Alm. Brand (ALMB) Investor presentation summary

Financial performance and growth

• Insurance revenue rose to DKK 2.7 billion in Q2 2024, with strong premium growth in personal lines offsetting higher motor claims and major claims expenses.

• Insurance service result declined to DKK 312 million due to increased major and motor claims, despite mild weather and high run-off gains.

• Investment result was solid at DKK 65 million, mainly from bonds, with overall H1 2024 investment performance described as strong.

• Cost focus led to a lower expense ratio, and a DKK 150 million share buyback was launched, supported by a strong capital position.

• Divestment of the Energy & Marine business for DKK 1.6 billion is expected to complete in early 2025, with proceeds to be distributed to shareholders.

Claims and operational efficiency

• Claims ratio deteriorated by 6 percentage points year-on-year, mainly due to commercial lines and higher major claims.

• Underlying claims ratio increased by 2.1 percentage points, with motor claims headwinds overshadowing synergy and repricing benefits.

• Personal lines saw a decline in expense ratio to 18.8% in Q2 2024, aided by headcount reductions and profitability initiatives.

• Commercial lines experienced a high major claims level of 16.6% and a 4.1 percentage point deterioration in underlying claims ratio.

• Synergies from Codan integration are on track, with a Q2 run-rate of DKK 500 million and clear progress toward 2025 targets.

Strategic transformation and outlook

• Transformation includes divestments, Codan acquisition, and a focus on becoming a pure-play non-life insurer.

• Minimum payout policy of at least 80% of adjusted net profit, with substantial distributions planned through April 2026.

• 2024 guidance maintained: insurance service result (excl. run-offs) DKK 1.15–1.35 billion, investment result DKK 400 million, and profit before special costs and tax DKK 1.43–1.63 billion.

• Solvency capital ratio remains robust at 187%, with limited sensitivity to market movements.

• Market share in Denmark is approximately 16%, with ambitions for profitable organic growth and efficient capital allocation.