DENMARK - The DKK416bn (€55.8bn) ATP achieved profits of DKK7.3bn (€980m) in a strong third quarter, bringing its year to date profits to DKK11.8bn.
The performance represented a 22.5% increase in reserves compared to year-end 2005, and helped boost ATP’s reserves to a total of DKK63.8bn.
The market return before tax on the ATP investment portfolio was DKK17.3bn, or 4.8%, lead mainly by impressive returns from its private equities (15.4%) and listed domestic equities (15.3%) portfolios.
The total market return on listed equities was DKK9.5bn, equivalent to a rate of return of 11.4%.
ATP CEO, Lars Rohde, said he was "delighted" with the result, which he said was almost in line with the full-year result for 2005.
“The ATP Group guarantees both current and future pensioners a lifelong supplement to their state-funded old-age pension," he said. "Therefore, it is gratifying to note that reserves have been boosted by more than DKK 10bn in 2006.”
When viewed in isolation, rising interest rates cost eth fund's hedging portfolio DKK8.2bn after tax, but ATP pointed out that loss was more than offset by a DKK12.4bn drop in pension liabilities.
The ATP Group’s hedging-activity results for the first nine months overall totalled DKK 4.2bn.
During the first three quarters, ATP’s pension payouts totalled DKK5.2bn, up DKK800m on the same period last year.
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