IPF årsrapport 2018 (eng) - Flipbook - Side 4
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2
This corresponds to a total return on investment
assets of -1.0% in 2018 (8.2% in 2017). The
return before costs was -0.3%. Over the past 10
years, the average return after costs has
amounted to 8.9% per annum.
As a result of the negative investment return in
2018, tax on yields of certain pension-scheme
assets for 2018 is positive and has been posted
as revenue in the income statement at DKK 329
mill. Therefore, there is a receivable (tax asset),
which may be set off against future tax charges.
The drop is due in part to a natural increase in the
number of reported cases concerning health benefits,
because the cover has now been extended right up
to the state retirement age. Another reason for the
drop is the weaker investment results.
The total gross loss of DKK -89 mill. and the
consumption of collective bonus potential and
premium rebates in sickness and accident insurance
have been posted to special bonus provisions (DKK
123 mill.) and transferred to equity (DKK 111 mill.).
Table 2 Comprehensive income for the year
Insurance benefits amounted to DKK 5.3 bn.
and were 14.3% above the benefits for 2017,
when the insurance benefits were DKK 4.7 bn.
The higher insurance benefits are primarily due
to an increase in old-age pensions and transfers
to other pension funds in connection with job
changes.
Administration costs for life-assurance activities
were similar to 2017 at DKK 124 mill. Costs per
member were DKK 272 (DKK 278 in 2017). In
addition, costs regarding sickness and accident
insurance amounted to DKK 46 per member
(DKK 42 in 2017). Costs per member therefore
remain at a low level. After this, comprehensive
income for the year was DKK 111 mill. against
DKK 388 mill. in 2017, and against an expected
profit for the year of DKK 100-150 mill. The drop
in comprehensive income in relation to 2017 is
due to the low investment return in 2018.
The results for 2018 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 in market-value adjustments of lifeassurance provisions. The gross result on lifeassurance activities was DKK -12 mill. against
DKK 479 in 2017. The drop is due to lower
returns in 2018 and thereby lower interest
results. The results for 2017 were affected by a
distribution from the collective bonus potential of
approximately DKK 1.2 bn. after tax to the
individual members’ custody accounts in the
average-rate scheme. This distribution had a
negative impact on the interest result, but this
was partly counteracted by a positive impact on
market-value adjustments in this year.
Furthermore, the risk result fell from DKK 70
mill. in 2017 to DKK -57 mill. in 2018 as a
consequence of higher bonus allotments in the
group life scheme in 2018. In 2018, sickness
and accident insurance contributed a gross
result of DKK -77 mill. against DKK 182 mill. in
2017.
DKK mill.
2017
2018
Interest result after tax
-603
-18
Expenses result
84
89
Risk result
70
-57
Change in market-value adjustments
929
-27
Gross profit on life assurance
Gross profit on sickness and accident
insurance
479
-12
182
-77
Total gross profit
661
-89
Consumption of bonus for group life
-71
3
Consumption of collective bonus potential
Consumption of premium rebates, sickness and
accident insurance
192
197
-142
124
Provided for special bonus provisions
-252
-123
Comprehensive income for the year
358
111
Balance sheet
Total assets increased by DKK 1.9 bn. from DKK
170.1 bn. in 2017 to DKK 172.0 bn. at the end of
2018. In the past five years, total assets have grown
by DKK 43.6 bn.
Total provisions for insurance and investment
contracts amounted to DKK 158.6 bn. at the end of
2018. Of this amount, provisions for the market-rate
scheme totalled DKK 143.9 bn. while provisions in
the average-rate environment, which only include
pensioned members, amounted to DKK 7.2 bn.,
including individual as well as collective bonus
potentials. Furthermore, there are provisions for
sickness and accident insurance of DKK 7.4 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 2018 was
set at 5% (after tax). The rate of interest on members’
savings as been set at 9% after tax for 2019.
Equity rose in 2018 to DKK 5.3 bn., and total own
funds thus amounted to DKK 9.3 bn. at the end of the
year.
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.