ALM. Brand A/S Q1 2019 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Asbj°rn Nicholas M°rk - Danske Bank Markets Equity Research - Analyst : From my side, a couple of questions. First, if we go to the VA component in this quarter, could you just touch a little bit upon, what have you actually applied? Maybe I missed it in the presentation, what have you actually applied here at Q1 versus your expectation at the annual report of the 10 to 13 basis points reduction?

Question: Asbj°rn Nicholas M°rk - Danske Bank Markets Equity Research - Analyst : But still the outcome, the actual outcome from the adjustment was I guess adverse, true to your expectations at the annual report.

Question: Asbj°rn Nicholas M°rk - Danske Bank Markets Equity Research - Analyst : Just to be straight -- I mean so there's no spillover into Q2 from sort of the methodology changes, right?

Question: Asbj°rn Nicholas M°rk - Danske Bank Markets Equity Research - Analyst : All right. Fair enough. On your Non-life, on your premiums, the 1.6% growth and the quite low growth in private as you also touched upon, are you losing market shares? And if that's the case, to who? And then you mentioned some initiatives that are -- make you quite comfortable for the next couple of quarter. Could you just maybe give us some examples on what kind of initiatives you mean?

Question: Asbj°rn Nicholas M°rk - Danske Bank Markets Equity Research - Analyst : But the initiatives, you mentioned, that is mainly, it sounds, the repricing measures that you did in the second half of 18 that will have an impact in -- from here and onwards. Is that correctly understood?

Question: Asbj°rn Nicholas M°rk - Danske Bank Markets Equity Research - Analyst : Okay. Then if I turn to the bank, basically a couple of questions. But first on the top line, it seems to be somewhat under pressure in Q1. So is that margin pressure? Or is there -- is it because you have a growth that is very back-end loaded in the quarter that will benefit Q2 and onwards? Or how should we look in that? And then if I look at the other lines in the bank for instance, your own portfolio, still, of course, quite negative in Q1. You mentioned in the presentation that it's because of declining rates but I mean the loan portfolio has been quite negative for quite a while and you also mentioned the liquidity as an issue. So what should we expect from the loan portfolio looking ahead? I guess it will be quite negative for next many quarters to come.

Question: Asbj°rn Nicholas M°rk - Danske Bank Markets Equity Research - Analyst : But then if you look at your guidance for the bank for the full year, what is sort of your loan loss provision expectation for the full year, given that the guidance that you gave for the pretax?

Question: Asbj°rn Nicholas M°rk - Danske Bank Markets Equity Research - Analyst : Okay so basically when we -- the DKK 20 million that you have in loan loss reversals in Q1, that's a pretty positive surprise versus your guidance set at full year, correct?

Question: Asbj°rn Nicholas M°rk - Danske Bank Markets Equity Research - Analyst : Okay. Fair enough. On your capital model, final question basically, how should we look at the, first of all, on the risk and profit margin in Life? Is there more to come here? Looking ahead, I mean are you well preserved to -- is that a hidden buffer? And then on MREL, should we expect that looking ahead, the next couple of years, when MREL is implemented that you'll have the 0 net impact because of the facility that you have in the holding company? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 07, 2019 / 8:00AM, ALMB.CO - Q1 2019 ALM. Brand A/S Earnings Call

Question: Asbj°rn Nicholas M°rk - Danske Bank Markets Equity Research - Analyst : Yes. But that means that when you actually use the facility, it won't have an impact on the DKK 161 million excess capital.