Significant Approval for Alm. Brand A/S
The Danish Financial Supervisory Authority (FSA) has granted approval for Alm. Brand A/S to utilize a Partial Internal Model (PIM) for their total insurance activities. This pivotal decision is expected to significantly assist the company in managing its solvency capital requirements.
Expected Impact on Solvency Capital Requirements
With this approval, Alm. Brand A/S anticipates a reduction of approximately DKK 0.6 billion in its solvency capital requirements. The move is considered a major advancement for the company, allowing them to better align their capital management strategies under the existing Solvency II regulatory framework.
Details on the Expansion
The PIM is a comprehensive internal model covering all of Alm. Brand's insurance operations, including those recently acquired from Codan. This acquisition, finalized in early May, has major implications for the company’s operational efficiency and capital management.
Historical Context and Company Position
Prior to this development, the solvency capital requirement for the newly acquired activities from Codan was determined using the standard formula associated with Solvency II. The transition to the Partial Internal Model recognizes the changed dynamics and operational capabilities of Alm. Brand A/S, allowing the company to optimize its capital requirements further.
Comparative Expectations
The FSA's approval is in line with earlier forecasts that suggested the company would experience a reduction of around DKK 0.5 billion in capital requirements. Such projections were previously noted in company announcements, reflecting a commitment to enhancing shareholder value and operational transparency.
Company Contact Information
For further inquiries regarding this announcement, Alm. Brand A/S encourages communication directed toward:
Investors and Equity Analysts
Mads Thinggaard
Head of Investor Relations & ESG
Mobile: 2025 5469
Press Inquiries
Mikkel Luplau Schmidt
Media and Press Officer
Mobile: 2052 3883
Frequently Asked Questions
What is the significance of the Partial Internal Model approval?
The approval allows Alm. Brand A/S to optimize its solvency capital, leading to potential savings and increased operational efficiency.
How much will Alm. Brand A/S save from this approval?
The company expects to reduce its solvency capital requirement by approximately DKK 0.6 billion.
What does the PIM cover?
The Partial Internal Model encompasses all of Alm. Brand's insurance activities, including those from the Codan acquisition.
When was the Codan acquisition completed?
The Codan acquisition was finalized on May 2, 2022.
Who can be contacted for more information?
For inquiries, investors can reach out to Mads Thinggaard, and press inquiries can be directed to Mikkel Luplau Schmidt.
