20 May 2010
Announcement 07/2010
Key features:
• Post-tax profit increased to DKK 268m in Q1 2010 from DKK 35m in Q1 2009
representing a profit per share of DKK 17.3.
• This profit is higher than expected because both the level of winter-related
claims was lower and the investment return higher than assumed.
• The post-tax profit forecast model for 2010 has been upgraded to DKK 950 -
1,050m from DKK 800 - 900m.
• The share buy-back programme for 2010 has been increased to DKK 1,050m from
DKK 900m representing a yield of 9.6%. To date in 2010 Topdanmark has bought
back own shares of DKK 81m which leaves a balance of DKK 969m of the 2010
programme.
• Non-life premiums earned declined 3.5% which was more than assumed. As a
result of this deviation, which was due to premium adjustments in workers'
compensation, commercial liability and contents insurance on 2009 results, the
expected growth in premiums for the full year of 2010 is being revised to
around zero from 1% - 2%.
• The combined ratio increased to 102.8% this quarter from 91.4% in Q1 2009 and
to 105.8% from 93.7 % excluding run-off profits. However, the underlying
combined ratio for Q1 2010 was 93.2% excluding run-off profits.
• Profit on life insurance increased to DKK 144m in Q1 2010 (Q1 2009: DKK 13m)
due to, among other factors, the recognition as income of risk allowances in
both Life I and Life V as well as a proportion of the shadow account in Life I.
• For the full year of 2010 it is assumed that, excluding any run-off profits /
losses in the last three quarters of 2010, the combined ratio will improve to
94% - 95% from 95% - 96%.
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 Q1 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
