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:
Ke Figures (for the parent company):
Insurance premium
Benefits paid
Result from investment activity
Net result after tax
Equity
Total assets
DKK million
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 lívs –og pensjónstryggingarfelagið (LÍV 3)
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.