As announced in connection with the release of the financial statements for the nine months ended 30 September 2014, Alm. Brand Forsikring A/S has entered into an agreement to purchase non-delinquent mortgage deeds from Alm. Brand Bank A/S for an amount of DKK 1.9 billion. Alm. Brand today received approval from the Danish FSA, and the transaction will be completed on 11 December 2014.
This transaction will optimise the liquidity and asset composition of the group without increasing the risk involved. It will also substantially reduce the group’s funding requirements.
The transaction contains an option agreement to protect Alm. Brand Forsikring against future credit losses. The agreement implies that Alm. Brand Forsikring can return mortgage deeds to the bank if a debtor defaults on his payment obligations. This means that the bank retains the credit risk, whereas Alm. Brand Forsikring only assumes the market risk associated with investing in the mortgage deeds.
This announcement will not affect the company's full-year profit forecast for 2014 or 2015.
Contact
Please direct any questions regarding this announcement to Susanne Biltoft, Head of Information and Investor Relations, on tel. +45 35 47 76 61.
