Denmark’s Velliv returns DKK 79m in 2022

Written by Jack Gray

20/03/2023

Danish pension insurance company, Velliv, returned DKK 79m after tax in 2022, it has revealed in its annual report.

This is down from DKK 448m in 2021, with the pension company describing 2022 as a financially challenging year.

The lower result was attributed to a fall in the return on equities, the fact that the full risk allowance has not been recognised, and the effects of changes in tax rules.

Velliv’s bonus rate at the end of 2022 was 7%, down from 11.2% the previous year.

The pension company said this was “satisfactory” given the challenging market conditions in 2022, which caused losses on both shares and bonds.

Deposits continued to grow during the year, with Velliv reporting a year-on-year increase of 5% to DKK 34.9bn.

Current payments increased by around 16% to DKK 14.1bn.

Net deposits amounted to DKK 17.7bn, corresponding to 7.5% of total provisions.

There was also a net increase in customers in 2022, rising to approximately 407,000 customers.

"Developments in the financial markets were challenging in 2022,” commented Velliv CEO, Steen Michael Erichsen.

“With high inflation not seen since the 1980s, rapidly rising interest rates and consequent losses on bonds and declines in the stock markets, we experienced a true centennial event with significant losses on both stocks and bonds, which hit pension customers with negative returns.

“This happened on top of a decade of unusually high returns. The pension customers were therefore well prepared for the turmoil in 2022."

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