Slides
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Results 2025│Q2 1 April to 30 June 2025
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▪ Interim financial statements showing strong organic growth, effective cost control and a highly satisfactory investment result ▪ Cost focus contributed to decline in expense ratio and combined ratio ▪ Significantly improved underlying claims experience and major claims below the normal level ▪ Improvement in the underlying claims ratio is largely due to profitability initiatives and synergy gains, but also a more favourable stochastic outcome than in Q2 last year ▪ Synergies realised as expected and profitability-enhancing measures supporting the path to achieving 2025 financial targets 2 Q2 highlights Strong organic growth and favourable trend in underlying business
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▪ Insurance revenue increased by 8.3% to over DKK 2.9 billion, and the insurance service result grew significantly to DKK 520 million ▪ The increase in the insurance service result was driven by an improved claims experience and a lower expense ratio than in Q2 2024, supported by increased organic growth ▪ The investment result was highly satisfactory at DKK 102 million ▪ Gross claims were adversely affected by developments in the 2012 Mexico claim, as we made an additional DKK 400 million allocation, which is fully covered by reinsurance ▪ Other income and expenses are related to training and development costs as well as group costs and returns on the remaining mortgage deed and debt collection portfolio, the latter contributing nicely in Q2 2025 ▪ Special costs totalled DKK 55 million relating to the integration of Codan, realisation of synergies as well as separation costs 3 Financial highlights, Q2 Q2 2025 Q2 2024 Insurance revenue 2,950 2,725 Insurance service result 520 312 Investment result 102 65 Other income and expenses -26 -50 Profit/loss before special costs 596 327 Special costs -55 -53 Amortisation of intangible assets -84 -89 Discontinuing activities after tax 0 -89 Financial results DKKm Strong organic growth, premium adjustments and improved claims experience driving growth in insurance service result
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Major claims, AB Group 4 6.3 4.0 5.5 2.4 2.1 8.8 5.5 3.0 5.3 5.3 0 2 4 6 8 10 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Normal level: 7.0 Average: 4.8 %
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Major claims, Commercial Lines 5 11.2 6.4 10.3 3.8 3.5 16.6 10.3 4.2 8.7 8.7 0 2 4 6 8 10 12 14 16 18 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Normal level: 12.0 Average: 8.4 %
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Insurance operations 6
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7 Insurance service result ▪ The insurance service result amounted to DKK 520 million, generated on the back of strong premium growth, effective cost control, a moderate level of major claims and a lower underlying claims experience ▪ Strong improvement in Commercial Lines, while Personal Lines contributes most in the quarter ▪ The insurance service result for Personal Lines was DKK 286 million ▪ High premium growth of 11.0% ▪ Frequency of motor-related claims decreased in Q2, while motor-related claims repairs continued to be more expensive than in the year-earlier period… ▪ …...but the performance was also lifted considerably by profitability-enhancing measures that led to a year-on-year improvement in the undiscounted underlying claims ratio of about 3 percentage points ▪ Expense ratio dropped significantly to 17.0% from 18.8% in Q2 2024 ▪ The insurance service result for Commercial Lines was DKK 234 million ▪ Major claims level of 8.7% remained below the normal level, marking a significant improvement on Q2 2024, which had major claims above normal ▪ The lower underlying claims ratio was due to profitability-enhancing measures, synergies and a normalisation relative to Q2 2024; an undiscounted improvement of approx. 7.5 percentage points year on year when adjusting for a reinsurance reinstatement premium in Q2 2025 ▪ Expense ratio down to 16.3% from 17.1% in Q2 2024 Insurance service result (continuing activities) DKKm 276 203 202 191 286 36 197 238 146 234 312 400 440 337 520 2024 Q2 2024 Q3 2024 Q4 2025 Q1 2025 Q2 Personal Commercial Significantly higher Q2 insurance service result in Commercial Lines
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8 Insurance revenue ▪ Premium growth in Personal Lines accelerated to 11%, while growth in Commercial Lines improved to 5.3% ▪ Premium adjustments are driving much of the improvement, while partnerships generate extra momentum in Personal Lines ▪ Our partnerships with the Association of Local Banks and nationwide banks are developing strongly both regarding new customers as well as retention of existing customers ▪ Profitability-enhancing initiatives in workers’ compensation insurance led to cessation in Commercial Lines, which is continuing to dampen growth in Commercial Lines Double-digit growth in Personal Lines and stronger growth in Commercial Lines Growth in insurance revenue1 1) All quarters excluding discontinuing business
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9 Claims ratio ▪ Claims ratio improved by 4.9 percentage points ▪ Major claims were lower than the above-normal level in Q2 2024 ▪ Run-off gains were 1.4 percentage points lower than in Q2 2024, when Personal Lines recorded a high level of run-off gains ▪ Slightly higher expenses for weather-related claims, close to normal level for the second quarter of the year ▪ Reinstatement premium was 0.9 of a percentage point higher as a result of a reinstatement premium for reinsurance related to the upward adjustment of the Mexico claim ▪ Underlying claims ratio improved by 4.2 percentage points ▪ Improvements driven by premium adjustments, realised synergies and normalisation ▪ Undiscounted underlying claims ratio improved by 5.2 percentage points ▪ Discounting effect fell by 100 bps relative to Q2 2024 ▪ Backed by re-pricing, synergies and normalisation, there was a significant underlying improvement of 5.2 percentage points on Q2 2024 Significant improvement of undiscounted underlying claims ratio Development in underlying claims ratio Q2 2025 Q2 2024 Change Claims ratio 65.6 70.5 -4.9 Major claims, net of reinsurance -5.3 -8.8 3.5 Weather-related claims, net of reinsurance -1.4 -0.9 -0.5 Risk margin 0.1 0.1 -0.0 Run-off 1.9 3.3 -1.4 Reinstatement premium -0.9 0.0 -0.9 Underlying claims ratio 60.0 64.2 -4.2 Discounting +2.2 +3.2 -1.0 Other +0.0 +0.0 0.0 Undiscounted underlying claims ratio 62.2 67.4 -5.2
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10 Personal Lines ▪ Increase in claims experience relative to last year ▪ Run-off gains of 1.6% are 3.7 percentage points lower than in Q2 2024, when run-off gains were at a particularly high level ▪ Weather-related claims benefited from seasonally mild weather conditions in Q2 2025, but were about 1 percentage points higher year on year ▪ 2.6 percentage point improvement of the underlying claims ratio ▪ Expense ratio of 17.0% in Q2 2025, which was a decline from 18.8% in Q2 2024 due to the combination of the headcount reductions implemented in October 2024 and synergies ▪ Premium growth of 11.0% supported by profitability-enhancing measures had a positive effect on the expense ratio and underlying claims Strong development in underlying claims and lower expense ratio Combined ratio (continuing activities) Personal Lines
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11 Commercial Lines ▪ Claims experience improved by 13.3 percentage points, driven mainly by a decline in the undiscounted underlying claims ratio of approx. 7.5 percentage points ▪ Major claims were 7.9 percentage points lower than in Q2 2024, which saw a high level of major claims ▪ Run-off gains of 2.2% ▪ Falling interest rates had a negative impact on Commercial Lines due to lower contributions from discounting effects on workers’ compensation insurance ▪ Decline in expense ratio of 0.8 of a percentage point year on year, supported by synergies and the headcount reductions announced at end- October 2024 Strong development in underlying claims experience Combined ratio (continuing activities) Commercial Lines
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Financials 12
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13 Administration Claims processing IT & infrastructure Total 2025 targetRealised in 2024 Realised in 2025DKKm Synergies ▪ Synergies of DKK 151 million realised in Q2 ▪ Clear path to realising synergy targets in 2025 Status on synergies from Codan integration Q1 Q2 Q3 Q4 45 43 10 98 45 50 11 106 49 53 16 118 59 55 24 138 198 201 61 460 255 225 120 600 61 57 27 145 62 59 30 151 123 116 57 296
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▪ Overall, the investment result was highly satisfactory and better than expected for the quarter ▪ The Q2 investment return was supported in particular by the performance of the bond and share portfolios ▪ The financial markets were generally characterised by positive sentiment after a period of substantial uncertainty ▪ The return on the portfolio not allocated to hedging of provisions was DKK 104 million before costs etc. ▪ The return on the hedging portfolio etc. came to DKK 23 million before costs etc. ▪ Administrative expenses etc. amounted to DKK 10 million ▪ Interest expenses on tier 2 capital totalled DKK 15 million ▪ Sustained cautious investment strategy with risk appetite calibrated according to earnings from insurance operations. The group generally has a well-diversified, low-risk investment portfolio 14 Investment result Highly satisfactory Q2 investment result Investment return Q2 2025 DKKm Assets Return Return % Bonds etc. 17,543 161 0.8 Illiquid credit etc. 1,888 4 0.2 Shares 751 48 6.7 Properties 357 6 1.6 Total 20,539 219 1.0 Financial income and expenses on insurance and reinsurance contracts -92 Administrative expenses etc. -10 Tier 2 capital -15 Net investment return 102
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Outlook 15
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16 Guidance for 2025 Guidance Previous Guidance Combined ratio 84.5-86.5 85-87 Expense ratio 17 17 Synergies (DKKm) 600 600 Restructuring costs (DKKm) * 175 175 Amortisation of intangible assets (DKKm) 335 335 Insurance service result excl. run-offs DKK 1.6-1.8 billion Other income and expenses DKK -125 million Investment result DKK 250 million Profit before special costs and tax DKK 1.73-1.93 billion Sub-components included in guidance for 2025 Discontinuing activities after tax DKK 181 million * Includes DKK 25 million related to separation of divested business Lifted by DKK 50 million Unchanged Lifted by DKK 50 million Lifted by DKK 100 million Final figure realised in Q1
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17 Save the date ▪ Alm. Brand Group hosts a capital markets day on 18 November 2025 ▪ Launch of strategy and financial targets for the upcoming strategy period, 2026-2028 17
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Q & A
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19 Share profile ▪ Danish non-life insurer with a market share of ~15% ▪ Ambitions for profitable organic growth ▪ Focus on realising scale economies ▪ Manageable integration risk in terms of realisation of significant cost synergies ▪ Stable capital requirements ▪ High return on targeted capital ▪ Efficient capital allocation ▪ Excess capital distributed as dividend or used for share buybacks ▪ Substantial distribution capacity of 90% or more. Distribution policy prescribes a pay-out ratio of at least 80% 19
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20 Overview of significant synergy initiatives 2024 Q1 2025 AdminIT Claims Optimisation of sales channels Consolidation of IT infrastructure and shutting down legacy systems Procurement excellence Technology to detect insurance fraud Claims process excellence Q2 Q3 Q4 Q1 Q2 Q3 Q4 2026 Expansion of system to detect insurance fraud, including the addition of more areas to the existing system Use of live streaming and digital media in claims processing and recourse Utilisation of scale benefits and procurement networks Optimisation of organisation driven by process and system consolidation in step with IT infrastructure deployment Best practice focusing on cost- efficient sales channels DKK Other minor initiatives Run-rate, 2024: ~DKK 550m ~DKK 35m ~DKK 10m ~DKK 10m ~DKK 20m ~DKK 50m ~DKK 20m Run-rate, 2023: ~DKK 350m Expected run-rate, 2025: ~DKK 650m ~DKK 30m ~DKK 10m ~DKK 10m ~DKK 10m ~DKK 20m ~DKK 10m ~DKK 10m ~DKK 50m ~DKK 20m ~DKK 40m ~DKK 25m ~DKK 40m ~DKK 10m ~DKK 15m Ongoing consolidation and shutdown of systems Optimisation of organisation
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21 Total capital DKKm SCR ratio 194% Q2 2025 Q1 2025 Q4 2024 Q3 2024 Tier 1 unrestricted 3,726 3,322 3,958 4,341 Tier 1 restricted 397 397 397 397 Tier 2 capital 1,185 1,182 1,295 1,295 Tier 3 capital 0 0 0 0 Total capital for the group for solvency coverage purposes 5,308 4,901 5,650 6,033 Solvency capital requirement (SCR) 2,738 2,724 3,122 3,106 Total capital ratio 194% 180% 181% 194%
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22 SCR ratio Sensitivity analysis Limited sensitivity in the event of market movements Hedging of interest rate risk and currency risk Largest impact in the event of changes to mortgage bonds Full recalculation of SCR in the event of property and currency scenarios. Approximation of SCR in the event of equity scenarios 194% 198% 190% 200% 188% 196% 192% 188% 197% 185% 191% 194% 195% 193% +20% -20% +30% -30% +20% -20% +100bp -100 bp Covered +100bp Corporate +100bp Government +100bp +20% -20% 30 June 2025 Equity Equity Property Interest rate Spread Currency excl. EUR Solvency ratio sensitivities (%)
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23 23 Denmark 61.0% Nordics 5.3% Europe 25.1% North America 8.2% Other 0.4% -10% -8% -6% -4% -2% 0% 2% 4% 6% Denmark Nordics Europe North America Other Development in investor base Geographical movements in ownership interest 31 December 2024 - 30 June 2025 Breakdown of free float Investor base
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Market share – Q2 2024 * Before divestment of Energy & Marine business 24 Source: Insurance & Pension Denmark 23.8% 15.8% 15.2% 7.7% 5.4% 5.1% 4.7% 4.4% 3.7% 14.1% Market share Tryg Alm. Brand Group* Topdanmark Gjensidige Forsikring If Sygeforsikringen Danmark LB Forsikring GF Forsikring A/S Danica Others
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25 Investor Relations - contact details Mads Thinggaard Head of Investor Relations & ESG +45 2025 5469 abmati@almbrand.dk https://investorrelations.almbrand.dk/ Financial calendar Interim report, Q3 2025 29 October 2025 Capital markets day 18 November 2025
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26 Disclaimer FORWARD LOOKING STATEMENTS The statements made in this presentation are based on current expectations, estimates and projections made by management. All statements about future financial performance are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by the statements. All statements about future financial performance made in this presentation are solely based on information k nown at the time of the preparation of the last published financial report, and the company assumes no obligation to update these statements, whether as a result of new information, future events, or otherwise.