Alm. Brand (ALMB) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered satisfactory results with strong Personal Lines growth, offsetting higher motor claims and flat Commercial Lines, and led to a profit guidance upgrade.

• Synergies from Codan integration and organizational alignment are materializing, supporting 2025 financial targets and cost reductions, including a reduction of 110 positions.

• Major claims were significantly down from Q2 and below normal levels, contributing to improved results.

• Divestment agreement signed for Energy & Marine business, with DKK 48 million after-tax result from discontinued activities.

Financial highlights

• Insurance revenue for Q3 2024 grew to DKK 2.8 billion, up 3.9% year-on-year, driven by Personal Lines.

• Insurance service result increased to DKK 400 million from DKK 366 million in Q3 2023.

• Investment income surged to DKK 133 million, mainly from bonds and shares.

• Pre-tax profit excluding special costs rose to DKK 508 million, up from DKK 394 million.

• Combined ratio improved to 85.7 from 86.4 year-on-year; expense ratio fell to 17.1 from 17.3.

Outlook and guidance

• Full-year 2024 insurance service result guidance raised to DKK 1.25–1.35 billion, midpoint up by DKK 50 million.

• Combined ratio (excluding run-off) for 2024 expected at 88–89%, with expense ratio at 18–18.5%.

• Group profit before tax (excluding special costs) now expected at DKK 1.58–1.68 billion.

• Special costs for Codan integration and restructuring expected at DKK 250 million.

• Synergy realisation target for 2024 set at DKK 450 million, with clear path to 2025 targets.