Icelandic pension fund Festa's liabilities were 2.6 per cent greater than its assets at the end of 2025, despite an improvement in net assets during the year, its annual report has revealed.

The report showed the actuarial position of the fund, with its net assets at the end of 2025 totalling approximately ISK 346.5bn.

This represented an increase of 8.3 per cent year-on-year, equivalent to around ISK 26.6bn.

The net assets of Festa’s mutual insurance division were ISK 344.3bn, while its private equity division's net assets totalled ISK 2.2bn.

In the mutual insurance division, the net nominal return was 5.3 per cent and the net real return was 1.5 per cent in 2025.

The net nominal return of savings option 1 in the private equity division was 5 per cent and the net real return was 1.3 per cent, while the net nominal return of savings option 2 in the private equity division of the fund was 5.5 per cent and the net real return was 1.7 per cent.

During the year, 20,586 Festa members paid premiums totalling ISK 18bn, an increase of 5.7 per cent year-on-year.

Pension payments during the year amounted to ISK 9.1bn, an increase of 10.5 per cent from the previous year, while the total number of pensioners was 13,211.

At the pension fund’s annual meeting, proposals for amendments to the fund's articles of association were submitted and approved.

Amendments to the fund's articles of association will enter into force after receiving confirmation from the Ministry of Finance and Economic Affairs.

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