Denmark: Financial Sector Assessment Program: Technical Note: Pensions with Profit Contracts

International Monetary Fund

No 2007/124, IMF Staff Country Reports from International Monetary Fund

Abstract: This technical note examines pensions with profit contracts in Denmark. The Danish life insurance and pension sector is sensitive to a range of risks on both the asset and liability side of the balance sheet. One of the principal vulnerabilities for the sector arises out of the requirement to achieve a high guaranteed return for the duration of “in-force” policies. Although several measures have been implemented to increase provisions and capital, and for hedging interest rate risk through derivatives, the overall risk in the pension sector still needs to be closely monitored.

Keywords: ISCR; CR; yield; return on equity; market yield; guarantied yield; return option; interest rate exposure; investment return; yield environment; guarantee level; net interest rate sensitivity; Insurance; Insurance companies; Pension spending; Pensions; Return on investment; Europe (search for similar items in EconPapers)
Pages: 22
Date: 2007-03-23
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=20600 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2007/124

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().