Statistical news focuses on the latest figures and trends in Danmarks Nationalbank’s statistics. Statistical news is targeted at people who want quick insight into current financial data.
This year's pension return driven by equities and currency hedging
The insurance and pension sector delivered a total return of kr. 225 billion in 2025. This year’s return has been driven by foreign equities – particularly U.S. technology stocks – along with gains from currency hedging of dollar‑denominated investments. The U.S. dollar depreciated during 2025, leading to exchange‑rate losses but also an increase in the value of the financial contracts that insurance and pension companies have entered to protect against dollar depreciation. Currency hedging contributed kr. 87 billion to returns this year. Without currency hedging, the annual pension return would have been kr. 137 billion. In general, currency hedging provides positive returns in years when exchange rates fall and conversely results in losses in years when exchange rates rise, as was the case in 2021 and 2024. Overall, the insurance and pension sector increased its dollar hedging from 70.7 per cent in November to 72.2 per cent by the end of 2025.
Currency hedging has mitigated dollar exchange‑rate losses in 2025
Note:
Total investment returns of Danish insurance and pension companies. The return excluding currency hedging is calculated by subtracting gains on currency derivatives from the total return. Find the chart data here.