Danish pension company Danica Pension achieved a return of 6.1 per cent for customers with medium risk and 20 years to retirement in the first half of 2023, its half-year report has revealed.

The company’s pension assets rose from DKK 415bn to DKK 428bn during the first six months of the year.

It achieved a positive result, before tax, of DKK 689m, up from a negative result of DKK -519m in the same period last year.

The improved result was primarily attributed to positive returns on Danica Pension’s investments during the first half of the year.

Over the past five years, the same customer has received a return of 33 per cent after costs, its report stated.

"Our long-term investment strategy at the beginning of 2023 has given our customers good returns during a period of significant fluctuations in the markets,” said Danica Pension CEO, Søren Lockwood.

“I am pleased that the same is the case over a five-year period, which shows that our customers' money is managed with care and that our portfolio is composed wisely.”

The pension company achieved growth in payments of 8.9 per cent compared to the same period last year, with its gross premiums increasing from DKK 18.4bn to DKK 20bn during the first six months of 2023.

“Corporate customers are increasingly demanding the complete package they can get from us, and seen over a period of several years, we see a clear trend towards continuous growth,” Lockwood stated.

“By listening to the customers' needs, we have adapted our solutions to take the best possible care of the customers' investments and their health, and this is acknowledged in the market.”

Danica Pension also noted that it has increased its investments in the green transition from DKK 37.7bn at the end of December 2022 to DKK 49bn at the end of June 2023.

This increase including further investment in green bonds and an increased value of equity investments in the green transition.

“An investment target of DKK 50bn in green conversion is a very ambitious level, and after a 2022 with a sharply declining market, it was certainly not a given that we would reach the target,” Lockwood noted.

“Therefore, I am very satisfied that in 2023 we have taken seven-mile steps in this area, and this shows that we are very keen to fulfil our role as an investor who takes responsibility for our environment.”

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