Denmark’s Sampension made a loss of DKK 30bn in the first half of the year, its interim results have revealed.

At the end of July, the return for the year for a customer in Sampension with 15 years to their pension was -4.4 per cent. (which is 2.5 percentage points better than Sampension's own benchmark) against -9.4 per cent at the end of June.

Commenting, Sampension CEO, Hasse Jørgensen, said: "After a 2021 that generally offered terrific pension returns for Danes, in the first six months of this year we have experienced headwinds and great unrest in the financial markets as a result not least of rising inflation, interest rate increases and the war in Ukraine. Overall, this has meant that the first half of the year has been difficult in terms of investment, which is also reflected in the return.”

He said that although experiencing losses is never fun, Sampension is one of the companies that has succeeded in limiting losses for customers.

"When we look ahead, there is a prospect that the markets will continue to be characterised by considerable unrest in the shorter term. Because there is still a lot of uncertainty about not least inflation, monetary policy and the risk of a recession. Thus, we probably have to prepare for the fact that the major fluctuations in the markets that we have witnessed so far this year will continue in the coming time, which, all things being equal, must also be expected to be reflected in the return," Jørgensen added.

However, on a more positive note, total payments to Sampension in the first half of 2022 increased by 8 per cent, reaching the second highest level ever, which it said was due to an influx of new business customers.

Total payments amounted to DKK 6.2bn, which is an increase of 8 per cent compared to the same period last year.

"The fact that total payments increased significantly in the first six months of the year and grew to the second highest level ever is very satisfying," Jørgensen said.

In the first half of the year, the number of customers and members in Sampension grew by just over 6,500 to a total of approx. 335,000.

"We are pleased that more and more companies are choosing us as a pension supplier, which underlines our position on the company pension market. Here we are increasingly noticed as a competitive player with an attractive value proposition, where we have fixed low prices for companies – without giving discounts paid by existing customers. It is most fair for everyone," Jørgensen noted.

He adds in this connection that the Danish Financial Supervisory Authority's new SUL order, which came into force at the turn of the year, and which makes it more difficult for pension companies to give discounts to selected customers on health and accident insurance and on investment costs, contributes to Sampension's even stronger position in tender rounds.

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