In the second quarter of 2022, Dutch pension funds saw their average funding ratio improve relative to the first quarter, as the value of their liabilities showed a steeper decline than their assets. Pension assets went down by €190 billion to €1,517 billion, while aggregate liabilities fell by €198 billion to €1,239 billion.
The Dutch pension sector’s average funding ratio came to 122.4%. This represents a 3.6 percentage point increase from the previous quarter (see Figure 1). It is now well above the figure for a year ago, which was 109.4%. The funding ratio reflects a pension fund’s current financial position, expressing the ratio between available assets and liabilities.
The policy funding rate came to 114.7%. This represents a 3.7 percentage point increase from the previous quarter. The policy funding ratio is the average of the funding ratios for the past twelve months. It increased because the funding ratios in the second quarter of 2022 were higher than those in the corresponding quarter of 2021.
We used the following statistics to compile this news release:
Dutch banks risk losses from coastal and river flooding through their loans to businesses. Flood measures such as dykes and storm surge barriers mitigate most of the risk, even as climate change increases flood risks. Without flood measures, expected losses would total more than €2.5 billion a year.
Read more Dutch banks' exposure to flood risks through corporate lending is limited
The market for Dutch green securitisations of residential mortgages and for green covered bonds more than tripled in size in 2023 compared to 2022, DNB figures show, reflecting investor demand for green investments.
Read more Sharp increase in green securitisations in 2023
According to the DNB business cycle indicator, the low point of the economic cycle has been reached, after which economic growth will pick up gradually and at a moderate pace this year.
Read more Turnaround in the economy
In the fourth quarter of 2023, foreign multinationals transferred over €300 billion in conduit activities from the Netherlands abroad. These relocations indicate adjustments in business structures, and may be due to the introduction this year of a minimum tax for these international companies.
Read more Conduit activities in the Netherlands declined in fourth quarter of 2023
