11 February 2016
Announcement No. 10/2016
Key Features
2015
- Post-tax profit of DKK 1,132m (2014: DKK 1,558m).
- This profit is in line with the profit forecast of DKK 1,050-1,150m assumed for 2015 in the interim report for Q1-Q3 2015.
- EPS was DKK 11.3 (2014: DKK 14.4).
- Combined ratio was 87.3% (2014: 86.0%).
- Combined ratio excluding run-off profits was 91.6% (2014: 89.8%).
- Premiums declined 1.8% in non-life insurance, but increased 42.1% in life insurance.
- Impacted by lower investment returns, profit on life insurance declined to DKK 174m (2014: DKK 200m).
- Investment return declined to DKK 274m (2014: DKK 711m).
- Share buy-back of DKK 1,667m in 2015, representing a buy-back yield of 8,6 %. The buy-back programme of DKK 1,950m for 2015 has been fully concluded.
Q4 2015
- Post-tax profit: DKK 278m (Q4 2014: DKK 304m).
- EPS: DKK 2.9 (Q4 2014: DKK 2.9).
- Combined ratio: 91.6% (Q4 2014: 83.6%). As compared to Q4 2014, the combined ratio was impacted by weather-related claims in Q4 2015, corresponding to a 5.9pp effect on the combined ratio.
- Combined ratio excluding run-off profits: 97.1% (Q4 2014: 87.5%).
- Trend in premiums: 2.6% decline in non-life insurance, 61.0% increase in life insurance.Profit on life insurance: DKK 85m (Q4 2014: DKK 2m).
- Investment return: DKK 122m (Q4 2014: DKK 60m).
Profit forecast model for 2016
- As compared to the guidance for 2016 in the Q1-Q3 2015 report, the assumed combined ratio for 2016 remains unchanged at around 91% excluding run-off.
- In the interim report for Q1-Q3 2015, it was announced that the assumed non-life premium development for 2016 was a decline of around 1%. The Danish non-life insurance market continues to be competitive. In line with comments in the interim report for Q1-Q3 2015, and keeping the strategy of profitability as the primary target unchanged, Topdanmark still expects negative premium growth in 2016.
- Overall post-tax profit forecast model: DKK 800-900, excluding run-off, representing EPS of DKK 9.2.
Share buy-back
- The share buy-back programme for 2016, which will be executed from 12 February 2016 until the announcement of the 2016 Annual report on 23 February 2017, is DKK 1,250m, representing a buy-back yield of 7.5%.
Accounting policies 2016
- The accounting policies for 2016 have been changed on the basis of the new Danish accounting order. The changes are not expected to have material effect on results and shareholders’ equity.
Topdanmark appoints two new members to its Executive Board
- Kim Bruhn-Petersen, Topdanmark’s COO of non-life insurance, has announced that he wants to resign. When Kim Bruhn-Petersen resigns on 1 March 2016, Marianne Wier and Brian Rothemejer Jacobsen will join the Executive Board, see: company announcement No. 11/2016 of 11 February 2016.
Webcast
Topdanmark's CEO, Christian Sagild, will present the financial highlights and comment on the forecast via a webcast.
Conference call
A conference call will be held today at 15:30 (CET) when CEO Christian Sagild and CFO Lars Thykier will be available for questions based on the interim 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 0025
US dial-in number: +1 334 323 6201
10-15 minutes before the conference quoting reference 957299 and ask 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
Group Communications and IR Director
Direct tel.: +45 4474 4017, mobile: +45 4025 3524
Topdanmark A/S
Cvr-nr. 78040017
Borupvang 4
DK-2750 Ballerup
