28 August 2007 Announcement No. 18/2007
Key features:
• Post-tax result for H1 2007 increased to DKK 764m from DKK 689m in H1 2006.
• Profit per share increased from DKK 35.2 to DKK 42.7.
• The profit represented a 22.6% pre-tax return on shareholders' equity (50.3%
annualised) and a 17.6% post-tax return (38.4% annualised).
• Premium income increased 0.4% in non-life insurance and 8.3% in life
insurance.
• The expense ratio remained unchanged at 14.4%.
• The combined ratio for the half-year declined from 86.4% to 85.9%.
• Topdanmark continues to expect premium growth of 1% in non-life insurance
while the expected growth in life insurance premiums has been increased from 5%
to 10% for 2007.
• The combined ratio for the full year 2007 is expected to improve from the
previous just below 88% to now just over 87%.
• In spite of a better than assumed claims trend, the profit forecast for 2007
is DKK 100m lower than originally assumed due to the turbulence in the equity
and credit markets over the summer. Profit is now forecast to be DKK 1,200m -
1,300m after tax in line with the 2007 profit forecast published in the 2006
Annual Report.
• In spite of the changed profit forecast the share buy-back programme has been
increased from DKK 1,800m to DKK 2,100m reflecting a reduction of DKK 100m to
DKK 1,700m and an increase of DKK 400m due to EUR 55m of hybrid core capital
issued by Topdanmark. The buy-back represents a "yield" of 11.7%.
• It is recommended that this interim report is read together with
www.topdanmark.com which provides detailed and supplementary information
• On www.topdanmark.com Presentations a webcast is available in which
Topdanmark's CEO, Poul Almlund, presents the financial highlights and comments
on the forecast.
• Based on the H1 report and the webcast, a conference call will be held today
at 15:30 (CET) when Poul Almlund, CEO, and Christian Sagild, Group Managing
Director, will be available for questions. 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
5 - 10 minutes before the conference asking the operator to connect you to the
Topdanmark conference call.
or
Listen to the live transmission of the call on
http://wcc.webeventservices.com/view/wl/r.htm?e=92122&s=1&k=7C7BF1B87D54FEA033FA
6D4B74E2F271&cb=genesys
Please direct any queries to:
Poul Almlund, Chief Executive Officer
Direct tel.: +45 4474 3453
Christian Sagild, Group Managing Director
Direct tel.: +45 4474 4450
Steffen Heegaard, Head of IR and Group Communications
Direct tel.: +45 4474 4017, Mobile: +45 4025 3524
