Slides
Page 1
SEB Nordic Seminar 2026
Page 2
Unfolding the scale potential
Page 3
3 • New management and reorganisation of Alm. Brand • Divestments of Alm. Brand Bank and Alm. Brand Life & Pension • Acquisition of Codan Denmark • Utilise strong position as pure-play non-life insurance company in the attractive Danish market • Unfold scale potential and improve customer engagement, insurance capabilities and operations • Successful integration and creation of one harmonised platform • Significant synergies achieved in line with expectations • Divestment of Energy & Marine business Increased scale from integration of Codan Denmark Unfolding the scale potential towards 2028 From conglomerate to pure-play insurance company We stand stronger than ever after our transformation 3 2025 2028 Increase insurance service result Alm. Brand Group – a leading non-life insurance company in Denmark Pure-play non-life insurance leader
Page 4
4 Unfolding the scale potential – financial targets for 2028 2025 target: minimum 80% 80% Payout minimum: Unchanged Return on own funds: New target 40% Earnings per share CAGR1: New target 10% Return & capital P&L effects 2025 target: 84.5% 82% Combined ratio: ~2.5 pp 2028 targets 2025 target: 17% 16% Expense ratio: ~1 pp 2025 target: DKK 1,850m 2,350m Insurance service result: DKK ~500m 1. Operating EPS is adjusted for amortisations on intangible assets of DKK 335m per year; Effective tax rate estimated to be ~28% in the period 2025-2028; Based on average shares between years with buybacks deducted
Page 5
5 Alm. Brand Group 2025 target Alm. Brand Group 2028 target Large potential to harvest scale benefits towards 2028 5 Scale potential Rate of utilisation Codan integration completed and our synergy targets reached – we will now grow our business and build a foundation for the future by unfolding our strong scale potential 2028 strategy: Unfolding the scale potential Gross impact of ~650m …which our 2028 strategy will focus on realising Insurance service result, DKKm We have a large scale potential… ~125 ~350 ~175 ~150 ~1,850 ~2,350 Operational platform Insurance capabilitiesCustomer engagement Other effects and investments
Page 6
6 Operational platform to be competitive in terms of expenses Customer engagement to increase retention and grow business with profitable customers Insurance capabilities to be market-leading in terms of claims ratio 2028 strategy – unfolding the scale potential Note: Target = Insurance service result gross impact Simplified core Process excellence Target: DKK ~175m Customer journey end-to-end Sales & service Target: DKK ~125m Foundation ownership will support Alm. Brand Group with contributions to improve our customer experience, customer loyalty and prevention Unfolding the scale potential AI to improve insurance capabilities Data-driven UW & portfolio optimisation Target: DKK ~350m Insights-driven claims handling People and leadership attractive career opportunities and strong cross-functional collaboration
Page 7
7 Our new strategy will lead to significant improvements in strategic KPIs 1. Based on Q2 2025; 2. Based on Personal Lines customers, agriculture and SMEs; 3. Based on Q3 2025 7 CO2 reductionEmployee engagement Customer satisfaction Straight-Through- Processing (STP) ~10% Share of full- service customers2 2028 2025 73 51% 79 - 50%77 55% 80 6% Reduction in CO2 emissions per avg. building claim Customer satisfaction on a scale from 0 to 100 Employee engagement on a scale from 0 to 100 Share of full-service customers (customers with 3+ products) STP is digitally reported claims with no manual processes 1 3
Page 8
8 We will launch a new loyalty programme in 2026 DKK ~100m Alm. Brand Group will use around DKK 100m of the contribution in 2026 to launch a new loyalty programme Specifics of the new programme will be communicated in first half of 2026 Will benefit +100,000 loyal Personal Lines customers Impact across all Personal Lines brands 8
Page 9
Financials
Page 10
10 Attractive financial profile with further potential Large potential to further grow insurance service result Robust capital base with new PIM model and solvency ratio target Attractive operating EPS growth driven by ambitious 2028 strategy Robust capital EPS growthStrong ISR potential
Page 11
11 Improved combined ratio through reduced claims and expense ratios 1. Based on premium income; 2. 2022 proforma results include the Energy & Marine business; 3. Targets for the combined ratio and the insurance service result include run-offs Claims ratio, % 2022-2028 Expense ratio, % 2022-2028 20222 2023 2024 2025 2026 2027 2028 19.3% 19.0% 18.3% 17.0% ~16% 20222 2023 2024 2025 2026 2027 20283 Combined ratio, % 2022-2028 20222 2023 2024 2025 2026 2027 20283 91.1% 88.4% 87.0% 84.5% ~82% 71.9% 69.4% 68.7% 67.5% ~66% -2.5 pp -1.0 pp -1.5 pp 2% run-off gains p.a.1 Combined ratio improvements through claims and expenses • We will reduce the claims ratio by strengthening our insurance capabilities • We will improve the expense ratio by simplifying and improving the efficiency of our business
Page 12
12 Implementation of PIM reduces capital requirement and enables additional buybacks Note: PIM covers primary non-life insurance risks and health excluding market, counterparty and operational risks, which are still calculated using the standard formula PIM reduces solvency requirement by DKK ~600m… Q2 2025 Q3 2025 2,738 2,085 EPS growth • Capital structure with PIM expansion contributes to a favourable EPS growth Share buyback of DKK ~600m • We use funds from the PIM expansion for share buybacks to strengthen the creation of shareholder value Capital structure • The PIM expansion reduces the tier 2 capacity … enabling further share buybacks and EPS growth Solvency requirement, DKKm
Page 13
13 Capital optimisation with strong solvency ratio Note: Existing debt issuances: Tier 2 bond of DKK 900m with first call in October 2026 and Restricted Tier 1 bond of DKK 400m with first call in April 2027; 1. Illustrative example based on solvency ratio of 180% with new PIM and expected future capital structure. Unrestricted Tier 1 is excluding ordinary dividend payments Stable composition of total capital for solvency coverage purposes • Restricted tier 1 capital ~10% of total tier 1 capital • Tier 2 ~40-50% of solvency capital requirement Conservative capital structure with low gearing • Sustained high and stable share of unrestricted tier 1 capital~900 ~300 ~2,600 Total capital for solvency coverage1 ~3,800 Solvency ratio target of 180% after release of excess capital, DKKm Solvency capital requirement ~2,100 Solvency ratio: ~180% Unrestricted tier 1 Restricted tier 1 Tier 2 Illustrative example of expected future capital structure New target of 180% (previously 170%)
Page 14
14 Continuous strong payout capacity… 2020 2021 2022 2023 2024 2025 2026 2027 2028 75% 77% 98% 98% 96% ≥80% ≥80% ≥80% ≥80% “ High payout capacity, stable annual increase in dividends and share buybacks for remaining distributions, including extraordinary distributions “ Actual and target payout ratio ≥80% Payout ratio
Page 15
15 …driven by strong earnings growth and capital reduction (illustrative) Note: Effective tax rate estimated to be ~28% in the period 2025-2028; 1. Net profit adjusted for amortisation of intangible assets of DKK 335m Return of own funds, % 80 82 84 86 88 90 92 94 96 0 5 10 15 20 25 30 35 40 45 50 2025 2026 2027 2028 ~30% ~40% Payout capacity RoOF retained for growth RoOF for distribution ~95% ~93% Payout capacity, % Improved RoOF will lead to a higher payout capacity • Capital management is a key factor in optimising shareholder returns • 2 pp of RoOF target of 40% is expected to be retained for growth • 38 pp of RoOF target of 40% could be distributed in steady state Return on own funds (RoOF) Net profit1 Own funds =
Page 16
16 Strong operating EPS growth driven by ambitious 2028 strategy 1. Adjusted for amortisations on intangible assets of DKK 335m per year; Effective tax rate estimated to be ~28% in the period 2025-2028; Based on average shares between years with buybacks deducted Operating EPS1, DKK 2025-2028 ~10% CAGR 2025 Customer engagement Insurance capabilities Operational platform Other effects and investments SBB effect 2028 Strong foundation for increased EPS growth • Combination of higher profit and share buybacks will strengthen earnings per share towards 2028 • Operating EPS growth mainly driven by our 2028 strategic initiatives Steadily increasing DPS on top of share buybacks towards 2028 = effect on EPS CAGR ~2 pp ~5 pp ~2 pp ~2 pp ~3 pp
Page 17
17 Integration of Codan finalised with synergies realised according to plan All synergy targets met EPS CAGR of ~10% High payout capacity Concluding remarks Note: Figures are in DKKm Future scale potential to be unfolded towards 2028 through new ambitious strategy Strong financial profile with continuously growing earnings and attractive payout capacity Pure-play non-life insurance company in the attractive Danish market One platform in one country ~500~1,850 ~2,350 2025 target 2028 target Significant scale potential 111 262 460 2022 2023 2024 2025 ~600 Attractive financial profile
Page 18
Q3 2025 (Appendix)
Page 19
▪ Satisfactory quarterly results characterised by strong organic growth and good cost control ▪ Guidance for the insurance service result lifted by DKK 100 million and the investment result lifted by DKK 50 million ▪ Cost focus contributes to a decline in the expense ratio (15.8) and combined ratio (82.2) compared to Q3 last year ▪ Significant improvement in the undiscounted underlying claims ratio of 3.2 percentage points ▪ The improvement in the underlying claims ratio is largely due to profitability initiatives and synergy gains ▪ Synergies realised as expected and profitability-enhancing measures supporting the path to achieving 2025 financial targets 19 Q3 highlights Continued strong growth and favourable development in underlying business
Page 20
▪ Insurance revenue increased by 7.5% to DKK 3.0 billion, and the insurance service result grew to DKK 535 million ▪ The increase in the insurance service result was driven by an improved underlying claims experience and a lower expense ratio than in Q3 2024 and was further supported by a strong premium growth ▪ Realised level of major claims and weather-related claims a bit higher than third quarter last year ▪ The investment result was satisfactory at DKK 66 million ▪ Other income and expenses came to a net loss of DKK 28 million, composed of training and development expenses and group expenses and return on the remaining mortgage deed and debt collection portfolio ▪ Special costs totalled DKK 37 million relating to the integration of Codan, realisation of synergies and separation expenses 20 Financial highlights, Q3 Q3 2025 Q3 2024 Insurance revenue 3,006 2,796 Insurance service result 535 400 Investment result 66 133 Other income and expenses -28 -25 Profit/loss before special costs 573 508 Special costs -37 -48 Amortisation of intangible assets -84 -84 Discontinuing activities after tax 0 48 Financial results DKKm Strong premium growth, improved claims experience and lower costs contributed to a combined ratio of 82.2
Page 21
21 Claims ratio ▪ Claims ratio improved by 2.2 percentage points ▪ Major claims were 0.8 of a percentage point higher than in Q3 2024 ▪ Weather-related claims expenses were slightly higher than a normal Q3 (3,5%) and slightly higher than Q3 2024 ▪ Run-off gains came to a total of 1.3%, which is within the range of what can be expected from one quarter to the next ▪ Effect from risk adjustment +1.6%, primarily due to a one-off effect from the expansion of the Partial Internal Model ▪ Underlying claims ratio improved by 2.6 percentage points ▪ Improvements driven by premium adjustments and synergies ▪ Undiscounted underlying claims ratio improved by 3.2 percentage points ▪ Discounting effect declined by 0.6 of a percentage point Strong improvement in undiscounted underlying claims ratio Development in underlying claims ratio Q3 2025 Q3 2024 Change Claims ratio 66.4 68.6 -2.2 Major claims, net of reinsurance -6.3 -5.5 -0.8 Weather-related claims, net of reinsurance -3.8 -3.5 -0.3 Change in risk adjustment 1.6 -0.1 1.7 Run-off 1.3 2.3 -1.0 Reinstatement premium 0.0 0.0 0.0 Underlying claims ratio 59.2 61.8 -2.6 Discounting +2.2 +2.8 -0.6 Other +0.0 +0.0 0.0 Undiscounted underlying claims ratio 61.4 64.6 -3.2
Page 22
22 Guidance for 2025 Guidance Previous guidance Combined ratio 84.5-85.5 84.5-86.5 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 in Q4 DKK 1.75-1.85 billion Other income and expenses DKK -125 million Investment result DKK 300 million Profit before special costs and tax DKK 1.93-2.03 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 100 million and guidance range narrowed to DKK 100 million Unchanged Lifted by DKK 50 million Lifted by DKK 150 million Final figure realised in Q1
Page 23
23 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 known 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.