Norwegian pension funds’ average return in 2025 was 8.4 per cent, down from 10.2 per cent in 2024, which was described as “somewhat lower” by the Financial Supervisory Authority of Norway (Finanstilsynet).

Publishing annual figures for pension funds and insurance companies, Finanstilsynet said that reduced investment income in 2025 contributed to the lower return.

Specifically, it said changes in the valuation of shares contributed the most to the reduced investment income for both pension funds and life insurance companies.

Private pension funds reported a return of 8.5 per cent during 2025, down from 11.1 per cent, while municipal pension funds saw their return drop from 9.4 per cent in 2024 to 8.3 per cent in 2025.

At the end of 2025, pension funds' share of equities in the collective portfolio was 43 per cent, about the same level as at the end of 2024. For private and municipal pension funds, the share of equities in the collective portfolio was 44 per cent and 41 per cent, respectively.

In the group portfolio, life insurance companies' average return was 7 per cent in 2025, compared to 7.3 per cent in 2024. The return for the investment choice portfolio dropped from 14.8 per cent in 2024 to 11.8 per cent in 2025.

Finanstilsynet said interest-bearing securities measured at amortised cost accounted for the largest share of life insurers’ collective investment portfolios, at 38 per cent, while equities represented 27 per cent, unchanged from the previous year.

In terms of profit, the non-life insurance sector’s profit before tax amounted to 20 per cent of insurance revenues in 2025, compared to 26.2 per cent in 2024.

The regulator said the lower overall profit is mainly due to reduced investment income. At the same time, profit from insurance operations improved from 10.1 to 14.5 per cent.

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