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.

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.