Pension funds, 2006

Profit before tax for private pension funds amounted to NOK 4.7 billion by the end of 2006, which is 17.7 per cent higher than in 2005. The improvements in the profits were caused by increased premium incomes in form of increased transfers from other pension funds. Municipal pension funds decreased their profit before tax by 10.7 per cent to NOK 644 million due to increased mandatory appropriations to the premium reserve. Municipal enterprises pension funds decreased their profit before tax by 54.7 per cent to NOK 212 million, due to fewer municipal enterprises pension funds in the population. However, if we correct for the decline in number of municipal enterprises pension funds, the profit before tax for these fund were 55 per cent higher than last year, due to increased net financial income from securities and real property.

The pension funds have had a strong improvement in their profits since 2003, which are in line with the development in the Norwegian and in international security markets. Since 2003, the net earnings from securities and real estate have increased by 815 per cent to NOK 4 704 million. However, the realised gains on shares increased by 17.5 during 2006, which contributed to stabilize the net earnings from securities and real estate despite increased losses on the investments in bonds in 2006.

Increased total assets

The total assets for pension funds increased by 12.1 per cent to NOK 155 billion during 2006, mainly due to the improvements in the security markets. Total assets in private pension funds amounted to NOK 116 billion, which is 14.6 per cent higher than in 2005. Municipal pension funds increased their total assets by 13.7 per cent to NOK 33 billion. Furthermore, if we correct for the declining number of municipal enterprises pension funds, the total assets for municipal enterprises pension funds increased by 9 per cent during 2006.

Increased stock of securities

87 per cent of pension funds' total assets consist of investments in securities. The value of investments in equities, units and primary capital certificates amounted to NOK 62.5 billion by the end of 2006, which is 25.7 per cent higher than in 2005. The value of investments in bonds increased by 5.6 per cent to NOK 68.7 billion, while the value of the investments in certificates increased by 26.1 per cent to 3.8 billion during 2006.

Municipal enterprises pension funds invest a relatively higher share of their total assets in equities, units and primary capital certificates than private pension funds and municipal pension funds do. 51.1 per cent of the total assets in municipal enterprises pension funds were invested in equities, units and primary capital certificates. The corresponding figures for private pension funds and municipal pension funds and were 43.3 per cent and 27.5 per cent respectively.

Tables

Published tables