Alm. Brand - Alm. Brand – Interim report 9M 2017

Alm. Brand – Interim report 9M 2017

November 15, 2017

Alm. Brand A/S

Alm. Brand generated a highly satisfactory pre-tax profit of DKK 888 million in 9M 2017. The full-year guidance is upgraded by DKK 250 million to a profit of DKK 950-1,050 million.

"Supported by really impressive results and strong growth in all business areas, Alm. Brand continued its highly favourable developments,"" said Alm. Brand's CEO Søren Boe Mortensen. He continued:

"Moreover, we have a very sound business, backed by increasingly more satisfied and loyal customers. The extremely focused customer satisfaction strategy we have pursued for the past several years has consistently yielded better results."

"Our new strategy, which we introduced about a year ago, is based on our customers' individual circumstances, ensuring that we cater to all of their financial needs. Aiming to provide an unrivalled customer experience, we are investing substantially in digitalisation, customer experience and growth across the group. As we continue to make these investments in 2018, we expect them to drive up the level of activity in the bank in particular," concluded Søren Boe Mortensen.

Q3 performance:

Non-life Insurance reported a highly satisfactory pre-tax profit of DKK 320 million, which was considerably better than expected, lifted by a strong claims experience and a strong investment result.
Gross premiums amounted to DKK 1.3 billion, increasing by 2.7% relative to Q3 2016. Both private and commercial lines improved, reporting growth of 1.1% and 4.4%, respectively. Customer loyalty remained at a high level with an upward trend in both segments.
Pension activities generated a satisfactory pre-tax profit of DKK 23 million, which was better than expected.

Pension contributions were up by 8% year on year. Regular payments were up by 7%, while single payments increased by 4%. In addition, payments into market rate schemes increased by 15%.

Growth was satisfactory and in line with the group's aim of generating growth in regular payments in particular.

The bonus rate was 25.0 at 30 September 2017. The high bonus rate level ensures that Alm. Brand Pension may continue to offer one of the industry's highest rates on policyholders' savings for guaranteed products.
The bank generated an overall pre-tax profit of DKK 14 million in Q3 2017. The performance was better than expected and was favourably affected by value adjustments, whereas costs increased as a result of investments in growth and digitalisation.

The forward-looking activities generated a profit of DKK 9 million, while a profit of DKK 5 million was reported on the winding-up activities.

The bank's loans and advances grew by 5% relative to 30 September 2016 in spite of the more competitive market, especially for new lending to private customers. In addition, the total portfolio of Totalkredit loans for which the bank acted as intermediary grew by DKK 1 billion to DKK 8.2 billion. Financial Markets experienced an increase in sales, with sales of the portfolio of the ETF product IndexPlus in particular exceeding expectations, reaching the DKK 300 million mark at 30 September.

Leasing exceeded a portfolio of DKK 1 billion in Q3 2017, equivalent to 9,000 cars.

Outlook

The full-year guidance is upgraded by DKK 250 million to a consolidated pre-tax profit of DKK 950-1,050 million. The guidance for Non-life Insurance is lifted by DKK 200 million. In addition, the guidance for Banking and Pension is lifted by DKK 10 million each, while the guidance for Other activities is maintained. The outlook is exclusive of run-off gains for the rest of the year.
The group's consolidated profit for 2018 is expected to be in the DKK 450-550 million range. The guidance for winding-up activities is a break-even performance.

Webcast and conference call

Alm. Brand will host a webcast and conference call on 15 November 2017 at 10.00 a.m.

https://almbrand.eventcdn.net/2017q3

Analysts are invited to participate by phone: Danish analysts: +45 3544 5583, US analysts: +1 855 269 2604, other international analysts: +44 (0) 203 194 0544.

Contact

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

Attachments

AS 60 2017 - Q3 2017

3. kvt. 2017 koncern engelsk

Categories: Press Releases

View all news

Disclaimer

The information contained in this section of Alm. Brand A/S (the "Company") web page that you are attempting to access is not intended for, and must not be accessed by, or distributed or disseminated, directly or indirectly, in whole or in part, to persons resident or physically present in the United States of America (including its territories and possessions, any state of the United States and the District of Columbia, together, the "United States"), Canada, Australia and Japan, or any jurisdiction where to do so might constitute a violation of the local securities laws or regulations of such jurisdiction, and does not constitute an offer to sell or the solicitation of an offer to buy or acquire, any shares or other securities of the Company in the United States, Canada, Australia, Japan or any jurisdiction where to do so might constitute a violation of the local securities laws or regulations of such jurisdiction.

The shares of the Company referred to herein and on the following web page (the "Shares") have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority under any applicable securities laws of any state, province, territory, county or jurisdiction of the United States or any other restricted jurisdiction. The Shares may not be offered, sold, resold, pledged, taken up, exercised, renounced, transferred, delivered or distributed, directly or indirectly, in or into the United States absent registration, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable state and other securities laws of the United States, or any other restricted jurisdiction. No public offering of the Shares is being, has been or will be made in the United States. Any Shares sold in the United States will be sold only to persons reasonably believed to be qualified institutional buyers (as defined in Rule 144A under the Securities Act) in reliance on Rule 144A under the Securities Act. The information contained herein and on the following web page does not constitute, and should not be construed as, an offer to sell or solicitation of an offer to buy any of the Shares in the United States, "general solicitation or general advertising" under Rule 502(c) of Regulation D under the Securities Act or "directed selling efforts" under Regulation S of the Securities Act.

The Shares have not been approved or disapproved by the U.S. Securities and Exchange Commission, any state securities commission in the United States or any other regulatory authority in the United States, nor have any of the foregoing authorities passed comment upon, or endorsed the merit of, the Shares or the accuracy or the adequacy of the information contained herein and on the following web page. Any representation to the contrary is a criminal offence in the United States.

The Shares have also not been, and will also not be, registered under the applicable securities laws of Canada, Australia or Japan and, subject to certain exemptions, may not be offered or sold in or into or for the account or benefit of any person having a registered address in, or located or resident in Canada, Australia or Japan.

Access to the information and documents contained on the following web page may be illegal in certain jurisdictions, and only certain categories of persons may be authorized to access such information and documents. All persons residing outside of Denmark who wish to have access to the documents contained on the following web page should first ensure that they are not subject to local laws or regulations that prohibit or restrict their right to access the following web page or require registration or approval for any acquisition of securities by them. No such registration or approval has been obtained outside Denmark. The Company assumes no responsibility if there is a violation of applicable law and regulations by any person.

No information included on the following web page should be used by investors in forming their investment decision as to an investment in the Shares.

By clicking on the [“Accept”] button below, you certify that (i) you have read and understood the foregoing and (ii) you are not restricted by the laws of your country of residence or any other law to which you are subject to access the following web page.

Accept Decline

Company Announcement Details

Alm. Brand – Interim report 9M 2017

Attachments

Disclaimer