PFA generates a H1 return of DKK 21 billion
Based on a new investment strategy, PFA secures its customers a substantial return on their pension savings for H1 2016. The overall H1 return totals DKK 21 billion, and PFA shows positive returns for all risk profiles in spite of an otherwise very turbulent investment environment.
Allan Polack, Group CEO, has the following comments to the H1 result:
- PFA’s investment results for the first six months are very strong. I am very pleased with the return that reached a total of DKK 21 billion. Particularly for our customers as they can witness a positive return on their pension funds in spite of a very challenging investment environment during the first six months that included low oil prices, brexit, negative interest rates and other major elements of uncertainty.
Key figures in line with the objectives of Strategy2020
In order to measure the progress and achievement of results as specified in Strategy2020, PFA has set up four areas to measure: Financial sustainability, customer loyalty, productivity and employee commitment. The H1 results show that PFA is on the right track when it comes to all four points.
PFA generated a positive return in all risk profiles and a total return of DKK 21 billion. At the same time, PFA has experienced a significant increase of 7 per cent in the regular payments from customers and a 3 per cent increase in single payments. The expenses per insured has dropped by 7 per cent to DKK 371. PFA saw a slight increase in investment expenses during the first six months as a result of PFA’s Strategy2020 commitment to further develop the investment area. The employee commitment will be measured in Q3 2016.
- The fact that our developments are in line with the direction of our Strategy2020 is highly satisfactory. Payments are growing significantly, our return is at its peak and expenses per insured are declining. This is great, and extremely well-done by everyone in PFA, Allan Polack says.
The sickness and accident insurance operations for H1 resulted in a loss of DKK 692 million. Through new initiatives, PFA is working with initiatives that are dealing with this development, and for instance in Q2 2016, PFA created a new insurance organisation with the purpose of managing these efforts. Allan Polack explains:
- Some of the explanation is to be found in the new Danish Executive Order on the Presentation of Financial Statements. Another thing is that we see a change in disease patterns as well as the fact that the number of claims is increasing. We have a long haul before us to curb the development, and PFA works with this across all departments in the organisation.
For further information, please contact:
Nicholas Rindahl, Media Adviser, +45 21 18 60 31, nmr@pfa.dk
Selected highlights for H1 2016:
• Investment return amounts to DKK 21.5 billion. The average interest rate return is 1.9 per cent, whereas market rate customers received a return between 0.0 per cent and 3.9 per cent depending on their risk profile.
• Payments totalled DKK 15.5 billion against DKK 14.7 billion for the same period in 2015. Regular payments amount to DKK 9.5 billion, which is a growth of 7 per cent.
• The pre-tax profit amounts to DKK 194 million.
• Expenses per insured customer amounts to DKK 371, which is a drop of 7 per cent compared to the same period in 2015.
• The sickness and accident insurance operations resulted in a loss of DKK 692 million against a loss of DKK 344 million in the same period in 2015.