Alm. Brand (ALMB) Q4 2025 earnings summary

Executive summary

• Insurance service result for 2025 reached DKK 1.91 billion, up from DKK 1.44 billion in 2024, driven by both Personal and Commercial Lines, exceeding expectations.

• Insurance revenue rose 6.4% year-over-year to DKK 11.8 billion, with strong Personal Lines growth of 9.7% for the year and nearly 10% in Q4, and market share gains.

• Underlying claims and expense ratios improved, reflecting effective cost control and profitability measures.

• Realized synergies from Codan acquisition reached DKK 618 million in 2025, above the DKK 600 million target.

• Large claims and weather-related claims were both below expected levels, supporting profitability.

Financial highlights

• Cost ratio improved to 17% in 2025, a 1.3 percentage point reduction from 2024, with combined ratio improving to 82.4 in Q4 2025 from 84.5 in Q4 2024.

• Investment result for 2025 was DKK 337 million, above initial guidance, with Q4 investment result at DKK 73 million.

• Profit before special cost and tax reached DKK 2.12 billion; adjusted profit after tax for 2025 was DKK 1,464 million, with EPS of DKK 1.

• Special costs decreased to DKK 39 million, mainly due to lower integration and redundancy expenses, while Codan integration and business separation costs totaled DKK 199 million.

• Dividend of DKK 0.66 per share proposed for 2025, with a payout ratio of 98%.

Outlook and guidance

• Technical/insurance service result (excluding run-offs) for 2026 guided at DKK 1.65–1.85 billion, with combined ratio (excluding one-offs/run-offs) expected at 84.5–86.5 and cost/expense ratio at 17%.

• Investment result for 2026 expected at DKK 200 million.

• Group profit before tax (excluding one-offs) guided at DKK 1.85–2.05 billion for 2026.

• Underlying loss ratios expected to improve by around 100 basis points in 2026, with most repricing effects now realized.

• Amortisation of intangible assets forecast at DKK 335 million.