What’s happening in the pension industry?
The financial industry is full of surprises, the stocks and the profit face ups and downs in a whimsical manner. The similar event happened with Danica pension which is a renowned pension provider of Danske bank. Danica pension has shown a profit of DKK 381 million which is almost equivalent to 51 million euros before the tax count only in the first quarter of 2019. This is an example of disruptive growth as Danica pension has showcased a growth of 22% which is amazing!
The group CEO Ole Krogh Petersen commented on this fabulous performance of Danica pension, and remarked that they are happy to know that the customers have recovered the losses which they faced during the 2018 period.
The reasons behind this growth?
According to resources, the financial performance of Danica pension was improved due to the financial developments which were prevailing in the market already. Apart from this, the income which came from Danica Pensionsforsikring played a vital role in healing the Danica pension.
As soon as a company achieves its desired growth, or to put it in the right way, overachieves it, it is pretty obvious that the company would go for expansions through further acquisitions. Let us hear more about the next steps or the planned action items for Danica pensions.
The CEO of the group, Ole Krogh Petersen has expressed the company’s interest in expansions and acquisition of subsidiaries. The CEO has mentioned that they are looking forward to integrate Danica Pensionforsikring as an important entity to it. Moreover, as the company grows in an exponential as well as in a disruptive manner, it is important to balance the customer experience accordingly, otherwise, there will be no benefit against the entire growth initiative. The organisation is planning to form Danica Sweden, which would expand the territories of the organisation as well as create a better hub for ensuring quality customer experience.
According to resources, the integration of Danica Pensionforsikring is in the state of work in progress. Internal reports suggest that the company is getting itself prepared to onboard 200,000 new customers, now this is a huge responsibility as onboarding new customers often leads to the backing out of existing ones as they experience degrading customer experience.
To deal with this challenge, Danica pension is all set to retain and satisfy its old, happy customers, along with the balance they are trying to achieve with the new ones as well. Now the question arises, what is the result of this? This initiative has resulted into lesser number of premiums which was visible within the first three months itself. The payments corresponding to the premiums resulted to DKK 7.8 billion which is almost equivalent to 1 billion euros. These numbers were basically the contributions of Danica Pensionforsikring, while the other units observed a slight lag in the single premium accounts. This is how Danica pension is trying to move ahead along with great level of growth in profit.
