Interest on policyholders' savings

Current interest on policyholders' savings

Interest rate group 1: 1,5 per cent. p.a. (from 1 january 2019) 

Interest rate groups 2-4: 2.50 per cent. p.a. (fra 1. januar 2019)

Read more about interest rate groups

  Interest rate group 0* Interest rate group 1 Interest rate group 2-
 2019 (expected average interest on policyholders' savings)   1,50 2,50
2018 - 2,66 2,50
2017 3,00 2,75 2,50
 2016  2,46 2,00 2,00 
 2015 2,00  2,00 2,00 
 2014 1,85 1,85 
 2013 1,8 1,80 
 2012 1,8 1,80 
 2011 3,36 3,36 
 2010 3,54 3,54 
 2009 2,2 2,20 
 2008 7 7,00 
 2007 6,3 6,30 
 2006 5,18 5,18 
 2005 5,1 5,10 
 2004 5,1 5,10 
 2003 5,1 5,10 

 

 

*Interest rate group 0 was established on 1 January 2015 and was combined with interest rate group 1 as of 1 July 2017

If you are unsure about what interest rate group your pension scheme is placed in, you can check it in Netpension.

From market return to interest on policyholders' savings

The with-profits pension product ensures stable interest on your pension throughout the savings period. The interest is fixed by Velliv and is based on the returns achieved over the past years, the size of the buffers and profit/loss from insurance cover.

Read about the new interest rate, risk and cost groups

 

Per cent 2016 2015 2014 2013 2012 2011
Investment return for the year (customer funds), gross 6,1

0,2

15,6

0,5

9,8

6,9

Investment management costs 1) -0,2

-0,2

-0,2

-0,2

-0,2

-0,2

Investment return for the year (customer funds) 5,9

0,0

15,4

0,3

9,7

6,7

Change in value of insurance liabilities -1,5

1,7

-5,9

2,7

-4,0

-4,4

 Total 4,4

1,8

9,5

3,0

5,7

2,3

             
Transfer to/from collective bonus potential etc. -0,8

0,4

-4,8

-0,2

-1,4

2,2

Operational risk charge for the year -0,7

-0,7

-0,7

-0,7

-0,7

-0,3

Cost and risk results 0,0

0,3

-0,2

-0,1

-0,2

-0,1

Adjustment due to difference in denominator2) -0,4

0,4

-1,8

-0,1

-1,6

-0,6

Interest on policyholders' savings 2,0

2,0

2,0

1,8

1,8

3,4

1) Includes costs relating to the management of the customers' share of the investment assets as well as brokerage, commissions and other transaction costs. The investment management costs only concern the customer funds' share of the investment assets

2) The adjustment is made because interest on policyholders' savings is calculated as a percentage of the customers' savings whereas investment return etc. for the year is calculated on the basis of the market value of the net assets.

Definitions

The with-profits pension product ensures stable interest on your pension throughout the savings period. The interest is fixed by Velliv and is based on the returns achieved over the past years, the size of the buffers and profit/loss from insurance cover.

Investment return for the year (customer funds), gross

This is the gross investment return for the year on all customer funds invested in the with-profits pension product. Customer funds are all amounts saved with Velliv in the with-profits pension environment.

Investment management costs

The costs include transaction costs, asset management and payments to Danish and foreign asset managers with whom we invest.

Investment return for the year (customer funds)

This is the net return for the year on all customer funds invested in the with-profits pension product.

Pension investment returns tax

Pension investment returns tax is payable of the return generated by the customer funds and is payable every year. The tax goes to the Danish State.

Transfer to/from collective bonus potential etc.

The collective bonus potential is a buffer for the customer funds invested in the with-profits pension product. The buffers are used by Velliv every year to offset good or bad returns, making sure that customers receive a stable rate of interest on policyholders' savings throughout the savings period. The buffers include various other parameters such as cost and risk results.

Operational risk charge

The operational risk charge is the charge paid to Velliv's owners for making equity available.

Cost and risk results

The cost result is the profit or loss we get when we calculate the costs of managing the pension schemes. The amount is offset using the buffers. The same applies to a profit or loss represented by the risk result. For the risk result, the difference occurs if more or fewer people than predicted use the insurance cover for illness or death.