LocalTapiola Mutual Life Insurance Company

Report of the Board of Directors and financial

statements for 2025

Business ID: 0201319-8

Table of contents

Report of the Board of Directors for 2025	1
1Key information	1
2Key events during the financial year	2
3Solvency and the risk position	4
4Events after the financial year	5
5Future prospects	5
6Corporate governance, responsibility and sustainability	6
7Proposal for the use of profit	10
Financial statements for 1 January–31 December 2025	11
8Financial statements, LocalTapiola Life	11
9Accounting principles	49
10Notes on risk management	54
Signatures for the report of the Board of Directors and financial statements	59
Auditor’s note	60

LocalTapiola Life | Report of the Board of Directors 2025		1

Report of the Board of Directors

for 2025

LocalTapiola Mutual Life Insurance Company (LocalTapiola

Life) is domiciled in Espoo, Finland, and its business ID is

0201319-8. LocalTapiola Mutual Life Insurance Company

(LocalTapiola Life) provides individual life insurance, group life

insurance, individual pension insurance and capital redemption

contracts to individuals and businesses, as well as delivering

group pension insurance to businesses.

LocalTapiola Life is part of LocalTapiola Group, whose

ultimate parent company is LocalTapiola General Mutual

Insurance Company (LocalTapiola General, business ID

0211034-2). 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

financial statements are available at www.lahitapiola.fi.

1 Key information

LocalTapiola Life provides financial protection to its customers, and develops

services for lifelong security that support our customers’ life and financial

self-sufficiency.

• Our result for 2025 was good, following growth of the underwriting

result. Our solvency remained strong, and we further increased the

customer benefits provided to our owner-customers.

• In risk insurance, our market leader position strengthened further.

• The development project to reform core systems aims at a

significant improvement of customer experience. The project

progressed in 2025, laying a solid foundation for future development

steps.

Summary of results	2025	2024
Operating profit, EUR m	130.3	218.3
Total result, EUR m	121.7	232.6
Result for the financial year, EUR m	79.8	144.9
Return on total assets, excluding unit-linked insurance, %	3.9	7.6

Key figures	2025	2024
Claims paid, EUR m	393.5	409.1
Technical rate of interest paid to customers, EUR m	41.1	42.9
Bonuses paid to customers, EUR m	26.7	18.7
Net investment income at current value, %	2.1	6.1
Total expense loadings, EUR m	68.4	65.6
Supplementary interest rate provisions, EUR m	-0.2	0.0
Technical provisions, EUR m	1,969.4	2,056.8
Technical provisions for unit-linked insurance, EUR m	3,257.8	3,056.9
Capital and reserves, EUR m	966.5	888.6
Balance sheet total, EUR m	6,223.7	6,031.5
Solvency ratio, %	254.0	273.0

The comparative figures for profit and loss account items and periodic key

figures are those reported for the previous year’s corresponding period. The

comparative figures for balance-sheet and other cross-sectional key figures

are those representing the situation at the end of 2024. In the text, the

figures for the comparison period or point in time are given in parentheses.

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.

LocalTapiola Life | Report of the Board of Directors 2025		2

2 Key events during the financial year

2.1 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.

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.

			Change,
Premiums written	2025	2024	%
Savings life insurance and capital redemption contracts, EUR m	163.7	165.1	-0.8
Term life insurance, EUR m	138.3	132.3	4.5
Group pension insurance, EUR m	66.5	66.8	-0.4
Individual pension insurance, EUR m	35.1	36.7	-4.5
Employees’ group life insurance, EUR m	15.3	15.1	1.3
Total	418.9	416.0	0.7

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.

2.2 The investment market and investment

activities

For the investment market, 2025 was a strong year. The eventful year was

marked particularly by President Trump’s trade and economic policy.

However, the impact of tariff increases on global economic activity remained

limited overall.

In 2025, global equity markets delivered double‑digit returns when measured

in local currencies. The year was strong for both developed and emerging

equity markets. Unlike in recent years, the performance of the European and

Finnish stock markets was stronger than in the United States. A weakening of

the U.S. dollar reduced the euro‑denominated returns of dollar‑based

investments, further accentuating the difference between the United States

and Europe.

For euro-area fixed‑income investments, the year was twofold. Credit risk

rewarded investors, but the longest‑maturity government bonds in the euro

area generated negative returns due to rising interest rates. The interest rate

movements were driven by the suspension of Germany’s debt brake and

increasing defence expenditures within the euro area.

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

LocalTapiola Life | Report of the Board of Directors 2025		3

second half of 2025 as trade policy uncertainty eased, but politics and

geopolitical tensions continue to be surrounded by uncertainty.

Forecasts project that, of the major economies, growth in the United States

is expected to pick up slightly in 2026. Euro-area economic growth is

expected to continue in 2026 roughly at the previous year’s level. Finland’s

economic recovery was weaker than hoped in 2025, but growth is expected to

strengthen in 2026. Nevertheless, a recovery of the Finnish economy will also

depend on global – and particularly European – economic developments.

The initial outlook for the 2026 investment year remains fairly positive. The

cyclical recovery and investor risk appetite favour equity and credit risk over

interest rate risk. The economic cycle outlook and favourable corporate

earnings expectations support the equity markets. In the investment market,

the most significant risk factors are linked to trade policy and geopolitics.

Also, 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.

Investment activities	2025	2024
Net investment income at current value, %	2.1	6.1
Fixed-income investments	-0.3	2.3
Equity investments	7.7	18.3
Real estate investments	0.4	1.5
Other investments	6.6	5.2
Investment allocation, %
Fixed-income investments	48.3	53.3
Equity investments	30.7	25.8
Real estate investments	20.8	20.6
Other investments	0.3	0.3
Investment assets at current value, EUR m	2,957.6	3,041.5

For LocalTapiola Life, 2025 proved a moderately positive investment year,

driven by equity investments. In 2025, the company achieved a net

investment income of 2.1%. Listed equity investments delivered a good 11%

yield. The company’s strategic equity investments performed even better,

yielding as much as 27%. The yield from fixed-income investments remained

slightly negative, with the government bonds used to hedge the company’s

interest rate risk of technical provisions yielding approximately 4% negative

following a rise in euro-area long-term interest rates. On the other hand, the

increased interest rates decreased the present value of technical provisions,

thereby having a positive impact on solvency. The return on illiquid

investments was positive, driven by alternative investments and investment

loans. As a result of steady rental cash flows, returns on real estate

investments were just about in positive territory, even though property values

continued to decline as completed property transactions in the Finnish

market had a negative impact on the property valuation reports prepared by

independent valuers. As a whole, the company’s solvency strengthened clearly

during the year.

The level of investment risk was kept low in relation to risk-bearing capacity

throughout 2025. There were no major changes in investment portfolio

composition during the year. Taken as a whole, the investment portfolio risk

level is moderate as we head into 2026.

The surplus from LocalTapiola Life’s operating activities is used for the

benefit of owner-customers in the form of reduced premiums, customer

bonuses and service development. Some of the result is used to strengthen

the company’s solvency, thereby safeguarding customers’ interests now and

in the future.

The notes to the financial statements contain a report on the application of

Life’s principle of reasonability, on the targets for distributing additional

benefits and on the implementation of the principle of reasonability in 2016–

2025.

2.3 Ancillary activity

In the reporting year, LocalTapiola Life’s ancillary activity included marketing

the services of LocalTapiola Asset Management Ltd. In addition, LocalTapiola

Remuneration Services Ltd, a company belonging to LocalTapiola Group and

a subsidiary of LocalTapiola Life, used LocalTapiola Life’s organisation and

distribution channels to market its own services. As ancillary activity,

LocalTapiola Life also engaged in small-scale marketing cooperation with a

partner operating in the risk management and loss prevention sector.

2.4 Credit rating

The credit rating agency Standard & Poor’s has been performing a credit

rating evaluation on LocalTapiola Group since 2019.

LocalTapiola Life | Report of the Board of Directors 2025		4

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 &

Poor’s believes that LocalTapiola will continue to maintain its leading position

on the Finnish insurance market.

3 Solvency and the risk position

3.1 Prudential management

At LocalTapiola Group and its insurance companies, prudential supervision is

based on the EU-level Solvency II regulatory regime. LocalTapiola Group and

its insurance companies calculate solvency using a standard formula

determined by legislation. Solvency calculation does not fall within the remit

of statutory audit. LocalTapiola Group also constitutes a financial and

insurance group within the meaning of the Act on the Supervision of Financial

and Insurance Conglomerates. LocalTapiola General acts as the ultimate

parent company of the group, and it is tasked with ensuring that the group

and its companies fulfil the legal prudential requirements.

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.

LocalTapiola Life’s solvency is good, and the LocalTapiola Group non-life

insurance companies are among the most solvent companies in their sector in

Finland. The group’s solvency is therefore built on a strong foundation,

despite the economic uncertainty that prevails in the operating landscape. 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.

The prudential management of LocalTapiola Life and LocalTapiola Group is

explained in further detail in the group’s Solvency and Financial Condition

Reports at www.lahitapiola.fi.

3.2 Solvency position

The solvency ratio, that is eligible own funds as compared to the Solvency

Capital Requirement, was good at 254 per cent (273%). Eligible own funds

were EUR 1,465 million (EUR 1,386 million). The company’s own funds

increased as a result of investment activities and underwriting.

The company’s Solvency Capital Requirement (SCR) was EUR 578 million (EUR

508 million). This growth in the SCR was largely due to increased life

insurance-related and market risk-related capital requirements.

The company’s solvency ratio without the transitional measure of technical

provisions was 235 per cent (248%). The impact of the transitional measure

of technical provisions on the company’s solvency will decrease gradually,

ending no later than in 2032.

3.3 Risk position

The most significant operational risks are risks associated with investment

activities, life insurance, operational decisions, strategic choices and changes

in the operating landscape.

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. In the life insurance business, the most significant

insurance risks are the customer behaviour-related risks of the termination of

contracts, the interruption of premium payments, and demographic risks.

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.

In the insurance sector, operating environment and strategic risks are

heightened by the concurrent uncertainty about economic development and

the ever-increasing pace of change in the operating landscape, including

digital transformation, consolidation, new types of operators and consortia,

demographic change, internationalisation and climate change.

LocalTapiola Life’s risk management and most significant risks are discussed

in further detail in the risk management notes to the financial statements

and in the Solvency and Financial Condition Report at www.lahitapiola.fi.

LocalTapiola Life | Report of the Board of Directors 2025		5

4 Events after the financial year

After the end of the financial year, business has continued largely in line with

expectations.

5 Future prospects

5.1 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 and term life

insurance products alike, which lays a solid foundation for future growth.

5.2 Prospects for investment

For equity markets, the 2026 outlook is twofold. The economic outlook and

expected corporate earnings development support risk‑taking. At the same

time, the easing of central bank monetary policy continues to steer investors

toward seeking returns in higher‑risk assets. On the other hand, a key risk for

equity markets relates to elevated valuations, as a result of which potential

economic or earnings disappointments can lead to a repricing – even a major

repricing – of risks.

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 and the economic

environment. 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 Life | Report of the Board of Directors 2025		6

6 Corporate governance,

responsibility and sustainability

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. LocalTapiola General acts as the ultimate parent company of

LocalTapiola Group.

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 Life provides a

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.

LocalTapiola Group constitutes an insurance group within the meaning of the

Insurance Companies Act. As the ultimate parent company of the group,

LocalTapiola General has responsibility extending to LocalTapiola Group for

ensuring reliable governance, prudential supervision, risk management,

internal control and the related regulatory reporting within entire

LocalTapiola 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 Life 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 of the Board of Directors as well as the Managing

Director and the temporary Managing Director, and elected the company’s

auditor. 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 Supervisory Boards.

6.2.2.2 Cooperation Committee of the Supervisory

Boards

The Cooperation Committee 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 other full-time members of the Boards of

Directors. Decisions on the remuneration of other members of the Board of

Directors are taken by the Supervisory Board.

LocalTapiola Life | Report of the Board of Directors 2025		7

6.2.3 Board of Directors

The Board of Directors is responsible for the company’s corporate

governance and the appropriate organisation of its operations. It is also for

the Board to ensure that the control of the accounts and of asset

management is arranged appropriately.

In the 1 January–31 December 2025 financial year, Deputy Chair of the Board

of Directors, LocalTapiola Group Director Jari Eklund served as Chair of the

Board of Directors until 30 June 2024 and LocalTapiola Group President Sari

Heinonen from 1 May 2025. In addition, the following were Board members:

Timo Laakso (Director of Administration and Finance, Turku and Kaarina

Parish Union), Mikko Ayub (board professional), Mirel Leino-Haltia (Professor

of Practice, Aalto University), Antti Pulkkanen (Managing Director,

LocalTapiola General Mutual Insurance Company), Taru Tujunen (board

professional) and Kati Sulin (Boardman partner).

The remuneration 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 Audit and Risk Management Committee of

the Boards of Directors of LocalTapiola General and

LocalTapiola Life

The Audit and Risk Management Committee assists the Boards of Directors

of LocalTapiola General and LocalTapiola Life. The Chair and the members of

this Committee are LocalTapiola General and LocalTapiola Life Board

members who are independent of LocalTapiola Group.

The Committee assists the Boards with their statutory matters and matters

provided for in the rules of procedure relating to the companies’ and

LocalTapiola Group’s finances, accounts, solvency, risk management,

auditing, internal control and internal audit.

Taking into account the role of LocalTapiola General as the ultimate parent

company of LocalTapiola Group (in accordance with chapter 26, section 3 of

the Insurance Companies Act), the Committee’s activities also cover matters

concerning LocalTapiola Life, the LocalTapiola regional companies and other

group companies, insofar as such matters are group-level matters for which

the company is responsible.

In the 1 January–31 December 2025 financial year, Mirel Leino-Haltia

(Committee Deputy Chair) and Timo Laakso were the Audit and Risk

Management Committee members who represent LocalTapiola Life.

6.2.3.2 Human Resources and Compensation

Committee of the Boards of Directors of LocalTapiola

General and LocalTapiola Life

The Boards of Directors of LocalTapiola General and LocalTapiola Life are

assisted by the Human Resources and Compensation Committee.

The Committee assists the Boards of LocalTapiola General and LocalTapiola

Life in examining matters related to personnel and remuneration; monitors

and evaluates the state and development of LocalTapiola Group’s corporate

culture and employee satisfaction, leadership and managerial practices; and

examines and prepares for Board approval the LocalTapiola Group Human

Resources Strategy and key policies and guidelines concerning the position

and treatment of employees.

In the 1 January–31 December 2025 financial year, Mikko Ayub and Kati Sulin

were the Human Resources and Compensation Committee members who

represent LocalTapiola Life.

6.2.3.3 Investment and ALM Committee of the

Boards of Directors of LocalTapiola General and

LocalTapiola Life

The Boards of Directors of LocalTapiola General and LocalTapiola Life are

also assisted by the Investment and ALM Committee.

The Committee assists the Boards with statutory matters and the matters

provided for in the rules of procedure that relate to the appropriate

organisation of the companies’ asset management and prudential

supervision. The work of the Committee has particular focus on the

companies’ and LocalTapiola Group’s investment activities and asset liability

management (ALM).

In the 1 January–31 December 2025 financial year, Mikko Ayub and Antti

Pulkkanen were the Investment and ALM Committee members who represent

LocalTapiola Life.

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

LocalTapiola Life | Report of the Board of Directors 2025		8

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), 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

In the 2025 financial year, Pasi Haarala (M.Sc (Econ.)) served as LocalTapiola

Life’s Managing Director, and Petri Vilska (MA, SHV Actuarial Qualification)

served as temporary Managing Director.

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

The Annual General Meeting elected KPMG Oy Ab to continue as

LocalTapiola Life’s auditor, with Authorised Public Accountant, Authorised

Sustainability Auditor Timo Nummi as the principal auditor appointed by

KPMG Oy Ab.

6.2.7 Supervisory authority

LocalTapiola Life is a 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 Life are discussed in the notes to the

financial statements.

6.3 Personnel and remuneration 

The total number of full-time equivalent personnel at LocalTapiola Life

averaged 159 (145).

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, is in harmony with the group’s principles of 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. 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 for the senior management of LocalTapiola Life is

determined on the basis of employee pension legislation. LocalTapiola Life

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

LocalTapiola Life | Report of the Board of Directors 2025		9

benefit. Employment relationships that have commenced after this date are

not eligible for the supplementary pension benefit. 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, they and the remuneration principles are discussed in

more detail in the remuneration report at www.lahitapiola.fi.

6.4 Sustainability

Effective sustainability across Finland is one of the five objectives set out for

the LocalTapiola 2022–2026 strategy period. At LocalTapiola, sustainability

work is guided by the group strategy, and by the Owner Intent defined by a

governance body consisting of our owner-customers.

The LocalTapiola sustainability programme 2022–2026 defines the group’s

common sustainability goals and key actions. Our core businesses, insurance

and investment, are the main instruments for our sustainability work. It is our

mission to provide adequate and reasonably priced insurance cover also in a

world of evolving risks.

LocalTapiola Group is committed to the UN’s Principles for Sustainable

Insurance. 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. LocalTapiola Asset Management Group is

committed to the UN-supported Principles for Responsible Investment.

Twice a year, the Board of Directors of LocalTapiola General monitors the

progress made with the goals set out in the group’s sustainability programme.

The Board decides on the strategic policy guidelines regarding sustainability

and on the key regulatory issues. The Group’s Management Group is tasked

with formulating the other major group-level policy guidelines and decisions.

The group’s Sustainability Steering Group steers the implementation of the

sustainability programme goals and ensures the proper anticipation of

regulatory requirements. Sustainability management is lent support by the

sustainability working group, consisting of representatives of governance

bodies.

In 2025, LocalTapiola Group continued scenario‑based climate risk

assessment, and worked on defining group‑wide climate goals. The

LocalTapiola Group insurance companies’ responsible investment principles

were published, and the Partner Code of Conduct was updated. During the

year, the group piloted principles for responsible customer selection, initiated

an update of the risk selection guideline and prepared a sustainability survey

for evaluating the responsibility and sustainability of partners.

Both nationally and regionally, LocalTapiola Group is a major donor. In 2025,

the LocalTapiola Group companies provided a total of EUR 7.1 million in

support to various non-profit organisations. During the year, the Board of

LocalTapiola General decided on donations totalling EUR 5.4 million to six

Finnish universities for 2025–2028. These donations are allocated to research

projects and instruction that foster new growth and innovation in Finnish

society.

In 2025, LocalTapiola Life directed donations toward boosting financial

literacy and promoting health. We continued to support the development of

Guarantee Foundation’s PENNO service as well as the operations of the Debt

Helpline and the Ask About Money chat. Through Junior Achievement (JA)

Finland, we supported the improvement of financial literacy in lower and

upper secondary schools. A new donation target was the practical financial

guidance provided by the Martha Association for young people who are

gaining independence and for families with children.

In addition, Life donated funds to the Cancer Foundation for a study

investigating the impacts of lifestyles on the causes of cancer. We directed a

donation provided to MIELI Mental Health Finland to training school

professionals and youth activity instructors to recognise mental health

challenges and to engage young people in school and hobby environments.

On the basis of public voting, as well as internal voting by LocalTapiola Life

employees and governance bodies, we also supported children’s hobby

activities through Hope ry.

We tell more about the sustainability goals of LocalTapiola Group in the

sustainability statement published as part of the Report of the Board of

Directors of LocalTapiola General, and in a separate voluntary Sustainability

Report. The Report of the Board of Directors of LocalTapiola General and the

LocalTapiola Group Sustainability Report will be published on the

LocalTapiola website at www.lahitapiola.fi/tietoa-lahitapiolasta/lahitapiola-

ryhma/lahitapiola-ryhman-raportit/.

LocalTapiola Life | Report of the Board of Directors 2025		10

7 Proposal for the use of profit

Proposal by the Board of Directors

The Board of Directors proposes to the General Meeting of LocalTapiola Life

that the profit for the 2025 financial year, EUR 79,837,009.47, be transferred

in its entirety into the security reserve. EUR 2,000,000.00 will be transferred

from the security reserve into the contingency reserve. In addition, it is

proposed that interest in the amount of EUR 864,200.00 be paid on the

guarantee capital.

If the Board’s proposal for the use of profit is adopted, the company’s capital

and reserves will stand as described in the table below:

Capital and reserves after the proposal:
Capital and reserves, EUR	965,626,913.73
Initial reserve	4,482,208.24
Guarantee capital	37,585,505.12
Security reserve	915,045,862.14
Contingency reserve	8,513,338.23

LocalTapiola Life| Financial Statements for 2025	11

Financial statements for 1 January–31

December 2025

8 Financial statements, LocalTapiola Life

8.1 Profit and loss account, LocalTapiola Life

TECHNICAL ACCOUNT - LIFE INSURANCE	Note	1.1.2025 - 31.12.2025	1.1.2024 - 31.12.2024
Premiums written on own account
Premiums written	1	418,945,121.13	415,992,311.97
Reinsurers' share		-5,802,523.65	-5,443,034.47
Total premiums written on own account		413,142,597.48	410,549,277.50
Investment income	4	228,998,332.28	301,190,399.07
Unrealised increases in the value of investments		199,473,737.49	265,960,092.79
Claims incurred
Claims paid	2	-401,433,587.02	-415,844,336.72
Reinsurers' share		969,199.18	884,607.77
Claims paid on own account		-400,464,387.84	-414,959,728.95
Change in provision for outstanding claims		988,255.00	5,041,318.00
Total change in provision for outstanding claims		988,255.00	5,041,318.00
Total claims incurred		-399,476,132.84	-409,918,410.95
Change in provision for unearned premiums
Change in provision for unearned premiums		-114,511,067.54	-167,120,372.49
Total change in provision for unearned premiums		-114,511,067.54	-167,120,372.49
Net operating expenses	3	-62,708,877.32	-58,321,240.86
Investment charges	4	-161,062,089.51	-140,597,472.17
Unrealised impairment on investments		-3,611,704.18	-19,262,865.57
Balance on technical account		100,244,795.86	182,479,407.32

NON-TECHNICAL ACCOUNT	Note	1.1.2025 - 31.12.2025	1.1.2024 - 31.12.2024
Balance on technical account of life insurance		100,244,795.86	182,479,407.32
Other income	4
Other		80,832.24	303,098.03
Other expenses	4
Other		-33,473.04	-231,192.80
Result from ordinary activities		100,292,155.06	182,551,312.55
Appropriations
Change in depreciation difference		215,004.90	206,254.32
Total appropriations		215,004.90	206,254.32
Direct taxes on ordinary activities
Taxes for financial year		-20,209,738.94	-37,450,162.81
Taxes for previous financial years		-460,411.55	-448,425.25
Total direct taxes on ordinary activities		-20,670,150.49	-37,898,588.06
Result for the financial year		79,837,009.47	144,858,978.81

LocalTapiola Life| Financial Statements for 2025	12

 

8.2 Balance sheet, LocalTapiola Life 

ASSETS	Note	31.12.2025	31.12.2024
Intangible assets
Other expenses with long-term effects		14,818,668.44	11,009,456.01
Advance payments		75,396,043.61	38,838,216.95
Total intangible assets		90,214,712.05	49,847,672.96
Investments	5
Real estate investments	6
Real estate and shares in real estate		208,178,489.96	218,512,152.28
Loans to group companies		108,777,742.06	110,909,979.48
Real estate investments		316,956,232.02	329,422,131.76
Investments in group companies and participating interests	7
Shares and holdings in group companies		592,091,819.08	549,945,412.91
Debt securities and loans in group companies		134,483,694.25	134,533,192.01
Shares and holdings in participating interests		27,224,261.61	24,059,542.50
Total investments in group companies and participating interests		753,799,774.94	708,538,147.42
Other investments
Shares and holdings	7	763,117,626.73	739,724,373.39
Debt securities		775,703,895.48	889,730,793.55
Loans guaranteed by mortgages		26,640,866.37	56,596,594.01
Other loans	8	6,714,545.80	1,562,798.93
Total other investments		1,572,176,934.38	1,687,614,559.88
Total investments		2,642,932,941.34	2,725,574,839.06
Assets held to cover unit-linked insurance policies	10	3,321,337,902.08	3,089,666,823.92
Debtors	14
Arising out of direct insurance operations
Policyholders		1,413,884.78	1,449,702.79
Arising out of reinsurance operations		0.00	78,321.05
Other debtors		6,349,828.31	3,241,931.72
Total debtors		7,763,713.09	4,769,955.56
Other assets
Tangible assets
Machinery and equipment	9	314,793.20	333,705.36
Total tangible assets		314,793.20	333,705.36
Cash at bank and in hand		144,552,674.32	143,266,465.70
Other assets		1,067,204.41	1,067,204.41
Total other assets		145,934,671.93	144,667,375.47
Prepayments and accrued income
Accrued interest and rent		8,901,998.50	8,210,637.46
Other prepayments and accrued income		6,575,435.47	8,796,027.75
Total prepayments and accrued income		15,477,433.97	17,006,665.21
TOTAL ASSETS		6,223,661,374.46	6,031,533,332.18

LocalTapiola Life| Financial Statements for 2025	13

LIABILITIES	Note	31.12.2025	31.12.2024
Capital and reserves	11
Initial reserve		4,482,208.24	4,482,208.24
Guarantee capital		37,585,505.12	37,585,505.12
Other Funds
Other Funds		844,586,390.90	701,638,962.09
Total Other Funds		844,586,390.90	701,638,962.09
Profit/loss for the accounting period		79,837,009.47	144,858,978.81
Total equity		966,491,113.73	888,565,654.26
Accumulated appropriations	12
Accumulated depreciation difference		-636,016.76	-421,011.86
Total accumulated appropriations		-636,016.76	-421,011.86
Technical provisions
Provision for unearned premiums		1,325,635,593.92	1,402,922,854.38
Total provision for unearned premiums		1,325,635,593.92	1,402,922,854.38
Provision for outstanding claims		643,738,751.00	653,879,196.00
Total provision for outstanding claims		643,738,751.00	653,879,196.00
Total technical provisions		1,969,374,344.92	2,056,802,050.38
Technical provisions for unit-linked policies
Technical provisions		3,257,801,230.00	3,056,850,712.00
Total investments corresponding to the technical		3,257,801,230.00	3,056,850,712.00
Obligatory provisions	13
Other obligatory provisions		19,468.90	8,107.02
Total obligatory provisions		19,468.90	8,107.02
Deposits received from reinsurers		1,114,202.42	1,342,185.18
Creditors
Arising out of direct insurance operations		1,515,237.66	1,398,767.92
Arising out of reinsurance operations		2,847,196.12	2,483,680.45
Other creditors	14	16,491,625.28	17,104,314.43
Total liabilities		20,854,059.06	20,986,762.80
Accruals and deferred income	14	8,642,972.19	7,398,872.40
TOTAL LIABILITIES		6,223,661,374.46	6,031,533,332.18

LocalTapiola Life| Financial Statements for 2025	14

8.3 Indirect cash flow statement, LocalTapiola Life

Cash flow from operations	2025	2024
Profit on ordinary activities	100,292,155.06	182,551,312.55
Adjustments
Changes in technical provisions	113,522,812.54	162,079,054.49
Value adjustments and revaluation of investments	-136,224,986.59	-184,497,461.24
Changes in obligatory provisions	11,361.88	0.00
Depreciation according to plan	4,242,311.32	3,940,109.77
Other adjustments	-34,173,084.15	-118,011,426.06
Cash flow before change in working capital	47,670,570.06	46,061,589.51
Increase (-) / decrease (+) in non-interest-bearing short-term receivables	-3,724,385.07	452,990.02
Increase (+) / decrease (-) in non-interest-bearing short-term debts	-584,146.40	3,365,794.27
Cash flow from operations before financial items and taxes	43,362,038.59	49,880,373.80
Direct taxes paid	-16,942,732.02	-41,208,551.45
Total cash flow from operations	26,419,306.57	8,671,822.35
Cash flow from investments
Investments in assets (excl. cash and c. equivalents)	-13,252,235.58	-76,620,927.28
Capital gains from investments (excl. cash and c. equivalents)	34,173,084.15	118,011,426.06
Investments in tangible and intangible assets as well as other assets and capital gains (net)	-44,142,396.52	-26,153,329.48
Total cash flow from investments	-23,221,547.95	15,237,169.30
Cash flow from financial
Interest on guarantee capital paid	-901,450.00	-901,450.00
Other distribution of profit	-1,010,100.00	-742,200.00
Total cash flow from financial	-1,911,550.00	-1,643,650.00
Change in cash and cash equivalents	1,286,208.62	22,265,341.65
Cash and cash equivalents at the start of the year	143,266,465.70	121,001,124.05
Cash and cash equivalents at the end of the year	144,552,674.32	143,266,465.70

8.4 Key figures, LocalTapiola Life 

					EUR million
	2025	2024	2023	2022	2021
General key figures describing financial development
Operating profit	130.3	218.3	124.3	63.8	92.3
Total result	121.7	232.6	150.4	-165.9	170.6
Return on capital employed (at current value), %	2.1	6.1	3.3	-5.9	6.3
Return on total assets, excluding unit-linked insurance, %	3.9	7.6	5.1	-4.8	7.8
Average number of personnel during financial year	159	145	119	108	133
Key figures describing the financial performance of life insurance
Premium income	418.9	416.0	333.4	428.7	480.4
Expense ratio, %	105.6	101.3	102.1	105.7	109.2
Expense ratio, % of balance sheet total	1.3	1.2	1.2	1.1	1.2
Equalization provision	0.0	10.3	20.5	30.8	41.1

LocalTapiola Life| Financial Statements for 2025	15

8.5 Notes, LocalTapiola Life

8.5.1 Notes to the profit and loss account, LocalTapiola Life 

1. Premium income	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 capital 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
Direct insurance total	418,945,121.13	415,992,311.97
Reinsurance	-5,802,523.65	-5,443,034.47
Total premiums written on own account	413,142,597.48	410,549,277.50
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

LocalTapiola Life| Financial Statements for 2025	16

1.1 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
Total rebates	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
Total rebates and discounts	40,254,672.82	46,018,961.82

2. Claims paid before reinsurers' share
	2025	2024
Direct insurance
Life insurance	260,217,611.16	283,273,629.99
Pension insurance	141,215,975.86	132,570,706.73
Total	401,433,587.02	415,844,336.72
Reinsurers' share	-969,199.18	-884,607.77
Total	400,464,387.84	414,959,728.95
Of which:
Surrenders	149,050,418.47	184,280,075.04
Repayments of benefits	25,665,898.94	25,934,243.52
Other	226,717,269.61	205,630,018.16
	401,433,587.02	415,844,336.72
Share of unit-linked insurance of claims paid	179,705,840.38	203,807,404.74

3. Operating expenses and notes concerning personnel and members of corporate bodies
3.1 Total operating expenses by actitivity	2025	2024
Claims paid	7,941,836.97	6,726,804.46
Operating expenses	62,708,877.32	58,321,240.86
Investment operating expenses	4,732,282.63	4,956,246.15
Other expenses	33,131.41	94,079.72
Total	75,416,128.33	70,098,371.19

LocalTapiola Life| Financial Statements for 2025	17

3.2 Profit and loss account item operating expenses	2025	2024
Insurance policy acquisition cost
Commissions for direct insurance	13,509,205.49	13,485,473.31
Other insurance policy acquisition costs	23,234,974.39	21,597,862.29
	36,744,179.88	35,083,335.60
Insurance policy management expenses	16,592,244.37	14,010,082.71
Administrative expenses	10,917,204.34	10,619,778.60
Commissions for reinsurance ceded and profit shares	-1,544,751.27	-1,391,956.05
Total	62,708,877.32	58,321,240.86

3.3 Notes conserning personnel and members of corporate bodies
3.3.1 Personnel expenses	2025	2024
Salaries and remunerations	13,946,172.73	12,396,585.27
Pension expenses	2,681,358.16	2,557,146.72
Other personnel expenses	428,565.34	278,616.45
Total	17,056,096.23	15,232,348.44

LocalTapiola Life| Financial Statements for 2025	18

3.3.2 Management 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	538,397.00	543,850.00
Pension commitments	The retirement age/resignation age of Managing Director and that of the Deputy Managing Director is stated by law.
Monetary loans and terms thereof	No monetary loans granted.
Guarantees and contingent liabilities	No guarantees or contigent liabilities granted.
Board members and deputy board members
Salaries and remunerations	329,510.00	327,510.00
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 contigent liabilities granted.
Supervisory board
Salaries and remunerations	262,850.00	225,800.00
Pension commitments	No pension commitments.
Monetary loans and terms thereof	No monetary loans granted.
Guarantees and contingent liabilities	No guarantees or contigent liabilities granted.

3.3.3 Average number of personnel during the financial year
Staff	159	145

3.4 Auditor's fees by assignment category
	2025		2024
Auditing	55,471.00		51,858.79
Tax advice	1,065.10		0.00
Other services	110,563.79		9,813.44
Total	167,099.89		61,672.23

LocalTapiola Life| Financial Statements for 2025	19

4. Specification of net investment income and specification of other income and expenses
4.1 Specification of net investment income
Investment income	2025	2024
Income from group companies
Dividend income	7,030.26	8,510.31
Interest income	5,916,661.18	8,974,524.92
Other income	33,908,458.40	31,824,016.49
Total	39,832,149.84	40,807,051.72
Income from real estate investments in group companies
Interest income	4,308,133.48	4,400,960.62
Other income	584,633.93	717,556.70
Total	4,892,767.41	5,118,517.32
Income from real estate investments in other companies
Interest income	17,508.32	18,198.15
Other income	28,676,503.47	30,713,120.46
Total	28,694,011.79	30,731,318.61
Income from other investments
Dividend income	18,299,709.46	21,674,000.60
Interest income	15,196,147.81	20,629,867.87
Other income	19,393,902.51	16,474,223.59
Total	52,889,759.78	58,778,092.06
	126,308,688.82	135,434,979.71
Value readjustments	226,880,009.10	281,381,540.42
Realized gains	75,283,371.85	150,333,971.73
Total investment income	428,472,069.77	567,150,491.86

LocalTapiola Life| Financial Statements for 2025	20

Investment charges	2025	2024
Expenses arising from real estate investments
From group companies	-16,010,399.64	-16,009,909.80
Other companies	-3,447,545.86	-2,827,187.50
Total	-19,457,945.50	-18,837,097.30
Expenses arising from other investments	-10,794,765.50	-9,291,398.40
Interest paid and other expenses on liabilities
From group companies	-2,352.33	-2,929.83
Other companies	-238,025.02	-239,492.31
Total	-240,377.35	-242,422.14
	-30,493,088.35	-28,370,917.84
Value adjustments and depreciation
Value adjustments	-90,655,022.51	-96,884,079.18
Planned depreciation on buildings	-2,415,395.13	-2,282,795.05
Total	-93,070,417.64	-99,166,874.23
Realized losses	-41,110,287.70	-32,322,545.67
Total investment charges	-164,673,793.69	-159,860,337.74
Net investment income before revaluations and
revaluation adjustments	263,798,276.08	407,290,154.12
Net investment income in the profit and loss account	263,798,276.08	407,290,154.12

LocalTapiola Life| Financial Statements for 2025	21

4.2 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
Unrealised increases in the value of investments	197,298,924.37	256,856,230.15
Unrealised impairment on investments	-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

4.3 Specification of other income and expenses
Other income	2025	2024
Income from ancillary operations	40,109.35	232,233.87
Other other income	40,722.89	70,864.16
Total	80,832.24	303,098.03
Other expenses
Expenses for ancillary operations	33,131.41	230,626.59
Other other expenses	341.63	566.21
Total	33,473.04	231,192.80

LocalTapiola Life| Financial Statements for 2025	22

8.5.2 Notes to the balance sheet, LocalTapiola Life

5. Current value of investments and difference in valuation as well as difference in valuation of non- hedging derivatives

5.1 Current value of investments and difference in valuation
Investments		2025
	Remaining	Book value	Current value
	acquisition cost
Real estate investments
Real estate	5,473,789.00	10,101,579.44	16,700,000.00
Real estate shares in group companies	175,281,403.70	189,413,590.01	253,393,131.56
Other real estate shares	8,839,320.51	8,663,320.51	14,649,619.84
Loans to group companies	108,777,742.06	108,777,742.06	108,777,742.06
	298,372,255.27	316,956,232.02	393,520,493.46
Investments in group companies
Shares and holdings	592,091,819.08	592,091,819.08	644,159,180.20
Loans	134,483,694.25	134,483,694.25	134,483,694.25
	726,575,513.33	726,575,513.33	778,642,874.45
Investments in participating interests
Shares and holdings	27,224,261.61	27,224,261.61	33,454,221.00
	27,224,261.61	27,224,261.61	33,454,221.00
Other investments
Shares and holdings	763,117,626.73	763,117,626.73	888,676,406.48
Debt securities	775,703,895.48	775,703,895.48	676,272,666.78
Loans guaranteed by mortgages	26,640,866.37	26,640,866.37	26,640,866.37
Other loans	6,714,545.80	6,714,545.80	6,714,545.80
	1,572,176,934.38	1,572,176,934.38	1,598,304,485.43
	2,624,348,964.59	2,642,932,941.34	2,803,922,074.34

LocalTapiola Life| Financial Statements for 2025	23

5.1 Current value of investments and difference in valuation	2025
The remaining acquisition cost of debt securities includes:
Difference between the nominal value and acquisition
cost released (+) or charged (-) to interest income		-436,640.57
Book value comprises
Revaluations released to income	15,019,463.40
Other revaluations	3,740,513.35	18,759,976.75
Difference in valuation (difference between current value and book value)		160,989,133.00

Investments		2024
	Remaining	Book value	Current value
	acquisition cost
Real estate investments
Real estate	5,658,838.69	10,286,629.13	18,300,000.00
Real estate shares in group companies	185,230,567.71	199,362,754.02	271,878,419.85
Other real estate shares	8,862,769.13	8,862,769.13	15,289,798.73
Loans to group companies	110,909,979.48	110,909,979.48	110,909,979.48
	310,662,155.01	329,422,131.76	416,378,198.06
Investments in group companies
Shares and holdings	549,945,412.91	549,945,412.91	604,154,314.54
Loans	134,533,192.01	134,533,192.01	134,533,192.01
	684,478,604.92	684,478,604.92	738,687,506.55
Investments in participating interests
Shares and holdings	24,059,542.50	24,059,542.50	24,059,542.50
	24,059,542.50	24,059,542.50	24,059,542.50
Other investments
Shares and holdings	739,724,373.39	739,724,373.39	845,831,591.16
Debt securities	889,730,793.55	889,730,793.55	808,071,513.40
Loans guaranteed by mortgages	56,596,594.01	56,596,594.01	56,596,594.01
Other loans	1,562,798.93	1,562,798.93	1,562,798.94
	1,687,614,559.88	1,687,614,559.88	1,712,062,497.51
	2,706,814,862.31	2,725,574,839.06	2,891,187,744.62

LocalTapiola Life| Financial Statements for 2025	24

5.1 Current value of investments and difference in valuation		2024
The remaining acquisition cost of debt securities includes:
Difference between the nominal value and acquisition
cost released (+) or charged (-) to interest income			-818,150.72
Book value comprises
Revaluations released to income		15,019,463.40
Other revaluations		3,740,513.35	18,759,976.75
Difference in valuation (difference between current value and book value)			165,612,905.56

5.2 Difference in valuation of derivatives
Derivative contracts		2025
	Remaining	Book value	Current value
	acquisition cost
Other debtors
Assets pledged as security for derivatives	2,885,430.97	2,885,430.97	2,885,430.97
Other creditors
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	-859,892.91	-859,892.91	-458,322.95
	-204,461.94	-204,461.94	197,108.02
Difference in valuation (difference between current value and book value)			401,569.96

LocalTapiola Life| Financial Statements for 2025	25

5.2 Difference in valuation of derivatives
Current value of non-hedging derivatives and difference in valuation
Derivative contracts		2024
	Remaining	Book value	Current value
	acquisition cost
Other creditors
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
	-5,438,260.44	-5,438,260.44	-1,082,146.15
Difference in valuation (difference between current value and book value)			4,356,114.29

LocalTapiola Life| Financial Statements for 2025	26

6. Real estate investments
Changes in real estate investments:	2025	2025
	Real estate and	Loans to group
	shares in real estate	companies
Acquisition cost on 1 Jan.	223,511,782.63	110,909,979.48
Increase	341,688.03	0.00
Decrease	-2,144,187.06	-2,132,237.42
Acquisition cost on 31 Dec.	221,709,283.60	108,777,742.06
Accumulated depreciation on 1 Jan.	-14,834,486.83
Depreciation for the financial year	-448,041.73
Accumulated depreciation on 31 Dec.	-15,282,528.56
Value adjustments on 1 Jan.	-10,183,907.38
Value adjustments for the financial year	-8,177,000.00
Value readjustments	93,878.44
Value adjustments on 31 Dec.	-18,267,028.94
Revaluations on 1 Jan.	20,018,763.86
Revaluations on 31 Dec.	20,018,763.86
Book value on 31 Dec.	208,178,489.96	108,777,742.06
Real estate and shares in real estate occupied for own activities
Remaining acquisition cost	1,926,721.46
Book value	1,926,721.46
Current value	2,000,000.00

LocalTapiola Life| Financial Statements for 2025	27

7. Investments in group companies and participating interests
Shares and holdings in group companies	2025	2024
Acquisition cost on 1 Jan.	554,397,300.48	504,493,604.25
Increase	90,983,328.90	88,588,385.16
Decrease	-42,681,762.81	-38,684,688.93
Acquisition cost on 31 Dec.	602,698,866.57	554,397,300.48
Value adjustments on 1 Jan.	-4,451,887.57	-5,348,890.10
Value adjustments for the financial year	-6,678,819.35	-1,669,224.60
Value readjustments	523,659.43	2,566,227.13
Value adjustments on 31 Dec.	-10,607,047.49	-4,451,887.57
Book value on 31 Dec.	592,091,819.08	549,945,412.91
Debt securities and loans
in group companies
Acquisition cost on 1 Jan.	134,533,192.01	195,012,749.27
Increase	0.00	6,919,940.50
Decrease	-49,497.76	-67,399,497.76
Acquisition cost on 31 Dec.	134,483,694.25	134,533,192.01
Book value on 31 Dec.	134,483,694.25	134,533,192.01
Shares and holdings in participating interests
Acquisition cost on 1 Jan.	27,224,261.61	24,306,803.61
Increase	0.00	2,917,458.00
Acquisition cost on 31 Dec.	27,224,261.61	27,224,261.61
Value adjustments on 1 Jan.	-3,164,719.11	-10,953,625.51
Value readjustments	3,164,719.11	7,788,906.40
Value adjustments on 31 Dec.	0.00	-3,164,719.11
Book value on 31 Dec.	27,224,261.61	24,059,542.50
Total	619,316,080.69	574,004,955.41
Total investments in group companies and participating interests
Book value on 31 Dec.	753,799,774.94	708,538,147.42

LocalTapiola Life| Financial Statements for 2025	28

7.1 Investments in companies included in 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	3.6	73,019,312.35	4,784,102.65
LTC-Otso Oy	2)	Helsinki	18.0	9,126,544.14	7,333,533.58
LähiTapiola Palvelut Oy	3)	Espoo	15.0	21,149,039.44	436,674.06
LähiTapiola Palkitsemispalvelut Oy	1)	Espoo	100.0	1,674,037.82	-982,355.89
LähiTapiola Rahoitus Oy	3)	Espoo	11.8	126,507,172.68	12,870,134.90
LähiTapiola Varainhoito Oy -konserni	1)	Espoo	51.0	65,182,479.76	-1,164,354.08
Tieto-Tapiola Oy	2)	Espoo	33.3	5,053,705.31	4,277.32
Vakuutusneuvonta Aura	2)	Espoo	33.3	10,634.40	0.00
Vakuutusneuvonta Pohja	2)	Espoo	33.3	10,577.17	0.00
Total				301,733,503.07	23,282,012.54
Shares and holdings, investment assets		Domicile	Share of stocks %	Equity	Profit for the accounting period
Kauppakeskus Seppä Oy	2)	Espoo	47.0	35,050.24	-22,176.38
LähiTapiola Aluekiinteistöt Ky	3)	Espoo	18.9	102,932,937.14	3,412,365.42
LähiTapiola Core Kiinteistot Ky -group	1)	Espoo	55.6	46,924,770.32	-2,627,126.36
LähiTapiola Pääomasijoitus GP Oy	2)	Espoo	43.1	234.71	-60.00
LähiTapiola Pääomasijoitus I Ky	3)	Espoo	30.7	42,221,903.44	6,284,154.19
LähiTapiola Pääomasijoitus II Ky	3)	Espoo	37.0	146,588,383.53	28,394,131.69
LähiTapiola Pääomasijoitus III Ky	3)	Espoo	47.2	31,743,052.87	-1,356,353.76
LähiTapiola Pääomasijoitus IV Ky	3)	Espoo	31.1	248,302,836.21	5,416,064.77
LähiTapiola Pääomasijoitus V Ky	3)	Espoo	23.5	178,768,275.75	1,274,399.29
LähiTapiola Pääomasijoitus VI Ky	3)	Espoo	28.0	43,862,453.14	-3,054,342.36
LähiTapiola Rahoitusyhtiö I Ky	3)	Espoo	9.0	556,488,139.50	21,018,082.07
LähiTapiola Rahoitusyhtiö II Ky	3)	Espoo	50.0	50,939,095.20	2,940,999.12
LähiTapiola Tampereen Tornit Ky	3)	Espoo	32.2	32,899,837.25	-3,073,291.62
LähiTapiola Tontit GP I Oy	2)	Espoo	22.6	148,531.24	5,250.12
LähiTapiola Tontit I Ky	3)	Espoo	5.0	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 Ky	3)	Espoo	36.2	87,730,828.27	3,656,064.89
LähiTapiola Velkasijoitus II Ky	3)	Espoo	34.5	203,077,329.76	5,591,285.67
LähiTapiola Velkasijoitus III Ky	3)	Espoo	32.2	159,830,501.38	-1,979,650.10
Tapiola KR IV Ky -konserni	3)	Espoo	0.0	0.00	0.00
Total				2,041,567,748.58	72,253,385.20
In addition, LocalTapiola Mutual Life Insurance Company has invested in 26 (26) housing associations and real estate companies that are integrated into the consolidated financial statements of LocalTapiola Group, out of which 17 (17) 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 Life| Financial Statements for 2025	29

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)	Tampere	10.1	190,600,000.00	37,600,000.00
Total				190,600,000.00	37,600,000.00
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
Loihde Oyj	1.30	75,000.00	881,250.00	881,250.00	Finland
Wulff-Group PLC	1.84	127,200.00	506,256.00	506,256.00	Finland
Others		157625.00	1,785,386.64	2,392,847.25
Total		359,825.00	3,172,892.64	3,780,353.25
Finnish companies, non-listed
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
Others		30,537,395.00	291,702.23	291,702.23
Total		31,201,123.00	5,611,525.26	5,759,052.63
Foreign companies, listed
Air Liquide	0.00	39,000.00	517,650.68	598,433.67	Sweden
Aker BP ASA	0.00	30,000.00	535,753.41	829,800.00	Germany
Apple Inc	0.00	1,900.00	696,540.00	696,540.00	France
Deutsche Telekom AG	0.00	75,832.00	762,928.79	992,003.53	UK
Exelon Corp	0.00	7,300.00	617,137.64	617,137.64	Switzerland
ING Groep NV	0.00	5,000.00	510,713.69	588,361.61	Switzerland
L'Oreal SA	0.00	2,500.00	590,486.22	880,931.93	Switzerland
Meta Platforms Inc	0.00	22,000.00	625,434.00	653,840.00	France
Others		657,537.00	14,862,943.98	21,060,260.64
Total		841,069.00	19,719,588.41	26,917,309.02
Foreign companies, non-listed
Others		3083.00	190,645.69	351,182.33
Total		3,083.00	190,645.69	351,182.33
Mutual funds
Amundi Planet - Emerging Green One			12,151,495.85	12,151,495.85	Luxembourg

LocalTapiola Life| Financial Statements for 2025	30

7.3 Other investments
Security	Share of stocks %	Number	Book value	Current value	Home country
Goldman Sachs Emerging Markets Equity			7,399,004.74	10,160,650.37	Luxembourg
LähiTapiola Eurooppa HY A			36,165,890.02	41,997,112.40	Finland
LähiTapiola Eurooppa Ilmastoindeksi A			37,991,326.50	45,994,661.90	Finland
LähiTapiola Eurooppa Keskisuuret A			12,500,000.00	13,197,982.98	Finland
LähiTapiola Hanke Yrityskorko A			53,000,000.00	56,126,468.28	Finland
LähiTapiola High Yield A			38,346,627.74	43,622,515.60	Finland
LähiTapiola Hyvinvointi A			3,441,939.71	7,676,170.38	Finland
LähiTapiola Kehittynyt Aasia A			24,917,355.32	31,896,037.69	Finland
LähiTapiola Kehittyvät Korkomarkkinat A			9,629,345.86	10,646,938.29	Finland
LähiTapiola Kehittyvät Markkinat A			15,912,637.89	18,780,526.04	Finland
LähiTapiola Kestävä Ympäristö A			4,480,985.19	8,188,743.85	Finland
LähiTapiola Korkomaailma A			659,964.80	741,063.35	Finland
LähiTapiola Lyhytkorko A			838,769.09	902,854.23	Finland
LähiTapiola Pitkäkorko A			513,762.50	541,740.28	Finland
LähiTapiola Pohjoinen Yrityskorko A			13,791,353.42	19,392,844.53	Finland
LähiTapiola Reaalikorko A			28,799,780.46	28,799,780.46	Finland
LähiTapiola Tulevaisuus A			4,345,943.65	11,980,702.76	Finland
LähiTapiola USA Ilmastoindeksi A			27,861,605.54	35,601,911.83	Finland
LähiTapiola USA Keskisuuret A			3,690,601.71	3,690,601.71	Finland
LähiTapiola Yhteisö Pitkäkorko IV A			45,498,867.45	45,498,867.45	Finland
LähiTapiola Yhteisö Yrityskorko IV A			104,629,327.54	115,067,467.53	Finland
LähiTapiola Yrityskorko A			28,416,249.04	35,994,347.04	Finland
Mandatum Opportunistic Loan Strategy			7,811,821.23	7,811,821.23	Finland
PIMCO GIS Emerging Markets Bond ESG Fund			6,217,965.64	7,433,523.91	Ireland
S-Pankki High Yield Eurooppa Korko			5,000,000.00	5,982,180.89	Finland
S-Pankki Kehittyvät Markkinat Osake			1,137,084.44	1,734,318.50	Finland
S-Pankki Toimitila			4,943,031.92	4,943,031.92	Finland
Seligson & Co Euro-obligaatio A			5,000,000.04	5,404,170.24	Finland
Others			217,908.83	217,908.83
Total			545,310,646.12	632,178,440.32
Capital mutual funds
Altor Fund III (No. 2)			975,752.00	975,752.00	Jersey
Altor Fund IV (No.2) AB			5,683,957.34	5,683,957.34	Sweden
Antin Infrastructure Partners V-C SCSp			3,490,893.97	3,501,551.00	Luxembourg
Beechbrook Private Debt III L.P.			4,528,065.00	4,528,065.00	UK

LocalTapiola Life| Financial Statements for 2025	31

7.3 Other investments
Security	Share of stocks %	Number	Book value	Current value	Home country
Beechbrook UK SME Credit I L.P.			518,051.21	518,051.21	UK
Blue Owl GP Stakes IV LP			3,802,795.90	9,193,048.31	Cayman Islands
Blue Owl GP Stakes V LP			3,703,319.00	3,703,319.00	Cayman Islands
Bridgepoint Europe IV F L.P.			758,917.00	758,917.00	UK
Bridgepoint Europe V C L.P.			2,761,571.30	4,570,997.00	UK
Dasos Kestävä Metsä ja Puu III			12,901,986.15	15,520,376.46	Finland
Dasos Timberland Fund II			15,475,428.17	30,410,853.32	Luxembourg
Global Infrastructure Partners V C2 SCSp			1,797,831.12	2,100,298.44	Luxembourg
ICG Senior Debt Partners Fund 2			2,319,215.00	2,319,215.00	Luxembourg
Infranode I (No. 1) AB			10,227,519.20	10,227,519.20	Sweden
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
Kasvurahastojen Rahasto IV Ky			2,419,744.94	2,419,744.94	Finland
LähiTapiola Asuntorahasto Prime Ky			1,606,931.85	1,606,931.85	Finland
LähiTapiola Asuntosijoitus Suomi Ky			8,339,667.89	8,339,667.89	Finland
LähiTapiola Keskustakiinteistöt Ky			33,646,371.00	33,646,371.00	Finland
LähiTapiola Yhteiskuntakiinteistöt Suomi Ky			19,783,389.35	19,783,389.35	Finland
Siguler Guff Small Business Credit Opportunities Fund LP			1,868,514.15	2,629,192.68	USA
TPG Partners VII, L.P.			2,142,467.23	2,142,467.23	USA
Tuohex Kiinteistörahasto I Ky			9,694,235.04	9,936,992.00	Finland
VSS Structured Capital Parallel III, L.P.			7,681,828.94	8,893,514.04	USA
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
Others			3,287,729.21	3,763,672.16
Total			189,112,328.68	219,690,068.93
Total other investments, shares and holdings		32,405,100.00	763,117,626.80	888,676,406.48

LocalTapiola Life| Financial Statements for 2025	32

7.4 Assets held to cover unit-linked insurance policies
Security	Home country	Book value	Current value
Shares
Bittium Oyj	Finland	2,061,398.60	2,061,398.60
Enento Group Oyj	Finland	548,422.94	548,422.94
Evli Oyj	Finland	3,153,852.60	3,153,852.60
Kesko Oyj	Finland	671,816.50	671,816.50
Kone Oyj	Finland	1,255,590.48	1,255,590.48
Lindex Group OYJ	Finland	1,498,494.66	1,498,494.66
Metso Oyj	Finland	975,048.20	975,048.20
Neste Oyj	Finland	749,226.00	749,226.00
Nokia Oyj	Finland	1,659,358.31	1,659,358.31
Nordea Bank Abp	Finland	2,180,321.75	2,180,321.75
Orion Oyj	Finland	878,815.55	878,815.55
Others		20,213,083.36	20,213,083.36
Total		40,897,663.08	40,897,663.08
Mutual funds
Vanguard FTSE All-World UCITS	Ireland	735,679.78	735,679.78
iShares Core S&P 500 UCITS	Ireland	5,672,246.30	5,672,246.30
iShares MSCI EM ESG Enhanced U	Ireland	11,382,312.07	11,382,312.07
iShares MSCI Europe SRI UCITS ETF	Ireland	765,974.40	765,974.40
iShares MSCI Japan ESG Enhanced UCITS ETF	Ireland	2,745,380.64	2,745,380.64
iShares NASDAQ 100 UCITS ETF U	Ireland	536,508.80	536,508.80
BGF European High Yield Bond Fund Z2 EUR	Luxembourg	5,599,246.76	5,599,246.76
Emerging Markets Debt Opportunities Fund	Luxembourg	8,919,816.91	8,919,816.91
Evli Swedish Small Cap B	Sweden	5,016,829.22	5,016,829.22
X-trackers MSCI Europe Small Cap ETF	Germany	4,816,715.10	4,816,715.10
ALANDSBANKEN EURO BOND-B	Finland	886,921.81	886,921.81
Alandsbanken Euro High Yield B	Finland	696,534.38	696,534.38
Alandsbanken Global Equity	Finland	710,093.79	710,093.79
EAB Private Equity Oy Project Fourth Ky	Finland	2,537,990.00	2,537,990.00
EAB Renewable Energy Infrastructure Fund II Ky	Finland	1,219,831.61	1,219,831.61
EAI Residential asuntorahasto 2015	Finland	1,208,144.00	1,208,144.00
EAI Residential asuntorahasto 2016	Finland	526,320.00	526,320.00
EAI Residential asuntorahasto 2018	Finland	584,870.00	584,870.00
EQ EUROOPPA PIENYHTIO-1K	Finland	530,003.77	530,003.77
EQ Eurooppa Indeksi-1 K	Finland	1,141,549.75	1,141,549.75
EQ Eurooppa Osinko 1 K	Finland	1,279,015.29	1,279,015.29
EVLI EMERGING FRONTIER-B	Finland	10,951,185.60	10,951,185.60
EVLI EMERGING MKT CREDIT-B	Finland	8,640,794.88	8,640,794.88
EVLI EQUITY FACTOR USA-B	Finland	1,460,788.38	1,460,788.38
EVLI FINNISH SMALL CAP	Finland	6,712,953.82	6,712,953.82
EVLI GEM-B	Finland	6,050,794.59	6,050,794.59
EVLI NORTH AMERICA-B	Finland	1,052,272.22	1,052,272.22
EVLI PRIVATE DEBT FUND I KY	Finland	5,705,121.43	5,705,121.43
EVLI RENTAL YIELD AIF-A	Finland	12,787,738.28	12,787,738.28

LocalTapiola Life| Financial Statements for 2025	33

7.4 Assets held to cover unit-linked insurance policies
Security	Home country	Book value	Current value
Erikoissijoitusrahasto Elite	Finland	2,215,068.64	2,215,068.64
Erikoissijoitusrahasto UB Metsä A	Finland	684,277.02	684,277.02
Erikoissijoitusrahasto UB Nordic Property	Finland	2,060,321.77	2,060,321.77
Euro Choice VII Feeder voitonjakolaina	Finland	3,985,600.10	3,985,600.10
Evli Atlas USA Enhanced Index	Finland	23,393,304.03	23,393,304.03
Evli Euro Likvidi B	Finland	1,326,051.48	1,326,051.48
Evli Eurooppa B	Finland	2,636,477.47	2,636,477.47
Evli Eurooppa Kasvu B	Finland	5,319,384.16	5,319,384.16
Evli European High Yield B	Finland	18,827,213.05	18,827,213.05
Evli Green Corporate Bond B	Finland	11,051,656.26	11,051,656.26
Evli Growth Partners I yhtiöosuus	Finland	6,610,226.18	6,610,226.18
Evli Growth Partners II yhtiöosuus	Finland	5,964,983.20	5,964,983.20
Evli Hannibal	Finland	4,178,107.74	4,178,107.74
Evli Healthcare I yhtiöosuus	Finland	18,783,013.40	18,783,013.40
Evli Impact Equity B	Finland	4,500,248.52	4,500,248.52
Evli Impact Forest Fund I	Finland	5,836,381.79	5,836,381.79
Evli Impact Forest Fund II	Finland	1,454,085.50	1,454,085.50
Evli Infrastructure Fund I Ky	Finland	10,221,760.20	10,221,760.20
Evli Infrastructure Fund II Ky	Finland	3,677,489.20	3,677,489.20
Evli Leveraged Loan Fund	Finland	1,599,883.53	1,599,883.53
Evli Lyhyt Yrityslaina B	Finland	7,709,245.41	7,709,245.41
Evli Maailma B	Finland	1,325,019.88	1,325,019.88
Evli Nordic High Yield	Finland	6,321,087.48	6,321,087.48
Evli Nordic Senior Secured Loan B	Finland	5,132,604.44	5,132,604.44
Evli Private Capital Fund I Ky	Finland	1,270,370.25	1,270,370.25
Evli Private Debt Fund II	Finland	2,530,728.90	2,530,728.90
Evli Private Equity II yhtiöosuus	Finland	12,889,381.25	12,889,381.25
Evli Private Equity III yhtiöosuus	Finland	4,862,572.80	4,862,572.80
Evli Residential I yhtiöosuus (2020)	Finland	4,506,500.00	4,506,500.00
Evli Residential II yhtiöosuus	Finland	4,684,028.58	4,684,028.58
Evli Suomi Select B	Finland	6,498,705.72	6,498,705.72
Evli Takt.Alpha-Korko B	Finland	23,373,639.87	23,373,639.87
Evli Varainhoito 50 B	Finland	1,559,209.10	1,559,209.10
Harkitseva Varainhoito	Finland	3,394,973.68	3,394,973.68
Kiinteistö-sijoitussalkku	Finland	129,844,341.53	129,844,341.53
Kiinteistö-sijoitussalkku A	Finland	2,457,287.74	2,457,287.74
Korkostrategia	Finland	2,050,028.60	2,050,028.60
Laaja Maltti	Finland	16,013,690.54	16,013,690.54
Laaja Rohkea	Finland	39,663,088.72	39,663,088.72
Laaja Tasapaino	Finland	57,502,607.52	57,502,607.52
LähiTapiola 2025 A	Finland	196,220,471.23	196,220,471.23
LähiTapiola 2035 A	Finland	150,427,487.82	150,427,487.82
LähiTapiola 2045 A	Finland	39,285,335.79	39,285,335.79
LähiTapiola Asuntosijoitus Prime	Finland	7,732,055.99	7,732,055.99
LähiTapiola Asuntosijoitus Suomi	Finland	3,388,126.34	3,388,126.34
LähiTapiola Eurooppa HY A	Finland	3,234,606.14	3,234,606.14

LocalTapiola Life| Financial Statements for 2025	34

7.4 Assets held to cover unit-linked insurance policies
Security	Home country	Book value	Current value
LähiTapiola Eurooppa Ilmastoindeksi A	Finland	15,558,062.62	15,558,062.62
LähiTapiola Eurooppa Keskisuuret A	Finland	24,758,051.13	24,758,051.13
LähiTapiola High Yield A	Finland	5,292,527.99	5,292,527.99
LähiTapiola Hyvinvointi A	Finland	28,367,487.18	28,367,487.18
LähiTapiola Kehittynyt Aasia A	Finland	18,960,619.04	18,960,619.04
LähiTapiola Kehittyvät Korkomarkkinat A	Finland	2,114,775.32	2,114,775.32
LähiTapiola Kehittyvät Markkinat A	Finland	6,969,446.11	6,969,446.11
LähiTapiola Kestävä Ympäristö A	Finland	10,689,772.82	10,689,772.82
LähiTapiola Korkomaailma A	Finland	47,792,735.70	47,792,735.70
LähiTapiola Lyhytkorko A	Finland	35,847,435.47	35,847,435.47
LähiTapiola Lyhytkorko VI A	Finland	3,103,413.97	3,103,413.97
LähiTapiola Maailma 20 A	Finland	28,783,659.13	28,783,659.13
LähiTapiola Maailma 50 A	Finland	114,545,328.16	114,545,328.16
LähiTapiola Maailma 80 A	Finland	109,383,499.87	109,383,499.87
LähiTapiola Metsäsijoitus	Finland	5,473,862.19	5,473,862.19
LähiTapiola Pitkäkorko A	Finland	4,028,771.82	4,028,771.82
LähiTapiola Pohjoinen Yrityskorko A	Finland	66,340,537.51	66,340,537.51
LähiTapiola Pohjoinen Yrityskorko VI A	Finland	23,168,941.59	23,168,941.59
LähiTapiola Pohjoismaat A	Finland	2,373,451.93	2,373,451.93
LähiTapiola Tapiolan Keskus	Finland	1,233,317.91	1,233,317.91
LähiTapiola Tulevaisuus A	Finland	51,881,748.87	51,881,748.87
LähiTapiola USA Ilmastoindeksi A	Finland	41,644,179.57	41,644,179.57
LähiTapiola USA Keskisuuret A	Finland	11,760,932.04	11,760,932.04
LähiTapiola Yrityskorko A	Finland	4,745,760.26	4,745,760.26
Momentum-varainhoito	Finland	18,382,546.79	18,382,546.79
Project Third KY	Finland	1,296,350.00	1,296,350.00
Pääomasijoitukset-sij.salkku A	Finland	14,488,855.83	14,488,855.83
Pääomasijoitussalkku I	Finland	22,882,761.13	22,882,761.13
Reipas Varainhoito	Finland	12,381,920.53	12,381,920.53
Rohkea Varainhoito	Finland	26,048,751.97	26,048,751.97
S-Pankki Fenno Osake	Finland	20,635,378.13	20,635,378.13
S-Pankki High Yield Eurooppa Korko	Finland	569,710.96	569,710.96
S-Pankki Kehittyvät Markkinat Osake	Finland	36,895,170.79	36,895,170.79
S-Pankki USA Osake A	Finland	964,087.43	964,087.43
S-Pankki Varainhoito 70 A	Finland	719,446.73	719,446.73
S-Sijoituskori Kohtuullinen	Finland	1,668,127.23	1,668,127.23
S-Sijoituskori Varovainen	Finland	1,456,223.39	1,456,223.39
Saari I Ky	Finland	803,796.56	803,796.56
Seligson & Co Aasia Indeksirahasto A	Finland	12,450,638.05	12,450,638.05
Seligson & Co Euro Corporate Bond A	Finland	686,304.82	686,304.82
Seligson & Co Euro-obligaatio A	Finland	871,515.92	871,515.92
Seligson & Co Eurooppa Indeksirahasto A	Finland	26,453,852.16	26,453,852.16
Seligson & Co Global Top 25 Brands A	Finland	52,679,620.07	52,679,620.07
Seligson & Co Global Top 25 Pharmaceuticals A	Finland	28,434,958.80	28,434,958.80
Seligson & Co OMX Helsinki 25 -indeksiosuus	Finland	1,353,344.00	1,353,344.00
Seligson & Co Perheyhtiö A	Finland	3,235,576.45	3,235,576.45

LocalTapiola Life| Financial Statements for 2025	35

7.4 Assets held to cover unit-linked insurance policies
Security	Home country	Book value	Current value
Seligson & Co Pharos A	Finland	5,288,207.20	5,288,207.20
Seligson & Co Phoebus A	Finland	11,397,998.59	11,397,998.59
Seligson & Co Pohjois-Amerikka Indeksirahasto A	Finland	27,631,733.95	27,631,733.95
Seligson & Co Rahamarkkinarahasto A	Finland	13,990,139.85	13,990,139.85
Seligson & Co Suomi Indeksirahasto A	Finland	28,268,427.47	28,268,427.47
Seligson & Co Tropico LatAm A	Finland	1,089,538.70	1,089,538.70
Seligson & Co Varainhoito 100	Finland	47,913,166.28	47,913,166.28
Seligson & Co Varainhoito 25	Finland	40,411,783.23	40,411,783.23
Seligson & Co Varainhoito 50	Finland	145,642,103.55	145,642,103.55
Seligson & Co Varainhoito 75	Finland	137,039,932.55	137,039,932.55
Sijoitusrahasto Evli Atlas Europe Enhanced Index	Finland	16,577,757.16	16,577,757.16
Sijoitusrahasto Evli USA Kasvu B	Finland	17,768,094.74	17,768,094.74
Strategia 10	Finland	4,254,877.34	4,254,877.34
Strategia 30	Finland	15,252,759.05	15,252,759.05
Strategia 50	Finland	15,232,638.36	15,232,638.36
Strategia 70	Finland	6,017,677.71	6,017,677.71
Strategia varainhoito 30	Finland	8,360,676.93	8,360,676.93
TOP-indeksivarainhoito 25	Finland	13,160,627.76	13,160,627.76
TOP-indeksivarainhoito 50	Finland	1,814,040.00	1,814,040.00
UB Lyhyt Korko Sijoitusrahasto	Finland	512,851.83	512,851.83
UB NORDIC FOREST FUND III KY	Finland	618,472.15	618,472.15
Vakaa Varainhoito	Finland	7,192,435.98	7,192,435.98
Varainhoito 100	Finland	75,503,677.34	75,503,677.34
Varainhoito Eurooppa Plus	Finland	30,698,291.48	30,698,291.48
Varainhoito Maltillinen	Finland	92,107,253.72	92,107,253.72
Varainhoito Nordic Plus	Finland	16,290,140.54	16,290,140.54
Varainhoito Suomi Plus	Finland	40,833,921.76	40,833,921.76
Varainhoito Tasapainoinen	Finland	105,837,333.95	105,837,333.95
Varainhoito Tuottohakuinen	Finland	73,020,247.43	73,020,247.43
Varainhoito Varovainen	Finland	83,500,387.24	83,500,387.24
Varainhoitosalkku 10	Finland	12,566,290.31	12,566,290.31
Varainhoitosalkku 30	Finland	43,641,165.73	43,641,165.73
Varainhoitosalkku 50	Finland	28,120,475.79	28,120,475.79
Varainhoitosalkku 70	Finland	7,976,543.13	7,976,543.13
eQ Asunnot III A	Finland	4,981,695.67	4,981,695.67
eQ Euro Investment Grade 1 T	Finland	762,804.21	762,804.21
eQ High Yield Bond 1 T	Finland	760,441.58	760,441.58
eQ Kehittyvät Markkinat Osinko 1 T	Finland	646,206.56	646,206.56
eQ Kehittyvät Markkinat Osinko 1K	Finland	1,805,277.48	1,805,277.48
eQ Kehittyvät Markkinat Pienyhtiö 1 K	Finland	640,680.30	640,680.30
eQ Liikekiinteistöt-1T	Finland	27,215,956.01	27,215,956.01
eQ Maailma 2 K	Finland	4,108,786.84	4,108,786.84
eQ Mandaatti-2K	Finland	3,044,240.88	3,044,240.88
eQ PE IX US Feeder	Finland	5,578,965.57	5,578,965.57
eQ PE SF IV (Erikoissijoitusrahasto)	Finland	5,191,100.00	5,191,100.00
eQ PE SF V (Erikoissijoitusrahasto)	Finland	507,600.00	507,600.00

LocalTapiola Life| Financial Statements for 2025	36

 

7.4 Assets held to cover unit-linked insurance policies
Security	Home country	Book value	Current value
eQ PE VIII North Ky	Finland	1,215,882.36	1,215,882.36
eQ PE X North Feeder	Finland	6,898,500.00	6,898,500.00
eQ PE XI US Feeder	Finland	1,397,380.06	1,397,380.06
eQ PE XII North Feeder (Erikoissijoitusrahasto)	Finland	1,753,600.00	1,753,600.00
eQ PE XIII US Feeder	Finland	1,158,510.64	1,158,510.64
eQ PE XIV North Feeder (Erikoissijoitusrahasto)	Finland	5,414,500.00	5,414,500.00
eQ PE XV US Feeder	Finland	1,805,851.06	1,805,851.06
eQ Pikkujättiläiset 1 K	Finland	939,295.61	939,295.61
eQ Rahamarkkina 1 K	Finland	820,400.18	820,400.18
eQ Sininen Planeetta 1 K	Finland	1,045,647.11	1,045,647.11
eQ Sininen Planeetta 1 T	Finland	532,615.62	532,615.62
eQ USA Indeksi 1 K	Finland	2,711,403.46	2,711,403.46
eQ USA Indeksi-1 T	Finland	915,642.37	915,642.37
eQ VC (Erikoissijoitusrahasto)	Finland	4,529,191.49	4,529,191.49
eQ Yhteiskuntakiinteistöt	Finland	28,797,658.31	28,797,658.31
Ålandsbanken Asuntorahasto C	Finland	1,313,761.44	1,313,761.44
Ålandsbanken Cash Manager B	Finland	645,505.54	645,505.54
Ålandsbanken Europe Value B	Finland	1,190,040.87	1,190,040.87
Ålandsbanken Green Bond ESG C	Finland	771,431.68	771,431.68
Ålandsbanken Norden	Finland	648,165.57	648,165.57
Ålandsbanken Nordiska Småbolag	Finland	504,547.15	504,547.15
Ålandsbanken USA Aktie Placeringsfond D	Finland	866,676.06	866,676.06
Others		21,984,582.03	21,984,582.04
Total		3,247,889,830.59	3,247,889,830.60
Debt securities
Eurooppa High Yield 4/2024	Luxembourg	546,810.00	546,810.00
Eurooppa High Yield Super Senior 12/2022	Luxembourg	1,021,300.00	1,021,300.00
Eurooppa Investment Grade 02/2024	Luxembourg	795,440.00	795,440.00
Eurooppa Investment Grade 1/2025	Luxembourg	515,400.00	515,400.00
Europe High Yield Super Senior 1/23	Luxembourg	717,360.00	717,360.00
Evli Eurooppa High Yield 9/2023	Luxembourg	709,995.00	709,995.00
Others		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

LocalTapiola Life| Financial Statements for 2025	37

8. Other investments, other loan receivables, itemisation by type of security
8.1 Other loans, itemised by type of security
	2025	2024
Insurance policy	48,735.93	62,798.94
Remaining acquisition cost	48,735.93	62,798.94
Unsecured, total remaining acquisition cost	6,665,809.87	1,499,999.99
	6,714,545.80	1,562,798.93

 

9. Changes in tangible and intangible assets
			2025
Intangible rights, other expenses with long-term effects and development expenses		Advance payments	Machinery and equipment
Acquisition cost on 1 Jan.	64,919,889.74	38,838,216.95	4,078,891.01
Increase	3,658,213.75	40,398,163.87	150,218.90
Transfers between items	3,840,337.21	-3,840,337.21	0.00
Acquisition cost on 31 Dec.	63,915,212.17	75,396,043.61	4,164,909.91
Accumulated depreciation on 1 Jan.	-53,910,433.73	0.00	-3,745,185.65
Depreciation for the financial year	-3,689,338.53	0.00	-104,931.06
Accumulated depreciation on 31 Dec.	-49,096,543.73	0.00	-3,850,116.71
Book value on 31 Dec.	14,818,668.44	75,396,043.61	314,793.20

LocalTapiola Life| Financial Statements for 2025	38

10. Assets held to cover unit- linked insurance policies
	2025	2025	2024	2024
	Original	Current value	Original	Current value
	acquisition cost	(=book value)	acquisition cost	(=book value)
Assets held to cover unit-linked insurance policies
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

11. Changes in capital and reserves

11.1 Changes in capital and reserves	1.1.2025	Increase	Decrease	31.12.2025
Initial reserve	4,482,208.24	0.00	0.00	4,482,208.24
Guarantee capital	37,585,505.12	0.00	0.00	37,585,505.12
Security reserve	697,015,523.86	141,958,978.81	-901,450.00	838,073,052.67
Contingency reserve	4,623,438.23	2,900,000.00	-1,010,100.00	6,513,338.23
Profit for the financial year *)	144,858,978.81	79,837,009.47	-144,858,978.81	79,837,009.47
Total changes in capital and reserves	888,565,654.26	224,695,988.28	-146,770,528.81	966,491,113.73
*) Includes the paid guarantee capital interest EUR 901,450.00.

LocalTapiola Life| Financial Statements for 2025	39

11.2 Account of distributable profits	31.12.2025
Profit for financial year	79,837,009.47
+ Other unrestricted capital and reserves
Security reserve	838,073,052.67
Contingency reserve	6,513,338.23
Total distributable profits	924,423,400.37

12. Accumulated appropriations	2025	2024
Depreciation difference
Depreciation difference on 1 Jan.	-421,011.86	-214,757.54
Decrease	-215,004.90	-206,254.32
Depreciation difference on 31 Dec.	-636,016.76	-421,011.86

13. Other obligatory provisions	2025	2024
Provision for unemployment security deductible	19,468.90	8,107.02
	19,468.90	8,107.02

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	748,102.67	748,102.67
Tax debt calculated based on valuation gains/losses that is
deemed likely to become payable during the next year.	4,600,000.00	4,000,000.00
	5,348,102.67	4,748,102.67

15. Receivables and liabilities

15.1 Itemisation of receivables	2025	2024
Receivables from group companies
Other receivables	138,875.75	157,349.34
	138,875.75	157,349.34

15.2 Itemisation of liabilities	2025	2024
Liabilities to group companies
Accounts payable	5,919,628.78	3,403,617.33
Other liabilities	142,971.95	110,650.53
	6,062,600.73	3,514,267.86

LocalTapiola Life| Financial Statements for 2025	40

15.3 Itemisation of accruals and deferred income	2025	2024
Liabilities to personnel	5,351,951.34	4,980,316.85
Valuation loss on derivatives	859,892.91	128,260.44
Other accruals and deferred income	2,431,127.94	2,290,295.11
	8,642,972.19	7,398,872.40

16. Off-balance-sheet guarantees and contigent 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 v	1 - 5 v	> 5 v
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

Other derivative contracts		2025		2024
Interest derivatives
Forward and futures contracts, open
Underlying instrument		0.00		31,100,000.00

LocalTapiola Life| Financial Statements for 2025	41

Leasing liabilities
Amount to be paid in the current financial year	47,772.00		47,772.00
Amount to be paid in the coming years	71,658.00		119,430.00
	119,430.00		167,202.00

Rent liabilities
Amount to be paid in the current financial year	639,485.64		657,100.80
Amount to be paid in the coming years	1,495,521.20		2,039,047.56
	2,135,006.84		2,696,148.36

Value-added tax liabilities
Joint liability relating to collective value-added
tax registration
Group companies	678,525.72		1,069,647.58
Partner companies	3,575,170.19		3,969,064.33
	4,253,695.91		5,038,711.91
VAT liability with a positive sign = VAT debt
VAT liability with a negative sign = VAT receivable
Obligation to return value-added tax deductions
pursuant to section 33 of Value-Added Tax Act
Company	928,476.00		1,045,297.00
Other companies of the group	51,850,859.41		68,079,690.11
	52,779,335.41		69,124,987.11

Other commitments
Investment commitments	480,443,608.89		553,776,250.68
Granted limit	0.00		508,680.47
Other commitments *	0.00		16,402,140.29
	480,443,608.89		554,284,931.15
* LocalTapiola Mutual Life Insurance Company has pledged to acquire shares in 2025.

LocalTapiola Life| Financial Statements for 2025	42

17. Related party loans and transactions and subordinated loans
17.1 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.
Loans to related parties, liabilities and contingent liabilities
Loans granted to parties in the related parties register	0.00
Normal credit terms are applied to related party loans. The loan period is 5-10 years and the loans have a floating interest rate, which is tied to commonly used interest quotations.
The guarantees and contingent liabilities of LocalTapiola Mutual Life Insurance Company in favour of LocalTapiola Group companies are presented in Note 16. No guarantees and contingent liabilities have been granted to other related parties.
Management’s salaries and remunerations, pension commitments, monetary loans and terms thereof, as well as guarantees and contingent liabilities, are reported in Note 3.

 

 

LocalTapiola Life| Financial Statements for 2025	43

8.5.3 Performance analysis and other notes, LocalTapiola Life

Performance analysis					€ 1 000
	2025	2024	2023	2022	2021
Premium income	413,143	410,549	329,710	425,157	477,556
Investment income and expenses as well as revaluations
and adjustments thereof	263,798	407,290	239,155	-264,523	449,522
Claims paid	-400,464	-414,960	-375,943	-369,541	-352,198
Change in technical provisions before change
in customer benefits and equalization provision	-83,542	-126,334	-13,659	335,582	-428,341
Operating expenses	-62,709	-58,321	-55,125	-54,882	-54,202
Other techical income and expenses	0	0	0	0	0
Balance on technical account before change in customer
benefits and equalization provision	130,225	218,224	124,139	64,403	92,337
Other income and expenses	47	72	178	-562	0
Operating profit	130,273	218,296	124,317	63,841	92,337
Change in equalization provision	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 appropriations and taxes	100,292	182,551	94,522	71,148	85,185
Appropriations	215	206	197	187	177
Income taxes and other direct taxes	-20,670	-37,899	-20,838	-15,837	-17,928
Profit for the accounting period	79,837	144,859	73,881	55,498	67,434
Operating profit	130,273	218,296	124,317	63,841	92,337
Change in the difference between current and book values	-8,578	14,328	26,079	-229,744	78,246
Total result	121,694	232,624	150,396	-165,903	170,583

LocalTapiola Life| Financial Statements for 2025	44

8.5.4 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
	EUR million	%	EUR million	%	EUR million	%	%	%	%	%
Fixed-income investments	1,428.1	48.3	1,622.2	53.3	1,428.1	48.3	53.8	52.4	53.6	56.8
Loan receivables ¹⁾	167.9	5.7	192.9	6.3	167.9	5.7	6.3	9.6	9.9	10.0
Bonds	1,113.9	37.7	1,280.3	42.1	1,195.8	40.4	45.3	41.2	37.9	42.6
Other money market instruments and deposits ¹⁾ ²⁾	146.4	4.9	149.0	4.9	64.4	2.2	2.2	1.6	4.5	4.2
Equities and shares	906.9	30.7	784.6	25.8	906.9	30.7	25.5	26.8	25.1	24.6
Listed equities and shares ³⁾	253.1	8.6	156.7	5.2	253.1	8.6	5.1	4.1	4.5	7.1
Private equity investments ⁴⁾	579.1	19.6	578.6	19.0	579.1	19.6	18.8	18.2	16.6	13.6
Unlisted equities and shares ⁵⁾	74.7	2.5	49.3	1.6	74.7	2.5	1.6	4.5	4.0	3.8
Real estate investments	614.6	20.8	625.6	20.6	614.6	20.8	20.4	20.5	21.0	18.4
Direct real estate investments	393.5	13.3	416.4	13.7	393.5	13.3	13.6	14.3	14.8	13.6
Real estate funds and joint investments	221.0	7.5	209.2	6.9	221.0	7.5	6.8	6.3	6.2	4.8
Other investments	8.0	0.3	9.1	0.3	8.0	0.3	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	0.3	9.1	0.3	8.0	0.3	0.3	0.3	0.3	0.2
Total investments	2,957.6	100.0	3,041.5	100.0	2,957.6	100.0	100.0	100.0	100.0	100.0
Effect of derivatives ⁹⁾					0.0
Investments at current value, total	2,957.6	100.0	3,041.5	100.0	2,957.6	100.0	100.0	100.0	100.0	100.0
The modified duration of bond investments	8.0

LocalTapiola Life| Financial Statements for 2025	45

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.

LocalTapiola Life| Financial Statements for 2025	46

8.5.5 Net investment income on tied capital

	Net investment income at current value ⁸⁾	Capital employed ⁹⁾	Return-% on capital employed	Return-% on capital employed	Return-% on capital employed	Return-% on capital employed	Return-% on capital employed
	31.12.2025			31.12.2024	31.12.2023	31.12.2022	31.12.2021
Return €/ / % on capital employed	EUR million	EUR million	%	%	%	%	%
Fixed-income investments	-4.6	1,443.1	-0.3	2.3	6.9	-11.0	-0.5
Loan receivables ¹⁾	7.6	179.7	4.2	5.3	4.6	2.7	1.2
Bonds	-11.9	1,167.7	-1.0	1.8	7.9	-15.3	-0.9
Other money market instruments and deposits    ¹⁾ ²⁾	-0.3	95.7	-0.3	1.2	1.7	0.4	-0.3
Equities and shares	68.0	880.5	7.7	18.3	5.9	0.9	25.6
Listed equities and shares ³⁾	36.3	241.4	15.1	23.8	7.9	-15.8	33.2
Private equity investments ⁴⁾	20.3	573.0	3.5	5.6	5.5	9.3	25.6
Unlisted equities and shares ⁵⁾	11.4	66.1	17.2	108.0	5.6	-4.3	13.9
Real estate investments	2.7	619.8	0.4	1.5	-7.0	2.4	6.9
Direct real estate investments	-5.5	409.4	-1.3	1.8	-4.6	3.1	6.5
Real estate funds and joint investments	8.1	210.4	3.9	0.8	-12.5	0.6	8.0
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	66.6	2,951.7	2.3	6.3	3.6	-5.6	6.6
Unallocated return, costs and operating expenses	-4.7
Net investment income at current value	61.9	2,951.7	2.1	6.1	3.3	-5.9	6.3

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

LocalTapiola Life | Financial Statements for 2025		47

8.5.6 Notes on the additional benefits of life

insurance

8.5.6.1 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.

8.5.6.2 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.

8.5.6.3 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..

LocalTapiola Life | Financial Statements for 2025		48

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.

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.

8.5.6.4 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.

8.5.6.5 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 Life | Financial Statements for 2025		49

9 Accounting principles

The financial statements of LocalTapiola Mutual Life Insurance Company

(LocalTapiola Life) 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.

LocalTapiola General Mutual Insurance Company (business ID 0211034-2,

domicile Espoo) is the ultimate parent company of LocalTapiola Group. The

financial statements of LocalTapiola General are available at

www.lahitapiola.fi.

9.1 Accounting principles

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.

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.

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

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.

Gains and losses generated during the financial year from the closing or

lapsing of contracts are recognised as income or expense for the financial

LocalTapiola Life | Financial Statements for 2025		50

year. Interest allocated to the financial year is recognised in investment

interest income/expenses.

Operatively hedging contracts

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.

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.

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.

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.

Zillmerisation

Zillmerisation is not applied.

Investments covering unit-linked insurance policies

Investments covering unit-linked insurance policies are valued in the balance

sheet at fair value.

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.

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.

LocalTapiola Life | Financial Statements for 2025		51

The estimated depreciation periods of the various commodity groups are as

follows:

Intangible assets

• Renovations of apartments                                                    3–10 yrs

• Design expenses of ICT systems                                              5–10 yrs

Real estate

• Residential, office and hotel buildings                                  40–50 yrs

• Department store buildings and other store buildings        30–40 yrs

• Industrial buildings, warehouses and similar buildings        20–30 yrs

• Building components, reducing balance method                  25%

Fleet and equipment

• Office machinery, equipment etc., reducing balance method 25%

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.

Accumulated appropriations

Accumulated depreciation difference

See “Depreciation”.

Taxation-based provisions

Provisions recognised in profit or loss have been made on the basis of fiscal

and accountancy legislation.

Obligatory provisions

Pension expenditure and any possible unemployment pension expenditure

arising in future from obligations and allocated to the financial year ended or

an earlier financial year are deducted from income as obligatory pension

provisions. Other provisions deducted from income include provisions for

default interest for outstanding claims.

Direct taxes

In the profit and loss account, direct taxes are shown on an accrual basis

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.

Other creditors

Liabilities other than the technical provisions are shown in the balance sheet

at nominal value.

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 Life is

determined on the basis of employee pension legislation. The retirement/

resignation age of full-time Board members and other managers is in

accordance with the employment pension legislation in force from time to

time, or lower if it has been agreed that the employment relationship will

terminate before the statutory retirement age.

Pension insurance contributions are amortised on an accrual basis.

LocalTapiola Life | Financial Statements for 2025		52

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 other life insurance

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.

9.2 Changes in the accounting principles

affecting the comparability of the result for

the financial year with the result for the

previous financial year

In terms of the calculation of the technical provisions, no changes affecting

comparability were made to the accounting principles.

9.3 Calculation of key figures

9.3.1 General key figures describing financial

development

Life insurance turnover

= Premiums written before reinsurers’ share

+ Net investment income in the profit and loss account

+ Other income

Performance analysis

Life insurance

Premiums written

Investment income and expenses as well as revaluations, revaluation

adjustments and changes in value

Claims paid

Change in technical provisions before additional benefits (customer benefits)

and change in the equalisation provision

Operating expenses

Other technical income and expenses

Technical result before (additional benefits) and change in the equalisation

provision

LocalTapiola Life | Financial Statements for 2025		53

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 effective at the start of

the period the period’s cash flows, weighted by the relative proportion of 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 policies

+ 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 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

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.

9.3.2 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

LocalTapiola Life | Financial Statements for 2025		54

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.

10 Notes on risk management

10.1 General information on the

organisation of risk management

Risk management is active and proactive activity that identifies, assesses,

limits, exploits 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 risk

• Market risks

• Credit risks

• Liquidity risks

• Concentration risks

• Insurance risks

Operational risks

• Business planning risks

• Process risks

• ICT/ system risks

• Personnel risks

• Legal / compliance 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

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.

Sustainability risks do not typically constitute a separate risk category of

their own but materialise through existing risk categories, which is why their

identification is linked to the periodically conducted operational risk surveys.

From an overall perspective, a separate group-wide sustainability risk survey

is also carried out.

10.2 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

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.

LocalTapiola Life | Financial Statements for 2025		55

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 director and business units 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 company’s

Management Group, and the rules of procedure of the various risk

management-related committees and the Group’s Management Groups,

define the duties of these organs with respect to risk management and

supervision. 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 company’s Board

of Directors and other functions in order to ensure effective risk

management. This function monitors, as a whole, the company’s risk profile

and how the risk management system functions, and it reports on risk

exposure. In addition, the function assists the Board with risk management

issues.

10.3 Reporting

The accuracy of financial information is ensured by sufficiently up-to-date

and frequent reporting, regular balancing routines, and comprehensive and

timely documentation of the calculation methods and systems used in

reporting. In addition, the decision-making of the business functions and their

reporting functions are organisationally differentiated.

10.4 Insurance risk management

LocalTapiola Life’s insurance risks include life insurance risks and market,

counterparty and liquidity risks.

10.4.1 Life insurance risks

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. 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 by 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

LocalTapiola Life | Financial Statements for 2025		56

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 0.0 and 4.5%,

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.

10.4.2 Market, counterparty 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. Under the Solvency II framework,

concentration risks are treated as market risks. Concentration risks arise due

to excessive concentration of assets, 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 means

funding liquidity risk or market liquidity risk. The former is due to mismatch

between funding needs and funding sources, while the latter refers to the risk

of failure to convert investment assets into cash quickly enough without

affecting the market price.

At least on an annual basis, and whenever necessary, the Board of Directors

of the company reviews the company’s investment plan, in which it

determines the objectives of investment activities, the target levels of market

risk-taking and the risk-taking limits, taking into account the company’s

solvency, strategic goals, the economic environment and the requirements

imposed on the investment activities by insurance liabilities. Investment risk-

taking takes concrete shape in the strategic asset allocation, which includes

the asset class-specific neutral weighting of investment assets and the

permitted ranges for this weighting. In addition, the 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 traffic-light framework described in the company’s risk management

plan is a crucial tool for steering the solvency and investment activities of the

company. The framework is based on regulatory-model solvency and

leverage, classified into traffic-light zones for which management’s measures

have been determined. The green zone means that solvency is at the desired

level and the asset managers are operating within their mandates as normal.

The light-green zone means that the monitoring of solvency and 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.

Each year or more frequently, or where necessary, the investment and asset

liability management unit of LocalTapiola General and LocalTapiola Life

prepares for the Board of Directors a proposal on the strategic allocation of

investments taking into account the company’s risk-bearing capacity, the

requirements imposed by the type and structure of technical provisions, as

well as the situation on the capital markets. The suitability of the strategic

allocation is tested with various types of stress testing applied to investments

and liabilities. The asset liability management function monitors the

appropriateness of the strategic allocation and, where necessary, prepares a

change proposal for the Board. Given that the strategic allocation represents

long-term targets, it is changed only for weighty reasons that may relate, for

example, to changes in the following: the economic environment, solvency,

the insurance portfolio, the long-term performance and risk expectations of

investments, the company’s customer bonus policy or solvency strategy.

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 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 the

management of market risks and liquidity risk as part of the company’s own

risk management function. Risks are measured and monitored in accordance

with the Solvency II regulatory model, as well as by widely-used methods

including stress testing. Risks are managed by the investment and risk-taking

limits set in the investment plan, which also ensure sufficient diversification of

assets within the asset classes included in the strategic allocation. Where

necessary, risks are mitigated by allocation changes, or they are hedged

wholly or in part using derivative instruments in line with the relevant

derivatives strategy.

LocalTapiola Life | Financial Statements for 2025		57

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. In addition to cash instruments, LocalTapiola Life uses interest

rate derivatives to manage interest rate risk.

The credit risk of investment loans 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 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.

10.5 Operational risk management

Operational risk refers to the risk of loss resulting from inadequate or failed

internal processes, personnel, systems, external factors or failures in

operational planning. 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 limiting of risks across the various 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

• the management of insurable risks (own insurance cover)

LocalTapiola Life | Financial Statements for 2025		58

10.6 Management of operating environment

and strategy risks

Risks associated with the operating environment and strategic intent include

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.

10.7 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

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 company’s and the group’s risk management

functions.

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 LocalTapiola Asset Management, which acts as the group’s

parent company, has overall responsibility for setting the group’s strategic

objectives and organising risk management at the parent company. 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. The Board is also

responsible for achieving Asset Management’s 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 operational risks in compliance 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. Solvency calculation is carried out and the results are

reported to the Board on a quarterly basis or more frequently, and as needed.

LocalTapiola Life | Report of the Board of Directors and financial statements for  2025		59

Signatures for the report of the Board of Directors and financial statements

In Espoo, 5 March 2026

Sari Heinonen                                    Mikko Ayub                              Jari Eklund

Chair of the Board of Directors                                                    Deputy Chair of the Board of Directors                 

Timo Laakso                                Mirel Leino-HaltiaHarri Mattinen                                 

Taru TujunenPasi Haarala                                                                                 

Managing Director

LocalTapiola Life | Report of the Board of Directors and financial statements for  2025		60

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

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 Mutual Life Insurance Company

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of LocalTapiola Mutual Life Insurance Company (business identity

code 0201319-8) for the year ended 31 December, 2025. The financial statements comprise the balance

sheet, income statement, cash flow statement and notes.

In our opinion, the financial statements give a true and fair view of 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 Financial

Statements section of our report.

We are independent of the company 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 company 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 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.

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.

		2

LocalTapiola Mutual Life Insurance Company

Auditor’s Report

financial year ended 31 December, 2025

MOST SIGNIFICANT ASSESSED RISKS OF MATERIAL MISSTATEMENT	AUDITOR’S RESPONSE TO THE RISKS

1 Valuation of investments (accounting principles pp. 42–43)
The investment assets, including assets held to cover unit-linked insurance policies, form the most significant item 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.

		3

LocalTapiola Mutual Life Insurance Company

Auditor’s Report

financial year ended 31 December, 2025

2 Technical provisions (accounting principles p. 45)
As per Chapter 9 of the Insurance Companies Act, technical provisions form the most significant item of the liabilities. The 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. Furthermore, the calculation involves assumptions including management judgement and complex actuarial calculation models. — 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, by for example, reviewing calculation principles used and by evaluating the appropriateness of calculation models 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 company’s 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 company 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

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LocalTapiola Mutual Life Insurance Company

Auditor’s Report

financial year ended 31 December, 2025

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 company’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 company’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 company 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.

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.

Other Reporting Requirements

Information on our audit engagement

We were first appointed as auditors by the Annual General Meeting of LocalTapiola Mutual Life 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

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LocalTapiola Mutual Life Insurance Company

Auditor’s Report

financial year ended 31 December, 2025

responsibility also includes considering whether the report of the Board of Directors has been prepared in

compliance with the applicable provisions.

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.

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