PFA, Denmark’s biggest commercial pension provider, reported a slowdown in business growth in the first half of last year, leading to a dip in full-year contributions.

The development follows strong rises in contributions over the previous two years when PFA took on new company and sector pension schemes.

In its 2014 annual report, PFA said total contributions had fallen at group level to DKK25.3bn (€3.9bn) from DKK25.9bn the year before.

However, ongoing contributions were up in 2014 compared with 2013, at DKK17.2bn from DKK16.1bn, it said.

PFA said: “The level of total contributions was affected by, among other things, transfers in.”

The previous year, 2013, had been marked by an extraordinarily high level of scheme transfers into PFA, it said.

It noted that the new inclusion of the Pension Fund for Pharmacists — Pensionskassen for Apotekere og Farmaceuter — which would bring DKK1.2bn of pension savings to PFA, will take place in 2015. 

“After many big tenders for pension schemes in 2012 and 2013, the pensions market was significantly calmer in 2014, with a lower level of tenders than has been seen before coming from big corporate clients,” PFA said.

This had affected contributions negatively in the first half of last year, it said.

However, the company said that in the second half of the year, business had been very satisfactory.

The investment return for traditional with-profits pensions recovered to 15.3% before pensions return tax (PAL) in 2014, after a loss of 0.9% in 2013.

The unit-link return was less changed, at 10.0% last year, from 9.6% the year before.

Total assets dipped to DKK552bn at the end of 2014, from DKK554bn, with the solvency ratio improving 38 percentage points to 278% over the same period.