PFA’s new strategy: Commercial Responsibility 2023

In 2019, PFA defined a new strategy to ensure a strong, market-leading and cost-efficient PFA that is equipped to take further steps to secure a sustainable development of society and the good life for the customers.

The market and society have changed since 2015 when PFA developed Strategy2020. The competition has intensified, more companies are now owned by customers and there is fierce competition on returns and insurance prices. The technological and digital development offer new insights and new opportunities with data, and society has an increased focus on sustainability, climate, and how to ensure a sustainable future. On the foundation of the results of Strategy2020, PFA has defined a new strategy that is to support the ambition of being the leading pension company in Denmark and further anchor corporate responsibility in the commercial operation and development.

PFA’s overall ambition for the coming years is for PFA to be the leading pension company in Denmark. That means that PFA must be the best at setting the framework for the good life for its customers while being a commercially responsible company that develops the business and relations with the customers. At the same time, PFA must assume corporate responsibility so that, on top of creating value for the customers, the company also supports a sustainable development of society. Therefore, the new strategy is named Commercial Responsibility 2023.

For being the leading pension company, PFA has three overall goals:

1. Best at generating sustainable returns
2. The highest customer loyalty in the market
3. Solid foundation and profitable growth.

Best at generating sustainable returns

PFA must be number one when it comes to securing the highest possible purchasing power for the customers in retirement. With the new strategy, the ambition is widened from being “best at generating returns” to being “best at generating sustainable returns”. The term “sustainable” underscores the continued ambition to generate a high, risk-adjusted return created by robust investment portfolios while the threshold for sustainability is lifted further.

The highest customer loyalty in the market

PFA’s ambition is that the customers are more satisfied than anywhere in the industry. Today, customer loyalty is high, and it can only be sustained by continuously focusing on making it attractive to be a customer with PFA – both here and now, and in future when the pension savings are being spent. In the coming strategy period, PFA has – among other things – chosen to focus on improving the digital solutions and develop the advisory approach so that customers even more so than today receive targeted advisory services when they need it.

Solid foundation and profitable growth

A sustainable foundation is to secure that PFA has the necessary resources to achieve the ambitions of Commercial Responsibility 2023. Among other things, the foundation consists of:
• A strong IT foundation including a more modern data platform
• A better balanced result on health and accident insurance
• A solid capital foundation based on stronger profitability.

Trends in the shape of new technological and data opportunities as well as rising expectations from the customers with regards to digital solutions make massive demands of PFA’s IT foundation. It has therefore been decided to increase the investments the coming years to enable PFA to meet the demands of the future with regards to scalable innovative data-based digital solutions to provide faster and better customer service. The additional investment is to be used for modernisation and simplification of the current system platform, which is a requirement for increased digitalisation and use of artificial intelligence.