Denmark's Danica secured "top returns" for customers in 2024 despite significant losses in the health and accident business.

The pension fund set a record for deposits, increasing the figure by 13 per cent in 2024 compared to the previous year.

The increase was partly due to the addition of 3,753 new corporate customers and an increase in sales through Danske Bank by 40 per cent in 2024.

Danica achieved good returns in both its low and high-risk funds, with the average return across all customer profiles at 15 per cent. For customers in the main Danica Balance product, the total return amounted to DKK 35bn.

Over the past five years, a typical customer has received a 42 per cent return on investment.

"It has been a good year," said Danica CEO, Mads Kaagaard, "where we at Danica have created value for our customers. We have had a satisfactory 2024, where we have helped many of our customers and even welcomed several new customers. At the same time, we have succeeded in increasing sales via Danske Bank."

However, the annual result was affected by a loss of DKK 1,194m in the health and accident business (excluding investment results) compared to a loss of DKK 902m for 2023.

An increasing number of Danes on sick leave, receiving sick pay, and being involved in job clarification and resource processes negatively affected the sickness and accident business.

Approximately half of the loss was due to higher claims expenses, while the other half was due to provisions for future losses on existing customer contracts.

Danica adjusted its prices in the area in 2024 as part of customer contract renewals, and they came into effect on January 1 2025.

"A lot of effort is being put into ensuring that our health and accident business is balanced. We did not achieve our goal in 2024, and that is, of course, not satisfactory. We have launched many initiatives in this area, which, together with our price adjustments, should help in the coming year. We still have the goal in mind and are determined to solve the task of achieving balance," Kaagaard added.

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