Highlights
• Profit of DKK 82 million before tax - better than expected but not yet
satisfactory
• Good return on investment portfolio
• Improved expense ratio
• Continued loan impairments
• Continued high claims ratio
• Lower level of economic activity affecting revenues
• Guidance for 2009 retained
• Significant performance-enhancing initiatives launched
Other Q1 highlights
• Non-life operations recorded a profit of DKK 94 million.
The performance was favourably affected by few weather-related claims and by a
sustained decline in the expense ratio. The performance was also affected by a
strong investment result.
The performance was adversely affected by a continued high number of major
claims and rising expenses for small claims in private and agricultural lines.
In a move to improve the performance, the company has introduced adjustments of
premiums and terms and conditions on a number of insurance policies
characterised by an adverse claims experience. At the same time, the company
will retain its focus on reducing costs.
• The bank generated a profit of DKK 30 million before losses and impairment.
Including losses and impairment, the bank incurred a Q1 loss of DKK 49 million.
The performance was favourably affected by a good return on the investment
portfolio, lower costs and higher revenues.
On the other hand, the performance was adversely affected by continued
impairments. Moreover, the interest margin was narrower than anticipated due to
timing differences in the spread between funding and lending rates.
In late April 2009, the bank applied for hybrid tier 1 capital under the Second
Bank Package.
• The group's life operations generated a profit of DKK 27 million. An amount
of DKK 21 million was transferred to the shadow account, bringing the shadow
account balance to DKK 102 million.
The performance was favourably affected by a good return on the investment
portfolio and lower costs.
The performance was adversely affected by falling premium income, as pension
contributions have declined due to the economic recession.
As a smaller part of the bonus potential is now being applied to paid-up
policies, the transfer and surrender charge has been reduced to 2.0%.
• The consolidated revenue totalled DKK 2 billion.
Please direct any questions regarding this announcement to Søren Boe Mortensen,
Chief Executive, on tel. +45 35 47 79 07 or Susanne Biltoft, Head of
Information and Investor Relations, on tel. +45 35 47 76 61.
Alm. Brand A/S will host a webcast and teleconference on Tuesday, 19 May 2009
at 10.00 a.m. To follow the webcast, go to:
http://webcast.zoomvision.se/denmark/clients/almbrand/090518/
Financial analysts may participate by phone: Danish analysts: +45 327 147 67,
US analysts: +1 718 354 1226 and other international analysts: +44 (0) 208 817
9301.
Yours sincerely,
Alm. Brand A/S
Søren Boe Mortensen
Chief Executive
The interim report is attached in pdf-format.
