Alm. Brand Group Delivers Strong Q4 Results with Promising Outlook
Impressive Performance in Q4 2024
Alm. Brand Group demonstrated a highly satisfactory performance in the fourth quarter of 2024, showcasing resilience and growth across its insurance services. The company achieved a notable profit of DKK 440 million, surpassing the DKK 287 million recorded in Q4 2023. This remarkable achievement resulted in a combined ratio of 84.5, indicating improved efficiency compared to the previous year’s ratio of 89.3. Factors contributing to this success included favorable developments within both Personal and Commercial Lines insurance.
Growth in Insurance Revenue
Continuing its upward trend, Alm. Brand reported a robust insurance revenue growth of 6.2%, totalizing DKK 2,845 million. The growth in personal lines was particularly strong, with premiums rising by 7.2%. Commercial lines also performed well, with a 5.1% increase in premiums. Such sustained growth reflects the company’s strategic efforts to capture market share and enhance customer satisfaction.
Improved Operational Metrics
In terms of claims management, the underlying claims ratio exhibited significant improvement, falling by 1.9 percentage points to 63.8%. This decline was mainly due to successful profitability-enhancing measures implemented in Personal Lines. Furthermore, Alm. Brand's expense ratio decreased to 18.0 from 19.0 in the previous year, signifying effective cost management and operational efficiency.
Positive Investment Results
Despite a challenging investment environment, Alm. Brand managed to achieve a satisfactory investment result of DKK 74 million in Q4, although this was lower than the DKK 140 million obtained in the same quarter of 2023. The company's focus remained steady on delivering value to shareholders amidst market fluctuations.
Full-Year Overview
For the entire year, Alm. Brand reported strong figures, with an insurance service result reaching DKK 1,443 million, a significant increase from DKK 1,215 million in 2023. The combined ratio for the year improved to 87.0, a testament to the company's solid performance and strategic direction. This outcome surpassed the previously announced guidance for the year and was bolstered by a reduced level of major claims.
Future Expectations
Looking ahead, Alm. Brand Group is optimistic about its growth trajectory, projecting an insurance service result between DKK 1.5 billion and DKK 1.7 billion for 2025. The company aims to achieve an expense ratio around 17% and a combined ratio between 85.5 and 87.5, demonstrating its commitment to long-term sustainability and operational excellence. This aligns well with the targets established during their merger with Codan.
Shareholder Value and New Programs
The Board of Directors has proposed an ordinary dividend of DKK 0.6 per share for the 2024 financial year. Additionally, the company is initiating a new DKK 100 million share buyback program tied to its 2024 profits, reflecting a payout ratio of 96% of the adjusted profit after tax. Alm. Brand is also planning to distribute DKK 1.6 billion from the divestment of its Energi & Marine business through share buybacks upon closing the transaction.
Management’s Perspective
CEO Rasmus Werner Nielsen expressed satisfaction with the overall performance in 2024, highlighting the necessity for dependable insurance during challenging times. He noted that Alm. Brand helped process claims for over 430,000 customers, pointing out that motor-related and travel insurance claims drove significant inquiries. The year ended strongly, emphasizing the robust nature of the company as it moves into 2025 well-equipped to meet its targets.
Conference Call and Accessibility
Investors and analysts are encouraged to join the upcoming conference call to discuss these results in detail. Scheduled for today, the call will provide additional insights into Alm. Brand's performance and future strategies. For those interested in participating, United Kingdom, USA, and Denmark have dedicated dial-in numbers available.
Frequently Asked Questions
What was the profit for Alm. Brand in Q4 2024?
Alm. Brand reported a profit of DKK 440 million in Q4 2024.
How much did the insurance revenue grow in Q4 2024?
The insurance revenue grew by 6.2%, totaling DKK 2,845 million.
What are the projections for Alm. Brand in 2025?
Alm. Brand expects an insurance service result between DKK 1.5 billion and DKK 1.7 billion for 2025.
What dividend does Alm. Brand propose for shareholders?
The Board of Directors recommends an ordinary dividend of DKK 0.6 per share for the 2024 financial year.
Who should be contacted for investor inquiries?
Investors can contact Mads Thinggaard, Head of IR, for inquiries regarding the announcement.
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