Danish pension provider PFA has entered into a strategic partnership with insurer LB Forsikring to offer its customers non-life insurance.

The agreement was made possible due to sharing common values and having comparable business models, PFA, Denmark’s largest commercial pension company with about 1.3 million customers, said.

PFA group CEO Allan Polack said in a statement that he is pleased to present the partnership to its customers as it will “give them access to a selection of the best and most attractive non-life insurance plans on the market”.

“This is another addition to the benefits of being a customer with PFA. At the same time, it is very important to us that we enter into a partnership with a well-reputed company and that, like PFA, it is owned by its customers with focus on creating maximum value for them,” he said.

From 1 January 2020, PFA’s customers will get access to house contents insurance, house owner’s insurance and car insurance provided by LB Forsikring but through a new PFA product line.

Through the deal, the pension plan for LB Forsikring’s employees will be transferred to PFA, and its insurance members will get access to PFA’s life and pension products. LB Forsikring is Denmark’s third largest insurance company within private non-life insurance with just under 400,000 members.

LB Forsikring CEO Anne Mette Toftegaard said t has been of great importance to the insurer that PFA is owned by its customers and that PFA's set of values is very similar to its own.

“For LB Forsikring, it is all about ensuring that everything we do will benefit our members. Through this partnership, LB Forsikring can welcome more members, which, over time, will allow us to further reduce the unit costs and also develop new, innovative insurance solutions for the benefit of all of our members.”

PFA said the fact that they will be able to offer its customers non-life insurance products will strengthen customer loyalty. At the same time, LB Forsikring will get access to more members with a view to achieving synergy, economies of scale and greater innovative power for the benefit of all its members.

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