On July 21, we will be leaving our current premises at Kopargøta 1, where we have been located for many good years. It is with mixed emotions, both gratitude and excitement, that we move on to a new chapter.
We will be closed for summer holidays from monday, july 21 to friday, august 1
We will open on August 4 in our new premises at Óðinshædd 11.
You will find us on the 3rd floor of Óðinsbrú.
We look forward to continuing to provide you with excellent service in our new and modern facilities.
52 people participated in the competition, and over a hundred suggestions were submitted. Norse mythology — especially the god Óðinn — was a recurring theme among many of the proposals.
We are overwhelmed by the great interest and want to thank everyone who took the time to send us their suggestions,” says Angela Lindenskov á Bøgarði, marketing coordinator at LÍV.
Although many of the name suggestions were good, none were quite precise enough. The judges had the authority to choose from the pool as they pleased — but they also had the option to select none. Nevertheless, they were inspired by the many great proposals, and from that, a new name emerged.
“The name is Óðinsbrú, and it fits well with the location. ‘Brú’ is, of course, an old form of the word for ‘bridge’, and the building stands tall on the hilltop, where it somewhat resembles a ship’s bridge. One can imagine Óðinn standing at the helm, gazing out over Nólsoyarfjørður,” Angela explains.
While no name was directly chosen from the submissions, the logo competition had a different outcome. Among all the elegant logo ideas, one stood out immediately. In its striking simplicity, the logo felt modern, while the classical color scheme gave it a sense of dignity.
“As seen in the image, the line above the ‘O’ doesn’t slant but is horizontal. This breaks orthographic rules but opens up new interpretations. While a slanted line suggests tension, a horizontal one symbolizes balance, precision, and security — perfectly reflecting the purpose of the building, where Norðoya Sparikassi and we at LÍV will soon be located,” Angela notes.
Henry á Fríðriksmørk won the logo competition and says the following about the design:
“Viewed purely as shapes, the logo is simply a circle and a line. Some might think of binary data (zeros and ones), others may see a golden crown and think of money. Perhaps someone even sees a hint of something sacred — like a halo or a royal crown. I wanted the logo to be open to interpretation.”
The logo will become part of the visual identity of the new building, which will be named Óðinsbrú. And it must be said, the name and logo complement each other well, as together they represent leadership, vision, and security — the very key values of LÍV and Norðoya Sparikassi, who work with life insurance and manage others’ finances.
“We’ve already grown used to the new name and logo, so now we’re just looking forward to moving in on August 4,” concludes Angela Lindenskov á Bøgarði, marketing coordinator at LÍV.
A Good May for the Stock Market
After a strong performance in mid-April, the growth in equities continued in May. Global stocks delivered a solid return of 5.8% for the month, which reduced the annual decline to -3.9%. And now, in early June, global equities are nearly back to the same level as at the beginning of the year. Technology and industrial stocks, in particular, performed well in May. Stocks that are typically less affected by economic cycles delivered more moderate returns. The growth in equities was observed in many parts of the world, especially in the USA, which for the first time this year showed the highest growth. Danish, Nordic, and European stocks, however, have performed the best so far this year.
Interest rates rose in May. As a result, the return on short-term bonds was close to zero, while long-term bonds experienced negative returns. The strong performance in the stock market also had a positive effect on corporate bonds and high-yield bonds, which rose between 0.5% and 1.2% over the month.
The US dollar has weakened significantly this year but changed little in May. Prices for several commodities, especially metals, increased after being low in April. Despite higher supply, the oil price also rose slightly.
Why the Improvement? Delayed Trade Measures, New Fiscal Policy, and AI Growth
In recent months — especially in April, May, and early June — investors have become more optimistic about the prospects for economic growth. This optimism has strengthened both stocks and corporate bonds, although it has also pushed interest rates slightly higher.
The new optimism comes from several developments. US President Donald Trump delayed plans to impose very high tariffs on imported goods for 90 days. Additionally, US courts have overturned the highest tariff rates that were implemented by presidential order. This has boosted confidence that the trade conflict between the US and especially China and the EU may not be as severe as many feared.
Furthermore, strong earnings reports from tech giant Nvidia have reinforced hopes that investment in artificial intelligence will continue at a strong pace.
Adding to this, the Trump administration has reversed course on fiscal policy and is now pursuing expansionary measures instead of trying to reduce the large federal deficit. There are also clear signs of a more flexible monetary and fiscal policy in both Asia and Europe.
What Now? The Good, the Rather Bad, and the Ugly Scenarios
As mentioned in last month’s market analysis, it is possible — to a large extent — to divide forecasts from international financial institutions into three different global economic scenarios for the next 3–12 months:
The Good Scenario:
The worst of the trade war is behind us, and in the coming days and weeks, a rapid de-escalation will occur. Trade agreements will gradually be reached between the US and its partners, and the high tariffs that have harmed global trade will be reduced.
The global economy begins to grow again after a brief downturn due to trade uncertainty. Corporate profits rise again, and default rates on bonds remain low. As tariffs fall, inflation drops accordingly and approaches the targets of both the Fed and the ECB (around 2%). This allows interest rates to remain stable or even decline.
If the good scenario becomes reality, we can expect new highs in the stock markets and good returns — both in corporate bonds and traditional bonds.
The Rather Bad Scenario:
Another group of investors believes a longer period of uncertainty lies ahead, with no clear direction for the equity and bond markets over the next year.
These investors expect it will take many months to reach agreements between the US, China, and the EU. On the one hand, companies and investors may become hopeful about the negotiations themselves, but on the other hand, the uncertainty about their duration and outcome could dampen growth, earnings, and investment for several quarters. This would also limit the US Federal Reserve’s ability to cut interest rates.
The Ugly Scenario:
The third group — the most pessimistic investors and financial institutions — believe we are already in what is called a “bear market,” where major declines in stock prices are to be expected. In a typical bear market, declines are moderate; but in a structural bear market, like during the 2008 financial crisis or the dot-com bubble in 2000, losses can be as steep as 50%.
Such downturns usually last between 1½ and 4 years, and it can take anywhere from 5 to 20 years to recover the losses.
The pessimists believe the US might succeed in securing a few minor trade agreements, but that major deals with China and the EU will take longer — or might not happen at all. This would lead to economic stagnation and push the global economy into a worldwide recession.
This would mean major write-downs in asset values, more bankruptcies, higher unemployment, and rising inflation — a situation that makes it very difficult for central banks to ease the economic crisis.
With the highest contributions to pensions and insurance so far, the year 2024 has gone well – for both the company and the customers of P/F Tryggingarfelagið LÍV.
The year 2024 was successful – for both the company and the customers of P/F Tryggingarfelagið LÍV.
The financial market performed well in 2024, just as it did in 2023. The company achieved a total return on its investment assets of DKK 356.5 million. Customers with market-based returns saw returns between 6.82% and 19.08%. The return depends on the level of risk chosen by the customer. Customers with the lowest risk received a return of 6.82%, while customers fully invested in equities received a return of 19.08%. The average customer with 15 years until retirement received a return of 10.20%.
Customers with medium risk at LÍV received a slightly better return than corresponding customers at Danish pension funds after tax. The company is pleased with that.
Contributions to pensions and insurance totaled DKK 453 million – the highest to date. Contribution growth compared to 2023 was approximately 9.2%.
The trend in customer acquisition and contributions has laid the foundation for the company to reduce the administration fee for customers with market-based returns. The administration fee was reduced from 3% of contributions to 2.5% as of January 1, 2025.
“Solidarity, where more shoulders bear the burden, should benefit the customers who own the company. Therefore, the administration fee for customers with market-based returns will be lowered once again, effective January 1, 2025,” says Jan Jakobsen, CEO of Tryggingarfelagið LÍV.
As we enter 2025, dark clouds are gathering over the financial markets. Uncertainty is greater than usual, and a possible trade war among several of the world’s major economies looms. This creates uncertainty, which has already been reflected in the financial markets during the first months of 2025.
Below are the key figures for the 2024 financial statements, which were approved at the annual general meeting on April 30, 2025:
Insurance premium
Benefits paid
Result from investment activity
Net result after tax
Equity
Total assets
453,3
162,8
353,0
12,7
185,7
4,657
At the annual general meeting on April 30, 2025, Hanna í Horni (vice chair), Kári Petersen, Súni Selfoss, and Árni Arge were re-elected. The chairman, Høgni Olsen, had announced that he would not stand for re-election. In his place, Árni Ellefsen was elected. The company thanks Høgni Olsen for his contribution over the past eight years as chairman of the board and likewise congratulates Árni Ellefsen on his election.
P/F LÍV, the life and pension insurance company, also held its annual general meeting on April 30, 2025.
Finn Danberg was re-elected and continues as chairman of the board, and Gunnleyg Árnafjall was re-elected and continues as vice chair. Kári Petersen and Árni Arge were also re-elected as board members. Høgni Olsen did not run for re-election, and in his place, Árni Ellefsen was elected.
LÍV 3 is a closed company that does not establish new pension agreements. The company has insurance agreements with benefit guarantees, for which the Government of the Faroe Islands provides backing.
The company had a good year in 2024. The result from investment activities yielded a return of just under DKK 214 million. The company holds investment assets amounting to approximately DKK 1.978 billion.
The net result after tax was DKK 126.4 million. Total insurance premiums for existing insurance agreements amounted to DKK 37.3 million in 2024.
Based on the company’s benefit obligations to its policyholders, the parent company has a negative equity of DKK 479.4 million as of year-end 2024.
The 2024 annual reports can be viewed here.
Global stocks fell by a full 7.5 percent in March, and the decline has continued into early April. This brings the total drop since the beginning of the year to 15.9 percent. The losses have been greatest in U.S. stocks, with a weaker dollar also dragging down tech stocks and cyclical stocks. Stocks that are less affected by economic fluctuations, as well as value stocks, have experienced the smallest declines.
On the other hand, the price of safe government and mortgage bonds has increased, as both long- and short-term interest rates have dropped. Market turmoil has gradually also spread to corporate bonds, but here the losses have been very limited.
Prices of commodities such as oil, copper, gold, and silver have fallen significantly.
On April 2, U.S. President Donald Trump significantly increased tariffs on all goods imported into the U.S., far more than expected. China responded with equally high retaliatory tariffs on U.S. exports to China, while the EU is preparing its own countermeasures against the U.S.
All of this increases the risk of a global trade war and an international economic downturn, with negative GDP growth, lower company earnings, inflation, and rising unemployment. The tariff hikes have the same effect on American consumers as a tax increase. At the same time, much business activity is coming to a halt, as companies are waiting for clarity on the future of global trade arrangements.
Therefore, all economists agree that the longer the uncertainty about trade wars and retaliatory tariffs continues, the greater the damage will be to economic growth and corporate earnings.
In the near future, attention will be focused on whether agreements can be reached between the three major economic powers, which could reduce uncertainty. That would be very positive for the stock market, corporate bonds, and commodity prices.
Right now, there are no signs of goodwill from the Trump administration, but many investors hope that pressure from an increasingly dissatisfied business sector in the U.S. and from Republican politicians will persuade Trump to reconsider and lower tariffs again.
We will soon be moving into a new headquarters at Óðinshædd.
Therefore, we are organizing a competition for a name and logo. If you have suggestions for what the new headquarters at Óðinshædd should be called or ideas for a logo to decorate the building, you have the opportunity to participate in the competition.
The new building has three floors. Norðoya Sparikassi and LÍV will lease the bottom and top floors, while the middle floor will likely be a co-working space, ideal for smaller companies and businesses.
We envision the building having a short, catchy name and a logo that suits the activities in the building.
Anyone can participate in the competition, and there is no limit to how many suggestions you can submit. There is no requirement to submit both a name and a logo; you can submit suggestions for either one or both.
A prize of DKK 5,000 will be awarded for the best name, and DKK 5,000 for the best logo.
A judging panel will be appointed to assess the suggestions.
The panel reserves the right to freely choose between the suggestions, including selecting none, as well as to modify and/or combine different suggestions.
Send your suggestion with an explanation to kapping@liv.fo before April 14, 2025.
Please include your name, address, and phone number in the email.
By participating in the competition, you grant LÍV permission to use, modify, and publicly release the name, logo, and any related material (such as advertisements or descriptions) without consent or compensation.
From Positive Returns in January and February to a Market Decline in Early March
In January and February 2025, returns on both equity and bond markets were positive, but in March, the market quickly turned the other way with a decline in prices. Financial markets change as a whole, and it can happen several times a year that the market goes up and down like this.
Global equities returned 2.3% in the first two months of the year, and after a strong February, Danish equities increased by 4.2%, while Nordic equities rose by as much as 10%. Besides Nordic equities, European and Chinese stocks have also grown significantly, while the large American technology stocks – the so-called Magnificent-7 – which have declined significantly in recent years, have fallen.
The drop in the dollar has also impacted equity returns, as American equities, traded in dollars, make up 65% of the global equity index.
Interest rates, particularly on short-term bonds, dropped slightly at the start of the year. And despite historically low yields compared to safe government bonds, there was significant demand for corporate bonds.
These conditions led to returns of 0-2.6% on various bond types. In March, the trend reversed. Now, there is a decline in both equity and bond markets, and the strong returns from the beginning of the year have turned negative. At the same time, changes have occurred, especially in equity markets, with certain stocks performing better now; for example, European, Chinese, value stocks, and defensive stocks, which are less sensitive to economic fluctuations, while particularly the large American technology stocks are dragging down the market.
Why? Trump/Musk Turmoil and Changes in the Stock Market
Several reasons seem to explain the market decline and the changes in equity markets:
While the outlook for the U.S. is weakening, conditions are improving in Europe and China. Not least, because the upcoming government in Germany (CDU/CSU and SPD) plans a huge growth and defense package. However, it is still uncertain whether this will be approved, but if it happens, it would be very positive for German and European equities.
Investors are now focusing on cheaper value stocks, also called “value stocks,” outside the U.S., and at the same time, there is growing concern about growth, with increasing interest in stocks that are less affected by economic fluctuations.
While the unusually large German growth package made a positive impact on equity markets, there is also a large interest rate gap and falling prices in the bond markets. If the package is approved, it could lead to increased growth, inflation, and public debt in Germany, which would negatively affect the bond markets.
What Now? Politics/Geopolitics, Key Indicators, and Companies in Focus
Politics has a significant influence on financial markets these days, and with numerous statements, tariffs, the war in Ukraine, and other factors in mind, it is likely that this will continue in the near future.
If stability returns, it could ease market concerns, while attention will also be focused on whether the growth package in Germany will be approved.
Investors will also be keeping an eye on AI development, economic fluctuations, and the monetary policies of large central banks in the near future, and these, along with the upcoming first-quarter earnings reports from companies, will be crucial for future returns.
LÍV and Norðoya Sparikassi Move into New Building at Óðinshædd in Tórshavn
LÍV is building a new building, and it will be completed in the summer of 2025. The new building has three floors. Norðoya Sparikassi and LÍV will lease the lower and top floors, while the middle floor will likely become an office hotel, which is ideal for smaller companies and businesses. The building meets all modern requirements, with a focus on sustainability. Renewable energy will be used to heat the building, which is constructed with materials requiring minimal maintenance. For the tenants, attention has been paid to lighting, air quality, and sound conditions. There is also work being done to possibly install solar panels on the roof.
The business of Norðoya Sparikassi in Tórshavn has grown significantly since the branch opened in 2007. Although relocating is challenging, Norðoya Sparikassi will get a modern building, not far from the current location.
“In the process of finding new premises, it quickly became clear that this building would meet the needs of the savings bank for the future. Additionally, the new building will allow customers to access more financial services in one location,” says Marner Mortensen, CEO of Norðoya Sparikassi.
LÍV has been located at Kopargøta for many years but has wanted to move to more modern facilities for the benefit of both customers and employees.
“It will be an emotional move from Quillingsgarður, but the new building will provide the company with new opportunities and improve accessibility to the company,” says Jan Jakobsen, CEO of LÍV.
Since the building will have multiple tenants, the plan is to organize a naming competition for the building. This will support the identity of the building and make it easier to know where it is located and what activities will take place there.
For more information, please contact Arnfinnur Gudjónsson at 231112.
Positive Start to the Investment Year 2025 with European Stocks Leading the Way
2025 started well on global financial markets. International stocks rose by a full 3 percent in January, bond yields were around zero, while riskier credit bonds (corporate bonds and high-yield bonds) had returns between 0.5 and 1.3 percent.
European and Nordic stocks, in particular, have had a strong start to the stock market in 2025, growing by 6.5 and 4.8 percent respectively in January. Stocks in China have also risen significantly in value. Danish stocks disappointed once again with a drop of 0.2 percent, but the trend seems to have improved at the beginning of February. The large American technology stocks – the so-called Magnificent-7 – which have performed very well in recent years, have, on the other hand, fallen somewhat.
In the bond market, the difference between short-term and long-term yields grew in January, as short-term yields dropped slightly, while longer-term yields increased a bit. Demand for corporate bonds was positive last month, even though the extra yield compared to safe government bonds is near an all-time low.
Many raw material prices increased even more in January, with the price of gold and silver rising significantly.
Why? Trump Brings Joy, Uncertainty, and Conflict Regarding the Future
Although the presidential change in the USA has led to greater financial and geopolitical uncertainty, the returns in January have been good. Threats of tariffs on trade agreements also create uncertainty among investors, as do plans for large savings in the public sector in the USA.
There is broad agreement that a global trade war will hurt the world economy, especially the stock markets. However, the market currently expects that the threats of tariffs and possible retaliations from trade partners of the USA will not be too severe. On the other hand, it is expected that Trump will lower the corporate tax rate further and remove many regulations that particularly investors in stocks appreciate.
The progress of large US technology stocks has slowed a bit. This is due to very high valuations, disappointing earnings, and news that China is developing cheaper technology models that could compete with the highly expensive American models.
Investors are therefore concerned that technology will not generate as much revenue as expected due to the tough competition from China.
The US economy continues to grow, despite some signs of weakness in the construction sector. Growth in the European economy is somewhat lower, and the same is true for inflation. As a result, the US Federal Reserve has stopped its interest rate cuts, while the European Central Bank continues its rate cuts, which benefit short-term rates in Europe and Denmark.
Everything Still Awaits Trump
Investors worldwide have been waiting eagerly to find out what policies Donald Trump would introduce after he took office again as president on January 20. Much has been revealed now, but there is still significant uncertainty regarding his real plans in the major political areas that matter for financial markets. This applies to both the handling of public savings, the use of tariffs on trade agreements, and how these will be responded to. Not least, how the EU and China will react.
It can be said that the market knows more now, but still not much. Therefore, political statements from Donald Trump in the coming time will continue to create ripples in currency, stock, and bond markets.
There will also be focus on the economic trends in the US and Europe, the monetary policy of the Fed and ECB, and how the Chinese government manages the slowdown in the Chinese economy and the serious downturn in the housing market.
Furthermore, technological development may become very important, and here are two possible scenarios:
Positive Scenario:
Most technology executives in the US do not believe that cheap Chinese technology models, such as Deepseek, will undermine their ability to generate profits. On the other hand, cheaper access to technology will increase demand, and thereby keep both profits and stock prices up.
Negative Scenario:
Many technology experts and economists believe that the US tech giants are investing too much in technology and other areas like computer chips, data centers, networks, and so on. This could be compared to the late 1990s, when large investments in the internet led to economic downturns.
Therefore, it is expected that the financial markets will closely watch Trump, technological developments, economic trends, and monetary policies of the major central banks, which will be crucial for the returns in the coming months.
LÍV and the Book Club of the Teacher’s Association of the Faroe Islands today signed a three-year agreement, which means that LÍV is the main sponsor of the Book Club in the Faroe Islands.
The Book Club works purposefully to provide children with exciting and relevant books in the Faroese language.
As a member of the Book Club, you receive eight books per year, and you will always get a book that is tailored just for you.
Reading helps stimulate children’s language development, and the Book Club supports this from an early age all the way through adolescence.
Just as reading from a young age contributes to language development, it also improves reading enjoyment, comprehension, imagination, and personal development in children. This is one of the fundamental components of children’s well-being and health.
LÍV is pleased to be the main sponsor of the Book Club in the Faroe Islands and looks forward to a successful collaboration with the Book Club of the Teacher’s Association of the Faroe Islands.
