Government guarantee, writedowns and fresh capital

State-guaranteed bonds
The terms and conditions for Alm. Brand Bank obtaining a government guarantee
until end-2013 in connection with the issuance of bonds have been defined. The
bank expects to issue bonds for an amount of up to DKK 6 billion before the end
of June. 

In that connection, Alm. Brand A/S has undertaken to contribute the necessary
capital to Alm. Brand Bank in order to ensure that the bank complies with the
solvency requirements at all times. Depending on the financial position of Alm.
Brand A/S, this contribution is capped at DKK 1-2 billion. 

Improved performance
During the last couple of years, Alm. Brand has been working towards lowering
its cost level and adjusting prices and risk with a view to enhancing its
operating performance. Over the next few years, the group will intensify these
efforts. As a result, the group expects to generate a small but positive
operating profit in 2011 and a significantly enhanced performance in 2012. 

Writedowns
During the period of the past few years and until 31 March 2010, Alm. Brand
Bank has recognised total writedowns on loans and advances of DKK 2.2 billion.
Assessing the extent of the bank's writedowns on loans and advances in the
years ahead is subject to considerable uncertainty. Additional writedowns until
the end of 2012 are assessed to amount to DKK 1.2 billion. 
 
Capital
Against this backdrop, it may be necessary to contribute additional capital to
Alm. Brand Bank in the amount of DKK 0.8-1.0 billion. The amount depends on the
extent of writedowns, the profit on ordinary activities and the reduction of
risk-weighted assets. 

Alm. Brand A/S has received a commitment for a contribution of up to DKK 900
million by way of subordinated capital from Alm. Brand af 1792 fmba. 

At present, no decision has been made as to whether such capital will be
contributed as subordinated loan capital or as share capital in connection with
a possible rights issue. 

In order to prepare for a possible rights issue, the Board of Directors has
resolved to propose that the nominal capital be reduced from DKK 1,388 million
to DKK 173.5 million by way of a reduction of the nominal amount per share from
DKK 80 to DKK 10. Notice to convene an extraordinary general meeting will be
distributed within the next two weeks. 

Following the capital contribution, the group is assessed to have sufficient
capital for its future operations, also when considering the more stringent
requirements imposed by the new capital adequacy rules - Solvency II and Basel
III. 

Please direct any questions regarding this announcement to Søren Boe Mortensen,
Chief Executive, on tel. +45 35 47 79 07 or Susanne Biltoft, Head of
Information and Investor Relations, on tel. +45 40 30 76 61. 

Yours sincerely,

Alm. Brand A/S

Søren Boe Mortensen	
Chief Executive