The National Bank of Denmark published an update showing Danish insurance companies and pension funds held investments of DKK 5,101 billion at end-October 2025, pushed above DKK 5,000 billion by positive returns in 2025. Year-to-date returns total DKK 228 billion, driven mainly by foreign equities, particularly US technology stocks, and gains on currency hedges related to US dollar exposures. Equities now represent 53% of total investments, up from 35% in 2018, reflecting both higher equity returns relative to bonds and portfolio reallocations from bonds to stocks. In 2025, the sector sold bonds worth DKK 109 billion and bought equities worth DKK 181 billion, mostly in foreign companies. The National Bank links the longer-term shift towards equities to the transition from average-rate products to market-rate products, which typically carry more risk and a higher equity allocation; it also notes that a weaker US dollar reduced unhedged exchange-rate returns but increased the value of hedging contracts.
National Bank of Denmark 2025-12-02
National Bank of Denmark reports insurers and pension funds’ investments exceed DKK 5 trillion as equity share rises to 53%
The National Bank of Denmark reported Danish insurance companies and pension funds held DKK 5,101 billion in investments at October 2025's end, driven by positive returns from US technology stocks and currency hedges. Equities now make up 53% of total investments, up from 35% in 2018, due to higher returns and a shift from bonds to stocks. The transition from average-rate to market-rate products contributed to this shift, despite a weaker US dollar reducing unhedged exchange-rate returns.