Great growth in payments and profits at Danica Pension
24 July 2023
Progress on the financial markets produces profit before tax at Danica Pension, which also notes a large growth in premium payments. Investments in green transition are rapidly approaching the target for 2023.
In the first half of 2023, Danica Pension achieved growth in payments of 8.9 percent compared to the same period last year. The result before tax is DKK 689 million against a result before tax of DKK -519 million for the same period last year. The development is primarily due to the fact that the financial markets at the start of 2023 have given nice, positive returns to Danica Pension’s investments.
CEO Søren Lockwood states:
” We have good momentum, where we deliver value to our customers in the form of the market’s best healthcare solutions, strong, long-term returns after costs, proactive advice and a focus on sustainable investments. This makes it extra satisfying to be able to show both a solid profit and good growth. “
Growth in premium payments
Danica Pension’s gross premiums increased in the first half of the year by 8.9 percent from DKK 18,408 million to DKK 20,051 million.
” Corporate customers are increasingly demanding the complete package they can get from us, and seen over a period of several years, we see a clear trend towards continuous growth. By listening to the customers’ needs, we have adapted our solutions to take the best possible care of the customers’ investments and their health, and this is acknowledged in the market, ” says Søren Lockwood.
Stable markets give customers positive returns
” Our long-term investment strategy at the beginning of 2023 has given our customers good returns during a period of significant fluctuations in the markets. I am pleased that the same is the case over a five-year period, which shows that our customers’ money is managed with care and that our portfolio is composed wisely, ” says Søren Lockwood.
Customers in Danica Pension with medium risk and 20 years to pension received a return of 6.1 percent in the first six months of the year. Over the past 5 years, the same type of customer has received a return of 33 percent after costs.
Investments in green transition are approaching a milestone
In order to further contribute to a climate-friendly society, Danica Pension has an ambition to invest DKK 50 billion. DKK in the green transition before the end of 2023. Danica Pension has increased investments in the green transition from DKK 37.7 billion. DKK at the end of December 2022 to DKK 49 billion DKK at the end of June 2023. The increase is due to, among other things, increased investments in green bonds and increased value of equity investments in the green transition.
” An investment target of DKK 50 billion in green conversion is a very ambitious level, and after a 2022 with a sharply declining market, it was certainly not a given that we would reach the target. Therefore, I am very satisfied that in 2023 we have taken seven-mile steps in this area, and this shows that we are very keen to fulfill our role as an investor who takes responsibility for our environment,” says Søren Lockwood.
Sickness and accident business with multiple injuries
The result of the health and accident business is negatively affected by an increase in the number of new injuries. Over a long period, Danica Pension has had a positive development within the health and accident business, not least driven by Danica’s great focus on helping our customers back to work through an improved, holistic effort in all areas of health within treatment and prevention. Danica Pension can, however, note that the general social development, where significant increases in the number of Danes on sickness benefits and in job search and resource processes have been seen over recent years, is now also reflected in the underlying claim development in Danica Pension’s own stock.
In the first half of 2023, Danica Pension had a risk and cost deficit in the health and accident business of DKK 261 million. DKK against a deficit of DKK 88 million. DKK in the first half of 2022. The development is primarily due to the aforementioned development in the number of new injuries.
The fact that Danes are largely turning against private health insurance is also supported by the fact that the number of customers with health insurance has increased by 30 percent over the past year and a half and has now reached around 200,000. The demand for Danica Pension’s health package remains very high, and here the number of customers has reached 150,000, which is a growth of approximately 50 percent over a year and a half.
“We can see that Danes are increasingly demanding and making use of their private health insurance. For us, it means increased pressure on our health efforts when more people in society are affected by illness. But I am delighted that we now cover far more customers, who we can help in this way through our healthcare solutions, which are set up to provide an effort with the customer’s needs in focus,” says Søren Lockwood.
Early health intervention in high demand
The number of consultations in Danica Pension’s ‘Health Package’ increased by 33 percent in half a year compared to the same period in 2022 and numbered 16,908 consultations, which is a clear expression that the Danish population demands the possibility of a quick and early health intervention. The degree of satisfaction with the solution remains high at 93 percent.
The health package was launched at the beginning of 2021 as an additional, preventive element, which aims to get customers to use a doctor, psychologist and dietician online, before the problems grow bigger and into possible, serious injuries.
“The health package gives our customers an extra layer of reassurance because they can address even the smallest concerns before they become big. We can see from the constantly increasing demand that customers can really use that approach in their everyday life, ” says Søren Lockwood.
Source: DanicaPension
