Alm. Brand A/S: On Track to Meet 2025 Target Despite Challenges

Alm. Brand A/S, a leading insurance group in Denmark, has provided profit guidance for 2025, reaffirming its ambitious target set in 2022. Despite a lower interest rate level and a generally higher level of motor claims, the company remains confident in its ability to meet its objectives. This article explores the initiatives Alm. Brand A/S is implementing to maintain its ambitious target and the challenges it faces in achieving it.

Alm. Brand A/S expects to report an insurance service result of DKK 1.5-1.7 billion excluding run-off gains or losses in 2025. This guidance includes synergies in an amount of DKK 600 million, which the company aims to realize through various cost-saving measures and operational improvements. The expected increase in the insurance service result is driven by improved profitability in both Personal Lines and Commercial Lines, as the company implements profitability-enhancing initiatives.

The expense ratio is expected to be about 17% in 2025, reflecting the company's efforts to reduce costs and improve operational efficiency. The combined ratio excluding run-offs is expected to be about 85.5-87.5, indicating an improvement in the company's claims experience and expense management. Alm. Brand A/S' target for 2025 of generating an insurance service result including run-offs of DKK 1,850 million and a combined ratio of 84.5% remains unchanged.

To achieve its 2025 target, Alm. Brand A/S is implementing several initiatives to improve profitability and manage its expense ratio and combined ratio. These initiatives include:

1. Profitability-enhancing measures: The company is implementing measures to improve profitability in both Personal Lines and Commercial Lines. These measures are expected to drive the increase in the insurance service result relative to the result realized in 2024.
2. Synergies: Alm. Brand Group expects to realize synergies in an amount of DKK 600 million by 2025. These synergies are expected to contribute to the company's profitability and help achieve its 2025 target.
3. Expense ratio reduction: The company aims to reduce its expense ratio to about 17% in 2025. This reduction is expected to improve profitability and contribute to the achievement of the 2025 target.
4. Combined ratio improvement: Alm. Brand Group expects the combined ratio excluding run-offs to be about 85.5-87.5 in 2025. This improvement is expected to contribute to the company's profitability and help achieve its 2025 target.

Alm. Brand A/S faces several challenges in achieving its 2025 target, including a lower interest rate level and a generally higher level of motor claims. However, the company's history of successfully implementing cost-saving measures and improving operational efficiency supports the expectation that it will be able to meet its ambitious target.

In conclusion, Alm. Brand A/S is on track to meet its 2025 target, despite the challenges it faces. The company's initiatives to improve profitability, reduce costs, and manage its expense ratio and combined ratio are expected to contribute to the achievement of its objectives. The company's history of successfully implementing cost-saving measures and improving operational efficiency supports the expectation that it will be able to meet its ambitious target.