Pension funds, 2007

Profit before tax for private pension funds amounted to NOK 4.7 billion by the end of 2007, which is 1.1 per cent higher than in 2006. Municipal pension funds increased their earnings by 10.7 per cent from 2006 to 2007. The main reason for the increase in profit was higher interest earnings and share dividends in the stock and bonds market. Municipal enterprises’ pension fund earnings before tax were NOK 68 million in 2007; a decrease of 67.6 per cent compared to last year. This strong decrease was mainly due to the decline in other income.

Increased total assets

Total assets for private pension funds increased by 8.3 per cent to NOK 126 billion in 2007 - mainly because of the improvement in the security market. Municipal pension funds increased their total assets by 11.4 per cent, from NOK 33 billion in 2006 to NOK 36.5 billion in 2007. Municipal enterprises’ pension funds increased their total assets by 7.8 per cent in the same period - from NOK 6 billion to NOK 6.5 billion.

Increased stock of securities

Investments in shares for private pension funds increased by 11 per cent from 2006 to 2007, from NOK 50.4 billion to NOK 56.6 billion. Holdings of bonds increased by 10.3 per cent, while primary capital certificates increased by 9.2 per cent to NOK 3.8 billion in the same period.

For the municipal pension funds, investments in shares and participation increased by 21.2 per cent, from NOK 9 billion in 2006 to NOK 11.5 billion in 2004. Bonds increased by 4.6 per cent, to NOK 19.3 billion in 2007, while primary capital certificate investments were NOK 345 million in 2007. Municipal enterprises’ pension funds increased their investments in shares by 3.3 per cent to NOK 3.2 billion in 2007. Holdings of bonds increased by 13 per cent to NOK 2.8 billion in 2007.

Tables

Published tables