ALM Brand raises profit guidance by DKK 100 million after strong Q2

Investing.com -- ALM Brand on Wednesday lifted its pre-tax profit guidance by DKK 100 million following strong second quarter results, driven by solid insurance performance and business improvements.

The company increased its insurance service result guidance by DKK 50 million to DKK 1.6-1.8 billion excluding second-half runoffs, while also raising its investment result guidance by DKK 50 million to DKK 250 million.

ALM Brand reported an insurance service profit of DKK 520 million in Q2 2025, up from DKK 312 million in the same period last year, marking its highest result to date.

This performance was fueled by premium growth, improved claims experience, and a better expense ratio.

Insurance revenue grew 8% to DKK 2,950 million, with Personal Lines showing particularly strong premium growth of 11%.

The undiscounted underlying claims experience improved by 5.2 percentage points to 62.2, reflecting the success of profitability-enhancing measures and synergy gains.

The combined ratio improved to 82.3 from 88.5 previously, driven by fewer major claims, better underlying claims experience, and lower expenses.

The expense ratio saw significant improvement, dropping to 16.7 from 18.0, in line with the group’s cost reduction objectives.

Synergy initiatives are progressing as planned, generating a positive accounting effect of DKK 151 million in Q2 2025.

The company also reported a strong investment result of DKK 102 million, up from DKK 65 million, with positive contributions from both shares and bonds.

CEO Rasmus Werner Nielsen described the quarter as "satisfactory," noting that the company assisted customers with building, contents and motor claims while providing insurance advice to more than 250,000 customers during a period of uncertainty.

He highlighted the company’s success in attracting new customers and progress toward creating a more efficient organization to strengthen competitiveness.

Despite relatively mild weather conditions in Q2, Nielsen emphasized the company’s continued efforts to help customers protect against severe weather in the future, including a new initiative to assist customers previously affected by weather-related claims with climate-proofing their houses, supported by Alm. Brand Foreningen 1792.

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