Alm. Brand (ALMB) Q4 2024 earnings summary

Executive summary

• 2024 performance exceeded expectations, with strong Q4 results, lower weather-related and major claims, and robust growth in Personal and Commercial Lines, aided by price adjustments and new legislation.

• Insurance service result for 2024 reached DKK 1,443 million, profit before special costs and tax at DKK 1.75 billion, both above guidance.

• Record high normal distribution of DKK 1.15 billion with a payout ratio of 96%.

• Major claims remained below normal in seven of the last eight quarters.

• Integration of Codan progressed, with DKK 460 million in synergies realized in 2024 and DKK 138 million in Q4.

Financial highlights

• Q4 2024 insurance service result was DKK 440 million, up from DKK 287 million; full-year insurance revenue increased 5.2% to DKK 11,083 million.

• Q4 investment result was DKK 74 million; full-year investment result was DKK 439 million.

• Special costs for 2024 ranged from DKK 109 million to DKK 614 million, mainly for Codan integration, FTE reductions, and amortization.

• Cost/expense ratio improved to 18.3% in 2024 and is expected at 17% in 2025.

• Undiscounted underlying loss ratio improved by 120 basis points in 2024 and 190 basis points in Q4.

Outlook and guidance

• 2025 insurance service result (excluding run-offs) guided at DKK 1.5–1.7 billion, with DKK 600 million in expected synergy gains.

• Combined ratio (excl. run-off) expected at 85.5–87.5; expense ratio at 17.

• Investment result for 2025 expected at DKK 200 million; pre-tax profit (excluding special costs) guided at DKK 1.58–1.78 billion.

• Restructuring costs of DKK 175 million expected, with DKK 25 million related to Energy and Marine separation.

• Result after tax in discontinued activities expected at DKK 250 million, mainly from Energy & Marine divestment.