A positive 2015 for the PFA Group means solid returns for the customers
2015 turned out to be a very good year for PFA and its customers. The year saw considerable growth in payments and solid returns on the customers’ savings. These are some of the most essential elements of PFA’s financial statements, which are published today as part of the Danish annual report.
The annual report will be available in English by 1 April 2016.
“PFA exited 2015 well. In spite of the heavy fluctuations on the financial markets, we generated solid returns for our customers – even compared to the best on the market. At the same time, we succeeded in attracting new corporate customers and increase pension payments, which will benefit all our customers by way of economies of scale and reduced unit costs,” Allan Polack, Group CEO at PFA, says.
The investment return totalled DKK 13.6 billion in 2015. Customers with market rate plans received a return in the range between 5.3 and 12.3 per cent before tax.
“The strong result was achieved through PFA’s focus on more steady assets and tight risk management,” Allan Polack says. He is very pleased that PFA’s high returns came from shares, unlisted investments and real property.
In 2015, PFA welcomed 435 new corporate customers and managed to retain almost all existing customers. Total payments amounted to DKK 28.7 billion, which corresponds to an increase of 13.5 per cent.
The annual pre-tax profit amounted to DKK 378 million. After tax and minority interests’ share, the result was DKK -469 million.
The post-tax result was affected by an extraordinary impairment loss on a tax asset of DKK 624 million. The impairment loss is purely technical and is of no practical importance to PFA’s capital strength or its customers.
PFA’s solvency ratio was strengthened by 17 percentage points, and amounted to 296 per cent at the end of 2015, which reflects the PFA Group’s solid financial foundation. The capital base increased by DKK 1.1 billion to DKK 30.1 billion, and of this CustomerCapital amounted to DKK 25.8 billion.
The pension operations came out with a pre-tax profit of DKK 1,132 million in 2015, whereas sickness and accident insurance saw a pre-tax loss of DKK 644 million.
“The result of the sickness and accident insurance item is not satisfactory. It has been one of PFA’s focal areas for a while, and we are experiencing progress in our efforts to obtain balance through the development of new products and a more transparent price structure so that the individual customer will be able to find a suitable product,” Allan Polack says.
In December last year, PFA presented its Strategy2020, which provides the setting for PFA’s development in the coming years. The objective is to strengthen PFA’s business model and its leading market position.
In February, Mads Kaagaard joined the Executive Board, which already consists of Allan Polack, Anders Damgaard and Jon Johnsen.
“The implementation of Strategy2020 will be a key focal point in PFA throughout 2016. With Mads Kaagaard joining as Executive Vice President with the responsibility for Private Customers and Business Support, our Executive Board is well-positioned for implementing the strategy together with the rest of PFA’s employees,” Allan Polack says.
PFA has been adjusting its business on a regular basis and has benefited from the advantages of improved it systems, simpler administrative processes and new products. The increased efficiency level has made it necessary for PFA to reduce the number of employees. Therefore, PFA has today dismissed 63 employees.