PKA+ Pension Forsikringsselskab A/5

Transkript

1 Annual Report 2016 PKA+ Pension Forsikringsselskab A/5 Approved at the Company's AGM on 28 April 2017 Chairman of the Meeting Tuborri Boulevard 3, DK-2900 Hellerup - Central Business Reg. No

2 PKA+ Pension Forsikringsselskab A/S Contents Management Review ^ Management Statement ^ The independent auditor's report ^ Income Statement and Total Income Statement 11 Balance Sheet 12 Capital 14 Notes 15 TulJOig Boulevard J, DK 2000 llollpnip - Centrcil Business Rog, No. 16 3/ 0] 91

3 2 Annual Report 2016 Management Review PKA-i Pension Forsikringsselskab A/S operatftfi a life assurance business. PKA+ has been sealed down In recent years and holdings have been reduced through various measures. A new strategic focus means that there are ongoing deliberations in the direction of developing the Company going forward. The key figures of this Report are shown on a Group basis, unless otherwise specified. Result for the year The Group's result for 2016 was a profit of DKK 28.6 mill. The Board proposes to retain this profit. The total return before pension return tax was 5.5 %. The result for the year is deemed to be satisfactory and PKA+ is still well-consolidatcd. The year under review The economy 2016 was charcterised by two major events. In June, the Brits decided that the UK will leave the EU follow ing negotiations of terms; in November, Donald Trump was elected President of the US. Until now, none of these events have had noticeable financial consequcnces and In the US, contrary to expectations, stock prices went up after Trump was elected. Apart from these factors, the year under review presented moderate growth and falling unemployment in both the US and Europe. Inflation went up, primarily as a result of increasing raw material prices. Increas ing raw material prices also contributed towards stabilising the economic development of emerging market countries. Both the Fed in the US and the European Central Bank continued their lenient monetary policy. In 2016, short-term interest rates were at around zero. At the end of 2016, however, the Fed Increased its interest rates and the European Central Bank Is reducing its purchase of bonds from March Roth of these developments are to be seen in the light of increasing inflation and moderate growth. The global stock markets rose by 8.7% in All in all, risk-prone assets generated good returns In 2016, while interest developments remained largely unchanged. Account interest rate PKA+'s account interest rate was 4.8% before tax in The account interest rate has been increased to 5.0% before tax in Business basis PKA+ has been scaled down in recent years and in a large part of members with supplementary sav ings products have been transferred to the pension funds in PKA. However, this scaling down has been halted, while the future strategy and business model are being con sidered. Revenue PKA+ total Incomc in 2016 from ongoing premium payments and lump sum deposits was a total of DKK mill, against DKK mill, the year before. Deposits from Individual clients in 2016 amounted to DKK mill., representing a decline of DKK 36.2 mill, from Premium-paid insurance policies fell to DKK 11.4 mill, in 2016, just as there has been a decline in lump-sum deposits from DKK mill, in 2015 to DKK mill, in PKA+Peribion Horslkhnq^snlskab A/5

4 Annual Report 2016 Ownership PKA-l-Pension Forsikringsselskab A/S (s owned by the three pension funds in the social and healthcare sec tor that are jointly administered by PKA A/S; the division of shares is as follows: The State Registered Nurses' and Medical Secretaries' Pension Fund '19.2 The Healthcare Professionals' Pension Kind 21.0 The Social Workers', Social Pedagogues' and Office Staff Pension Fund 29.8 Anholt HavvindmpHepark K/S This partnership's activity is ownership of a partnership share of the offshore wind farm Anholt Havvindrnwllepark I/S. The company's result for 2016 was a profit of DKK 1.8 mill. PKA+ GP ApS This company functions as a general partner for the investment in Anholt I lavvindmollepark P/S. The result for 2016 was DKK 0.0. Investments and social responsibility PKA+'5 guidelines for responsible investments arc in line with the principles of the UN Global Compact. As an addition to the UN Global Compact, PKA-i- has adopted a policy of not investing in controversial weap ons, coalmines or tobacco. The Board's report to the AGMs of the pension funds of the PKA cooperation explains the development in the work with the guidelines and active ownership. I he reports are available at. Active owner ship is exercised by ongoing dialogue with the companies in which investments have been made and by ensuring thai, they comply with PKA+'s guidelines. If a company does not live up to the guidelines, PKA+ enters into a constructive dialogue with the company to bring such infringement to an end. If the company continued to infringe the guidelines and there are no prospects of lasting improvements on the part of the company, the company concerned will be excluded from PKA+'s investment universe. PKA+ publishes an updated list of excluded companies on its website. PKA+'s active ownership is pursued in cooperation with an international screening and commitment part ner, which gives PKA+ extra clout when enforcing its guidelines. Further to PKA+'s guidelines, the partner also works to promote best practice through long-term dialogue with the companies in which PKA-i- has invested. PKA+'s website contains more detailed statements regarding compliance with the guidelines and regarding active ownership. On the basis of financial and climate-relatcd considerations, PKA+ took its first step in 2015 towards re ducing Its exposure i C02-intensive companies. These are typically mining, utility and energy companies. PI<A+ enters into a dialogue with these companies with the purpose of making them reduce their coal business and convert to more climate-friendly sourccs of energy. The companies have to subrnll a business PKA I Pension Forsikririysselskab A/S

5 4 Annual Report 2016 strategy, which phases out their coal activities, while taking account of regulations In the energy sector and the increased political focus on the environment. If a company is not able to do so, PKA+ will sell its shares In the company and exclude it. So far, 40 companies have been excluded by PKA+. PKA+'s ambition Is not to sell its shares, but to influence the companies to make them go In a sustainable direction. Active ownership has proven its worth and moved the companies concerned in a sustainable direction. Until now, ten companies have prepared strategics to reduce their coal activities, so PKA+ has kept its shares In these companies. In 2016, the strategy from the coal sector was applied also to the oil sector, where PKA+ excluded two companies; more than SO per cent of the business of these two companies consists of the extraction of oil sand. PKA-i- expects to exclude additional companies in the oil sector In Return The total return in 2016 was 5.5%, corresponding to DKK mill. All share classes generated a positive return in 2016, Shared and mortgage bonds contributed 9.0% and 11.0% return, respectively. The return on investment grade bonds was 2.4%, which is also satisfactory. Costs The total costs of the PKA+ Group amounted to DKK 9,5 mill, in 2016, down from DKK 10.7 mill. In Staff and administration PKA+Pension has an administration agreement with PKA A/S. PKA A/S has outsourced some of its adminis trative assignments to Forca A/S. The Management and significant fixed-pay risk-takers are partially employed and paid by PKA+Pension. The Appointed Actuary is employed by, but not paid by, PI<A+ Pension. All other employees of PKA+ Pension are also employees of PKA A/S or Forca A/S, but are not paid by PKA-K Progress report on compliance with the goal regarding the underrepresented gender at man agement level The Financial Services Act requires that financial companies must set a target for gender representation on the board of directors and prepare a policy for equal representation in the running of the company. The Board of PKA+ Pension has four members. The Board has decided that the goal for men and women on the Board is to be?.5%, corresponding to one person of one gender and three of the other gender. At the end of the year, the gender division on the Board said 75% men and 25% women. Following the replacement of a Board member in 2017, the gender split is 50% men and 50% women. The company is thus in compliance with the goal set out. No policy has been adopted regarding equal representation in the management layers below the executive management of PKA+ Pension. PKA+ Pension Is fully administered by PKA A/S. In 2016, PKA A/S had a gender distribution in the management layers below the executive management of 57% men and 43% women; against this background, no policy for equal gender representation in the other management lay ers of PKA A/S has been prepared. Audit Committee In accordance with legislation, the Company must establish an Audit Committee. In accordance with leg islation, PKA+ Pension has decided that the functions of the Audit Committee are exercised by the full Board of Directors. At least one member must have qualifications in accounting or auditing. I he chairman of the Audit Committee is Susanne Kure, who is in compliance with the requirement for qualifications in accounting or auditing. Risks and solvency associated with PKA+ Pension's business model In 2016, PKA-i- transferred a large share of its members with supplementary pension saving products to the pension funds in PKA. The business model and strategy for PKA+ are being reconsidered; however, no specific strategy has yet been developed. Consequently, further scaling down of the Company has been halted. During this transi Uonal period, the Company's risk management is focused on compliance with the solvency requirement. PKA+Pension Korslkrlnqsselskab A/S

6 Annual Report The distance to the solvency capital requirement (SCR) Is substantial, and only a very serious, long-lasting financial crisis will be able to change this, Solvency II The Solvency U rules came into force on 1 January 2016; In this connection, new accounting rules have been issued, which ensure a high degree of consistency between calculations for solvency purposes and calculations for accounting purposes. One of the effccts of the transition to the new accounting rules is that member behaviour must be included in superannuation provisions and that a discounting graph calculated by the European supervisory authority ElOPA is to be used. In early-2016, the total superannuation provisions increased by DKK 6.7 mill. This is because not all con tribution groups have enough bonus potential to cover the increase in guaranteed commitments. The in crease In guarantee commitments leads to a reduction in bonus potentials of DKK 47.7 mill, and the guar anteed commitments increase from DKK 1,445.0 mill, to DKK 1,538.5 mill. This increase is the result pri marily of the change in the interest graph used. Capital The increase of DKK 6.7 mill, in total superannuation provisions in early 2016 has been charged to equity. Subsequently, equity has been increased by the profit for the year of DKK 28.6 mill,, thus amounting to DKK mill, at the end of the year. The capital base is thus DKK mill, against DKK mill. In The SCR solvency requirement has been calculated using the standard model. As from 1 January 2016, SCR has been calculated to be DKK mill,, while at the end of 2016 It was DKK mill. New official accounting order The Danish FSA has issued a new accounting order applicable from Apart from the effect on the var ious superannuation provisions, as described above, the changes made will only influence the Company to a limited extent. Provision for insurance obligations Provisions for Insurance and investment contracts fell In 2016 by DKK mill, to DKK 1,142,9 mill. Uncertainty regarding recognition and measurement When the Annual Report is prepared, a number of estimates and assessments of future aspects are made; these have an influence on the accounting value of assets and commitments. The most significant areas concern life assurance provisions and the valuation of unlisted, alternative investments. Management finds that the assumptions made are responsible, but associated with a ccrtain amount of uncertainty. Sensitivity information regarding a number of assumptions made can be seen in note 22, Expectations regarding the future In both the US and turope, growth and Inflation are expected to grow moderately, while unemployment will decline. Rising inflation will result in minor tightening initiatives in monetary policy in both the US and Europe. Politically, however, a number of events may give rise to unrest on the financial markets. Firstly, it is still uncertain what the policy of the new American administration is going to be. This is true In regard to foreign policy, trade policy and economic policy alike. If, for example, trade sanctions against Mexico and China are implemented, global growth will decline. A major financial policy expansion will prob ably lead to increased inflation, resulting in additional interest rate increases in addition to those already expected in the American bond markets. The biggest impact will be on short-term interest rates, while long term interest rates will be less Impacted. Secondly, elections will be held in France, the Netherlands and Germany. At first, the election in France in the spring attracts most attention, focusing on the possibility of the right-wing parly Front National winning the presidential election. In all the mentioned countries, however, more nationalistic parties may Increase in size; in addition to Brcxit, this may challenge the coherence of the EU. PKA+Penslon Horslkrlngssclskab A/s

7 6 Annual Report 2016 PKA+ is robust and well-equipped when it comes to tackling these challenges. Events after the Balance Sheet date No events after the Balance Sheet date have any significant influence on the financial standing of the Company or the Group. PKA+Pension Forsikrincjsselskab A/S

8 Annual Report Other management/board positions The members of Management hold the following other management/board positions: Managing Director Peter Damgaard Jensen Managing Director of PKA A/S Managing Director of three pension funds administered by PKA Managing Director of the pension funds' limited real property companies Board Chairman of PKA+ Pension Forsikhngsselskab A/S Board Chairman of A/S KJabenhavns EJendomsselskab Board Chairman of Forstcedernes Ejendomsaktieselskab Board Chairman of PKA A1P A/S Board Chairman of Poppelstykkct 12 A/S Board Chairman of PKA Skejby Komplementar ApS Board Chairman of PKA Skejby P/S Vice-chairman of Forca A/S Board member of Forsikrlngsorganisationernes Fcellessekretariat F.M.B.A. Board member Michael Nellemann Pedersen Executive director of the property companies owned by the three pension funds administered by PKA A/S Executive director and Board member of A/S Kjobenhavns EJendomsselskab Executive director and Board member of Forstaedernes Ejendomsaktieselskab Executive director and board member of OPP HoldCo ApS Board member of PKA AIP A/S Board member of Hotel Koldingfjord A/S Board member of Refshaleoen I lolding A/S Board member of Refshaleoens Ejendomsselskab A/S Board member of Margretheholmen P/S Board member of Komplcmentarselskabet Margretheholm ApS Board member of PKA Skejby Komplementar ApS Board member of PKA Skejby P/S Board member of Komplementarselskaber PKA AE ApS Board member of P/S PKAE Ejendom Board member of Investeringsselskabet af 24. februar 2015 A/S Board member of Poppelstykkct 12 A/S Board member of Dansk Skibskrcdit A/S Board member of Danmarks Skibskredit Holding A/S Board member Annegrete Birck Jakobsen Board member of A/S Kj0bcnhavns Ejendomsselskab Board member of Forstacdernes Ejendomsaktieselskab Board member of PKA Skejby Komplementar ApS Board member of PKA Skejby P/S Board member of Aktieselskabet af 1. december 2004 Board member of Poppclstykket L?. A/S Board member Susanne Kure Board member of the Social Workers', Social Pedagogues' and Officc Staff Pension Fund Board member of Investeringsselskabet af 24. februar 2015 A/S Board member of Gcnan Holding A/S Vice-chairman of the Board of Denmark's Kcscarch and Innovation Policy Council PKA+Pension Forsikrifiysselskcib A/S

9 8 Annual Report 2016 Management Statement We have today presented the Annual Report of PKA+Pcnsion Forsikringssclskab A/S for the 1 January - 31 December 2016 financial year, The Annual Report is submitted In accordance with the Danish Financial Business Act. We find that the consolidated accounts and financial statements give a true and fair view of the Group's and the Company's assets and liabilities and financial position as at 31 December 2016, as well as the re sult of the Group's and Company's activities in the financial year 1 January 31 December 2016, We consider that the Management Review gives a true and fair view of developments In the Group's and the Company's activities and financial standing, the result for the year and the Group's and Company's financial position, as well as describing significant risks and uncertainty factors faced by the Group and the Company. We recommend that the Annual Report be adopted by the General Meeting. Hellerup, 20 March 2017 Management: Tomas Frydenberg Managing Director Hellerup, 20 March 2017 Board of Directors: Peter Damgaard Jensen Annegrete Birck Jakobsen Chairman Michael Nellemann Pedersen Susanne Kure PKA i Pension Forslkrinqsselskab A/s

10 Annual Report The independent auditor's report To the shareholders of PKA+Pension Forslkringsselskab A/S Opinion We have audited the Consolidated Accounts and Financial Statements of PKA+Pcnsion Forsikringsselskab A/S for the 1 January - 31 December 2016 financial year, comprising Income Statement and lotal Income Statement, Balance Sheet, Equity Statement and Notes, including Accounting Policies, for the Group as well as the Company. The Consolidated Accounts and Financial Statements are prepared in accordance with the Danish Financial Business Act. In our opinion, the Consolidated Accounts and financial Statements give a fair view of the Group's and the Company's assets, liabilities and financial position as at 31 December 2016, as well as of the result of the Group's and Company's activities and the Group's cash flows in the 1 January - 31 December 2016 finan cial year In accordance with the Danish Financial Business Act. Basis for our opinion We have carried out our audit In accordance with international auditing standards and additional retjuirements In Denmark. Our responsibility in accordance with these standards and requirements is described In more detail in the audit report section entitled The auditor's responsibility for the audit of the Consolidated Accounts and Financial Statements'. We arc independent of the Group In accordance with international ethical rules for auditors (lesba's Ethical Rules) and comply with the additional requirements made in Denmark, just as we have met our ethical obligations as specified in these rules and requirements. In our opinion, the audit proof we have obtained is adequate and suitable as a basis for our opinion. Management's responsibility for the Consolidated Accounts and Financial Statements Management is responsible for preparing and presenting Consolidated Accounts and Financial Statements that give a true and fair view In accordance with the Danish Financial Business Act. Furthermore, Man agement is responsible for the internal controls which Management deems to be necessary for the prepa ration of Consolidated Accounts and Financial Statements without material misstatements regardless of whether such misstatements are the result of fraud or error. When preparing the Consolidated Accounts and Financial Statements, Management is responsible for assessing the ability of the Group and the Company to continue operations, just as Management Is obliged to give information about relevant matters in relation to continued operation and to prepare the Consolidated Accounts and Financial Statements on the basis of a going concern principle of accounting, unless Management intends either to liquidate the Company or discontinue operations, or has no other realistic alternative thereto. The auditor's responsibility for the audit of the Consolidated Accounts and Financial Statements Our aim Is lo achieve a high degree of certainty that the Consolidated Accounts and Financial Statements as a whole are free of material misstatements, regardless of whether such misstatements arc the result of fraud or error, and to prepare an audit report with our opinion. A high degree of certainty means just that, but involves no guarantee that an audit carried out in accordance with international auditing standards and the additional requirements in Denmark will always discover material misstatements if such exist. Mis statements may arise as a result of fraud or error and may be considered significant if it is reasonably to be expected that, individually or jointly, they will have an influence on financial decisions made by users of the accounts on the basis of the Consolidated Accounts and the Financial Statements. As part of an audit carried out in accordance with international audit standards and the additional require ments in Denmark, we make professional assessments and maintain a professional scepticism during our audit. In addition: We identify and assess the risk of material misstatements in the Consolidated Accounts and Financial Statements, regardless of whether such misstatements are the result of fraud or error, and we plan and carry out audit action as a reaction to these risks and achieve audit proof which is adequate and suitable to form the basis of our opinion. The risk of not discovering material misstatements caused by fraud is higher than if material misstatements arc the result of error, since fraud may come from con spiracy, forgery, deliberate omissions, misguidance or disregard for internal controls. We obtain an understanding of the internal controls that are relevant to the audit, so as to be able to carry out audit action, which is suitable In Hie circumstances, but not in order to be able to offer an opinion about the efficiency or cffcctivcncss of the Group's and the company's internal controls. We decide whether the accounting policies applied by Management are suitable, and whether the ac counting estimates and associated information prepared by Management are reasonable. PKA+Pension Forslkrlngsselskab A/S

11 10 Annual Report 2016 We conclude whether Management's preparation of the Consolidated Accounts and Financial State ments on the basis of a going concern accounting principle is suitable and whether, on the basis of the audit proof obtained, there is any significant uncertainty associated with events or mailers which may create substantial doubts about the Group's and the Company's ability to continue operations. If we find that significant uncertainty exists, our audit report must give information about this in the Consol idated Accounts or Financial Statements or, If such information is not adequate, wc must modify our opinion. Our opinions are based on the audit proof obtained up to the date of our audit report. Howev er, future events or matter may mean that the Group and Company will no longer be able to continue operations,» We assess the overall presentation, structure and contents of the Consolidated Accounts and Financial Statements, including the Notes, and whether the Consolidated Accounts and Financial Statements re flect the underlying transactions and events in such a way that a fair view is given thereof. We obtain adequate, suitable audit proof in regard to the financial information In the companies or the business activities of the Group, so as to be able to give an opinion about the Consolidated Accounts. Wc arc responsible for managing, supervising and performing the Group audit. Wc have sole responsi bility for our audit opinion. We communicate with the executive management, for example about the planned scopc and timing of the audit, as well as about significant observations during our audit. Including any significant deficiencies in regard to internal controls which we may identify during our audit. We also make a statement to the executive management specifying that we have complied with relevant ethical requirements concerning independence and we inform the executive management about all rela tions and other matters which may reasonably be thought to influence our independence and, where rele vant, we inform about any precautions taken. Statement regarding the Management Review Management is responsible for the Management Review. Our opinion about the Consolidated Accounts and Financial Statements does not cover the Management Review and wc express no opinion with any certainty on the Management Review. When wc carry out our audit of the Consolidated Accounts and Financial Statements, it is our responsibility to read the Management Review and, in this connection, to consider whether the Management Review is significantly inconsistent with the Consolidated Accounts or Financial Statements or seems to contain ma terial misstatements given the knowledge wc have obtained in our audit or in any other way. Furthermore, our responsibility Includes considering whether the Management Review contains the re quired information as specified in the Danish Financial Business Act. Based on our work, we find that the Management Review is in accordance with the Consolidated Accounts and Financial Statements and has been prepared in accordance with the requirements of the Danish Finan cial Business Act. Wc have found no material misstatements in the Management Review. The solvency cover key figure Management is responsible for the solvency cover key figure specified in note 2 of the Consolidated Ac counts and Financial Statements, As stated in note 2, the solvency cover key figure is exempted from audit requirements. Consequently, our opinion on the Consolidated Accounts and Financial Statements does not cover the solvency cover key figure and we express no kind of opinion with any certainty on this key figure. In connection with our audit of the Consolidated Accounts and Financial Statements, it is our responsibil ity to consider whether the solvency cover key figure is significantly inconsistent with the Consolidated Accounts and Financial Statements, or seems to contain material misstatements given the knowledge we have obtained in our audit or in any other way. If, on this basis, we find that the solvency cover key figure contains material misstatements, wc must report this. We have nothing to report in this connection, Copenhagen, 20 March 2017 Deloitte State-authorised Public Accountants, Partnership Central Business Rog. No Lars Kronow Jacques Peronard State-authorised Public Accountant State-authorised Public Accountant PKA-Pension Foriilknngsselsknb A/S

12 Annual Report Income Statement and Total Income Statement All arrounts in DKK mill. Note Company Group Gross premiums Surrendered reinsurance preniums ,6-2, Total premiums, own account Income from affiliated cotrpanies Interest incoire and dividend ctc. Price adjustments Interest costs Admnlstration costs related to investment activities Total return on investment Pension return tax Benefits paid Re-assurance cover received Insurance payments for own account Change to life assurance provisions, own account Change to profit margin Acquisition costs Administration costs JO, Insurance-related operating costs for own account, total Transferred return on investment TECHNICAL RESULT ON LIFE ASSURANCE Return on investment, equity PROFIT BEFORE TAX O.i O.I Tax PROFIT FOR THE YEAR Other total Income TOTAL INCOME FOR THE YEAR Realized profit 8 The profit for the year is transferred to equity PKA-rPeiision Furiikringsselskeib A/S

13 12 Annual Report 2016 Balance Sheet ASSETS All afidiints in DKK mill Company Group Note Shares in affiliated companies 19 18, Total investments in affiliated companies Shares 43, Unit trust: shares , Bonds 931,4 1,234, ,234.5 Deposits with credit institutes Derived financial instruments 4,8 10, Total other financial investment assets 1, , , ,303.9 TOTAL INVESTMENT ASSETS 9 1, , , ,303.9 Reassurance parts of provisions for insurance contracts 0,6 0, Receivables related to direct pension business with pensionholders , Other receivables TOTAL RECEIVABLES Corporate tax receivable Deferred corporate tax asset 5.?. 5.2 Cash in hand and at bank TOTAL OTHER ASSETS Interest receivables Other prepayments and deferrals TOTAL PREPAYMENTS AND DEFERRALS TOTAL ASSETS 1, , , ,391.4 Guarantees 10 Contingent asset 11 PKA+Pension Forsikritujisdskab A/S

14 Annual Report Balance Sheet LIABILITIES All amounts in DKK trill. Company Group Note Share capital Prerrium at emission Profit carried forward S S EQUITY Subordinate loan capital TOTAL SUBORDINATE LOAN CAPITAL Life assurance provisions 16 1, , , ,607.9 Profit margin on life assurance provisions TOTAL PROVISIONS FOR INSURANCE AND INVESTMENT CONTRACTS 1, , , ,607.9 Provisions for taxes TOTAL PROVISIONS FOR COMMITMENTS Debt regarding derived financial instrurrents Tax payable Other debt TOTAL DEBT PREPAYMENTS AND DEFERRALS TOTAL LTABTLITTES 1, , , ,391.4 Accounting policies 1 Five-year overview and financial highlights 2 Contingencies 18 Affiliated and associated parties, etc. 19 Risk and risk management 20 Specification of assets and their return 21 Sensitivity information PKA-rPensiun Fursikrinybseibkdb A/S

15 Annual Report 2016 Capital All amounts In DKK rtilll, Company Group Equity Equity as al 1 January TransfcrrGd to life assurance provisions, start of year Corrected equity, start of year Transfer from distribution of the year's Other total Incotre Total equity Company Group Capital base Equity Subordinate loan capital Total capital base i'ka i Pension Forsikringssdskah a/s

16 Annual Report 2016 Notes All amounts In DKK mill. Note 1 Accounting Policies TIig Annual Report for the Group and the Company has been prepared in accordance with the provisions of the Danish Financial Business Act and the executive accounting order from the Danish Tinancial Superviso ry Authority on financial reporting from insurance companies and pension funds. The executive order on the financial statements of pension funds and life assurance companies has been changed with effect from 2016, These changes relate to the implementation of the Solvency 11 rules. This has led to changes of the accounting policies applied: Life assurance provisions arc calculated as the current value of the best estimate of expected payment flows. A discounting interest graph calculated by FIOPA, the European supervisory au thority, Is applied together with member behaviour in regard to repurchase and premium-free policies. The items Life assurance provisions, Collective Bonus Potential and Provisions for Compensations are gathered in one item, "Life assurance provisions", which consists of the elements Guaranteed Payments, Individual Bonus Potential, Collective Bonus Potential and Risk Margin. The risk margin corresponds to the amount which the Company expects to have to pay another insurance enterprise for taking over the risk of settling the holdings. In connection with the open ing balance, the risk margin amounted to DKK 5,3 mill, and was covered by individual bonus po tential and equity. The return margin on life assurance provisions in 2016 was 0. The effects on the items of the financial statements from the change of accounting policies as from 1 January 2016 arc as follows: ^ DKK mill. Financial state ments Change to value adjustment Risk margin paid by Equity Regrouping of items Opening balance Equity Life assurance provisions Provisions for compensation 656,8 1,549, , Collective bonus potential 55, With reference to Sect, (2) of the executive order on financial statements it has not been found to be possible in practice, also in connection with the contribution principle, lo change the comparable figures, note information and five-year overviews as regards the period before 2016, which is why they arc not directly comparable with 2016, The Annual Report contains an Income Statement for the period 1 January - 31 December 2016 and a Balance Sheet as at , based on the new accounting principles. In addition, comparable figures for the corresponding period last year have been included, using the previous accounting principles. The Annual Report is presented in millions of Danish kroner with one decimal. Each figure is rounded off separately. Consequently, variations may exist between the totals and the sum of the underlying figures. Principles regarding the distribution of profits and/or losses A bonus regarding interest, risk and administration is given in advance to clients in relation to the bonus rates notified to the Danish PSA, The accounting profit for the year is then distributed among clients and equity on the basis of the following rules. pka+pi^n^inn Forsikringssclskab a/s

17 16 Annual Report 2016 The part of the realised profit for the year thai goes to equity consists of a return corresponding to the investment return before pension return tax plus a risk return supplement of 0.4% of the average life as surance provisions for the bonus-qualifying insurance policies. If the result obtain is not enough to grant equity and special bonus provisions this risk return, the remain ing return claim is transferred to the following years. Inadequate yield and outlays up to an including 2015 may be repaid over the coming five years if requested. As from 2016, the principles for allocation of risk yield will changc, as will the principles for repayment of any outlays from equity. Losses concerning the individual contribution groups covered, which losses are covered by equity and sur plus capital, may be retrieved in the subsequent financial year, if possible, from the individual and collec tive bonus potential of each group, The shares transferred from individual and collective bonus potentials in the subsequent financial year are reported to the Danish FSA. As from , a group division has been introduced for bonus-entitled insurance, cf. the executive order on contributions. The above-mentioned principles are thus applied on a group basis. Consolidated Accounts The Consolidated Accounts comprise the Company and affiliated companies, where the Company has a decisive influence. The Consolidated Accounts are made by combining (consolidating) accounting items with a uniform content in the Company and the affiliated company, while eliminating intra-group share holdings, inter-company accounts and interest. Intra-Group services are changed on market terms or cost-covering terms. Intra-Group trading in securi ties and other investment assets is charged at market value. Translation of currencies Transactions in foreign currencies are translated at the exchange rate of the transaction date. Balance Sheet items in foreign currencies are translated at the closing exchange rate of the balancc Sheet date. All currency gains and losses are included in the Income Statement under exchange rate regulation. General principles for recognition and measurement Assets are recognised in the Balance Sheet if future gains arc likely to accrue to the company and the value of the asset can be measured reliably. Commitments are recognised in the Balance Sheet if future gains arc likely to be paid by the company and the commitment can be measured reliably. The Income Statement recognises all income as it is earned, while costs are recogniscd by the amounts that concern the financial year under review. Purchase and sale of financial instruments are recognised on the transaction date and such recognition ends when the right to receive/pay cash flows from the financial asset or liability has expired, or If It has been assigned. Purchase or sales transactions which had not yet been carried out on the Balance Sheet dale are recognised in the Income Statement in the form of their loss or gain. In the first recognition, financial instruments are measured at current value. Measurement after first recognition is made as described under each accounting item below. PKA i Pension l-orslkrlngsselskab A/s

18 Annual Report Income Statement Premiums and compensations Premiums and compensations comprise the cases handled in the year under review. Reassurance The profit margin on the reassurance contract has been deduced from the reassurance premiums provided, so as to avoid that the Company's operating cosls for own account to become negative. This deviation from the rules is made in accordance with Sect of the Danish Financial Business Act, so as to ensure that the Annual Report gives a fair and true picture. Benefits paid Pension benefits comprise handled and paid-out pension benefits. Administration The Company pays a fixed annual price (rate) per member to PKA A/S for the agreed administrative ser vices; this amount includes salaries and fees to Management and Board, as well as audit costs. In addition, the Company pays a fixed fraction of a percent of the net asset current value to cover portfolio management, The rate and the fraction of a percent are determined on market terms. The Company's acquisition costs are recognised In the Income Statement. The costs of security administration are recognised as administration costs In connection with Investment activities. Return on investment Income from affiliated companies comprises the Company's share of the operating result of the affiliated company after tax. Interest and dividend, etc., Include the interest earned and the dividend received, etc.. In the year under review. Price adjustments consist of realised and unrealised gains on investment assets, including value regulation of investment properties. Transferred return on investment The transfer from the insurance business amounts to a proportional share of the result of the investment activities and the pension return tax corresponding to the ratio between the average equity and the sum of the average insurance provisions and the average equity. Pension return tax Pension return tax Is recognised In the Income Statement by an amount calculated on the basis of the customers' share of the PAL-payable return of the year under review. Corporate tax When the total income tax is divided, the complete distribution method is used according to which a com pany making a profit credits a company making a loss for the calculated tax from utilising the loss. Tax on the profit for the year is recognised with a correction for non-taxable Income and non-deductible costs. The tax is recognised as an inter-company co-taxation account (amount receivable or payable), while deferred corporate tax (tax asset or tax liability) Is recognised in the Balance Sheet, Any supplementary payment or refund in connection with payment of taxes Is considered a financial item and is not included In the calculated corporate tax. Balance Sheet Assets Capital participation PKA-Pen si on Forsikringsseiskab A/S

19 18 Annual Report 2016 Listed capital participation is measured at the value of stock exchange closing priccs on the Balance Sheet date, Unlisted capital participation is measured at current value based on an individual assessment of the com panies with a view to determining the price which such shares are expected to fetch. Measurement is based on the key ratios and valuation methods normally used when measuring companies. Units in mutual trusts Units in mutual trusts are measured at the value of the stock exchange closing prices on the Balancc Sheet date. Bonds Fixed interest bonds, convertible bonds and indexed bonds plus index-related adjustments are measured at the value of the stock exchange closing prices on the Balance Sheet date. The current value of drawn bonds is based on the present value of the bonds, which is close to the nominal value of the bonds. Other loans Subordinated loan capital is recognised as a calculated current value based on Information about the sol vency of the company. Provisions are made to losses if this Is warranted by the said information. Derivative financial instruments Derivative financial instruments used for interest risk hedging and other purposes are measured at current value. Instruments with a positive current value are entered as assets, while instruments with a negative current value are entered as liabilities. Capita/ participation in affiliated companies Capital participation in affiliated companies is measured at intrinsic value (the equity method). Using this method, the operating results of affiliated companies are recognised in the Company's Income Statement. The Company's profit and equity are thus identical to those of the Group. The accounting result from affiliated companies comes from using recognition and measurement methods identical to the principles used in the Company. Other items under assets Accounts receivable are recognised at face value minus write-downs to cover expected losses. Liabilities Provision for pension agreements and investment contracts Provisions for pension agreements and investment contracts are measured by the Company's Appointed Actuary. The life assurance provisions consist of the following elements: Guaranteed Payments, Individual Bonus Potential, Collective Bonus Potential and Risk Margin. The provision element entitled Guaranteed Payments Is measured in that, for each insurance policy, the market value of the expected, guaranteed payment flows is calculated. The market value is calculated by discounting Individual payments using the interest rate calculated by EIOPA, the European supervisory authority, minus the pension return tax. Guaranteed Payments contain an estimated amount to cover fu ture insurance payments stemming from insurance events which occurred during the financial year, but where no claim had yet been filed on the date of the Balance Sheet. Individual Bonus Potential contains the value of obligations to grant a bonus on the basis of the amount deposited under the individual insurance policy qualifying for the bonus. Collective Bonus Potential contains the share of the insurance holding of realised results which has been set aside as a collective provision for the Insurance policies qualifying for the bonus. The Risk Margin contains the amount which the Company must expect to have to pay to another insurance company to take over the risk of settling the holding. As far as possible, the Risk Margin is obtained pri marily from the Individual Bonus Potential or the Collective Bonus Potential - or alternatively from the capital base. PKA-I-Pension FoiT.ikritiyiseliikdb A/S

20 Annual Report In the assumptions concerning best estimate it is not possible to draw conclusions regarding the frequency of disablement and mortality on the basis of the Company's own observations. Consequently, experience from the owner group's pension funds is included in the determination of the current best estimate. Furthermore, mortality assumptions include the Danish FSA's benchmark for the expccted life cxpcctancy improvements. The discounting Interest rate Is the assumption that has the biggest effect on measurement of provisions, Profit margin The profit margin shows the present value of profit not yet earned by the Company on insurance policies which are to be recognised in the Income Statement over time. The profit margin is segregated from the life assurance provisions. Other items under liabilities Debt is measured at amortised cost, which normally corresponds to the facc value. Key ratios and sensitivity information Key ratios and sensitivity information are prepared In accordance with the rules of the Danish FSA's ex ecutive accounting order on financial reports covering insurance companies. PKA+Pon^ion Forsikringsselskab A/S

21 20 Animal Report 2016 Note 2 Five-year overview and financial highlights The Company Premiums Insurance payments * Return on investment Total insurance operating costs Result of reinsurance Technical result Profit for the year Total provisions for insurance and Investment contracts + 2,656 2,555 1,534 1,608 1,143 Total equity Total assets 3,412 3,276 2,977 2,391 1,936 The Group Premiums 1, :L Insurance payrrents * Return on investment Total insurance operating costs Result of reinsurance Technical result Profit for the year Total provisions for insurance and investment contracts * 2,714 2,555 1,534 1,608 1,143 Total equity Total assets 3,538 3,276 2,977 2,391 1,936 Financial highlights for the Company Return related to average interest products * % , Cost as a percentage of provisions 91 % Costs per policy holder kr Return on equity after tax % Solvency cover * ** % , * The ministericil order on financial statements was changed as from With rcfcrcncc to Scct. 84 (2) of the ministetial order, it has not been found to be practically possible to change the fiveyear overview, so as to make the figures for the period before 2016 in line with the new method. Consequently, the figures for are not directly comparable with ** The key figure called solvency cover is exerrpted from the audit requirement, cf. ministerial order no. 937 of 27 July 2015 on financial reporting of insurance companies and transverse pension funds, so no audit has been performed. PKA-Pension FursikringssGlskab A/S

22 Annual Report 2016?l Note 3 Gross premiums Direct insurance Prcrniirrs Deposits Group life assurance premium Company , Group Total gross premiums All gross prcrriums relate to direct insurance Insurance contracts Group life assurance policy holders Individually subscribed Insurance Subscribed as part of an employment contract Bonus entitlement Contracts with bonus entitlement Contracts without bonus entitlement Calculation of the number of policy-holder. Individually subscribed insurance Subscribed as part of an employment contract 5,121 5,441 10, ,121 5,441 10,771 6,118 Premiums divided Into countries Denmark Other EU countries Other countries Note 4 Company Group Price adjustments Shares , Jnvcstrrent fund shares ,9 Bonds Other loans ,1 Derivative financial Instrumenls , Cash at bank and in hand Total price adjustments Note 5 Company Group Change to life assurance provisions, own acc Guaranteed benefits Individual bonus potential Bonus potential on future preirturns Bonus potential on paid-up policy benefits Risk margin Compensation provisions Collective bonus potential 8. J I Total change to life assurance provisions, own account PKA i Pension Forslkrlngsselskab A/S

23 22 Annual Report 2016 Note 6 insurance operating costs, own account The Company's administration is handled by PKA A/S Wages and salaries Manageirent and significant fixed-pay risk-takers partially work for and are paid by PKA+. The actuary in charge works for, but is not paid by, PKA-k Managing director Torras Frydenberg received a total remuneration of DKK 2.053,300 from the joint administration company PKA A/S, covering all his functions. The Board of Directors received no remuneration. Detailed information about salaries in the administrative community PKA can be read at pka.dk. Company Group Salaries (amounts in DKK thousands) Salaries Pension contributions Payroll tax, etc Total salaries Management has received a fixed salary only, DKK 40,300. Other significant risk-takers, 6 persons, have received fixed salary only, totalling DKK 268,500. The average number of full-time equivalent employees In 2015 was 0.1, Auditor (amounts DKK 1, OOO) The auditor's work is very much done jointly with the work for the pension funds administered by PKA Adminstration costs include the auditor's fee, incl. VAT, in the following amounts: Company Group Dcloittc Statutory audit of the Financial Staletnsnts Other assurance engagements Other services Total audit costs Note 7 Company Group Corporate tax Corporate tax for the year under review Adjustment of deferred corporate tax Adjustment of corporate tax for previous years Total tax PKA+Pension Forsikrinyssdskab A/5

24 Annual Report Note 7 continued Company Group Corporate tax can be spccificd as follows: Tax on profit from ordinary operations Tax effect of: Non-taxable costs/incorre Adjustment of tax in previous years Regulation of deferred tax regarding previous years I alt Note 8 Company Group Realized profit Total realized profit which Is divided as follows: Addition of bonus and paynxnt from equity before pension return tax Pension return tax Provision for collective bonus potential ,6 Transferred to equity before corporate tax Individual bonus potential applied Total distributed A3 Return on equity receivable ^ The principles for sharing the realized profit and for calculating the risk supplement arc dlscribcd in Accounting policies. Note 9 Other financial investment assets PKA+Penslon's Investmant policy takes account of a number of social, environmental and ethical aspects. PKA+Pension does not Invest in cotrp^mes which deliberately and consistenly violate national legislation or rules laid down In International organizations supported by Denmark. Futhermore, PKA-f- Pension docs not Invest in companies that manufacture weapons. PKA-i Pension's clients may obtain a list from the Company of companies in which PKA l Pension has rrede direct investrrents. The net assets of the pension fund are administered by PKA A/S. Financial instruments (Company and Group) Financial derivatives 2016 Expiry, yr. Principal Book value Swap Currency future transactions Financial derivatives P.015 Expiry, yr. Principal Book value Swap Swap Currency future transactions PKA+Pension Forslkringsselskab A/S

25 24 Annual Report 2016 Note 9 continued In regard to financial instruments, significant conditions apply In regard to the development of interest rates, share prices and currcncics. In regard to financial instruments, such as bonds, shares, etc., there are no sprclal, significant conditions or terrre which influence future cach flows, The book value of derived financial instruments in the Balance Sheet is gross. The sum of ail with positive value is entered under asset item "Derived financial instruments". The sum of all contracts with negative value is entered under liability item "Debt regarding derived financial instruments". Note 10 Company Group Guarantees As guarantee for coirpliance with comrritments in hedging interest and share price risks, the Company has deposited bonds at a net value of? Note 11 Contingent asset In 2014, Danish VAT procedures were changed; certain services to pension funds are no longer subject to VAT, In February 20.1,6, the Company subnitted an application for repayirent of wrongfully collected VAT for the period 1 February to 2004 up to and including 2015 to the Danish tax authorities; processing of the application is still outstanding. It is still unclear to which extent the Company will achieve any such repayment, so the size of the expected receivable is uncertain. Note 12 Company Group Share capital Share capital as at 1 January , , Total share capital Other than the emission of DKK 5 mill, in 2012, there have been no share capital rtovemcnts the last five financial years. The share capital consists of 63,000 shares of DKK 1,000 each. The share capital is nol divided into Note 13 Company Group Premium upon emission Premium upon emission as at 1 January ,0 225,0 Total premium upon emission CKA i Pension horslkrlnosselskab A/S

26 Annual Report Note 14 Company Group Profit carried forward Profit carried forward Transferred til life assurance provisions, start of year Carried forward from distribution of profit Total profit carried forward Note 15 Subordinate loan capital Interest on subordinate loans In?0.t6 represented a cost of DKK 2 mill, against a cost of DKK 2 mill, in From the subordinate loan capital, DKK 65 mill, may be Included when calculating the capital base. The following enterprises have contributed subordinate loan capital that exceeds 10% of the total loan capital: The State Registered Nurses' and Medical Secretaries' Pension Fund DKK 32 rrill. The Healthcare Professionals' Pension DKK 14 rrill. The Social Workers', Social Pedagogues' and Office Staff Pension Fund DKK 19 mill. The loan is a non-amortized loan in DKK, it carries interest at the rate of the Danish 5-year rate plus a risk supplement of 2%. No repayment is made on the loan and no repayment claim can be maid on the creditor's initiative or without the approval of the Danish Financial Supervisory Authority. Note 16 Company Group Life assurance provisions Life assurance provisions as at 1 January 1, , , ,364.9 Transfen*ed from equity, start of year Corrected life assurance provisions, start of year 1, , , ,364.9 Profit margin, start of year Total pension provisions, start of year 1, , , ,729.8 Collective bonus potential, start of year Accumulated value adjustment, start of year Retrospective provisions, start of year 1, , , ,663.7 Gross premums Interest added Insurance benefits Cost supplement after addition of cost bonus Risk gain after addition of risk bonus Other Retrospective provisions, end of year 1, ,493,2 2, ,858.1 AccUtrulated value adjustment, end of , Collective bonus potential, end of year Total pension provisions, end of year 1, , , ,915.2 Used bonus potential on deferred pensions Transferred from collective bonus potential, end of year Transferred from compensation provisions, end of year Profit margin, end of year Total Life assurance provisions 1, , , ,972.8 PKA+Pension Forsikringsselskab A/S

27 Annual Report 2016 Note 16 continued Break-down of provisions on interest Individual Collective groups of insurance portfolios comprised Guranteed bonus- bonus- Risk by the contribution principle: benefits potential potential margin Pension provisions as at 1 January 2016 Interest group 1, [0%;1%[ Interest group 2, fla/o;2%[ 193,5 0, Interest group 3, 12%;3%[ Interest group 4, [3%;4%[ Interest group 5, [4%;5%] Interest groups, total Break-down of provisions on interest Individual Collective groups of insurance portfolios comprised Guranteed bonus- bonus- Risk by the contribution principle: benefits potential potential margin Pension provisions as al 31 December 2016 Interest group 1, [0%;l%f Interest group 2, [1%;2%[ Interest group 3, [2%;3%[ ,2 0.6 Interest group 4, [3%;4%l Interest group 5, [4%;5%] Interest groups, total Break-down of provisions on underwriting Individual Collective interest of the insurance portfolios not Guranteed bonus- bonuscomprised by the contribution principle: benefits potential potential Total Pension provisions as at 1 Januar 2016 Calculation Interest [0%;1%] 1, ,209.6 Pension provisions as at 31 Dscembcr 2026 Calculation interest f0%;l%] 721. b Division of collective bonus potential on risk groups and cost groups, gathered for the insurance holdings covered by the contribution principles: PJsk group, disablen'ent Risk groups, total Cost groups, total All groups Return percentage and bonus rate for Insurance holdings covered by the Return Return contribution principle: percentage percentage Bonus rate Bonus rate Interest group 1, (0%;1%[ 5.5% 2.2% 10.0% 10.9% Interest group 2, fl%;20/al 5.5% 2.2% 1.4% 0.0% Interest group 3, [?.%;3%[ 5.5% 2.2% 3.2% 0,3% Interest group 4, f3%;4%[ 5.5% 2.2% 0.0% 0.0% Interest group 5, [4%;fj%] 5.5% 2.2% 27.5% 0.0% PKA+Pension rorsikringsselskab A/s

28 Annual Report 2016?7 Note 16 continued Return on customer funds after cost before tax, divided into products Average interest rate 4.5% Outstanding equity return as per Sect. Reduction Reduction in 13 of the ministerial contribution Start of in financial profit for the End of order: year statements year year Interest group A, r3%;4%r Interest group 5, [4%;5%] 0, ,3 0,0 Interest groups, total ,3 0.1 Risk group, Death Risk group, Survival Risk groups, total Cost groups, total All groups, total Note 17 Company Group Provisions for taxes Deferred tax 1 January Deferred tax for the year 0.6 0,1 0,6 0.1 Deferred tax 31 December Deferred tax concerns: Investment assets Deferred pension return tax , Note 18 Company Group Contingencies As security for insurance-taker provisions, the following assets have been registered: Capital participation In affiliated companies Capital participation b 0.0 Unit trust shares Bonds , ,228.3 Deposits with credit Institutes Derivative financial instrumants Cash in hand and at bank Receivable interest J Total as security for provisions 1, , , ,767.4 PKA i Pension Horslkrlngsselskob A/S

29 28 Annual Report 2016 Note 19 Affiliated and associated parties, etc. The Company holds shares in the following affilated companies: Activity Com- Corn- Owner pany pany Domiciled in ship profit equity PKA I- An holt Havvindrnsllcpark K/5 PKA-f- GP ApS Investment in wind farm Gentofte General partner Gentofte 100.0% 1, ,0% The following shareholders holds shares In the Company: The State Registered Nurses' and Medical Secretaries' Pension Fund, Tuborg Boulevard 3, DK-2900 Hellerup, share 49.2% The Hcaithcare Professionals' Pension Fund, Tuborg Boulevard 3, DK-2900 Hellerup, share 21,0% The Social Workers', Social Pedagogues' and Office Staff Pension Fund, Tuborg Boulevard 3, DK-2900 Hellerup, share 29.8%. Note 20 Risk information A number of risks are associated with PKAH- Pensions' business model. In connection with its work on risk and solvency, the Board of Directors has identified the major risks associated with the business model: Life assurance risks Market rsik, including interest risk Outsourcing risk PKA+ Pension has taken out reinsurance in regard to disablement and death of individual persons. The business model and strategy for PKA+ are being reconsidered. Consequently, further scale reduction of the corrpany has been put; on hold. PKA-f- Pension will observe the financial and insurancerelated risks associated with the existing schen^cs and ensure that the company develops in a reassuring manner. PKA+Pension Forsikrlngsselskab A/s

30 Annual Report Note 21 Specification of assets and their return Accounting value Return in % p. a. before tax Primo Ultimo Lifted capital Investments Unlisted capital investments Total capital investments Government- and trwrtaaae credit bonds Credit bonds and emerglnq marked bonds Total bonds and loans 1, , Other financial investment assets Derivative financial instruments for hedging the net chanqe of assets and liabilities Return in % is weighted in tirne based on the current return. Note 22 Sensitivity information Event Impact on capital base Interest increase 0,7 % points -7.4 Interest drop 0.7 % points -36,4 Share price drop 12 % Real property price drop 8 % 0.0 Exchange rate risk (VaR99.5 %) -7,2 Loss on counterparts 8 % PKA+Pension Forslkriiiybselskati A/S

31 Arsrapport 2016 PKA+ Pension Forsikringsselskab A/S Godkcndt pa penslonskassens gencralforsomling, den 26. aprll 2017 DI rig en t l uhora Boulovaid 3, 2900 Hellerup - CVR nr

32 PKA+ Pension Forsikringsselskab A/S Indholdsfortegnelse Lcdclsesberetnlng 2 Ledelscspategnlng 7 Den uafhconglge revlsors revisionspsteynlng. 8 Resultat- og totalindkomstopg0rclse, 10 Balance. '11 Kapltalforhold.. 13 Noter 14 Tuborg Doulnvnrd 3, 2900 Hellerup - CVR nr ] 91

33 2 Arsrapport 2016 Ledelsesberetning PKA+Penslon Porslkrlngsselskab A/S driver llvsforslkringsvirksarnhed. PKA+ har Vceret under afvikling dc scncste Sr, og bestanden cr reduceret gennem forskelllge tlltag, Et nyt strateglsk fokus betyder, at dcr er Igangvcerende overvejelfier otn at udviklc selskabet fremadrcttct, Hovedtallene i denne beretnlng er pr<«.senteret pa konccrnbasis medmindre andet fremgsr specifikt. Arets resultal 0 Koncernens resultat for 2016 hlev et oveskud pa 28,6 mio. kr. Overskuddet foreslas af bestyrclsen overfort til neeste ar. Del samlede afkast f0r pensionsafkastskat cr 5,5 %. Arels resultal vurderes at vaere tllfredsstillcndc, og PI<A+ er stadig vclkonsollderet. Aret der gik 0konomi 2016 var preeget af to store bcgivenheder; I jiml bcsluttede brlteme at Storbritannlen skal foiiadc EH efter nsermere forhandling af vilksr, og i novcmber blev Donald Trump valgt til USA's nieste preesldent Indtil vldere har ingcn af beylvenhedernc haft mterkbare 0konomlske konsekvenser, og I USA steg akticmarkederne slik Itnod forventmng efter valget af Trump. Ellers b0d 2016 p fortsat inoderat v^kst og faldende arbejdsl^shed i bade USA og Europa. Inflationen steg prlmsert som ffllgc af stigende ravarepriser. Stigende ravarepriser bldrog ogsa til at stablllsere den ekonomiske udvikling I emerging markets lande, De amerikanske og eurupcelske ccntralbanker fortsatte dcres lernpelige pengepolitlk I 201G med en kort rente omkriny mil. I slutningen af 2015 satte den amerikanske centralbank dog renten op, og den europce- Iske centralbank reducerer opksbene af obligationer fra marts Begge dele skal ses I lyset af den stigende inflation og moderate v^ekst. De globale aktlcmarkeder steg med 8,7 % I I det hole taget gav mere risikofyldte aktiver gode af kast i 2016, mens renteudvlklingen i store treek var uforatidret. Kon to rente PKA+'s kontorente har veeret 4,8 % fer skat 1 l0bet af Kontorenten er hsevet til 5,0 % far skat l Forretningsgrundlag p <A+ har va:rct under afvikling de seneste r, og I 2016 cr en v esentlig del af medlemmerne med supplerendc opsparlngsprodukter overf0rt til pensionskasserne I PKA. Nedskalerlngen er dog sat ps pause, og den fremtldigc stratcgi og forretningsmodel er under oveivejelse. Omsffitningen v PKA+ samlede indtcegter fra I0bende premier og engangsindskud var i rcgnskabsaret 2016 i alt 13J,0 mio. kr. mod 186,6 mio. kr. aret for. Ind beta linger fra Indlviduelle kunder var i 2016 pa 113,0 mio. kr., hvilket or en nedgang pa 36,2 mio. kr, I forhold til 2015, De pi cemiebetalte forsikrmger er faldet til 11,4 mio, kr. I 2016, ligesom der har v^ret en nedgang I engangsindskud fra 170,6 mio. kr. i 2015 til 121,6 mio. kr PKAi Pension Porsikrihgssdskab A/S

34 Arsrappoi t Ejerforhold PKA+Penslon Forslkringsselskab A/5 er ejet af de 3 pcnsionskasser Inden for social- og sundhcdssektoren, der er samlet I admlnistrationsselskabet PKA A/S, med folgendc tbrd.ellng af aktierne: Penslonskasscn for Sygeplejersker og Lcegesekret«rcr 49,2 Pcnsionskassen for Sundhedsfagligc 21,0 Penslonskassen for Socialrldglvere, Soclalp«dagoger og Kontorpersonale 29,8 Anholt Havvindm0llepark K/S Seiskabcts aktlvltet er ejcrskab af Interesscntskabsandel i Anholt Hawindrngllepark 1/5 Sclskabets resultat for 201G udgor et overskud pa 1,8 mlo.kr. PKA+ GP ApS Selskabet fungerersom komplementar for investeringen I Anholt Havvlndinflllepark K/S. Resultat for 2016 er 0,0 mio. kr. Tnvesteringer og samfundsansvar PKA+ retningslinjcr for ansvarlige investeringer falge princippcrng I FN's Global Compact. Sorn et tillceg til KN's Global Compad: har PKA-i- vedtaget en politik for, at der Ikkc Investeres i kontroversiclle vaben, kulmlner eller tobak. I bestyrdsens berelnlng til gencralforsamllngcrnc for pensionskasserne 1 PKA samarbejdet er der redegjort for udvlklingcn 1 arbejdel med retningslinjerne og det aktivc cjerskab. Beretningernc er tilgcengellge pa pka.dk. Det aktive ejcrskab ud0ves ved Isbende at v«re 1 dialog med de selskaber, der cr investeret I og sikrc, at dc overholder PKA+'s retningsllnjer, Lever selskabet ikke op til rctningslinjerne, gsr PKA+ I konstruktiv dialog med selskabet for af bringe overtra?ddscn til oplw. Forts^tter selskabet med at overtrade retningsllnjerne og er der ikkc udslgt til varig forbedrlng hos selskabet, vil selskabet bllve ekskluderet fra PKA+'s investeringsunlvers. pka.dk offentllggwres den aktuelle llste over ckskluderede selskaber. PKA+'s aktive ejerskab varctagcs i samarbejde mod en International screenings- og engagementspartner, der giver PKA+ ekstra gennemslagskiaft i hsndh«vclsen af retningsllnjerne. I forl^engelse af PKA+'s ret ningsllnjer arbejdnr samarbejdspartneren ligeledes for at fremme best-practices gennem langslgtede dlalogcr med de selskaber, som PI<A+ liar investeret i. Pa pka.dk findes desuden uddybende redegarelser for overholdelse af retningsllnjerne og dot aktive ejerskab tog PKA+ pa baggrund af finansielle og klimamtessige overvejelser sit fflrstc skrldt mod at reducere eksponeringen mod C02-iritenslve selskaber. Typlsk er der talc om mine-, forsynlngs- og energlselskaber. PKA-i- gar I dialog med selskaberne, hvormalet er, at de reducerer deres kulforretning og omstillcr til mere klimavcnligc energikilder. Selskaberne skal freml«gge en forretningsstrategi, der udfaser der kulaktiviteter, tager hnjde for reguleringer af energisektoren og det wgede politiske kllmafokus. Fj selskabet Ikke I stand til det, sa sagger PKA+ sin ejerandel og ekskluderer selskabet. Forelsbig er 'ID selskaber blevet eks kluderet. PKA+Pfin.^inn Korslkrlnysselskab A/S

35 A Arsrapport 2016 Ambitionen er Ikke at Scelge sine ejcrandclc, men derlmod psvlrke selskaberne i cn b3!reclyytig reining. Det aktive ejerskab har vist sin v^rdi og rykket selskaber I cn grflnnere retnlng. Indtil videre liar 10 selskaber lagt strategler for reduktion af kulaktivitctcr, og PKA+ bar derfor beholdt sine cjerandele af selska berne. Strateglen fra kulsektoren blev i 2016 f0it videre til ollesektoren, hvor PKA+ ckskluderede 2 selskaber, hvor udvinding af oliesand udg0r over 50 procent af forretningcn. PKA+ forventer, at der kommer yderligcrc ckskiusioner I ollesektoren I 2017, Afkast Det samlede afkast I 2016 blev pa 5,5 %, svarende til 108,5 mlo. kr. Samtllge aktivklasser gav positive afkast i Aktier og kredltobligatloner bidrog mcri henholdsvls 9,0 % og 11,0 % I afkast. Afkastet pa Investment grade obllgationer var pa 2,4 %, hvllket ogs3 er tilfredsstlllende. Omkostnlnger PKA+ koncernnns samlede omkostnlnger bclsb slg til 9,5 mio. kr., mod 10,7 mio.kr. I Medarbejdere og administration PKA+ Pension bar en admlnlstralionsaftale med PKA A/S. PKA A/S har outsourcet en del af sine admini strative opgaver til Forca A/S. Dlrektionen og vsesentlige risikotagere med fast l0n er delvist ansat og afl0nnet af PKA+ Pension. Den ansvarshavende aktuar er ansat men Ikke aflpnnet af PKA+ Pension. Alle svrlge ansatte i PKA+ Pension er samtldkj ansat I PKA A/S eller Forca A/S, men er Ikke afl0nnet af PKA+. Status for opfyldelse af msltal for det underrepreesenterede!t0n i iedeisen Der er i lov om finansiel vlrksomhed krav om, at flnansielle virksomheder skal opstllle msltal for den k0nsma?sslge reprecsentation i bestyrelsen samt udarbejde en politik for llgereprcesentation i Iedeisen af selskabet. Bestyrelsen I PKA-i- Pension har fire medlemmer. Bestyrelsen har besluttet at maltallct for savel meend som kvinder I bestyrelsen skal v^crc 25 %, svarende til en fordeling med 3 af det ene k0n og 1 af det andet k0n. Ved arets udgang var den k0nsm«sslge andel I bestyrelsen sadan, at der var 75 % meend i bestyrelsen og 25 % kvinder. Efter cn udskiftnlng af et bestyrelsesmedlem pr. 1. Januar 2017 er kflnsfordellngen 50 % mcend og 50 % kvinder. De opstillede maltal er saledes opfyldt. Der er Ikke vedtaget en politik for llgereprcesentation i ledelseslagene under direktionen 1 PI<A+. PKA+ Pension totaladminlstreres af PKA A/S. PKA A/S havde I 2016 en k0n5meessig fordeling I ledelseslagene under direktionen pa 57 % masnd og 43 % kvinder, og der er pa den baggrund Ikke udarbejdet en politik for kensmasssig llgereprcesentation I de 0vrige ledelscslag. Revisionsudualg I henhold til lovgivningen skal PKA+ Pension etablere et revlslonsudvalg. PKA+ Pension har i overensstemmelse mod loven valgt, at revlsionsudvalgets funktloner ud0ves af den samlede bestyrelse. Mindst et medlem skal have kvalifikationer indenfor regnskabsva:sen eller revision. Formanden for revisionsudvalget er Susanne Kure, som opfylder kravet om kvalifikationer indenfor regnskabsveescn eller revision. Risici og solvens forbundet med PKA+ Pensions forretningsmodel p <A+ har i lebet af 2016 overf0rt en Vccsentlig del af medlemmerne med supplcrende opsparingsprodukter til penslonskasserne I PKA, Forretnlngsmodellen og strateglen for PKA+ er under genovervejelse, men har endnu Ikke udm0ntet sig I en konkret strategl, Det betyder, at ydcrligere nedakaleting af selskabet er sat pa pause, Selskabets risikostyring er i denne overgangsperiode fokuseret pa overholdelse af solvenskravet. Afstanden til solvenskapitalkravet (SCR) er stor, og kun en meget alvorlig og icengerevarende finansiel krise vil kunne eendre dette. PKA-I Pension Fcrslkringsselskiit A/5

36 Arsrapport Solvens 11 Pr. 1. januar 2016 tradte Solvens JI reglerne i kraft, og der er I denne forbindelse udstedt nye regnskabsregler, som sikrcr cn h0j grad af konsistens mellem opgorelser til solvensformal og opg0relser til regnskabsmccsslge formsl. Overgangen til de nye regnskabsreglcr indebarer blandtandet at kundeadfcerd skal Itidregnes I livsfors.ikringshgnstettelseme, og at det skal anvendes en dlskonterlngsrentekurve opgjort af den europceiske tilsynsmyndlghed, KIOPA. Prlmo 2016 er dc samicdc forsikringsnuessige hensabttelser steget med 5,7 mio.kr. Det skyldes, at Ikke alle kontributlonsgrupper bar tilstrffikknligt bonuspotcntiale til at deckkc stignlngcn i dc garantcrcdc forpilgteiser, Stigningon i de garanterede forpllgtelser medfsrer en reduktlon I bonuspotentlalerne pi 47,7 mio. kr. og de garanterede forpligtelser stiger fra 1.445,0 mio. kr. til 1.538,5 mio. kr. Stigningen skyldes prlm^rt eendringen i den anvendte rentekurve. Kapitalforhold Stigningen 1 de samlede farslkringsmfessige henscettelser ps 6,7 mio. kr. prlmo 2016 er udglftsf0rt ps egenkapitalen. Egenkapitalen er herpfter for0gct mcd arets rcsultat pa 28,6 mio. kr. og udgar ultimo 678,6 mio. kr. Kapitalgrundlaget ersaledes 743,6 mio. kr. mod 686,1 mio. kr Solvenskravet SCR eropgjorl efter standardniudellen. Pr. 1. januar 2016 erscr opgjort til 141,6 mio. kr. og udg0r ultimo ,5 mio. kr. Ny regnskabsbekendtgorelse Flnanstllsynet har udstedt ny regnskabsbekendtgorelse g^eldcnde fra Bortset fra pavirkning af de fdrslkrlngsmeesslge henscettelser, som beskrevet ovenfor, vil aend ring erne kun I begreenset omfang pavlrke selskabet. Henscettelser til forslkrlngsmfesslge forpllgtelser Henscettelserne til forsikrings- og Investehngskontraktcr er i 2016 rcduceret med 465,0 mio. kr. til 1.142,9 mio. kr, Uslkkerhed ved Indregnlng og msling Ved udarbejdelsen af arsrapporten foretages en rsekke skpn og vurderlnger om fremtldige forhold, som har Indflydelse pa den regnskabsmasssige veerdi af aktlver og forpligtelser. Dc veesentligstc omradcr omfattcr livsforsikringshenseettclser samt veerdlansa^ttelsc af unoterede alter native Investerlnger. Ledelsen vurderer, at da anvendte forudscetninger er forsvarlige men forbundet med en vis usikkerhed. r0lsomhcdsoplysnlngcr for en rsekke af de anvendte forudssetnlnger fremgar af note 22. Forventtilnger1 til fremtiden I savel USA som Europa forventes vaiksten og Inflatlonen fortsat at stige moderat, samtidig mcd at arbejdslosheden vl! falde. Stigende Inflation vil give anlcdnlng til mindrc stramnlnger af pengepolltlkken i bsde USA og Europa. Politlsk er der dog en rzekke beglvenheder, der kan give anlednlng III uro pa de flnanslelle rnarkeder. for det f0rste er dot endnu usikkert, hvilkcn politik den ny amcrikanske rcgering vil f0re. Det gceldcr for b de udenrlgs- og handelspolltlkken, samt den tfkonomiske politik, Gennemf0res eksempelvls handelssanktioner mod Mexico og Klna, vil det medfere en lavere global v ckst. Cn storre finanspolltlsk ekspanslon vil formentlig medfere 0get inflation, og dermed yderligere rentestigninger udover dem der I ojebllkket er forventet I de amerlkanske obllgationsmarkeder. Det vil plvlrke de korte renter mest, mens de lange ren ter vil pavlrkes mindre. For det andet er der valg I Frankrig, Holland og Tyskland. I f0rste omgang er det valget I Frankrlg I foraret, der tiltrzekkcr sig opmecrksomhcd i forhold til det h0jrcoricntcrcdc parti Front Nationales mullghedcr for at vlnde pra^sldentposten. I alle de riitvnte lande er der dog tnullghed for valg af mere nationallstlske partler, som, I tlllaig til Brexlt, kan udfordre EU's sammenhcengskraft. PI<A+ er fortsat robust og 5t r godt rustet I forhold til dlsse udfordrlnger. Hcendolser efter balancedagon Der har Ikke Vceret beglvenheder efter balancedagen, som har Vcesentlig indflydelse pa koncernens 0konomiske forhold. PKA+Pension ForsikrirKisselskab A/S

37 6 Arsrapport 2016 Ledelseshverv Bestyrelsens ledelseshverv er f0lgeiide: Bestyrelsesformand Peter Damgaard Jensen Adm. Direkt0r I PKA A/S Adm, Dlrektor I tro pensionskasser, dcr cr adminlstreret af PKA A/S Adm. Dirckt0r i pensionskasscrncs cjendomsaktiesclskaber Bestyrelsesforrnand I A/S Kjobenhavns CJendomsselskab BestyrelsGsformand I Forst cdcmes Ejendomsaktiesclskab Bestyrelsesforrnand I PKA AIP A/S Bestyrelsesforrnand I Poppelstykket 12 A/S Bestyrelsesforrnand I PKA Skejby Komplemcntar ApS Bestyrelsesforrnand I PKA Skejby P/S Neestformand I Forca A/S Bestyrelsesmcdlem I Forslkringscrganlsationernes Fasllessekretarial F.M.B.A. Bestyrelsesmedlem Michael Nellemann Pedersen Dlrekt0r I ejendomsaktieselskaber ejet af de 3 pcnslonskasser, dcr er adminlstreret af PKA A/S Direktwr og bestyrelsesmedlem I A/S Kj0bcnhavns Ejendomsselskab Dlrekt0r og bestyrelsesmedlem i firs teed ernes Ejendomsaktleselskab Dlrckt0r og bestyrelsesmedlem I OPP HoldCo ApS Bestyrelsesmedlem 1 PKA A1P A/S Bestyrelsesmedlem I Hotel Koldingfjord A/S Bestyrelsesmedlem 1 Refshaleeen Holding A/S Bestyrelsesmedlem I Refshaleflens Ejendomsselskab A/S Bestyrelsesmedlem I Margretheholmen P/S i Bestyrelsesmedlem I Komplementarselskabet Margretheholm ApS Bestyrelsesmedlem I PKA Skejby Komplementar ApS Bestyrelsesmedlem 1 PKA Skejby P/S Bestyrelsesmcdlem I Komplementarselskaber PKA AE ApS Bestyrelsesmedlem i P/S PKAE Ejendom Bestyrelsesmcdlem 1 Investerlngssclskabet af 2'!, februar 2015 A/S Bestyrelsesmedlem I Poppelstykket 12 A/S Bestyrelsesmedlem 1 Dansk Sklbskredit A/S Bestyrelsesmedlem I Danmarks Sklbskredit Holding A/S Bestyrelsesmedlem Annegrete Birclc Jakobsen Best^'relsesmedlem i A/S Kjobenhavns Ejendomsselskab Dest^'relsesmedlem i Forstcedernes Ejendomsaktleselskab Bestyrelsesmedlem I PKA Skejby Komplementar ApS Bestyrelsesmedlem 1 PKA Skejby P/S Bestyrelsesmedlem I Aktleselskabet af 1. december 2004 Bestyrelsesmedlem I Poppelstykket 12 A/S Bestyrelsesmedlem Susanne Kure Bestyrelsesmedlem I Penslonskassen for Socialradglvere, Socialpcedagoger og Kontorpersonale Bestyrelsesmedlem i investerlngsselskabet af 24. februar 2015 A/S Bestyrelsesmedlem I Genan Holding A/S q Na-;stformand I Danmarks Forsknlngs- og Innovationspolltiskc Rad PICA'i-Pension Forslkrlng^olslcab A/S

38 Aisi apport LedelsespStegning VI hardags dalo behandlet og godkcndt arsrapporten for regnskabsarnt 1. januar - 31, deceml>er 2016 for PKA+Pension Forsikrlngsselskab A/S Arsrapporten aflnegges i ovcrcnssletnrnelsc med lov om finansiel virksornhed. Det er vores opfaltelse, at koncernregnskabet og Srsregnskabet giver et retvlscnde blllede af koncerncns og selskabnts aktiver og passivcr og finansiellc stilling pr. 31. december 201G eg resultatct af koncemens og sclskabets aklivitctcr for regnskabsaret 1. januar december Lodelsesberetningcn Indeholder efter vores opfattelsc et retvisende billcdc for udviklingen i koncemens og selskabcts aktlvlteter og 0konomlske forhold, arets resultater og koncemens og selskabels flnanslelle stil ling samt en bcskrivelse af va?scntlige rlslcl og usikkerhedsfaktorer, som koncernen henholdsvis selskabet star over for. Arsrapporlen Indstilles til generalforsamlingens godkcndelse. Hcllerup, den?.0. marts 2017 Direktlonen: Hellerup, den 20. marts 2017 Bestyrelscn: i, PKA+Ponslon Forslkrinysselskab A/S

39 Arsrappott 2016 Den uafhcengige revisors revisionspstegning Til kapltalejerne I PKA+Pension Forsikrmgsselskab A/S Konklusion Vi har reviderct koncernregnskabct og arsreytiskabet for PKA+Pension Forslkrlngsselskab A/S for rcgnskabssret 1. januar dccember 2016, der omfatter resultatopgorelse, totallna'komstopg0relse, ba lance, egetikapitaiopg0rcl5e og noter, hcrunder anvendt regnskabspraksis, for henholdsvis koncernen som selskabet. Koncernregnskabet og arsregnskabet udarbejdes efter lov om finansiel vlrksotnhed. DGt or vores opfattelse, at koncernrcgnskabec og Arsregnskabet giver et retvisendc billede af koncernens og selskabets aktiver, passive?!' og flnansielle stilling pr. 31. decembcr 2016 saml af resultatet af koncer nens og selskabets aktlvlteter samt koncernens pengestr0mme for reynskabsarot 1. januar decem bcr 2016 i overensstemmelsc med lov om flnanslel virksomhed. Grundlag for konklusion Vi har udfflrt vores revision I ovcrensslemmelse med Internationale standarder om revision og de ydeiilgere krav, der er gccldende I Danmark. Vores ansvar Itelge disse standarder og krav er n^rmere beskrevet i revisionspategningens afsnit 'Rcvisors ansvar for revisionen af koncernregnskabet og Srsregnskabet'. VI er uafhaenglge af koncernen I overensstemmelse mod Internationale etiske regler for revisorer (Ifc'SBA's Etlske regler) og dc yderllgere krav, der er galdende i Danmark, Ligesom vi har opfyldt vores etiske forpligtelser i henhoid til disse regler og krav. Det er vores opfatlelse, at det opnaede revisionsbevis er tllstraekkellgt og egnet som grundlag for vores konklusion. Ledelsens ansvar for koncernregnskabet og Arsregnskabet Ledelsen har ansvaret for udarbejdelsen af ct koncernregnskab og et arsregnskab, der giver et retvisendc billede 1 overensstemmelse med lov om flnanslel virksomhed. Ledelsen har endvidere ansvaret for den interne konlrol, som ledelsen anser for nodvendig for at udarbejde et koncernregnskab og et arsregnskab uden VcGsentlig fcjlinformatlon, uanset om denne skyldes besvigelser eller fejl. Ved udarbejdelsen af koncernregnskabet og arsregnskabet er ledelsen ansvatiig for at vurdere koncer nens og selskabets evne til at foitsastte drlften, at oplyse om forhold vedrprende fortsat drift, hvor dette er relevant, samt at udarbejde koncernregnskabet og Srsregnskabet pa grundlag af regnskabsprinclppet om fortsat drift, medmindre ledelsen cnten har til henslgt at likvidere selskabet, indstllle drlften eller ikke har andet reallstlsk aiternativ end at g^re dette. Revisoi's ansvar for revisfonen af koncernregnskabet og Arsregnskabet Vores mal er at opna h0j grad af sikkerhed for, om koncernregnskabet og Arsregnskabet som helhed er ^ uden vcesentllg fejlinformation, uanset om dette skyldes besvigelser eller fejl, og at afgive en revisionspategning mod cn konklusion. H0j grad af sikkerhed er ct h0jt niveau af sikkerhed, men er Ikke en garantl for, at en revision, der udf0res I overensstemmelse med Internationale standarder om^revision og de yder llgere krav, dor er geeldende i Danmark, altld vll afdeckke vassentllg fejl information, nar sadan findes. Peji- Informationer kan opsta som f0lge af besvigelser eller fejl og kan betragtes som v^sentlige, hvis det med rimelighed kan forventes, at de enkeltvis eller samlet har indflydclse p2 de pkonomiske beslutninger, som rcgnskabsbrugerne trreffer pa grundlag af koncernregnskabet og Srsregnskabet. Som led I en revision, der udfores 1 overensstemmelse med internatlonale standarder otn revision og dc yderligere krav, der er geeldende i Danmark, foretager vl faglige vurderinger og opretholder professlonel skepsis under revisionen. Herudover: Identlflcerer og vurderer vl risikoen for vcesentllg fejiinformation I koncernregnskabet og arsregnskabet, uanset om denne skyldes besvigelser eller fejl, udformer og udferer revisionshandiinger som rcaktion pa disse risici samt opnar revisionsbevis, der er tllstraskkeligt og egnet til at dannc grundlag for vores konklusion. Risikoen for ikke at opdage Vcesentllg fejiinformation forarsaget af besvigelser er h0jere end ved VcGsentlig fejiinformation forarsaget af fejl, idet besvigelser kan opfatte sammensvcergelser, dokumentfalsk, bevldstc udcladelr.er, vildledning eller tilsldesccttelse af Intern kontrol.. Opnar vi forstaclse af den Interne kontrol med relcvans for revisionen for at kunne udforme revisions handiinger, der er passende efter oinstcendighederne, men Ikke for at kunne udtrykke en konklusion om cffektlvlteten af koncernens og selskabets interne kontrol.. Tager vi stilling til, om den regnskabspraksis, som er anvendt af ledelsen, er passende. samt om de regnskabsma*sslge sk0n og tilknyttede opiysninger, som le'delse har udarbejdet er rimelige. Konkluderer vi, om ledelsens udarbejdelse af koncernregnskabet oy arsregnskabet pa grundlag af regn skabsprinclppet om fortsat drift er passende, samt om der ps grundlag af del opnaede revisionsbevis er PKA-f Pension Forsikrlngsselskab A/S

40 Arsrapport Vcesentlig usikkerhed forbundct med beglvenlieder eller forhold, dcr kan skabe betydelig ivlvl om koncernens og selskabcts cvne til at forts^tte driften. Hvls vi konkluderer, at der er en Vcesentlig usikkerhed, ska! vi i vores revislons^tegning gore opmcerksom pa oplysninger herom I koncernregnskabct og arsregnskabet eller, Iwis sldanne oplysninger ikke er tllslriekkellge, rnodificcrc vores konkluslon, Vores konklusioner er baseret pa det revislonsbevls, der er opnact frcm til datoen for vores revisionspltcgning. Frerntidigc begivenheder eller forhold kan dog medf0re, at koncernen og sclskabet Ikke la?ngere kan fortscette driften. Tager vi stilling til den samlede preesenlallon, slruktur og indhold af koncernregnskabet og arsregnskabet, herunder noteoplysnlngerne, samt om koncernregnskabet og arsregnskabet afspejler de underllggendc transaktloner og begivenheder ps en ssdan made, at dcr gives et retvlsende billede heraf. Opnar vl tllstrcekkeligt og egnet revislonsbevls for de flnanslelle oplysninger i viiksomhederne eller Porretnlngsaktlvlteterne i konccrnen til brug for at udtrykkc cn konkluslon om koncernregnskabct. Vi cr ansvarlige for at lede, f0re tilsyn og udfpre koncernrevislonen. Vi cr cncansvarlige for vores revlsionskonkluslon. Vi kommunlkerer med den everste ledelse om bl.a. def planlagte omfang og den tidsm«ssige placering af revlsionen samt betydellge revlsionsma:ssige observatloner, herunder evcntuelle betydellge mangier i in tern kontrol, som vl idcntificerer under revlsionen. Vi afgiver ogsa en ijdtalclsc til den 0verste ledelse om, at vi har opfyldt relevante etlskc krav vedrgrende uafhasnglghed, og oplyser den om allc relatloner og andre forhold, der med rimellghed kan t^nkes at pavirke vores nafheengighed og, hvor dette er lelevant, tilh^rende slkkerhedsforanstaltninger. Udtalelse om ledelsesberetningen Ledelsen er ansvarlig for ledelsesberetningen. Vores konklusion om koncernregnskabet og arsregnskabet omfatter Ikke ledelsesbcrctnfngen, og vl udtrykkcr ingon form for konklusion med sikkerhed om ledelsesberetningen. I tilknytnlng til vores revision af koncernregnskabet og arsregnskabet er det vores ansvar at leese ledelses beretningen og I den forbindelse overveje, om ledelsesberetningen er vaesentligt inkonsistent med kon cernregnskabet eller Srsregnskabct eller vores viden opnaet ved revlsionen eller pa anden made synes at Indeholde Vcescntlig fejlinformatlon. Vores ansvar cr derudover at overveje, om ledelsesberetningen Indeholder kra^vede oplysninger I henhold til lov om finansiel virksomhed. Baseret ps det udfarte arbejdc er det vores opfattelse, at ledelsesberetningen er I overensstemmelse med koncernregnskabet og Arsregnskabet og er udarbejdet I overensstemmelse med kravene i lov om finansiel virksomhed. Vi har ikke fundet vaesentlig fejlinformatlon i ledelsesberetningen. N0gletallet solvensdceknlng Ledelsen er ansvarlig for nsgletallet solvensdeekning, der fremgar af note 2 I koncernregnskabct og ars regnskabet. Som anfert I note 2 er nagletallet solvensd^knlng undtagct fra kravct om revision. Vores konkluslon om koncernregnskabet og arsregnskabet omfatter derfor ikke nogletallet solvensda^kning, og vi udtrykker Ingen form for konklusion med sikkerhed om dcttc negletal. I tilknytnlng til vores revision af koncernregnskabet og arsregnskabet cr det vores ansvar, at overveje, om nogletallet solvensdasknlng er vccsentligt Inkonsistent med koncernregnskabet og arsregnskabet eller vores viden opnact ved revlsionen eller pa anden made synes at Indeholde vaesentllg fejlinformatlon. Hvls vi pa dcttc grundlag konkluderer, at dcr er vaisentllg fejlinformatlon I nwgletallet solvcnsda^kning, skal vl rapporlere heroin. VI har intet at rapportere I den forbindelse. l<0benhavn1 den 20. marts 2017 Deloitte x.. r PKA fpension Forsikricigsselskab A/S