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Introduction & Market Context
Alm Brand Group, a leading Danish non-life insurer with approximately 15% market share, presented its Q1 2025 financial results on May 1, 2025. The company reported satisfactory performance with sustained strong organic growth, good cost control, and a satisfactory investment result. The quarter was marked by lower expense ratios and weather-related claims compared to Q1 2024, contributing to improved operational performance.
The company’s stock (CPH:ALMB) closed at DKK 15.62 on April 30, 2025, showing a 1.3% increase ahead of the earnings announcement.
Quarterly Performance Highlights
Alm Brand reported an increase in insurance revenue of 5.2% to DKK 2.86 billion, while the insurance service result grew to DKK 337 million from DKK 291 million in Q1 2024. This improvement was primarily driven by a lower expense ratio compared to the same period last year.
As shown in the following financial results table, the investment result was DKK 96 million, down from DKK 167 million in Q1 2024, while profit before special costs decreased to DKK 387 million from DKK 430 million:
The company completed the divestment of its Energy & Marine business in early March 2025, contributing significantly to the profit on discontinuing activities, which increased to DKK 181 million from just DKK 3 million in Q1 2024.
Major claims for the quarter stood at 5.3%, below the normal level of 7.0%, as illustrated in the following chart:
Detailed Financial Analysis
The insurance service result of DKK 337 million was generated on the back of strong growth in Personal Lines, cost reductions, a moderate level of major claims, and milder weather conditions. Personal Lines contributed DKK 191 million to this result, while Commercial Lines added DKK 146 million.
The following chart shows the insurance service result breakdown by business line over recent quarters:
Premium growth remained strong, particularly in Personal Lines which saw an 8.2% increase. Commercial Lines growth was affected by reaction patterns related to profitability-enhancing initiatives, especially in workers’ compensation insurance.
The claims ratio deteriorated slightly by 0.5 percentage points to 69.6%, with run-offs 1.3 percentage points higher than in Q1 2024. However, the undiscounted underlying claims ratio improved by 190 basis points to 65.2%, as shown in the following table:
Expense ratios improved significantly across both business segments. In Personal Lines, the expense ratio fell to 20.3% from 22.5% in Q1 2024, while in Commercial Lines, it decreased to 16.7% from 17.8%.
The investment portfolio delivered a satisfactory result of DKK 96 million for the quarter. The bond portfolio and illiquid credit were the main contributors to the positive return, as illustrated in the following investment return breakdown:
Strategic Initiatives
Alm Brand continues to make progress on the integration of Codan, with synergy realization on track to meet 2025 targets. In Q1 2025, the company realized synergies of DKK 145 million, with the 2024 end-of-year run-rate at DKK 550 million. The company maintains its target of achieving DKK 600 million in synergies by the end of 2025.
The following table shows the breakdown of realized and targeted synergies across different operational areas:
The company’s capital position remains strong, with a total capital ratio of 180% as of Q1 2025. The solvency capital requirement (SCR) stood at DKK 2,724 million, supported by a total capital of DKK 4,901 million.
Forward-Looking Statements
Alm Brand maintained its guidance for 2025, projecting an insurance service result excluding run-offs of DKK 1.55-1.75 billion and a combined ratio of 85-87%. The company expects an investment result of DKK 200 million and a profit before special costs and tax of DKK 1.63-1.83 billion.
The following table provides a comprehensive overview of the company’s 2025 guidance:
The company announced a capital market day scheduled for November 18, 2025, where it plans to launch its strategy and financial targets for the 2026-2028 period.
Alm Brand’s management expressed confidence in the company’s ability to continue delivering profitable growth while realizing scale economies and completing the Codan integration. With a stable capital position and high return on targeted capital, the company aims to maintain its efficient capital allocation policy, with excess capital distributed as dividends or used for share buybacks.
Full presentation:
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