Source: Danmarks Nationalbank
Dollar hedging has reduced the loss in 2025
The total return on the insurance companies and pension funds’ investments results in a loss of kr. 4 billion year to date. The return from dividends and interest has been kr. 47 billion in the first five months of the year. At the same time, there have been negative exchange rate adjustments of kr. 4 billion, and currency adjustments have further reduced the return by kr. 47 billion. The majority of the currency loss this year is due to the fact that the dollar exchange rate has fallen significantly since the beginning of March, and approximately a quarter of the investments in dollars are not currency-hedged. Thus, the currency hedging of insurance companies and pension funds has reduced the loss by about kr. 80 billion this year. The currency loss would have been kr. 127 billion without hedging, and the total loss kr. 84 billion.