ALM. Brand A/S Q4 2024 Earnings Call Transcript

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

Question: Asbjorn Mork - Danske Bank - Analyst : Yes. Thanks for taking my questions and Congratulations on the strong set of numbers. And basically, first of all, trying to understand a little bit the underlying improvement, the 190 basis points for the group undiscounted considering the impact you also mentioned from the health and accident business and the, and the sort of the impact in Q4 on the premium side versus the claims, which if I understood you correctly was still there in Q3. So I guess that's around 50 basis points of, of sort of switch for the only into Q4 tailwind on the on line for the group and hence 100 basis points, 110 basis points for the commercial business. Is that correctly understood that we should sort of adjust for that to get to the real underlying, so to speak.

Question: Asbjorn Mork - Danske Bank - Analyst : All that was okay and then if you then look at the 190 adjust for this, I guess still for the two on the line, you are seeing somewhat better, underwriting momentum than what you at least sort of soft guided for at Q2 and Q3. So what is it that has sort of done better here in Q4? Is it that the price acceptance for clients has been better or is it early signs if you look at the motor claims, for instance, the last three months have been pretty begin Is that the trend we are starting to see coming through or could you give a little bit more flavor on what it is? Actually that is sort of on the margin doing better than you thought, 34 months ago?

Question: Asbjorn Mork - Danske Bank - Analyst : Okay. Fair enough if it then goes to the private lines, and 5% points improvement to the claims ratio year to year and is there a retention risk here that you have repriced more than maybe your peers or that you have repriced for a little bit of a more adverse claim scenario than what we are seeing right now? Is there a sort of, do you see an increased general risk going forward here?

Question: Asbjorn Mork - Danske Bank - Analyst : Let's say the motor claims numbers that we have seen for in November, December, sorry and January, that trend sort of continues. Does this change your, pricing policy in 25? I guess you have been repricing for a continued sort of deterioration or at least a slight improvement but still some adverse scenario on this. So, is there anything there we should be aware of?

Question: Asbjorn Mork - Danske Bank - Analyst : Okay, and then the final question from my side on the PIN model, you mentioned now in the Q4 report that the processes aren't going, you have of course discussed this a couple of times, but now you are actually invited and is there a change in why you put it sort of in text and this is sort of like you would be extremely firm on this to a level where you can sort of put it in the report and the actual tablets of release any estimate on that and when we should expect that to come back to shareholders.

Question: Asbjorn Mork - Danske Bank - Analyst : Okay, that's fair. Final question the renewable sale. Since the date is very fixed in early March, what is it sort of we are waiting for that deal to close? Is there any risk at all? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 05, 2025 / 10:00AM, ALMB.CO - Q4 2024 ALM. Brand A/S Earnings Call

Question: Asbjorn Mork - Danske Bank - Analyst : All right, thanks a lot.

Question: Jan Erik Gjerland - ABG - Analyst : Thank you for taking my question as well. The first one is on the sale here in what happened to the, is it a run off again? You will sort of write in the report that gives you this fantastic sort of discontinued earnings for these 23 months of DKK250 million. Secondly, the growth in your market share in the private area looks to be stemming from your banking operation or banking channels. Could you shed some more light into who you are taking clients from? And if it's price driven or is it new volume or is it sort of added volumes from your clients? On the price increases in general, you mentioned last year that you had repricing for DKK100 million each of profitable growth in the commercial as well as the private lines. How are you doing on those numbers if you could shed some more light into how well you have been succeeding in those sort of successful repricing. And finally, on the PIM model as so talked about when could we expect anything? Is it in the second half of this year or at least, is it early '26 that you would think that you could get some approval from the regulator? Thank you.

Question: Jan Erik Gjerland - ABG - Analyst : Okay.

Question: Jan Erik Gjerland - ABG - Analyst : Okay very clear. Thank you.

Question: Martin Birk - SEB Equities - Analyst : Thank you so much. Perhaps a couple of small questions on my side, the special cost is a little higher than anticipated and what is the reason for that? Also, what is the reason for the and then also your guidance for 2025 and special cost also seems in the high end. If you look at discounted activities in addition to the activities, what's happening in the quarter and then finally, when I look at your tax rate, I guess your average tax rate there were using eight quarters and like 34% which is a little higher than the stature tax rate for the companies. Are there any moving part of this? The tax that we should be a way of going forward? Yeah, I try to go through that step by step. First question was around the special Q4. I think we more or less landed where we have been expecting. We had let's say we have DKK52 million coming from the ordinary integration and then we have the DKK 50 million top, we also communicated related earlier, related to the layout, the reorganization we and NSE takeout we had in October. So I think that's in line with what we said earlier. And you are right that if we move to '25 with the guidance there, DKK175 million in total [25]of that has to do with guard energy and marine. And that's in line with what we have never been very specific on timing, but we have communicated a total cost of around [50] related to the separation. Some of that already being have already been held in '24 and some relating around 25 million to [25] so that's more or less also in line. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 05, 2025 / 10:00AM, ALMB.CO - Q4 2024 ALM. Brand A/S Earnings Call So if you add it all up in integration for the when we are done in '25 we will be at just below DKK1.1 billion for the integration as such. That is a bit higher than the DKK1 billion in round numbers. We started out communicating but just below DKK1.1 billion for the integration and such and then we had this need to do further on costs along the way. Among them, the DKK50 million we just did in the end of last year. So I think that should be at least where we are now for integration and special costs. Then you asked also to the discontinued activities as I recall that was related to the Q4 result Martin or maybe you could repeat that.

Question: Martin Birk - SEB Equities - Analyst : Okay. Got you that printed and Leslie on your tax rate, which is my book is very high and it's been very high for well now 89 quarters in a row. And I'm wondering why that is the case.

Question: Martin Birk - SEB Equities - Analyst : So if you said if you sat in my chair, what kind of tax rate would you put in for the 2025?

Question: Martin Birk - SEB Equities - Analyst : Okay.

Question: Martin Birk - SEB Equities - Analyst : Okay. Excellent. Thank you.

Question: Mathias Nielsen - Nordea Markets - Analyst : Thanks a lot and congratulations on the strong results this quarter. So my question is firstly on motor like now we have seen motor frequency coming down and then recently as far as I remember like a year ago, we had this double whamming effect of both the frequency increasing but also triggering basic repair shops and distress supply chains which also cause the place like the cost of repairing them to spike quite a lot. How do you see this year around and at this time, like, have you already seen any benefits from that or is it something that you expect to see in the early '25 that the cost inflation is also coming down on claims?

Question: Mathias Nielsen - Nordea Markets - Analyst : Okay. Thanks a lot on that. And then the second question competition like how do you feel the competition is out there right now like earlier this week, I saw one of your competitors changing the way they do the list prices by changing the way they do discounts, just to appear cheaper on the list prices than for example, you on certain products. Have you seen the competition, like intensifying over the past quarter or how do you should we think about that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 05, 2025 / 10:00AM, ALMB.CO - Q4 2024 ALM. Brand A/S Earnings Call

Question: Mathias Nielsen - Nordea Markets - Analyst : But is it getting worse or is it just the same as it has been for quite some time?

Question: Mathias Nielsen - Nordea Markets - Analyst : Thank you. That was very clear. And then my last question was sort of a technical one on the DKK250 million in the in the results from the discontinued operations in '25. How much is that is actually impacting the [Suby] ratio all of it or is it like it sounds like it was quite a few of accounting profits rather than cash profits? So, is there any change in how we should think about that on the service ratio?

Question: Mathias Nielsen - Nordea Markets - Analyst : That was all for me. Thanks a lot for your interest.

Question: Bhavin Rathod - HSBC - Analyst : Hey, good morning. Thank you for taking my questions. So the first one that I have is on the commercial book again, are you able to quantify the quantum of price increases that you were able to put through on the commercial book at the recent renewal in January? And in conjunction to that, are you seeing change in terms of customer behavior? Are you seeing any pressure in terms of customer retention when you are able to put through those rate increases? The second one would be on your reinsurance program would be helpful if you could provide some color in terms of have you made any changes with respect to your reinsurance coverage at the recent renewal period? And the last one would be on your investment result target of DKK200 million. Can you provide us the underlying macro assumptions that you have baked into that number with respect to interest rate movement or equity market movement? Thank you.

Question: Bhavin Rathod - HSBC - Analyst : That's very helpful. Thank you so much.