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Teachers’ Pension and Life Insurance Company Limited

(Lærernes Pension, forsikringsaktieselskab)

Teachers’ Pension and Life Insurance Company Limited (LPAS) is the pension and life insurance fund for Danish teachers. It was established in March 1993 for teachers in Denmark and Greenland as a mandatory, defined contribution plan. Contributions are typically up to 17,3% of salaries. The pension scheme is a group pension scheme (as opposed to unit-link). Consequently, the risk and return of the pension scheme for the individual policyholder is related to the total assets of LPAS.    

LPAS is one of the fastest growing pension funds in Denmark as premiums far exceed benefits due to a rather young group of members. By the end of 2007 the fund had about 115,000 members. Their premiums are expected to reach almost DKK 3,100 million ($560 million) in 2007. By mid-year 2007 the value of total assets was about DKK 25,600 million ($4,650 million).

LPAS is a non-listed, life insurance company with the major teachers unions as shareholders. The board of directors has 14 non-executive members of which 10 are appointed by the teacher unions and 4 by the employers. The chairman of the board is Anders Bondo Christensen from the Danish Union of Teachers (Danmarks Lærerforening). The management is Paul Brüniche-Olsen (CEO), Steen Schouenborg (Chief Insurance Officer), Henrik Walther Mogensen (Chief Financial Officer) and Helle Gullacksen (Head of Communication).

LPAS is under supervision by The Danish FSA, Finanstilsynet (www.finanstilsynet.dk). The registration number (FT-no.) of LPAS is 63000. The institutions under supervision must report to the FSA on a half-year basis. The FSA uses a traffic light system to measure the financial strength of the Danish insurance institutions. LPAS is in green light, which means that LPAS has enough solvency capital to cover the loss in rather adverse scenarios for market and credit risk factors.

LPAS is registered at the Danish Commerce and Companies Agency (www.eogs.dk). The registration number (CVR-no.) of LPAS is 17106589.

Jointly with two other pension funds, PKA and PBU, LPAS owns Forca, which supplies administration services within areas such as members’ services, actuarial services, middle- and back-office services and IT service.

The homepage of LPAS is www.lppension.dk (available in Danish only)