Interim Report, H1 2023: Solid result from Velliv
Today Velliv has published its interim report for 2023 showing a result of DKK 712 million before tax.
Financial highlights
- The result before tax amounted to DKK 712 million (DKK 160 million in the first half of 2022).
- The result after tax amounted to DKK 533 million (DKK 125 million in the first half of 2022).
- Return on equity before tax was 18.2 percent (4.4 percent in the first half of 2022).
- Return on equity after tax was 13,6 percent (3.4 percent in the first half of 2022).
- Premiums made a total of DKK 17.5 billion (DKK 17.0 billion in the first half of 2022).
- Customer returns made a total of DKK 11.3 billion (DKK -37.4 billion in the first half of 2022).
In this video you can hear Interim CEO Morten Møller comment on Velliv's development (in Danish):
DKK 17.5 billion in premiums
Aalund's Company pension barometer (Firmapensionsbarometer) of June 2023 showed that Velliv has the highest customer satisfaction and loyalty rate of the industry. This contributes to Velliv renewing agreements with the majority of customers and is also reflected in the fact that regular premiums increased by 9 percent in the period. Total premiums increased by 3 percent and now makes a record DKK 17.3 billion. Since 2018, total premiums in Velliv have increased by more than 90 percent.
Investment and return
The return for the first half of the year was positive and between 5.0 and 7.4 percent for a customer with medium risk and 15 years until retirement, depending on the selected product. The general high interest level increases the long-term return for bonds, and we expect to see more volatility in the share markets and a general lower return on shares than what we were used to in the 2010s. Velliv regularly assesses market conditions and the need for adjusting the company's savings products to the new trends on investment markets.
You can get more information about return and investment from Velliv's Chief Investment Officer Anders Stensbøl (in Danish).
New health initiatives
The development of the health and accident business is positive and follows the plan we have laid out for the area. Velliv therefore expects there to be balance in 2024 despite an increase in the number of customers on sick leave. The development is driven by better balanced prices and the effect of preventive efforts aimed at the customers.
Listen to our Health Director Julie Engelund Sander elaborate on our health initiatives (in Danish).