Reduced investment income in the first half of 2025 has contributed to a somewhat lower return amongst Norwegian pension funds and life insurance companies, analysis from the Financial Supervisory Authority of Norway has revealed. 

The figures showed that lower income from investments contributed to the annualized return on the collective portfolio of pension funds being cut from 11.2 per cent in the first half of 2024 to 7.6 per cent in the first half of 2025.

For private pension funds, the return fell from 12.3 per cent to 7.4 per cent, while for municipal pension funds the return fell from 10.0 per cent to 7.7 per cent.

This was primarily driven by market fluctuations. As of June 30, 2025, pension funds' share of equities in the collective portfolio was 42 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 43 per cent and 41 per cent, respectively. 

Life-insurance company returns were also hit by lower income from investments, with negative changes in the value of shares contributing most to reduced investment income in life insurance companies.

In the group portfolio, the annualized return was 6 per cent in the first half of 2025, compared to 7.6 per cent in the same period the previous year, while the return in the investment choice portfolio was reduced from 18.8 to 10 per cent.

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