annual report 2020 - Flipbook - Side 20
INDUSTRIENS PENSIONSFORSIKRING A/S ANNUAL REPORT 2020
OUTLOOK FOR 2021
environment has initially been set at 3.5% per
annum after tax on yields of certain pensionscheme assets in 2021.
Outlook for 2021
Expected result for 2021
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 150 to 200 mill. is
expected for the financial year 2021.
Members and contributions
In 2021, 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 2021 is expected to total around
410,000.
Total contributions, including contributions to
sickness and accident insurance, are expected
to amount to DKK 9.5 bn. in 2021.
The number of members and the size of
contributions
depend
largely
on
the
employment rate in society and are therefore
affected by the current COVID-19 crisis and the
spill-over effect on the economy. Consequently,
the figures are associated with considerable
uncertainty.
Costs
Industriens Pension will continue its focus on
ensuring efficient administration of the pension
scheme in order to keep costs low. For 2021,
each member will pay DKK 24 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. The cost rate compared with the
investment assets is expected to increase
slightly as a result of a small change in the
composition of investment assets in the
portfolio.
Investment activities
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
Board of Directors thus sets the framework for
the composition of investments, and leaves
room for active management to increase returns.
A small percentage of members still have their
pensions in an average-rate scheme, and for
these members, the interest-rate risk associated
with the life-assurance provisions will continue
to be hedged. This hedging is to ensure that
provisions are not affected inappropriately by
significant fluctuations in interest rates.
Returns on the company's investment assets are
expected to amount to DKK 9.8 bn. before tax
on yields of certain pension-scheme assets. Due
to the ongoing COVID-19 crisis, returns on
investment assets are associated with
considerable uncertainty.
Rate of interest on members' savings
The rate of interest on members' savings for
those who are still in the average-interest-rate
19