Alm. Brand - Alm. Brand A/S – Interim report for the first quarter of 2012

Alm. Brand A/S – Interim report for the first quarter of 2012

May 16, 2012

Alm. Brand A/S

Alm. Brand posted a profit of DKK 167 million before losses and writedowns. After losses and writedowns, the profit was DKK 82 million.

It is positive that the overall group is again generating a profit, although the reported profit was still not satisfactory.
The group's non-life insurance activities delivered a very strong performance, posting a higher-than-expected profit of DKK 164 million.

The combined ratio was 88.9, of which the expense ratio represented 15.7.

As a result of the strong performance, the full-year profit guidance for the group's non-life insurance activities is lifted by DKK 75 million.
Banking activities performed in line with expectations, but the financial results nevertheless remained unsatisfactory. Before losses and writedowns, Alm. Brand Bank posted a loss of DKK 5 million. After losses and writedowns, the bank posted a loss of DKK 90 million.
The group's life insurance activities reported a satisfactory profit of DKK 19 million. Pension contributions increased by 25%.

A satisfactory investment return drove up the bonus rate to 6.0%.
The guidance for the full-year profit is lifted by DKK 75 million to a profit of DKK 525 million before losses and writedowns.

“We are very pleased to report an overall consolidated profit for Alm. Brand A/S,” said Søren Boe Mortensen, CEO, emphasising “also after losses and writedowns in the bank”. He continued: “It is also very pleasing that the strong, stable performance of our non-life insurance operations allows us to lift our full-year guidance to a profit of DKK 525 million before writedowns. This is definitely a satisfactory step forward for us.”

“That being said, let there be no doubt that, although the bank has improved its financial performance, the operating profit has yet to reach a satisfactory level and writedowns are still too high. We still have quite a lot of work ahead of us,” Søren Boe Mortensen underlined.

Other highlights

The underlying combined ratio of the non-life insurance company developed favourably, ending Q1 2012 at 81.8, against 84.4 in the same period of last year.

Premiums rose by 2.3%, compared with slight negative growth in Q1 2011.
The performance of the group's life insurance activities produced stable and good expense and risk results and a good investment return.

The increase of 25% was driven in particular by a large number of customers transferring to Alm. Brand Liv og Pension and taking their existing pensions with them.
The bank's costs fell by 2.5% relative to the year-earlier period.

The bank's performance was favourably impacted by declining costs and by capital gains on equities but adversely affected by a low interest margin, among other things due to high funding costs and losses and writedowns.

Please direct any questions regarding this announcement to Søren Boe Mortensen, Chief Executive, on tel. +45 35 47 79 07 or Susanne Biltoft, Head of Information and Investor Relations, on tel. +45 35 47 76 61.

Alm. Brand A/S will host a webcast and teleconference on Wednesday, 16 May 2012 at 10.00 a.m.

http://storm.zoomvisionmamato.com/player/almbrand/objects/wrgkm0a4/

Dial-in instructions for financial analysts: Danish analysts: +45 327 147 67, US analysts: +1 718 354 1226 and other international analysts: +44 (0) 207 509 5139.

Yours sincerely,

Alm. Brand A/S

Søren Boe Mortensen

Chief Executive

The interim report is attached in pdf-format.

Attachments

1. kvt. 2012 koncern uk

AS 11 2012 - Interim Report Q1 - Letter

Categories: Press Releases

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Alm. Brand A/S – Interim report for the first quarter of 2012

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