Q2 2024 ALM. Brand A/S Earnings Call Transcript
Key Points
- Alm Brand AS (FRA:1AM) reported satisfactory premium growth in personal lines, achieving a 7.3% year-on-year increase, indicating strong market share gains.
- The company announced a new share buyback program of DKK150 million, reflecting a strong capital position and commitment to returning capital to shareholders.
- Synergies from recent initiatives have reduced the underlying loss ratio by more than 1 percentage point year-on-year, demonstrating effective cost management.
- Investment income in Q2 was a profit of DKK65 million, primarily from the fee portfolio, indicating a stable investment performance.
- The divestment of the energy and marine business is expected to free up capital and management time, allowing a focus on the Danish market and reducing volatility in large claims.
- Alm Brand AS (FRA:1AM) faced headwinds from large claims and increasing motor claims in the Danish market, necessitating further profitability initiatives.
- The insurance service result for continuing business decreased to DKK312 million from DKK425 million in Q2 last year, partly due to less favorable claims experience.
- Discontinued business made a loss after tax of DKK89 million in Q2, primarily due to adverse developments in old claims related to offshore wind projects.
- The combined ratio for commercial lines increased to 97.3 in Q2, which is considered unacceptable in the long run, driven by high large claims and lower run-off gains.
- There is a need for further price adjustments in both personal and commercial lines to address rising average repair costs and maintain profitability.
Good morning or good afternoon, and welcome to the ALM Brand Q2 2024 full earnings call. My name is Adam, and I'll be your operator today. (Operator Instructions) So I now hand over to CEO, Rasmus Werner Nielsen to begin.
So Rasmus, please go ahead.
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Good morning and welcome to ALM Brand Group second quarter of '24 conference call. With me today, as usual, I have our CFO, Andreas Madsen, and our Head of IR, Mads Thinggaard. This morning, we published our interim report for the second quarter. I will walk you through the operating highlights as weather or divestment, our energy, and marine business after July 1. In the end, Andreas will comment on the financials.
All our view results for Q2 as acceptable, given the headwind we have on large claims and increasing motor claims in the Danish market in general. And just to be clear, the development on motor claims does call for additional profitability messages from our side. On a positive note, I'm very
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