Alm. Brand (ALMB) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw strong premium growth, especially in Personal Lines, offsetting higher motor and major claims, with synergies from Codan integration supporting financial targets.

• Announced divestment of the Energy & Marine business to Gard for DKK 1.6 billion, with proceeds to be distributed to shareholders upon completion.

• New share buy-back programme of DKK 150 million launched, reflecting a strong capital position and commitment to shareholder returns.

• Transformation to a pure Danish non-life insurer continues, following the sale of bank and life businesses and Codan integration.

Financial highlights

• Insurance revenue for continuing business grew to DKK 2.7 billion in Q2 2024, with Personal Lines as the main driver.

• Insurance service result for continuing business was DKK 312 million, down from DKK 425 million in Q2 2023, due to higher major and motor claims.

• Investment income was DKK 65 million in Q2 2024, mainly from the free portfolio and bonds.

• Discontinued business posted a loss after tax of DKK 89 million, mainly due to revaluations of old claims and poor run-off results.

• Pre-tax profit from continuing activities (excluding special costs) was DKK 327 million in Q2 2024.

Outlook and guidance

• 2024 guidance for insurance service result (excluding run-off) is DKK 1.15–1.35 billion, including expected synergies of DKK 450 million.

• Cost/expense ratio expected at 18–18.5%; combined ratio (excluding run-off) at 88–90 for the remainder of the year.

• Investment result guided at DKK 400 million; group profit (excluding special costs) expected at DKK 1.43–1.63 billion before tax.

• Special costs for Codan integration and synergies expected at DKK 200–250 million.

• Discontinued activities after tax now expected at DKK 0 million for 2024.