Icelandic pension fund Frjálsi has reported a year of growth across key metrics in its 2025 annual results, including a record number of contributing members and a double-digit increase in net assets.

The fund’s net assets reached ISK 594.6bn at the end of 2025, marking an increase of ISK 61.8bn, or 11.6 per cent, over the year.

Within this, assets in the private market investment options totalled ISK 393bn, while assets in the insurance division stood at ISK 201.5bn.

Total premiums rose to ISK 37bn, a 6.2 per cent increase over the previous year.

Frjálsi also recorded its highest-ever number of active contributors, with 28,478 members contributing to the fund in 2025, up from 27,726 in 2024.

The total number of members with accrued rights increased to 75,214, an annual rise of 2,574.

Meanwhile, pension payments rose by 21.5 per cent year-on-year to ISK 13.9bn.

The fund reported a total of 8,084 pension recipients.

In addition, ISK 1.8bn was paid out from supplementary savings to support mortgage principal repayments or residential property purchases.

Lending activity also increased over the year, with 562 new loans issued, totalling ISK 20.1bn.

Of these, 48 per cent were non-indexed loans, while 52 per cent were indexed.

Elsewhere, net investment income for the year amounted to ISK 37.5bn.

Nominal returns across investment options ranged from 5.8 per cent to 8.6 per cent, while real returns ranged from 2.0 per cent to 4.7 per cent.

The fund’s expense ratio declined slightly, falling by 0.02 percentage points to 0.19 per cent, reflecting lower operating expenses and direct investment fees relative to average net assets.

From an actuarial perspective, Frjálsi reported an accrued position of -5.8 per cent at year-end, while the future position stood at 2.9 per cent.

The overall funding position, combining both accrued and future obligations, was -1.6 per cent.

The fund confirmed that its actuarial position remained within legal limits, meaning no changes to member benefits were required.

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