Alm. Brand A/S Board Approves Significant Model Expansion Plans

Author: Addison Perry Updated: 05-07-2025 04:17 AM

Model Expansion Approved by Alm. Brand A/S Board

The Board of Directors of Alm. Brand A/S has taken a significant step forward by approving an addendum to their application for the expansion of a partial internal model (PIM). This move is essential as it aligns with their strategic initiatives aimed at optimizing capital management and regulatory compliance.

Impact on Capital Requirements

Anticipated approval from the Danish Financial Supervisory Authority (FSA) could lead to a remarkable reduction in capital requirements, estimated at about DKK 0.5 billion. This potential reduction is critical for Alm. Brand A/S to enhance its financial position and maintain competitive advantage within the insurance sector.

Inclusion of Codan Activities

The expanded model will integrate operations from Codan, which was successfully acquired in early May 2022. Currently, the solvency capital requirements for these activities are calculated using a standard formula. The expected expansion signifies a decisive shift towards more tailored risk evaluation methodologies that could streamline operations and improve capital efficiency.

Adjustments from Regulatory Feedback

Based on preliminary feedback from the Danish FSA, several key adjustments have been made to the model, ensuring compliance with regulatory expectations. These modifications have been thoroughly documented in a supplementary package to support the original application, which was initiated back in December 2024.

Looking Ahead: Expected Timeline

The concluding steps in the application process are projected to be finalized by the third quarter of 2025. This timeline offers a clear pathway for Alm. Brand A/S to anticipate future structural optimization and capital freedom, reinforcing its position in the marketplace.

Contact for Investor Inquiries

For any questions or clarifications regarding this announcement, stakeholders are encouraged to reach out to:

Investors and Equity Analysts:

Mads Thinggaard
Head of Investor Relations & ESG
Mobile no. +45 2025 5469

Press Inquiries:

Mikkel Luplau Schmidt
Head of Communications and Media Relations
Mobile no. +45 2052 3883

Frequently Asked Questions

What does the approved addendum entail?

The addendum approved by the Board of Directors involves the expansion of the partial internal model to include Codan’s activities, aiming for improved capital management.

How much could Alm. Brand A/S save in capital requirements?

If approved by the Danish FSA, Alm. Brand A/S could save about DKK 0.5 billion in solvency capital requirements.

When is the expected conclusion of the application process?

The application process is anticipated to conclude in the third quarter of 2025.

Why were adjustments made to the internal model?

Adjustments were made in response to preliminary feedback from the Danish FSA to ensure compliance and enhance the internal model's effectiveness.

Who can stakeholders contact for more information?

Stakeholders can contact Mads Thinggaard for investor inquiries or Mikkel Luplau Schmidt for press-related questions.

About The Author

Hello, I'm 30-year-old financial writer and expert Addison Perry, and I love to simplify the intricacies of the financial industry. I've committed myself over the years to deciphering the subtleties of investing techniques and economic trends and converting them into doable guidance that anybody can use. My goal with writings and books is to make money interesting and approachable so that readers may take charge of their financial futures.

My enthusiasm to empowerment and education has propelled me through my career in finance. I write because I think that everyone should be able to make educated financial decisions, and I try to provide that. Regardless of experience level with investing, my work is intended to provide insightful analysis and practical advice to enable you to thrive in the always changing financial environment. I appreciate you traveling with me toward success and financial literacy.

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