Denmark’s AP Pension is to hand out a loyalty bonus of 0.2 per cent on customers’ savings, which equates to DKK 2,000 per million DKK saved.

As a customer-owned pension company, AP Pension gives part of its profits back to customers when the board of directors deems it is in a financial position to do so. For 2023, the board has assessed that the bonus can paid, with savers being awarded part of the DKK 280m sum.

Commenting, AP Pension CEO, Bo Normann Rasmussen, said: “We are owned by our customers, so it is natural and fair that we have a bonus model where we give part of the profit back to customers' savings. It is a very direct advantage of being a customer of a customer-owned pension company.”

The loyalty bonus is awarded in relation to the size of an individual customer's savings. The allocation will take place in February 2024 with 0.20 per cent of the value of the savings, as they were at 31 December 2023.

AP Pension introduced the loyalty bonus model in 2017 and with the award for 2023, customers have been awarded approximately DKK 1.5bn in loyalty bonus over the past seven years. An average customer in AP Pension with pension savings of DKK 1m has received over DKK 16,000 in loyalty bonus in total.

“AP Pension's customers have already received some of the industry's best returns over the past five to seven years, and in addition, they have been rewarded with an additional DKK 1.5bn in loyalty bonus. It is a central element in our business model, and it gives us a clear advantage in relation to retaining existing customers and attracting new ones,” Normann Rasmussen added.

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