ALM. Brand A/S Q2 2022 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 : A couple of questions from my side. First, relating to your guidance, basically trying to understand, first, the DKK 100 million lift to the traditional Alm. Brand, is it fair to assume that, that is the DKK 27 million of runoff, it's around DKK 50 million of the DKK 110 million of synergies that relates to Alm. Brand, the discounting impact, let's call it, DKK 10 million and then, of course, [benign] large weather? So basically, the underlying, largely unchanged for the traditional Alm. Brand. And then on your Codan guidance, the DKK 225 million, is it fair to assume that there's around DKK 60 million of synergies in that number and that the DKK 75 million of fire claims that you had in Q3 so far is sort of an addition that hits Codan Denmark in addition to normalized large claims? So the underlying guidance for Codan Denmark would have been something like DKK 240 million. Is it a fair assumption?

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : Okay. So basically, so you say DKK 40 million to DKK 45 million. So basically, if you haven't -- if hadn't had these synergies and you hadn't had the fire, Codan -- your Codan guidance would have been something like DKK 200 million, DKK 210 million for the full year?

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : Okay. That's very helpful. Then a question on your underlying combined ratio in Private, which deteriorated quite a lot both in Alm. Brand traditional, 450 basis points, but I also see quite a deterioration in Codan Denmark and, of course, on a pro forma level for the group. Just trying to understand, you mentioned motor, you mentioned building, I guess travel has an impact here as well. But what is it really that is sort of going on here on the underlying in Q2?

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : All right. That's helpful. But just mentioning the larger claims and then, of course, the -- and general claims inflation you're seeing and then the repricing that you're pulling through now, could you then quantify what kind of repricing measures you're doing? I guess there's a very limited effect from this in 2022, but maybe you can guide a little bit on what we should expect for '23 from this.

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : Okay. But is that -- just a final question from my side really to this. Is the reprice in Codan, is that part of your synergies guidance? Or is that a Commercial synergies that you have not included? And if I may add to that, you say you have quicker realization of synergies, obviously, investing more also now. But have you identified new areas or new synergies? Or is it basically just front-loading the synergies that you had already identified a year ago?

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : It's just that you said that you will be repricing more in Codan than in Alm. Brand. And I was just wondering whether that was part of the DKK 600 million of synergies that comes on your guide more -- maybe a little more than DKK 600 million now, but that's maybe me concluding too early. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 18, 2022 / 9:00AM, ALMB.CO - Q2 2022 ALM. Brand A/S Earnings Call But anyway, just to ask, basically, the question was just whether that was included in your synergies or whether that's the Commercial synergy that is not included.

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : Exactly. That was why I asked. Okay, but that's great.

Question: Asbj°rn Nicholas M°rk - Danske Bank A/S, Research Division - Analyst : And just a follow-up from my side. Basically, just looking at your -- at the Codan Denmark, the tech line business, now you have a large claim in Q2 in the U.S. from solar panels. In Q1, it was wind turbines, offshore wind turbines. I guess the fire claim in Copenhagen in Q3 is more of a natural thing for a company like yours. But basically just wondering what kind of thoughts you have around the more exotic parts of the Codan Denmark exposures and whether you think that fits into the future Alm. Brand Group?