The National Bank of Denmark reported that Danish insurance and pension companies achieved a return of DKK 344 billion in 2024, bringing the nominal return over the past two years to DKK 675 billion and almost recovering the loss recorded in 2022. The 2022 loss was mainly driven by capital losses in financial markets linked to inflation and rising interest rates. Gains in 2024 were primarily driven by the US stock market, with more than half of the year’s pension return coming from listed US equities, particularly technology shares such as NVIDIA, Apple and Amazon. US investments account for around a quarter of total pension investments, giving them a significant influence on Danish pension returns, and higher returns also lift government revenues via the pension return tax (PAL tax).
National Bank of Denmark 2025-01-31
National Bank of Denmark reports Danish insurance and pension companies generated DKK 344bn return in 2024 driven by US equities
The National Bank of Denmark reported that Danish insurance and pension companies achieved a return of DKK 344 billion in 2024, nearly recovering the loss from 2022. Gains were primarily driven by US stock market investments, particularly in technology shares like NVIDIA, Apple, and Amazon. US investments, comprising about a quarter of total pension investments, significantly influence Danish pension returns and government revenues via the pension return tax.