25 August 2010
Announcement No. 10/2010
Key features
Q2 2010
• Post-tax profit of DKK 94m (Q2 2009: DKK 555m).
• The combined ratio improved to 87.9% (Q2 2009: 91.0%); excluding run-off
profits it improved to 89.7% (Q2 2009: 93.4%).
• Premiums declined 0.8% in non-life insurance but increased 9.4% in life
insurance.
• The result of life insurance declined to a loss of DKK 50m (Q2 2009: DKK 43m
profit) primarily due to reversal of the allowance for risk and the shadow
account included in income in Life I in Q1 2010.
H1 2010
• Post-tax profit of DKK 362m (H1 2009: DKK 590m).
• The combined ratio increased to 95.3% (H1 2009: 91.3%); excluding run-off
profits it increased to 97.6% (H1 2009: 93.6%).
• Adjusted for weather-related claims and premium adjustments relating to 2009
and excluding run-off profits the combined ratio was around 91%.
• Premiums declined 2.2% in non-life insurance but increased 4.7% in life
insurance.
• Profit on life insurance increased to DKK 94m (H1 2009: DKK 56m).
Profit forecast model
• For the full year of 2010 it is assumed that, excluding run-off profits /
losses in H2 2010, the combined ratio will remain unchanged at 94-95%.
• Growth in non-life premiums has been adjusted to around minus 1% from around
zero due to premium adjustments, relating to 2009, in Q2 2010 and a lower than
previously expected growth in unemployment and illness / accident insurance
policies.
• The post-tax profit forecast model for 2010 has been downgraded to DKK
800-900m from DKK 950-1,050m due to a lower investment return, including a
deferred recognition of DKK 90m of income from the shadow account of Life I
into a subsequent period.
• The share buy-back programme for 2010 has been correspondingly reduced by DKK
150m to DKK 900m representing a yield of 8.3%. To date in 2010 Topdanmark has
bought back own shares of DKK 384m which leaves a balance of DKK 516m of the
2010 programme.
Solvency II
• Topdanmark continues to expect that solvency capital of DKK 4,500m will be
sufficient to cover the capital requirements on the change to Solvency II.
On www.topdanmark.com -> Presentations a webcast is available in which
Topdanmark's CEO, Christian Sagild, presents the financial highlights and
comments on the forecast.
A conference call will be held today at 15:30 (CET) when Christian Sagild, CEO,
and Lars Thykier, CFO, will be available for questions based on the H1 Report
and the webcast. The call will be conducted in English.
In order to participate in the conference call, please phone:
UK dial in number: +44 (0)20 7162 0125
US dial in number: +1 334 323 6203
10-15 minutes before the conference asking the operator to connect you to the
Topdanmark conference call - or listen to the live transmission of the call.
Please direct any queries to:
Christian Sagild
Chief Executive Officer
Direct tel.: +45 4474 4450
Lars Thykier
Chief Financial Officer
Direct tel.: +45 4474 3714
Steffen Heegaard
Head of IR and Group Communications
Direct tel.: +45 4474 4017, mobile: +45 4025 3524
