Annual Report 2023 (eng) - Flipbook - Side 6
INDUSTRIENS PENSIONSFORSIKRING A/S ÅRSRAPPORT 2023
Comprehensive income
Comprehensive income for 2023 was DKK 135
mill. against DKK -152 mill. in 2022, and against
an expected profit for the year of DKK 150–200
mill.
The results for 2023 are detailed in Table 2. The
gross profit on life assurance is composed of an
interest, expense and risk result as well as the
changes for the year in market-value
adjustments of life-assurance provisions. The
development is due to significantly better
investment returns in 2023 and thereby higher
interest results.
There is a loss on the risk result of DKK 24 mill.
The loss relates to the group life scheme and is
primarily due to a reduction in the price, which
Table 2
FINANCIAL AND OPERATING DATA AND FINANCIAL RATIOS IN THE ANNUAL REPORT
has been financed by the bonus provision on the
group life scheme. Furthermore, in 2023 there
have been higher expenses, and provisions for
lump sums on death have been increased. The
loss is much lower than the preceding year,
when there was a loss of DKK 93 million,
primarily with respect to the disability amount.
comprehensive income for the year of DKK 135
mill., has been transferred to equity.
In 2023, sickness and accident insurance
contributed a gross result of DKK -118 mill.
against DKK -405 mill. in 2022. The change is
primarily due to an improved result for
investments, although this was offset by an
increase in the number of injuries in 2023.
Total provisions for insurance and investment
contracts amounted to DKK 220.9 bn. at the end
of 2023. Of this amount, provisions for the
market-rate scheme totalled DKK 205.6 bn.
while
provisions
in
the
average-rate
environment,
which
primarily
includes
pensioned members, amounted to DKK 6.6 bn.,
including individual as well as collective bonus
potentials. Furthermore, there are provisions for
sickness and accident insurance of DKK 8.7 bn.
In the market-rate scheme, returns are allocated
to members in full in the year they are earned,
while members on average rate are allocated a
specific rate of interest on their savings, which in
2023 was set at 2.5% (after tax on yields of
certain pension-scheme assets).
Of the total gross result of DKK 336 mill., DKK
201 mill. has been transferred to special bonus
provisions.
The
remaining
result,
Comprehensive income for the year
DKK mi .
Interest resu t fter t x
-
Expense resu t
Risk resu t
-
-
Ch nge in m rket-v ue djustments
Gross resu t of ife ssur nce
Gross resu t of ccident nd sickness insur nce
Tot
gross resu t
-
-
- ,
Consumption of bonus for group ife
Consumption of co ective bonus potenti
-
Consumption of premium reb tes in sickness nd ccident insur nce
Tr nsferred to speci
bonus provisions
Comprehensive income for the e r
-
Balance sheet
Total assets increased by DKK 7.3 bn. from DKK
231.0 bn. in 2022 to DKK 238.3 bn. at the end of
2023.
Equity at the end of 2023 amounted to DKK 6.5
bn., and total own funds thus amounted to DKK
10.7 bn. at the end of the year.
Outlook for 2024
In 2024, the number of members of Industriens
Pension paying via their employer is expected to
remain unchanged and the number of members
at the end of 2024 is expected to total around
443,000.
Total contributions, including contributions to
sickness and accident insurance, are expected
to amount to DKK 12.1 bn. in 2024.
Industriens Pension will continue its focus on
ensuring efficient administration of the pension
scheme in order to keep costs low. In 2024,
each member will pay DKK 26 per month to
cover administration costs.
Investment costs vary with the investment
strategy selected and are expected to increase
in line with the increasing market value of
investments.
Every year, the Board of Directors revisits the
investment strategy in order to secure the
highest possible long-term real rate of return for
members, after taking risk into account. The
target real rate of return has been set at 2.5% for
2024.
The Board of Directors sets the framework for
the composition of investments, and can leave
room for active management to increase returns.
Returns on the company's investment assets are
expected to amount to DKK 13.7 bn. before tax
on yields of certain pension-scheme assets,
corresponding to a return of 5.7%.
Profit for the year depends greatly on the return
achieved on the assets linked to equity. With the
assumptions applied regarding long-term
returns, a profit of around DKK 250-300 mill. is
expected for the financial year 2024.
Events after the end of the financial year
From the reporting date and up to today's date,
no matters have occurred which affect the view
given in the financial statements.
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