Alm. Brand A/s · OMXCOP:ALMB
Alm. Brand A/s — Q1 2024 Earnings Presentation
22 slides from Alm. Brand A/s's earnings presentation, May 2, 2024
Slide 1: Results 2024 Q1
Results 2024│Q1 1 January to 31 March 2024
Slide 2: Highlights
Highlights Satisfactory Q1 performance despite harsh weather conditions ▪ Satisfactory Q1 financial results built on recent quarters’ momentum in Commercial Lines, while underlying developments in Personal Lines improved based on profitability-enhancing initiatives ▪ Highly satisfactory overall grow
Slide 3: Financial highlights
Financial highlights Financial results ▪ Insurance revenue increased to just over DKK 3 billion, and the insurance DKKm service result grew by 44% to DKK 295 million Q1 2024 Q1 2023 ▪ The higher insurance service result was driven by profitability focus and a Insurance revenue 3,012 2,853 lower real
Slide 4: Insurance operations
Insurance operations 4
Slide 5: Insurance service result
Insurance service result Satisfactory Q1 performance ▪ Insurance service result of DKK 295 million generated on the back of highly Insurance service result satisfactory developments in insurance revenue, an overall satisfactory claims DKKm experience and continuing synergies, but adversely affected
Slide 6: Insurance revenue
Insurance revenue Highly satisfactory growth Growth in insurance revenue ▪ Fairly strong growth overall, reflecting an even stronger momentum in Personal Lines and improved developments in Commercial Lines driven 10% by indexation and price adjustments 9% 8,6% 8% ▪ Continued optimisation of insuranc
Slide 7: Claims ratio
Claims ratio Favourable underlying developments in Commercial and Personal Lines ▪ Claims ratio improved by 170 bps Development in underlying claims ratio ▪ Lower major claims expenses Q1 2024 Q1 2023 Change ▪ Higher weather-related claims expenses Claims ratio 71.1 72.8 -1.7 ▪ Lower run-offs Major
Slide 8: Personal Lines
Personal Lines Claims experience increased due to weather-related incidents and lower run-offs Combined ratio ▪ Increase in claims experience relative to last year Personal Lines ▪ Significantly higher expenses for weather-related claims due to snowstorm in January, the windstorm Rolf in February an
Slide 9: Commercial Lines
Commercial Lines Favourable trend in claims experience Combined ratio ▪ Sustained favourable claims experience, including positive trend in the Commercial Lines Energy segment, supported by portfolio composition changes ▪ Significantly lower level of major claims expenses more than offset 100 94,1 8
Slide 10: Financials
Financials 10
Slide 11: Synergies
Synergies Status on synergies from Codan integration DKKm Realised 2023 Realised 2024 Target for 2024 Administration 40 40 40 40 160 45 210 Claims processing 1217 21 27 77 43 180 IT & infrastructure 5578 25 10 60 Total 57 62 68 75 262 98 450 Q1 Q2 Q3 Q4 ▪ Realisation of synergies of DKK 98 million i
Slide 12: Investment result
Investment result Year started with a high quarterly return Investment return Q1 2024 ▪ Strong beginning of the year with positive returns on several asset classes DKKm Assets Return Return % including especially equities and bonds Bonds etc. 21,291 149 0.7 Illiquid credit including mortgage ▪ Total
Slide 13: Outlook
Outlook 13
Slide 14: Outlook for 2024
Outlook for 2024 Guidance for profit before special costs and tax lifted by DKK 100 million on the back of strong Q1 investment result Insurance service result excl. run-offs DKK 1.40-1.60 billion Sub-components included in outlook for 2024 (unchanged) Investment result DKK 350 million Previous inve
Slide 15: Q&A
Q&A
Slide 16: Share profile
Share profile ▪ Danish non-life insurer with a market share of 16-17% ▪ 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 ▪ E
Slide 17: Overview of significant synergy initiatives
Overview of significant synergy initiatives Expected run-rate, Run-rate, 2022: Run-rate, 2023: 2024: ~DKK 200m ~DKK 350m 2023 2024 ~DKK 500m 2025 DKK Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Expansion of system to detect insurance fraud, ~DKK 35m ~DKK 5m including the addition of more areas to the Technology to dete
Slide 18: Total capital
Total capital DKKm Q1 2024 Q4 2023 Q3 2023 Q2 2023 Tier 1 unrestricted 4,269 3,949 4,834 4,739 SCR ratio Tier 1 restricted 397 397 397 397 Tier 2 capital 1,294 1,294 1,294 1,294 193% Tier 3 capital 0 0 0 0 Total capital for the group for solvency coverage 5,960 5,640 6,525 6,430 purposes Solvency ca
Slide 19: SCR ratio
SCR ratio Sensitivity analysis 200% 193% 198% 189% 187% 195% 191% 188% 197% 192% 193% 194% 193% Limited sensitivity in the event of 185% market movements Solvency ratio sensitivities (%) Hedging of interest rate risk and currency risk Largest impact in the event of changes to mortgage bonds Full rec
Slide 20: Investor base
Investor base USA 6% Europe 21% Breakdown of free float Denmark Nordics 62% 11% 3% 2% 1% Development in investor base 0% Geographical movements in ownership -1% interest -2% 31 December 2023 - 31 March 2024 -3% Nordics USA Other Denmark Europe 20
Slide 21: 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, Q1 2024 2 May 2024 abmati@almbrand.dk Interim report, Q2 2024 15 August 2024 Interim report, Q3 2024 7 November 2024 https://investorrelations.almb
Slide 22: 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