Regulatory Alerts2026-05-05
Generally declining profitability in 2025 for financial companies
The Danish Financial Supervisory Authority released its 2025 "The Sector in Numbers" report, revealing that overall profitability across Danish financial companies declined compared to 2024, with property and casualty insurers being the sole sector to achieve improved results. Credit institutions maintained relatively high earnings despite a dip, driven by increased business and real estate lending, while life insurers and cross-sector pension funds reported lower profits as market-linked products now constitute 60 pct. of provisions. Fund management companies experienced reduced equity earnings but higher bond revenues, and Danish UCITS funds continued growing assets under management, predominantly through higher-cost active management strategies.
Press Release 05-05-2026
Overall, across the financial sector, Danish financial companies had lower earnings in 2025 than the previous year – except for property and casualty insurance companies, which achieved a better result. This is shown in the Danish Financial Supervisory Authority's latest publication of the statistics "The Sector in Numbers", which provides an overview of the development in selected companies in the financial sector. "The Sector in Numbers" collects key figures from annual reports from credit institutions (banking and mortgage credit institutions), property and casualty insurance companies, life insurance companies and cross-sector pension funds, fund management companies, and UCITS funds. The publications contribute an overview of the development across company types.
Main trends in the 2025 annual reports:
Credit institutions' earnings fell, but remain relatively high compared to recent years. Lending increased, particularly from the largest institutions. The increase was driven by increased lending to businesses, including an 8 pct. growth in lending to the real estate sector.
Property and casualty insurance companies had an improved result, driven by a strengthened insurance technical result.
Life insurance companies and cross-sector pension funds had a lower result. Market-linked products continued their growth and now account for 60 pct. of provisions.
Fund management companies had lower earnings, particularly in the equity area, while revenues from bond products increased.
UCITS funds in Denmark continued to grow in assets under management. Danish UCITS are dominated by active management, which generally has higher cost levels than passively managed funds.
The Sector in Numbers: Credit Institutions
The Sector in Numbers: Property and Casualty Insurance Companies
The Sector in Numbers: Life Insurance Companies and Cross-Sector Pension Funds
The Sector in Numbers: Fund Management Companies
The Sector in Numbers: UCITS
Contact
Niki Saabye Head of Department for the Economic Secretariat
Email: nis@ftnet.dk
Tel: +45 33 55 82 60
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