Slide 1: Results 2024 Q2
Results 2024│Q2 1 April to 30 June 2024
Slide 2: Highlights
Highlights Second quarter with strong growth and headwinds from motor claims ▪ Q2 financial results characterised by sustained increase in motor- related claims and above-normal level of major claims. However, Q2 was the first time in four quarters with mild weather conditions ▪ Highly satisfactory
Slide 3: Financial highlights
Financial highlights Financial results ▪ Insurance revenue increased to DKK 2.7 billion, but the insurance service DKKm result fell to DKK 312 million Q2 2024 Q2 2023 ▪ The lower insurance service result was particularly due to a higher level of Insurance revenue 2,725 2,587 major claims and higher
Slide 4: Divestment of Energy & Marine business
Divestment of Energy & Marine business 4
Slide 5: Divestment of Energy & Marine business
Divestment of Energy & Marine business • Alm. Brand has signed a conditional agreement with Gard to divest the Energy Transaction & Marine business Total price • DKK 1.6 billion (of which DKK 1.13 billion is payable in cash) Divested volume • DKK 1.25 billion in annual premium income • The transacti
Slide 6: Transformation of Alm. Brand 2020 ->
Transformation of Alm. Brand 2020 -> Transformation of Alm. Brand New Sale of Acquisition of Sale of Life Divestment of management Banking Codan Insurance Energy & Marine 20 20 20 20 20 21 22 23 Segmented Partnerships Agreement Closing: Realisation of organisation May 2022 synergies Regulatory appro
Slide 7: Reshaping Alm. Brand Group
Reshaping Alm. Brand Group Alm Brand li Group
Slide 8: Insurance operations
Insurance operations 8
Slide 9: Insurance service result
Insurance service result Strong premium growth, but mixed claims experience ▪ Insurance service result of DKK 312 million generated on the basis of a highly Insurance service result (continuing activities) satisfactory development in insurance revenue and a mixed claims experience DKKm characterised
Slide 10: Insurance revenue
Insurance revenue Highly satisfactory growth Growth in insurance revenue1 ▪ Second consecutive quarter with highly satisfactory premium growth, signifying a sustained strong momentum in Personal Lines ▪ Premium increases in Personal Lines helped to dampen underlying headwinds from higher level of mo
Slide 11: Claims ratio
Claims ratio Adverse underlying trend driven by Commercial Lines ▪ Claims ratio deteriorated by 6% Development in underlying claims ratio ▪ Higher major claims expenses Q2 2024 Q2 2023 Change ▪ Headwinds from motor claims Claims ratio 70.5 64.5 +6.0 ▪ Run-offs higher than in Q2 2023 Major claims, ne
Slide 12: Personal Lines
Personal Lines Own initiatives offsetting adverse development in motor claims and driving fall in expense ratio Combined ratio (continuing activities) ▪ Decline in claims experience relative to last year Personal Lines ▪ Mainly due to higher run-offs ▪ Sustained increase in motor claims, but also fa
Slide 13: Commercial Lines
Commercial Lines Adverse development in claims experience Combined ratio (continuing activities) ▪ Unfavourable claims experience due to a high level of major claims of Commercial Lines 16.6% in Q2 driven by a few major building-related claims ▪ Modest run-off result somewhat below Q2 2023 level ▪ H
Slide 14: Financials
Financials 14
Slide 15: Synergies
Synergies Status on synergies from Codan integration DKKm Realised 2023 Realised 2024 Target for 2024 Administration 40 40 40 40 160 45 45 90 210 Claims processing 121721 27 77 43 50 93 180 10 IT & infrastructure 5578 25 11 21 60 Total 57 62 68 75 262 98 106 204 450 Q1 Q2 Q3 Q4 ▪ Realisation of syne
Slide 16: Investment result
Investment result Fairly strong investment result in Q2 Investment return Q2 2024 ▪ Strong investment return overall in H1 2024. Particularly strong DKKm Assets Return Return % performance in Q1, followed by general market decline in April and strong Bonds etc. 19,593 108 0.5 returns on several port
Slide 17: Outlook
Outlook 17
Slide 18: Outlook for 2024
Outlook for 2024 Insurance service result excl. run-offs DKK 1.15-1.35 billion Unchanged relative to company announcement 39/2024 of 1 July Sub-components included in outlook Investment result DKK 400 million for 2024 Unchanged relative to company announcement 39/2024 of 1 July Other income and expe
Slide 19: Q&A
Q&A
Slide 20: Share profile
Share profile ▪ Danish non-life insurer with a market share of ~16% ▪ Ambitions for profitable organic growth ▪ Focus on realising scale economies ▪ Manageable integration risk in terms of realisation of significant cost synergies ▪ Stable capital requirements ▪ High return on targeted capital ▪ Eff
Slide 21: Overview of significant synergy initiatives
Overview of significant synergy initiatives Run-rate, 2022: Run-rate, 2023: Exp. run-rate, 2024: ~DKK 200m ~DKK 350m ~DKK 500m 2023 2024 2025 DKK Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ~ 35m ~ 5m Expansion of system to detect insurance fraud, including the addition of more areas to the Technology to detect insuran
Slide 22: Total capital
Total capital DKKm Q2 2024 Q1 2024 Q4 2023 Q3 2023 Tier 1 unrestricted 4,097 4,269 3,949 4,834 SCR ratio Tier 1 restricted 397 397 397 397 Tier 2 capital 1,294 1,294 1,294 1,294 187% Tier 3 capital 0 0 0 0 Total capital for the group for solvency coverage 5,789 5,960 5,640 6,525 purposes Solvency ca
Slide 23: Solvency ratio sensitivities
SCR ratio Sensitivity analysis 187% 190% 183% 192% 182% 189% 185% 180% 192% 187% 189% 184% Limited sensitivity in the event of 178% 185% market movements Solvency ratio sensitivities (%) Hedging of interest rate risk and currency risk Largest impact in the event of changes to mortgage bonds +20% +30
Slide 24: Investor base
Investor base USA 7% Europe 22% Breakdown of free float Denmark Nordics 62% 9% 3% 2% 1% Development in investor base 0% Geographical movements in ownership -1% interest -2% 31 December 2023 - 30 June 2024 -3% Denmark Nordics Other Europe USA 24
Slide 25: Investor Relations - contact details Financial calendar
Investor Relations - contact details Financial calendar Mads Thinggaard Head of Investor Relations, Rating & ESG Reporting +45 2025 5469 Interim report, Q2 2024 15 August 2024 abmati@almbrand.dk Interim report, Q3 2024 7 November 2024 https://investorrelations.almbrand.dk/ 25
Slide 26: Disclaimer
Disclaimer FORWARD LOOKING STATEMENTS The statements made in this presentation are based on current expectations, estimates and projections made by management. All statements about future financial performance are subject to risks and uncertainties that could cause actual results to differ materiall