Q2 2025 ALM. Brand A/S Earnings Call Transcript
Key Points
- Alm Brand AS (OCSE:ALMB) reported a significant improvement in its technical result, increasing from DKK312 million last year to DKK520 million this quarter.
- The company achieved an impressive insurance revenue growth of 11% in personal lines, indicating a strong market share gain.
- Investment income was robust, with a profit of DKK102 million, driven by positive returns from the free portfolio.
- Synergies are materializing as planned, contributing to a 0.7 percentage point improvement in the underlying claims ratio and a 0.8 percentage point improvement in the cost ratio year-on-year.
- The company upgraded its guidance for the insurance service result in 2025 by DKK50 million, reflecting confidence in future performance.
- The combined ratio in personal lines increased to 81.6 from 80.2 last year, partly due to lower run-off gains and higher weather-related claims.
- Despite strong growth, the commercial lines segment faced a drag from repricing efforts, particularly in unprofitable standalone workers' compensation.
- The reinstatement premium related to the Mexico case was a financial drag, impacting the claims ratio.
- The expense ratio in commercial lines remained flat quarter-on-quarter, with no immediate tailwind from the strong premium growth.
- The guidance for the group profit excluding special costs remains cautious, with no significant increase beyond the run-off gains realized in the first half of the year.
Hello everyone and welcome to today's ALM. Brand Q2 2025 conference call. My name is Seb and I'll be your operator for the call today.
(Operator Instructions) I will now hand the floor to Rasmus Werner Nielsen, CEO, to begin. Please go ahead.
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Thank you. Good morning and thank you for joining us on our conference call. I am Rasmus Werner Nielsen. As usual, I have with me today our CFO, Andreas Ruben Madsen, and the head of our IR team, Mads Thinggaard. This morning we published our interim report for the second quarter. As usual, I will walk you through the operating highlights and then Andreas will comment on the financials.
Please turn to slide 2. I'm pleased with the overall financial performance in a satisfactory Q2, with good cost control leading to a significant drop in the expected ratio year-on-year, while the underlying loss ratio is strongly improving, helped by synergies and price adjustments. Organic growth of about 8% in Q2 is very
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