ALM. Brand A/S Q1 2020 Earnings Call Transcript

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

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : Couple of questions from my side. First, on Non-life. Your underlying combined ratio deteriorated 140 basis points year-over-year. And you mentioned the reported discounting is largely flat. The impact is nonexisting, so to speak, in year-over-year. And you said that COVID-19 is also very manageable, the impact on your Non-life. So what's actually happening here with the 140 bps underlying deterioration? Could you give us a little bit of a flavor on that?

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : But I guess, your travel insurance that you mentioned as one of the issues. I guess, that would be offset by the motor, et cetera, meaning that is included in the largely neutral impact that you have said, COVID-19 had, correct?

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : Okay. Fair enough. The travel insurance claims that you have booked in Q1, does that include people that have filed for claim for Easter, but have done that in March?

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : Okay. And the DKK 20 million reinsurance loan coverage that you have, does that cover the entire period? Or how does that work?

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : So a lot of other summer travel claims, if the borders remain closed, that will not be covered by the reinsurance?

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : And that's also DKK 20 million?

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : Okay. Okay. All right. Then you mentioned motor TPL, you say that the average claim is rising. Could you elaborate a bit on what is it actually that you're seeing here? 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 14, 2020 / 8:00AM, ALMB.CO - Q1 2020 ALM. Brand A/S Earnings Call

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : Okay. Fair enough. If I then may turn to the bank, the DKK 30 million charge you make on COVID-19, how have you estimated this?

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : And that is related to the central bank, the scenarios for the Danish economy in 2020.

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : Sure, sure. And then actually a twofold question, but on the bank's operating side as well. I mean, you -- if I take the pre-provision including the impact from old portfolio, you're still loss making. I know that you say that the trading was impacted negatively in Q1. But let's just say that it's more or less plus minus 0. If you look at the operations before loan losses. How -- I mean, should we expect this to improve in the next couple of quarters? Or are you expecting reversals of loan losses to sort of drive you to the DKK 80 million profit for the full year?

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : Yes. I mean, it was just because then your guidance -- you lowered your guidance by DKK 20 million for the full year, but you said that the impact from the bank from COVID-19 was DKK 45 million. So I guess, inclusively something is doing better?

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : So you -- the DKK 80 million is assuming 0 loan losses for the full year?

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : So we should expect -- okay, okay, fair enough. Okay. So when you gave -- had the guidance of DKK 100 million before, was that then implicitly assuming reversals? Or was it also 0 losses?

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : Okay. So it's really the trading effects.

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : Sure. That was, I guess, in your plans also...

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : Okay. Fair enough. Fair enough. Okay. And then my final question on a capital model, excess capital, how should we look at that?

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : On a group level? 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 14, 2020 / 8:00AM, ALMB.CO - Q1 2020 ALM. Brand A/S Earnings Call

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : Yes, but the capital model...

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : So you're not going to be as loyal or whatever you are going to call to the excess capital model any more. So if there's excess capital that will not necessarily be paid out to shareholders in the short term.

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : But why are you not disclosing capital model anymore?

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : Okay. But then I guess my question is really. So the general view on how you look at your capital and your requirement. That will still be the same more or less? Or you're going to look at the regulatory requirement? Or I mean, it's going to be your own requirement at the levels of some...