Insurance & Pension Denmark has issued a proposal for investments from Danish pension assets to be included as part of the nation’s drive to strengthen its security and defence.

The call follows an agreement in the Danish parliament for an extra DKK 18bn to be invested in security and defence following the Russian invasion of Ukraine.

Insurance & Pension encouraged ‘new thinking’ so that investment from Danish pensions can help fund the additional spending, including through investment in defence buildings.

“Right now, our industry sees a clear challenge for society, which we are ready to take part in the solution of: namely the strengthening of Danish security and defence,” commented Insurance & Pension CEO, Kent Damsgaard.

“It will require massive investments, and we can and will contribute with the pension assets we manage on behalf of the Danes.”

He stated that it was “obvious in this serious time” to bring pension wealth into consideration for such a “huge societal task”, just as the country has done and is doing with the green transition.

“It could, for example, be investments in the armed forces' many buildings and facilities,” Damsgaard added.

In light of the defence spending agreement, Insurance & Pension called for a new PPP collaboration.

It stated that companies, together with contractors and suppliers, could bid with investments, experience and competencies to operate and renovate the armed forces’ buildings and facilities so they can release both forces and money for the protection of Denmark.

“It frees up money pretty quickly,” said Damsgaard. “Of course, we are also ready to look at new construction that needs to be completed as a result of the upgrade of the defence.”

Furthermore, Damsgaard noted that the pensions and insurance industry was ready with financial support for the state through the purchase of government bonds.

“In the national compromise, a large majority in the Folketing has chosen to let some of the building up of the defence be financed through debt,” he stated.

“As an industry, we are ready to invest in the Danish government bonds that are now to be issued, as part of the overall solution with, for example, PPP financing.

“The war in Ukraine clearly shows the great strategic importance of investments in, for example, Denmark's and Europe's energy supply and independence.

"Therefore, it would also be of great value to have an expert group that can help define the future framework for how we through investments can support both peace and democracy.”

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