Danica Pension posts DKK 1,018m profit for H1 2021

Danica Pension has achieved a profit before tax of DKK 1,018m in the first half of 2021, up from DKK 892m in the same period last year.

Publishing its half-year results, Danica Pension saw a 14.1 per cent increase, equivalent to DKK 126m on the first half of 2020.

The improved financial performance was primarily driven by favourable financial market conditions, which meant solid returns for our customers and a sound underlying business.

However, it had to make a DKK 270m provision for possible future payment of pension returns tax on the health and accident business. In addition to bottom-line growth, the first six months of 2021 also saw significant top-line growth in the form of a 30.2 per cent year-on-year increase in gross premiums.

Commenting, Danica Pension CEO, Ole Krogh Petersen, said: “It was a good first half for us, and I particularly noted that our customers received solid net returns and that our overall value proposition is increasingly attracting customers. This resulted in strong and profitable growth, as reflected in the increase in both profit and premium income.”

In the Danish business, Danica Pension’s premium income totalled DKK 17,382m in the first half of 2021, compared with DKK 13,967m in the same period of 2020 – a 24.5 per cent increase. For Danica Pension as a whole, total premiums grew 30.2 per cent from DKK 15,268m to DKK 19,877m in the first half.

“We are pleased with our good market position and strong value proposition comprising proactive advisory services providing financial security, competitive long-term net returns, strong focus on sustainability in our investments and strong healthcare solutions, “Krogh Petersen said.

Danica Pension’s customers saw solid returns net of expenses in the first half. Customers with Danica Balance Mix, medium risk profile and 20 years to retirement received a net return of 9.6 per cent in the first half.

“It is very positive that our customers have received significant returns over a prolonged period of time, as it helps generate financial security. However, it is also worth noting that the financial markets cannot be expected to perform as strongly in the coming years, and we are naturally composing our portfolio accordingly,” Krogh Petersen explained.

The bullish equity markets mean that particularly customers with high-risk profiles have benefitted from the highest returns in the first half. For example, customers with Danica Balance high-risk profile and 30 years to retirement received a return of 13.1 per cent.

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