Brief: Alm. Brand Sells Alm. Brand Bank, Forms Strategic Partnership With Sydbank

ALM. Brand A/S

01/10/2020 07:38

Oct 1 (Reuters) - ALM. Brand A/S  ALMB.CO :
    * ALM. BRAND A/S CONCLUDES AGREEMENT TO SELL ALM. BRAND BANK A/S AND FORMS STRATEGIC
PARTNERSHIP
WITH SYDBANK A/S
    * HAS ENTERED INTO A CONDITIONAL AGREEMENT WITH SYDBANK A/S ON SALE OF ALM. BRAND BANK A/S,
GENERATING NET PROCEEDS OF DKK 1,833 MILLION, EQUIVALENT TO 0.95 TIMES NET ASSET VALUE
    * ALM. BRAND HAS FORMED A LONG-TERM STRATEGIC PARTNERSHIP WITH SYDBANK THAT PROVIDES ACCESS
TO
OFFERING INSURANCE PRODUCTS TO SYDBANK'S APPROXIMATELY 450,000 CUSTOMERS
    * PARTNERSHIP IS MUTUAL AND INVOLVES A CLOSE INTEGRATION OF PRODUCTS AND DIGITAL SOLUTIONS
FOR
BENEFIT OF CUSTOMERS OF ALM
    * SALE OF BANK WILL FREE UP CAPITAL IN GROUP IN A TOTAL AMOUNT OF APPROXIMATELY DKK 1.2
BILLION
    * BOARD OF DIRECTORS RECOMMENDS THAT FREED-UP CAPITAL BE DISTRIBUTED AS DIVIDEND SUBJECT TO
FINAL
CLOSING OF TRANSACTION AND TAKING INTO ACCOUNT DEVELOPMENT IN AUTHORITIES' RECOMMENDATION ON
DEFERRED PAYMENT OF DIVIDENDS
    * BASED ON ITS EXPECTATIONS THAT PROFIT GENERATED BY NON-LIFE INSURANCE FOR Q3 2020 WILL
EXCEED
PREVIOUSLY GUIDED PROFIT RANGE OF DKK 750-850 MILLION
    * ALM. BRAND UPGRADES GUIDANCE BY DKK 100 MILLION TO A PRE-TAX PROFIT OF DKK 850-950 MILLION
    * SALE OF ALM. BRAND BANK A/S IS CARRIED OUT AT A PRICE OF 0.95 TIMES NET ASSET VALUE.
    * EXPECTS TO POST A CONSOLIDATED PRE-TAX PROFIT OF DKK 700-750 MILLION IN 2020, EXCLUDING
RUN-OFF
RESULT FOR SEPTEMBER AND REST OF YEAR
    * WILL MAKE A TOTAL PROVISION OF DKK 85 MILLION TO COVER COSTS EXPECTED TO BE INCURRED IN
RELATION
TO SALE AND WINDING-UP OF BANK
    * TARGET FOR ANNUAL AVERAGE GROWTH IN REGULAR PREMIUM PAYMENTS IN NON-LIFE INSURANCE IS
ALIGNED
FROM 3% TO A TARGET OF MORE THAN 3% IN 2021 AND 5% IN 2022
    *  2022 TARGET FOR COMBINED RATIO OF NON-LIFE INSURANCE IS MAINTAINED AT LESS THAN 90
    * 2022 TARGET FOR GROSS EXPENSE RATIO OF NON-LIFE INSURANCE IS MAINTAINED AT ABOUT 16%
    * 2022 TARGET FOR ANNUAL GROWTH IN REGULAR PREMIUMS IN LIFE INSURANCE IS MAINTAINED AT 7%
    * TRANSACTION IS EXPECT TO BE COMPLETED ON 30 NOVEMBER 2020
    * CEO OF ALM. BRAND BANK A / S KIM BAI WADSTRØM WILL CONTINUE IN THIS ROLE UNTIL COMPLETION
OF
TRANSACTION AND THEREAFTER UNCHANGED AS EXECUTIVE VICE PRESIDENT, COMMERCIAL AT ALM. BRAND A/S

Source text for Eikon:  ID:nGNE8P71cq 
Further company coverage:  ALMB.CO 

 (Gdansk Newsroom)
 ((gdansk.newsroom@thomsonreuters.com; +48 58 778 51 10;))