DENMARK - Danica Pension's return on customer funds swung to -3.7% in the first half of this year from +8.5% in the same period last year, hit by falling markets in the second quarter.
The development means the booking of the risk allowance for the first half has had to be postponed, parent Danske Bank said.
"The return on customers' funds was a negative 3.7% in the first half of 2006, against a positive 8.5% in the same period last year," Dankse said. "The return was affected by the falling equity and fixed income markets in the second quarter of 2006, including the lower market value of swaptions to hedge minimum obligations under insurance contracts.
"The negative return on investments resulted in the postponement of the booking of the risk allowance for the first half of 2006."
And the net income from insurance business fell to DKK33m - from DKK721m a year ago - due to a negative investment returns.
As previously announced senior vice president Jørgen Klejnstrup has now joined the board of Danica. "He will be in charge of developing Danica's pension products for sale internationally through the Danske Bank Group's units outside Denmark and of customer service and HR," it said.
Overall, Danske Bank Group recorded a net profit of DKK6.1bn, up from DKK5.9bn