The average coverage ratio of the Dutch pension sector increased by 3.4 percentage points to 119.6 per cent in Q1 2025, despite a fall in investments amid recent market volatility, analysis from the pensions regulator De Nederlandsche Bank (DNB) has shown.

Figures from DNB showed that the value of the liabilities decreased more than the value of the investments during the first few months of the year, as while total investments decreased by 5.8 per cent to €1,589bn, total liabilities decreased by 8.5 per cent to €1,328bn.

DNB explained that liabilities benefited from the interest rate increase, pointing out that while investments also decreased partly as a result, this decrease did not outweigh the larger decrease in liabilities.

The coverage ratio is also above the level of 116.7 percent of a year ago.

The DNB confirmed that the policy coverage ratio also rose by 0.6 percentage points, to 117.8 percent.

Shell Pension Netherlands, however, has also shared its latest funding update, revealing that March was a "turbulent month" for the Shell Nederland Pensioenfonds Stichting (SNPS) scheme.

The group confirmed that its return portfolio investments achieved a negative return of -1.6 per cent in the first 3 months of this year.

However, it confirmed that the diversification in the portfolio helped to limit the loss, as had its hedging of the dollar risk, which mitigated the negative effect of the depreciation of the dollar against the euro.

Whilst the "relatively safe" investments in the interest portfolio also showed a small negative return of -0.3 per cent, the scheme clarified that the investments in mortgages and credit bonds helped to limit the loss.

It also echoed the messaging from DNB, confirming that the recent higher interest rate means that savers can buy a higher pension.

"So it is not the case that the negative return of the portfolio translates one-on-one into a lower pension payment," the group said.

Shell Pension NL previously confirmed that it would be standing by its investment policy despite market volatility, emphasising that its investment policy remains focused on the long term.

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