Announcement no. 22/2022
Alm. Brand Group hosts capital markets event and releases new financial targets for 2025
Alm. Brand Group is currently hosting a capital markets event (Capital Markets Update), and as part of that, they are releasing new financial targets for 2025 and business plans.
Alm. Brand Group has improved its value creation since releasing its financial plans for 2022 at the beginning of 2020. As a result, the group has either reached these aims or, through the divestiture of activities, realized a considerable value potential.
New financial targets
A goal has been established for the combined group to realize a technical result of DKK 2.1 billion, including run-offs, and to lower the combined ratio to 84, including a reduction of the expense ratio to 16. This goal results from the acquisition of Codan, forging a new and expanded business.
Alm. Brand Group is also introducing a new profitability target defined as the return on tangible equity (RoTE) of more than 50% in 2025.
The achievement of synergies from the acquisition of Codan totaling DKK 600 million in the period leading up to 2025 will support all financial goals.
Rasmus Werner Nielsen, CEO of Alm. Brand Group:
“With the combination of Alm. Brand and Codan, we’ve created a new strong Danish non-life insurance group and a solid foundation for growth. We aim to double our technical results, improve our combined ratio, and achieve our promised synergies. Our new ambitious financial targets are supported by a sharp focus on profitable growth, lower costs, and successful integration. To achieve our high ambitions, we’ll leverage our combined strengths to make it simple and even more relevant to be a customer of Alm. Brand Group, expand our strong partnerships and, not least, maintain a clear focus on claims prevention and sustainability.”
Solvency and distribution
Alm. Brand Group had an SCR ratio of 199% as of 30 September 2022, which included money for the outstanding restructuring expenses associated with the integration of Codan. Alm. Brand Group plans to have an SCR ratio of 170% eventually. It will be able to donate a significant amount of its future earnings to its shareholders after properly considering this goal. As a result, Alm. Brand Group is revising its distribution policy to require a payout ratio of at least 80%. The company anticipates that the distribution in the upcoming years will consist of both dividend payments and share buybacks.
Please direct any questions regarding this announcement to:
Investors and equity analysts:
Head of Investor Relations Senior Investor Relations Officer
Mads Thinggaard Mikael Bo Larsen
Mobile no. +45 2025 5469 Mobile no. +45 5143 8002
VP, Communication & Sustainability
Mobile no. +45 20 32 65 30