Despite delivering strong results in the first half of 2025, Danish pension providers have raised concerns over the growing number of Danes suffering from mental health issues, warning that this remains a key challenge for the pension industry.

In its interim report, Velliv said that investment returns were satisfactory despite the volatile market experienced during the first half of the year, as customers with medium risk and 15 years to retirement achieved a return of between 1.6 per cent and 1.8 per cent up to the end of June 2025.

According to Velliv, tactical decisions contributed to additional returns for customers, which included an overweight in European equities at the beginning of the year, increased currency hedging against the dollar, and purchases of predominantly US equities in mid-April, when the markets were at their lowest.

Alternative investments also contributed solid excess returns during the period.

As of 15 August 2025, customer returns stood between 3.3 per cent and 4.1 per cent, driven by improved sentiment in the financial markets over the summer.

Fellow Danish pension provider PFA also reported a positive return for the period, which was characterised by a trade war, market turmoil, and a sharply falling dollar exchange rate.

Acoording to its interim report, a typical customer with 15 years to retirement in PFA's recommended investment profile, PFA Medium, achieved a positive and competitive return of 2.1 per cent in the first six months of the year.

However, Velliv said it expects the remainder of 2025 to bring continued turbulence in the financial markets, influenced by the political landscape in the US, general geopolitical uncertainty, and renewed doubts about the strength of the American economy.

This was not the only concern, as although Velliv more than doubled its profit before tax to DKK 656m in the first half of 2025, its interim report found that total contributions were “unsatisfactory”, with a fall to DKK 16.7bn compared with DKK 16.9bn in the same period last year.

Velliv said this result was partly influenced by several tenders settled in 2024, confirming that it has “significantly” strengthened its competitiveness and value proposition for customers at the start of the second half of 2025 as a result.

This included the launch of its new health insurance and a reduction in investment costs at market interest rates by nearly 10 per cent this year.

However, both PFA and Velliv have also raised concerns over the growing number of Danes experiencing mental health issues, arguing that despite progress, claims on the pensions industry remain high.

Both of the providers have been investing in preventive initiatives and faster treatment for customers who fall ill.

Velliv launched a health insurance product aimed at reducing sickness and shortening recovery time, which helped turn Velliv’s risk result into a surplus of DKK 152m in the first half of 2025, compared with a deficit of DKK 320m in the same period last year.

PFA also developed healthcare solutions, including digital access to doctors, psychologists, physiotherapists, and coaches, as well as proactive measures to prevent long-term illness.

In addition to this, PFA has newly signed, among other things, loss of earning capacity coverage in the life business.

The protective measures, in addition to the release of provisions, positive investment returns and an operating deficit mean that,the total result for its overall sickness and accident business is now in balance, with a return of DKK 433m in H1, compared to DKK-250m the year before.

While the operating profit for current policies was - DKK 93m, it is expected to be balanced by the end of 2025 through ongoing initiatives.

And the focus on helping long-term sick customers return to the labour market has proven effective, with 832 customers returning in the first six months of 2025, more than a 5 per cent increase from last year.

However, Velliv warned that stress and other mental health issues continue to rise among both younger and older Danes, creating a growing challenge for society, the pensions sector and Velliv itself.

And despite the improvement on its risk result, Velliv stressed that "it is too early to conclude that the goal of balance has been achieved".

PFA also noted, despite progress, unfortunately, it continues to see a "high" number of new claims amongst customers.

"We are sad that the health situation in Denmark is challenged in many areas, which is also seen in the fact that many of our customers need our help in the health area," PFA CEO, Ole Krogh, said.

"We must constantly develop the help and solutions that we provide to our customers, because the health of the Danes is unfortunately under pressure. This is where we can make the biggest difference in the short term for those of our customers who need help."

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