Preliminary Q4 2025 ALM. Brand A/S Earnings Call Transcript
Key Points
- Alm Brand AS (OCSE:ALMB) reported a significant increase in insurance service results, reaching DKK1.91 billion, up from DKK1.44 billion the previous year.
- The company achieved a strong growth of 9.7% in Personal Lines for 2025, with a quarterly growth rate of almost 10%.
- Cost efficiency improved, with the cost percentage reduced to 17% in 2025, a 1.3 percentage point reduction from 2024.
- The proposed dividend of DKK0.66 per share and total ordinary buybacks of DKK500 million represent a record high distribution, with a payout ratio of 98% for 2025.
- Alm Brand AS (OCSE:ALMB) successfully realized synergies from the Codan acquisition, exceeding the target with a run rate of DKK650 million by the end of 2025.
- Commercial Lines experienced a slight negative growth due to volatility in repricing for large corporate customers.
- The insurance service result for Commercial Lines decreased to DKK207 million from DKK238 million in Q4 of the previous year, driven by major claims doubling to 8%.
- A runoff loss of 2.8 percentage points in Commercial Lines negatively impacted the claims ratio.
- The company anticipates a dissipation of the structural support from repricing in 2026, potentially affecting premium growth.
- The arbitration case regarding the valuation of divestment could pose a financial risk, although the company doubts it will have a significant impact.
Hello, everyone, and thank you for joining us today for the Alm. Brand Q4 2025 results call. My name is [Sami] and I will coordinate your call today. (Operator Instructions) I'll now hand over to your host, Rasmus Werner Nielsen, CEO, to begin. Please go ahead, Rasmus.
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Thank you. Good morning and thank you for joining us on our conference call. 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 fourth quarter, and as usual, I will walk you through the operating highlights, and then Andreas will comment on the financials.
Let us move to slide 2. Overall, 2025 ended better than expected with an insurance service result of DKK1.91 billion, significantly up from DKK1.44 billion last year. Large claims of 5.2% and weather-related claims to 3.2% in '25 were both below the new normal levels we expected, while the undiscounted underlying loss ratio improved by 3.1
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