PFA generates a historically high return of DKK 39.8 billion in H1 2019

PFA generated a return of DKK 39.8 billion during the first six months of 2019. This is the highest return ever seen in an interim period in the history of PFA. In addition, the growth continued with a 9 per cent increase in payments thus amounting to DKK 19.7 billion from DKK 18.1 billion for the same period last year.

Also, the reduction in expenses continued their downward trend during the first six months leading to the expenses per insured decreasing to DKK 328 against DKK 383 in the same period last year. This represents a reduction of 14 per cent. The positive development is still due to streamlining of operations and increased activation of project development costs.

Allan Polack, Group CEO of PFA, says:

“We find an investment return of DKK 39.8 billion and a reduction in expenses to be satisfactory, as our primary mission is to make the customers' pension savings grow based on a formula of strong returns and low expenses. This way, we make sure that our customers will make the most of their pension savings in retirement.”

Operating profit challenged by health and accident insurance

The operating result for the period amounts to a loss of DKK 556 million, compared to a profit of DKK 170 million in the same period last year. Primarily, the result is due to a more adverse result of health and accident insurance operations, with a loss of DKK 1,082 million against a loss of DKK 331 million for the same period in 2018. This adverse result on health and accident insurance is caused by an increase in the number of claims, a level of reactivation which is lower than expected and competitive pricing pressure.

Add to this that a considerable part of the adverse result on health and accident insurance is due to a negative investment return of DKK 452 million of which the majority is due to the introduction of a new reduced volatility adjustment (VA) to the yield curve. The reduction in the VA is due to EIOPA’s change as at 31 March 2019 of the method for how pension companies are to calculate provisions.

Allan Polack says:

“The fact that we see an even more adverse development in health and accident insurance is not satisfactory. It has a considerable impact on our overall result. Again, we have to realise that there is yet a long way to go before we see a lasting improvement of the situation. Turning the development of health and accident insurance around is a high priority for PFA, and we spend considerable resources on these efforts, both in the short and the long term.”

“We cooperate with our corporate customers on preventive measures, and we develop products and initiatives in order to ensure early intervention at the onset of the first symptoms of a disease. We have intensified our efforts this year, however, the effect on the figures will not feed through until later,” Allan Polack amplifies.

The negative operating profit of DKK 556 million is covered by the capital basis.

Continued high solvency ratio

PFA still has a high solvency ratio, which ensures that PFA can live up to the customers’ guaranteed benefits and fulfil other obligations. As at 30 June 2019, PFA Pension’s capital base is DKK 40.8 billion, corresponding to a solvency ratio of 229 per cent. The solvency capital requirement in PFA Pension constitutes DKK 17.8 billion.

Financial highlights

The total pre-tax insurance result amounts to DKK -556 million (DKK 170 million)*

PFA CustomerCapital’s share of the result amounts to DKK 349 million (DKK -153 million)*

The net result for the period is DKK -31 million after tax (DKK -23 million)*

Total payments come to DKK 19.7 billion (DKK 18.1 billion)*

Regular payments amount to DKK 11.6 billion (DKK 11.0 billion)*

Results of health and accident insurance come to DKK -1,082 million (DKK -331 million)*

Expenses per insured amounts to DKK 328 (DKK 383)*

Total return on investments is DKK 39.8 billion (DKK 0.8 billion)*

Pre-tax market rate returns amount to between 4.5 and 11.5 per cent including CustomerCapital (0.0 and 0.5 per cent)*

The return on average interest rate plans is 0.0 per cent (0.9 per cent)*

Total assets amount to DKK 695.1 billion (DKK 717.6 billion)*

* compared to the same period in 2018


During the first six months of 2019, data error has been established in connection with switch of data source for calculation of health and accident insurance provisions as well as market rate insurance provisions. Consequently, it led to a change of the 2018 accounting figures. A summary of the completed changes is available in the interim report. (The interim report is available in Danish only).

For further information, please contact
Kristian Lund Pedersen, Chief Press Officer,, (+45) 61 22 22 31.