Strategic Shift Towards Enhanced Customer Satisfaction
Danica has unveiled a new strategy, effective January 1, 2025, aiming to become the preferred pension company in Denmark by 2028. This strategy emphasizes increasing customer satisfaction through improved digital solutions, accessible health services, and comprehensive pension advisory. A central element is a closer collaboration with Danske Bank to leverage synergies between banking and pension businesses. Danica will also invest in employee development, AI and data solutions, and continue its sustainability strategy. (Source: Årsrapport 2024, Danica Pension, Livsforsikringsaktieselskab, page 4)
Fossil Fuel Investment Restrictions Implemented
As part of the Danske Bank Group, Danica has introduced a new policy for investments in energy companies, effective January 1, 2025. This policy mandates the divestment of investments in energy companies that do not meet the new criteria. The primary criterion for investability is whether a company has a realistic plan to comply with the Paris Agreement by 2030. (Source: Årsrapport 2024, Danica Pension, Livsforsikringsaktieselskab, page 4)
Significant Reduction in Investment Costs
Danica has introduced a new pricing structure for 6,000-7,000 small and medium-sized enterprises (SME), benefiting 70,000 pension customers through cash subsidies and reduced management fees. Conversely, the price of health and accident insurance has been increased to align with actual costs, a change driven by the Danish Financial Supervisory Authority’s requirements to adjust insurance prices due to rising health and accident insurance expenses. (Source: Årsrapport 2024, Danica Pension, Livsforsikringsaktieselskab, page 5)
Name Change to Reflect Broader Service Offering
Effective January 1, 2025, Danica Pension has changed its name to ‘Danica’. This name change signals that Danica offers more than just pension services, including health solutions and broad financial advisory, and reflects how the company is typically referred to internally and externally. The legal name remains Danica Pension, Livsforsikringsaktieselskab. (Source: Årsrapport 2024, Danica Pension, Livsforsikringsaktieselskab, page 6)
New Sustainability Reporting Standards Adopted
Danica’s sustainability reporting for the current year and going forward will adhere to the European Sustainability Reporting Standards (ESRS). The full report is included in this annual report, highlighting key points from Danica’s first CSRD report. (Source: Årsrapport 2024, Danica Pension, Livsforsikringsaktieselskab, page 6)
Climate Goals and Investment Portfolio Impact
Danica’s ambition is to contribute to the green transition and a CO2e-neutral society. The vast majority of Danica’s negative climate impact occurs through its investment portfolio, leading to a commitment to achieve a CO2e-neutral investment portfolio by 2050, in line with the Paris Agreement’s 1.5-degree warming limit. (Source: Årsrapport 2024, Danica Pension, Livsforsikringsaktieselskab, page 26)
Investment in Green Transition on Track
Danica aims to invest DKK 100 billion in the green transition by 2030. As of the end of 2024, DKK 57.4 billion has been invested, an increase of DKK 2 billion from 2023. The exposure to green bonds has significantly increased in 2024, and the 2030 target is expected to be met despite challenges in the green transition. (Source: Årsrapport 2024, Danica Pension, Livsforsikringsaktieselskab, page 32)
Biodiversity Strategy Under Development
Danica does not yet have a transition plan for biodiversity and ecosystems but has a strategy with associated initiatives and targets. This strategy aims to minimize the investment portfolio’s negative impacts on biodiversity and ecosystems and manage related risks and opportunities. The biodiversity strategy is an integral part of Danica’s overall sustainability strategy. (Source: Årsrapport 2024, Danica Pension, Livsforsikringsaktieselskab, page 39)
EU Taxonomy Alignment Disclosures
Danica is obligated under the EU Taxonomy Regulation to report on the extent to which its investment activities are aligned with environmentally sustainable economic activities. As of December 31, 2024, 4.95% of Danica’s investment activities are aligned based on revenue, and 3.54% based on CapEx. (Source: Årsrapport 2024, Danica Pension, Livsforsikringsaktieselskab, page 45)
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