Iceland’s Frjálsi pension fund saw a "record number" of contributing members in 2024, increasing from 26,401 in 2023 to 27,726, according to its annual results.

The results also showed that its operations were “successful” in 2024, with its net assets increasing by ISK 78.3bn (17.2 per cent) to ISK 532.8bn.

The net assets of investment plans in the private pension division were ISK 354.3bn, while the net assets of the insurance division were ISK 178.5bn.

Additionally, total premiums amounted to ISK 35.6bn, an increase of 14.5 per cent between years.

According to the results, pension payments increased by 16.9 per cent in 2024, amounting to ISK 9.6bn, while the number of pensioners totalled 7,341.

The number of additional savings paid into the principal of loans or for the purchase of residential housing amounted to ISK 1.7bn, and the number of new loans increased.

During 2024, 276 loans were processed for ISK 8,144m, and of the new loans, 30 per cent were non-indexed and 70 per cent were indexed.

The results also revealed that the fund’s net investment income totalled ISK 54.8bn in 2024.

The fund said its returns were “good” in 2024, as the nominal return on investment plans ranged from 8.9 per cent to 15.3 per cent and the real return ranged from 4 per cent to 10 per cent.

The Fund's cost-to-income ratio, the ratio of operating costs and direct investment expenses to the average net asset position, decreased to 0.21 per cent, compared with 0.22 per cent in 2023.

At year-end 2024, assets over earned liabilities were -4.8 per cent, and discounted future premiums over discounted future liabilities were 2.8 per cent. Total assets over total liabilities were -1.1 per cent.

The actuarial position of the Frjálsi pension fund is within legal limits and therefore no changes need to be made to the rights of fund members.

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