The Norwegian Financial Services Authority, Finanstilsynet (FSA), has reported that pensions companies have seen growing value-adjusted returns due to positive stock market developments in the first half of 2019.

The FSA revealed that the first six months of 2019 has been positive for pension growth, but also for Norwegian banks, which saw a slightly better overall result compared to last year, and the growth in lending to domestic retail customers have slowed, with a decline in consumer loan growth.

For pensions institutions, including life insurance companies and pension funds, higher returns on shares and a decline in long-term interest rates contributed to increased net income from investments in the collective portfolio.

The value-adjusted return, which includes the unrealised changes in value, was 8.5 per cent for life insurance companies and 11.3 per cent for pension funds.

In a press release, the FSA said: “For both life insurance companies and pension funds, the value-adjusted return was higher than in the corresponding period in 2018. The life insurance companies’ reported return in the collective portfolio decreased somewhat, while the pension funds' reported return was at approximately the same level as the corresponding period last year.”

Furthermore, pre-tax profits were close to unchanged for life insurance companies, while earnings in pension funds increased somewhat.

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