Results for Q2 2015 - Alm. · PDF fileResults for Q2 2015 Investor presentation September 2015...

Alm Brand

Results for Q2 2015 Investor presentation September 2015

Financial highlights of Q2 2015

Pre-tax profit: DKK 104m

Outlook up by DKK 100m

Forward-looking activities: Pre-tax profit: DKK 182m

Winding-up activities: Loss: DKK 78m • Writedowns: DKK 62m

G R O U P

Non-life Insurance Pre-tax profit: DKK 194m

• CR: 83.3 • Expense ratio: 16.0% • Premium growth: -0.6%

Life and Pension Pre-tax profit: DKK 14m

• Risk result: DKK 12m • Bonus potential: DKK 1.0bn • Bonus rate: 10.5%

Banking Pre-tax loss: DKK 8m

• Writedowns: DKK 0m • Growth in lending • Growth in full-service

customers

2

Comments on Q2

Negative impact from turbulent financial markets Intensified competition impacting insurance premiums Benign weather More customers and increased lending in the bank Pre-tax profit outlook • DKK 450-550m • Up by DKK 100m

G R O U P

Financial highlights, H1

Group Pre-tax profit: DKK 306m Non-life Insurance Pre-tax profit: DKK 451m • CR: 81.7 • Expense ratio: 16.1

Life and Pension Pre-tax profit: DKK 40m Banking Pre-tax loss: DKK 2m Winding-up activities Pre-tax loss: DKK 152m

3

Customers First

Group NPS reached a new high in Q2 Alm. Brand Bank rated best by users of MyBanker Number of filed complaints reduced again Retention rate declining due to competition • but remains high and

satisfactory

G R O U P

Group NPS

18 18

22 23 23

26 27

24

29 30

31 30

33 35

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2012 2013 2014 2015

4

Retention rate – Non-life Insurance

86%

87%

88%

89%

90%

91%

92%

dec-08 dec-09 dec-10 dec-11 dec-12 dec-13 dec-14

fjern evt. pladsholderen

NON-LIFE INSURANCE Highlights

Q2 pre-tax profit of DKK 194m • Technical result better than expected • Negative investment return due to increased

spread between mortgage bonds and government bonds

N O N - L I F E I N S U R A N C E

Pre-tax profit DKKm

5

217 198

222 210

357

455

-3

31

-10 -16 -13 -4

214 229 212

194

344

451

2012 2013 2014 2015 2014 2015

Q2 H1

Technical result

Investment return after technical interest

Combined ratio better than expected

Combined ratio of 83.3 - Better than expected • Run-off gains improved CR by 5.3 ppts

– Gains on workers’ compensation, motor, fire and property insurances

• Very few weather-related claims

Underlying combined ratio of 80.2 • Discounting increased CR by 0.9 ppt • Fewer claims but higher average claims • Negatively impacted by lower average premium

Expense ratio up slightly Y/Y

• Level as expected


Combined ratio

6

65,6 68,1 66,7 67,3 69,5 65,6

16,7 16,4

15,9 16,0 16,4

16,1

82,3 84,5

82,6 83,3 85,9

81,7

78,6

83,6

76,8

80,2 78,9

80,8

2012 2013 2014 2015 2014 2015

Q2 H1

Claims ratio incl. reinsurance

Gross expense ratio

Underlying combined ratio

Weather-related and major claims


Major claims ratio

Major claims up by 4.1 ppts Y/Y Within expected range of 7-8%

• Higher claims in both private and commercial

lines • Still low major claims YTD

Weather-related claims excl. reinstatement down by 5.7 ppts Y/Y Low compared with normal expectation of 3-4% • No material weather-related events in Q2 • YTD impacted by two storms in January but still

below normal expected level

Weather-related claims ratio

7

4,7

6,0

3,7

7,8

6,4

2012 2013 2014 2015 2015

Q2 H1

Major claims ratio Average expectation (7-8%)

2,1 1,7

6,6

0,9 2,3

-0,3 -0,1

2012 2013 2014 2015 2015

Q2 H1

Weather-related claims ratio Reinstatement Average expectation (3-4%)

Premiums impacted by intensified competition

Premium income down by 0.6% Y/Y • Private down by 1.2%

– Lower prices due to intensified competition – Price adjustment on motor insurance

– Retention rate has been falling due to competition but has remained at a satisfactory level

• Commercial unchanged Y/Y – Intensified price competition in commercial

lines


Premium income DKKm

8

640 658 660 653

566 600 606 606

1.206

1.258 1.266 1.259

2012 2013 2014 2015

Q2

Private Commercial

Private - Very satisfactory results

Combined ratio of 85.8 - Worsened by 3.6 ppts Y/Y

Very few weather-related claims • Benign weather • Major claims higher Y/Y but at a normal level • Run-off gains lower Y/Y but still positive

– Improved CR by 3.7 ppts (down by 4.6 ppts Y/Y)

Underlying business still satisfactory • Lower claims frequency on fire and property insurances • Lower average premium affecting negatively


Combined ratio

9

70,7 68,1 64,1

68,4

17,7 18,5

18,1

17,4

88,4 86,6

82,2 85,8

2012 2013 2014 2015

Q2


Gross expense ratio

Commercial - Very satisfactory results

Combined ratio of 80.7 - Improved by 2.2 ppts Y/Y

Weather-related and major claims 0.9 ppt lower Y/Y • Very few weather-related claims • Major claims up Y/Y but at a normal level • Run-off gains improved CR by 7.1 ppts (up by 6.8 ppts Y/Y)

– Primarily related to workers’ compensation, fire and property insurances

Worsened underlying business • Negatively impacted by higher interest rate (1.9 ppts Y/Y) • Higher claims frequency and average claims • Underlying claims ratio still below expected level


Combined ratio

10

59,7

67,9 69,3 66,2

15,6

14,1 13,6 14,5

75,3

82,0 82,9 80,7

2012 2013 2014 2015

Q2


Gross expense ratio


LIFE AND PENSION Highlights

Pre-tax profit of DKK 14m - Down by DKK 13m Y/Y • 2014 impacted by one-off income • Expense result negatively impacted by one-offs • Negative return on investments allocated to equity • Growth in regular premiums

Bonus potential remains attractive • Collective bonus potential down by DKK 81m • Bonus rate reduced to 10.5%

L I F E A N D P E N S I O N

Pre-tax profit DKKm

11

19 22

26

19

48

38 2

0

1

-5

2

2

21 22

27

14

50

40

2012 2013 2014 2015 2014 2015

Q2 H1

Underwriting profit/loss

Return on investments allocated to equity

Pension contributions

Total pension contributions up by 4.5%

Pension premiums up by 7.6% Y/Y • Single premiums up by 8.8% • Regular premiums down by 6.4%

– Inflow of new policyholders secured growth – Growth of 3.2% YTD

Unguaranteed investment schemes in the bank down by 2.9%


Total pension contributions DKKm

12

128 135 139 146

317 327 78 56

139 152

351 395

96 110

117 114

192

219

302 301

395 412

860

941

2012 2013 2014 2015 2014 2015

Q2 H1

Regular premiums

Single premiums

Investment schemes

Profit impacted by lower risk result

÷ Expense, risk and group life results – Expense result negatively impacted by one-off

expenses – Satisfactory risk result – Q2 2014 impacted by an extraordinary reversal

of a provision

÷ Return on equity investments

– Loss due to lower interest rates

+ Portfolios without bonus entitlement


Profit split* DKKm

13 * Profit before tax of the parent company Alm. Brand Liv og Pension A/S, which includes post-tax return on investment in the EMD Local Currency investment fund

18 20

25

10

3

3

4

4

-2

4

6

1

-5

2

-1 -3

1

27

22

27

14

2012 2013 2014 2015

Q2

Expense, risk and group life results

Interest result

Result of portfolios without bonus entitlement


Change to shadow account

Investment return


Attractive bonus potential

• Average bonus rate of 10.5%

• Bonus rate down by 0.5 ppt

– Primarily related to interest rate group 0

– Groups 1 and 2 improved

– Group 3 still strong

• Attractive bonus rate for new policyholders of 11.7%

Rate on policyholders’ savings

• Still highest rate on private policyholders’ savings in Denmark

14

U74*

Interest rate group Total

0 1 2 3

Technical interest rate 0.5-1.5 1.5-2.5 2.5-3.5 3.5-4.5

Rate on policyholders’ savings, 2015 4.00 5.00 5.00 6.00

Investment assets (DKKbn) 0.1 5.6 1.8 1.3 3.7 12,5

Bonus rate (%) 11.7 19.1 6.9 4.5 10.5

Return (% YTD) 1.8 -0.6 -0.8 -1.4 0.1

Bonds 100% 57% 52% 74% 79% 65%

Equities 0% 27% 22% 9% 4% 17%

Property 0% 16% 13% 11% 9% 13%

Fixed-income derivatives 0% 0% 13% 6% 8% 5%

*Portfolios without bonus entitlement


BANKING Highlights

Pre-tax loss of DKK 8m Down by DKK 14m Q/Q

• Turbulent financial markets

– Negative value adjustments on bond portfolio – Lower customer activity in Financial Markets

• Writedowns positively impacted by gains on lending

previously written off • Growth in full-service customers and lending

B A N K I N G

Pre-tax profit DKKm

15

29

34

-14

12

-8 -7 -3

0

-6

0

22

31

-14

6

-8

Q2 Q3 Q4 Q1 Q2

2014 2015

Profit before writedowns

Writedowns

Forward-looking activities

Pre-tax loss of DKK 8m (down by DKK 14m Q/Q)

Private • Lending up by DKK 36m in Q2 • Number of full-service customers increased • Lower fees

– Q1 was positively impacted by debt conversions

Financial Markets • Lower customer trading activity • Loss on investment portfolio • More customers and more assets under management

Leasing • Number of leased cars increased • Increased competition has reduced the growth rate

– Portfolio up by DKK 32m (DKK 228m Y/Y) • Costs impacted by investments in automation

Other • Result negatively impacted by low/negative interest rates in

combination with excess liquidity • Loss on bond portfolio

B A N K I N G

Profit before writedowns DKKm

16

-3 -4 -6

4

-1

18

7 4

18

1

2

-2

2

3

2

12

33

-14

-13 -10

29

34

-14

12

-8

Q2 Q3 Q4 Q1 Q2

2014 2015

Private Financial Markets Leasing Other

Targeted reduction in liquidity

Liquidity surplus • Liquidity surplus of DKK 3.7bn at end-H1 2015 • Reduced by DKK 0.2bn in Q2 Reducing surplus • Deposits reduced by DKK 0.3bn • Surplus expected to be reduced by DKK 1bn in H2

2015

B A N K I N G

Deposits DKKbn

17

3,4 4,0

4,5 5,4 5,4

6,5 5,6 5,4

2,9 2,6

1,4 1,3 1,2

1,0 1,0

11,3 10,9 11,1

9,3 9,0

2012 2013 2014 Q1 2015 Q2 2015

Deposits at call

At notice

Other deposits


WINDING-UP ACTIVITIES Highlights

Pre-tax loss of DKK 78m In line with expectations

Writedowns of DKK 62m

• Negatively impacted by agriculture, offset by commercial lending and mortgage deeds

Results before writedowns: Loss of DKK 16m

• Positive net interest and fee income in Q2

• Value adjustments negatively impacted by shares taken over

Portfolio reduced by DKK 75m adjusted for writedowns (DKK 204m YTD)

• Expected reduction in 2015 raised from DKK 200m to DKK 300m

B A N K I N G

Pre-tax profit DKKm

18

-15 -21 -18

-11 -16

-60 -56

-81

-63 -62

-75 -77

-99

-74 -78

Q2 Q3 Q4 Q1 Q2

2014 2015

Profit before writedowns

Writedowns

Agriculture impacted writedowns

Writedowns of DKK 62m

Agriculture

• Low pork and milk settlement prices still contributing to high level of writedowns

• Lending grew by DKK 2m adjusted for writedowns

Commercial lending

• Reversal of writedowns again in Q2 2015

• Lending reduced by DKK 66m adjusted for writedowns

Mortgage deeds

Lower writedowns compared to previous quarters

• Writedowns of DKK 10m related to mortgage deeds held by Non-life Insurance

• Reversal of DKK 4m related to own mortgage deeds

B A N K I N G

Writedowns DKKm

19 Mortgage deeds include credit exposure from option agreement

15

71

57 60

10

-27

-12

-4

31

37

18

6

Q3

20

14

Q4

20

14

Q1

20

15

Q2

20

15

Q3

20

14

Q4

20

14

Q1

20

15

Q2

20

15

Q3

20

14

Q4

20

14

Q1

20

15

Q2

20

15

Agriculture Commercial lending

Mortgage deeds

CAPITAL MODEL

Excess capital higher than expected

• Capital target reduced by DKK 165m primarily related to Banking

• The group contemplates setting up a share buy-back programme during autumn based on the extraordinary capital improvement

G R O U P

20

Development in excess capital DKKm

Other includes reduction in tier 2 capital and change in treasury shares

383

667

96

37

165

-14

Excess capital Q1 '15

Q2 profit Change in tax asset

Change in capital target

Other Excess capital Q2 '15

Full-year outlook for 2015 - Lifted by DKK 100m

DKK 450-550m Pre-tax profit

Forward-looking activities: Pre-tax profit of DKK 800-850m

Winding-up activities: Loss of DKK 300-350m

G R O U P

Non-life Insurance Pre-tax profit: DKK 775m Lifted by DKK 125m

• CR at the level of 85 • Expense ratio at the level of 16 • Premiums in line with 2014

Life and Pension Pre-tax profit: DKK 75m Unchanged

• Expects to book risk

allowance for all contribution groups

• Regular premiums expected to grow by 4%

Banking Pre-tax profit: DKK 20m Lowered by DKK 20m

• Writedowns of around

DKK 20m • Negative impact from low

interest rate level

21

Non-life Insurance: Technical result better than expected, but investment result negatively impacted by turbulent financial markets

Life and Pension: Growth in regular pension premiums

Banking: Negatively impacted by turbulent financial markets. Increase in lending to private customers and continued growth in full-service customers

Winding-up activities: Overall performance as expected, but difficult conditions for agriculture

Outlook FY 2015 outlook raised to DKK 450-550m

G R O U P

22

Highlights

Appendix

23

Alm. Brand in brief

A financial group with DKK 7 billion in revenue and 1,600 employees Offering • Non-life insurance • Banking • Life insurance

Customer focus • Private customers multiple insurance, banking

pension needs • Agriculture and small to medium-sized

commercial customers (not bank)

Distribution of products through • 260 insurance agents • 6 call centres • 13 life and non-life sales centres • 11 bank branches

G R O U P

Sales distribution

Bank branches

Insurance and pension branches

Headquarter

Regional offices

24

NON-LIFE INSURANCE • 4th largest in Denmark

• 500,000 customers

– Private customers

– SMEs

– Agricultural customers

• Cost efficient

• Strongly improved claims scenario

• Competitive combined ratio

• High customer satisfaction

INVESTMENTS ETC.

BANKING • Approx. 50,000 private customers

• Financial Markets and Leasing

• Discontinued lending portfolio

LIFE AND PENSION • Approx. 80,000 customers

• Low costs for customers • Low-risk customer portfolio

• Stable results and high bonus rate

ALM. BRAND - A Danish financial services group

Revenue Approx

DKK 7bn

Integrated business model across insurance, banking and pension

G R O U P

68 %

13 %

10 %

9 %

25

Customer focus and sales - customer loyalty as a competitive parameter

G R O U P

Sales distribution

Customer focus Private customers requiring insurance, banking

and pension services Agricultural customers and SMEs (but not in

banking) Pluskunder

Distribution strategy • Focus on cross selling and referral between sales

channels • Five regions responsible for targeted sales and

service • In-depth knowledge of customers and local

conditions • Central functions provide support through

specialised resources

Distribution through: • 260 insurance agents • 6 customer service centres • 13 sales centres • 11 bank branches

Bank branches

Insurance and pension branches

Headquarter

Regional offices

26

CUSTOMER FIRST 2013-2016

Pre-tax return on equity target CIBOR +10 % in 2016

G R O U P

Efficiency • Improve expense

ratio through streamlining of processes

• Improve the banks interest margin by 1 ppt by 2016

Quality • Improve quality

in all processes • Reduce number

of complaints

Digitalisation • Investing in

digitalisation • Degree of

digitalisation to reach 33% in all customer faced processes

• Self-servicing possibilities to be improved

Customers • Focus on

customer service in all parts of the group

• Improvement of loyalty through good customer experiances

27


NON-LIFE INSURANCE Highlights

4th largest non-life insurance company in Denmark

• 400,000 Private customers

– 200,000 PlusKunde customers

• 100,000 SMEs and agricultural customers

Competitive strengths

• Cost efficient

• Strongly improved claims scenario

• Competitive combined ratio

• High customer satisfaction


Return on equity

28

12,0%

23,2%

38,7%

32,7%

29,5%

2010 2011 2012 2013 2014

Product focus and distribution

Insurance agents still primary distribution channel High property exposure


Products

23%

26% 27%

6%

12%

6%

Fire and property, private Fire and property, commercial

Auto insurance Workers' compensation

Health and accident Other insurances

Premium income

DKK 5bn

29

59 75 74

41 10 20

15 6

Private Commercial Agricultural

Insurance agents Customer service centres Brokers

Distribution (pct.)

Premium development DKKm

2.504 2.540 2.579 2.626 2.642

2.258 2.232 2.287 2.405 2.416

4.762 4.772 4.866

5.031 5.058

2010 2011 2012 2013 2014

Private Commercial


30

Combined Ratio

Combined Ratio Underlying Combined Ratio


31

85,5

80,2 79,7

78,8

77,0

2010 2011 2012 2013 2014

80,6 76,4 67,1 71,4 69,9

17,6 15,9

16,2 16,0 15,6

98,2 92,3

83,3 87,4 85,5

2010 2011 2012 2013 2014


Gross expense ratio

Development in private and commercial - Combined ratio

Private Commercial


32

80,9 77,1 70,0 67,5 68,7 67,4

20,1 18,8

15,3 17,7 17,8 17,4

101,0 95,9

85,3 85,2 86,5 84,8

2009 2010 2011 2012 2013 2014


Gross expense ratio

78,0 84,6 83,6

66,7 74,4 72,4

16,8

16,3 16,6

14,6

14,0 13,6

94,8

100,9 100,2

81,3

88,4 86,0

2009 2010 2011 2012 2013 2014


Gross expense ratio

Development in segments - Technical results

• Private property insurance are now generating profit

• CR of 89.1 in 2014

• Commercial property insurances still not performing satisfactorily

• Hit by storms in 2013 and cloudburst in 2014

• CR of 102.2 in 2014

• Auto insurances still showing very positive results

• CR of 80.6 in 2014

• Workers’ compensation is positively impacted by run-off gains

• CR of 74.9 in 2014

• Health and accident insurance positively impacted by run-offs in 2014

• CR of 65.9 in 2014


33

-300

-200

-100

0

100

200

300

400

Fire and property, private

Fire and property, commercial

Auto insurance Workers' compensation Health and accident Liability insurance & Other direct insurance

2007 2008 2009 2010 2011 2012 2013 2014

Peer group comparison

2012

Note: Combined ratio and expense ratio are stated at group level. Codan figures include Danish business only.

Exp

en

se r

ati

o

Co

mb

ined

rati

o

2013

2014

H1 2015

83,3 88,0 88,2

93,8

87,4 91,5

87,7

94,7

85,5 86,0 84,2

94,9

81,7 85,7 86,4


34

16,2 15,8 16,4

22,3

16,0 16,2 15,6

22,7

15,6 15,7 14,6

24,5

16,1 16,1 15,4

Insurance competitors - largest Danish non-life insurance companies Q3 2014

Source: Forsikring og Pension

0% 5% 10% 15% 20% 25%

Tryg

Topdanmark

Codan

Alm. Brand

Gjensidige Forsikring

If

LB Forsikring

Alka

GF-Forsikring


35

Insurance competitors - Segments Q3 2014

Source: Forsikring og Pension

25,6%

15,8% 20,1%

30,7% 26,3%

15,0%

23,1%

24,1% 21,7%

17,9%

15,5%

19,4%

6,0%

6,6% 7,7%

7,4% 12,8%

8,6%

27,1%

26,5% 25,5%

22,4% 25,2%

33,1%

11,8%

11,0% 13,1% 9,0% 6,4%

8,2%

2,0%

6,5% 4,3% 3,7% 4,2% 5,6%

4,4% 9,5% 7,6% 8,9% 9,6% 10,1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Building / content (commercial) Building / content (private) WCA Motor Healt and accident Liability Other


36


LIFE AND PENSION Highlights

90,000 insurance agreements • 60,000 agreements with regular payments

Market shares, measured in regular payments: • Individual retirement

and capital pension schemes 6% • Private installment pension schemes 3% • Insurances with regular disbursements 5% • Employer schemes <1%

Key strenghts • Low costs for customers • Low-risk customer portfolio • Stable results and high bonus rate


Return on equity

37

12,0%

17,0%

13,3%

9,7%

8,8% 9,2%

2009 2010 2011 2012 2013 2014

Pension contributions

Pension premiums


Total pension contribution DKKm

25%

38%

25%

12%

Investment schemes

Individually written insurance

Insurance written in employment relationship

Group life schemes

DKK 1.2bn

38

629 603 618 626 632

90 121

285 302

611

186

358

332 345

402

905

1.082

1.235 1.273

1.645

2010 2011 2012 2013 2014

Regular premiums Single premiums

Investment schemes

Earnings distribution

Risk result is the largest contributor to earning • Individual health assessment on

all customers

Interest result • 0.15% on provisions

Investments allocated to equity • Low risk bond investment

Shadow account • DKK 12m end 2014


Profit split* DKKm

86 81 74

62

11 11

11

16

21

12

3

2

24

-9 -3 -5

-5 -2

137

90

86

77

2011 2012 2013 2014

Expense and risk results

Interest result


Result of portfolios without bonus entitlement

Change to shadow account

39 * Profit before tax of the parent company Alm. Brand Liv og Pension A/S, which includes post-tax return on investment in the EMD Local Currency investment fund

The discount rate of the Danish FSA declined in 2014 (10-year point): – 2014: 0.99% – 2013: 2.24%


Provisions DKKm

40

10.931 11.332 11.832

10.198 10.920

517 454

586

827

912 45 43

45

49

46 11.493 11.829

12.463

11.074

11.878

2010 2011 2012 2013 2014

Life insurance provisions

Collective bonus potential

Outstanding claims provisions

Attractive bonus potential

Attractive bonus potential Also bonus potential in interst rate group 3 with the highest guarantee


Collective bonus potential DKKm

41

1%

52%

29%

8%

10% Risk groups

Interest rate group 0




Bonus potential per group 2014 454

587

827

912

1.005

3,65% 3,65%

3,00%

4,00% 4,00%

2011 2012 2013 2014 2015

H1

Bonus potential

Rate on policyholders' funds (new agreements)

Competitive position

Alm. Brand has some of the lowest costs for customers


Costs for private customers

42

0%

1%

2%

3%

Alm

.Bra

nd

AP

Pen

sio

n

Da

nic

a,

ba

lan

ce

No

rdea

PF

A

SE

B

Sk

an

dia

, b

asi

c

To

pd

an

ma

rk

Premium 15,000 - depository 100,000 Premium 30,000 - depository 250,000

Premium 50,000 - depository 500,000 Premium 80,000 - depository 2,000,000

8 January 2015 Source: Fakta om Pension & omkostningsmålere


BANKING Highlights

Forward looking activities

Nation-wide bank focused on

• Retail banking with 50,000 private customers (households)

• Financial Markets

• Leasing of cars

Winding-up activities

• Agriculture

• Commercial lending

• Mortgage deeds

B A N K I N G

Return on equity

43

-67%

-95%

-42%

-34%

-17%

2010 2011 2012 2013 2014

Funding development

Significant changes in funding structure and costs Funding primarily consists of deposits, hybrid capital and central banks

B A N K I N G

Funcing costs DKKm

44

643

421

513

457

321

216

2009 2010 2011 2012 2013 2014

Credit institutions and central banks

Deposits and other payables

Bonds issued

Total subordinated debt

10%

89%

1% Credit institutions and central banks



DKK 12.5bn

Funding development

B A N K I N G

Quarterly funcing costs DKKm

45

73

68

61

53 50

52

36

23

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2013 2014 2015



Credit institutions and central banks

Deposits

A significant reduction of deposits at notice expected in 2015

B A N K I N G

Development in deposits DKKm

46

3,4 4,0

4,5 5,5

6,5 5,6 5,4

2,6

1,4 1,3 1,2

1,0

11,3 10,9 11,1

9,0

2012 2013 2014 H1 2015

Deposits at call

At notice

Other deposits

Winding-up lending

Agriculture • 80 customers • 45% pig farmers, 45% dairy

farmers, 10% arable farming • Gross lending DKK 1.3bn

Commercial lending • Primarily lending to investment

properties

Mortgage deeds • Private and commercial mortgage

deeds • Risk on non-delinquent mortgage

deeds sold to Non-life Insurance

B A N K I N G

Development in lending DKKm

47

955

1.757

2.930

0

820

1.455

2.497

0

668

1.094

307

1.874

543

940

279

1.740

Agriculture Commercial lending Mortgage deeds Credit exposure, mortgage deeds

2012 2013 2014 H1 2015

CAPITAL TARGET 30 June 2015

Capital target reduced by DKK 265m in H1 2015

• Risk reduction in the bank and subsequently reduction of buffer related to winding-up portfolio

G R O U P

DKKm Target 2014

Target Q2 2015

Non-life Insurance (40% of premiums) 2,023 2,023

Life and Pension (8.50% of provisions for insurance contracts) 928 903

Banking (16.2% of risk-weighted assets)* 1,475 1,286

Buffer related to winding-up portfolio 506 455

Diversification effects -300 -300

Total capital target 4,632 4,367

*Calculated as the individual solvency requirement as at 30 June 2015 plus 3 ppts

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Investment mix - As of 30 June 2015

G R O U P

Life and Pension DKK 13.2bn

• Large exposure to bond markets • Shares and property accounts for

more than 25% of the portfolio

Non-life Insurance DKK 10.4bn

• Mortgage bonds accounts for approx. 80% of the portfolio

• Mortgage deeds acquired from the bank

• Shares account for approx. 2%

Banking DKK 5.1bn

• Primarily mortgage bonds

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Shares 2%

Mortgage bonds 81%

Mortgage deeds 17%

Shares 15,7%

Property 12,7%

Mortgage bonds 46,5%

Government bonds 12,8%

index-linked bonds 5,3%

Credit bonds 2,8%

Emerging markets

4,2%

Shares 4% Mortgage

bonds 81%

Government bonds

1%

Credit bonds 1%

Liquidity 13%

Organisational structure

G R O U P

Søren Boe Mortensen CEO: Since 2001 Employed:1987

Jesper Mørch Sørensen Managing Director Non-life Insurance Employed:2004

Mikael Sundby Managing Director Life and Pension Employed:1985

Kim Bai Wadstrøm Managing Director Banking Employed: 2011

Anne Mette Barfod CFO Employed:1996

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Rasmus Lynge Marketing Director Employed:2015

History

G R O U P

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Great Copenhagen Fire of 1728 Major farm fires and

resulting bankruptcies

1728 1792 1984 1988 1989 to 2001 2002 2002 to 2009

Alm. Brand established By order of King Christian VII Only fire insurances Outside Copenhagen and

provincial towns

Alm. Brand Liv & Pension established Acquisition of

Nordlyset renamed Alm. Brand Liv & Pension

Alm. Brand Bank established Through the

acquisition of SLJ Bank

Acquisitions (1989 to 2001) Det Kjøbenhavnske Reassurance-Compagni (Kjøbenhavnske Re) fra

1915. Aktieselskabet Utrecht. Controlling interest in Finansieringsselskabet Gefion A/S. Gefion A/S

subsequently became the parent company for the Group's financial activities and renamed Alm. Brand A/S.

The Danish activities of Zurich Life Insurance. Provinzial Danmark, SamLiv and Cykelhandlernes Forsikringsselskab.

Consolidation of insurance activities Alm. Brand A/S acquires non-life

insurance portfolio from Alm. Brand af 1792 G/S

Alm. Brand af 1792 G/S transformed to a fmba

Acquisitions and disposals Provinsforsikring merged with

Alm. Brand Acquisition of Henton

Børsmæglerselskab A/S Disposal of Kjøbenhavnske Re.

2014

Liquidation Solvent liquidation of the listed

subsidiary Alm. Brand Formue

“The statements made in this presentation are based on current expectations, estimates and projections made by management. All statements about future financial performance are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by the statements. All statements about future financial performance made in this presentation are solely based on information known at the time of the preparation of the last published financial report, and the company assumes no obligation to update these statements, whether as a result of new information, future events, or otherwise.”

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Alm Brand

Investor presentation September 2015

Results for Q2 2015 - Alm. · PDF fileResults for Q2 2015 Investor presentation September 2015...

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