Danica Pension is Denmark’s leading and largest life and pension company in terms of premium income and assets and has over 150 years of experience in the life and pension market. Danica Pension, which is part of the Danske Bank Group, a diversified financial services company, specialises in pension and employee benefits schemes, life insurances and health insurances and has 500,000 clients. Danica Pension offers its clients additional savings and credit facilities via Danske Bank and non-life insurances via Danske Forsikring.

Danica Pension is also represented abroad through its subsidiaries, Danica Pension in Sweden and Danica Pensjon in Norway. Danica Pension’s products will be made available to Irish clients in the autumn of 2007 when Danica Pension enters the Irish market.

Danica Pension is the only life and pension company in Denmark to have a rating. In July 2006, Standard & Poor’s confirmed its rating of AA-, which is the highest rating of any pension company in the Nordic countries.

The company’s service concept is very popular amongst corporate clients. Danica Pension offers e.g. individual advice including needs analysis, status meetings, senior courses, pension seminars for decision-makers, advice on expatriation, health insurances, assistance from our net of social security advisers and a range of web solutions. A service agreement is prepared in cooperation with the corporate including expectations to both parties, procedures and Danica Pension’s processing time.

The products are marketed primarily through Danica Pension’s nation-wide team of insurance agents, consultants and pension advisors and through Danske Bank’s branch network. Danica Pension has a full-time staff of 953.

Danica Pension er Danmarks førende og største pensionsselskab målt på bruttopræmier og aktiver. Danica Pension, der er en del af Danske Bank koncernen, er specialist i pensionsordninger, livsforsikringer og sundhedsforsikringer og har godt en halv million kunder. Danica Pension tilbyder også sine kunder supplerende opsparings- og lånemuligheder gennem Danske Bank, ligesom Danica Pension sælger skadesforsikringer via Danske Forsikring.

Danica Pension er også repræsenteret i udlandet gennem datterselskaberne, Danica Pension i Sverige og Danica Pensjon i Norge. I efteråret 2007 påbegyndes salget af Danica Pensions produkter i Irland.

Danica Pension er det eneste pensionsselskab i Danmark, der har en rating. Standard & Poor’s har rated Danica Pension AA-, den højeste rating blandt pensionsselskaber i Norden.

Danica Pensions servicekoncept er meget populært hos firmakunderne. Danica Pension tilbyder bl.a. sine kunder individuel rådgivning herunder behovsanalyse, statusmøder, seniorseminarer, pensionsseminarer for beslutningstagere, rådgivning ved udstationering, sundhedsforsikringer, socialrådgiverfunktion samt flere internetløsninger. En serviceaftale udarbejdes i samarbejde med virksomheden/kunden indeholdende forventninger til begge parter, forretningsgange og Danica Pensions ekspeditionstider.

Produkterne sælges primært gennem Danica Pensions landsdækkende korps af assurandører, chefkonsulenter og pensionsrådgivere og via Danske Banks filialnet. Danica Pension har 953 medarbejdere.

While the market continues to be dominated by defined contribution schemes, flex plans have become increasingly popular. Here, instead of the traditional route of pre-fixed levels of death, disability and retirement benefits/contributions above a core level of basic risk benefits, the employee has considerable flexibility in determining the actual form and level of benefits to be provided. The choice of benefits has also broadened with a steadily increasing interest in medical expenses- and critical illness insurance. Today, due to the “need” (i.e. waiting lists for National Health treatment) interest in “newer” risk benefit coverage – e.g. critical illness and medical expenses insurance – is rapidly expanding. Currently, ca. 20% of the working population are covered for medical expenses insurance.

The interest in market yield products continues to grow in Denmark. Contrary to the traditional insurance product where fixed interest rates are guaranteed, market yield products offer investment in a range of funds (selected by the insurer) where, following the deduction of expenses and any risk insurance premiums, the full investment return is returned to the investor. It is now also possible for investors to make immediate transactions via the Internet. Investors have full access to their portfolio.

Since its introduction in 2001, Danica Pension’s unit-link product, “Danica Link” has recorded sound growth. Investment is now possible in up to 44 investment funds ranging from specialist funds to discretionary managed funds. These funds are managed by six different investment managers. A major feature of Danica Link is the ability – a first in the Danish market – for investors to make immediate transactions via the internet, and the investor has full access to his/her portfolio via Danske Netbank.

In May 2005, Danica Pension launched a new savings product, Danica Balance. Danica Balance makes it easy as well as safe for clients to save up for retirement. If the client chooses Danica Balance, Danica Pension will manage his/her retirement savings without the client having to do anything.  Investment is made in shares and bonds considering the date of retirement of the individual client and the client’s acceptance of risk. The younger the client is, the more shares, and the closer retirement date gets, the more bonds. In this way the client’s investment is balanced in relation to age which gives the client the possibility of an optimum yield. A guarantee can be linked to the scheme.

By the end of first quarter 2007, 80,000 clients have opted for Danica Balance, and premiums received from Danica Balance and Danica Link have increased by 15%.

Danske Bank in brief
Danske Bank is the largest bank in Denmark and a leading player in the Scandinavian financial markets. The Danske Bank Group – which includes Danske Bank, Realkredit Danmark, Danica Pension and a number of subsidiaries – offers a wide range of financial services, including insurance, mortgage finance, asset management, brokerage, real estate and leasing services.

In Denmark, Norway, Sweden, Northern Ireland and the Republic of Ireland, the Group serves 3.5 million retail customers and a significant part of the corporate, public and institutional sectors. It also has a large number of international corporate clients, particularly in the northern European markets. Some 1.2 million customers use the Bank's online services.

In 2005, Danske Bank acquired Northern Bank in Northern Ireland and National Irish Bank in the Republic of Ireland.  In 2007, Danske Bank acquired Sampo Bank which is Finland’s third-largest bank. In addition to activities in Finland, Danske Bank has also acquired Sampo Bank’s subsidiary banks in Estonia, Latvia, Lithuania and Russia.

 

In June 2006, the Danish Parliament made an agreement on the future welfare in Denmark. The agreed reforms and investments in the future will lead to higher employment, increased prosperity and balanced long-term developments in public finances. Reforms have been agreed in the following areas:

·         Later retirement

·         Strengthened efforts to reduce unemployment

·         Higher employment among immigrants and descendants

·         Earlier study completion

·         Investments in the future – secondary education for all, more young people with tertiary     education, life-long learning, research and development.

 

The key measures are:

Later retirement – the early retirement (Efterløn) age is gradually lifted from 60 to 62 years in ½ year increments from 2019 to 2022, while the public pension age (social security, ATP and SP) is gradually lifted from 65 to 67 years between 2024 and 2027. Contributions towards the early retirement scheme (Efterløn) will have to be paid for 30 years, as against 25 years today, and payments have to be commenced at the latest at the age of 30.

Strengthened efforts to reduce unemployment – a strengthened role for the unemployment agencies in job matching procedures. Systematic assessments of availability-for-work of the unemployed every 3^rd month. Increased efforts to combat non-official employment. Every week, the unemployed must search for jobs at jobnet.dk. Full-time activation after 2½ years for unemployment benefit recipients.

Overall the reforms are estimated to strengthen employment by some 110,000 persons (4 1/4 percent) in 2025 and 125,000 (5 ½ percent) in 2040. The reforms will strengthen GDP by some 5 percent in 2040, primarily due to increased labour supply. In today’s terms, this corresponds to an increase in GDP per capita of around 20,000 DKK (2,700 euro).