, inter alia, the terms laid down in the agreement on
minimum wages and salaries.
Collective Bargaining Coverage
Social dialogue
Coverage
Rate
Employees - EEA
Employees -Non-EEA
Workplace
representation (EEA
only)
(for countries with >50
empl representing
>10% total empl.)
(for regions with >50
empl representing
>10% total empl.)
(for countries with >50
empl representing
>10% total empl.)
0 - 19%
20 - 39 %
40 - 59 %
60 - 79 %
80 - 100 %
Finland
Finland
7.3.1.8 ESRS S1-11 Social protection
S1-11, 74
In addition to the statutory healthcare services, all our staff are covered by
working capacity insurance cover, which supplements the occupational
healthcare services, and by leisure-time accident insurance cover. At
LocalTapiola Group, an employment relationship that has lasted for more
than five years will extend the length of time over which sick pay is paid.
The occupational healthcare services and the insurance covers are also in
force during sick leave and parental leave. The above benefits are in force
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89
until the end of the period of notice. As for our employees with partial work
capacity, we support them through an early support model and rehabilitation
solutions. Retirement takes place according to the Finnish pension system.
LocalTapiola Group has been providing employees with a supplementary
pension benefit. Persons whose employment with LocalTapiola Group
commenced before 31 December 2012 have this benefit in force. Periods of
notice are determined in accordance with the valid collective agreement. The
employees of LocalTapiola Group are governed by the collective agreements
for the insurance and the financial sector, depending on the employee’s job
description.
7.3.1.9 ESRS S1-13 Training and skills development
metrics
S1-13, 83, MDR-M
We encourage our personnel to embrace continuous learning, and we provide
versatile upskilling opportunities, including training events, coaching
programmes and online courses, to all our personnel groups.
In 2025, 97.9 per cent (97.4%) of the female employees of LocalTapiola
Group and 91.8 per cent (89.2%) of male employees participated in regular
performance reviews. The performance reviews are based on discussions
concerning the achievement of the targets determined for the annual
performance-related bonuses that apply to all staff. It is worthwhile to note
that the Disclosure does not include career development reviews or employee
success reviews. As a result of the training system reform that took place at
LocalTapiola Group in the middle of the reporting period, the data required
by datapoint S1-13, 83b on the average hours of training per employee
cannot be reported for 2025. In respect of this datapoint, we apply a
transition period. 
7.3.1.10 ESRS S1-14 Health and safety metrics
S1-14, 88; S1-14, 90, MDR-M
All our staff are covered by the statutory healthcare services and workers’
compensation insurance cover. In 2025, no fatalities resulting from work-
related injuries or ill health occurred at LocalTapiola Group. In 2025,
LocalTapiola Group recorded 28 (25) accidents at work and 33 (42)
commuting accidents, but no cases of work-related ill health were recorded
that are subject to legal restrictions on the collection of data. The Lost-Time
Injury Frequency Rate was 3.74 (3.39) per 1,000,000 hours worked. In 2025,
accidents at work resulted in 24 (200) days of absence, while commuting
accidents resulted in 45 (200) days of absence. The data on employee
accident metrics are retrieved from the LocalTapiola Yrityspulssi system and
the information provided by companies (Finnish P&C Insurance, Seligson & Co
Fund Management Company and LTC-Otso). The system provides at row level
data about accidents to employees and about the days of work incapacity
arising as a result of them. The metrics have not been specifically assured by
a third party.
7.3.1.11 ESRS S1-15 Work-life balance metrics
S1-15, 93; S1-15, 94, MDR-M
In Finland, all employees have a statutory right to parental leave, and the
entire LocalTapiola Group staff (one hundred per cent) have an opportunity
to take parental leave. The metric has not been validated by a third party.
Number of staff
Percentage
Those entitled to family-related leave*
4737
100.0%
Those that took family-related leave
451
9.5%
Female
292
64.7%
Male
159
35.3%
*Includes all employees employed during the reporting period (situation as at  31
December 2024 + employees who left during the period)
7.3.1.12 ESRS S1-16 Remuneration metrics (pay gap
and total remuneration)
S1-16, 97; MDR-M
In compiling the pay gap and total remuneration metric, we have used the
hours worked and remuneration paid during 2025. All taxable income that
employees were paid in 2025 is counted as paid pay. Directors’ working time
is not monitored, which is why for them we apply a 37.5-hour work week in the
absence of better data. For the other personnel groups, the calculation is
based on the actual hours worked that serve as the basis for payroll
payments. In calculating the pay gap, we apply the calculation formula set
out under item S1-16, AR 98 b, and in calculating the ratio of annual total
compensation we apply the calculation formula set out under item S1-16, AR
101 c. The metric covers all persons who were employees with LocalTapiola
Group during 2025. Both metrics are expressed as ratios, and they have not
been externally assured. The gender pay gap is mainly explained by
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90
occupational segregation, that is, the placement of women and men in
different roles and levels of responsibility.
Remuneration metrics
Gender pay gap
31.0%
Annual total remuneration ratio (highest remuneration compared to median)
20.5
7.3.1.13 ESRS S1-17 Incidents, complaints and severe
human rights impacts
S1-17, 103; MDR-M
At LocalTapiola Group, no incidents of discrimination affecting staff were
reported in 2025. We are monitoring the total number of reports filed
through the whistleblowing channel and the other available channels, but in
other respects monitoring is not implemented yet. Reported cases cannot
thus be disaggregated by their type.
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7.3.2 ESRS S4 Consumers and end-users
LocalTapiola Group’s material impacts, risks and opportunities that relate to
consumers and end-users are described in further detail in section SBM-3
Material impacts, risks and opportunities and their interaction with strategy
and business model . Material impacts, risks and opportunities in brief:
• Personal safety of consumers and end-users
◦ Provision of insurance products and services to customers
and clients
• Social inclusion of consumers and end-users
◦ Non-discriminatory treatment of customers and clients
◦ Service network coverage
◦ Generation of customer benefit
◦ Accessibility of products and digital services
◦ Customer expectations for the scope of coverage of
products
• Data-related impacts on consumers and/or end-users
◦ Security breaches of customers’ personal data
◦ Data protection and data security risks affecting customers’
personal data. 
Consumers and end-users mean LocalTapiola Group’s policyholders, insured
persons and other customers and clients (inter alia, clients of asset
management, finance and remuneration services, and tenants of properties),
to all of whom we refer in this sustainability statement as client or customer.
Our voluntary and statutory non-life insurance products cover people,
property and business against risks, while our personal insurance and health
insurance products and services support health, wellbeing and financial
protection. Furthermore, we help our customers and clients increase their
wealth and prepare financially for the future, delivering solutions for asset
management, saving, financing and life assurance. And not just that: we also
produce real estate investment and management services, and personnel
remuneration services.
In section S4 Consumers and end-users, we provide information on the
following Disclosure Requirements:
• S4-1 Policies related to consumers and end-users
• S4-2 Processes for engaging with consumers and end-users about
impacts
• S4-3 Processes to remediate negative impacts and channels for
consumers and end-users to raise concerns
• S4-4 Taking action on material impacts on consumers and end-users,
and approaches to managing material risks and pursuing material
opportunities related to consumers and end-users, and effectiveness
of those actions
• S4-5 Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities 
7.3.2.1 ESRS S4-1 Policies related to consumers and
end-users
S4-1, 15; S4-1, 16; S4-1, 17
We employ the following policies to ensure the management of impacts, risks
and opportunities affecting consumers and end-users:
The Owner Intent sets out the fundamental corporate governance policies of
LocalTapiola Group. The activities and decision-making of our corporate
group are fundamentally underpinned by the interests of owner-customers:
operating income, operational development and decisions aim to increase the
lifelong security and customer benefits of customers sustainably and for the
long term.
The group strategy is founded on the customer first principle, by which we
strive for excellent customer satisfaction and long-term sustainable success.
The ongoing strategy period will run from 2022 to 2026. On a regular basis,
we review the group strategy and evaluate the targets set out in it.
According to our Code of Conduct, the corporate group is there for its
customers, and it strives to operate responsibly, fairly and in a non-
discriminatory manner in the best interests of its customers.
The Partner Code of Conduct is a collection of key policies to which we
require our cooperation partners to commit. The Partner Code of Conduct
guides our operations, and it describes the minimum requirements to be
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92
observed in our business relations and in the management of our supply
chain.
The Human Rights Policy defines how the corporate group is committed to
respecting and promoting the human rights of its customers in all its
activities, and how it prevents and mitigates adverse impacts and ensures the
equal and fair treatment of customers as part of responsible service
provision.
The non-life insurance underwriting policy defines the policies and guidelines
that aim to ensure that the interests of policyholders, compensation
recipients and other beneficiaries are safeguarded in all insurance activities
responsibly, fairly and in a manner that is sustainable for customers.
The insurance companies’ product management policy guides product
development and product management within the insurance companies in a
way that allows the objectives, interests and needs of customers to be taken
into account appropriately in the design, development, approval, monitoring
and maintenance of insurance products throughout the product lifecycle.
The risk management policy defines the policies and approaches which
ensure that the interests of customers, compensation recipients and other
beneficiaries are safeguarded in a proactive manner and responsibly in all
activities and that customers’ financial protection and the continuity of
services will also be maintained under evolving circumstances.
The claims policy aims to provide customers with clear and fair claim service
that surpasses expectations in all channels by addressing customer needs,
communicating actively about the progress of the claim process and using
customer feedback in the continuous development of the service.
The partnership management principles describe the management and
leadership of the lifecycle of LocalTapiola’s partnerships, which aims to
ensure responsible and efficient partnership management and the sought-for
customer benefit. The principles guide partnerships and the objectives set for
them.
The data protection policy defines the principles and approaches for ensuring
the confidential, lawful and transparent processing of customers’ personal
data and the protection of customers’ privacy in all activities.
The data security policy defines the principles and responsibilities for
ensuring the confidentiality, integrity and availability of customers’ data and
the security of the digital services in all activities in order to allow customers
to trust LocalTapiola as a safe and responsible financial sector player.
The customer encounter models guide our activities by reinforcing customer
insight and using feedback and encounters to build a harmonious customer
experience that aligns with our brand.
Under the customer feedback processing principles, all customer feedback is
recoded in a system, responsibilities have been defined for feedback
processing and reporting in the organisation, customers are responded to
without delay and the feedback is used for operational development.
The customer complaints processing policy is a new policy, adopted during
the reporting period, that ensures that the processing of customer complaints
at the LocalTapiola Group insurance companies satisfies the regulatory
requirements and official instructions.
Our above key policies are discussed in section MDR-P Policies adopted to
manage material sustainability matters. In addition to these policies, our
operations are guided by the policy wordings, product descriptions, general
contractual terms and legal guidelines, and Finance Finland’s Good insurance
practice and the general insurance business principles. Accessibility and
privacy statements can be found in connection with each service or website.
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7.3.2.2 ESRS S4-2  Processes for engaging with
consumers and end-users about impacts
S4-2, 20
LocalTapiola Group engages with customers regarding actual and possible
impacts which affect them, including the provision of insurance products and
services, the coverage of the service network, the generation of customer
benefit, the accessibility of products and digital services, claims services, and
data protection and data security issues.
At LocalTapiola Group, engagement with customers is, as a general rule,
direct. Customers can engage with LocalTapiola via multiple channels – for
example, through our online service, telephone service, email, chat service and
social media. Furthermore, customers may transact at the group’s offices
around Finland. LocalTapiola customers can choose the transaction method
that suits them best: transacting is possible digitally, over the telephone or in
person. We collect feedback in connection with the use of services and after
customer encounters. Any feedback that requires processing will be directed
to the Customer Service Manager of the company responsible for the
customer account. We evaluate the reasons for submitting feedback, and use
the feedback to develop our activities. Furthermore, we use customer
feedback to monitor the effectiveness of development measures. We provide
targeted communication to our various customer groups through the
LocalTapiola website and targeted newsletters.
Engagement may also take place via LocalTapiola agents or claim partners.
Agents market and sell LocalTapiola products and services to customers and
clients. In the event of a claim, they can directly contact a claim partner, who
will then contact LocalTapiola..
In 2022, we set up a customer community consisting of more than 900 of the
group’s customers. This voluntary customer community represents the
demographically diverse customer base of LocalTapiola Group. We engage
the customer community in different surveys, votes, group discussions and
user testing. We use responses and ideas received from the customer
community in the development of new and existing services and products and
in customer communication. Moreover, we produce market and customer
surveys to better understand the behaviour, needs and experience of
customers, delving deeper in various topics. LocalTapiola’s survey mix is made
up, inter alia, of extensive studies and the measuring of the service
experience.
Supervisory Boards, whose members consist of companies’ owner-customers
or their representatives, play a key role in the governance of mutual insurance
companies. The Supervisory Board is tasked with overseeing the company’s
governance for which the Board of Directors and the Managing Director are
responsible. We describe governance in further detail in section GOV-1 The
role of the administrative, management and supervisory bodies.
Engaging with customers and how the views of customers are addressed are
the responsibility of the Board of Directors of each LocalTapiola Group
company. Regularly twice a year, the LocalTapiola Group’s Management
Group examines the business and market review, which also covers customer
account-related topics, including the development of customer satisfaction
and customer behaviour. The Group’s Management Group also examines
subject matters at other times where necessary. The Board of Directors of
LocalTapiola General and the Group’s Management Group process the results
of the regularly implemented customer satisfaction survey (Net Promoter
Score, NPS) as part of the monitoring and evaluation of the management’s
performance targets. We do not monitor the effectiveness of engagement
efforts. We use customers’ views collected from different sources in the
development of existing products and services and in the creation of new
ones.
7.3.2.3 ESRS S4-3 Processes to remediate negative
impacts and channels for consumers and end-users to
raise concerns
S4-3, 25; S4-3, 26
LocalTapiola Group has in place several processes to remediate negative
impacts to customers, as well as many channels to communicate concerns.
The previous section describes engagement with customers, the
empowerment of owner-customers and the activities of the customer
community. These policies also serve as channels through which customers
can raise concerns.
LocalTapiola Group actively collects feedback from its customers in
connection with the use of services in digital services and by text messages. In
addition, customers can give feedback and get a response through the
feedback form available on the LocalTapiola website. We also systematically
collect spontaneous feedback from customers.
If a customer is not satisfied with an insurance or claim decision that they
have received, they may appeal against it. Together with every decision, we
provide customers with instructions for how to appeal. The necessary contact
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94
details have also been collected on the Muutoksenhaku (Appeals) page at the
LocalTapiola website.
In the event of an appeal, the customer will primarily contact the party that
has processed their case. That party’s contact details can be found in the
relevant decision. Moreover, customers may contact the LocalTapiola
Customer Conciliation Office, an internal independent party that impartially
examines issues related to voluntary non-life insurance, life insurance and
investment services. Should the customer still not be satisfied with their
decision, they may submit the case to an external party. More specific
instructions on reporting a case to and processing by an external party are
provided on the LocalTapiola website at https://www.lahitapiola.fi/henkilo/
asiakkaalle/muutoksenhaku/.
Through a whistleblowing channel maintained by an external service provider
and available on the LocalTapiola website, customers can anonymously
report abuses or concerns observed in the activities of LocalTapiola Group
companies or its business partners. Whistleblower protection is described in
further detail in section G1-1 Corporate culture and business conduct policies
and corporate culture. In accordance with our Partner Code of Conduct
(PCOC), we require that our cooperation partners have in place a
whistleblowing channel if they are required by law to operate one.
Furthermore, we recommend to set up an equivalent channel if the entity is
not under a legal obligation.
In addition to the above channels, customers can raise their data protection
and data security concerns and needs by contacting the LocalTapiola Group
Data Protection Officer by email or post. Additionally, customers may directly
contact the Office of the Data Protection Ombudsman. As for accessibility-
related concerns and needs, customers may send them to a specific email
address provided in the group’s accessibility statement. Feedback on
accessibility can also be provided directly to the supervisory authority, the
Finnish Transport and Communications Agency Traficom. We do not
specifically assess how aware customers are of the above policies or whether
they trust the channels available as a way to raise their concerns. We do not
assess the effectiveness of remedial measures or channels.
In addition to the above channels, customers can raise their data protection
and data security concerns and needs by contacting the LocalTapiola Group
Data Protection Officer by email or post. Additionally, customers may directly
contact the Office of the Data Protection Ombudsman.
As for accessibility-related concerns and needs, customers may send them to
a specific email address provided in the group’s accessibility statement.
Feedback on accessibility can also be provided directly to the supervisory
authority, the Finnish Transport and Communications Agency Traficom.
We do not specifically assess how aware customers are of the above policies
or whether they trust the channels available as a way to raise their concerns.
We do not assess the effectiveness of remedial measures or channels.
7.3.2.4 ESRS S4-4 Taking action on material
impacts on consumers and end-users, and approaches to
managing material risks and pursuing material
opportunities related to consumers and end-users, and
effectiveness of those actions
S4-4, 30; S4-4, 31; S4-4, 32; S4-4, 33; S4-4, 34; S4-4, 35; S4-4, 37;
MDR-A
We list LocalTapiola Group’s key actions on customer-related material
impacts, risks and opportunities in the form of condensed descriptions. As a
general rule, these actions focus on LocalTapiola Group’s own operations. We
do not monitor the effectiveness or impact of actions in any centralised
manner.
Provision of insurance products and services to customers and clients
With regard to measures related to the provision of insurance products and
services, we highlight the non-life insurance and life insurance core system
reforms, by which we aim to enable an enhanced customer experience. The
reforms concern LocalTapiola General, LocalTapiola Life and the regional
companies, with the new systems to be phased in between 2025 and 2033. 
Non-discriminatory treatment of customers and clients
To promote the non-discriminatory treatment of customers and clients, we
prepared new principles for processing customer complaints in 2025. In the
course of business, we control quality and train our staff regularly, so that
uniform policies are followed in every customer service role. The customer
encounter and care models that we use guide to treat customers in a non-
discriminatory manner. The time horizon for implementing these measures
varies from short-term to long-term.
Service network coverage
We look after the coverage of the partner service network by acting in
compliance with the LocalTapiola partnership management model, which
covers the management and continuous scrutiny of partnerships for which
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95
designated persons are responsible. The time horizon for implementing these
measures varies from short-term to long-term.
Generation of customer benefit
The strategic goal of the LocalTapiola Owner Intent is to increase customer
benefits. Through the owner-customer benefit programme, we provide
customer benefits to all customer groups and act in compliance with the
customer encounter models. The time horizon for implementing these
measures varies from short-term to long-term.
Accessibility of products and digital services
We test new and updating features of products and services with customers
from the viewpoint of accessibility. We use internal accessibility audits to
monitor how accessibility requirements are fulfilled. The time horizon for
implementing these measures varies from short-term to long-term.
Customer expectations for the scope of coverage of products
We provide customers with a claims service based on common processes and
policies, harmonised compensation guidelines, the Good insurance practice
applied across the sector, and the general insurance business principles. The
time horizon for implementing these measures varies from short-term to
long-term. 
Data protection and data security risks affecting customers’
personal data
To prevent data protection and data security risks, we organise training and
exercises for our staff to identify attacks. We ensure that staff are familiar
with the applicable regulatory obligations and that they know how to act in
compliance with them. The induction of all new hires features trainings on
data protection and data security, and all staff take refresher courses at
regular intervals. Furthermore, we communicate on this topic to staff in our
intranet. The LocalTapiola cybersecurity ambassador programme aims to
improve cybersecurity competences and increase information about cyber
hazards. Trained cybersecurity ambassadors support their own work
communities in complying with the best cybersecurity practices. In autumn
2025, for the tenth time now, we organised a Hack Day event, where
benevolent teams of hackers tested chosen LocalTapiola equipment and
services. In 2025, we also carried out impact assessments for new systems,
services and processes that process personal data. The time horizon for
implementing these measures varies from short-term to long-term.
In spite of the preventive measures, in the event of material adverse impacts,
we have in place defined policies for staff regarding security breaches. The
process description contains the precise phases, which are: reporting the
security breach, contacting the parties affected by the breach, and notifying
the relevant authority. Data protection and data security incidents are
registered in an internal system, in which we can maintain information about
the more precise description of the incident, the progress of the processing of
incidents, the responsible persons, the relevant company and the measures
taken. In the event of an extremely serious and large-scale negative impact,
that is, in emergencies (disturbances, specific situations or crisis situations),
we employ a crisis management policy that we follow in these situations.
7.3.2.5 ESRS S4-5 Targets related to managing
material negative impacts, advancing positive impacts,
and managing material risks and opportunities
S4-5, 40; S4-5, 41; MDR-T; MDR-M
The group-wide targets related to LocalTapiola’s customers are described in
the 2022–2026 group strategy. The group strategy applies to all LocalTapiola
Group companies, excluding LTC-Otso. We provide more specific information
about the LocalTapiola group strategy in this sustainability statement in
sections SBM-1 – Strategy, business model and value chain and MDR-P
Policies adopted to manage material sustainability matters.
Our customer-related strategic objective is “The best service in the sector
personally, locally and by digital means,” which relates to fostering a positive
impact on customers, that is to say, the provision of insurance products and
services. This target we measure by the customer satisfaction Net Promoter
Score (NPS), an internationally established calculation principle. The metric
has not been externally validated. The base year that we use is the year 2020,
when the NPS level was 65, and our target for the 2025 reporting year was
66. The NPS score achieved in 2025 was 65, which means that we did not
reach our target. This metric measures all our customer encounter channels.
The target value is absolute, and it is applied to the customers of
LocalTapiola Group. Stakeholders were not involved in the setting of the
target, and the target was not communicated to customers. The Board of
Directors of LocalTapiola General monitors the target.  
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7.4 ESRS G Governance information
In the Governance information section, we examine sustainability topic G1
Business conduct.
7.4.1 ESRS G1 Business conduct
LocalTapiola Group’s business conduct-related material impacts, risks and
opportunities are described in further detail in section SBM-3 Material
impacts, risks and opportunities and their interaction with strategy and
business model. Material impacts, risks and opportunities in brief:
• Corruption and bribery
◦ Prevention of corruption and bribery
◦ Incidents of corruption or bribery
• Relationships with suppliers and service providers
◦ Suppliers adhere to responsible policies
• Corporate culture
◦ Implementation of a responsible corporate culture in insured
assets and portfolio investments
◦ Reinforcing responsible policies
In section G1 Business conduct, we provide information on the following
Disclosure Requirements:
• G1-1 Corporate culture and business conduct policies and corporate
culture
• G1-2 Management of relationships with suppliers
• G1-3 Prevention and detection of corruption and bribery
• G1-4 Confirmed incidents of corruption or bribery 
•
7.4.1.1   ESRS G1-1 Business conduct policies and
corporate culture
G1-1, 7; G1-1, 9; G1-1,10, MDR-T, MDR-M
At LocalTapiola Group, the conduct of business is guided not only by
applicable legislation and official regulations, but also by the values of
benevolence, courage and passion approved by the Boards of Directors of the
LocalTapiola Group companies. In addition, our business conduct is guided by
LocalTapiola Group’s codes, principles and policies (MDR-P Policies adopted
to manage material sustainability matters). We adhere to mutual corporate
governance, which is based on the legislation governing the insurance and
financial sector, the regulations and guidelines issued by the Financial
Supervisory Authority and, where applicable to mutual insurance companies,
the Finnish Corporate Governance Code for listed companies. In addition, the
activities of LocalTapiola Group are also guided by the principles of good
insurance and banking practice published by Finance Finland. 
Corporate culture is one of the priorities of our group strategy. As outlined in
the Human Resources Strategy, on a regular basis, we gauge measures
related to the development of corporate culture and how well we succeed in
them. Annually, the Board of Directors of LocalTapiola General also examines
the results of the employee survey, which an external service provider
conducts for LocalTapiola Group, and addresses the conclusions derived from
them. The employee survey allows us to measure employee experience, which
includes satisfaction with your own work, the immediate work community,
leadership and the activities of the organisation. We discuss the target and
the result in further detail in section S1-5 Targets related to managing
material impacts, advancing positive impacts, as well as to risks and
opportunities. Furthermore, for members of governance bodies, we conduct
an annual satisfaction survey, in which they evaluate issues such as the
performance of the Owner Intent goals and the implementation of mutual
corporate governance.
Through our Leadership Promises and Employee Promises, we cherish and
promote in a goal-oriented manner a positive corporate and business culture
at LocalTapiola Group. The Leadership Promises represent a common promise
made by all our superiors about what we understand to be the building blocks
of good management and leadership. At LocalTapiola, we lead with respect,
actively, and focusing on targets. For us, good management and leadership
are means to further improve our employee experience and foster a positive
business culture. Following on from the Leadership Promises, we engaged our
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staff to work on a set of Employee Promises, which apply to everyone working
at LocalTapiola. We make a promise to ourselves, each other and our
customers: I shoulder responsibility, develop, respect and dare. We will be
consolidating these Employee Promises as part of the HR management
policies, and will define an Employee Promise Index for measuring how our
culture of cooperation develops. The governing bodies of LocalTapiola Group
also have their own valid Leadership Promises. The Boards of Directors of the
LocalTapiola Group companies approve the LocalTapiola Group Code of
Conduct, in which we determine the principles to which we as a group are
committed. The Code of Conduct is included in the induction and training
programmes of the LocalTapiola Group governance bodies, management and
staff. In compliance with internal control mechanisms, we monitor compliance
with and the timeliness of the Code of Conduct on a regular basis. Any breach
of the Code will be evaluated on a case-specific basis under normal labour
law principles.
The LocalTapiola Group Partner Code of Conduct (“the Code”) is a collection
of key policies to which we require our cooperation partners to commit. It
guides our operations and describes the minimum requirements to be
observed in our business relations and in the management of our supply
chains. The Code was reformed in 2025 to better respond to regulatory
changes, the group’s own goals and the growing expectations of customers
and partners. The content was broadened and specified, and the Code
provides clearer guidelines than previously for the requirements to be set for
our cooperation partners. The main changes to the content concern human
rights, environmental responsibility and supervisory practices. The Board of
Directors of LocalTapiola General adopted the reformed Partner Code of
Conduct in autumn 2025.
LocalTapiola Group is committed to the UN’s Principles for Sustainable
Insurance (PSI). These Principles lay down, for the insurance sector, the
sustainable approaches that support the UN’s Sustainable Development
Goals and the goals of the Paris Agreement. Furthermore, LocalTapiola Asset
Management Group is committed to the UN-supported Principles for
Responsible Investment.
The Board of LocalTapiola General confirms the LocalTapiola Group Human
Resources Strategy in force from time to time, and it annually discusses a
report on the implementation of the Human Resources Strategy.
Furthermore, on a semi-annual basis, the Board is provided with a human
resources report reviewing, inter alia, how the Human Resources Strategy has
been implemented and what the plans and objectives are from that point on. 
The induction of all new salaried employees includes familiarisation with the
LocalTapiola Group Code of Conduct and the guidelines for identifying and
managing conflicts of interest. These guidelines are available to all staff in
the LocalTapiola intranet, in addition to which the group’s electronic learning
environment hosts online courses on the Code of Conduct and the
identification of conflicts of interest. Superiors are responsible for inducting
their subordinates in the internal guidelines of LocalTapiola Group. The
LocalTapiola Code of Conduct online course is mandatory for the entire
organisation, to be taken each year. We monitor participation in the Code of
Conduct training by measuring the number of people who complete the
course. In our sustainability programme, we have set the target rate of
completion at one hundred per cent of the organisation. For this target, we
include in the calculation office personnel and insurance agents, specialists,
superiors, management and intermediaries. Due to a training system renewal,
we are unable report the 2025 completion rate for the Code of Conduct
online course. Other stakeholders were not involved in the target setting. We
measure the rate of completion annually, and no milestones have been set for
achieving this target. The following group companies are not covered by the
target: Finnish P&C Insurance, Seligson & Co Fund Management Company
and LTC-Otso. The metric has not been validated by a third party.
In compliance with the whistleblower act, LocalTapiola Group operates a
whistleblowing channel for reporting suspicions of abuse, and has in place a
common group policy for investigating internal abuses. We encourage our
personnel and stakeholders to bring to our attention detected abuse cases
and conduct that is in breach of the Code of Conduct. Through the
whistleblowing channel, both staff and external stakeholders can
anonymously and confidentially report suspicions of abuse and conduct that
is in breach of the Code of Conduct or other regulations. The whistleblowing
channel keeps the identity of the person lodging the report secret while
ensuring the security of data. The responsibility for examining reported cases
lies with LocalTapiola Group’s Internal Audit function. The whistleblowing
channel can be found at the LocalTapiola Group website. In addition, the
group has published guidance relating, inter alia, to the processing of reports
and the confidentiality of reporting.
At LocalTapiola Group, we have put in place a defined and documented
approach for investigating internal abuses, available to all employees in the
LocalTapiola intranet. According to the whistleblower act, an organisation
that has established an internal reporting channel must designate a person or
persons responsible for handling reports who must be able to discharge their
function impartially and independently. At LocalTapiola Group, it is for the
Group’s Management Group to designate the staff receiving reports. Reports
are handled only by persons who are designated by the Group’s Management
LocalTapiola General | Report of the Board of Directors for 2025
98
Group and who can in this duty function impartially and independently. The
handling of reports complies with the act on the protection of persons who
report breaches of European Union and national law, which is the national
implementation of Directive (EU) 2019/1937. The LocalTapiola whistleblowing
channel policy was drawn up in 2025, and it will be deployed starting in 2026,
which also includes whistleblower protection policies.
As part of the normal internal control of business operations, superiors are
responsible for monitoring deviations and incidents within their own field of
responsibility and, where necessary, for reacting to them. The employer and
the relevant superior are always under an obligation to act, regardless of
whether the incident occurs between employees or between an employee and
a superior. The human resources guidance of LocalTapiola Group also
contains sections for incident management (for example, harassment and
bullying). Furthermore, LocalTapiola Group employs anti-corruption and anti-
bribery policies that are consistent with the UN Convention, as well as policies
for preventing and managing conflicts of interest. In addition to managerial
activities and HR management, grievances can be raised in LocalTapiola
Group’s independent control functions set out in the Insurance Contracts Act
(compliance, risk management and internal audit). At LocalTapiola Group,
customer contacts and the management’s decision-making situations have
been identified as the functions most exposed to corruption and bribery.
7.4.1.2 ESRS G1-2 Management of relationships
with suppliers
G1-2, 14; G1-2, 15
At LocalTapiola Group, it is our duty to act responsibly, transparently and
sustainably. Our cooperation partners are required to comply with the
relevant agreements and the agreed cooperation principles. Moreover, we
also want to be a great partner and cooperation party. The LocalTapiola
Group Partner Code of Conduct, which governs partnerships and acquisitions,
is a collection of key policies with which we at the group are committed to
complying and which we as a rule require our cooperation partners to follow.
In the Code, we set out the policies that we require from our cooperation
partners and want to promote together with them. The Code also describes
the action of which we at LocalTapiola do not approve. With regard to claim
processes, our suppliers also include claim partners, alongside direct business
acquisitions.
We agree terms of payment separately with each supplier, and they range
from seven to forty-five days. The most common term of payment,
determined in the general acquisition guidelines, is thirty days. We classify
suppliers from one-off suppliers to strategic partners, and for each of them
we apply the monitoring or leadership model that the cooperation
relationship requires. At LocalTapiola Group, acquisitions are largely
decentralised and happen locally, which is why there are also some
discrepancies between policies. Suppliers that are external to the
procurement system, which represent the majority of our suppliers, are
subject to the same principles and practices as apply to suppliers that are
included in the procurement system. It is our principle to always pay purchase
invoices on the invoice due date through the purchase invoice system, and in
2025 this was achieved for 96.7 (94.7) per cent of invoices. 3.3 (5.3) per cent
of invoices required further clarifications, after the completion of which the
invoices were processed either by approving them for payment or through the
credit note procedure. Purchase invoices are approved in the purchase invoice
system, from which on the due date they are transferred to the payment
system and entered in the accounts. This calculation does not cover the
purchase invoices of the following companies: Finnish P&C Insurance Ltd,
Seligson & Co Fund Management Company Plc and LTC Otso Oy.
The Insurance Contracts Act requires that we pay insurance contract-based
claims within thirty days of the date on which a compensation demand is
presented and all necessary information is at our disposal. In the event of
delayed claim payment, we will pay on the claim the interest for late payment
laid down in law. In claims for the statutory lines of business, such as workers’
compensation insurance and motor liability insurance, we closely monitor
processing times from the initiation of the processing to the resolving of the
claim. We provide regular reporting on the duration of processing to the
Financial Supervisory Authority. With external invoicers, we mainly use
electronic invoicing, which streamlines the invoicing process and reduces the
risk of payments being delayed.    In LocalTapiola’s claim partner tendering
criteria, sustainability is taken into account when assessing overall capability.
In the tendering models for LocalTapiola’s claim partnerships, the assessment
of overall responsibility plays a significant role, encompassing social, societal
and environmental perspectives.
7.4.1.3 ESRS G1-3 Prevention and detection of
corruption and bribery
G1-3, 18; G1-3, 20; G1-3, 21
In the ‘Anti‐corruption and anti‐bribery efforts’ section of the LocalTapiola
Group Code of Conduct, which the Boards of Directors of the LocalTapiola
companies have approved, we define our intent and measures for preventing
grievances. In addition, LocalTapiola Group has in place commonly accepted
policies for preventing and managing conflicts of interest. One identified
LocalTapiola General | Report of the Board of Directors for 2025
99
conflict of interest is the giving and receiving of gifts and hospitality, which is
why a specific guideline has been issued for appropriately dealing with these
situations. Furthermore, LocalTapiola Group has adopted disqualification
guidelines, which contain specific guidance on disqualification in claims
handling and on Board member disqualification.
The induction of new employees covers familiarisation with LocalTapiola
Group’s internal guidelines, including the LocalTapiola Group Code of
Conduct and the guidelines on identifying conflicts of interest. The guidelines
are available to all staff in the intranet. In addition, these topics are the
subject of online courses which can be found in LocalTapiola Group’s
electronic learning environment and which the entire LocalTapiola Group
staff complete as mandatory on a regular basis. Superiors are responsible for
the induction of employees, and monitor their online course completions. We
report the rates of completion of the online courses annually to the Boards of
Directors as part of the compliance reporting. The Code of Conduct and the
online courses on managing conflicts of interest are also included in the
induction programmes of the members of the Boards of the LocalTapiola
Group companies. The companies’ senior management and, ultimately,
Boards are responsible for ensuring that the companies have in place the
procedures and processes required by the guidelines.
Enforcement of the group’s policies and guidelines is part of the work carried
out by internal control, and it is the responsibility of every superior. Staff are
required to notify, through the whistleblowing channel or directly to their
superior, the company compliance officer, a contact person or internal audit,
of any conduct that they observe to be in breach of the guidelines.
Independent of business operations, the compliance function contributes to
the enforcement of the Code of Conduct and the related guidelines,
reporting any non-compliance to the relevant organisation and, in its regular
compliance reports, to the Management Groups and Boards of Directors.
7.4.1.4 ESRS G1-4 Incidents of corruption or bribery
G1-4, 24; G1-3,25; MDR-M; MDR-A; MDR-T
Regarding own workforce, our target is for zero incidents of corruption or
bribery during the year, which is included as part of our Code of Conduct. On
an annual basis, we measure the target in absolute terms, using the number
of incidents as the unit measured. Stakeholders have not participated in the
setting of this target. The number of incidents of corruption and bribery is a
metric in which we include the incidents of corruption and bribery discovered
across entire LocalTapiola Group during the year.
During the reporting period, LocalTapiola Group did not discover any
incidents of corruption or bribery, and we also did not have any incidents
initiated before 2025 where the outcome would have been established in the
current reporting period. That is why there has been no need to take action
at LocalTapiola Group in relation to discovered incidents of corruption and
bribery during the reporting period.
7.5 Sustainability report
We will give further discussion about the sustainability and 2025 activities of
LocalTapiola Group in a separate sustainability report to be published in
spring 2026 at www.lahitapiola.fi/tietoa-lahitapiolasta/lahitapiola-ryhma/
lahitapiola-ryhman-raportit/.
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100
8 Proposal for the use of profit
Proposal by the Board of Directors
The Board of Directors proposes to the Annual General Meeting of
LocalTapiola General that the profit for the 2025 financial period, EUR
86,288,374.59, be transferred into the security reserve and that, from there,
EUR 4,000,000.00 be transferred into the contingency reserve.
If the Board’s proposal for the use of the profit is adopted, the company’s
capital and reserves will thereafter be as shown in the table below.
Capital and reserves after the proposal:
Capital and reserves, EUR
2,101,366,574.80
Initial reserve
8,641,380.35
Revaluation reserve
85,090.31
Security reserve
2,082,434,112.54
Contingency reserve
10,205,991.60
LocalTapiola General | Financial statements for 2025
101
Financial statements for 1 January 2025 - 31
December 2025
9 Consolidated financial statements, LocalTapiola Group
9.1 Profit and loss account, LocalTapiola Group
Technical Account - Non-life Insurance
Note
1.1.2025-31.12.2025
1.1.2024-31.12.2024
Premiums earned
Premiums written
K1
1,620,504,227.52
1,533,449,263.78
Reinsurers´ share
-55,877,504.62
-54,048,489.95
Premium income on own account
1,564,626,722.90
1,479,400,773.83
Change in provision for unearned premiums
Total change
-33,435,819.61
-24,903,153.89
Reinsurers´ share
Total change
-671,746.03
-1,305,218.46
Change in provision for unearned premiums, total
-34,107,565.64
-26,208,372.35
Total premiums earned
1,530,519,157.26
1,453,192,401.48
Claims incurred
Claims paid
-1,156,249,391.54
-1,184,400,319.08
Reinsurers´ share
21,600,571.86
41,044,348.24
Claims management expenses on own account
-1,134,648,819.68
-1,143,355,970.84
Change in provision for outstanding claims
Total change
37,804,373.21
47,737,185.76
Reinsurers´ share
Total change
116,939.53
-5,964,667.10
Change in provision for outstanding claims, total
37,921,312.74
41,772,518.66
Total claims incurred
-1,096,727,506.94
-1,101,583,452.18
Operating expenses
K3
-321,960,281.67
-315,232,289.83
Balance on technical account before change in equalization
provision
111,831,368.65
36,376,659.46
Change in equalization provision
Total change
-61,846,395.38
10,644,028.13
Total change in equalization provision
-61,846,395.38
10,644,028.13
Balance on technical account
K2
49,984,973.27
47,020,687.59
Technical Account - Life Insurance
Note
1.1.2025-31.12.2025
1.1.2024-31.12.2024
Premium income on own account
Premiums written
K1
418,945,121.13
415,992,311.97
Reinsurers´ share
-5,802,523.65
-5,443,034.47
Total premium income on own account
413,142,597.48
410,549,277.50
Investment income
K4
228,601,013.90
301,417,198.81
Revaluations of investments
K4
189,204,616.61
253,560,940.67
Claims incurred
Claims paid
K2
-401,072,795.10
-415,444,748.57
Reinsurers´ share
969,199.18
884,607.77
Claims management expenses on own account
-400,103,595.92
-414,560,140.80
LocalTapiola General | Financial statements for 2025
102
Technical Account - Non-life Insurance
Note
1.1.2025-31.12.2025
1.1.2024-31.12.2024
Change in provision for outstanding claims
Total change
988,255.00
5,041,318.00
Change in provision for outstanding claims, total
988,255.00
5,041,318.00
Total claims incurred
-399,115,340.92
-409,518,822.80
Change in provision for unearned premiums
Total change
-114,511,067.54
-167,120,372.49
Reinsurers´ share
Change in provision for unearned premiums, total
-114,511,067.54
-167,120,372.49
Operating expenses
K3
-60,218,047.21
-55,317,768.92
Investment charges
K4
-114,574,411.10
-113,182,162.44
Revaluation adjustments on investments
K4
-57,835,528.30
-61,902,769.52
Balance on technical account before change in equalization
provision
84,693,832.92
158,485,520.80
Non-technical Account
Balance on technical account, non-life insurance
49,984,973.27
47,020,687.59
Balance on technical account, life insurance
84,693,832.92
158,485,520.80
Net investment income, non-life insurance
Investment income
K4
345,673,815.96
523,267,707.61
Investment charges
K4
-173,644,132.78
-169,237,749.27
Total net investment income, non-life insurance
172,029,683.18
354,029,958.34
Other income
Deduction of negative goodwill on consolidation
0.00
5,538,066.61
Other
224,525,624.26
254,911,346.60
Total other income
K4
224,525,624.26
260,449,413.21
Other expenses
Depreciation of consolidated goodwill
-12,514,479.80
-13,130,803.86
Other
-172,129,925.33
-205,525,669.76
Total other expenses
K4
-184,644,405.13
-218,656,473.62
Result from ordinary activities
346,589,708.50
601,329,106.33
Share of profit (loss) from group associated undertakings
7,496,506.11
4,346,650.74
Result before appropriations and taxes
354,086,214.61
605,675,757.07
Appropriations
Direct taxes on ordinary activities
Taxes for the financial period
-71,853,549.47
-102,659,157.25
Change in deferred tax liabilities
99,820.78
98,768.68
Total direct taxes on ordinary activities
-71,753,728.70
-102,560,388.57
Minority interests
-12,039,706.75
-14,185,236.87
Result for the financial year
270,292,779.16
488,930,131.63
LocalTapiola General | Financial statements for 2025
103
9.2 Balance sheet, LocalTapiola Group
Assets
Note
31.12.2025
31.12.2024
Intangible assets
K9
Intangible rights
1,063,526.04
1,446,506.88
Goodwill on consolidation
21,332,608.87
33,653,003.72
Other expenses with long-term effects
106,927,996.63
77,355,339.82
Advance payments
109,978,845.04
84,567,777.24
Total intangible assets
239,302,976.58
197,022,627.66
Investments
K5
Real estate investments
K6
Real estate and shares in real estate
1,302,711,732.27
1,343,678,340.73
Total real estate investments
1,302,711,732.27
1,343,678,340.73
Investments in group companies and participating interests
Shares and holdings in group companies
7,097,056.07
7,097,056.07
Shares and holdings in participating interests
49,040,518.34
43,862,169.18
Debt securities issued by and loans to participating interests
17,260,000.00
17,105,707.71
Total investments in group companies and participating interests
K7
73,397,574.41
68,064,932.96
Other investments
Shares and holdings
K7
5,273,831,599.49
4,981,644,666.53
Debt securities
K7
1,152,672,679.74
1,257,773,264.25
Loans guaranteed by mortgages
166,740,494.31
301,839,456.78
Other loans
K8
548,251,567.43
465,596,565.22
Deposits
15,000,000.00
11,000,000.00
Other investments
253,787.59
293,088.19
Total other investments
7,156,750,128.56
7,018,147,040.97
Deposits with ceding undertakings
512,234.34
590,336.58
Total investments
8,533,371,669.58
8,430,480,651.24
Assets covering unit linked policies
K10
3,321,337,902.08
3,089,666,823.92
Debtors
K16
Arising out of direct insurance operations
Policyholders
337,761,948.59
301,470,544.01
Arising out of reinsurance operations
19,238,015.37
20,569,205.42
Receivables from hire-purchase transactions
469,433,567.16
430,268,761.00
Other debtors
83,372,162.12
72,056,434.01
Deferred tax claim
K15
2,015,504.54
2,015,504.54
Total debtors
911,821,197.78
826,380,448.98
Other assets
Tangible assets
K9
Machinery and equipment
9,974,015.41
9,890,688.68
Other tangible assets
116,888,230.73
128,346,648.04
Total tangible assets
126,862,246.14
138,237,336.72
Cash at bank and in hand
646,953,695.56
607,675,442.43
Other assets
214,784,463.36
227,831,423.01
Total other assets
988,600,405.06
973,744,202.16
Prepayments and accrued income
Accrued interest and rent
18,414,913.51
17,541,765.48
Other prepayments and accrued income
85,138,468.35
69,517,608.78
Total prepayments and accrued income
103,553,381.86
87,059,374.26
Total assets
14,097,987,532.94
13,604,354,128.22
LocalTapiola General | Financial statements for 2025
104
Liabilities
Note
31.12.2025
31.12.2024
Capital and reserves
K11
Initial fund
8,641,380.35
8,641,380.35
Revaluation reserve
1,432,326.43
1,432,326.43
Other reserves
Other reserves
2,006,351,729.55
1,763,072,730.31
The share of voluntary provisions and depreciation difference
transferred to capital and reserves
639,258.79
991,135.51
Total other reserves
2,006,990,988.34
1,764,063,865.82
Profit/loss for previous accounting periods
-59,475,928.55
-41,364,727.34
Profit for the accounting period
Profit for the accounting period
270,292,779.16
488,930,131.63
Change in depreciation difference and voluntary provisions included in
the profit for the accounting period
390,733.86
386,287.01
Share of the other mutual insurance companies' result for the financial
year included in the profit for the financial year
-202,402,569.98
-261,121,520.59
Total profit for the accounting period
68,280,943.04
228,194,898.05
Capital and reserves of the other mutual insurance companies
2,043,156,466.25
1,844,875,435.91
Total equity
4,069,026,175.86
3,805,843,179.22
Minority interests
221,279,878.20
184,501,223.27
Accumulated appropriations
Negative goodwill on consolidation
4,600.00
4,600.00
Technical provisions
Provision for unearned premiums in non-life insurance
568,760,323.45
535,324,503.84
Reinsurers' share
-9,047,149.88
-9,718,895.91
Total provision for unearned premiums in non-life insurance
559,713,173.57
525,605,607.93
Provision for unearned premiums in life insurance
1,325,635,593.92
1,402,922,854.38
Total provision for unearned premiums in life insurance
1,325,635,593.92
1,402,922,854.38
Provision for outstanding claims in non-life insurance
K13
2,144,193,887.55
2,181,998,260.76
Reinsurers' share
-37,492,197.87
-37,375,258.34
Total provision for outstanding claims in non-life insurance
2,106,701,689.68
2,144,623,002.42
Provision for outstanding claims in life insurance
643,738,751.00
653,879,196.00
Total provision for outstanding claims in life insurance
643,738,751.00
653,879,196.00
Equalization provision
1,108,672,760.68
1,046,826,365.30
Total technical provisions
5,744,461,968.85
5,773,857,026.03
Technical provisions for unit-linked policies
Technical provisions
3,257,801,230.00
3,056,850,712.00
Total technical provisions for unit-linked policies
3,257,801,230.00
3,056,850,712.00
Obligatory provisions
Other obligatory provisions
K14
5,055,422.17
3,470,973.77
Total obligatory provisions
5,055,422.17
3,470,973.77
Deposits received from reinsurers
1,117,436.16
1,345,768.32
Creditors
K16
Arising out of direct insurance operations
43,532,620.79
39,078,192.42
Arising out of reinsurance operations
8,984,871.79
13,012,815.78
Bonds
200,000,000.00
200,000,000.00
Loans from financial institutions
0.00
4,681,885.04
Other creditors
430,636,895.63
409,745,051.89
Deferred tax liabilities
K15
361,881.37
451,987.84
Total liabilities
683,516,269.58
666,969,932.97
Accruals and deferred income
115,724,552.12
111,510,712.64
Total liabilities
14,097,987,532.94
13,604,354,128.22
LocalTapiola General | Financial statements for 2025
105
9.3 Indirect cash flow statement, LocalTapiola Group
Cash flow from operations
2025
2024
Profit from ordinary activities/profit before extraordinary items
282,332,485.88
503,115,368.50
Adjustments
Changes in technical provisions
171,555,460.82
135,870,880.03
Value adjustments and revaluation of investments
-129,252,437.32
-188,125,931.53
Unrealized exchange rate gain/-loss
Changes in other obligatory provisions
1,584,448.40
1,070,620.68
Depreciation according to plan
105,347,843.01
111,866,476.73
Other adjustments
56,581,517.79
-121,341,898.87
Cash flow before change in working capital
488,149,318.58
442,455,515.54
Change in working capital:
Increase (-) / decrease (+) in non-interest-bearing short-term receivables
-91,529,386.20
26,560,437.93
Increase (-) / decrease (+) in non-interest-bearing short-term debts
19,986,276.70
66,398,182.57
Cash flow from operations before financial items and taxes
416,606,209.08
535,414,136.04
Other financial income and expenses paid/received
-69,592,281.65
-77,535,048.94
Direct taxes paid
-85,463,352.44
-101,336,082.72
Cash flow from operations
261,550,574.99
356,543,004.38
Cash flow from investments
Investments in assets (excl. cash and c. equivalents)
-228,879,331.43
-414,836,155.99
Capital gains from investments (excl. cash and c. equivalents)
84,903,170.38
301,536,104.98
Change in minority interest
24,738,948.29
19,554,149.55
Investments in tangible and intangible assets
as well as other assets and capital gains (net)
-99,636,469.46
-83,845,257.66
Cash flow from investments
-218,873,682.22
-177,591,159.12
Cash flow from financial
Loans raised
530,000,000.00
831,000,000.00
Repayment of debt
-526,250,000.00
-882,250,000.00
Interest on guarantee capital paid and
other distribution of profit
-7,148,639.64
-5,272,054.25
Cash flow from financial
-3,398,639.64
-56,522,054.25
Change in cash and cash equivalents
39,278,253.13
122,429,791.01
Cash and cash equivalents at the start of the year
607,675,442.43
485,245,651.42
Cash and cash equivalents at the end of the year
646,953,695.56
607,675,442.43
LocalTapiola General | Financial statements for 2025
106
9.4 Key figures, LocalTapiola Group
M€
General key figures describing financial development
2025
2024
2023
2022
2021
Operating profit
445.9
630.8
494.2
194.0
387.9
Total result
576.8
835.6
628.3
-469.9
773.9
Return on assets, %
5.1
7.6
6.0
-3.8
8.1
Average number of personnel during financial year
4,035
3,996
3,912
3,682
3,639
Key figures describing the financial development of non-
life insurance
Premium income
1,620.5
1,533.4
1,434.6
1,333.5
1,293.9
Loss ratio (excl. unwinding of discount expense), %
70.2
74.5
63.1
67.9
71.5
Loss ratio, %
71.7
75.8
64.1
68.6
72.8
Expense ratio, %
21.0
21.7
22.6
22.7
20.3
Combined ratio (excl. unwinding of discount expense), %
91.2
96.2
85.7
90.6
91.8
Combined ratio, %
92.7
97.5
86.6
91.4
93.1
Equalisation provision in reporting currency
1,108.7
1,046.8
1,057.5
953.9
948.4
Key figures describing the financial development of life
insurance
Premium income
418.9
416.0
333.4
428.7
480.4
Expense ratio, %
101.4
96.1
95.4
101.7
108.8
LocalTapiola General | Financial statements for 2025
107
9.5 Notes, LocalTapiola Group
9.5.1 Notes to the profit and loss account, LocalTapiola Group
K1. Premiums written
2025
2024
Non-life insurance
Direct insurance
Finland
1,600,450,152.65
1,506,620,360.20
Other countries
3,737,154.12
4,252,396.48
Direct insurance total
1,604,187,306.77
1,510,872,756.68
Reinsurance
16,316,920.75
22,576,507.10
Total
1,620,504,227.52
1,533,449,263.78
Life-insurance
Direct insurance
Finland
418,945,121.13
415,992,311.97
Direct insurance total
418,945,121.13
415,992,311.97
Total
418,945,121.13
415,992,311.97
Gross premiums written before reinsurers' share
2,039,449,348.65
1,949,441,575.75
K1.1 Items depreciated from premiums written
2025
2024
Credit loss on outstanding premiums
5,388,193.49
4,637,285.27
PAYG system fees
79,181,835.31
75,034,359.99
Premium tax
314,528,593.60
273,821,415.10
Fire brigade charge
4,110,776.10
3,901,943.56
Road safety charge
3,362,272.25
3,201,526.06
Labour protection charge
2,780,629.12
2,695,586.52
Total
409,352,299.87
363,292,116.50
LocalTapiola General | Financial statements for 2025
108
K1.2 Premiums written, life insurance
2025
2024
Direct insurance
Life-insurance
Unit-linked individual life insurance
68,906,519.92
87,807,488.86
Other individual life insurance
22,830,455.70
24,272,844.29
Unit-linked capital redemption policy
92,589,012.26
74,733,042.08
Other redemption policy
11,055.40
15,153.34
Employees' group life insurance
15,322,356.36
15,120,263.22
Other group life insurance
118,105,377.17
111,045,683.92
Total
317,764,776.81
312,994,475.71
Pension insurance
Unit-linked individual pension insurance
27,103,790.49
27,713,106.66
Other individual pension insurance
7,533,685.56
8,493,015.37
Unit-linked group pension insurance
47,345,297.74
45,557,075.54
Other group pension insurance
19,197,570.53
21,234,638.69
Total
101,180,344.32
102,997,836.26
Total direct premiums written
418,945,121.13
415,992,311.97
Gross premiums written before reinsurers' share
418,945,121.13
415,992,311.97
Gross premiums written before reinsurers' share
Regular premiums
345,931,826.24
344,728,247.13
Single premiums
73,013,294.89
71,264,064.84
Total
418,945,121.13
415,992,311.97
Premiums from contracts entitled
to bonuses
183,000,500.72
180,181,598.83
Premiums from unit-linked insurance
235,944,620.41
235,810,713.14
418,945,121.13
415,992,311.97
K1.3 Impact of life insurance rebates and discounts on
the result
2025
2024
Rebates
Life-insurance
10,527,996.30
9,646,238.00
Pension insurance
8,116,275.25
5,745,190.90
Rebates total
18,644,271.55
15,391,428.90
Discounts
Life-insurance
10,180,124.73
7,043,191.43
Total discounts
10,180,124.73
7,043,191.43
Change in the liability for future additional benefits for the financial
year
11,430,276.54
23,584,341.49
Rebates and discounts total
40,254,672.82
46,018,961.82
LocalTapiola General | Financial statements for 2025
109
K2. Claims paid under life insurance and profit for insurance groups for non-life insurance
K2.1 Claims paid before reinsurers' share, life insurance
2025
2024
Direct insurance
Life-insurance
259,856,819.24
282,874,041.84
Pension insurance
141,215,975.86
132,570,706.73
Total
401,072,795.10
415,444,748.57
Reinsurers´ share
-969,199.18
-884,607.77
Total claims paid
400,103,595.92
414,560,140.80
Of which:
Surrenders
149,050,418.47
184,280,075.04
Repayments of benefits
25,665,898.94
25,934,243.52
Other
226,356,477.69
205,230,430.01
401,072,795.10
415,444,748.57
Share of unit-linked insurance of claims paid
179,705,840.38
203,807,404.74
LocalTapiola General | Financial statements for 2025
110
K2.2 Profit by insurance groups
Premiums
written before
reinsurers'
share
Premiums
earned before
reinsurers'
share
Claims
incurred
before
reinsurers'
share
Operating
expenses
before
commissions
for
reinsurance
and profit
shares
Reinsurers'
share
Balance on
technical
account
before net
investment
income
Statutory workers'
compensation
2025
168,487,473.53
169,616,864.53
-129,195,101.11
-29,559,451.30
-198,926.33
10,663,385.79
2024
167,694,413.94
168,350,144.94
-120,214,319.82
-29,739,875.24
-225,995.49
18,169,954.39
2023
166,162,544.67
167,842,973.67
-90,419,218.87
-28,707,275.89
-211,785.20
48,504,693.71
Non-statutory accident
and health
2025
263,295,510.90
255,776,814.87
-201,770,671.86
-48,984,421.33
-143,624.00
4,878,097.68
2024
240,560,759.69
232,012,582.81
-194,003,247.03
-46,606,000.24
-314,476.39
-8,911,140.85
2023
215,430,630.96
208,859,796.09
-168,679,024.24
-45,941,112.94
-211,997.78
-5,972,338.87
Motor vehicle liability
2025
258,235,594.54
252,691,474.24
-108,059,114.89
-58,172,769.20
-956,752.90
85,502,837.25
2024
246,809,648.12
245,669,226.63
-115,712,061.07
-55,874,591.50
-2,462,994.04
71,619,580.02
2023
231,839,181.57
228,882,306.12
-55,015,265.71
-54,907,074.19
-3,097,939.02
115,862,027.20
Land vehicles
2025
359,873,209.04
345,429,960.05
-302,405,508.52
-72,219,336.52
-585,870.49
-29,780,755.48
2024
329,793,214.54
320,590,583.71
-299,055,229.65
-68,056,857.46
602,487.05
-45,919,016.35
2023
298,324,456.28
290,911,985.42
-249,731,044.60
-67,307,874.38
-600,519.26
-26,727,452.82
Marine, aviation, railway
rolling stock and
transport
2025
21,529,621.65
21,352,893.82
-12,337,499.35
-4,265,698.07
-152,542.09
4,597,154.31
2024
21,040,860.84
20,713,762.52
-12,175,578.73
-5,115,187.23
-234,338.07
3,188,658.49
2023
19,894,875.39
19,423,403.02
-9,568,075.86
-4,779,450.43
-102,207.41
4,973,669.32
Fire and other damage
to property
2025
416,740,205.16
410,899,272.87
-298,199,583.56
-87,042,545.13
-9,679,198.38
15,977,945.80
2024
397,617,641.64
390,528,949.08
-305,139,117.05
-85,237,079.88
-14,003,462.93
-13,850,710.78
2023
371,942,761.25
363,139,723.37
-251,795,238.82
-83,864,197.76
-11,089,508.53
16,390,778.26
General liability
2025
57,255,591.55
57,154,372.25
-34,284,806.42
-11,881,277.59
-1,270,532.22
9,717,756.02
2024
52,768,145.24
52,750,138.65
-24,807,829.00
-11,703,234.99
-1,324,380.77
14,914,693.89
2023
53,981,394.90
52,969,214.07
-24,539,464.77
-11,522,364.55
-1,378,016.02
15,529,368.73
Credit and suretyship
2025
5,099,407.63
3,689,811.16
-338,828.53
-947,341.34
-1,557,636.65
846,004.64
2024
3,220,651.66
3,918,576.53
-835,145.09
-794,896.24
-1,665,377.15
623,158.05
2023
2,784,318.89
3,603,201.44
-800,024.70
-655,791.98
-1,522,035.48
625,349.28
Legal expenses
2025
36,455,074.51
35,922,133.77
-23,599,699.00
-7,763,826.46
-1,333.16
4,557,275.15
2024
34,910,748.43
34,318,701.68
-26,436,241.73
-7,514,710.35
-1,271.12
366,478.48
2023
32,458,506.52
31,900,959.58
-24,409,561.73
-7,319,983.52
-4,227.05
167,187.28
Other
2025
17,215,618.26
17,029,732.60
773,417.38
-3,289,496.30
-7,285,960.69
7,227,692.99
2024
16,456,672.58
16,460,008.24
-31,405,336.85
-3,278,448.77
10,824,451.96
-7,399,325.42
2023
15,245,830.75
15,057,097.81
-8,699,148.50
-3,225,580.07
-2,406,659.49
725,709.75
Direct insurance total
2025
1,604,187,306.77
1,569,563,330.16
-1,109,417,395.86
-324,126,163.24
-21,832,376.91
114,187,394.15
2024
1,510,872,756.68
1,485,312,674.79
-1,129,784,106.02
-313,920,881.90
-8,805,356.95
32,802,329.92
2023
1,408,064,501.18
1,382,590,660.59
-883,656,067.80
-308,230,705.71
-20,624,895.24
170,078,991.84
Reinsurance
2025
16,316,920.75
17,505,077.75
-9,027,622.46
-9,268,768.69
-1,564,712.41
-2,356,025.81
2024
22,576,507.10
23,233,435.10
-6,879,027.30
-9,359,478.29
-3,420,599.97
3,574,329.54
2023
26,553,040.29
25,838,161.29
3,237,504.31
-9,331,398.44
-9,551,579.61
10,192,687.55
Total
2025
1,620,504,227.52
1,587,068,407.91
-1,118,445,018.32
-333,394,931.93
-23,397,089.01
111,831,368.65
2024
1,533,449,263.78
1,508,546,109.89
-1,136,663,133.32
-323,280,360.19
-12,225,956.92
36,376,659.46
2023
1,434,617,541.47
1,408,428,821.88
-880,418,563.49
-317,562,104.15
-30,176,474.85
180,271,679.39
LocalTapiola General | Financial statements for 2025
111
K2.2 Profit by insurance groups
Change in equalization
provision
2025
-61,846,395.38
2024
10,644,028.13
2023
-103,443,849.06
Balance on technical
account
2025
49,984,973.27
2024
47,020,687.59
2023
76,827,830.33
K3. Operating expenses and notes concerning personnel and members of corporate bodies
K3.1 Total operating expenses by activity
2025
2024
Claims management expenses
135,275,397.27
125,769,069.79
Operating expenses
382,178,328.88
370,550,058.75
Investment operating expenses
28,887,643.17
32,218,133.54
Other expenses
88,211,559.52
84,058,618.51
Total
634,552,928.84
612,595,880.59
K3.2 Profit and loss account item operating expenses
2025
2024
Insurance policy acquisition costs
Commissions for direct insurance
41,242,955.56
39,852,524.03
Commissions for reinsurance assumed and profit shares
2,693,957.17
3,493,144.24
Other insurance policy acquisition costs
145,983,525.58
138,564,122.25
189,920,438.31
181,909,790.52
Insurance policy management expenses
120,376,144.29
115,500,102.17
Administrative expenses
84,861,147.70
82,580,192.47
Commissions for reinsurance ceded and profit shares
-12,979,401.42
-9,440,026.41
Total
382,178,328.88
370,550,058.75
K3.3 Notes concerning personnel and members of corporate bodies
K3.3.1 Personnel expenses
2025
2024
Salaries and remunerations
281,345,942.21
270,708,798.33
Pension expenses
54,151,022.12
51,764,769.12
Other personnel expenses
8,643,200.59
6,071,873.95
Total
344,140,164.92
328,545,441.40
LocalTapiola General | Financial statements for 2025
112
K3.3.2 Managements' salaries and remunerations, pension commitments, monetary loans and terms
thereof, as well as guarantees and contingent liabilities
Managing directors and deputy managing
directors
Salaries and remunerations
10,407,532.37
10,437,178.77
Pension commitments
The retirement age of the managing director and
deputy managing director is stated by the law.
Monetary loans and terms thereof
No monetary loans granted.
Guarantees and contingent liabilities
No guarantees or contingent liabilities granted.
Board members and deputy board members
Salaries and remunerations
4,187,766.65
5,079,638.59
Pension commitments
The retirement age/resignation age of a full time
Board member is 63 years and the retirement age
of the Chair and the other members is stated by
law.
Monetary loans and terms thereof
No monetary loans granted.
Guarantees and contingent liabilities
No guarantees or contingent liabilities granted.
Supervisory boards
Salaries and remunerations
1,792,850.00
1,607,525.00
Pension commitments
No pension commitments.
Monetary loans and terms thereof
No monetary loans granted.
Guarantees and contingent liabilities
No guarantees or contingent liabilities granted.
K3.3.3 Average number of personnel during the financial year
Staff
4,035
3,996
K3.4 Auditor's fees by assignment category
2025
2024
Auditing
772,921.58
724,932.35
Assignments referred to in
section 1, subsection 1, paragraph 2 of the Auditing Act
1,882.50
3,465.18
Tax advice
23,966.63
0.00
Other services
455,429.62
129,528.64
Total
1,254,200.33
857,926.17
LocalTapiola General | Financial statements for 2025
113
K4. Net investment income and other income and expenses
K4.1 Specification of net investment income
Investment income
2025
2024
Income from group companies
Dividend income
146,548.86
177,401.26
Interest income
4,349.40
8,088.21
Total
150,898.26
185,489.47
Income from participating interests
Interest income
1,314,367.24
1,589,962.49
Total
1,314,367.24
1,589,962.49
Income from real estate investments in group companies
Other income
2,000.00
1,000.00
Total
2,000.00
1,000.00
Income from real estate investments in participating interests
Income from real estate investmets in other companies
Dividend income
567,671.43
552,581.28
Interest income
120,598.18
244,502.55
Other income
106,402,167.46
108,278,082.34
Total
107,090,437.07
109,075,166.17
Income from other investments
Dividend income
102,786,635.81
126,517,466.24
Interest income
62,419,424.08
81,946,974.94
Other income
49,875,007.07
41,624,733.40
Total
215,081,066.96
250,089,174.58
Total
323,638,769.53
360,940,792.71
Value readjustments
91,382,422.93
103,937,310.73
Realized gains
159,253,637.40
359,806,802.98
Total investment income
574,274,829.86
824,684,906.42
LocalTapiola General | Financial statements for 2025
114
K4.1 Specification of net investment income
Investment charges
2025
2024
Expenses arising from real estate investments
-45,808,307.16
-47,155,604.67
Expenses arising from other investments
-37,801,835.91
-34,343,884.70
Interest paid and other expenses on liabilities
From other companies
-1,705,337.97
-2,592,753.07
Total
-1,705,337.97
-2,592,753.07
Total
-85,315,481.04
-84,092,242.44
Value adjustments and depreciation
Value adjustments
-99,607,138.92
-110,132,078.36
Planned depreciation on buildings
-28,945,456.90
-29,924,892.91
Total
-128,552,595.82
-140,056,971.27
Realized losses
-74,350,467.02
-58,270,698.00
Total investment charges
-288,218,543.88
-282,419,911.71
Net investment income before revaluations and
revaluation adjustments
286,056,285.98
542,264,994.71
Revaluations of investments
189,204,616.61
253,560,940.67
Revaluation adjustments on investments
-57,835,528.30
-61,902,769.52
131,369,088.31
191,658,171.15
Net investment income in the profit and loss account
417,425,374.29
733,923,165.86
K4.2 Investment income and expenses for unit-linked
insurance policies (included in 4.1. investment
specification)
2025
2024
Investment income
72,665,184.28
71,190,599.04
Investment charges
-13,919,536.59
-7,486,859.27
Net investment income before revaluations and their adjustment
as well as value adjustments and readjustments
58,745,647.69
63,703,739.77
Revaluations of investments
197,298,924.37
256,856,230.15
Value readjustments
-62,748,729.20
-76,575,148.15
134,550,195.17
180,281,082.00
Net investment income in the profit and loss account
193,295,842.86
243,984,821.77
LocalTapiola General | Financial statements for 2025
115
K4.3 Specification of other income and expenses
Other income
2025
2024
Services sold to partner companies
209,837,406.77
241,361,879.00
Other other income
14,688,217.49
13,549,467.60
Total
224,525,624.26
254,911,346.60
Other expenses
Depreciation of consolidated goodwill
-12,514,479.80
-13,130,803.86
Expenses for services sold
-171,650,919.17
-204,909,644.06
Other expenses
-479,006.16
-616,025.70
Total
-184,644,405.13
-218,656,473.62
LocalTapiola General | Financial statements for 2025
116
9.5.2 Notes to the balance sheet, LocalTapiola Group
K5.1 Current value of investments and difference in valuation as well as difference in valuation of
derivatives
K5.1 Current value of investments and
difference between in valuation
2025
Investments
Remaining acquisition
cost
Book value
Current value
Real estate investments
Real estate
1,119,754,888.27
1,141,574,065.87
1,451,430,647.47
Other real estate shares
161,137,666.40
161,137,666.40
194,872,707.35
1,280,892,554.67
1,302,711,732.27
1,646,303,354.82
Investments in group companies
Shares and holdings
7,097,056.07
7,097,056.07
7,097,056.07
7,097,056.07
7,097,056.07
7,097,056.07
Investments in participating interests
Shares and holdings
49,040,518.34
49,040,518.34
89,066,029.80
Loans receivable
17,260,000.00
17,260,000.00
17,260,000.00
66,300,518.34
66,300,518.34
106,326,029.80
Other investments
Shares and holdings
4,485,167,689.86
5,273,831,599.49
6,207,858,178.22
Debt securities
1,152,672,679.74
1,152,672,679.74
1,032,097,658.98
Loans guaranteed by mortgages
166,740,494.31
166,740,494.31
166,740,494.30
Other loans
548,251,567.43
548,251,567.43
548,250,166.31
Deposits
15,000,000.00
15,000,000.00
15,000,000.00
Other investments
253,787.59
253,787.59
511,766.58
6,368,086,218.93
7,156,750,128.56
7,970,458,264.39
Deposits with ceding undertakings
512,234.34
512,234.34
512,234.34
7,722,888,582.35
8,533,371,669.58
9,730,696,939.42
The remaining acquisition cost of debt securities
includes:
2025
Difference between the nominal value and
acquisition
cost released (+) or charged (-) to interest income
271,044.07
Book value comprises
Revaluations released to income
21,819,177.67
Difference in valuation (difference between current
value and book value)
1,197,325,269.84
LocalTapiola General | Financial statements for 2025
117
2024
Investments
Remaining
acquisition cost
Book value
Current value
Real estate investments
Real estate
1,151,159,233.92
1,172,978,411.45
1,497,478,534.34
Other real estate shares
170,699,929.28
170,699,929.28
212,307,236.19
1,321,859,163.20
1,343,678,340.73
1,709,785,770.53
Investments in group companies
Shares and holdings
7,097,056.07
7,097,056.07
7,097,056.07
7,097,056.07
7,097,056.07
7,097,056.07
Investments in participating interests
Shares and holdings
43,862,169.18
43,862,169.18
64,054,336.50
Loans receivable
17,105,707.71
17,105,707.71
17,105,707.71
60,967,876.89
60,967,876.89
81,160,044.21
Other investments
Shares and holdings
4,347,309,912.20
4,981,644,666.53
5,751,675,558.76
Debt securities
1,257,773,264.25
1,257,773,264.25
1,163,792,656.36
Loans guaranteed by mortgages
301,839,456.78
301,839,456.78
301,839,456.64
Other loans
465,596,565.22
465,596,565.22
465,595,184.06
Deposits
11,000,000.00
11,000,000.00
11,000,000.00
Other investments
293,088.19
293,088.19
440,163.52
6,383,812,286.64
7,018,147,040.97
7,694,343,019.34
Deposits with ceding undertakings
590,336.58
590,336.58
590,336.58
7,774,326,719.38
8,430,480,651.24
9,492,976,226.73
The remaining acquisition cost of debt securities includes:
Difference between the nominal value and acquisition
cost released (+) or charged (-) to interest income
-348,672.24
Book value comprises
Revaluations released to income
21,819,177.67
Difference in valuation (difference between current value
and book value)
1,062,495,575.49
LocalTapiola General | Financial statements for 2025
118
K5.2 Difference in valuation of derivatives
2025
Derivative contracts
Remaining
acquisition cost
Book value
Current value
Other debtors
Prepayments for option contracts
3,183,122.00
3,183,122.00
3,183,122.00
Assets pledged as security for derivatives
9,677,635.93
9,677,635.93
9,677,635.93
Other creditors
Prepayments for option contracts
-3,390,556.06
-3,390,556.06
-3,390,556.06
Assets received as security for derivatives
-2,230,000.00
-2,230,000.00
-2,230,000.00
Other deferred income and credits
Futures and forward contracts
-1,922,431.73
-1,922,431.73
-1,520,861.77
5,317,770.14
5,317,770.14
5,719,340.10
Difference in valuation (difference between current value
and book value)
401,569.96
2024
Derivative contracts
Remaining
acquisition cost
Book value
Current value
Other debtors
Prepayments for option contracts
-2,756,353.00
-2,756,353.00
-2,756,353.00
Assets pledged as security for derivatives
4,530,000.00
4,530,000.00
4,530,000.00
Other creditors
Prepayments for option contracts
2,858,185.00
2,858,185.00
2,858,185.00
Assets received as security for derivatives
-5,310,000.00
-5,310,000.00
-5,310,000.00
Other deferred income and credits
Futures and forward contracts
-128,260.44
-128,260.44
4,227,853.85
-806,428.44
-806,428.44
3,549,685.85
Difference in valuation (difference between current value
and book value)
4,356,114.29
LocalTapiola General | Financial statements for 2025
119
K6. Real estate investment
Changes in real estate investments:
2025
Real estate and
shares in real estate
Acquisition cost on 1 Jan.
1,658,348,835.90
Increase
7,099,664.79
Decrease
-14,338,393.97
Transfers between items
-677,658.93
Acquisition cost on 31 Dec.
1,650,432,447.79
Accumulated depreciation on 1 Jan.
-280,646,741.85
Accumulated depreciation related to deductions and transfers
91,884.06
Depreciation for the financial year
-22,327,602.08
Accumulated depreciation on 31 Dec.
-302,882,459.87
Value adjustments on 1 Jan.
-55,842,930.99
Value adjustments related to deductions and transfers
1,384,513.09
Value adjustments for the financial year
-13,068,635.24
Value readjustments
869,619.82
Value adjustments on 31 Dec.
-66,657,433.32
Revaluations on 1 Jan.
21,819,177.67
Revaluations on 31 Dec.
21,819,177.67
Book value on 31 Dec.
1,302,711,732.27
Real estate and shares in real estate occupied for own activities:
Remaining acquisition cost
117,057,468.06
Book value
117,601,535.53
Current value
125,982,483.88
LocalTapiola General | Financial statements for 2025
120
K7. Investments in group companies and
participating interests
Shares and holdings in group companies
2025
2024
Acquisition cost on 1 Jan.
7,097,056.07
7,097,056.07
Book value on 31 Dec.
7,097,056.07
7,097,056.07
Shares and holdings in participating interests
Acquisition cost on 1 Jan.
45,517,542.24
38,074,301.91
Increase
8,668,531.49
13,755,824.11
Decrease
-3,490,182.33
-6,312,583.78
Acquisition cost on 31 Dec.
50,695,891.40
45,517,542.24
Value adjustments on 1 Jan.
-1,655,373.06
-1,655,373.06
Value adjustments on 31 Dec.
-1,655,373.06
-1,655,373.06
Book value on 31 Dec.
49,040,518.34
43,862,169.18
Debt securities issued by and loans to participating interests
Acquisition cost on 1 Jan.
20,651,011.01
21,201,011.01
Increase
3,330,000.00
1,500,000.00
Decrease
-1,423,988.00
-2,050,000.00
Acquisition cost on 31 Dec.
22,557,023.01
20,651,011.01
Value adjustments on 1 Jan.
-3,545,303.30
-1,530,000.00
Value adjustments for the financial year
-1,751,719.71
-2,565,303.30
Value readjustments
0.00
550,000.00
Value adjustments on 31 Dec.
-5,297,023.01
-3,545,303.30
Book value on 31 Dec.
17,260,000.00
17,105,707.71
Total
73,397,574.41
68,064,932.96
 
LocalTapiola General | Financial statements for 2025
121
K7.1 Investments in companies
included in LocalTapiola Group’s
consolidated financial statements
Shares and holdings
Domicile
Share of
stocks %
Equity
Profit for the
accounting period
Kauppakeskus Seppä Oy
2)
Espoo
100.0%
35,050.24
-22,176.38
Keskinäinen Vakuutusyhtiö Turva
4)
Tampere
76.0%
73,019,312.35
4,784,102.65
LTC-Otso Oy
2)
Helsinki
54.0%
9,126,544.14
7,333,533.58
LähiTapiola Aluekiinteistot Ky -group
3)
Espoo
96.2%
102,932,937.14
3,412,365.42
LähiTapiola Core Kiinteistot Ky -group
3)
Espoo
55.6%
46,924,770.32
-2,627,126.36
LähiTapiola Etelä Keskinäinen Vakuutusyhtiö
3)
Salo
100.0%
77,627,526.49
6,110,950.40
LähiTapiola Etelä-Pohjanmaa Keskinäinen
Vakuutusyhtiö
3)
Seinäjoki
100.0%
72,358,297.54
5,318,308.16
LähiTapiola Etelärannikko Keskinäinen
Vakuutusyhtiö
3)
Parainen
100.0%
14,940,762.19
2,322,337.44
LähiTapiola Itä Keskinäinen Vakuutusyhtiö
3)
Iisalmi
100.0%
90,807,739.26
6,960,712.23
LähiTapiola Kaakkois-Suomi Keskinäinen
Vakuutusyhtiö
3)
Lappeenranta
100.0%
86,328,022.32
6,846,157.72
LähiTapiola Kainuu-Koillismaa Keskinäinen
Vakuutusyhtiö
3)
Kajaani
100.0%
38,436,844.36
2,570,856.60
LähiTapiola Keskinäinen Henkivakuutusyhtiö
3)
Espoo
100.0%
966,491,113.86
79,837,009.47
LähiTapiola Keski-Suomi Keskinäinen
Vakuutusyhtiö
3)
Jyväskylä
100.0%
65,634,283.17
6,971,264.64
LähiTapiola Kiinteistösijoitus I GP Oy
1)
Espoo
100.0%
1,593.94
-60.00
LähiTapiola Kiinteistösijoitus I Ky
3)
Espoo
100.0%
18,952,223.47
3,107,982.46
LähiTapiola KR PK2 Ky -group
1)
Espoo
100.0%
118,446,101.21
3,787,975.35
LähiTapiola Lappi Keskinäinen Vakuutusyhtiö
3)
Rovaniemi
100.0%
30,887,641.97
3,474,329.13
LähiTapiola Loimi-Häme Keskinäinen
Vakuutusyhtiö
3)
Loimaa
100.0%
39,560,802.30
3,232,014.87
LähiTapiola Länsi-Suomi Keskinäinen
Vakuutusyhtiö
3)
Rauma
100.0%
114,977,646.02
13,081,142.49
LähiTapiola Palkitsemispalvelut Oy
3)
Espoo
100.0%
1,674,037.82
-982,355.89
LähiTapiola Palvelut Oy
1)
Espoo
100.0%
21,149,039.44
436,674.06
LähiTapiola Pirkanmaa Keskinäinen
Vakuutusyhtiö
3)
Tampere
100.0%
61,558,683.78
6,624,405.17
LähiTapiola Pohjanmaa Keskinäinen
Vakuutusyhtiö
3)
Vaasa
100.0%
88,049,622.02
9,111,940.50
LähiTapiola Pohjoinen Keskinäinen
Vakuutusyhtiö
3)
Oulu
100.0%
116,421,368.63
8,277,113.96
LähiTapiola Pääkaupunkiseutu Keskinäinen
Vakuutusyhtiö
3)
Helsinki
100.0%
99,281,912.66
13,323,307.69
LähiTapiola Pääomasijoitus GP Oy
3)
Espoo
100.0%
234.71
-60.00
LähiTapiola Pääomasijoitus I Ky
3)
Espoo
87.6%
42,221,903.44
6,284,154.19
LähiTapiola Pääomasijoitus II GP Oy
1)
Espoo
100.0%
1,296.22
-60.00
LähiTapiola Pääomasijoitus II Ky
3)
Espoo
92.0%
146,588,383.53
28,394,131.69
LähiTapiola Pääomasijoitus III GP Oy
1)
Espoo
100.0%
1,492.71
-60.00
LähiTapiola Pääomasijoitus III Ky
3)
Espoo
97.2%
31,743,052.87
-1,356,353.76
LähiTapiola Pääomasijoitus IV Ky
3)
Espoo
83.1%
248,302,836.21
5,416,064.77
LähiTapiola Pääomasijoitus V Ky
3)
Espoo
73.3%
178,768,275.75
1,274,399.29
LähiTapiola Pääomasijoitus VI Ky
3)
Espoo
74.4%
43,862,453.14
-3,054,342.36
LähiTapiola Rahoitus Oy
1)
Espoo
100.0%
126,507,172.68
12,870,134.90
LähiTapiola Rahoitusyhtiö I Ky
3)
Espoo
99.1%
556,488,139.50
21,018,082.07
LocalTapiola General | Financial statements for 2025
122
K7.1 Investments in companies
included in LocalTapiola Group’s
consolidated financial statements
Shares and holdings
Domicile
Share of
stocks %
Equity
Profit for the
accounting period
LähiTapiola Rahoitusyhtiö II Ky
3)
Espoo
100.0%
50,939,095.20
2,940,999.12
LähiTapiola Savo Keskinäinen Vakuutusyhtiö
3)
Kuopio
100.0%
61,320,554.11
5,334,960.22
LähiTapiola Savo-Karjala Keskinäinen
Vakuutusyhtiö
3)
Mikkeli
100.0%
36,996,733.76
4,911,243.07
LähiTapiola Tampereen Tornit Ky
3)
Espoo
95.6%
32,899,837.25
-3,073,291.62
LähiTapiola Tontit GP I Oy
3)
Espoo
97.6%
148,531.24
5,250.12
LähiTapiola Tontit GP II Oy
1)
Espoo
100.0%
108,217.49
3,858.77
LähiTapiola Tontit I Ky
3)
Espoo
80.0%
44,120,902.30
3,020,902.22
LähiTapiola Tontit II Ky
3)
Espoo
95.1%
64,952,686.33
3,352,686.33
LähiTapiola Uusimaa Keskinäinen Vakuutusyhtiö
3)
Porvoo
100.0%
67,956,014.32
7,730,184.17
LähiTapiola Varainhoito Oy -group
3)
Espoo
100.0%
65,182,479.76
-1,164,354.08
LähiTapiola Varsinais-Suomi Keskinäinen
Vakuutusyhtiö
3)
Turku
100.0%
58,863,651.77
8,442,019.87
LähiTapiola Velkasijoitus I GP Oy
1)
Espoo
100.0%
1,479.79
-60.00
LähiTapiola Velkasijoitus I Ky
3)
Espoo
98.5%
87,730,828.27
3,656,064.89
LähiTapiola Velkasijoitus II Ky
3)
Espoo
93.5%
203,077,329.76
5,591,285.67
LähiTapiola Velkasijoitus III Ky
3)
Espoo
86.6%
159,830,501.38
-1,979,650.10
LähiTapiola Vellamo Keskinäinen Vakuutusyhtiö
3)
Lahti
100.0%
84,319,435.65
8,582,130.09
LähiTapiola Yhteiset Kiinteistöt Ky
3)
Espoo
100.0%
164,088,342.21
2,287,114.25
LähiTapiola Yritysrahoitus I GP Oy
1)
Espoo
100.0%
5,931.40
-263.40
LähiTapiola Yritysrahoitus I Ky
3)
Espoo
100.0%
420,962,070.23
23,230,200.95
Suomen Vahinkovakuutus Oy
1)
Espoo
70.0%
45,974,060.72
3,843,651.37
Tapiola KR IV Ky
0.00
0.00
Tieto-Tapiola Oy
1)
Espoo
100.0%
5,053,705.31
4,277.32
Tietotyö Oy
1)
Espoo
100.0%
849,879.15
0.00
Vakuutusneuvonta Aura Oy
2)
Espoo
66.7%
10,634.40
0.00
Vakuutusneuvonta Pohja Oy
2)
Espoo
66.7%
10,577.17
0.00
Total
5,385,512,596.37
340,858,065.38
In addition, 60 (61) housing associations and real estate companies are integrated into the consolidated financial statements of
LocalTapiola Group.
1) A subsidiary belonging to the consolidated financial statements of LocalTapiola Group
2) A subsidiary, which belongs to the consolidated financial statements of LocalTapiola Group, and is a participating interest for
the group in accordance with the Accounting Act.
3) A subsidiary, which belongs to the consolidated financial statements of LocalTapiola Group, and is classified as other
investment in the group in accordance with the Accounting Act.
4) A subsidiary in accordance with the Accounting Act, not consolidated
LocalTapiola General | Financial statements for 2025
123
K7.2 Investments in
participating interests
Shares and holdings
Domicile
Share of
stocks %
Equity
Profit for the
accounting
period
Noja Holding Oy
2)
Turku
22.1%
2,404,738.32
104,690.96
Noja Rahoitus Oy
2)
Turku
22.1%
18,355,655.22
1,112,507.17
Pihlajalinna Oyj -group
3)
Tampere
27.0%
190,600,000.00
37,600,000.00
Total
211,360,393.54
38,817,198.13
In addition, 0 (1) housing associations and real estate companies are integrated into the consolidated financial statements of LocalTapiola
Group.
2) Participating interest
3) A participating interest, which belongs to the consolidated financial statements of LocalTapiola Group, and is classified as other
investment in the group in accordance with the Accounting Act.
K7.3 Other investments
Security
Share of
stocks %
Number
Book value
Current value
Home country
Finnish companies, listed
Kone Oyj B
0.01
40,500.00
1,622,125.27
2,452,680.00
Finland
Loihde Oyj
2.65
152,800.00
1,777,015.72
1,795,400.00
Finland
Neste Oyj
0.01
54,600.00
986,197.10
1,059,786.00
Finland
NoHo Partners Oyj
0.30
62,500.00
500,450.00
513,750.00
Finland
Nokia Oyj
0.01
386,000.00
1,777,266.62
2,150,792.00
Finland
Nordea Bank Abp
0.00
155,000.00
1,709,748.00
2,493,175.00
Finland
UPM-Kymmene Oyj
0.01
58,050.00
1,348,894.73
1,439,059.50
Finland
Wulff-Group PLC
5.95
411,100.00
1,636,178.00
1,636,178.00
Finland
Other
1,347,446.00
6,008,667.17
7,457,181.55
Total
2,667,996.00
17,366,542.61
20,998,002.05
Finnish companies, non-
listed
%
Number
Book value
Current value
Home country
Beely Oy
12.50
8,610.00
2,000,103.00
2,000,103.00
Finland
GT Invest Oy
13.28
1,328.00
1,974,070.75
1,974,070.75
Finland
Gebwell oy
13.65
113,200.00
2,264,000.00
2,264,000.00
Finland
GlucoModicum Oy B-osake
5.12
11,446.00
3,500,186.80
3,500,186.80
Finland
GlucoModicum Oy C-osake
1.16
2,610.00
1,000,674.00
1,000,674.00
Finland
Metsä1-lisäosuus
0.00
561,504.50
559,763.34
559,763.34
Finland
Oy Wedeco Ab
10.51
121.00
1,616,859.48
1,616,859.48
Finland
Sofigate Group Oy
5.95
1,209,400.00
4,058,785.26
4,353,840.00
Finland
Steady Energy B
3.95
12,507.00
3,999,988.74
3,999,988.74
Finland
Other
31,455,433.25
2,889,276.00
3,169,956.45
LocalTapiola General | Financial statements for 2025
124
K7.3 Other investments
Total
33,376,159.75
23,863,707.37
24,439,442.56
Foreign companies, listed
%
Number
Book value
Current value
Home country
ABB Ltd
0.00
32,000.00
1,550,495.20
2,034,614.55
Switzerland
ASML Holding NV
0.00
4,500.00
1,270,141.19
4,146,300.00
The Netherlands
AXA SA
0.00
75,000.00
1,850,351.47
3,072,000.00
France
Air Liquide SA
0.00
12,000.00
1,923,120.00
1,923,120.00
France
Aker BP ASA
0.01
90,000.00
1,952,292.50
1,952,292.50
Norway
Alcon AG
0.00
23,000.00
1,169,199.02
1,562,636.89
Switzerland
Alphabet Inc
0.00
11,900.00
806,480.67
3,178,059.58
USA
Amazon.com Inc
0.00
13,700.00
1,518,156.84
2,691,262.98
USA
Apple Inc
0.00
14,500.00
2,757,788.94
3,354,868.08
USA
Assa Abloy AB
0.01
75,000.00
1,664,103.55
2,487,409.32
Sweden
AstraZeneca PLC
0.00
23,000.00
1,730,883.15
3,634,769.66
UK
Atlas Copco AB
0.00
164,000.00
2,067,161.86
2,516,490.32
Sweden
Automatic Data Processing
Inc
0.00
3,800.00
556,902.05
831,892.76
USA
BAE Systems PLC
0.00
66,000.00
1,296,401.56
1,296,401.56
UK
Banco Bilbao Vizcaya
Argentaria SA
0.00
144,000.00
1,761,746.19
2,887,200.00
Spain
Bank of America Corp
0.00
17,500.00
785,038.69
819,148.94
USA
Boliden AB
0.02
60,000.00
1,596,791.94
2,856,535.60
Sweden
Brenntag SE
0.01
20,000.00
988,830.08
991,200.00
Germany
Broadcom Inc
0.00
5,400.00
688,542.34
1,590,587.24
USA
Credit Agricole SA
0.01
184,000.00
2,069,414.18
3,229,200.00
France
DSV A/S
0.00
9,000.00
1,091,457.26
1,946,069.70
Denmark
Danone SA
0.00
25,000.00
1,540,502.16
1,919,500.00
France
Deutsche Telekom AG
0.00
138,000.00
2,213,315.39
3,817,080.00
Germany
Eaton Corp PLC
0.00
2,700.00
730,366.73
731,895.32
Ireland
Eli Lilly & Co
0.00
1,800.00
1,427,281.04
1,646,318.30
USA
Epiroc AB
0.01
90,000.00
873,593.79
1,745,691.44
Sweden
Equinor ASA
0.00
82,000.00
1,640,969.35
1,640,969.35
Norway
Exelon Corp
0.00
33,000.00
1,224,229.79
1,224,229.79
USA
Givaudan SA
0.00
320.00
1,080,867.51
1,080,867.51
Switzerland
HSBC Holdings PLC
0.00
130,000.00
1,364,037.29
1,748,727.93
UK
Heineken NV
0.00
23,000.00
1,604,020.00
1,604,020.00
The Netherlands
ING Groep NV
0.00
125,011.00
1,395,360.23
3,001,514.11
The Netherlands
Investor AB
0.00
74,000.00
1,841,237.36
2,259,354.06
Sweden
JPMorgan Chase & Co
0.00
5,300.00
990,257.28
1,453,417.88
USA
L'Oreal SA
0.00
7,900.00
2,896,140.00
2,896,140.00
France
LVMH Moet Hennessy Louis
Vuitton SE
0.00
3,250.00
2,096,250.00
2,096,250.00
France
London Stock Exchange
Group PLC
0.00
13,000.00
1,333,669.49
1,333,669.49
UK
Medtronic PLC
0.00
10,100.00
608,901.30
825,707.23
Ireland
Mercedes-Benz Group AG
0.00
28,000.00
1,586,352.97
1,681,960.00
Germany
Merck KGaA
0.01
17,000.00
1,582,568.54
2,084,200.00
Germany
Meta Platforms Inc
0.00
4,100.00
2,131,043.36
2,303,292.77
USA
Microsoft Corp
0.00
7,500.00
1,942,502.63
3,086,936.17
USA
LocalTapiola General | Financial statements for 2025
125
K7.3 Other investments
NVIDIA Corp
0.00
19,500.00
1,049,792.05
3,095,106.39
USA
National Grid PLC
0.01
310,832.00
3,090,475.21
4,066,178.41
UK
Nestle SA
0.00
35,300.00
2,984,240.93
2,984,240.93
Switzerland
Novartis AG
0.00
20,000.00
2,049,277.19
2,353,446.43
Switzerland
Novo Nordisk A/S
0.00
48,800.00
2,125,105.44
2,125,105.44
Denmark
Oracle Corp
0.00
3,800.00
630,347.24
630,347.24
USA
Palo Alto Networks Inc
0.00
5,000.00
759,476.61
783,829.79
USA
PepsiCo Inc
0.00
7,400.00
662,114.34
903,870.64
USA
QUALCOMM Inc
0.00
4,300.00
625,970.21
625,970.21
USA
Rheinmetall AG
0.00
1,050.00
1,639,050.00
1,639,050.00
Germany
Roche Holding AG
0.00
10,500.00
2,523,568.24
3,699,914.11
Switzerland
SAP SE
0.00
12,200.00
1,890,408.08
2,541,870.00
Germany
Saab AB
0.01
29,000.00
1,300,815.18
1,440,687.52
Sweden
Salesforce Inc
0.00
2,400.00
520,234.21
541,092.77
USA
Sanofi SA
0.00
11,500.00
951,280.00
951,280.00
France
Schneider Electric SE
0.00
10,501.00
1,150,417.27
2,466,684.90
France
Siemens AG
0.00
14,000.00
2,103,932.30
3,348,100.00
Germany
Siemens Healthineers AG
0.00
36,062.00
1,251,708.74
1,619,905.04
Germany
Skandinaviska Enskilda
Banken AB
0.01
150,000.00
1,404,849.97
2,704,338.59
Sweden
Swiss Re AG
0.01
15,000.00
1,332,990.70
2,139,521.15
Switzerland
Tesco PLC
0.01
420,000.00
1,587,181.84
2,126,472.61
UK
Tesla Inc
0.00
1,650.00
532,607.96
631,521.70
USA
UBS Group AG
0.00
53,000.00
1,693,806.56
2,103,156.54
Switzerland
Unilever PLC
0.00
19,555.00
1,089,015.85
1,089,015.85
UK
Var Energi ASA
0.02
575,000.00
1,602,212.28
1,602,212.28
Norway
Veolia Environnement SA
0.01
98,000.00
2,815,139.14
2,912,560.00
France
Visa Inc
0
5,900.00
529,053.01
1,761,011.92
USA
Other
26,600.00
2,605,070.93
4,325,858.12
Total
3,816,131.00
105,698,906.37
146,396,149.61
Foreign companies, non-
listed
%
Number
Book value
Current value
Home country
European Alliance Partners
Company AG
12.73
9,248.00
599,314.68
1,053,434.91
Switzerland
Sos International A/S
4.69
133,720.00
2,172,782.56
0.00
Denmark
Other
68,001.00
3,868.32
3,868.32
Total
210,969.00
2,775,965.56
1,057,303.23
Mutual funds
Book value
Current value
Home country
Amundi Planet - Emerging
Green One
24,302,991.70
24,302,991.70
Luxembourg
Amundi Stoxx Europe 600
UCITS ETF
12,202,931.56
14,744,728.50
Luxembourg
BNP Paribas FPS FPE
502,205.61
505,704.96
France
BNP Paribas Global Senior
Corporate Loans
21,897,594.39
21,922,312.85
France
CapMan Nordic Property
Income Fund E
805,609.87
805,609.87
Finland
LocalTapiola General | Financial statements for 2025
126
K7.3 Other investments
Db X-Trackers Dj Eurostoxx
50
3,677,463.99
4,509,712.80
Luxembourg
EGP Fund Ky I Evli Growth
Partners I
815,235.37
898,683.75
Finland
eQ Yhteiskuntakiinteistöt
1,746,012.22
1,746,012.22
Finland
Erikoissijoitusrahasto Evli
Healthcare I Feeder B,
Tuotto-osuus, osuussarja A
461,537.04
691,724.32
Finland
Euro Choice VII SCS
930,142.69
1,244,927.03
Luxembourg
Evli Infrastructure Fund I
802,533.22
944,787.00
Finland
Evli Infrastructure Fund II
477,000.00
510,237.00
Finland
Evli Private Debt Fund l Ky
1,062,292.50
1,062,292.50
Finland
Evli Private Equity II Ky
434,021.69
543,156.06
Finland
Evli/EAI Residential I Ky
901,300.00
901,300.00
Finland
Goldman Sachs Emerging
Markets Equity
16,345,647.90
22,744,241.38
Luxembourg
iShares IV PLC - iShares MSCI
USA Mid-Cap Equal Weight
UCITS ETF
496,395.20
496,395.20
Ireland
LähiTapiola Aasia-Tyynimeri
1,746,908.90
2,011,744.30
Finland
LähiTapiola Eurooppa High
Yield ESG A
3,653,160.28
3,734,888.98
Finland
LähiTapiola Eurooppa HY A
227,741,721.35
254,716,489.57
Finland
LähiTapiola Eurooppa
Ilmastoindeksi A
305,825,694.19
404,487,135.23
Finland
LähiTapiola Eurooppa
Ilmastoindeksi A
720,349.60
753,450.24
Finland
LähiTapiola Eurooppa
Keskisuuret A
53,925,133.80
63,049,804.65
Finland
LähiTapiola Hanke
Yrityskorko A
176,979,703.51
185,906,682.85
Finland
LähiTapiola High Yield A
251,509,390.31
289,053,416.97
Finland
LähiTapiola Hyvinvointi A
21,091,790.90
29,955,919.54
Finland
LähiTapiola Kehittynyt Aasia
A
102,908,536.78
150,749,858.35
Finland
LähiTapiola Kehittyvät
Korkomarkkinat A
239,357,563.76
263,598,478.82
Finland
LähiTapiola Kehittyvät
Markkinat A
107,758,530.55
132,374,008.42
Finland
LähiTapiola Kestävä
Ympäristö A
20,533,810.49
31,966,732.66
Finland
LähiTapiola Korkomaailma A
12,430,780.76
15,095,698.89
Finland
LähiTapiola Lyhytkorko A
99,933,397.92
105,212,682.64
Finland
LähiTapiola Pitkäkorko A
94,628,336.23
95,102,212.55
Finland
LähiTapiola Pohjoinen
Yrityskorko A
156,234,085.89
192,487,611.18
Finland
LähiTapiola Pohjoismaat A
20,097,388.74
27,966,901.04
Finland
LähiTapiola Reaalikorko A
56,091,884.75
56,091,884.75
Finland
LähiTapiola Sijoituskiinteistöt
A
49,749,957.95
52,287,205.82
Finland
LähiTapiola Tulevaisuus A
19,816,522.53
38,794,976.71
Finland
LähiTapiola USA
Ilmastoindeksi A
216,550,664.79
354,723,700.40
Finland
LähiTapiola USA
Ilmastoindeksi A
3,767,453.05
4,095,758.14
Finland
LocalTapiola General | Financial statements for 2025
127
K7.3 Other investments
LähiTapiola USA Keskisuuret
A
25,316,125.25
34,245,186.38
Finland
LähiTapiola Vastuullinen
Lyhytkorko A
243,768.20
251,209.58
Finland
LähiTapiola Vastuullinen
Pohjoinen Yrityskorko A
563,254.96
595,888.59
Finland
LähiTapiola Yhteisö
Pitkäkorko IV A
322,893,179.38
322,893,179.38
Finland
LähiTapiola Yhteisö
Yrityskorko IV A
346,039,143.74
374,449,848.05
Finland
LähiTapiola Yrityskorko A
199,817,147.26
223,875,439.52
Finland
Mandatum Opportunistic
Loan Strategy
15,623,642.46
15,623,642.46
Finland
PIMCO GIS Emerging
Markets Bond ESG Fund
70,513,441.53
81,141,902.32
Ireland
Seligson & Co Aasia
Indeksirahasto A
10,409,662.72
12,559,515.92
Finland
Seligson & Co Euro-
obligaatio A
10,000,000.04
10,808,340.48
Finland
Seligson & Co Eurooppa
Indeksirahasto A
26,815,982.66
33,265,159.89
Finland
Seligson & Co Global Top 25
Brands A
8,446,346.48
9,918,088.07
Finland
Seligson & Co Global Top 25
Pharmaceuticals A
3,434,855.13
3,563,127.26
Finland
Seligson & Co Kehittyvät
Markkinat -A-
2,050,520.09
2,282,344.79
Finland
Seligson & Co Phoebus A
7,500,000.00
12,272,236.92
Finland
Seligson & Co Pohjois-
Amerikka Indeksirahasto A
22,944,475.13
26,335,963.31
Finland
Seligson & Co
Rahamarkkinarahasto A
801,477.64
841,610.20
Finland
Seligson & Co Suomi
Indeksirahasto A
700,000.00
937,805.27
Finland
S-Pankki Fenno Osake
27,739,183.20
53,285,539.32
Finland
S-Pankki High Yield Eurooppa
Korko
10,000,000.00
11,964,361.78
Finland
S-Pankki Kehittyvät
Markkinat Osake
36,064,864.57
54,157,515.21
Finland
S-Pankki Toimitila
9,886,063.84
9,886,063.84
Finland
Xtrackers (IE) PLC - Xtrackers
MSCI World UCITS ETF
893,024.29
977,360.00
Ireland
Xtrackers MSCI Emerging
Markets UCITS ETF (Acc)
35,874,980.39
47,997,691.78
Luxembourg
Xtrackers MSCI USA Index
UCITS ETF (DR)
3,936,570.28
5,251,752.00
USA
Xtrackers MSCI World UCITS
ETF 1C
3,394,153.14
4,036,034.60
USA
Ålandsbanken Tuulivoima C
1,538,139.53
1,538,139.53
Finland
Other
2,160,375.01
3,755,169.41
Total
3,536,514,058.90
4,211,502,175.70
Capital mutual funds
Book value
Current value
Home country
Altor Fund III (No. 2)
1,843,087.00
1,843,087.00
Jersey
Altor Fund IV (No.2) AB
11,367,914.68
11,367,914.68
Sweden
LocalTapiola General | Financial statements for 2025
128
K7.3 Other investments
Altor Fund V (No. 2) AB
16,702,747.81
20,888,086.71
Sweden
Altor Fund VI (No.2) AB
11,196,794.57
11,321,429.16
Sweden
Amanda V East L.P
919,958.80
1,045,310.00
Finland
Antin Infrastructure Partners
V-C SCSp
6,981,787.94
7,003,102.00
Luxembourg
Apax IX L.P.
6,375,298.07
8,881,877.18
Guernsey
Apax VIII - A L.P.
1,046,937.00
1,046,937.00
Guernsey
Apax X L.P.
15,916,171.75
20,661,680.79
Guernsey
Apax XI
6,795,004.00
6,795,004.00
Guernsey
Apera Private Debt Fund III
SCSp
15,349,224.83
16,861,080.80
Luxembourg
Apogem Secondary Fund VII
5,022,156.68
6,754,063.15
USA
Arcmont Senior Loan Fund II
(EUR) SLP
23,104,899.88
23,104,899.88
UK
Ares Capital Europe VI (E)
Unlevered SCSp
12,465,687.17
12,671,438.47
USA
Ares Private Credit Solutions
II, L.P
17,416,233.56
18,870,558.16
USA
Ares Private Credit Solutions,
L.P.
4,781,667.47
5,768,061.23
Cayman Islands
Ares Special Opportunities
Fund II
24,999,502.48
27,537,954.62
USA
Armada Mezzanine IV Ky
637,935.20
1,125,874.18
Finland
Armira III
11,100,000.00
12,270,507.96
Germany
Arrow Credit Opportunities II
SCSP, SICAV-RAIF
24,844,751.66
28,758,340.00
Luxembourg
Arrow Lending Opportunities
I B SCSp, SICAV-RAIF
13,280,219.08
14,291,133.08
UK
AXA LBO Fund V Core
209,987.00
209,987.00
France
AXA LBO Fund V
Supplementary
153,422.00
549,417.00
France
Beechbrook Private Debt III
L.P.
9,056,130.00
9,056,130.00
UK
Beechbrook UK SME Credit I
L.P.
1,036,102.43
1,036,102.43
UK
Blue Owl GP Stakes IV LP
3,802,795.90
9,193,048.31
Cayman Islands
Blue Owl GP Stakes V LP
7,406,637.99
7,406,637.99
Cayman Islands
Bowmark Capital Partners VI,
L.P.
24,494,660.39
26,203,260.37
UK
Bowmark Capital Partners
VII, L.P.
6,421,557.41
6,421,557.42
UK
Bridgepoint Direct Lending II
Unlevered SCSp
14,293,928.51
14,293,928.51
Luxembourg
Bridgepoint Europe IV F L.P.
1,422,974.00
1,422,974.00
UK
Bridgepoint Europe V C L.P.
5,523,142.60
9,141,994.00
UK
Bridgepoint Europe VI A L.P.
13,235,311.42
16,242,471.27
UK
Cheyne CRECH IX - Capital
Solutions Fund SCSp
15,330,000.00
15,665,179.72
UK
Cheyne European Strategic
Value Credit Fund II
9,893,066.91
12,889,563.21
Luxembourg
Committed Advisors
Secondary Fund V S.L.P.
13,703,906.65
18,168,460.74
France
Cordet Direct Lending II
SCSp
17,884,541.52
18,198,928.31
Luxembourg
LocalTapiola General | Financial statements for 2025
129
K7.3 Other investments
Cordet Direct Lending SCSp
9,523,686.34
12,785,523.84
Luxembourg
Crescent Mezzanine Partners
VI, L.P.
1,029,571.06
1,029,571.06
USA
Cross Ocean EUR ESS Fund
IV Closed L.P
12,884,987.00
21,209,630.00
Cayman Islands
Cross Ocean EUR ESS Fund V
Closed SCSp
6,000,000.00
6,433,595.00
Luxembourg
Crown European Private Debt
II SCSp
9,682,488.24
9,682,488.24
Luxembourg
Dasos Kestävä Metsä ja Puu
III
25,803,972.30
31,040,752.92
Finland
Dasos Timberland Fund II
33,164,128.20
48,491,019.64
Luxembourg
DevCo Partners I Ky
2,548,889.34
2,817,582.00
Finland
DWS European Direct
Lending Fund
6,881,333.33
7,129,207.09
Germany
eQ PE IX US Feeder
1,087,193.29
1,863,251.92
Finland
eQ PE VIII North LP
3,486,701.85
3,732,843.79
Finland
eQ PE X North Feeder
2,190,000.00
2,934,054.19
Finland
eQ PE XI US Feeder
2,805,458.44
3,220,041.70
Finland
eQ PE XII North Feeder
1,919,999.99
2,559,220.76
Finland
ETHOS LIGHT INDUSTRIAL
STRATEGIES I KY
884,945.00
884,945.00
Finland
ETHOS RESIDENTIAL
OPPORTUNITIES I KY
521,940.00
521,940.00
Finland
Eurazeo Private Debt VI SCSp
SICAV-RAIF
22,821,968.70
22,821,968.70
Luxembourg
Euro Choice Secondary II L.P.
7,860,972.55
11,368,116.93
UK
Everside International Fund
IV, LP
12,223,281.70
12,223,281.70
USA
FIM Lapset ja nuoret I Ky
895,365.64
968,517.02
Finland
Fokus Nordic Property Fund
Finland I Ky
28,721,945.99
28,721,945.99
Finland
Fortress Credit Opportunities
Fund VI (C) L.P.
9,571,015.79
10,099,095.14
USA
FPCI Indigo Capital
370,660.00
370,660.00
France
FSN Capital V L.P.
13,175,204.88
16,113,338.26
Jersey
FSN Capital VI L.P.
16,883,179.28
18,331,596.00
Jersey
Global Infrastructure
Partners V C2 SCSp
3,595,662.24
4,200,596.89
Luxembourg
GreenOak Europe Secured
Lending II SLP
9,375,791.00
9,716,554.00
UK
Hayfin Direct Lending Fund
IV
24,685,631.41
24,685,631.41
Luxembourg
Hollyport Secondary
Opportunities Fund VIII
17,578,922.14
27,454,763.40
Jersey
Hollyport Secondary
Opportunities IX Feeder SCSp
4,526,492.03
7,015,640.85
Luxembourg
HPS Special Situations
Opportunity Offshore Fund II,
SCSp
10,618,380.64
11,223,622.13
USA
ICECAPITAL Residential
Property Fund I Ky
10,830,708.65
12,404,133.50
Finland
ICG Europe Fund V
404,005.54
404,005.54
Jersey
ICG Europe Fund VI
2,666,773.51
2,666,773.51
Jersey
LocalTapiola General | Financial statements for 2025
130
K7.3 Other investments
ICG Europe Fund VII Feeder
SCSp
9,394,226.00
9,394,226.00
Luxembourg
ICG Europe Fund VIII Feeder
SCSp
22,575,084.63
27,338,037.60
Luxembourg
ICG Senior Debt Partners
Fund 2
5,218,232.00
5,218,232.00
Luxembourg
ICG Senior Debt Partners
Fund 3
6,668,863.00
6,668,863.00
Luxembourg
ICG Senior Debt Partners
Fund 4
13,592,079.00
13,592,079.00
Luxembourg
IK DC II Fund No.2 SCSp
0.00
-150,352.00
Luxembourg
IK SC IV Fund No.2 SCSp
0.00
-348,514.00
Luxembourg
IK Small Cap III DC Fund No.2
SCSp
5,565,451.70
5,976,753.59
Luxembourg
IK Small Cap III Fund No.2
SCSp
18,809,803.58
23,422,313.00
Luxembourg
Infranode I (No. 1) AB
20,455,038.40
20,455,038.40
Sweden
Juuri Rahasto I Ky
12,513,963.05
12,743,799.00
Finland
Juuri Rahasto II Ky
8,809,803.68
11,058,957.30
Finland
Kartesia Credit Opportunities
V SCS
17,473,897.19
17,473,897.19
Luxembourg
Kartesia Credit Opportunities
VI SCS
8,147,361.11
8,406,478.28
Luxembourg
Kartesia Senior Opportunities
I SCS
23,390,626.63
23,390,626.63
Luxembourg
Kasvurahastojen Rahasto III
Ky
7,422,809.89
9,059,705.71
Finland
Kasvurahastojen Rahasto IV
Ky
4,839,489.88
4,839,489.88
Finland
Kasvurahastojen Rahasto V
Ky
1,522,763.00
1,522,763.00
Finland
Korona Fund III Ky
486,527.00
486,527.00
Finland
KSK Parking I Ky
2,731,018.97
2,731,018.97
Finland
KSK Parking I Ky
2,731,018.97
2,731,018.97
Finland
KSK Redi Ky
15,475,774.18
15,475,774.18
Finland
KSK Redi Ky
15,475,774.18
15,475,774.18
Finland
LLR Equity Partners VII, L.P.
6,010,321.56
6,033,957.45
USA
Luotsi Asuntorahasto Ky
5,608,360.77
5,979,636.00
Finland
LähiTapiola Asuntorahasto
Prime Ky
9,273,818.32
9,273,818.32
Finland
LähiTapiola Asuntosijoitus
Suomi Ky
66,503,407.64
67,606,635.68
Finland
LähiTapiola
Keskustakiinteistöt Ky
74,976,651.00
74,976,651.00
Finland
LähiTapiola
Yhteiskuntakiinteistöt Suomi
Ky
49,854,141.14
49,854,141.14
Finland
MB Equity Fund V Ky
52,407.36
10,388,608.91
Finland
MB Equity Fund VI Ky
11,239,515.57
11,822,085.00
Finland
mcp Opportunity Secondary
Program III, L.P.
1,942,538.04
4,421,267.38
UK
mcp Opportunity Secondary
Program IV, L.P.
144,403.26
11,619,010.15
UK
mcp Opportunity Secondary
Program V, S.L.P.
19,769,886.49
25,944,888.00
UK
LocalTapiola General | Financial statements for 2025
131
K7.3 Other investments
mcp Opportunity Secondary
Program VI Feeder SCSp
1,770,332.74
2,547,650.38
UK
MML Partnership Capital VIII
S.C.Sp.
10,313,719.29
11,144,567.00
Luxembourg
NB Private Debt Fund II LP
632,420.43
632,420.43
USA
Nest Capital 2015 Fund Ky
5,433.14
12,887.00
Finland
New Mountain Partners VI
20,637,105.57
28,083,748.94
USA
New Mountain Partners VII
Luxembourg, SCSp
9,444,314.22
10,119,980.43
Luxembourg
Nordic Mezzanine Fund III
751,382.00
751,382.00
UK
North Savo Startup Fund Ky
750,000.00
750,000.00
Finland
Oakley Capital V-B1 SCSp
13,750,000.00
14,937,143.00
Luxembourg
One Equity Partners IX-B,
SCSP
11,000,137.02
11,000,137.02
USA
Partners Group Direct Equity
IV (EUR) L.P. S.C.Sp
21,595,547.56
26,066,710.00
Luxembourg
Polus Special Situations Fund
SCSp
22,050,000.00
24,575,194.00
Luxembourg
Private Debt Co-Investor
Fund II
7,607,901.94
7,607,901.94
Luxembourg
Rantum Capital GmbH & Co.
Private Debt Fund I KG
3,279,371.05
4,417,023.00
Germany
Rantum Capital GmbH & Co.
Private Debt Fund II KG
19,303,772.54
20,390,869.43
Germany
Rantum Capital GmbH & Co.
Private Debt Fund III KG
24,944,289.37
27,461,926.51
Germany
Real Estate Debt &
Secondaries Ky
258,211.50
258,211.50
Finland
Real Estate Fund of Funds II
Ky
7,259.53
7,259.53
Finland
Rivean Capital Fund VII
10,995,028.79
10,995,028.79
The Netherlands
RoundShield Fund V LP
12,608,559.78
12,852,701.33
UK
Saga VI EUR K/S
8,590,000.00
8,590,000.00
Denmark
Saga VI USD K/S
7,104,352.33
7,707,193.19
Denmark
Saga VII EUR K/S
8,125,792.00
11,137,000.00
Denmark
Saga VII USD K/S
8,448,567.21
10,008,510.64
Denmark
Sentica Buyout V Ky
5,734,292.00
5,734,292.00
Finland
Signal Alpha III Fund LP
14,761,683.42
16,429,392.52
Jersey
Siguler Guff Small Business
Credit Opportunities Fund II,
LP
12,930,871.68
12,930,871.68
USA
Siguler Guff Small Business
Credit Opportunities Fund LP
3,737,028.30
5,258,385.36
USA
StepStone Secondary
Opportunities Fund IV, L.P.
3,290,155.11
6,199,789.79
Luxembourg
StepStone Secondary
Opportunities Fund V Europe
SCSp
18,217,887.75
20,011,411.06
Luxembourg
Tikehau Direct Lending IV
8,833,752.36
9,115,969.97
Luxembourg
TPG Partners VII, L.P.
4,275,966.81
4,275,966.81
USA
TPG Partners VIII
23,860,255.36
29,948,880.00
USA
Tuohex Kiinteistörahasto I Ky
26,174,434.63
26,829,878.00
Finland
UB Forest Industry Green
Growth Fund I Ky
950,783.69
950,783.69
Finland
LocalTapiola General | Financial statements for 2025
132
K7.3 Other investments
Vaaka Partners Buyout Fund
III Ky
4,309,733.33
9,038,510.92
Finland
Vaaka Partners Buyout Fund
IV Ky
9,086,494.71
9,696,732.36
Finland
VSS Structured Capital
Parallel III, L.P.
15,363,657.88
17,787,028.09
USA
WasaGroup Fund II Ky
718,005.25
763,442.36
Finland
WasaGroup Fund III Ky
1,620,213.14
2,558,938.24
Finland
Other
47,861,247.63
56,902,291.80
Total
1,587,612,418.68
1,803,465,105.07
Total other investments,
shares and holdings
5,273,831,599.49
6,207,858,178.22
LocalTapiola General | Financial statements for 2025
133
K7.4 Assets covering unit linked policies
Security
Book value
Current value
Home country
Shares
Bittium Oyj
2,061,398.60
2,061,398.60
Finland
Enento Group Oyj
548,422.94
548,422.94
Finland
Evli Oyj
3,153,852.60
3,153,852.60
Finland
Kesko Oyj
671,816.50
671,816.50
Finland
Kone Oyj
1,255,590.48
1,255,590.48
Finland
Lindex Group OYJ
1,498,494.66
1,498,494.66
Finland
Metso Oyj
975,048.20
975,048.20
Finland
Neste Oyj
749,226.00
749,226.00
Finland
Nokia Oyj
1,659,358.31
1,659,358.31
Finland
Nordea Bank Abp
2,180,321.75
2,180,321.75
Finland
Orion Oyj
878,815.55
878,815.55
Finland
Sampo Oyj
1,256,541.20
1,256,541.20
Finland
UPM-Kymmene Oyj
539,603.93
539,603.93
Finland
United Bankers Oyj
1,282,065.00
1,282,065.00
Finland
Wartsila OYJ Abp
1,974,024.00
1,974,024.00
Finland
Other
20,213,083.36
20,213,083.36
Total
40,897,663.08
40,897,663.08
Mutual funds
Book value
Current value
Home country
Vanguard FTSE All-World UCITS
735,679.78
735,679.78
Ireland
iShares Core S&P 500 UCITS
5,672,246.30
5,672,246.30
Ireland
iShares MSCI EM ESG Enhanced U
11,382,312.07
11,382,312.07
Ireland
iShares MSCI Europe SRI UCITS ETF
765,974.40
765,974.40
Ireland
iShares MSCI Japan ESG Enhanced UCITS ETF
2,745,380.64
2,745,380.64
Ireland
iShares NASDAQ 100 UCITS ETF U
536,508.80
536,508.80
Ireland
BGF European High Yield Bond Fund Z2 EUR
5,599,246.76
5,599,246.76
Luxembourg
Emerging Markets Debt Opportunities Fund
8,919,816.91
8,919,816.91
Luxembourg
Evli Swedish Small Cap B
5,016,829.22
5,016,829.22
Sweden
X-trackers MSCI Europe Small Cap ETF
4,816,715.10
4,816,715.10
Germany
ALANDSBANKEN EURO BOND-B
886,921.81
886,921.81
Finland
Alandsbanken Euro High Yield B
696,534.38
696,534.38
Finland
Alandsbanken Global Equity
710,093.79
710,093.79
Finland
EAB Private Equity Oy Project Fourth Ky
2,537,990.00
2,537,990.00
Finland
EAB Renewable Energy Infrastructure Fund II Ky
1,219,831.61
1,219,831.61
Finland
EAI Residential asuntorahasto 2015
1,208,144.00
1,208,144.00
Finland
EAI Residential asuntorahasto 2016
526,320.00
526,320.00
Finland
EAI Residential asuntorahasto 2018
584,870.00
584,870.00
Finland
EQ EUROOPPA PIENYHTIO-1K
530,003.77
530,003.77
Finland
EQ Eurooppa Indeksi-1 K
1,141,549.75
1,141,549.75
Finland
EQ Eurooppa Osinko 1 K
1,279,015.29
1,279,015.29
Finland
EVLI EMERGING FRONTIER-B
10,951,185.60
10,951,185.60
Finland
EVLI EMERGING MKT CREDIT-B
8,640,794.88
8,640,794.88
Finland
EVLI EQUITY FACTOR USA-B
1,460,788.38
1,460,788.38
Finland
EVLI FINNISH SMALL CAP
6,712,953.82
6,712,953.82
Finland
EVLI GEM-B
6,050,794.59
6,050,794.59
Finland
LocalTapiola General | Financial statements for 2025
134
K7.4 Assets covering unit linked policies
EVLI NORTH AMERICA-B
1,052,272.22
1,052,272.22
Finland
EVLI PRIVATE DEBT FUND I KY
5,705,121.43
5,705,121.43
Finland
EVLI RENTAL YIELD AIF-A
12,787,738.28
12,787,738.28
Finland
Erikoissijoitusrahasto Elite
2,215,068.64
2,215,068.64
Finland
Erikoissijoitusrahasto UB Metsä A
684,277.02
684,277.02
Finland
Erikoissijoitusrahasto UB Nordic Property
2,060,321.77
2,060,321.77
Finland
Euro Choice VII Feeder voitonjakolaina
3,985,600.10
3,985,600.10
Finland
Evli Atlas USA Enhanced Index
23,393,304.03
23,393,304.03
Finland
Evli Euro Likvidi B
1,326,051.48
1,326,051.48
Finland
Evli Eurooppa B
2,636,477.47
2,636,477.47
Finland
Evli Eurooppa Kasvu B
5,319,384.16
5,319,384.16
Finland
Evli European High Yield B
18,827,213.05
18,827,213.05
Finland
Evli Green Corporate Bond B
11,051,656.26
11,051,656.26
Finland
Evli Growth Partners I yhtiöosuus
6,610,226.18
6,610,226.18
Finland
Evli Growth Partners II yhtiöosuus
5,964,983.20
5,964,983.20
Finland
Evli Hannibal
4,178,107.74
4,178,107.74
Finland
Evli Healthcare I yhtiöosuus
18,783,013.40
18,783,013.40
Finland
Evli Impact Equity B
4,500,248.52
4,500,248.52
Finland
Evli Impact Forest Fund I
5,836,381.79
5,836,381.79
Finland
Evli Impact Forest Fund II
1,454,085.50
1,454,085.50
Finland
Evli Infrastructure Fund I Ky
10,221,760.20
10,221,760.20
Finland
Evli Infrastructure Fund II Ky
3,677,489.20
3,677,489.20
Finland
Evli Leveraged Loan Fund
1,599,883.53
1,599,883.53
Finland
Evli Lyhyt Yrityslaina B
7,709,245.41
7,709,245.41
Finland
Evli Maailma B
1,325,019.88
1,325,019.88
Finland
Evli Nordic High Yield
6,321,087.48
6,321,087.48
Finland
Evli Nordic Senior Secured Loan B
5,132,604.44
5,132,604.44
Finland
Evli Private Capital Fund I Ky
1,270,370.25
1,270,370.25
Finland
Evli Private Debt Fund II
2,530,728.90
2,530,728.90
Finland
Evli Private Equity II yhtiöosuus
12,889,381.25
12,889,381.25
Finland
Evli Private Equity III yhtiöosuus
4,862,572.80
4,862,572.80
Finland
Evli Residential I yhtiöosuus (2020)
4,506,500.00
4,506,500.00
Finland
Evli Residential II yhtiöosuus
4,684,028.58
4,684,028.58
Finland
Evli Suomi Select B
6,498,705.72
6,498,705.72
Finland
Evli Takt.Alpha-Korko B
23,373,639.87
23,373,639.87
Finland
Evli Varainhoito 50 B
1,559,209.10
1,559,209.10
Finland
Harkitseva Varainhoito
3,394,973.68
3,394,973.68
Finland
Kiinteistö-sijoitussalkku
129,844,341.53
129,844,341.53
Finland
Kiinteistö-sijoitussalkku A
2,457,287.74
2,457,287.74
Finland
Korkostrategia
2,050,028.60
2,050,028.60
Finland
Laaja Maltti
16,013,690.54
16,013,690.54
Finland
Laaja Rohkea
39,663,088.72
39,663,088.72
Finland
Laaja Tasapaino 
57,502,607.52
57,502,607.52
Finland
LähiTapiola 2025 A
196,220,471.23
196,220,471.23
Finland
LähiTapiola 2035 A
150,427,487.82
150,427,487.82
Finland
LähiTapiola 2045 A
39,285,335.79
39,285,335.79
Finland
LähiTapiola Asuntosijoitus Prime
7,732,055.99
7,732,055.99
Finland
LocalTapiola General | Financial statements for 2025
135
K7.4 Assets covering unit linked policies
LähiTapiola Asuntosijoitus Suomi
3,388,126.34
3,388,126.34
Finland
LähiTapiola Eurooppa HY A
3,234,606.14
3,234,606.14
Finland
LähiTapiola Eurooppa Ilmastoindeksi A
15,558,062.62
15,558,062.62
Finland
LähiTapiola Eurooppa Keskisuuret A
24,758,051.13
24,758,051.13
Finland
LähiTapiola High Yield A
5,292,527.99
5,292,527.99
Finland
LähiTapiola Hyvinvointi A
28,367,487.18
28,367,487.18
Finland
LähiTapiola Kehittynyt Aasia A
18,960,619.04
18,960,619.04
Finland
LähiTapiola Kehittyvät Korkomarkkinat A
2,114,775.32
2,114,775.32
Finland
LähiTapiola Kehittyvät Markkinat A
6,969,446.11
6,969,446.11
Finland
LähiTapiola Kestävä Ympäristö A
10,689,772.82
10,689,772.82
Finland
LähiTapiola Korkomaailma A
47,792,735.70
47,792,735.70
Finland
LähiTapiola Lyhytkorko A
35,847,435.47
35,847,435.47
Finland
LähiTapiola Lyhytkorko VI A
3,103,413.97
3,103,413.97
Finland
LähiTapiola Maailma 20 A
28,783,659.13
28,783,659.13
Finland
LähiTapiola Maailma 50 A
114,545,328.16
114,545,328.16
Finland
LähiTapiola Maailma 80 A
109,383,499.87
109,383,499.87
Finland
LähiTapiola Metsäsijoitus
5,473,862.19
5,473,862.19
Finland
LähiTapiola Pitkäkorko A
4,028,771.82
4,028,771.82
Finland
LähiTapiola Pohjoinen Yrityskorko A
66,340,537.51
66,340,537.51
Finland
LähiTapiola Pohjoinen Yrityskorko VI A
23,168,941.59
23,168,941.59
Finland
LähiTapiola Pohjoismaat A
2,373,451.93
2,373,451.93
Finland
LähiTapiola Tapiolan Keskus
1,233,317.91
1,233,317.91
Finland
LähiTapiola Tulevaisuus A
51,881,748.87
51,881,748.87
Finland
LähiTapiola USA Ilmastoindeksi A
41,644,179.57
41,644,179.57
Finland
LähiTapiola USA Keskisuuret A
11,760,932.04
11,760,932.04
Finland
LähiTapiola Yrityskorko A
4,745,760.26
4,745,760.26
Finland
Momentum-varainhoito
18,382,546.79
18,382,546.79
Finland
Project Third KY
1,296,350.00
1,296,350.00
Finland
Pääomasijoitukset-sij.salkku A
14,488,855.83
14,488,855.83
Finland
Pääomasijoitussalkku I
22,882,761.13
22,882,761.13
Finland
Reipas Varainhoito
12,381,920.53
12,381,920.53
Finland
Rohkea Varainhoito
26,048,751.97
26,048,751.97
Finland
S-Pankki Fenno Osake
20,635,378.13
20,635,378.13
Finland
S-Pankki High Yield Eurooppa Korko
569,710.96
569,710.96
Finland
S-Pankki Kehittyvät Markkinat Osake
36,895,170.79
36,895,170.79
Finland
S-Pankki USA Osake A
964,087.43
964,087.43
Finland
S-Pankki Varainhoito 70 A
719,446.73
719,446.73
Finland
S-Sijoituskori Kohtuullinen
1,668,127.23
1,668,127.23
Finland
S-Sijoituskori Varovainen
1,456,223.39
1,456,223.39
Finland
Saari I Ky
803,796.56
803,796.56
Finland
Seligson & Co Aasia Indeksirahasto A
12,450,638.05
12,450,638.05
Finland
Seligson & Co Euro Corporate Bond A
686,304.82
686,304.82
Finland
Seligson & Co Euro-obligaatio A
871,515.92
871,515.92
Finland
Seligson & Co Eurooppa Indeksirahasto A
26,453,852.16
26,453,852.16
Finland
Seligson & Co Global Top 25 Brands A
52,679,620.07
52,679,620.07
Finland
Seligson & Co Global Top 25 Pharmaceuticals A
28,434,958.80
28,434,958.80
Finland
Seligson & Co OMX Helsinki 25 -indeksiosuus
1,353,344.00
1,353,344.00
Finland
LocalTapiola General | Financial statements for 2025
136
K7.4 Assets covering unit linked policies
Seligson & Co Perheyhtiö A
3,235,576.45
3,235,576.45
Finland
Seligson & Co Pharos A
5,288,207.20
5,288,207.20
Finland
Seligson & Co Phoebus A
11,397,998.59
11,397,998.59
Finland
Seligson & Co Pohjois-Amerikka Indeksirahasto A
27,631,733.95
27,631,733.95
Finland
Seligson & Co Rahamarkkinarahasto A
13,990,139.85
13,990,139.85
Finland
Seligson & Co Suomi Indeksirahasto A
28,268,427.47
28,268,427.47
Finland
Seligson & Co Tropico LatAm A
1,089,538.70
1,089,538.70
Finland
Seligson & Co Varainhoito 100
47,913,166.28
47,913,166.28
Finland
Seligson & Co Varainhoito 25
40,411,783.23
40,411,783.23
Finland
Seligson & Co Varainhoito 50
145,642,103.55
145,642,103.55
Finland
Seligson & Co Varainhoito 75
137,039,932.55
137,039,932.55
Finland
Sijoitusrahasto Evli Atlas Europe Enhanced Index
16,577,757.16
16,577,757.16
Finland
Sijoitusrahasto Evli USA Kasvu B
17,768,094.74
17,768,094.74
Finland
Strategia 10
4,254,877.34
4,254,877.34
Finland
Strategia 30
15,252,759.05
15,252,759.05
Finland
Strategia 50
15,232,638.36
15,232,638.36
Finland
Strategia 70
6,017,677.71
6,017,677.71
Finland
Strategia varainhoito 30
8,360,676.93
8,360,676.93
Finland
TOP-indeksivarainhoito 25
13,160,627.76
13,160,627.76
Finland
TOP-indeksivarainhoito 50
1,814,040.00
1,814,040.00
Finland
UB Lyhyt Korko Sijoitusrahasto
512,851.83
512,851.83
Finland
UB NORDIC FOREST FUND III KY
618,472.15
618,472.15
Finland
Vakaa Varainhoito
7,192,435.98
7,192,435.98
Finland
Varainhoito 100
75,503,677.34
75,503,677.34
Finland
Varainhoito Eurooppa Plus
30,698,291.48
30,698,291.48
Finland
Varainhoito Maltillinen
92,107,253.72
92,107,253.72
Finland
Varainhoito Nordic Plus
16,290,140.54
16,290,140.54
Finland
Varainhoito Suomi Plus
40,833,921.76
40,833,921.76
Finland
Varainhoito Tasapainoinen
105,837,333.95
105,837,333.95
Finland
Varainhoito Tuottohakuinen
73,020,247.43
73,020,247.43
Finland
Varainhoito Varovainen
83,500,387.24
83,500,387.24
Finland
Varainhoitosalkku 10
12,566,290.31
12,566,290.31
Finland
Varainhoitosalkku 30
43,641,165.73
43,641,165.73
Finland
Varainhoitosalkku 50
28,120,475.79
28,120,475.79
Finland
Varainhoitosalkku 70
7,976,543.13
7,976,543.13
Finland
eQ Asunnot III A
4,981,695.67
4,981,695.67
Finland
eQ Euro Investment Grade 1 T
762,804.21
762,804.21
Finland
eQ High Yield Bond 1 T
760,441.58
760,441.58
Finland
eQ Kehittyvät Markkinat Osinko 1 T
646,206.56
646,206.56
Finland
eQ Kehittyvät Markkinat Osinko 1K
1,805,277.48
1,805,277.48
Finland
eQ Kehittyvät Markkinat Pienyhtiö 1 K
640,680.30
640,680.30
Finland
eQ Liikekiinteistöt-1T
27,215,956.01
27,215,956.01
Finland
eQ Maailma 2 K
4,108,786.84
4,108,786.84
Finland
eQ Mandaatti-2K
3,044,240.88
3,044,240.88
Finland
eQ PE IX US Feeder
5,578,965.57
5,578,965.57
Finland
eQ PE SF IV (Erikoissijoitusrahasto)
5,191,100.00
5,191,100.00
Finland
eQ PE SF V (Erikoissijoitusrahasto)
507,600.00
507,600.00
Finland
LocalTapiola General | Financial statements for 2025
137
K7.4 Assets covering unit linked policies
eQ PE VIII North Ky
1,215,882.36
1,215,882.36
Finland
eQ PE X North Feeder
6,898,500.00
6,898,500.00
Finland
eQ PE XI US Feeder
1,397,380.06
1,397,380.06
Finland
eQ PE XII North Feeder (Erikoissijoitusrahasto)
1,753,600.00
1,753,600.00
Finland
eQ PE XIII US Feeder
1,158,510.64
1,158,510.64
Finland
eQ PE XIV North Feeder (Erikoissijoitusrahasto)
5,414,500.00
5,414,500.00
Finland
eQ PE XV US Feeder
1,805,851.06
1,805,851.06
Finland
eQ Pikkujättiläiset 1 K
939,295.61
939,295.61
Finland
eQ Rahamarkkina 1 K
820,400.18
820,400.18
Finland
eQ Sininen Planeetta 1 K
1,045,647.11
1,045,647.11
Finland
eQ Sininen Planeetta 1 T
532,615.62
532,615.62
Finland
eQ USA Indeksi 1 K
2,711,403.46
2,711,403.46
Finland
eQ USA Indeksi-1 T
915,642.37
915,642.37
Finland
eQ VC (Erikoissijoitusrahasto)
4,529,191.49
4,529,191.49
Finland
eQ Yhteiskuntakiinteistöt
28,797,658.31
28,797,658.31
Finland
Ålandsbanken Asuntorahasto C
1,313,761.44
1,313,761.44
Finland
Ålandsbanken Cash Manager B
645,505.54
645,505.54
Finland
Ålandsbanken Europe Value B
1,190,040.87
1,190,040.87
Finland
Ålandsbanken Green Bond ESG C
771,431.68
771,431.68
Finland
Ålandsbanken Norden
648,165.57
648,165.57
Finland
Ålandsbanken Nordiska Småbolag
504,547.15
504,547.15
Finland
Ålandsbanken USA Aktie Placeringsfond D
866,676.06
866,676.06
Finland
Other
21,984,582.03
21,984,582.04
Total
3,247,889,830.59
3,247,889,830.60
Debt securities
Book value
Current value
Home country
Eurooppa High Yield 4/2024
546,810.00
546,810.00
Luxembourg
Eurooppa High Yield Super Senior 12/2022
1,021,300.00
1,021,300.00
Finland
Eurooppa Investment Grade 02/2024
795,440.00
795,440.00
Finland
Eurooppa Investment Grade 1/2025
515,400.00
515,400.00
Finland
Europe High Yield Super Senior 1/23
717,360.00
717,360.00
Finland
Evli Eurooppa High Yield 9/2023
709,995.00
709,995.00
Finland
Other
4,003,840.14
4,003,840.14
Total
8,310,145.14
8,310,145.14
Total
3,297,097,638.81
3,297,097,638.82
K8. Other investments
Other loans, itemised by type of security
2025
2024
Insurance policy
48,735.93
62,798.94
Other security
499,351,186.52
433,196,291.40
Remaining acquisition cost
499,399,922.45
433,259,090.34
LocalTapiola General | Financial statements for 2025
138
K8. Other investments
Other loans, itemised by type of security
2025
2024
Unsecured, total remaining acquisition cost
48,851,644.98
32,337,474.88
Other loan receivables, total
548,251,567.43
465,596,565.22
K9. Changes in tangible and intangible assets
2025
Intangible rights,
other expenses with
long-term effects and
development
expenses
Goodwill
and
goodwill on
consolidatio
n
Advance
payments
Machinery
and
equipment
Other
tangible
assets
Acquisition cost on 1 Jan.
326,885,013.40
66,821,595.00
84,567,777.24
43,795,795.79
130,237,864.79
Increase
15,297,005.48
0.00
65,650,941.54
3,615,501.21
459,732,284.50
Decrease
-18,283,025.49
0.00
-79,714.20
-1,907,307.56
-471,062,289.76
Transfers between items
40,160,159.54
0.00
-40,160,159.54
0.00
0.00
Acquisition cost on 31 Dec.
364,059,152.93
66,821,595.00
109,978,845.04
45,503,989.44
118,907,859.53
Accumulated depreciation on 1
Jan.
-248,083,166.70
-33,168,591.28
0.00
-33,905,107.11
-1,891,216.75
Accumulated depreciation
related to deductions and
transfers
0.00
0.00
0.00
0.00
-32,862.72
Depreciation for the financial
year
-7,984,463.56
-12,320,394.85
0.00
-1,624,866.92
-95,549.33
Accumulated depreciation on
31 Dec.
-256,067,630.26
-45,488,986.13
0.00
-35,529,974.03
-2,019,628.80
Book value on 31 Dec.
107,991,522.67
21,332,608.87
109,978,845.04
9,974,015.41
116,888,230.73
LocalTapiola General | Financial statements for 2025
139
K10. Assets covering unit linked policies
2025
2025
2024
2024
Original
acquisition
cost
Current value
(= book value)
Original
acquisition
cost
Current value
(= book value)
Shares and holdings
2,300,298,178.64
3,288,787,488.07
2,223,071,906.43
3,077,289,227.59
Debt securities
8,349,523.47
8,310,144.85
7,513,603.14
7,222,862.25
Recovery from insurance premium mediators
0.08
0.08
98,224.32
98,224.32
Cash at bank and in hand
24,206,128.36
24,206,128.36
5,012,142.48
5,012,142.48
Accrued interest
34,140.72
34,140.72
44,367.28
44,367.28
Total
2,332,887,971.27
3,321,337,902.08
2,235,740,243.65
3,089,666,823.92
Investments acquired in advance
63,362,456.91
60,683,779.57
0.00
0.00
Investments corresponding to the technical provisions
for unit linked insurance
2,269,525,514.36
3,260,654,122.51
2,235,740,243.65
3,089,666,823.92
Cash at bank and in hand, and other debtors includes
net premiums for paid insurance policies valid at the
closing of the accounts that have not yet been
invested.
24,206,128.44
5,110,366.80
K11. Capital and reserves and itemization of revaluation reserve
K11.1 Changes in capital and reserves
01-01-2025
Increase
Decrease
31.12.2025
Initial fund
8,641,380.35
0.00
0.00
8,641,380.35
Initial fund, other mutual insurance companies
184,642,427.07
0.00
0.00
184,642,427.07
Revaluation reserve
1,432,326.43
0.00
0.00
1,432,326.43
Security reserve
1,758,839,638.71
241,306,099.24
0.00
2,000,145,737.95
Security reserve, other mutual insurance companies
1,401,151,581.09
249,620,238.37
0.00
1,650,771,819.46
Contingency reserve
4,233,091.60
5,000,000.00
-3,027,100.00
6,205,991.60
Contingency reserve, other mutual insurance
companies
14,322,828.90
8,230,000.00
-4,121,539.64
18,431,289.26
The share of voluntary provisions and depreciation
difference transferred to capital and reserves
991,135.51
0.00
-351,876.72
639,258.79
Profit/loss for previous accounting periods
-41,364,727.34
-18,111,201.21
0.00
-59,475,928.55
Profit/loss for previous accounting periods, other
mutual insurance companies
-16,362,921.74
3,271,282.22
0.00
-13,091,639.52
Profit for the accounting period
488,930,131.63
270,292,779.16
-488,930,131.63
270,292,779.16
Change in depreciation difference and voluntary
provisions included in the profit for the accounting
period
386,287.01
390,733.86
-386,287.01
390,733.86
Share of the other mutual insurance companies' result for
the financial year included in the profit for the financial
year
-261,121,520.59
-202,402,569.98
261,121,520.59
-202,402,569.98
Profit/loss for the accounting period, other mutual
insurance companies
261,121,520.59
202,402,569.98
-261,121,520.59
202,402,569.98
Total changes in capital and reserves
3,805,843,179.22
759,999,931.64
-496,816,935.01
4,069,026,175.86
of which capital and reserves of the other mutual
insurance companies
1,844,875,435.91
463,524,090.57
-265,243,060.23
2,043,156,466.25
LocalTapiola General | Financial statements for 2025
140
K11.2 Itemisation of revaluation reserve
2025
Revaluation of fixed assets
1,432,326.43
Total
1,432,326.43
K12. Accumulated appropriations
Depreciation difference
2025
2024
Depreciation difference on 1 Jan.
2,243,996.81
2,737,840.20
Decrease
-434,589.97
-493,843.39
Depreciation difference on 31 Dec.
1,809,406.84
2,243,996.81
Voluntary provisions
Transition provision 1 Jan.
15,942.48
15,942.48
Decrease
-15942.48
0.00
Transition provision 31 Dec.
0.00
15,942.48
Total voluntary provisions
0.00
15,942.48
Total accumulated appropriations
1,809,406.84
2,259,939.29
Divided into
Capital and reserves
1,447,525.47
1,793,803.02
Minority interest
0.00
14,148.42
Deferred tax liabilities
361,881.37
451,987.86
Tax base
20.00%
20.00%
K13. Provision for claims outstanding
2025
2024
Uncontested recourse receivables deducted
from provisions for claims outstanding
Statutory workers' compensation
38,540,056.00
37,062,747.00
K14. Other obligatory provisions
2025
2024
Provision for interest on late payments for unfinished claims
1,341,337.00
1,266,037.00
Provision for unemployment security deductible
1,238,574.46
298,505.72
Provision for ICT projects
2,475,510.71
1,906,431.05
5,055,422.17
3,470,973.77
LocalTapiola General | Financial statements for 2025
141
K15. Deferred tax claim and deferred tax liabilities
K15.1 Deferred tax claim
2025
2024
Deferred tax relating to the group adjustments
2,015,504.54
2,015,504.54
2,015,504.54
2,015,504.54
K15.2 Deferred tax liabilities
2025
2024
Deferred tax liabilities arising from the division of depreciation
difference and provisions
361,881.37
451,987.84
Off-balance-sheet deferred tax liabilities
Tax liability calculated on the basis of timing differences and other
temporary differences between taxable profit and accounting profit
891,492.99
891,492.99
Tax debt calculated based on valuation gains/losses that is deemed
likely to become payable during the next year
37,219,400.00
29,606,900.00
38,110,892.99
30,498,392.99
K16. Receivables and liabilities
K16.1 Itemisation of receivables
2025
2024
Receivables from group companies
Other receivables
41,651.82
32,226.57
K16.2 Itemisation of liabilities
2025
2024
Liabilities to group companies
Other liabilities
7,741.22
7,887.94
K16.3 Itemisation of accruals and deferred income
2025
2024
Liabilities to personnel
75,541,305.44
73,505,188.46
Valuation loss on derivatives
1,922,431.73
128,260.44
Other accruals and deferred income
38,260,814.95
37,877,263.74
115,724,552.12
111,510,712.64
LocalTapiola General | Financial statements for 2025
142
K17. Notes concerning guarantees and contingent liabilities
Off-balance-sheet guarantees and
contingent liabilities
Derivatives treated as accounting hedges
2025
2024
Interest derivatives
Interest rate swap, open
Underlying instrument
80,000,000.00
80,000,000.00
Current value
-458,322.95
4,227,853.85
Interest rate swap, closed
Underlying instrument
15,524,912.82
0.00
Current value
-1,262,906.71
0.00
Effects of hedge accountig on financial
position and performance
Protection of market-based provisions
Changes in current value of hedging
derivatives
-3,730,546.75
844,351.30
Change in the value of the hedged item used
as a basis for the record protection against
inefficiencies in the period
2,904,652.66
-3,131,445.76
Inefficiencies of the hedging shown in the
income statement
731,632.47
-362,056.12
Nominal value/remaining run
time
Total
Interest derivatives
<1 year
1 - 5 years
> 5 years
Interest rate swap
0.00
0.00
80,000,000.00
80,000,000.00
Current value
Interest derivatives
Assets
Liabilities
Interest rate swap
82,341,596.00
81,947,776.00
LocalTapiola Finance has a EUR 200 million floating rate bond, which is tied to the 3-month Euribor rate.
The bond will mature on 30 May 2027. The bond is hedged with a EUR 200 million interest rate swap;
the swap generates interest at the 3-month Euribor rate, and its other key terms correspond to the bond.
The fixed rate of interest payable for the swap is 3.02%.
On 31 December 2024, the fair value of the derivative was -€4,358,012.
LocalTapiola Finance has concluded an interest rate derivative for hedging purposes, wishing by means of the interest rate swap
to eliminate future cash flow uncertainty associated with the floating rate bond. The floating rate cash flows of the interest rate
derivative cancel the interest cash flows of the bond.
LocalTapiola General | Financial statements for 2025
143
Other derivative contracts
2025
2024
Interest derivatives
Interest rate swap
Underlying instrument
20,000,000.00
0.00
Current value
-1,062,538.82
0.00
Forward and futures contracts, open
Underlying instrument
0.00
33,700,000.00
Rental guarantees
On own behalf
30,523.92
30,523.92
Leasing liabilities
Amount to be paid in the current financial year
2,073,081.69
2,044,776.19
Amount to be paid in the coming years
2,111,117.78
2,204,712.37
4,184,199.47
4,249,488.56
Rent liabilities
Amount to be paid in the current financial year
5,642,764.16
3,161,883.62
Amount to be paid in the coming years
17,227,653.40
8,115,814.51
22,870,417.56
11,277,698.13
Value-added tax liabilities
Joint liability relating to collective
value-added tax registration
Group companies
56,004.84
74,770.69
Partner companies
3,575,170.19
3,969,064.33
3,631,175.03
4,043,835.02
VAT liability with a positive sign = VAT debt
VAT liability with a negative sign = VAT receivable
Inspection responsibility of real estate investments
under section 120 of the Value Added Tax Act
Company
16,266,347.25
21,477,367.83
Other companies of the group
36,512,988.16
47,647,619.28
52,779,335.41
69,124,987.11
Other commitments
Investment commitments
980,779,263.13
993,812,316.50
Granted limit
62,505,948.62
47,623,000.97
Installment portfolio securitization
1,765,334,450.56
1,679,514,019.78
Other commitments *
35,899,392.12
33,292,595.91
2,844,519,054.43
2,754,241,933.16
*LocalTapiola General has pledged to purchase the other investors’ shares in the named investment in 2028. The amount of
liability is based on the shareholder agreement and on the estimated development of the indicators for the valuation mechanism
determined in the agreement.
Contingent liability
Suomen Vahinkovakuutus Oy has assessed that it may receive an administrative penalty from the Data
Protection Ombudsman. The probability of the penalty materializing is estimated to be 50%, and it is expected
to be enforced within 3–4 years. The estimated amount of the penalty is 150,000 euros.
A joint liability agreement concluded between LocalTapiola General Mutual Insurance Company and regional mutual insurance
companies
of the LocalTapiola group determines the principles for ensuring the solvency of the companies in the group.
More information regarding the joint liability agreement can be found in the Report of the Board of Directors, section Solvency
and risk management.
K18. Related party loans and transactions and subordinated loans
LocalTapiola General | Financial statements for 2025
144
K18. Related party loans and transactions
The related parties register of the company has been compiled in accordance with the related parties definition in the Insurance
Companies Act.
The company has not carried out related party transactions involving any other than conventional commercial terms and
conditions.
The company has not granted loans to related parties.
Information on contingent liability relating to group registration of VAT can be found in Note K17.
LocalTapiola General | Financial statements for 2025
145
9.5.3 Performance analysis, LocalTapiola Group
Performance analysis
€1,000
2025
2024
2023
2022
2021
Non-life insurance
Premiums earned
1,530,519
1,453,192
1,350,025
1,271,943
1,235,882
Claims incurred
-1,096,728
-1,101,583
-864,851
-872,921
-899,607
Operating expenses
-321,960
-315,232
-304,902
-289,026
-251,425
Balance on technical account before change in
equalization provision
111,831
36,377
180,272
109,995
84,850
Life insurance
Premium income
413,143
410,549
329,710
425,157
477,556
Investment income and expenses as well as
revaluations
and adjustments thereof
245,396
379,893
211,682
-265,463
448,237
Claims paid
-400,104
-414,560
-375,661
-369,649
-352,042
Change in technical provisions before change in
customer benefits and equalization provision
-83,542
-126,334
-13,659
328,193
-428,341
Operating expenses
-60,218
-55,318
-51,308
-52,484
-54,136
Balance on technical account before change in
114,674
194,230
100,764
65,754
91,273
customer benefits and equalization provision
Investment income and expenses as well as
revaluations
and adjustments thereof (non-life insurance)
172,030
354,030
190,238
-21,068
168,325
Other income and expenses
39,881
41,793
31,916
43,908
40,835
Share of profit/loss from group associated
undertakings
7,497
4,347
-9,014
-4,631
2,620
Operating profit
445,913
630,777
494,176
193,958
387,902
Change in equalization provision (non-life
insurance)
-61,846
10,644
-103,444
-5,396
-2,543
Change in equalization provision (life insurance)
10,274
10,274
10,274
10,274
10,274
Additional benefits (customer benefits)
-40,255
-46,019
-40,069
-2,968
-17,426
Profit before extraordinary items
354,086
605,676
360,937
195,868
378,207
Direct taxes
-71,754
-102,560
-84,056
-44,323
-82,614
Minority interest
-12,040
-14,185
-4,800
-10,646
-11,197
Profit for the financial period
270,293
488,930
272,081
140,899
284,397
Operating profit
445,913
630,777
494,176
193,958
387,902
Change in the difference between current and
book values
130,875
204,864
134,164
-663,844
385,997
Total result
576,788
835,641
628,340
-469,886
773,899
LocalTapiola General | Financial statements for 2025
146
9.5.4 Notes on the additional
benefits of life insurance
9.5.4.1 Application of the principle
of reasonability, and targets for the
distribution of additional benefits
According to the principle of reasonableness
concerning additional benefits, as referred to in
chapter 13, section 2 of the Insurance Companies Act,
an insurance company must, provided that its
solvency allows it, return a reasonable portion of
surplus in the form of additional benefits to those
insurance policies that are entitled to additional
benefits distributed on the basis of surplus.
LocalTapiola Mutual Life Insurance Company applies
the principle of reasonableness by allocating its
surplus mainly to additional benefits and to boosting
solvency, and pays a market-based return to risk
capital subscribers. .
By its nature, the company’s additional-benefit target
is a long-term target, meaning that its attainment
should be examined over a period of several years. In
individual years, the company may fall short of the
targets.
Over the long term, LocalTapiola Mutual Life
Insurance Company aims to provide, on the insurance
savings entitled to the distribution of surplus, a total
return before expenses and taxes which, in the case of
pension insurance, exceeds the interest rate level of
euro-area government bonds with a minimum
maturity of 10 years and, in the case of savings life
insurance, exceeds the interest rate level of 5-year
government bonds. In risk insurance featuring a
funded component, the target is for the real total
interest rate to be positive.
In risk policies, the principle of reasonableness is
applied in such a way that the portion of surplus not
reserved to cover fluctuations in claims expenditure
and in operating expenses is returned to customers as
premium reductions or as free-of-charge increases of
risk benefits.
The overall return target defined above collectively
for all pension insurance and savings life insurance
policies is applied to individual insurance contracts by
taking into account, when determining bonuses, the
general interest rate level and the extent of its
fluctuations, the company’s investment success, the
technical rate of interest of each policy, the policy
management costs, the policy items allocated to
cover operating expenses, and the company’s
solvency. On a line of business basis, the level of
customer bonuses takes into account the need to
prepare for significant future claims expenditure
increases due, inter alia, to mortality developments.
The level of customer bonuses aims for stability by
levelling out fluctuations in investment returns by
reserving, in good investment years, a portion of the
surplus for distribution in subsequent years.
The solvency objective is to maintain such qualitative
and quantitative solvency as does not restrict the
company’s activities or the payment of additional
benefits to policyholders in accordance with the
additional-benefit targets.
The additional-benefit targets are not binding on the
company, and they are in force until further notice.
Each year, the company’s Board of Directors decides
on additional benefits and the necessary changes to
the targets that concern the distribution of additional
benefits. In addition to this report, the company
publishes on its website a more detailed report on the
achievement of the additional-benefit targets.
9.5.4.2 Achievement of
LocalTapiola Life’s additional-benefit
distribution targets in 2016–2025
For 2025, the company was able to pay all contract
groups the total interest rate determined by the
additional-benefit target. When examining, over the
long term, the five-year moving averages of the
lowest total interest rates and of the targets, the
total interest rates in all pension and savings life
insurance contract groups exceeded the additional-
benefit target in 2016–2025, and in risk insurance
featuring a funded component this was the case in
2016–2021 and 2024–2025. It can therefore be said
that, over the longer term, the company has achieved
its additional-benefit target.
In 2016–2025, the interest rate used as the
additional-benefit target was the euro-area
government bond yield index, published by the
European Central Bank, for maturities of 5 and 10
years. The annual returns are calculated as averages
of daily or monthly quotes.
9.5.4.3 LocalTapiola Life’s report
on the total interest rates paid on
insurance savings, by line of business, in
2016–2025
Individual pension insurance
For 2025, the total rate of interest paid on the
insurance savings of individual pension insurance
policies averaged 4.0 per cent (3.8%). Depending on
the product and the technical rate of interest, the
total interest rate ranged between 3.5 per cent and
4.5 per cent. The total rate of interest exceeded the
target 10-year interest rate, which averaged 2.7 per
cent in 2025.
Savings life insurance and capital redemption
contracts
For 2025, the total rate of interest paid on the
insurance savings of savings life insurance policies
and capital redemption contracts averaged 3.4 per
cent (3.1%). Depending on the product and the
technical rate of interest, the total interest rate
ranged between 2.5 per cent and 4.5 per cent. The
total rate of interest exceeded the target 5-year
interest rate, which averaged 2.2 per cent in 2025.
LocalTapiola General | Financial statements for 2025
147
Group pension insurance
For 2025, the total rate of interest paid on the
insurance savings of group pension insurance policies
averaged 3.6 per cent (3.4%). In group pension
insurance, the total interest rate ranged between 3.5
per cent and 4.25 per cent. The total rate of interest
exceeded the target 10-year interest rate, which
averaged 2.7 per cent in 2025.
9.5.4.4 LocalTapiola Life’s report
on the additional benefits provided to
risk policies
In 2025, risk policies were paid EUR 14.6 million (EUR
9.3 million) in additional benefits as increased
compensation amounts or premium reductions. In
2025, in risk policies, the level of additional benefits
of risk policies was maintained at an equivalent level
to the year before. In risk policies, the additional
benefits are confirmed in advance.
9.5.4.5 LocalTapiola Life’s report
on the use of the provision for future
additional benefits to cover loss arising
from changing the actuarial basis
The actuarial basis used for calculating the provision
for future additional benefits allows a liability to be
used to cover a loss that has arisen from changing the
actuarial basis used for calculating the technical
provisions. In the 2025 financial statements, the
provision for future additional benefits is not used to
cover loss arising from changing the actuarial basis.
The provision for future additional benefits is EUR
98.2 million, and the provision increased EUR 11.4
million during the financial year. The additional
benefits have a EUR –40.3 million impact on the
result for the financial year.
LocalTapiola General | Financial statements for 2025
148
10 Parent company, LocalTapiola General
10.1 Profit and loss account, LocalTapiola General
Technical Account
Note
1.1.2025 - 31.12.2025
1.1.2024 - 31.12.2024
Premiums earned
Premiums written
1
339,874,421.31
329,827,491.97
Reinsurers' share
-44,830,019.74
-44,526,193.73
Premiums written on own account
295,044,401.57
285,301,298.24
Change in provision for unearned premiums
3,307,065.00
3,780,595.00
Reinsurers' share
-671,938.03
-1,304,774.46
Change in provision for unearned premiums, total
2,635,126.97
2,475,820.54
Total premiums earned
297,679,528.54
287,777,118.78
Claims incurred
Claims paid
-262,986,549.50
-291,516,925.69
Reinsurers' share
21,254,517.90
38,774,044.05
Claims paid on own account
-241,732,031.60
-252,742,881.64
Change in provision for outstanding claims
26,606,976.77
33,244,465.54
Reinsurers' share
-9,793,186.88
-2,926,675.51
Change in provision for outstanding claims, total
16,813,789.89
30,317,790.03
Total claims incurred
-224,918,241.71
-222,425,091.61
Operating expenses
3
-47,330,931.97
-51,807,250.83
Balance on technical account before change in equalization
provision
25,430,354.86
13,544,776.34
Change in equalization provision
Total change
-49,513,147.00
-12,607,470.00
Total change in equalization provision
-49,513,147.00
-12,607,470.00
Balance on technical account
2
-24,082,792.14
937,306.34
Non-technical Account
Note
1.1.2025 - 31.12.2025
1.1.2024 - 31.12.2024
Balance on technical account
-24,082,792.14
937,306.34
Net income from investment activities
Investment income
4
195,162,201.60
336,180,495.84
Investment charges
4
-69,064,202.56
-71,316,695.49
Total net income from investment activities
126,097,999.04
264,863,800.35
Other income
Other
4
21,413,367.44
15,385,945.94
Other expenses
Other
4
-20,965,584.59
-14,113,571.92
Result from ordinary activities
102,462,989.75
267,073,480.71
Result before appropriations and taxes
102,462,989.75
267,073,480.71
Appropriations
Change in depreciation difference
-174.26
-3,840.47
Total appropriations
-174.26
-3,840.47
Direct taxes on ordinary activities
Taxes for the financial period
-16,099,031.38
-20,737,963.31
Taxes for previous financial periods
-75,409.52
-25,577.69
Total direct taxes on ordinary activities
-16,174,440.90
-20,763,541.00
Result for the financial year
86,288,374.59
246,306,099.24
LocalTapiola General | Financial statements for 2025
149
10.2 Balance sheet, LocalTapiola General
ASSETS
Note
31.12.2025
31.12.2024
Intangible assets
9
Other expenses with long-term effects
10,421,147.38
7,525,784.39
Advance payments
14,824,060.29
9,133,619.62
Total intangible assets
25,245,207.67
16,659,404.01
Investments
Real estate investments
6
Real estate and shares in real estate
191,555,924.52
192,641,773.37
Loans to group companies
71,626,941.85
73,552,941.84
Real estate investments
263,182,866.37
266,194,715.21
Investments in group companies and participating interests
7
Shares in group companies
1,218,785,912.54
1,219,801,861.96
Shares and holdings in participating interests
44,884,914.39
39,994,794.00
Debt securities and loans in participating interests
4,010,000.00
5,985,707.71
Total investments in group companies and participating
interests
1,267,680,826.93
1,265,782,363.67
Other investments
Shares and holdings
7
1,296,588,928.99
1,214,513,863.08
Debt securities
282,911,625.00
282,050,426.51
Loans guaranteed by mortgages
36,577,694.55
51,882,132.35
Other loans
8
895,011.75
4,096,011.74
Total other investments
1,616,973,260.29
1,552,542,433.68
Deposits with ceding undertakings
512,234.34
590,336.58
Total investments
3,148,349,187.93
3,085,109,849.14
Debtors
15
Arising out of direct insurance operations
Policyholders
43,810,290.99
41,191,432.89
Total arising out of direct insurance operations
43,810,290.99
41,191,432.89
Arising out of reinsurance operations
19,383,669.81
20,530,602.88
Other debtors
49,842,666.40
49,039,165.36
Total debtors
113,036,627.20
110,761,201.13
Other assets
Tangible assets
Machinery and equipment
9
974,350.12
837,993.38
Other tangible assets
0.00
230,531.47
Total tangible assets
974,350.12
1,068,524.85
Cash at bank and in hand
121,472,923.88
79,106,206.13
Other assets
3,921,186.16
3,921,186.16
Total other assets
126,368,460.16
84,095,917.14
Prepayments and accrued income
Accrued interest and rent
5,110,140.00
5,190,800.38
Other prepayments and accrued income
6,557,580.13
1,951,101.82
Total prepayments and accrued income
11,667,720.13
7,141,902.20
TOTAL ASSETS
3,424,667,203.09
3,303,768,273.62
LocalTapiola General | Financial statements for 2025
150
LIABILITIES
Note
31.12.2025
31.12.2024
Capital and reserves
10
Initial reserve
8,641,380.35
8,641,380.35
Revaluation reserve
85,090.31
85,090.31
Other reserves
2,006,351,729.55
1,763,072,730.31
Total other reserves
2,006,351,729.55
1,763,072,730.31
Profit for the accounting period
86,288,374.59
246,306,099.24
Total capital and reserves
2,101,366,574.80
2,018,105,300.21
Accumulated appropriations
11
Accumulated depreciation difference
182,836.53
182,662.27
Total accumulated appropriations
182,836.53
182,662.27
Technical provisions
Provision for unearned premiums
33,691,684.00
36,998,749.00
Reinsurers' share
-9,031,331.88
-9,703,269.91
Total provision for unearned premiums
24,660,352.12
27,295,479.09
Provision for outstanding claims
915,625,950.09
942,232,926.86
Reinsurers' share
-10,458,449.44
-20,251,636.32
Total provision for outstanding claims
905,167,500.65
921,981,290.54
Equalization provision
317,976,162.00
268,463,015.00
Total technical provisions
1,247,804,014.77
1,217,739,784.63
Obligatory provisions
Other obligatory provisions
13
71,624.62
65,722.11
Total obligatory provisions
71,624.62
65,722.11
Deposits received from reinsurers
3,233.74
3,583.14
Creditors
15
Arising out of direct insurance operations
19,196,902.05
16,168,390.37
Arising out of reinsurance operations
20,510,721.65
22,331,140.61
Other creditors
17,362,007.67
14,790,958.24
Total creditors
57,069,631.37
53,290,489.22
Accruals and deferred income
15
18,169,287.26
14,380,732.04
TOTAL LIABILITIES
3,424,667,203.09
3,303,768,273.62
LocalTapiola General | Financial statements for 2025
151
10.3 Indirect cash flow statement, LocalTapiola General
Cash flow from operations
2025
2024
Profit on ordinary activities
102,462,989.75
267,073,480.71
Adjustments
Changes in technical provisions
30,064,230.14
-20,186,140.57
Value adjustments and revaluation of investments
-10,752,671.91
-27,816,064.05
Changes in other obligatory provisions
5,902.51
-17,323,092.67
Depreciation according to plan
3,456,975.00
3,695,303.92
Other adjustments
-13,082,881.00
-136,038,207.29
Cash flow before change in working capital
112,154,544.49
69,405,280.05
Change in working capital:
Increase (-) / decrease (+) in non-interest-bearing short-term
receivables
-2,070,885.98
6,400,309.30
Increase (-) / decrease (+) in non-interest-bearing short-term
debts
7,567,347.97
4,418,429.75
Cash flow from operations before financial items and taxes
117,651,006.48
80,224,019.10
Direct taxes paid
-20,904,798.92
-14,984,963.67
Total cash flow from operations
96,746,207.56
65,239,055.43
Cash flow from investments
Investments in assets (excl. cash and c. equivalents)
-52,605,918.71
-186,853,457.73
Capital gains from investments (excl. cash and c. equivalents)
13,082,881.00
136,038,207.29
Investments in tangible and intangible assets as well as other assets
and capital gains (net)
-11,829,352.10
-8,609,608.35
Total cash flow from investments
-51,352,389.81
-59,424,858.79
Cash flow from financial
Interest on guarantee capital paid and other distribution of profit
-3,027,100.00
-1,376,975.79
Total cash flow from financial
-3,027,100.00
-1,376,975.79
Change in cash and cash equivalents
42,366,717.75
4,437,220.85
Cash and cash equivalents at the start of the year
79,106,206.13
74,668,985.28
Cash and cash equivalents at the end of the year
121,472,923.88
79,106,206.13
LocalTapiola General | Financial statements for 2025
152
10.4 Key figures, LocalTapiola General
General key figures describing financial development
2025
2024
2023
2022
2021
Operating profit
152.0
279.7
176.2
18.0
145.4
Total result
194.4
325.4
206.4
-122.0
257.7
Return on capital employed (at current value), %
4.7
9.4
3.8
-4.0
8.2
Return on assets, %
5.6
9.6
6.4
-3.5
8.2
Average number of personnel during the financial year
409
355
332
345
348
Key figures describing the financial development of non-life
insurance
Premiums written
339.9
329.8
321.9
310.1
305.3
Loss ratio (excl. unwinding of discount expense), %
71.9
74.1
51.2
77.2
80.8
Loss ratio, %
75.6
77.3
53.4
78.8
83.6
Expense ratio, %
15.9
18.0
16.7
18.3
14.7
Combined ratio (excl. unwinding of discount expense), %
87.8
92.1
67.9
95.5
95.5
Combined ratio, %
91.5
95.3
70.1
97.1
98.3
Equalization provision
318.0
268.5
255.9
175.5
169.0
LocalTapiola General | Financial statements for 2025
153
10.5 Notes, LocalTapiola General
10.5.1 Notes to the profit and loss account, LocalTapiola General
1. Premiums written
2025
2024
Direct insurance
Finland
278,924,996.10
259,134,158.73
Other countries
3,471,418.28
4,053,187.13
Direct insurance total
282,396,414.38
263,187,345.86
Reinsurance
57,478,006.93
66,640,146.11
Gross premiums written before reinsurers' share
339,874,421.31
329,827,491.97
1.1 Items depreciated from premiums written
2025
2024
Credit loss on outstanding premiums
1,116,081.81
1,074,425.95
PAYG system fees
42,321,348.52
37,203,568.10
Premium tax
18,865,809.84
15,356,716.00
Fire brigade charge
532,067.73
429,562.26
Road safety charge
96,404.26
88,917.83
Labour protection charge
2,780,629.12
2,695,586.52
Total
65,712,341.28
56,848,776.66
LocalTapiola General | Financial statements for 2025
154
2. Profit by insurance groups
Premiums
written before
reinsurers'
share
Premiums
earned before
reinsurers'
share
Claims incurred
before
reinsurers'
share
Operating
expenses
before
commissions
for
reinsurance
and profit
shares
Reinsurers'
share
Balance on
technical
account before
net investment
income
Statutory workers'
compensation
2025
168,487,473.53
169,616,864.53
-129,687,209.52
-31,290,392.40
-198,926.33
8,440,336.28
2024
167,694,413.94
168,350,144.94
-120,918,868.51
-31,880,428.90
-225,995.49
15,324,852.04
2023
166,162,544.67
167,842,973.67
-90,935,234.20
-30,917,046.05
-211,785.20
45,778,908.22
Non-statutory
accident and health
2025
32,027,487.85
32,012,606.85
-31,371,113.35
-4,239,126.72
18,820.12
-3,578,813.10
2024
26,497,155.70
26,517,076.70
-25,580,381.59
-3,237,666.40
-56,572.92
-2,357,544.21
2023
22,234,878.69
22,217,544.69
-23,157,586.59
-3,172,312.99
15,962.97
-4,096,391.92
Motor vehicle liability
2025
7,430,743.60
7,423,736.60
-3,850,192.89
-1,340,468.38
-19,172.33
2,213,903.00
2024
6,855,385.33
6,837,349.33
-3,788,979.17
-1,269,440.16
-168,267.14
1,610,662.86
2023
5,897,326.24
5,872,077.24
-3,810,581.81
-1,240,799.10
-1,015,986.77
-195,290.44
Land vehicles
2025
12,692,948.93
12,608,604.93
-13,677,961.91
-2,296,449.31
-44,478.80
-3,410,285.09
2024
11,366,394.59
11,280,669.59
-13,341,948.10
-2,489,901.38
136,180.99
-4,414,998.90
2023
9,525,196.00
9,442,419.00
-9,375,220.59
-2,438,557.43
-26,097.26
-2,397,456.28
Marine, aviation,
railway rolling stock
and transport
2025
2,099,990.24
2,138,783.24
-827,260.76
-91,371.36
17,374.94
1,237,526.06
2024
2,111,584.86
2,086,068.86
-804,020.26
-1,141,181.18
-86,164.21
54,703.21
2023
2,013,348.16
2,053,722.16
25,825.71
-1,106,441.70
-84,900.70
888,205.47
Fire and other damage
to property
2025
30,231,699.07
29,706,928.07
-20,030,647.06
-3,480,816.07
-9,470,410.28
-3,274,945.34
2024
23,641,254.12
23,778,201.12
-14,557,602.41
-3,454,858.69
-6,555,544.01
-789,803.99
2023
20,943,976.80
20,821,312.80
-9,069,743.66
-3,466,158.99
-3,953,433.96
4,331,976.19
General liability
2025
17,673,415.84
17,832,649.84
-14,502,987.17
-3,120,709.51
-1,230,817.13
-1,021,863.97
2024
14,177,012.96
14,328,709.96
-9,077,576.85
-3,189,348.34
-1,270,848.44
790,936.33
2023
16,832,171.82
16,199,301.82
-10,355,962.42
-3,087,979.35
-1,345,896.52
1,409,463.53
Credit and suretyship
2025
1,610,236.21
3,119,856.21
-254,491.99
-651,961.52
-1,557,636.65
655,766.05
2024
1,447,532.17
3,752,168.17
-838,113.70
-731,377.09
-1,665,377.15
517,300.23
2023
2,497,300.47
3,607,157.47
-804,077.18
-701,047.35
-1,522,035.48
579,997.46
Legal expenses
2025
3,371,513.85
3,367,270.85
-2,836,623.39
-613,172.16
0.00
-82,524.70
2024
2,995,636.13
2,994,387.13
-3,010,104.28
-585,020.76
0.00
-600,737.91
2023
2,779,774.41
2,765,375.41
-1,797,529.02
-577,003.87
0.00
390,842.52
Other
2025
6,770,905.26
6,655,602.26
6,618,436.14
-1,029,912.98
-7,259,948.28
4,984,177.14
2024
6,400,976.06
6,426,237.06
-23,084,001.73
-1,077,155.40
10,499,187.68
-7,235,732.39
2023
5,651,972.42
5,569,095.42
-2,890,095.60
-1,050,981.69
-1,825,718.53
-197,700.40
Direct insurance total
2025
282,396,414.38
284,482,903.38
-210,420,051.90
-48,154,380.41
-19,745,194.74
6,163,276.33
2024
263,187,345.86
266,351,012.86
-215,001,596.60
-49,056,378.30
606,599.31
2,899,637.27
2023
254,538,489.68
256,390,979.68
-152,170,205.36
-47,758,328.52
-9,969,891.45
46,492,554.35
Reinsurance
2025
57,478,006.93
58,698,582.93
-25,959,520.83
-9,923,941.13
-3,548,042.44
19,267,078.53
2024
66,640,146.11
67,257,074.11
-43,270,863.55
-10,094,671.63
-3,246,399.86
10,645,139.07
2023
67,380,578.87
66,665,699.87
-9,718,520.43
-10,117,930.50
-11,279,515.60
35,549,733.34
Total
2025
339,874,421.31
343,181,486.31
-236,379,572.73
-58,078,321.54
-23,293,237.18
25,430,354.86
2024
329,827,491.97
333,608,086.97
-258,272,460.15
-59,151,049.93
-2,639,800.55
13,544,776.34
2023
321,919,068.55
323,056,679.55
-161,888,725.79
-57,876,259.02
-21,249,407.05
82,042,287.69
LocalTapiola General | Financial statements for 2025
155
2. Profit by insurance groups
Change in equalization
provision
2025
-49,513,147.00
2024
-12,607,470.00
2023
-80,349,473.00
Balance on technical
account
2025
-24,082,792.14
2024
937,306.34
2023
1,692,814.69
LocalTapiola General | Financial statements for 2025
156
3. Operating expenses and notes concerning personnel and members of corporate bodies
3.1 Total operating expenses by activity
2025
2024
Claims management expenses
27,824,397.50
26,561,492.40
Operating expenses
47,330,931.97
51,807,250.83
Investment operating expenses
4,655,072.17
4,752,525.34
Other expenses
20,909,832.86
14,050,020.73
Total
100,720,234.50
97,171,289.30
3.2 Profit and loss account item operating expenses
2025
2024
Insurance policy acquisition costs
Commissions for direct insurance
1,586,195.91
1,818,103.78
Commissions for reinsurance assumed and profit shares
8,643,722.18
8,495,843.11
Other insurance policy acquisition costs
10,971,155.03
11,001,207.99
21,201,073.12
21,315,154.88
Insurance policy management expenses
19,004,937.60
18,955,176.30
Administrative expenses
17,872,310.82
18,880,718.75
Commissions for reinsurance ceded and profit shares
-10,747,389.57
-7,343,799.10
Total
47,330,931.97
51,807,250.83
3.3 Notes concerning personnel and members of corporate bodies
3.3.1 Personnel expenses
2025
2024
Salaries and remunerations
34,184,063.23
29,537,351.75
Pension expenses
6,039,482.69
5,649,790.23
Other personnel expenses
1,058,081.32
673,307.54
Total
41,281,627.24
35,860,449.52
LocalTapiola General | Financial statements for 2025
157
3.3.2 Managements' salaries and remunerations, pension commitments, monetary loans and terms
thereof, as well as guarantees and contingent liabilities
Managing director and deputy managing director
Salaries and remunerations
383,595.00
539,073.00
Pension commitments
The retirement age of the managing director and
deputy managing director is stated by the law.
Monetary loans and terms thereof
No monetary loans granted
Guarantees and contingent liabilities
No guarantees or contingent liabilities granted
Board members and deputy board members
Salaries and remunerations
925,952.00
2,096,074.00
Pension commitments
The pensionable age of board members and deputy
board members is stated by the law.
Pension commitments
The retirement age/resignation age of a full time
Board member is 63 years and the retirement age of
the Chair and the other members is stated by law.
Monetary loans and terms thereof
No monetary loans granted
Guarantees and contingent liabilities
No guarantees or contingent liabilities granted
Supervisory board and deputy supervisory board
members
Salaries and remunerations
320,050.00
292,800.00
Pension commitments
No pension commitments
Monetary loans and terms thereof
No monetary loans granted
Guarantees and contingent liabilities
No guarantees or contingent liabilities granted
3.3.3 Average number of personnel during the financial year
Staff
409
355
3.4 Auditor's fees by assignment category
2025
2024
Auditing
57,052.18
52,851.00
Tax advice
15,916.76
0.00
Other services
107,251.49
15,275.64
Total
180,220.43
68,126.64
LocalTapiola General | Financial statements for 2025
158
4. Net investment income and other income and expenses
4.1 Specification of net investment income
Investment income
2025
2024
Income from group companies
Dividend income
54,420,978.54
56,415,418.19
Interest income
185,403.55
679,915.74
Total
54,606,382.09
57,095,333.93
Income from participating interests
Interest income
594,884.07
670,214.26
Total
594,884.07
670,214.26
Income from real estate investments in group companies
Interest income
2,764,687.05
2,809,848.77
Other income
89,098.69
122,853.71
Total
2,853,785.74
2,932,702.48
Income from real estate investmets in other companies
Dividend income
422,696.69
408,486.54
Interest income
30,108.71
22,930.29
Other income
25,096,000.77
25,920,187.01
Total
25,548,806.17
26,351,603.84
Income from other investments
Dividend income
13,813,266.07
14,359,286.34
Interest income
13,148,740.92
14,257,213.87
Other income
11,944,954.13
8,558,648.18
Total
38,906,961.12
37,175,148.39
Total
122,510,819.19
124,225,002.90
Value readjustments
34,335,112.47
65,109,887.63
Realized gains
38,316,269.94
146,845,605.31
Total investment income
195,162,201.60
336,180,495.84
LocalTapiola General | Financial statements for 2025
159
Investment charges
Expenses arising from real estate investments
From group companies
-10,288,213.22
-10,120,164.43
Other companies
-4,685,048.30
-4,264,886.92
Total
-14,973,261.52
-14,385,051.35
Expenses arising from other investments
-3,209,035.02
-6,593,966.07
Interest paid and other expenses on liabilities
From group companies
-209,853.14
-301,449.77
Other companies
-570,235.12
-503,084.96
Total
-780,088.26
-804,534.73
Total
-18,962,384.80
-21,783,552.15
Value adjustments and depreciation
Value adjustments
-23,582,440.56
-37,293,823.58
Planned depreciation on buildings
-1,285,988.26
-1,431,921.74
Total
-24,868,428.82
-38,725,745.32
Realized losses
-25,233,388.94
-10,807,398.02
Total investment charges
-69,064,202.56
-71,316,695.49
Net investment income before revaluations and
revaluation adjustments
126,097,999.04
264,863,800.35
Net investment income in the profit and loss account
126,097,999.04
264,863,800.35
4.2 Specification of other income and expenses
Other income
2025
2024
Services sold to partner companies
20,806,065.33
14,429,808.57
Other income
607,302.11
956,137.37
Total
21,413,367.44
15,385,945.94
Other expenses
Expenses for services sold
-20,909,832.86
-14,050,020.73
Other expenses
-55,751.73
-63,551.19
Total
-20,965,584.59
-14,113,571.92
LocalTapiola General | Financial statements for 2025
160
10.5.2 Notes to the balance sheet, LocalTapiola General
5. Current value of investments and difference between in valuation as well as difference in valuation
of non-hedging derivatives
5.1 Current value of investments and
difference between in valuation
2025
Investments
Remaining
acquisition cost
Book value
Current value
Real estate investments
Real estate
3,587,129.99
3,587,129.99
5,020,000.00
Real estate shares in group companies
117,058,102.08
120,216,105.50
221,001,092.89
Other real estate shares
67,752,689.03
67,752,689.03
89,598,457.72
Loans to group companies
71,626,941.85
71,626,941.85
71,626,941.85
260,024,862.95
263,182,866.37
387,246,492.46
Investments in group companies
Shares and holdings
1,218,785,912.54
1,218,785,912.54
1,300,103,946.52
1,218,785,912.54
1,218,785,912.54
1,300,103,946.52
Investments in participating interests
Shares and holdings
44,884,914.39
44,884,914.39
55,611,808.80
Loans receivable
4,010,000.00
4,010,000.00
4,010,000.00
48,894,914.39
48,894,914.39
59,621,808.80
Other investments
Shares and holdings
1,296,588,928.99
1,296,588,928.99
1,472,680,702.99
Debt securities
282,911,625.00
282,911,625.00
260,995,016.38
Loans guaranteed by mortgages
36,577,694.55
36,577,694.55
36,577,694.55
Other loans
895,011.75
895,011.75
895,011.75
1,616,973,260.29
1,616,973,260.29
1,771,148,425.67
Deposits with ceding undertakings
512,234.34
512,234.34
512,234.34
3,145,191,184.51
3,148,349,187.93
3,518,632,907.79
The remaining acquisition cost of debt securities includes:
Difference between the nominal value and acquisition
cost released (+) or charged (-) to interest income
1,004,812.53
Book value comprises
Revaluations released to income
2,441,051.81
Other revaluations
716,951.61
3,158,003.42
Difference in valuation (difference between current value
and book value)
370,283,719.86
LocalTapiola General | Financial statements for 2025
161
2024
Investments
Remaining
acquisition cost
Book value
Current value
Real estate investments
Real estate
3,299,950.39
3,299,950.39
5,020,000.00
Real estate shares in group companies
118,612,046.03
121,770,049.45
226,361,006.99
Other real estate shares
67,571,773.53
67,571,773.53
96,799,901.11
Loans to group companies
73,552,941.84
73,552,941.84
73,552,941.85
263,036,711.79
266,194,715.21
401,733,849.95
Investments in group companies
Shares and holdings
1,219,801,861.96
1,219,801,861.96
1,295,681,352.68
1,219,801,861.96
1,219,801,861.96
1,295,681,352.68
Investments in participating interests
Shares and holdings
39,994,794.00
39,994,794.00
39,994,794.00
Loans receivable
5,985,707.71
5,985,707.71
5,985,707.71
45,980,501.71
45,980,501.71
45,980,501.71
Other investments
Shares and holdings
1,214,513,863.08
1,214,513,863.08
1,343,342,852.25
Debt securities
282,050,426.51
282,050,426.51
269,690,505.38
Loans guaranteed by mortgages
51,882,132.35
51,882,132.35
51,882,132.21
Other loans
4,096,011.74
4,096,011.74
4,096,011.75
1,552,542,433.68
1,552,542,433.68
1,669,011,501.59
Deposits with ceding undertakings
590,336.58
590,336.58
590,336.58
3,081,951,845.72
3,085,109,849.14
3,412,997,542.51
The remaining acquisition cost of debt securities includes:
Difference between the nominal value and acquisition
cost released (+) or charged (-) to interest income
629,000.82
Book value comprises
Revaluations released to income
2,441,051.81
Other revaluations
716,951.61
3,158,003.42
Difference in valuation (difference between current value
and book value)
327,887,693.37
LocalTapiola General | Financial statements for 2025
162
5.2 Difference in valuation of non-hedging
derivatives
2025
Derivative contracts
Remaining
acquisition cost
Book value
Current value
Other debtors
Assets pledged as security for derivatives
2,262,204.96
2,262,204.96
2,262,204.96
Other deferred income and credits
Futures and forward contracts
-1,062,538.82
-1,062,538.82
-1,062,538.82
1,199,666.14
1,199,666.14
1,199,666.14
Difference in valuation (difference between current value
and book value)
0.00
2024
Derivative contracts
Remaining
acquisition cost
Book value
Current value
Other debtors
Assets pledged as security for derivatives
0.00
0.00
0.00
Other deferred income and credits
Futures and forward contracts
0.00
0.00
0.00
0.00
0.00
0.00
Difference in valuation (difference between current value
and book value)
0.00
LocalTapiola General | Financial statements for 2025
163
6. Real estate investments
2025
Changes in real estate investments:
Real estate and shares in
real estate
Loans to group
companies
Acquisition cost on 1 Jan.
194,719,189.50
73,552,941.84
Increase
708,627.42
0.00
Decrease
-932,224.50
-1,925,999.99
Acquisition cost on 31 Dec.
194,495,592.46
71,626,941.85
Accumulated depreciation on 1 Jan.
-1,637,606.47
Depreciation for the financial year
-119,251.83
Accumulated depreciation on 31 Dec.
-1,756,858.30
Value adjustments on 1 Jan.
-3,597,813.08
Value adjustments for the financial year
-743,000.00
Value adjustments on 31 Dec.
-4,340,813.06
Revaluations on 1 Jan.
3,158,003.42
Revaluations on 31 Dec.
3,158,003.42
Book value on 31 Dec.
191,555,924.52
71,626,941.85
Real estate and shares in real estate occupied for own activities
Remaining acquisition cost
7,648,550.07
Book value
7,648,550.07
Current value
7,875,437.04
LocalTapiola General | Financial statements for 2025
164
7. Investments in group companies and participating
interests
Shares in group companies
2025
2024
Acquisition cost on 1 Jan.
1,245,485,986.19
1,226,731,628.10
Increase
87,594,882.84
186,788,751.56
Decrease
-82,246,714.71
-168,034,393.47
Acquisition cost on 31 Dec.
1,250,834,154.32
1,245,485,986.19
Value adjustments on 1 Jan.
-25,684,124.23
-10,754,791.14
Value adjustments for the financial year
-7,028,135.49
-16,526,728.55
Value readjustments
664,017.94
1,597,395.46
Value adjustments on 31 Dec.
-32,048,241.78
-25,684,124.23
Book value on 31 Dec.
1,218,785,912.54
1,219,801,861.96
Shares and holdings in participating interests
Acquisition cost on 1 Jan.
46,595,116.59
45,988,956.09
Increase
0.00
5,319,689.98
Decrease
0.00
-4,713,529.48
Acquisition cost on 31 Dec.
46,595,116.59
46,595,116.59
Value adjustments on 1 Jan.
-6,600,322.59
-20,709,270.63
Value adjustments for the financial year
0.00
-699,300.00
Value readjustments
4,890,120.39
14,808,248.04
Value adjustments on 31 Dec.
-1,710,202.20
-6,600,322.59
Book value on 31 Dec.
44,884,914.39
39,994,794.00
Debt securities issued by and loans to
participating interests
Acquisition cost on 1 Jan.
8,551,011.01
9,101,011.01
Decrease
-223,988.00
-550,000.00
Acquisition cost on 31 Dec.
8,327,023.01
8,551,011.01
Value adjustments on 1 Jan.
-2,565,303.30
-550,000.00
Value adjustments for the financial year
-1,751,719.71
-2,565,303.30
Value readjustments
0.00
550,000.00
Value adjustments on 31 Dec.
-4,317,023.01
-2,565,303.30
Book value on 31 Dec.
4,010,000.00
5,985,707.71
Total
1,267,680,826.93
1,265,782,363.67
LocalTapiola General | Financial statements for 2025
165
7.1 Investments in companies belonging to
the LocalTapiola Group's consolidated
financial statements
Shares and holdings, fixed assets
Domicile
Share of
stocks %
Equity
Profit for the
accounting
period
Keskinäinen Vakuutusyhtiö Turva
4)
Tampere
67.4
73,019,312.35
4,784,102.65
LTC-Otso Oy
2)
Helsinki
36.0
9,126,544.14
7,333,533.58
LokalTapiola Sydkusten Ömsesidigt Försäkringsbolag
3)
Parainen
100.0
14,940,762.19
2,322,337.44
LähiTapiola Etelä Keskinäinen Vakuutusyhtiö
3)
Salo
100.0
77,627,526.49
6,110,950.40
LähiTapiola Etelä-Pohjanmaa Keskinäinen
Vakuutusyhtiö
3)
Seinäjoki
100.0
72,358,297.54
5,318,308.16
LähiTapiola Itä Keskinäinen Vakuutusyhtiö
3)
Iisalmi
100.0
90,807,739.26
6,960,712.23
LähiTapiola Kaakkois-Suomi Keskinäinen Vakuutusyhtiö
3)
Lappeenran
ta
100.0
86,328,022.32
6,846,157.72
LähiTapiola Kainuu-Koillismaa Keskinäinen
Vakuutusyhtiö
3)
Kajaani
100.0
38,436,844.36
2,570,856.60
LähiTapiola Keskinäinen Henkivakuutusyhtiö
3)
Espoo
66.7
966,491,113.86
79,837,009.47
LähiTapiola Keski-Suomi Keskinäinen Vakuutusyhtiö
3)
Jyväskylä
100.0
65,634,283.17
6,971,264.64
LähiTapiola Lappi Keskinäinen Vakuutusyhtiö
3)
Rovaniemi
100.0
30,887,641.97
3,474,329.13
LähiTapiola Loimi-Häme Keskinäinen Vakuutusyhtiö
3)
Loimaa
100.0
39,560,802.30
3,232,014.87
LähiTapiola Länsi-Suomi Keskinäinen Vakuutusyhtiö
3)
Rauma
100.0
114,977,646.02
13,081,142.49
LähiTapiola Palvelut Oy
1)
Espoo
64.4
21,149,039.44
436,674.06
LähiTapiola Pirkanmaa Keskinäinen Vakuutusyhtiö
3)
Tampere
100.0
61,558,683.78
6,624,405.17
LähiTapiola Pohjanmaa Keskinäinen Vakuutusyhtiö
3)
Vaasa
100.0
88,049,622.02
9,111,940.50
LähiTapiola Pohjoinen Keskinäinen Vakuutusyhtiö
3)
Oulu
100.0
116,421,368.63
8,277,113.96
LähiTapiola Pääkaupunkiseutu Keskinäinen
Vakuutusyhtiö
3)
Helsinki
100.0
99,281,912.66
13,323,307.69
LähiTapiola Rahoitus Oy
1)
Espoo
53.6
126,507,172.68
12,870,134.90
LähiTapiola Savo Keskinäinen Vakuutusyhtiö
3)
Kuopio
100.0
61,320,554.11
5,334,960.22
LähiTapiola Savo-Karjala Keskinäinen Vakuutusyhtiö
3)
Mikkeli
100.0
36,996,733.76
4,911,243.07
LähiTapiola Uusimaa Keskinäinen Vakuutusyhtiö
3)
Porvoo
100.0
67,956,014.32
7,730,184.17
LähiTapiola Varainhoito Oy -konserni
3)
Espoo
16.1
65,182,479.76
-1,164,354.08
LähiTapiola Varsinais-Suomi Keskinäinen Vakuutusyhtiö
3)
Turku
100.0
58,863,651.77
8,442,019.87
LähiTapiola Vellamo Keskinäinen Vakuutusyhtiö
3)
Lahti
100.0
84,319,435.65
8,582,130.09
Suomen Vahinkovakuutus Oy
1)
Espoo
70.0
45,974,060.72
3,843,651.37
Tieto-Tapiola Oy
1)
Espoo
66.7
5,053,705.31
4,277.32
Tietotyö Oy
1)
Espoo
100.0
849,879.15
0.00
LocalTapiola General | Financial statements for 2025
166
7.1 Investments in companies belonging to
the LocalTapiola Group's consolidated
financial statements
Vakuutusneuvonta Aura
2)
Espoo
33.3
10,634.40
0.00
Vakuutusneuvonta Pohja
2)
Espoo
33.3
10,577.17
0.00
Total
2,619,702,061.30
237,170,407.69
Shares and holdings, investment assets
Domicile
Share of
stocks %
Equity
Profit for the
accounting
period
Kauppakeskus Seppä Oy
2)
Espoo
30.0
35,050.24
-22,176.38
LähiTapiola Aluekiinteistöt Ky -group
2)
Espoo
28.3
102,932,937.14
3,412,365.42
LähiTapiola Kiinteistösijoitus I GP Oy
1)
Espoo
100.0
1,593.94
-60.00
LähiTapiola Kiinteistösijoitus I Ky
2)
Espoo
30.0
18,952,223.47
3,107,982.46
LähiTapiola KR PK2 Ky -group
1)
Espoo
100.0
118,446,101.21
3,787,975.35
LähiTapiola Pääomasijoitus GP Oy
3)
Espoo
12.9
234.71
-60.00
LähiTapiola Pääomasijoitus I Ky
3)
Espoo
12.9
42,221,903.44
6,284,154.19
LähiTapiola Pääomasijoitus II GP Oy
1)
Espoo
100.0
1,296.22
-60.00
LähiTapiola Pääomasijoitus II Ky
2)
Espoo
30.0
146,588,383.53
28,394,131.69
LähiTapiola Pääomasijoitus III GP Oy
1)
Espoo
100.0
1,492.71
-60.00
LähiTapiola Pääomasijoitus III Ky
3)
Espoo
12.5
31,743,052.87
-1,356,353.76
LähiTapiola Pääomasijoitus IV Ky
2)
Espoo
31.1
248,302,836.21
5,416,064.77
LähiTapiola Pääomasijoitus V Ky
2)
Espoo
26.3
178,768,275.75
1,274,399.29
LähiTapiola Pääomasijoitus VI Ky
2)
Espoo
28.0
43,862,453.14
-3,054,342.36
LähiTapiola Rahoitusyhtiö I Ky
2)
Espoo
26.9
556,488,139.50
21,018,082.07
LähiTapiola Rahoitusyhtiö II Ky
2)
Espoo
43.7
50,939,095.20
2,940,999.12
LähiTapiola Tampereen Tornit Ky
2)
Espoo
32.2
32,899,837.25
-3,073,291.62
LähiTapiola Tontit GP I Oy
3)
Espoo
7.3
148,531.24
5,250.12
LähiTapiola Tontit GP II Oy
1)
Espoo
100.0
108,217.49
3,858.77
LähiTapiola Tontit I Ky
3)
Espoo
7.3
44,120,902.30
3,020,902.22
LähiTapiola Tontit II Ky
3)
Espoo
16.2
64,952,686.33
3,352,686.33
LähiTapiola Velkasijoitus I GP Oy
1)
Espoo
100.0
1,479.79
-60.00
LähiTapiola Velkasijoitus I Ky
2)
Espoo
37.0
87,730,828.27
3,656,064.89
LähiTapiola Velkasijoitus II Ky
2)
Espoo
34.5
203,077,329.76
5,591,285.67
LähiTapiola Velkasijoitus III Ky
2)
Espoo
31.3
159,830,501.38
-1,979,650.10
LähiTapiola Yhteiset Kiinteistöt Ky
3)
Espoo
3.0
164,088,342.21
2,287,114.25
LähiTapiola Yritysrahoitus I GP Oy
1)
Espoo
100.0
5,931.40
-263.40
LähiTapiola Yritysrahoitus I Ky
2)
Espoo
38.4
420,962,070.23
23,230,200.95
Total
2,717,211,726.93
107,297,139.94
In addition, LocalTapiola General Mutual Insurance Company has invested in 34 (34) housing associations and real estate
companies that are integrated into the consolidated financial statements of LocalTapiola Group, out of which 13 (13) are its own
subsidiaries.
1) Subsidiary
2) A subsidiary, which belongs to the consolidated financial statements of LocalTapiola Group, and is a participating interest for
the reporting entity.
3) A subsidiary, which belongs to the consolidated financial statements of LocalTapiola Group, and is classified as other
investment in the reporting entity.
4) A subsidiary, which belongs to the consolidated financial statements of LocalTapiola Group, and is not consolidated.
 
LocalTapiola General | Financial statements for 2025
167
7.2 Investments in participating
interests
Shares and holdings, fixed assets
Domicile
Share of
stocks %
Equity
Profit for the
accounting
period
Pihlajalinna Oyj -group
3)
Helsinki
16.8
190,600,000.00
37,600,000.00
Total
190,600,000.00
37,600,000.00
Shares and holdings, investment assets
Domicile
Share of
stocks %
Equity
Profit for the
accounting
period
Noja Holding Oy
2)
Turku
22.1
2,404,738.32
104,690.96
Noja Rahoitus Oy
2)
Turku
22.1
18,355,655.22
1,112,507.17
Total
20,760,393.54
1,217,198.13
In addition, LocalTapiola General Mutual Insurance Company has invested in 0 (0) housing associations and real estate
companies that are integrated into the consolidated financial statements of LocalTapiola Group as participating interests.
2) Participating interest
3) A participating interest, which belongs to the consolidated financial statements of LocalTapiola Group, and is classified as
other investment in the reporting entity.
7.3 Other investments
Security
Share of
stocks %
Number
Book value
Current value
Home
country
Finnish companies, listed
Kone Oyj B
0.01
30,000.00
1,261,755.51
1,816,800.00
Finland
Loihde Oyj
1.30
75,000.00
881,250.00
881,250.00
Finland
Nokia Oyj
0.00
35,000.00
679,350.00
679,350.00
Finland
Nordea Bank Abp
0.01
303,000.00
1,340,270.16
1,688,316.00
Finland
Terveystalo Oy
0.00
120,000.00
1,327,488.56
1,930,200.00
Finland
UPM-Kymmene Oyj
0.01
40,000.00
991,600.00
991,600.00
Finland
Wulff-Yhtiöt Oyj
4.11
283,900.00
1,129,922.00
1,129,922.00
Finland
Others
830,232.00
785,923.86
1,472,429.10
Total
1,717,132.00
8,397,560.09
10,589,867.10
Finnish companies, non-listed
Beely Oy
12.50
8,610.00
2,000,103.00
2,000,103.00
Finland
Gebwell oy
6.27
52,000.00
1,040,000.00
1,040,000.00
Finland
GlucoModicum Oy B-osake
3.18
5,723.00
1,750,093.40
1,750,093.40
Finland
GlucoModicum Oy C-osake
5.42
1,305.00
500,337.00
500,337.00
Finland
Sofigate Group Oy
2.98
604,700.00
2,029,392.63
2,176,920.00
Finland
Sofigate Group Oy
15.14
12,507.00
3,999,988.74
3,999,988.74
Finland
Others
528,121.00
491,458.67
503,190.19
Total
1,212,966.00
11,811,373.44
11,970,632.33
LocalTapiola General | Financial statements for 2025
168
7.3 Other investments
Foreign companies, listed
ABB Ltd
0.00
25,000.00
1,214,566.57
1,589,542.62
Switzerland
ASML Holding NV
0.00
3,500.00
891,505.64
3,224,900.00
The
Netherlands
AbbVie Inc
0.00
60,000.00
1,547,363.38
2,457,600.00
France
Adobe Systems Inc
0.00
9,000.00
1,442,340.00
1,442,340.00
France
Air Liquide
0.01
70,000.00
1,518,449.72
1,518,449.72
Norway
Aker BP ASA
0.00
19,000.00
974,715.65
1,290,873.95
Switzerland
Alcon Inc
0.00
11,000.00
763,024.44
2,937,702.13
USA
Alphabet Inc Class C
0.00
13,000.00
1,465,377.32
2,553,753.19
USA
Amazon.com Inc
0.00
13,500.00
2,578,068.88
3,123,497.87
USA
Amundi SA
0.01
54,000.00
1,184,968.43
1,790,934.71
Sweden
Apple Inc
0.00
18,000.00
1,410,851.59
2,844,602.34
UK
Assa Abloy Ab B
0.00
125,000.00
1,549,511.18
1,918,056.65
Sweden
AstraZeneca PLC
0.00
3,500.00
532,216.93
766,217.02
USA
Atlas Copco AB
0.00
50,000.00
982,122.39
982,122.39
UK
Automatic Data Processing Inc
0.00
110,000.00
1,348,368.45
2,205,500.00
Spain
Axa Sa
0.00
16,000.00
717,751.57
748,936.17
USA
Boliden AB
0.02
45,000.00
1,201,731.89
2,142,401.70
Sweden
Brenntag AG
0.01
16,000.00
792,960.00
792,960.00
Germany
Broadcom Ltd
0.00
5,000.00
637,541.37
1,472,765.96
USA
Credit Agricole SA
0.00
150,000.00
1,697,360.04
2,632,500.00
France
DSV Panalpina A/S
0.00
7,000.00
916,165.17
1,513,609.77
Denmark
Danone
0.00
20,000.00
1,238,612.54
1,535,600.00
France
Dassault Systemes Sa
0.00
108,000.00
1,677,561.98
2,987,280.00
Germany
Deutsche Telekom AG
0.00
2,500.00
677,680.85
677,680.85
Ireland
Eaton Corp PLC
0.00
1,700.00
1,349,877.11
1,554,856.17
USA
Eli Lilly & Co
0.01
70,000.00
639,760.05
1,357,760.01
Sweden
Epiroc AB
0.00
65,000.00
1,300,768.39
1,300,768.39
Norway
Equinor ASA
0.00
30,000.00
1,112,936.17
1,112,936.17
USA
Exelon Corp
0.00
250.00
844,427.74
844,427.74
Switzerland
Givaudan SA
0.00
105,000.00
1,102,037.61
1,412,434.10
UK
Heineken Nv
0.00
18,000.00
1,255,320.00
1,255,320.00
The
Netherlands
ING Groep NV
0.00
100,000.00
1,097,653.79
2,401,000.00
The
Netherlands
Illinois Tool Works Inc
0.00
60,000.00
1,495,396.00
1,831,908.70
Sweden
Investor AB
0.00
5,000.00
934,225.41
1,371,148.94
USA
JPMorgan Chase & Co
0.00
6,000.00
2,199,600.00
2,199,600.00
France
L'Oreal SA
0.00
2,700.00
1,741,500.00
1,741,500.00
France
LVMH Moet Hennessy Louis Vuitton Sa
0.00
10,000.00
1,025,899.61
1,025,899.61
UK
Linde PLC
0.00
9,400.00
568,660.03
768,480.00
Ireland
Lowe's Cos Inc
0.00
23,000.00
1,287,348.48
1,381,610.00
Germany
Medtronic Inc
0.01
13,000.00
1,244,814.48
1,593,800.00
Germany
Mercedes-Benz Group AG
0.00
3,800.00
1,979,301.55
2,134,759.15
USA
Merck & Co Inc
0.00
7,000.00
1,854,897.17
2,881,140.43
USA
Merck KGAA
0.00
18,000.00
983,827.78
2,857,021.28
USA
LocalTapiola General | Financial statements for 2025
169
7.3 Other investments
Meta Platforms Inc
0.00
235,000.00
2,327,546.42
3,074,174.88
UK
Microsoft Corp
0.00
28,000.00
2,367,103.29
2,367,103.29
Switzerland
Mondelez International Inc
0.00
15,000.00
1,538,563.50
1,765,084.82
Switzerland
NIKE Inc
0.00
39,000.00
1,698,342.46
1,698,342.46
Denmark
NVIDIA Corp
0.00
3,500.00
580,582.98
580,582.98
USA
National Grid PLC
0.00
4,500.00
685,422.17
705,446.81
USA
Nestle Sa
0.00
7,000.00
626,068.27
855,012.77
USA
Novo-Nordisk A/S B
0.00
4,000.00
582,297.87
582,297.87
USA
Palo Alto Networks Inc
0.00
800.00
1,248,800.00
1,248,800.00
Germany
PepsiCo Inc
0.00
8,000.00
1,933,082.02
2,818,982.18
Switzerland
Procter & Gamble Co
0.00
9,500.00
1,500,267.85
1,979,325.00
Germany
Roche Holding Ag
0.00
22,000.00
987,555.50
1,092,935.36
Sweden
SAP Ag
0.00
8,000.00
661,760.00
661,760.00
France
Schneider Electric Sa
0.00
8,500.00
916,989.10
1,996,650.00
France
Siemens Ag
0.00
11,000.00
1,710,551.20
2,630,650.00
Germany
Siemens Healthineers AG
0.00
28,779.00
1,018,580.21
1,292,752.68
Germany
Skandinaviska Enskilda Banken AB
0.01
120,000.00
1,099,384.20
2,163,470.87
Sweden
Swiss Re Ltd
0.00
12,000.00
1,091,026.89
1,711,616.92
Switzerland
Synopsys Inc
0.01
320,000.00
1,206,282.87
1,620,169.61
UK
Tesco PLC
0.00
42,000.00
1,339,802.13
1,666,652.35
Switzerland
Var Energi ASA
0.00
13,333.00
742,513.34
742,513.34
UK
Veolia Environnement
0.02
425,000.00
1,184,243.86
1,184,243.86
Norway
Visa Inc
0.01
76,000.00
2,189,705.14
2,258,720.00
France
Others
32,300.00
3,763,779.34
6,605,354.81
Total
2,975,062.00
85,979,317.96
119,478,840.59
Foreign companies, non-listed
Sos International A/S
4.69
133,720.00
2,172,782.56
0.00
Denmark
Others
74,165.00
408,668.99
702,252.58
Total
207,885.00
2,581,451.55
702,252.58
Mutual funds
Book value
Current value
Home
country
AMUNDI PLANT EM GRN 1-SEURH
12,151,495.85
12,151,495.85
Luxembourg
BNP Paribas Global Senior Corporate Loans
931,732.13
954,170.06
France
GS Emerging Markets Equity
8,946,643.16
12,583,591.01
Luxembourg
LähiTapiola Eurooppa HY ESG A
94,162,897.49
104,784,360.74
Finland
LähiTapiola Eurooppa Ilmastoindeksi A
81,458,107.60
93,119,723.60
Finland
LähiTapiola High Yield A
22,000,000.00
23,619,259.55
Finland
LähiTapiola Hyvinvointi ESG A
74,992,741.22
78,711,814.89
Finland
LähiTapiola Kehittynyt Aasia ESG A
96,210,181.51
106,684,816.85
Finland
LähiTapiola Kehittyvät Korkomarkkinat A
6,898,043.63
7,508,658.48
Finland
LähiTapiola Kehittyvät Markkinat A
26,641,143.52
38,634,743.88
Finland
LähiTapiola Kestävä Vaikuttajakorko A
87,660,124.42
95,189,592.55
Finland
LähiTapiola Kestävä Ympäristö A
47,703,475.14
56,219,081.45
Finland
LähiTapiola Lyhytkorko ESG A
5,573,602.74
7,715,083.26
Finland
LähiTapiola Pohjoinen Yrityskorko ESG A
30,748,047.58
32,655,240.45
Finland
LocalTapiola General | Financial statements for 2025
170
7.3 Other investments
LähiTapiola Reaalikorko ESG A
14,914,055.19
15,017,577.88
Finland
LähiTapiola Sijoituskiinteistöt A
59,599,271.74
72,410,566.41
Finland
LähiTapiola Tulevaisuus A
10,430,056.92
10,430,056.92
Finland
LähiTapiola USA Ilmastoindeksi A
5,541,983.27
5,824,624.42
Finland
LähiTapiola Yhteisö Eurooppa ESG IV A
4,721,199.18
7,436,710.45
Finland
LähiTapiola Yhteisö Pitkäkorko ESG IV A
81,303,327.50
99,114,629.89
Finland
LähiTapiola Yhteisö USA ESG IV A
11,184,359.34
11,184,359.34
Finland
LähiTapiola Yhteisö Yrityskorko ESG IV A
54,005,871.41
54,005,871.41
Finland
LähiTapiola Yrityskorko ESG A
104,828,635.54
114,937,427.31
Finland
Mandatum Opportunistic Loan Strategy
61,138,651.62
66,118,323.21
Finland
PIMCO GIS Emerging Markets Bond ESG Fund
7,811,821.23
7,811,821.23
Finland
S-Pankki High Yield Eurooppa ESG Korko
13,762,093.23
14,784,181.56
Ireland
S-Pankki Kehittyvät Markkinat ESG Osake
5,000,000.00
5,982,180.89
Finland
S-Pankki Toimitila
6,331,114.73
8,682,939.71
Finland
Seligson & Co Euro-obligaatio A
4,943,031.92
4,943,031.92
Finland
Seligson & Co Phoebus A
5,000,000.00
5,404,170.24
Finland
Seligson & Co Rahamarkkinarahasto A
7,500,000.00
12,272,236.92
Finland
Others
293,239.17
293,764.07
Total
1,054,386,947.98
1,187,186,106.40
Capital mutual funds
Kirjanpitoarvo
Käypä arvo
Altor Fund II (No. 1)
867,335.00
867,335.00
Jersey
Altor Fund III (No. 2)
5,683,957.34
5,683,957.34
Sweden
Altor Fund IV (No.2) AB
919,958.80
1,045,310.00
Finland
Amanda V East L.P
3,490,893.97
3,501,551.00
Luxembourg
Antin Infrastructure Partners V-C SCSp
4,528,065.00
4,528,065.00
UK
Apax Europe VII - B, L.P.
518,051.21
518,051.21
UK
Armada Mezzanine IV Ky
3,703,319.00
3,703,319.00
Cayman
Islands
Beechbrook Mezzanine II L.P.
664,057.00
664,057.00
UK
Beechbrook Private Debt III L.P.
2,761,571.30
4,570,997.00
UK
Beechbrook UK SME Credit I L.P.
12,901,986.15
15,520,376.46
Finland
Blue Owl GP Stakes V LP
17,688,700.03
18,080,166.32
Luxembourg
Bowmark Capital Partners V, L.P.
2,548,889.34
2,817,582.00
Finland
Bridgepoint Europe III, L.P.
1,797,831.12
2,100,298.44
Luxembourg
Bridgepoint Europe IV F L.P.
2,899,017.00
2,899,017.00
Luxembourg
Bridgepoint Europe V C L.P.
10,227,519.20
10,227,519.20
Sweden
Dasos Habitat Fund Ky
2,419,744.94
2,419,744.94
Finland
Dasos Kestävä Metsä ja Puu III
941,504.15
941,504.15
Finland
Dasos Timberland Fund II
10,615,676.07
11,718,904.11
Finland
FIM Lapset ja nuoret I Ky
3,723,906.00
3,723,906.00
Finland
Fundu Fund Ky
19,783,389.35
19,783,389.35
Finland
ICG Senior Debt Partners Fund 2
1,868,514.15
2,629,192.68
USA
LocalTapiola General | Financial statements for 2025
171
7.3 Other investments
Infranode I (No. 1) AB
2,133,499.57
2,133,499.57
USA
Kasvurahastojen Rahasto IV Ky
9,694,235.07
9,936,992.00
Finland
Kasvurahastojen Rahasto V Ky
7,681,828.94
8,893,514.04
USA
Others
3,368,828.26
3,844,755.17
Total
133,432,277.96
142,753,003.98
Total other investments, shares and holdings
6,113,045.00
1,296,588,928.98
1,472,680,702.98
8. Other investments
8.1 Other loans, itemised by type of security
2025
2024
Unsecured, total remaining acquisition cost
895,011.75
4,096,011.75
895,011.75
4,096,011.75
9. Changes in tangible and intangible
assets
2025
Intangible
rights, other
expenses with
long-term
effects and
development
expenses
Advance
payments
Goodwill and
Goodwill on
consolidation
Machinery and
equipment
Acquisition cost on 1 Jan.
89,664,738.74
9,133,619.62
1,200,000.00
35,426,192.30
Increase
2,250,149.12
9,428,308.52
0.00
752,690.13
Decrease
-9,205,945.66
-79,714.20
0.00
-291,550.00
Transfers between items
3,658,153.65
-3,658,153.65
0.00
0.00
Acquisition cost on 31 Dec.
86,367,095.85
14,824,060.29
1,200,000.00
35,887,332.43
Accumulated depreciation on 1 Jan.
-82,138,954.35
0.00
-1,200,000.00
-34,588,198.92
Accumulated depreciation related to
deductions and transfers
9,205,945.66
0.00
0.00
0.00
Depreciation for the financial year
-3,012,939.78
0.00
0.00
-324,783.39
Accumulated depreciation on 31 Dec.
-75,945,948.47
0.00
-1,200,000.00
-34,912,982.31
Book value on 31 Dec.
10,421,147.38
14,824,060.29
0.00
974,350.12
LocalTapiola General | Financial statements for 2025
172
10. Capital and reserves and itemization of revaluation reserve
01.01.2025
Increase
Decrease
31.12.2025
Initial reserve
8,641,380.35
0.00
0.00
8,641,380.35
Revaluation reserve
85,090.31
0.00
0.00
85,090.31
Security reserve
1,758,839,638.71
241,306,099.24
0.00
2,000,145,737.95
Contingency reserve
4,233,091.60
5,000,000.00
-3,027,100.00
6,205,991.60
Total other reserves
1,763,072,730.31
246,306,099.24
-3,027,100.00
2,006,351,729.55
Profit for the accounting period
246,306,099.24
86,288,374.59
-246,306,099.24
86,288,374.59
Total changes in capital and reserves
2,018,105,300.21
332,594,473.83
-249,333,199.24
2,101,366,574.80
10.2 Itemisation of revaluation reserve
31.12.2025
Revaluation of fixed assets
85,090.31
Total
85,090.31
10.3 Account of distributable profits
31.12.2025
Profit for the accounting period
86,288,374.59
+ Other unrestricted capital and reserves
Security reserve
2,000,145,737.95
Contingency reserve
6,205,991.60
Total distributable profits
2,092,640,104.14
11. Accumulated appropriations
2025
2024
Depreciation difference
Depreciation difference on 1 Jan.
182,662.27
178,821.80
Increase
174.26
3,840.47
Depreciation difference on 31 Dec.
182,836.53
182,662.27
Total accumulated appropriations
182,836.53
182,662.27
LocalTapiola General | Financial statements for 2025
173
12. Provision for outstanding claims
2025
2024
Uncontested recourse receivables deducted
from provisions for claims outstanding
Statutory workers' compensation
38,540,056.00
37,062,747.00
13. Other obligatory provisions
2025
2024
Provision for unemployment security deductible
71,624.62
65,722.11
71,624.62
65,722.11
14. Deferred tax liabilities
2025
2024
Tax liability calculated on the basis of timing differences and other temporary
differences between taxable profit and accounting profit
143,390.32
143,390.32
Tax debt calculated based on valuation gains/losses that is
deemed likely to become payable during the next year
5,400,000.00
3,800,000.00
5,543,390.32
3,943,390.32
15. Receivables and liabilities
15.1 Itemisation of receivables
2025
2024
Receivables from group companies
Other receivables
4,568,059.30
2,280,314.70
4,568,059.30
2,280,314.70
15.2 Itemisation of liabilities
2025
2024
Liabilities to group companies
Trade creditors
2,397,941.27
1,586,009.80
Other liabilities
855,895.65
1,003,209.08
3,253,836.92
2,589,218.88
15.3 Itemisation of accruals and deferred income
2025
2024
Liabilities to personnel
12,133,665.97
10,598,895.06
Valuation loss on derivatives
1,062,538.82
0.00
Other accruals and deferred income
4,973,082.47
3,781,836.98
18,169,287.26
14,380,732.04
LocalTapiola General | Financial statements for 2025
174
16. Notes concerning guarantees and contingent liabilities
Other derivative contracts
2025
2024
Interest derivatives
Underlying instrument
20,000,000.00
0.00
Current value
-1,062,538.82
0.00
Forward and futures contracts, open
Underlying instrument
0.00
2,600,000.00
Leasing liabilities
Amount to be paid in the current financial year
159,854.64
120,769.44
Amount to be paid in the coming years
573,571.83
457,753.47
733,426.47
578,522.91
Rent liabilities
Amount to be paid in the current financial year
2,268,696.12
2,291,047.20
Amount to be paid in the coming years
5,449,119.32
7,114,686.26
7,717,815.44
9,405,733.46
Value-added tax liabilities
Joint liability relating to collective
value-added tax registration
Group companies
656,908.44
1,297,139.64
Partner companies
3,575,170.19
3,969,064.33
4,232,078.63
5,266,203.97
VAT liability with a positive sign = VAT debt
VAT liability with a negative sign = VAT receivable
Inspection responsibility of real estate investments
under section 120 of the Value Added Tax Act
Company
256,003.00
365,395.00
Other companies of the group
52,523,332.41
68,759,592.11
52,779,335.41
69,124,987.11
Other commitments
Investment commitments
561,231,421.17
594,828,104.46
Granted limit
101,500,000.00
102,500,000.00
Other commitments *
35,899,392.12
33,292,595.91
698,630,813.29
730,620,700.37
*LocalTapiola General has pledged to purchase the other investors’ shares in the named investment in 2028. The amount of
liability is based on the shareholder agreement and on the estimated development of the indicators for the valuation mechanism
determined in the agreement.
A joint liability agreement concluded between LocalTapiola General Mutual Insurance Company and regional mutual insurance
companies of the LocalTapiola group determines the principles for ensuring the solvency of the companies in the group. More
information regarding the joint liability agreement can be found in the Report of the Board of Directors, section Solvency and risk
management.
LocalTapiola General | Financial statements for 2025
175
17. Related party loans and transactions
The related parties register of the company has been compiled in accordance with the related parties definition in the Insurance
Companies Act.
The company has not carried out related party transactions involving any other than conventional commercial terms and
conditions.
The company has not granted loans to related parties.
Information on contingent liability relating to group registration of VAT can be found in Note 16.
LocalTapiola General | Financial statements for 2025
176
10.5.3 Performance analysis and other notes, LocalTapiola General
Performance analysis
€1,000
2025
2024
2023
2022
2021
Premiums earned
297,680
287,777
274,172
267,941
265,142
Claims incurred
-224,918
-222,425
-146,365
-211,200
-221,618
Operating expenses
-47,331
-51,807
-45,764
-49,045
-38,973
Balance on technical account before change in
equalization provision
25,430
13,545
82,042
7,696
4,551
Investment income and expenses as well as revaluations
and adjustments thereof
126,098
264,864
92,548
9,018
139,044
Other income and expenses
448
1,272
1,578
1,253
1,810
Operating profit
151,976
279,681
176,168
17,966
145,404
Change in equalization provision
-49,513
-12,607
-80,349
-6,372
0
Profit before appropriations and taxes
102,463
267,073
95,819
11,594
145,404
Appropriations
0
-4
-8
-12
-24
Direct taxes
-16,174
-20,764
-21,209
-1,621
-26,438
Profit for the accounting period
86,288
246,306
74,602
9,961
118,942
Operating profit
151,976
279,681
176,168
17,966
145,404
Change in the difference between current and book
values
42,396
45,691
30,248
-139,931
112,325
Total result
194,372
325,372
206,416
-121,965
257,730
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177
10.5.4 Investment allocation at fair value
Investment
allocation at
current value
Basic breakdown
Risk breakdown ⁸⁾
31/12/2025
31/12/2024
31/12/2025
31/12/2024
31/12/2023
31/12/2022
31/12/2021
milj. eur
%
milj. eur
%
milj. eur
%
10)
% 10)
% 10)
% 10)
% 10)
Fixed-income
investments
1,220.8
33.5
1,230.8
35.2
1,220.8
33.5
35.2
29.3
31.4
30.9
Loan receivables ¹⁾
42.3
1.2
62.9
1.8
42.3
1.2
1.8
2.3
2.7
2.5
Bonds
1,021.5
28.0
1,050.3
30.0
1,042.0
28.6
30.1
24.4
25.8
26.2
Other money
market instruments
and deposits ¹⁾ ²⁾
157.0
4.3
117.6
3.4
136.4
3.7
3.4
2.6
2.9
2.2
Equities and shares
1,737.7
47.7
1,576.2
45.1
1,737.7
47.7
45.0
53.5
50.8
53.5
Listed equities and
shares ³⁾
563.8
15.5
397.0
11.4
563.8
15.5
11.3
8.9
8.0
15.4
Private equity
investments ⁴⁾
781.9
21.4
787.2
22.5
781.9
21.4
22.5
24.7
24.7
20.7
Unlisted equities
and shares ⁵⁾
392.1
10.8
392.0
11.2
392.1
10.8
11.2
20.0
18.1
17.4
Real estate
investments
679.6
18.6
680.8
19.5
679.6
18.6
19.5
16.9
17.5
15.3
Direct real estate
investments
387.2
10.6
401.7
11.5
387.2
10.6
11.5
12.6
13.7
12.7
Real estate funds
and joint
investments
292.3
8.0
279.0
8.0
292.3
8.0
8.0
4.3
3.8
2.6
Other investments
8.0
0.2
9.1
0.3
8.0
0.2
0.3
0.3
0.3
0.2
Hedge fund
investments ⁶⁾
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Commodity
investments
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Other investments ⁷⁾
8.0
0.2
9.1
0.3
8.0
0.2
0.3
0.3
0.3
0.2
Total investments
3,646.1
100.
0
3,496.9
100.
0
3,646.1
100.
0
100.0
100
100
100
Effect of derivatives
⁹⁾
0.0
0.0
0.0
0.0
0.0
Investments at
current value, total
3,646.1
100.
0
3,496.9
100.
0
3,646.1
100.
0
100.0
100.0
100.0
100.0
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178
The modified duration of bond investments
5.50
1) Accrued interest included
2) Includes cash at bank and in hand and purchase money claims and purchase money obligations
3) Includes also mixed funds if those can't set elsewhere
4) Includes fixed assets and mezzanine funds as well as infrastructure investments
5) Includes also unlisted real estate investment companies
6) Includes all types of hedge fund investments regardless of the strategy of the fund
7) Includes items that can not be included in other investments classes
8) Risk breakdown can be shown from reference periods as the knowledge cumulates (not with retroactive effect).
If the numbers are shown from reference periods and the periods are not completely comparable, it must be informed.
9) Includes derivatives effect on difference between risk and basic allocation. The effect of derivatives can be +/-.
After the difference correction the total sum of the risk allocation tallies with the basic allocation.
10) The ratio is calculated by using the total sum of the row ”Investments at current value, total” as divisor.
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179
10.5.5 Net investment income on tied capital
Return on capital employed (at
current value), %
Net
investment
income at
current value
⁸⁾
Capital
employed ⁹⁾
Return-% on capital employed
2025
2025
2024
2023
2022
2021
milj. eur
milj. eur
%
%
%
%
%
Fixed-income investments
33.4
1,201.9
2.8
4.5
7.2
-10.2
-0.1
Loan receivables ¹⁾
3.0
57.8
5.2
-0.5
3.4
6.1
-4.1
Bonds
27.8
1,030.1
2.7
4.9
8.4
-12.5
0.4
Other money market instruments and deposits ¹⁾
²⁾
2.6
114.1
2.3
4.5
2.5
-0.3
-0.2
Equities and shares
131.0
1,681.1
7.8
15.4
4.5
-0.7
14.1
Listed equities and shares ³⁾
72.9
532.7
13.7
21.0
8.1
-19.9
30.1
Private equity investments ⁴⁾
30.2
777.3
3.9
5.4
5.2
6.5
12.2
Unlisted equities and shares ⁵⁾
27.9
371.2
7.5
27.7
2.1
3.7
4.7
Real estate investments
8.3
675.4
1.2
3.2
-3.6
0.4
7.6
Direct real estate investments
1.8
394.6
0.5
3.1
-1.0
3.4
8.6
Real estate funds and joint investments
6.5
280.8
2.3
3.6
-12.4
-11.4
2.5
Other investments
0.6
8.3
6.6
5.2
13.2
-4.4
3.3
Hedge fund investments ⁶⁾
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Commodity investments
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Other investments ⁷⁾
0.6
8.3
6.6
5.2
13.2
-4.4
3.3
Total investments
173.3
3,566.7
4.9
9.6
4.0
-3.8
8.4
Unallocated return, costs and operating
expenses
-4.8
Net investment income at current value
168.5
3,566.7
4.7
9.4
3.8
-4.0
8.2
1) Accrued interest included
2) Includes cash at bank and in hand and purchase money claims and purchase money obligations
3) Includes also mixed funds if those can't set elsewhere
4) Includes fixed assets and mezzanine funds as well as infrastructure investments
5) Includes also unlisted real estate investment companies
6) Includes all types of hedge fund investments regardless of the strategy of the fund
7) Includes items that can not be included in other investments classes
8) Change in market values at the end and beginning of the reporting period – cash flows during the period
    By cash flow is meant the difference between sales/profits and purchases/expenses.
9) Capital employed = Market value at the beginning of the period + daily/monthly time-weighted cash flows
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180
11 Accounting principles 
The financial statements of LocalTapiola General Mutual
Insurance Company (LocalTapiola General) are prepared in
accordance with the Finnish Accounting Act, the Limited
Liability Companies Act and the Insurance Companies Act. In
addition, compliance is ensured with the Ministry of Social
Affairs and Health’s Decree on the financial statements and
consolidated financial statements of insurance undertakings,
with the provisions of the Accounting Decree as provided in
the above Decree, and with the decisions, regulations and
instructions issued by the authorities regulating insurance
companies – the Ministry of Social Affairs and Health and the
Financial Supervisory Authority.
11.1 Composition of LocalTapiola Group
11.1.1 Grounds for the scope of the consolidated
financial statements of LocalTapiola Group
As the ultimate parent company of LocalTapiola Group, LocalTapiola General
prepares the consolidated financial statements for LocalTapiola Group to the
extent required from insurance groups under the Insurance Companies Act.
They are also necessary for the purposes of group supervision carried out by
the Financial Supervisory Authority under the Insurance Companies Act.
In spite of the consolidated financial statements, LocalTapiola Group as a
whole does not constitute a group within the meaning of the Accounting Act,
mainly because the insurance companies are mutual companies. Mutual
insurance companies are owned by policyholders, and consequently they do
not fulfil the requirement of the Accounting Act’s definition of a group – that
the parent company holds a majority stake in and a majority of the votes of
the subsidiary. LocalTapiola General also does not have the right to nominate
a majority of the members of the Boards of Directors of the other mutual
LocalTapiola Group insurance companies, nor are there any contractual or
other arrangements in force between the LocalTapiola Group companies in
accordance with which LocalTapiola General would exercise de facto control
over the other mutual insurance companies part of LocalTapiola Group.
All guarantee share owners of Turva Mutual Insurance Company have signed
an addendum to the agreement concluded between the guarantee share
owners, according to which LocalTapiola General has, where it so wishes, the
right to appoint the majority of Turva’s Board of Directors. LocalTapiola
Group owns 75.79 per cent of the guarantee capital of Turva. In the
consolidated financial statements of LocalTapiola Group, Turva Mutual
Insurance Company is reported as a subsidiary, yet Turva’s financial
statements information is not consolidated into the consolidated financial
statements of LocalTapiola Group on the basis of chapter 6, section 3,
paragraph 1 of the Accounting Act, according to which the financial
statements of a subsidiary may be excluded from consolidation if
consolidation is not necessary in order to present a true and adequate picture
of the operational results and financial position of the group. Owners of the
guarantee capital of a mutual company do not have a right to the company’s
other assets than the guarantee capital and any possible guarantee capital
interest paid from retained earnings by decision of a General Meeting. In
accordance with the Financial Supervisory Authority’s statement, Turva is not
consolidated into LocalTapiola Group.
11.1.2   Consolidated financial statements of
LocalTapiola Group
The LocalTapiola General corporate group, as determined under the
Accounting Act, and the other companies of the insurance group as referred
to in chapter 26, section 2 of the Insurance Companies Act, are consolidated
into the consolidated financial statements of LocalTapiola Group.
LocalTapiola Group comprises LocalTapiola General, 19 regional non-life
insurance companies, LocalTapiola Life as well as the other companies
consolidated into LocalTapiola Group by way of their control or influence. The
names of the main LocalTapiola Group companies are shown in the notes to
the financial statements and in the report of the Board of Directors. The
group-related terms used in the financial statements refer to LocalTapiola
Group.
The consolidated financial statements of LocalTapiola Group are prepared as
combinations of the profit and loss accounts, balance sheets and notes of
LocalTapiola General and of the subsidiaries consolidated into LocalTapiola
Group. From these, the following are eliminated: inter-company receivables
and liabilities, income and expenses, profit distribution, intragroup realised
gains and losses, and cross-ownership. In the event that the accounting
principles of a subsidiary deviate in any material regard from the accounting
principles employed in preparing the consolidated financial statements of
LocalTapiola Group, the items in question are adjusted in group consolidation
to align them with the accounting principles of the group.
LocalTapiola Group’s intragroup shareholdings and guarantee capital
ownerships are eliminated using the acquisition method. Mutual companies
credit a part of their retained earnings from capital and reserves to owner-
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181
customers in the form of customer bonuses. Under capital and reserves,
‘Mutual insurance companies’ capital and reserves’ is shown as a separate
balance sheet item. The initial fund, security reserve and contingency reserve
of the mutual insurance companies consolidated as subsidiaries, as well as
their retained earnings not paid as interest to the guarantee capital owners,
are shown under the ‘Mutual insurance companies’ capital and reserves’
balance sheet item. LocalTapiola Group owns 100% of the guarantee capital
of the mutual regional non-life insurance companies and of LocalTapiola Life.
The profit and loss account items of the housing and real estate companies
included in LocalTapiola Life Group are shown in the life insurance technical
account.
Minority interest in capital and reserves and in profit is shown separately in
the profit and loss account and the balance sheet. Subsidiaries acquired
during the financial year are consolidated as from the date of acquisition,
and subsidiaries sold are consolidated up to the date of disposal.
Associated undertakings, that is, companies in which LocalTapiola Group
holds 20–50 per cent of the shares or voting rights, are consolidated into the
consolidated financial statements of LocalTapiola Group using the equity
method. However, mutual companies, such as limited liability housing
companies, real estate companies and mutual funds, are not consolidated as
associated undertakings into the financial statements of LocalTapiola Group,
not even where the above thresholds for voting rights and ownership were
met on the closing of the accounts.
In the consolidated financial statements of LocalTapiola Group, deferred tax
liabilities and deferred tax assets are recognised in the balance sheet.
Deferred tax liabilities and deferred tax assets arising from consolidation
procedures are recognised in the balance sheet when their future tax effects
are considered likely for the companies which they concern. The change in
taxation-based provisions and in accelerated depreciation is allocated
between profit and the change in deferred tax liability. The corresponding
balance sheet items are allocated between deferred tax liability and capital
and reserves, with due consideration of minority interest.
With regard to housing and real estate companies, revaluations of insurance-
sector subsidiary shares are allocated as revaluations of LocalTapiola Group
subsidiaries’ properties.
Goodwill arising from elimination is primarily allocated to the relevant asset
items of the subsidiary, with due consideration of the fair value of these
items, and the goodwill is amortised according to plan in the same manner as
the corresponding item. Unallocated goodwill on consolidation is presented as
a separate item under intangible assets in the balance sheet, and it is
amortised according to plan. Negative goodwill on consolidation is presented
as a separate item under liabilities in the balance sheet and is released to
income, where possible, from the company’s retained earnings.
Internal direct insurance business included in the consolidated financial
statements of LocalTapiola Group is not eliminated; internal reinsurance, with
the exception of the equalisation provision, is eliminated.
11.2 Accounting principles
11.2.1   Measurement and recognition of intangible
assets
Other expenses with long-term effects
Other capitalised expenses with long-term effects include the renovation
costs of premises and the design and software programming costs of ICT
systems. They are shown in the balance sheet at cost less accumulated
depreciation and amortisation.
11.2.2 Valuation and recognition of
investments
Land and buildings
Buildings and structures are shown in the balance sheet at cost less
accumulated depreciation, or they are recognised at a lower fair value.
Financial assets are shown in the balance sheet at the lower of cost and fair
value. Values of land and buildings may have been revalued if their value at
the end of the financial year was permanently and materially higher than the
original acquisition cost. The counterpart entry of a revaluation of land or
buildings classified as investment assets has been recognised as income in the
profit and loss account since 1978, and revaluations made prior to that have
been recognised under restricted capital and reserves in the revaluation
reserve. The counterpart entry of an investment classified as fixed assets is
recognised under restricted capital and reserves in the revaluation reserve.
If the fair value increases, impairments previously recognised in respect of
investments are reversed (through profit or loss) up to the original acquisition
cost.
Shares and participations
Shares and participations are shown in the balance sheet at the lower of cost
and fair value. Acquisition cost is calculated using the average price.
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182
Previously recognised impairments are reversed into the value of shares and
participations insofar as the fair value exceeds the carrying amount.
Securities lent are included in the balance sheet. Details of lent securities are
shown in the notes to the balance sheet.
Financial instruments
Financial instruments include bonds and other money market instruments.
Financial instruments are shown in the balance sheet at cost. Acquisition cost
is calculated using the average price. The difference between the nominal
value and the acquisition cost of financial instruments is amortised as
interest income or as a decrease thereof over the instrument’s term. The
counterpart entry is recognised as an increase or decrease of the acquisition
cost of the financial instrument. Temporary changes in value that are due to
interest rate fluctuations and other reasons are not recognised. Impairments
that are due to other reasons are recognised.
Similarly, impairment reversals are recognised if the fair value of the financial
instrument has later exceeded the amortised cost, up to the original
acquisition cost.
Loans, deposits, and deposits with ceding undertakings
Loans, deposits, and deposits with ceding undertakings are shown in the
balance sheet at nominal value or at a permanently lower probable value.
Temporary changes in value that are due to interest rate fluctuations and
other reasons are not recognised. Impairments that are due to other reasons
are recognised.
Similarly, impairment reversals are recognised if fair value has later exceeded
the amortised cost, up to the original acquisition cost.
Derivative contracts in the insurance business
In the insurance business, derivative contracts are used operationally as
investments that reduce investment risk. In addition to this, derivatives are
also used for hedge accounting purposes, and hedge accounting is applied to
these derivatives.
Any negative difference between the fair value of a derivative contract
treated operationally or as a non-hedging instrument and a higher carrying
amount is recognised as an expense. Unrealised gains are not recognised.
Gains and losses generated during the financial year from the closing or
lapsing of contracts are recognised as income or expense for the financial
year. Interest allocated to the financial year is recognised in investment
interest income/expenses.
Hedge accounting
The relationship between a hedged item and the hedging derivative
instrument is documented in the manner described in the derivatives strategy,
and the effectiveness of the hedge is monitored on an ongoing basis.
When hedge accounting is applied, any negative change in the value of the
derivative is not recognised as an expense insofar as it is offset by an
increase in the value of the hedged item. That portion of the negative change
in the derivative’s value which exceeds the increase in the value of the hedged
item is recognised as an expense. If, in the profit and loss account, no change
in value is recognised for the hedged balance sheet item, no valuation gains
or losses will be recognised from the hedging contract.
Derivative contracts in the finance business
In the finance business, derivative contracts are used for hedging against
interest rate risk. In accounting, derivatives are treated as non-hedging, and
they are recognised at fair value through profit or loss. Changes in value, and
the interest allocated to the financial year, are recognised under other
income and expenses as stemming from ancillary activity. The hedging
interest rate derivative used for bonds is treated as an exception, and the fair
value of this derivative is shown in the financial statements as an off-
balance-sheet item. The cash flows of hedging interest rate swaps are
recognised through profit or loss.
11.2.3 Determining the fair values of
investments
Investments in land and buildings
Market-based fair values are used as the values of land and buildings. The
valuation principles set out in the International Valuation Standards (IVS) and
the good property valuation principles (known as the AKA criteria), and the
requirements they impose on valuation methods, are applied in the valuation
of investments in land and buildings.
Residential properties are primarily valued using the sales comparison
approach based on comparable transactions. The primary valuation method
for commercial properties is the income-based discounted cash flow method.
Special properties are valued using the market‑based valuation method that
is best suited to the property. The assignment compensation defined in
section 10 of the Act on the Use, Assignment and Redemption of State-
Subsidised (ARAVA) Rental Dwellings and Buildings (1190/1993) is treated as
the fair value of real estate investments funded with state housing loans.
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183
In accordance with the requirements of the Financial Supervisory Authority,
valuations are carried out by either external authorised property valuers or
LocalTapiola Real Estate Asset Management Ltd’s experts, instructed and
audited by an external authorised property valuer.
Shares, participations and financial instruments
For quoted securities and securities for which there is a market, the latest
trading price or, if this is not available, the bid price is used as the fair value.
For other investments, the likely transfer price, the carrying amount or a
substance-based value is used as the fair value. For private equity funds, the
acquisition cost or the management company’s estimate of the fair value of
the fund is used as the fair value.
Loans, deposits, and deposits with ceding undertakings
For loans, deposits, and deposits with ceding undertakings, the nominal value
is used as the fair value, adjusted for expected credit losses to reduce the
nominal value to the estimated recoverable amount.
11.2.4 Zillmerisation
Zillmerisation is not applied.
11.2.5 Investments covering unit-linked
insurance policies
Investments covering unit-linked insurance policies are valued in the balance
sheet at fair value.
11.2.6 Measurement of receivables
Premium receivables
Premium receivables are shown in the balance sheet at up to their likely value.
From the nominal value of premium receivables is subtracted experience
lapsing, which yields their likely value. Receivables not likely to be settled are
recognised as credit losses.
Foreign currency items
Receivables and liabilities denominated in foreign currencies are converted
into Finnish currency at the rate quoted by the European Central Bank on the
balance sheet date. For other investments, the exchange rate effective on the
acquisition date or, if lower, the exchange rate effective on the balance sheet
date is used.
Exchange rate differences are allocated as adjustment items of the income
and expenses concerned. Exchange rate differences on cash at bank, cash in
hand and deposits, as well as items that cannot be directly allocated as an
income or expense adjustment, are recognised as investment exchange gains
or losses.
11.2.7 Depreciation
The acquisition cost of buildings and their components, fleet, equipment,
intangible rights and long-term expenditure is capitalised, and it is
depreciated according to plan over its expected useful life.
The estimated depreciation periods of the various commodity groups are as
follows:
Intangible assets
• Renovations of apartments3–10 yrs
• Design expenses of ICT systems3–10 yrs
Real estate
• Residential, office and hotel buildings 40-50 yrs
• Department store buildings and other store buildings30-40 yrs
• Industrial buildings, warehouses and similar buildings 20-30 yrs
• Building components, reducing balance method25%.
Fleet and equipment
• Office machinery and equipment, reducing balance method 25%, or
on a straight-line basis over 3–5 yrs.
The impact of material renovations of buildings on their holding period is
assessed separately. Revaluations recognised as income are depreciated
according to the holding period of the item in question.
The accumulated difference between the total depreciation in the accounts
and the planned depreciation is recorded on the balance sheet under
liabilities in the item ‘Accumulated appropriations, accumulated depreciation
difference’, and the increase or decrease in the depreciation difference
during the financial year is shown separately in the profit and loss account.
11.2.8 Accumulated appropriations
Accumulated depreciation difference
See “Depreciation”.
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184
Taxation-based provisions
Provisions recognised in profit or loss have been made on the basis of fiscal
and accountancy legislation.
11.2.9 Obligatory provisions
Other provisions deducted from income include provisions for default interest
for outstanding claims.
11.2.10 Direct taxes
In the profit and loss account, direct taxes are shown on an accrual basis.
11.2.11 Deferred tax liabilities and deferred tax
assets
Deferred tax liabilities and deferred tax assets pertaining to timing
differences between taxable income and accounting profit, and to other
temporary differences, are shown in the notes to the financial statements.
The notes show the deferred tax liability calculated on valuation differences
that is considered likely to materialise during the following year.
11.2.12 Other creditors 
Liabilities other than the technical provisions are shown in the balance sheet
at nominal value.
11.2.13 Description of pension cover and of the
accrual of pension expenditure
The statutory pension cover of staff is arranged through TyEL insurance.
Any possible supplementary pension cover, under which the benefits include
an old-age pension, a disability pension, a survivors’ pension, and a death
benefit for family members, is arranged through insurance. As a general rule,
the supplementary pension cover accrues a pension annually at a rate of 0.2
per cent of the pensionable annual income calculated under the Employees
Pensions Act.
The retirement age of the Managing Director of LocalTapiola General is
determined on the basis of employee pension legislation. The retirement age
of full-time Board members with an employment relationship with
LocalTapiola General is determined on the basis of employee pension
legislation, unless a retirement age of 63 years has been specifically agreed.
The retirement/resignation age of other directors is in accordance with the
employee pension legislation in force from time to time.
Pension insurance contributions are recognised as an expense on an accrual
basis.
11.2.14 Technical provisions, non-life insurance
Provision for unearned premiums
The provision for unearned premiums includes that portion of the premiums
written accrued in the financial year and previous years for which the related
risk concerns time after the financial year. The fees of future reinsurance are
also amortised similarly. The amount of the provision for unearned premiums
is calculated in accordance with the pro rata parte temporis principle.
Deferred acquisition costs of insurance contracts are not deducted from the
provision for unearned premiums, and the provision for unearned premiums
does not include any provisions for unexpired risks.
Compounding is applied in calculating the provision for unearned premiums
for perpetual forest and perpetual fire insurance, in which case a technical
rate of interest of 4.5 per cent is employed.
Provision for claims outstanding
The provision for claims outstanding includes the compensation amounts
payable by the company after the financial year for losses and other insured
events that have occurred during the financial year or earlier. The provision
for claims outstanding includes the equalisation provision. The equalisation
provision is a buffer calculated for high-claim years, intended to ensure the
adequacy of technical provisions also in the event of unfavourable
fluctuations in the factors which materially affect the technical provisions.
The Financial Supervisory Authority confirms the calculation rules for the
equalisation provision on a company-specific basis.
In calculating the provision for outstanding pension‑type liabilities, including
unknown claims, a technical rate of interest of 1.5 per cent is applied.
In calculating the provision for outstanding pension‑type liabilities, we use the
non-life insurance reference mortality rate K2021, which has been prepared in
cooperation by the Finnish Workers’ Compensation Center and the Insurance
Centre.
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185
11.2.15 Technical provisions, life insurance
Technical provisions
The technical provisions comprise the provision for unearned premiums and
the provision for claims outstanding. The equalisation provision is included in
the provision for claims outstanding.
For risk policies, the provision for unearned premiums is equal to the portion
of the premiums written which is attributable to time after the balance sheet
date, net of any premiums that remain uncollected.
For savings-type insurance contracts, the provision for unearned premiums is
calculated as the capital value of the future benefits, contract management
fees and future premiums. In calculating the capital value, we mainly use the
pricing rate, mortality, and assumed operating expenses.
The provision for claims outstanding is the debt arising from the claims
incurred and claim settlement costs resulting from insured events, whether
known or unknown, that have already occurred. The provision for claims
outstanding consists both of case reserves for individual claims and of
reserves for statistically estimated claims. The technical provisions include risk
adjustments by which the mortality or morbidity assumption of insurance
contracts has been modified to reflect the level observed to deviate from the
pricing used.
Decided customer bonuses are taken into account when calculating the
technical provisions. The technical provisions include the provision for future
additional benefits, which is used primarily for paying future customer
bonuses to ensure continuity.
Discount rate for the technical provisions
The maximum discount rate used to calculate the technical provisions for
contracts other than unit-linked contracts is limited to the interest rate
applied in the pricing of the policy concerned. Policies feature savings with a
guaranteed interest rate of 0.0–4.5 per cent. This insurance portfolio is
subject to interest rate adjustments by which the discount rate of the
technical provisions has been reduced to a level that is lower than the
guaranteed interest rate credited to savings.
The provision for claims outstanding is not discounted for life insurance other
than pension insurance.
As for unit-linked insurance contracts, the technical provisions are
determined in accordance with the value development of the investment
assets linked to them.
11.3 Changes in the accounting principles
affecting the comparability of the result for
the financial year with the result for the
previous financial year
11.3.1   Changes in the calculation of the non-life
insurance technical provisions
In 2025, the calculation of the motor liability claims reserve was reformed.
These changes had a EUR -42.7 non-recurring effect on the gross motor
liability claims reserve at LocalTapiola Group, and at LocalTapiola General
this was EUR -3.6 million. The changes had a EUR -10.5 million effect on the
share of internal reinsurance.
The methods for calculating the claims handling provision for medical
expenses in voluntary lines was updated in 2025. This calculation change had
a EUR -4.7 non-recurring effect on the claims reserve at LocalTapiola Group,
and at LocalTapiola General this was EUR -0.8 million.
The Patient Insurance Centre updated the actuarial principles underlying
public patient insurance: at LocalTapiola General these changes reduced
claims incurred and direct premiums written by EUR 1.6 million. Meanwhile,
the changes made to the actuarial principles underlying private patient
insurance reduced the claims reserve at LocalTapiola General by EUR 0.7
million on a non-recurring basis. In addition, the actuarial principles of the
Motor Insurers’ Centre were also updated in 2025, which reduced the claims
reserve at LocalTapiola Group by EUR 0.8 million on a non-recurring basis,
dividing between LocalTapiola General and the regional companies. In
addition, a change in the actuarial principles employed by the Environmental
Damage Pool resulted in a slight increase in the claims reserve at
LocalTapiola General. 
For some group companies, the changed calculation principles also had an
impact on the equalisation provision. In 2025, the combined total impact of
these changes increased the equalisation provision at LocalTapiola Group by
EUR 37.3 million and at LocalTapiola General by EUR 15.6 million. 
In the 2024 financial year, changes were also made to the calculation of the
technical provisions. The technical rate of interest was raised in 2024 from 1.2
per cent to 1.5 per cent, and the resulting impact was seen as a EUR 69.8
million non-recurring total decrease in the claims reserve, and at LocalTapiola
General this was EUR 30.2 million. The collective calculation coefficients of
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186
the claims reserve of the voluntary lines were updated in 2024, which
increased the claims reserve at LocalTapiola Group on a non-recurring basis
by EUR 5.0 million and at LocalTapiola General by EUR 0.4 million. In
addition, the Patient Insurance Centre updated the actuarial principles
underlying public patient insurance: at LocalTapiola General, these changes
reduced the claims incurred and direct premiums written by EUR 1.9 million.
Meanwhile, the changes made to the actuarial principles underlying private
patient insurance reduced the claims reserve at LocalTapiola General by EUR
0.3 million on a non-recurring basis. In addition, the actuarial principles of the
Motor Insurers’ Centre were also updated in 2024, which reduced the claims
reserve at LocalTapiola Group by EUR 1.6 million on a non-recurring basis,
dividing between LocalTapiola General and the regional companies. In
addition, a change in the actuarial principles employed by the Pharmaceutical
Insurance Pool resulted in a slight decrease in the claims reserve at
LocalTapiola General. For some group companies, the changed calculation
principles underlying the provision for claims outstanding also have an impact
on the equalisation provision. In 2024, the combined total impact of these
changes increased the equalisation provision at LocalTapiola Group by EUR
36.0 million and at LocalTapiola General by EUR 12.6 million. 
11.3.2 Changes affecting the comparability
of the life insurance business
In terms of the calculation of technical provisions, no changes affecting
comparability were made to the accounting principles.
11.3.3 Other changes affecting comparability
Changed recording method for salvaged and repossessed damaged
goods
The cash flows from salvaged and repossessed damaged goods already
reduce the claims reserve, which is why the specific recording of these items
in the general ledger has been discontinued as of the 2025 financial year.
11.4 Calculation of key figures
11.4.1   General key figures describing financial
development
Non-life insurance turnover
= Premiums earned before reinsurers’ share
+ Net investment income in the profit and loss account
+ Other income
Life insurance turnover
= Premiums written before reinsurers’ share
+ Net investment income in the profit and loss account
+ Other income
Performance analysis
Non-life insurance
Premiums earned
Claims incurred
Operating expenses
Other technical income and expenses
Balance on the technical account before change in equalisation provision
Life insurance 1
Premiums written 1
Investment income and expenses as well as revaluations, revaluation
adjustments and changes in value 1
Claims paid 1
Change in technical provisions before additional benefits (customer benefits)
and change in the equalisation provision 1
Operating expenses 1
Other technical income and expenses 1
Technical result before (additional benefits) and change in the equalisation provision
1
Non-life insurance investment income and expenses as well as
revaluations, revaluation adjustments and changes in value
Other income and expenses
Share of associated undertakings' profit and loss 1
Operating profit or loss
Change in the equalisation provision, non-life insurance
Change in the equalisation provision, life insurance 1
Additional benefits (customer benefits) 1 and 2
Profit or loss before appropriations and taxes
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187
Appropriations
Income taxes and other direct taxes
Minority interests 1
Profit or loss for the financial year
1 Applies to the consolidated financial statements
2 Additional benefits include interest in excess of the guaranteed interest rate
Total result
= Operating profit or loss
+ Change in off-balance-sheet valuation differences, fair value reserve and
revaluation reserve
The report of the Board of Directors uses the term ‘operating result’ to refer
to operating profit (loss), and the term ‘result for the financial year’ to
describe the profit (loss) for the financial year.
Net investment income on capital employed (at fair value)
Net investment income at fair value in proportion to capital employed is
calculated for each type of investment and for the entire investment
portfolio, taking into account the cash flows during the period.
Income for the period is calculated using the so-called modified Dietz method
(a time- and money-weighted method) in such a way that the capital
employed is calculated by adding to the market value of the start of the
period the cash flows during the period, weighted by the relative proportion in
the length of the entire period that remains from the transaction date or
from the middle of the transaction month to the end of the period. 
Analysis of net investment income
= Direct net investment income in accounting
+ Changes in value in accounting
+ Change in valuation differences
Investment allocation at fair value
Unit-linked insurance investments are not included in the investment
allocation. Of the fixed-income funds, long-term funds are included in bonds
and short-term funds in money market investments.
Investments in mutual funds and in other comparable collective investment
undertakings that invest in land, buildings and real estate undertakings are
included under investments in land and buildings.
The mathematical valuation differences included in derivative accruals, as
well as the premia included in provisional premiums, are allocated to the
underlying asset item.
The ‘Other money-market instruments and deposits’ item of the report
includes the ‘Cash at bank and in hand, settlement receivables and liabilities
and collateral for derivatives’ balance sheet item..
Return on total assets without unit-linked policies, % (at fair value) 
Operating profit or loss
+ Interest expenses and other financial expenses
+ Unwinding of discount rate
+ Revaluation/reversal entered in the
  revaluation reserve/current value reserve
+ Change in the valuation differences of investments
= x100
Balance sheet total
- Technical provisions for unit-linked insurance
+ Valuation differences of investments
The divisor of this key figure is calculated as the average of the balance sheet
values for the financial year and for the previous financial year.
In non-life insurance, unwinding of the discount rate refers to the impact of
the dissolution of the discounted provision for claims outstanding on the
company’s claims incurred, when it discounts pensions in the nature of capital
and/or other possible amounts included in the provision for claims
outstanding. It is calculated by multiplying the discounted provision for claims
outstanding at the beginning of the year by the technical rate of interest
applied at the end of the previous year.
In life insurance, unwinding of the discount rate refers to the technical rate of
interest credited to insurance policies during the year, plus/minus any possible
changes in the supplementary provision for the technical rate of interest.
Under this key figure, other financial expenses include the items, other than
interest expenses, that are due to liabilities, such as exchange gains and
losses from interest-bearing liabilities recognised in the profit and loss
account items.
Average no. of personnel during financial year
This key figure is calculated as the average of the number of personnel at the
end of each calendar month. Any possible part-time nature of employment of
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188
the persons employed is taken into account in the number of personnel. All
persons receiving a wage or salary during the financial year are included in
personnel.
11.4.2 Financial development key figures,
non-life insurance
Premiums written
= Premiums written before reinsurers’ share
Loss ratio
Loss ratio, %
Claims incurred
=
x100
Premiums earned
Loss ratio (excl. unwinding of discount rate), %
=
x100
Claims incurred (excl.unwinding of discount rate)
Premiums earned (excl.unwinding of discount rate)
This key figure is calculated after reinsurers’ share.
Expense ratio
Operating expenses
=
x100
Premiums earned
Combined ratio
Combined ratio, %
= Loss ratio + Expense ratio
Combined ratio (excl. unwinding of discount rate)
= Loss ratio (excl.unwinding of discount rate) + Expense ratio
Risk ratio (report of the Board of Directors)
Risk ratio, %
Claims incurred (excl.claims management expenses)
=
x100
Premiums earned
Risk ratio (excl. unwinding of the discount rate), %
Claims incurred (excl.claims handling expenses
excl.unwinding of discount rate)
x100
=
Premiums earned (excl.unwinding of discount rate)
Cost ratio, % (report of the Board of Directors)
Operating expenses + Claims management expense
x100
=
Premiums earned
11.4.3 Financial development key figures, life
insurance
Premiums written
= Premiums written before reinsurers’ share
Expense ratio, %
Operating expenses before the change in
deferred acquisition costs of insurance contracts
+ Claim settlement costs
x100
=
Loading income (and balance sheet total)
The numerator is separately prorated both to loading income and to balance
sheet total. According to the accounting principles, loading income is an item
intended for covering operating expenses. Loading income includes all
expense loadings. Operating expenses do not include any commissions on
reinsurance.
Operating expenses are total operating expenses in relation to the balance
sheet total. Balance sheet total is the opening balance sheet total.
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189
12 Notes on risk management
12.1 General information on the
organisation of risk management
Risk management is active and proactive activity that identifies, assesses,
limits, utilises and monitors hazards to business operations as well as new
opportunities arising from evolving external and internal conditions, or from
LocalTapiola’s own strategic intent. The aim is to promote the continuity of
the financial security of customers and clients and to support the
achievement of operational and financial targets. In accordance with the
principles of responsible business conduct, the group reliably manages risks
and provides information on risks and risk management to customers, clients
and other stakeholders.
At LocalTapiola, risk management is guided by the risk management policy
approved by the Boards of Directors of the LocalTapiola Group companies.
The policy sets out the general principles that apply as permanent guidelines
to the organisation of risk management. The policy specifies the concepts,
main areas and processes, as well as the responsibilities for the
implementation and supervision, of risk management. The risk management
policy is updated annually or whenever there are any significant changes in
the business conditions.
In risk management, the main areas and risk categories are:
Financial risks
•Prudential management risks
•Market risks
•Credit risks
•Liquidity risks
•Concentration risks
•Insurance risks.
.Operational risks
•Business planning risks
•Process risks
•Systemic risks
•Personnel risks
•Legal risks
•Event and loss risks.
Operating environment and strategy risks
•Risks associated with the general operating environment
•Risks associated with changes in the markets and customer
behaviour
•Risks caused by competition and competitors
•Risks associated with strategic choices
•Group-level special risks.
LocalTapiola Group manages sustainability risks as part of comprehensive
risk management. Sustainability risk means an environmental, social or
governance event or condition that, if materialised, might have a negative
impact on the value of an investment, the value of a liability, or the
company’s income or reputation.
The identification and assessment of risks are based on a CSRD-compliant
double materiality assessment that addresses not only LocalTapiola Group’s
impacts on the environment and society, but also the financial effects,
relating to sustainability topics, that have an impact on the activities of
LocalTapiola Group. Sustainability reporting complies with the ESRS
standard, which covers material risks relating to the environment, society and
governance. The Board of Directors of LocalTapiola General annually
approves the outcome of the double materiality assessment. In addition to
the double materiality assessment, as part of operational risk surveys, we
identify sustainability risks to which LocalTapiola Group and the group
companies are exposed. Companies’ operational risk surveys are reported to
the Boards of Directors, and the group-wide sustainability risk survey is
reported to the group’s Risk Management Committee. As a whole,
sustainability risk management supports LocalTapiola’s long-term objectives
while enhancing the ability to respond to the expectations that customers
and stakeholders have for sustainability.
12.2 Organisation and responsibilities of risk
management
The Board of Directors has overall responsibility for organising risk
management. The Board defines the risk management targets, risk appetite,
risk-taking limits, responsibilities, metrics and supervision principles. The
Board annually confirms the plans that deal with risk management, ensures
that they are taken into account in the operational plans and monitors the
implementation of and compliance with these plans. Additionally, on a regular
basis, the Board also monitors the state of risk management and the
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190
development of key risks. The Board has established a separate Audit and
Risk Management Committee, tasked, for example, with assisting the Board
in risk management-related matters.
The delegation of risk management responsibility and the duties of the
various parties can be described using the concept of three lines of defence.
Every line of defence, and every involved entity, has a role to play in the risk
management system.
The managing directors and other company executives constitute the first
line of defence, and they are responsible for the practical preparation,
implementation and monitoring of risk management. The rules of procedure
of the companies’ Management Groups, and the rules of procedure of the
various risk management-related committees, define the duties of these
organs with respect to the management and supervision of risk. The business
units are responsible for identifying risks that relate to their own business
operations and for implementing the related risk management measures. All
employees have an obligation to report any risks which they observe and any
risk management areas needing improvement which they identify.
The second line of defence consists of the support and control functions. Risk
management supervision is always the responsibility of an entity other than
the one responsible for the operational activities. The actuarial, risk
management and compliance functions assist the Board of Directors and
management in risk management supervision.
As the third line of defence, internal audit supports superiors in fulfilling their
supervision duty by evaluating the state of internal control within the
business functions and by producing to the management and to those in
charge of the functions information and proposals for measures to make
supervision more effective. In addition, the auditing function oversees the
implementation of risk management.
As the Board of Directors of the ultimate parent company of LocalTapiola
Group, the Board of Directors of LocalTapiola General is responsible for
arranging and supervising risk management and prudential management at
the group. The group’s Risk Management Committee plays a key role in
drafting the risk management policies of the group and in monitoring and
supervising the group’s risks. The group’s ALM Committee is a decision-
making organ which manages, monitors and develops asset liability risks,
reporting directly to the Board of Directors. The Committee is responsible for
ensuring that asset liability risk management is organised in an appropriate
manner and that capital is used efficiently. The Board of Directors appoints
the Investment Management Group, which is responsible for the practical
organisation of the investment business and for the operational supervision
of market risks.
The risk management function is tasked with assisting the companies’ Boards
of Directors and other functions in order to ensure effective risk
management. This function monitors, as a whole, the risk profile of the
companies and how the risk management system functions, and it reports on
risk exposure. In addition, the function assists the Board with risk
management issues.
12.3 Reporting of risks
As part of the risk management process, the company’s internal risk
management reporting aims to provide the Board of Directors and senior
management with a comprehensive view into the risk position of the group
and to ensure that the risk management measures carried out align with the
organisation’s strategic objectives. The accuracy of information is ensured by
sufficiently up-to-date and frequent reporting, regular balancing routines and
timely documentation that includes information on the accounting methods
and systems used. In order to ensure efficient risk management, the reporting
functions and decision-making of the business functions are organisationally
differentiated from one another.
12.4 Insurance risk management and
processes
12.4.1 Non-life insurance
In the non-life insurance business, the main insurance risks relate to the
pricing and underwriting of insurance products, inflation, interest rate
fluctuations, mortality rate changes, occupational diseases and reinsurance
covers.
Pricing risk means that premiums are insufficient to cover the claim payments
and operating expenses arising from insurance contracts. The key pricing risks
are associated with the adequacy of the risk premia of the tariff models used,
as well as with the profitability monitoring and claim monitoring processes
and how these processes are taken into account in the pricing of insurances
and in the underwriting policy.
The underwriting policy defines the permitted insurance risks. The Board of
Directors approves the profitability targets for the insurance business, and
the pricing strategy guides risk-based and fair pricing. The business units are
responsible for achieving the targets set based on the underwriting policy and
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191
the pricing strategy. Risks connected with pricing and with the level of
premiums are managed by continuously developing the reporting and
calculation systems so as to enable any necessary changes to be made in the
level of premiums more rapidly. Insurance risks which are particularly high are
underwritten to a limited extent or not at all.
Customer risks are managed by customer selection guidelines and by
monitoring compliance with these guidelines, and by the use of the claims
register and, for example, taking advantage of the work of insurance
investigators. Effective customer selection aims to keep credit losses and
claim costs at the targeted level. Large risk concentrations are managed by
reviewing these concentrations on a regular basis, carried out by risk experts.
When striving for improved customer selection and risk-based pricing, one
important tool are the underwriting and pricing authorisations which the
business units maintain. The credit file and background details of customers
are checked before customer selection.
The group’s Investigation Team investigates, combats and prevents insurance
crime against the insurance business. The settlement of unclear claims is an
important part of the work of the Investigation Team. More serious cases are
handed over to the relevant authorities.
Reserve risk means that the amount reserved in the technical provisions is
insufficient to settle the claims becoming payable after the year in which the
provision is made. Related subrisks include inflation risk, interest rate risk,
longevity risk and occupational disease risk.
Inflation risk is present, for example, in long-term-cash-flow claims related to
the medical treatment and rehabilitation of bodily injuries. This risk
materialises if, due to inflation, the level of claims payable increases beyond
the level assumed in pricing and in calculating the provision for claims
outstanding, in which case the premiums and the provision for claims
outstanding prove to be insufficient.
Interest rate risk and longevity risk mainly relate to long-term provisions for
outstanding pension‑type claims under motor liability insurance and workers’
compensation insurance policies. When calculating provisions, cash flows are
discounted by the technical rate of interest. Interest rate risk materialises if,
in the future, the assets covering the provisions fail to generate a return at
least equal to the technical rate of interest. Longevity risk refers to the
uncertainty in estimating future mortality trends related to determining the
provision for claims outstanding. Longevity risk materialises if, in the coming
years, the mortality rate proves to be lower than anticipated, in which case
pensions must be paid out longer than expected.
Occupational disease risk concerns only workers’ compensation insurance.
Occupational disease means any health hazard that relates to an
employment relationship in the manner laid down in the Workers’
Compensation Act, usually caused as a result of long-term exposure to a
physical, chemical or biological agent and manifesting several years after
exposure. Occupational disease risk materialises if more occupational
diseases occur than is anticipated, in which case premiums and the provision
for claims outstanding prove insufficient.
The principles for calculating the accounting technical provisions determine
the rules for establishing technical provisions for the different insurance
classes. The technical rate of interest (1.5%) employed to discount the
provision for claims outstanding is determined in such a way that it is not to
exceed the level of prudent investment income from the assets covering the
provision over the estimated period during which the claims will be settled.
The calculation principles are prudent with respect to interest rate, mortality
and the other criteria on the basis of which they are determined. The
adequacy of technical provisions is monitored annually, and the principles are
revised where necessary. In solvency calculation, the valuation of technical
provisions differs from valuation undertaken for accounting purposes. In
solvency calculation, the valuation of technical provisions strives for market
conformity, for example by discounting the technical provisions using the risk-
free interest rate term structure.
The accounting provision for unearned premiums is determined as a ‘deferred
provision’ in accordance with the pro rata rule. The pension-type claims
liability is assessed using the 2021 mortality model developed in cooperation
by the Workers’ Compensation Center and the Insurance Centre, under which
model pensioner mortality is affected by age, gender, year of birth and
insurance line. Large claims exceeding a certain euro threshold are reserved
on a claim specific basis as part of the provision for claims outstanding. The
provision for other known and unknown claims outstanding (collective
reserve) is determined statistically using standard actuarial methods. To
increase prudency, a risk margin is reserved as part of the collective reserve. A
provision for future claims handling expenses is determined as a relative
proportion of the amount of the collective claims liability.
Reinsurance cover risk relates to the trustworthiness of reinsurance
enterprises.
Reinsurance cover risk is managed with the Board of Directors-confirmed
reinsurance programme and reinsurance cover underwriting policy. When
designing the reinsurance covers and reinsurance programmes, account is
taken of the insurance portfolio structure, the different volumes of insurance
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192
classes, any possible risk accumulation, estimates of maximum claims, and
the solvency position. Based on these factors, retention limits are set for each
insurance class that define the maximum amounts to be retained at own risk
with regard to individual risks.
Reinsurers are approved only if they are sufficiently solvent companies in
terms of their credit rating. The majority of reinsurance is underwritten by
companies with a Standard & Poor’s credit rating of ‘A’. Reinsurance covers
are acquired in a diversified manner from a sufficiently large pool of
reinsurance providers on the basis of the limits set by the Board of Directors.
Through close cooperation between direct insurance and reinsurance, and by
implementing all necessary changes to direct insurance contracts and offers
in a timely manner, steps are taken to prepare against risks connected with
the availability of reinsurance and the imperviousness of the covers.
12.4.2 Life insurance
In the life insurance business, the main insurance risks include the risks
associated with technical provisions and the customer behaviour-related risks
of termination of contracts and interruption of the payment of premiums.
Risks related to technical provisions include the following: the interest rate
risk connected to the technical rate of interest and to surrenders; and risks
relating to mortality, longevity and morbidity.
Interest rate risk is managed through the use of interest rate instruments in
the investment portfolio, by maintaining a sufficiently high solvency ratio, by
lowering the imputed technical rate of interest of insurance portfolios by
increasing provisions, and by applying surrender sanctions in products. Where
necessary, the company can substantially reduce the interest rate risk
affecting the balance sheet by aligning fixed-income investments more
closely with the maturity profile of technical provisions and/or by using
interest rate derivatives.
Mortality, longevity and morbidity risks are managed through careful product
design, underwriting, and by reinsuring liabilities that exceed the selected
retention level and the accumulation of claims arising from catastrophes.
Underwriting applies the generally employed life insurance underwriting
guidelines, the established underwriting policy and related guidelines. Where
appropriate, financial underwriting is also carried out in order to confirm that
there is an insurable interest. The rate and development of insureds’ observed
mortality and morbidity are monitored annually, and provisions are
supplemented as needed. With regard to sickness insurance, the option exists
to increase premiums to reflect increased claims expenditure.
In the accounting technical provisions, the technical rate of interest used to
calculate the with-profit technical provisions varies between zero and 4.5 per
cent, taking into account the discount rate reserve. Pension insurance
mortality assumptions are material in view of the adequacy of technical
provisions. The mortality applied in defined-benefit pension insurance is
based on the group pension mortality determined in life insurers’ K2012
mortality study and on the mortality model applied in TyEL insurance. In
defined-contribution pension insurance, the mortality criteria are based on
the generational mortality applied in employment pension insurance and on
the group pension mortality determined in life insurers’ K2012 mortality
study. Individual pension insurance uses the E87 mortality from 1987 and the
gender-independent mortality estimated based on the company’s own
portfolio.
12.5 Investment risk management and
processes
12.5.1 Market, counterparty and liquidity risks
Investment risks include market risks, credit and counterparty risks, and
liquidity risks.
Market risk means changes in the values of assets and liabilities that are due
to changes in financial variables such as interest rates, exchange rates, share
prices or prices of immovable property. Likewise, concentration risks are
included in market risks. Concentration risks arise due to excessive
concentration of investments, for example, to individual counterparties,
geographically or by sector.
Credit and counterparty risks mean the risk of a counterparty of a loan,
transaction, derivative contract or similar not being able to meet its
contractual obligations. 
Liquidity risk refers to the risk that a company does not have sufficient cash
or, without significant losses, assets that can be converted into cash quickly
enough to meet its financial obligations. Funding liquidity risk arises from
mismatch between funding needs and funding sources, while market liquidity
risk refers to the risk of failure to convert investment assets into cash quickly
enough without significant losses.
The company’s Board of Directors decides on the objectives of investment
activities and on the taking of investment risks, taking into account the
company’s solvency and strategic goals, the economic environment and the
requirements imposed on investment activities by insurance liabilities. The
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strategic asset allocation and its ranges presented in the investment plan
define the company’s targeted level of investment risk-taking, its risk
tolerance and its risk profile. In addition, the investment plan also describes
the other restrictions on investment and on investment risk-taking, and it sets
out the risk and prudential management control and reporting processes and
the measures for ensuring that risk-taking and solvency remain within limits
determined by the targets.
The solvency traffic-light system described in the Joint Liability Agreement
concluded between the group’s non-life insurance companies (excl. Finnish
P&C Insurance Ltd) is a crucial tool for steering the companies’ solvency and
market risks. The system is based on Solvency II regulatory-model solvency,
which is classified into traffic-light zones for which measures to be taken by
the management have been determined. The green zone means that solvency
is at the desired level and asset managers may operate within their mandates
as normal. The light-green zone means that the monitoring of solvency and of
market risks should be stepped up. In the yellow zone, it is not acceptable to
actively increase any market risks. In the red and black zone, active measures
are required to mitigate market risks and to boost solvency.
The ALM (asset liability management) function of the group’s insurance
companies drafts proposals for the companies regarding the strategic asset
allocation of investments. The ALM function evaluates the suitability of the
company’s chosen strategic asset allocation, using, for example, various
stress tests, and submits a formal opinion on this to the companies. The
group’s ALM Committee monitors the market and asset liability risks to which
the companies are exposed, issuing related recommendations as necessary.
Given that the strategic allocation represents long-term objectives, it is
revised only for weighty reasons, which may relate, for example, to changes
that occur in the following: the economic environment, the company’s
solvency, the insurance portfolio, long-term return and risk expectations for
investments, the company’s customer bonus policy or its solvency strategy,
etc.
On at least an annual basis, or where necessary, the company’s
mathematician-in-charge draws up for the company’s Board of Directors a
report required by regulation on the requirements imposed by the technical
provisions, liquidity and solvency on risk management and investments.
The Risk Management Services unit of the group is responsible for identifying,
measuring, controlling and reporting on investment risks as part of the risk
management function of the company’s second line of defence. Risks are
measured and monitored in accordance with the Solvency II regulatory model,
as well as by widely-used methods including stress testing and scenario
analysis. Risks are managed by the investment and risk-taking limits set in the
investment plan, which also ensure a sufficient diversification of investments.
A key risk-mitigation measure is to adjust the strategic asset allocation
towards a lower‑risk profile, which requires deliberation by the company’s
Board of Directors. Derivative contracts may also be used for risk‑mitigation
purposes within the framework of the existing derivatives strategies. Asset
Management is responsible for the portfolio management of listed fixed-
income and equity investments and may, within the framework of the
strategic allocation, shift to a lower-risk tactical allocation when it considers
this justified.
Changes in interest rates influence the values of investments, interest rate
derivatives and liabilities that are sensitive to interest rate movements. This
balance-sheet interest rate risk is managed by taking into account the
structural interest rate risk of liabilities when defining the strategic asset
allocation. Interest rate derivatives may be used to manage interest rate risk.
Credit risk is managed through a standard, comprehensive and careful
analysis during the credit-granting process, by including collaterals and
covenants in the credit terms, through continuous monitoring of exposures
and by ensuring sufficient diversification of the credit portfolio.
The use of bank counterparties is monitored and restricted at group-wide
level, taking into account factors such as the size and credit rating of the
counterparties and in such a way as to ensure that exposures are sufficiently
diversified. Counterparty risk arising from reinsurance is managed in
accordance with the reinsurance programme.
Ensuring adequate liquidity even under adverse conditions, both in the short
and the long term, is one of the key factors to be considered when defining
the strategic asset allocation. Regular liquidity monitoring covers both the
insurance business and the investment business, while also considering both
funding liquidity and market liquidity perspectives.
Derivatives may be used only for risk‑mitigation purposes or to enhance the
efficiency of portfolio management. The use of derivatives is based on the
relevant derivatives strategy reviewed by the group’s ALM Committee, and
the strategy sets out, among other things, the purpose and objectives of
using derivatives and the related limits, accounting treatment, liquidity
management and monitoring process. The derivatives strategies are
described in the investment plan or its appendices.
The impact of long-term market scenarios on the company’s solvency is
examined in the Own Risk and Solvency Assessment (ORSA), prepared
annually, and in quarterly internal prudential reporting.
LocalTapiola General |  Financial statements for 2025
194
12.6 Operational risk management and
processes
Operational risk refers to the risk of loss resulting from inadequate or failed
internal processes, personnel, systems and external factors. Legal risks and
event/loss risks are included in operational risks. Operational planning risks
refer to the risks associated with annual-plan choices, target setting and
business transitions. The basic position in the management of operational
risks is to attempt to prevent the materialisation of risks and to minimise the
harm they can cause.
The main elements of operational risk management are the comprehensive
identification, assessment and reporting of risks across the various
organisations and risk areas, as well as ensuring the quality and accuracy of
operations through supervision and control measures.
Operational risks are identified through a standard risk-mapping procedure
annually as part of the annual planning process and whenever there is a
material change in the risk situation. The risk management measures
identified in the surveys are incorporated into the annual plans of the
respective business units. In addition, a separate risk assessment is carried
out for each initiative, project and significant business change.
Supervision (control) measures embedded in the processes ensure the
accuracy and quality of operations. As part of operational risk management,
materialised risks, near misses and the necessary follow-up actions are
recorded in the group’s risk event register. The reporting of operational
disruptions and errors, and losses caused by operational risks, to the relevant
authorities is carried out in compliance with the applicable requirements.
Business continuity management is ensured through the regular updating and
testing of continuity and contingency plans. The group companies are
responsible for the proper organisation of their operations, for the
obligations arising from them and for business continuity management,
including with respect to all outsourced activities.
In addition, separate procedures and guidelines have been established for the
management of operational risks concerning, among other things:
•the management of process risks
•the management of system risks
•the management of legal risks
•the management of security risks
•the management of data security risks
•the management of project risks
12.7 Management of operating environment
and strategy risks
Risks associated with the operating environment and strategic intent include,
among others, risks arising from changes in the general operating
environment, markets and customer behaviour; competition and competitors;
our own strategic choices; operating as a corporate group; and group-level
investments.
Risks associated with the operating environment and strategic intent are
identified and their significance is evaluated annually in conjunction with the
annual planning process. This is undertaken through self-assessment. In order
to reduce and mitigate the identified risks and to exploit opportunities, the
responsible parties plan and implement risk management measures, which are
carried out as part of the annual plans. An essential part of managing
strategic risks is the risk management work carried out in the context of
strategic development initiatives. The risk situation is reviewed on a regular
basis by the project steering groups. Risks related to strategy implementation
are managed by defining strategy scorecards and through regular monitoring
12.8 Principles for group-wide risk
management
Risks associated with the areas that are key and critical to the activities of
LocalTapiola Group are monitored and assessed on a regular basis. Group-
wide risk management methods focus particularly on those identified risk
areas that affect all group companies, the performance of their statutory
obligations or activities conducted at the customer interface. Examples of
group‑wide risk assessments include the group’s compliance risks; risks related
to money laundering, terrorist financing and sanctions; ICT risks; data
protection risks; reputational risks; and risks associated with operating as a
corporate group..
12.9 Risk management at the group’s non-
insurance companies
The group’s non-insurance companies apply the same risk management
principles as the insurance companies of the group, insofar as those principles
are not specifically related to the operations or line of business of an
LocalTapiola General |  Financial statements for 2025
195
insurance company. The Boards of Directors bear the overall responsibility for
risk management at their own company. Executive management is
responsible for maintaining and developing the risk management process in
collaboration with the group’s risk management function. The following is a
more detailed description of risk management at LocalTapiola Asset
Management Group.
Risk management at LocalTapiola Asset Management Group is based on
current legislation and the regulations and guidelines issued pursuant to
current legislation. The group complies with the risk and prudential
management principles of LocalTapiola Group, and the group’s risk
management process is part of the risk management process of LocalTapiola
Group.
The Board of Directors of Asset Management has overall responsibility for the
organisation of the company’s risk management. In the risk management
plan approved annually, the Board defines the objectives and limits for risk-
taking, and it is responsible for organising risk management, regularly
monitors the level and development of risk-taking, and decides on risk
management measures when necessary. On an annual basis, Asset
Management’s risk management function submits to the company’s Board a
statement on the implementation of the risk management plan. The risk
management function supports the business in the implementation of the risk
management process and develops risk management capabilities.
The executive management and business units of Asset Management are
responsible for ensuring that operational risk management complies with the
law and the LocalTapiola risk management frameworks. Internal audit
supports management and the Board in the development of control and risk
management.
The risk management process includes a risk survey, carried out as part of the
annual planning cycle, that evaluates the financial and operational risks to
which the group may be exposed as well as the operating environment and
strategy risks. The risks assessed as most significant for operations are
recorded in the risk management plan, and risk management measures are
defined for them.
The prudential management process of LocalTapiola Asset Management
Group consists of Pillar I solvency calculation and reporting under the
Investment Firms Regulation and Directive (IFR/IFD) and of the group’s own
internal capital and risk assessment model (ICARA). The own risk assessment
deepens the Pillar I calculation, taking into account the risks to business that
are not covered by the Pillar I calculation. These include, for example, risks
associated with the operating environment and changes therein, which may
affect solvency by way of the group’s financial performance. In the course of
annual planning, the Board determines LocalTapiola Asset Management
Group’s risk appetite by setting target levels for the ratio of own funds to the
capital requirements, as well as for the quality of own funds. Solvency
calculation is carried out and the results are reported to the Board on a
quarterly basis or more frequently, and as needed.
LocalTapiola General | Report of the Board of Directors and Financial statements for 2025
196
Signatures for the report of the Board of Directors and financial statements
In Espoo, 10 March 2026
Sari Heinonen Eeva Ahdekivi Jari Eklund
Chair of the Board of DirectorsDeputy Chair of the Board of Directors
Birgitta ForsströmOlli Holmström Kimmo Hyvärinen
Jussi TolvanenTimo VuorinenAntti Pulkkanen
Managing Director
LocalTapiola General | Report of the Board of Directors and Financial statements for 2025
197
Auditor’s note
A report has been issued today on the audit performed.
In Espoo, 23 March 2026
KPMG Oy Ab
audit firm
Timo Nummi
Authorised Public Accountant
KPMG Oy Ab, a Finnish limited liability company and a member firm of the KPMG global organization of independent member firms
affiliated with KPMG International Limited, a private English company limited by guarantee.
Business ID 1805485-9
Domicile Helsinki
This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.
Auditor’s Report
To the Annual General Meeting of LocalTapiola General Mutual Insurance Company
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of LocalTapiola General Mutual Insurance Company (business
identity code 0211034-2) for the year ended 31 December, 2025. The financial statements comprise the
balance sheets, income statements, cash flow statements and notes for the LocalTapiola Group as well as
for the parent company.
In our opinion, the financial statements give a true and fair view of the LocalTapiola Group’s and the
company’s financial performance and financial position in accordance with the laws and regulations
governing the preparation of financial statements in Finland and comply with statutory requirements.
Our opinion is consistent with the additional report submitted to the Board of Directors.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under
good auditing practice are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report.
We are independent of the parent company and of the companies included in LocalTapiola Group’s
consolidated financial statements in accordance with the ethical requirements that are applicable in Finland
and are relevant to our audit, and we have fulfilled our other ethical responsibilities in accordance with these
requirements.
In our best knowledge and understanding, the non-audit services that we have provided to the parent
company and the companies included in LocalTapiola Group’s consolidated financial statements are in
compliance with laws and regulations applicable in Finland regarding these services, and we have not
provided any prohibited non-audit services referred to in Article 5(1) of regulation (EU) 537/2014. The non-
audit services that we have provided have been disclosed in note 3.4 to the consolidated financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Materiality
The scope of our audit was influenced by our application of materiality. The materiality is determined based
on our professional judgement and is used to determine the nature, timing and extent of our audit
procedures and to evaluate the effect of identified misstatements on the financial statements as a whole.
The level of materiality we set is based on our assessment of the magnitude of misstatements that,
individually or in aggregate, could reasonably be expected to have influence on the economic decisions of
the users of the financial statements. We have also taken into account misstatements and/or possible
misstatements that in our opinion are material for qualitative reasons for the users of the financial
statements.
Most significant assessed risks of material misstatement
Below we have described our assessment of the most significant risks of material misstatement, including
risks of material misstatement due to fraud, and presented a summary of our response to those risks.
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LocalTapiola General Mutual Insurance Company
Auditor’s Report
financial year ended 31 December, 2025
We have also addressed the risk of management override of internal controls. This includes consideration
of whether there was evidence of management bias that represented a risk of material misstatement due to
fraud.
MOST SIGNIFICANT ASSESSED RISKS OF
MATERIAL MISSTATEMENT
AUDITOR’S RESPONSE TO THE RISKS
1 Valuation of investments (accounting principles pp. 178-180)
The investment assets included the
consolidated financial statements, including
assets held to cover unit-linked insurance
policies, form the most significant share of the
balance sheet assets.
Assets held to cover unit-linked insurance
policies are stated at current value. Other
investments are, as a rule, stated at historical
cost or, as with real estate, at acquisition value
from which intended depreciations have been
deducted, or at a market value below the
aforementioned.
The appendices of the financial statements
describe the investment book value as well as
the current value of investments and the net
investment income at current value.
The current value of assets is based on either
market quotation or current values defined by
commonly accepted principles. The definition of
current value of investments requires discretion
especially for those assets and instruments for
which a market value from public market
quotations is not available; examples of such
include private equity investments and real
estate investments.
Because of the discretion associated with the
significant book value of investment assets and
its valuation, investment assets and its
presentation has for the purposes of audit been
defined as an item that entails a risk of material
misstatement.
We have assessed the appropriateness of the
accounting principles and valuation methods
employed by the company.
We have tested the internal controls related to
the valuation process and the recording of
securities and real estate assets.
In conjunction with the audit, we have compared
the current values used for valuation of
investment assets with external price quotations
and results yielded by other applied valuation
methods, as well as assessed the
appropriateness of the company's own valuation
methods.
In addition, we have assessed the accuracy of
the notes concerning investment assets.
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LocalTapiola General Mutual Insurance Company
Auditor’s Report
financial year ended 31 December, 2025
2 Technical provisions (accounting principles pp. 181-182)
As per Chapter 9 of the Insurance Companies
Act, technical provisions form the most
significant item of the liabilities.
The calculation of technical provisions is based
on complex actuarial calculation models and
assumptions requiring management judgement,
which are related, for example in pension-type
insurance lines, to the life expectancy of the
insured and to the discount interest rate used.
The definition of the discount rate used in the
calculation of provision for pension-type claims
and the assessment of incidents of loss must be
made securely.
Mutual life insurance company's own risk has
guaranteed interest rate of pension and savings
life insurances with promised technical rate of
interest. Promised technical rate of interest
involves an investment returns risk. The interest
used for calculating technical provisions must
be selected securely.
The calculation of technical provisions is based
on data produced by and combined from
several different information systems. The
databases are extensive and the systems
process a large amount of data.
Based on these factors, technical provisions
have been assessed in the audit to be an item
entailing a risk of material misstatement.
We have assessed the principles and
calculation bases for the recognition and
calculation of technical provisions.
Our actuary has participated in the audit and
evaluated the appropriateness of the
assumptions and methods used. The
evaluation included, for example, assessing the
rationale behind the calculation of key figures
for collective provision and claims handling
provisions as well as benchmarking the
calculations of collective provisions. The
calculation principles used and the
appropriateness of calculation models have
been evaluated to verify the adequacy of
technical provisions.
We have also examined the appropriateness of
transfer of technical provisions and assessed
the accuracy of the notes regarding technical
provisions.
Responsibilities of the Board of Directors and the Managing Director for the Financial Statements
The Board of Directors and the Managing Director are responsible for the preparation of financial
statements that give a true and fair view in accordance with the laws and regulations governing the
preparation of financial statements in Finland and comply with statutory requirements. The Board of
Directors and the Managing Director are also responsible for such internal control as they determine is
necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are responsible for
assessing the parent company’s and the companies included in LocalTapiola Group’s consolidated financial
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LocalTapiola General Mutual Insurance Company
Auditor’s Report
financial year ended 31 December, 2025
statements’ ability to continue as a going concern, disclosing, as applicable, matters relating to going
concern and using the going concern basis of accounting. The financial statements are prepared using the
going concern basis of accounting unless there is an intention to liquidate the parent company or the
LocalTapiola Group or cease operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with good auditing practice will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of the financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
— Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
— Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the parent company’s or the LocalTapiola Group’s internal control.
— Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
— Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the
going concern basis of accounting and based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the parent
company’s or the Local Tapiola Group’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the parent company or the LocalTapiola Group to
cease to continue as a going concern.
— Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events so
that the financial statements give a true and fair view.
— Plan and perform the LocalTapiola Group audit to obtain sufficient appropriate audit evidence
regarding the financial information of the entities or business units within the LocalTapiola Group as a
basis for forming an opinion on the group financial statements. We are responsible for the direction,
supervision and review of the audit work performed for purposes of the LocalTapiola Group audit. We
remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
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LocalTapiola General Mutual Insurance Company
Auditor’s Report
financial year ended 31 December, 2025
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General Meeting LocalTapiola General Mutual Insurance
Company in 2013 and our appointment represents a total period of uninterrupted engagement of 13 years.
Other Information
The Board of Directors and the Managing Director are responsible for the other information. The other
information comprises the report of the Board of Directors.
Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. Our
responsibility also includes considering whether the report of the Board of Directors has been prepared in
compliance with the applicable provisions, excluding the sustainability report information on which there are
provisions in Chapter 7 of the Accounting Act and in the sustainability reporting standards.
In our opinion, the information in the report of the Board of Directors is consistent with the information in the
financial statements and the report of the Board of Directors has been prepared in compliance with the
applicable provisions. Our opinion does not cover the sustainability report information on which there are
provisions in Chapter 7 of the Accounting Act and in the sustainability reporting standards.
If, based on the work we have performed, we conclude that there is a material misstatement of the report of
the Board of Directors, we are required to report that fact. We have nothing to report in this regard.
Espoo, 23 March 2026
KPMG OY AB
Audit Firm
TIMO NUMMI
Authorised Public Accountant, KHT
This document is an English translation of the Finnish Assurance Report on the Sustainability Report. Only the Finnish version of the
report is legally binding.
Assurance Report on the Sustainability Statement
To the Annual General Meeting of LocalTapiola General Mutual Insurance Company
We have performed a limited assurance engagement on the sustainability statement of LocalTapiola
General Mutual Insurance Company (business identity code 0211034-2) that is referred to in Chapter 7 of
the Accounting Act and that is included in the report of the Board of Directors for the financial year 1.1.–
31.12.2025.
Opinion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our
attention that causes us to believe that the LocalTapiola General Mutual Insurance Company sustainability
report does not comply, in all material respects, with
1)the requirements laid down in Chapter 7 of the Accounting Act and the sustainability reporting
standards (ESRS), and
2)the requirements laid down in Article 8 of the Regulation (EU) 2020/852 of the European
Parliament and of the Council on the establishment of a framework to facilitate sustainable
investment, and amending Regulation (EU) 2019/2088 (EU Taxonomy).
Point 1 above also contains the process in which LocalTapiola General Mutual Insurance Company has
identified the information for reporting in accordance with the sustainability reporting standards (double
materiality assessment).
Our opinion does not cover the tagging of the LocalTapiola General Mutual Insurance Company
sustainability report with digital XBRL sustainability tags in accordance with Chapter 7, Section 22,
Subsection 1(2), of the Accounting Act, because sustainability reporting companies have not had the
possibility to comply with that requirement in the absence of requirements for the tagging of sustainability
information in the ESEF regulation or other European Union legislation.
Basis for Opinion
We performed the assurance of the LocalTapiola General Mutual Insurance Company sustainability report
as a limited assurance engagement in compliance with good assurance practice in Finland and with the
International Standard on Assurance Engagements (ISAE) 3000 (Revised) Assurance Engagements Other
than Audits or Reviews of Historical Financial Information.
Our responsibilities under this standard are further described in the Responsibilities of the Authorized
LocalTapiola General Mutual Insurance Company Sustainability Auditor section of our report.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Authorized LocalTapiola General Mutual Insurance Company Sustainability Auditor's Independence
and Quality Management
We are independent of the parent company and of the companies included in LocalTapiola Group’s
consolidated financial statements in accordance with the ethical requirements that are applicable in Finland
and are relevant to our engagement, and we have fulfilled our other ethical responsibilities in accordance
with these requirements.
The authorized LocalTapiola General Mutual Insurance Company sustainability auditor applies International
Standard on Quality Management ISQM 1, which requires the authorized sustainability audit firm to design,
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LocalTapiola General Mutual Insurance Company
Assurance Report on the Sustainability Statement
for the financial year 1.1.–31.12.2025
implement and operate a system of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director of LocalTapiola General Mutual Insurance Company are
responsible for:
— the LocalTapiola General Mutual Insurance Company sustainability report and for its preparation and
presentation in accordance with the provisions of Chapter 7 of the Accounting Act, including the process
that has been defined in the sustainability reporting standards and in which the information for reporting
in accordance with the sustainability reporting standards has been identified,
— the compliance of the LocalTapiola General Mutual Insurance Company sustainability report with the
requirements laid down in Article 8 of the Regulation (EU) 2020/852 of the European Parliament and of
the Council on the establishment of a framework to facilitate sustainable investment, and amending
Regulation (EU) 2019/2088, and for
— such internal control as the Board of Directors and the Managing Director determine is necessary to
enable the preparation of LocalTapiola General Mutual Insurance Company sustainability report that is
free from material misstatement, whether due to fraud or error.
Inherent Limitations in the Preparation of a Sustainability Report
Preparing a sustainability report requires a company to make materiality assessment to identify relevant
matters to report. This includes significant management judgement and choices. It is also characteristic to
the sustainability reporting that reporting of this kind of information includes estimates and assumptions as
well as measurement and estimation uncertainty.
The determination of greenhouse gases is subject to inherent uncertainty due to the incomplete scientific
data used to determine the emission factors and the numerical values needed to combine emissions of
different gases.
When reporting forward-looking information in accordance with ESRS standards, a company's management
is required to make assumptions about possible future events, and to disclose the company's possible
future actions in relation to those events, as well as to prepare the forward-looking information based on
these assumptions. Actual results are likely to differ because forecasted events often do not occur as
expected.
Responsibilities of the Authorized LocalTapiola General Mutual Insurance Company Sustainability
Auditor
Our responsibility is to perform an assurance engagement to obtain limited assurance about whether the
LocalTapiola General Mutual Insurance Company sustainability report is free from material misstatement,
whether due to fraud or error, and to issue a limited assurance report that includes our opinion.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the decisions of users taken on the basis of the
LocalTapiola General Mutual Insurance Company sustainability report.
Compliance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) requires
that we exercise professional judgment and maintain professional scepticism throughout the engagement.
We also:
— Identify and assess the risks of material misstatement of the LocalTapiola General Mutual Insurance
Company sustainability report, whether due to fraud or error, and obtain an understanding of internal
control relevant to the engagement in order to design assurance procedures that are appropriate in the
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LocalTapiola General Mutual Insurance Company
Assurance Report on the Sustainability Statement
for the financial year 1.1.–31.12.2025
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the parent
company’s or the LocalTapiola Group’s internal control.
— Design and perform assurance procedures responsive to those risks to obtain evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
Description of the Procedures That Have Been Performed
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less
in extent than for, a reasonable assurance engagement. The nature, timing and extent of assurance
procedures selected depend on professional judgment, including the assessment of risks of material
misstatement, whether due to fraud or error. Consequently, the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance that would have been obtained had a
reasonable assurance engagement been performed.
Our procedures included, among others, the following:
— We interviewed the Local Tapiola Group’s management and persons responsible for collecting and
preparing the information contained in the sustainability report.
— Regarding the double materiality assessment process, we assessed the implementation of the process
carried out by the company and the information disclosed on the process in relation to the requirements
of the ESRS standards.
— Through interviews we gained understanding of the key processes and information systems related to
collecting and consolidating the sustainability information.
— We got acquainted with the internal guidelines and operating principles relevant to the sustainability
information disclosed in the sustainability report.
— We got acquainted with the background documentation and documents prepared by the LocalTapiola
General Mutual Insurance Company, as applicable, and assessed whether they support the information
included in the sustainability report.
— We assessed the information disclosed on material sustainability matters in the sustainability report in
relation to the requirements of the ESRS standards.
— In relation to the EU taxonomy information, we gained understanding about the process by which the
company has defined taxonomy eligible and taxonomy aligned activities, and assessed the regulatory
compliance of the information provided.
—
— Espoo, 23 March 2026
KPMG OY AB
Authorised Sustainability Audit Firm
TIMO NUMMI
Authorised Sustainability Auditor, KRT