The National Bank of Denmark published insurance and pension statistics for December 2025 showing the sector delivered a total investment return of DKK 225 billion in 2025, with performance driven by foreign equities, particularly US technology stocks, and gains from currency hedging of US dollar-denominated investments. The US dollar depreciated during 2025, which created exchange-rate losses on dollar assets but increased the value of hedging contracts used to protect against dollar depreciation. Currency hedging contributed DKK 87 billion to the 2025 return, implying DKK 137 billion of return excluding currency hedging. Over the year, dollar hedging rose from 70.7% in November to 72.2% at end-2025; the release also notes hedging tends to generate gains when exchange rates fall and losses when exchange rates rise, as in 2021 and 2024.
National Bank of Denmark 2026-02-02
National Bank of Denmark reports DKK 225 billion 2025 pension return driven by foreign equities and US dollar hedging
The National Bank of Denmark reported that the insurance and pension sector achieved a total investment return of DKK 225 billion in 2025, driven by foreign equities and currency hedging gains, particularly from US technology stocks and US dollar-denominated investments. Currency hedging contributed DKK 87 billion, with hedging levels increasing from 70.7% in November to 72.2% by year-end.