Announcement no. 24/2020
Interim report Q1 2020
Alm. Brand posted a pre-tax profit ofDKK 33 million in Q1 2020. The consolidated profit was impacted by the special situation triggered by Covid-19, which resulted in a negative return on the group’s portfolio of investment assets of aboutDKK 125 million . Against this background, the Q1 performance is considered satisfactory.- The implementation of the changes announced in connection with the release of the 2019 financial statements is progressing as planned, and the ambitious financial targets for growth and profitability defined for the period until 2022 are maintained.
CEO
“Our operating profit for the first quarter was satisfactory and in line with the latest guidance. Even in the face of the special situation triggered by Covid-19, our business model has proved robust in terms of both our day-to-day operations and the continuing development of the group. The investment result was obviously strongly affected by market developments, but I am pleased to note that, for the group as a whole, we were able to report a profit even in these very turbulent times.”
“Since mid-March, we have focused in particular on helping the many customers who are affected by the Covid-19 crisis. This applies especially to the travel insurance segment, where many customers needed help to quickly return home from abroad and, as a quite extraordinary measure, we are now also stepping in to help customers who are unable to get their cancelled air tickets refunded. But we have also launched initiatives in the rest of the group aimed at supporting our customers’ banking, life insurance and pension and non-life insurance needs during these uncertain times.”
“Supported by the Q1 financial results and the many initiatives launched by the group in January,
Stable underlying business despite the extraordinary situation
Life Insurance generated a pre-tax profit of
The bank’s core earnings amounted to
Outlook for 2020
The underlying performance was in line with expectations in Q1 2020, including the effects of the changes implemented to unlock the full potential of Alm. Brand’s strategy.
However, the guidance is subject to greater-than-usual uncertainty due to the follow-on effects of Covid-19 on the investment result and impairment writedowns on loans in particular. Against this background,
Accordingly,
The group’s financial targets for 2022
In connection with the release of its 2019 financial statements,
- growth in
Non-life Insurance defined as an average annual increase in regular premium payments of 3%; - improved earnings in
Non-life Insurance as expressed by a combined ratio of less than 90 and a gross expense ratio of about 16; - improved earnings in Banking as expressed by a return on equity of at least 10% before amortisation of customer relationships and tax;
- annual growth in regular premium payments in Life Insurance of 7% on average.
In addition to the financial targets,
Webcast and conference call
Investors and analysts are invited to participate by phone: +45 7815 0107 (
Contact
Please direct any questions regarding this announcement to:
Chief Executive Officer (ad interim)
Tel. +45 3547 7907
Investors and equity analysts:
Senior Vice President, Investor Relations
Mobile no. +45 2510 4717
Senior Investor Relations Officer
Mikael Bo Larsen
Mobile no. +45 5143 8002
Press:
Chief Communication Officer
Mobile no. +45 2524 8993
Attachments
AS 24 2020 - Interim report Q1 2020 UKAlm. Brand AS – Q1 2020 English
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