German pension fund BVV has reported a total surplus of €68m for 2025, stating that it remained financially stable despite a volatile market environment.

The group’s earned premiums rose from €694m to €702m over the year, while its equity ratio remained stable at 7.3 per cent and its net return on investments stood at 2.8 per cent.

BVV said the figures, presented at the annual general meetings of the BVV Insurance Association and the BVV Pension Fund, demonstrated the group’s financial resilience and long-term reliability.

Of the €68m net profit, BVV allocated around €21m to its loss reserve, which it described as a positive outcome given the persistently challenging capital markets environment.

Indeed, BVV chairman of the board, Marco Herrmann, noted that the 2025 financial year had been shaped by “considerable global political uncertainties”, which had a direct impact on economic growth and capital markets.

“The high volatility led to a cautious investment environment in which all institutional investors worldwide operated,” he stressed.

Herrmann also highlighted rising regulatory requirements, particularly those linked to the Digital Operational Resilience Act (DORA), which led BVV to make targeted investments in IT, resilience and infrastructure as part of a time-limited investment phase.

“The result is gratifying: The initial DORA audit by the external auditor revealed no material deficiencies – an outstanding result compared to the market,” Herrmann continued.

“In this challenging environment, BVV has navigated soundly because we think and act with a long-term perspective.

“In all investment decisions, fulfilling our obligations to our members and beneficiaries has always been our top priority.

“With a strong capital base, a broadly diversified portfolio, and professional risk management, we meet the high standards of governance and stability to which we, as a pension fund, are subject.”

The executive board also updated delegates on BVV’s social partner model for the financial sector, with BVV board member, Dr Helmut Aden, saying political support for occupational pensions in Germany had reinforced the group’s strategy.

“The Second Company Pension Strengthening Act and the intention, enshrined in the coalition agreement of the Federal Government, to further strengthen company pension schemes, confirm our approach of offering company pension solutions from a single source as a full-service provider," he said.

“As a major German pension provider, we also participate in the current pension policy debate in Germany through the relevant professional associations and committees.”

Meanwhile, the AGM also saw BVV’s supervisory board re-elected for a further four-year term.

BVV supervisory board chair, Heinz Laber, who has held the role since 2010 and is a former member of the executive board of UniCredit Bank AG in Munich, was confirmed in his position.

Laber also thanked outgoing supervisory board members for their service, including Bettina Kies-Hartmann, who had served on the board for 20 years, Frank Annuscheit, who had been deputy chair since 2014, and Michael Boldt, who had served on the board since 2018.

BVV said the newly elected supervisory board leaves the group well positioned for its next phase of planning, including continued investment in modernisation and digitalisation.

---