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.
