Alm. Brand Group hosts capital markets event and releases new financial targets for 2025Source: OMX
Announcement no. 22/2022
Alm. Brand Group hosts capital markets event and releases new financial targets for 2025
Today, Alm. Brand Group hosts a capital markets event (Capital Markets Update) and in that connection presents business plans and releases new financial targets for 2025.
Since Alm. Brand Group released its financial targets for 2022 at the beginning of 2020, the group has succeeded in enhancing its value creation and has thereby achieved these targets or, through divestment of activities, realised a significant value potential.
New financial targets
As a result of the acquisition of Codan, forging a new and enlarged business, a target has been defined for the combined group to realise a technical result of DKK 2.1 billion including run-offs and to reduce the combined ratio to 84, including a reduction of the expense ratio to 16.
Alm. Brand Group is also introducing a new profitability target defined as the return on tangible equity (RoTE) of more than 50% in 2025.
All financial targets are supported by the realisation of synergies from the acquisition of Codan in a total amount of DKK 600 million in the period towards 2025.
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. Our goal is to double our technical result, significantly improve our combined ratio and achieve the synergies we’ve promised. Our new ambitious financial targets are supported by a sharp focus on profitable growth, lower costs and a successful integration. In order 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
At 30 September 2022, Alm. Brand Group had an SCR ratio of 199%, including funds to cover the remaining restructuring costs related to the integration of Codan. Alm. Brand Group aims to have an SCR ratio of 170% going forward and will, with due consideration thereto, be able to distribute a high proportion of its future earnings to its shareholders. Accordingly, Alm. Brand Group is changing its distribution policy to a payout ratio of at least 80% and expects the distribution in the coming years to be a combination of dividend payments and share buy-backs.
Today’s presentation is available at investorrelations.almbrand.dk. The capital markets event will be live webcast from 10-12:00 a.m. (GMT) and will subsequently be made available here.
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