Danish pension provider Danica has revealed that its pension assets increased from DKK 461bn in the first quarter (Q1) of 2024 to DKK 470bn in Q1 2025, despite negative returns during the first part of the year.

According to its interim results, Danica customers with medium risk and 20 years to retirement received a return of -3.2 per cent in Q1 2025, down from 7.4 per cent in Q1 2024.

Over the past five years, the same type of customer has received a return of 61.3 per cent after costs.

Meanwhile, those customers with Danica Pension Traditional received a return before provisions of -0.4 per cent and 0.9 per cent after provisions in Q1 2025. This is compared to the customers receiving 0.1 per cent before provisions last year in Q1 and 0.5 per cent after provisions.

The company explained that the financial markets have been characterised by turbulence, which resulted in negative returns in the first quarter.

It credited this primarily to the global equity markets, which it said had created a negative, whereas investments in bonds and alternatives have pulled up positively.

Danica CEO, Mads Kaagaard, said: "Our clients' returns have been characterised by turbulence in the global equity markets, but here the breadth of our investment strategy has shown its value by pulling up.

“And if we look at the overall picture over the past five years, our customers can continue to enjoy a high return.

The results also showed that Danica's gross premiums increased by 15 per cent in Q1 from DKK 10,548m to DKK 12,111m, continuing the trend from 2024, when growth was 13 per cent for the full year.

Additionally, the high growth in sales through Danske Bank continues in the same way.

Danica also saw an influx of new customers, which created a high growth for the company.

"In the first quarter, we have welcomed a broad group of new customers in the form of companies in the OMX Copenhagen 25 class to a number of independent companies,” Kaagaard stated.

“I am very pleased because we have now launched a new strategy period, where we aim to create high growth through satisfied customers.

“We work every day to create easy and convenient solutions for our customers, and the high growth is an indication that we are on the right track."

The results also showed that profit before tax was negatively impacted by strengthened provisions of DKK 220m related to life insurance products in liquidation and amounted to DKK 201m, compared with a profit of DKK 492m for the same period last year.

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