Danica Pension

The history of Danica Pension is the story of a state-owned insurance company that was bought by Baltica in 1991 after 148 years in public ownership. Danica joined the Danske Bank Group in 1995.

1842 – Denmark’s first insurance company
When “LivsforsikringsAnstalten i Kjøbenhavn” (the State Life Assurance Institute) held its general meeting just before Christmas in 1847, the company had 500 customers. Fifty of them showed up on this special day for the five-year-old company to help decide whether to keep the company state-owned or privatise it.

The state wanted to keep the insurance company and made an offer that was hard to refuse. The amount the company had saved up during its five-year existence would be paid out as a bonus and the board would lower premiums. Naturally, no one voted against the proposal.

1848 – monarchial rule ends in Danmark 
Most of the customers were government officials working for the King of Denmark, who ruled as absolute monarch – but not for long. A few months later, in 1848, Denmark became a democracy. In the years that followed, the number of people who could afford insurance increased, and eventually almost the entire population was covered.

Nineteenth century – bonus law
In 1898, a bonus law was enacted which required insurance companies to distribute retained profits to customers every five years in the form of a bonus. However, it was only after the end of the Second World War that the bonus payment amounted to much. The repayment period extended over one month, and customers had to collect the money themselves. In due course, the state-owned company devised a bonus payment plan.

Customers were divided up according to their surnames, and advertisements were placed in newspapers. For example, on April 21, 1942, all the Hansens and Jørgensens could collect their bonuses. It did not take long before businessmen began to use the bonus schemes as a marketing tool.

1991 – insurance company put up for sale
After being state property for 148 years, the company was put up for sale. There were plenty of offers, with Baltica making the highest bid.  In 1991, the State Life Assurance Institute, whose name and address had changed many times over the years, moved into brand new offices north of Copenhagen and took the name Danica. However, this was not the final stop on its journey.

1995 – part of the Danske Bank Group
In October of 1995, Danica became part of the Danske Bank Group and is now situated in Kongens Lyngby, a suburb of Copenhagen. Danica specialises in pension schemes, life insurance and health care insurance. In 1999, Danica sold its non-life insurance business to Topdanmark and changed its name to Danica Pension.