Årsrapport 2022 godkendt 7. marts 2023 (eng) - Flipbook - Side 31
INDUSTRIENS PENSIONSFORSIKRING A/S ANNUAL REPORT 2022
1.
BOARD OF MANAGEMENT AND BOARD OF DIRECTORS
Accounting policies
Provisions for insurance and investment
contracts
Valuation of investment properties and wind turbines in
rate is calculated according to the cost-of-capital
This annual report has been prepared in accordance
group undertakings and associated undertakings is
method, which combines a risk-free interest rate with
with the regulations of the Financial Business Act, as
The calculation of provisions for insurance contracts
based on the present value of expected cash flows
the addition of an illiquidity premium and the expected
well as the Executive Order from the Danish Financial
(excl. the market-rate scheme) is based on actuarial
during a planning period of 10 years for investment
inflation rate. The DCF model is maintained by external
Supervisory
Authority
for
calculations, and applies assumptions on e.g. mortality
properties and up to 30 years for wind turbines. For
experts, and, as a supplement to their valuation, a
Insurance
Companies
Multi-Employer
and disability rates. Assumptions on mortality are based
investment properties, the method (discounted cash
statement from another external expert is obtained
Occupational Pension Funds (Executive Order on the
on benchmarks from the Danish Financial Supervisory
flow (DCF)) is defined in an annex to the Executive
every year concerning the market conformity of the
Presentation of Financial Statements).
Authority, and like other assumptions, they are set as a
Order on the Presentation of Financial Statements. The
model and the assumptions applied.
best estimate based on experience with previously
most significant estimates concern determination of the
The accounting policies applied are unchanged
held portfolios of insurance contracts. The provisions
discount rate, which is composed of an individual rate
To a great extent, the valuations of unlisted equity
compared with 2021.
are calculated as the present value of the future
of return and the expected inflation rate, as well as
investments in private equity funds and real estate
benefits discounted by the yield curve defined in the
certain elements of the budgeted cash flows, in
funds etc., unlisted investment units and unlisted bonds
All amounts in the financial statements are presented in
Executive
Financial
particular budgeted rental income which depends on
are based on information from the funds themselves or
whole million DKK. Each figure is rounded separately,
Statements. The yield curve is applied without volatility
the level of the rent and vacant periods etc., expenses
from capital managers etc., including information in
which means that there may be small differences
adjustment. This means that the size of provisions is
for maintenance and renovation as well as a so-called
reports, many of which were prepared prior to the
between the totals stated and the total of the
also affected by the current interest-rate level, which
terminal value when the planning period expires. The
reporting
underlying figures.
determines the discount rate. Provisions with these
determination of the individual rate of return is based
established to ensure the quality of the information
uncertainties constitute less than 6.2% of total
on statistics on actual real estate transactions involving
included in measurement of fair value. This means that
provisions.
similar properties and takes into consideration the
temporal differences in accounting data between the
location of the property, its age, use and state of
most recent reporting and the reporting date are taken
General
on
Financial
and
Reports
Pursuant to section 134(1) of the Executive Order on
Order
on
Presentation
of
Presentation of Financial Statements, no consolidated
date.
Internal
procedures
have
been
financial statements have been prepared for the
Fair value of financial investment assets
maintenance, etc. As a supplement to this valuation, a
into account; that additional information is obtained
company. The company and its subsidiaries together
There are no significant estimates connected with the
valuation from an external estate agent is obtained
from selected funds and capital managers; that internal
with the affiliate Industriens Pension Service A/S, are
valuation of financial instruments with listed prices on
every year concerning the assumptions applied
information on large transactions in individual funds is
included in the consolidated financial statements of
an active market (level 1), or where valuations are based
(primarily individual rates of return), and the fair value is
continuously
IndustriPension Holding A/S (CVR no. 15 89 32 30).
on accepted valuation models with observable market
calculated every three years.
developments since the most recent reporting are
collected;
that
general
market
evaluated; and that the quality of the reporting received
data (level 2).
Accounting estimates and assessments
The extensive planning period of up to 30 years for
is generally followed up on (back test).
Preparation of the annual report requires that
In relation to financial instruments where there is only
wind turbine investments naturally adds to the
management make a number of estimates and
limited observable market data on which to base
uncertainty
and
The fair value of owner-occupied property is calculated
assessments regarding future conditions which could
valuation (level 3), valuation will be affected by
consequently also concerning the current fair value of
using a returns model which is also defined in an annex
significantly influence the accounting treatment of
estimates. This applies in particular to holdings in group
the wind turbines. Again, the most significant estimates
to the Executive Order on the Presentation of Financial
assets and liabilities, and thus the result in the current
undertakings
with
relate to the discount rate and to specific elements
Statements. According to this model, fair value is
and coming years. The most significant estimates and
investments in investment properties and wind
which have a major impact on budgeted cash flows, in
calculated on the basis of the budgeted, normal
assessments concern calculation of provisions for
turbines, to unlisted equity investments in funds with
particular electricity production, which is based on wind
operating return on the property, consisting of the
insurance contracts, fair value of unlisted financial
private equity, real estate and infrastructure, to unlisted
forecasts, idle days with no generation of electricity,
market rent less costs of operation and maintenance,
instruments and fair value of the owner-occupied
investment units, to unlisted bonds, and to the owner-
electricity price developments, costs of maintenance of
as well as a required rate of return for the type of
property.
occupied property.
the wind turbines and costs of dismantling the wind
property in question.
turbines at the end of their useful lives. The discount
adjusted by any non-recurring income and expenses
and
associated
undertakings
concerning
future
cash
flows
The fair value calculated is
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