Alm. Brand A/S - Interim report for the first quarter of 2007
The quarter at a glance
• 8.6% growth in non-life premiums
• 29% growth in the bank's loans and advances
• Substantial growth in markets & asset management operations
• Full-year profit forecast upgraded by 6%
• 15% of the DKK 600 million share buyback programme completed. The buyback
programme equals a pay-out ratio of 7%
Highlights of the Alm. Brand Group's interim report for the first quarter of
2007:
• The group generated a Q1 2007 profit before tax and minorities of DKK 274
million, as compared with a profit of DKK 226 million in Q1 2006.
• The results were highly satisfactory and attributable to a positive
performance by all three of the group's business areas. In particular, banking
outperformed expectations.
• The Q1 performance equalled an annualised return on equity of 22% before tax,
compared with 20% in Q1 2006.
• As a result of the positive performance, we upgrade the full-year profit
forecast for 2007 by DKK 50 million, or by 6%. The upgrade is based on the
banking and life insurance operations.
• Non-life operations generated a pre-tax profit of DKK 142 million, which was
satisfactory.
Underlying the results were favourable performances by all segments and the
fact that the group experienced few major claims. On the other hand, a number
of minor windstorms during the quarter resulted in weather-related claims of
DKK 60 million.
The combined ratio was 93.5 in Q1 2007 with weather-related claims accounting
for around five percentage points.
Non-life premium growth was 8.6%, which was highly satisfactory. The
substantial growth performance builds on the initiatives the group has launched
in recent years. The most important of these initiatives include allocation of
more sales and service resources, a new sales tool within the private customer
segment, new sales centres, the setting up of branch offices across Denmark and
comprehensive training efforts for the group's entire sales and service staff.
• The bank posted a pre-tax profit of DKK 95 million excluding minorities in Q1
2007, which was better than expected. As a result, the full-year profit
forecast is upgraded by DKK 40 million.
The bank expanded operations in all segments. For example, loans and advances
were up by 29%. Also, our markets & asset management operations experienced
increased business activity with a net inflow of new clients and business
volumes with existing clients expanded. In addition, the bank's Q1 profit was
supported by unrealised capital gains on a number of shareholdings and by very
low losses on loans and advances.
• The life insurance operations posted a pre-tax profit of DKK 29 million in Q1
2007, as compared with DKK 21 million in the year-earlier period. As a result
of the favourable performance, the full-year forecast is upgraded by DKK 10
million.
The collective bonus potential continued to rise, reaching 5% of provisions.
• The group generated total income of DKK 1.9 billion in Q1 2007.
• At 31 March 2006, shareholders' equity was DKK 5.5 billion including minority
interests totalling DKK 0.5 billion.
Please direct any questions regarding this announcement to Søren Boe Mortensen,
Chief Executive, on tel. +45 35 47 47 47.
Yours sincerely,
Alm. Brand A/S
Søren Boe Mortensen
Chief Executive
The report is attached in pdf-format
