DENMARK - Danica Pension - the country's largest commercial pensions provider - saw profits increase by more than a quarter at the group level in its latest interim report, with contributions from international business more than doubling in a year.

In the third quarter of this year, group pre-tax profit rose by 26% to DKK1.6bn (€215m) from DKK1.24bn in the same period last year.

Henrik Ramlau-Hansen, managing director of the Danske Bank subsidiary, said:

"Contributions to Danica Pension are up, at DKK17.7bn, and that is 24% more than at the same point last year.

"In particular, contributions from our foreign units rose strongly to DKK5.4bn, which is more than a doubling in just one year."

Total assets under management climbed by nearly 12% to DKK296.3bn by the end of October from DKK265.4bn a year before.

Within this group figure, customers in Danica Pension had total pensions assets of almost DKK260bn, Ramlau-Hansen said, adding that capital strength had grown to DKK18.6bn.

This compares with DKK15.9bn a year earlier.

"We even have enough capital to comply with the new solvency rules, which will be implemented in 2013," he said.

Administration costs fell to 5.1% from 6.2% at group level.

"Though efficiency measures, we have reduced the level of costs, and so we have now chosen to lower prices for the benefit of our customers," said Ramlau-Hansen, adding that the group would continue expanding its online services in 2011.

The pension provider's unit-linked products - Danica Balance and Danica Link - are now the preferred products, he said.

Premiums for these were DKK6.9bn in the third quarter, increasing by 45% compared with the same period last year.
 

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