DENMARK - Despite dwindling employment levels in Denmark, PensionDanmark's premium income rose 2% year-on-year in the first nine months of the 2009, thanks to a hefty increase in pension transfers moving to the firm.
The Danish labour market pension provider reported premium income of DKK7.6bn (€1bn) in the first three quarters of the year, up from DKK7.5bn in the same period last year.
"Falling employment has contributed to a fall in ongoing premiums, while transfers from other pension schemes have increased strongly," said PensionDanmark.
Total assets under management were up 18% year-on-year at DKK84.1bn from DKK71.4bn. The investment return after tax was 7.1% for the nine months, up from a loss of 5% in the year-earlier period.
"Since March 2009, share and corporate bond prices have risen steeply, in line with the reaction of the financial markets to the monetary and fiscal support packages and the stabilisation of the global economy," commented PensionDanmark.
"In the first three quarters of the year, PensionDanmark achieved a pre-tax return of 11.4% (9.7% after tax) on members' old-age pension savings," said the firm's latest financial update. "The result had been boosted by the investments in quoted equities as well as corporate bonds, which returned 24% and 31% respectively up to 30 September 30."
Administration costs rose from 1.9% to 2.1% when seen as a percentage of premiums, and PensionDanmark forecast this figure would end the full year at 2.2%, albeit costs are said to be have been "kept at a competitive level".
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