Danish pension provider, Velliv, has posted results of DKK 146m before tax in Q1 2022, a 14 percent increase from the DKK 128m recorded in the same period in 2021, according to the company's financial accounts.

The provider confirmed that current payments increased 16 per cent compared to the same period in 2021, with payments rising by almost 80 per cent since 2018.

Despite these "solid" developments, the provider acknowledged that 2022 has “so far been challenging” in terms of investment, due to high inflation, rising interest rates, and the war in Ukraine.

The accounts revealed that customers with VækstPension Aktiv and Index with medium risk and at least 15 years to retirement received returns of -5.0 per cent, while a similar customer with VækstPension Aftryk saw a return of -5.4 per cent.

However, Velliv clarified that whilst pension customers cannot escape the market turmoil, the losses on pension savings have been limited thanks to a large spread of risk.

Indeed, despite the pandemic and war in Ukraine, customers with VækstPension Aktiv with medium risk and at least 15 years to retirement achieved a return of 29 per cent over the past three years, whilst customers saving into VækstPension Index received a return of 27.3 per cent in the same period.

Commenting on the results, Velliv CEO, Steen Michael Erichsen, stated: “In the first quarter of 2022, we have naturally prioritized the advice of our clients due to the volatile investment markets.

“Even under such conditions, our value proposition with three sources of return and an extraordinary focus on personal advice is extremely relevant.

“In addition, the Velliv Association will pay out DKK 450m this week in cash bonus for Velliv's customers. It is a great pleasure to see the customer-owned business model unfold even in difficult markets.”

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