Brief: Alm. Brand To Divest Energy & Marine Business For DKK 1.6 Bln

ALM. Brand A/S

01/07/2024 07:15

July 1 (Reuters) - ALM. Brand A/S  ALMB.CO :
    * ENTERS INTO AGREEMENT WITH NORWEGIAN INSURER GARD ON
DIVESTMENT
OF ENERGY & MARINE BUSINESS FOR DKK 1.6 BILLION
    * PRICE OF DKK 1.6 BILLION, EQUIVALENT TO A CASH PAYMENT OF
DKK
1.13 BILLION COMBINED WITH EQUITY FREED UP IN TRANSACTION
    * NET PROCEEDS INCLUDING FREED-UP EQUITY ARE EXPECTED TO BE
DISTRIBUTED TO SHAREHOLDERS OF ALM. BRAND A/S
    * DISTRIBUTION WILL BE MADE IN FORM OF EXTRAORDINARY
DIVIDEND,
SHARE BUY-BACKS OR A COMBINATION OF THESE
    * FINANCIAL TARGETS FOR 2025 ARE ADJUSTED TO A TECHNICAL
RESULT OF
DKK 1.85 BILLION (PREVIOUSLY DKK 2.1 BILLION)
    * FINANCIAL TARGETS FOR 2025: COMBINED RATIO OF 84.5
(PREVIOUSLY
84) AND AN EXPENSE RATIO OF 17 (PREVIOUSLY 16)
    * GUIDANCE FOR PROFIT FROM CONTINUING OPERATIONS BEFORE
SPECIAL
ITEMS FOR 2024 IS UNCHANGED AT DKK 1.43-1.63 BILLION
    * EQUITY FREED UP IN TRANSACTION IS EXPECTED TO AMOUNT TO
DKK 0.45
BILLION
    * DIVESTED BUSINESS REPRESENTS A TOTAL BUSINESS VOLUME OF
DKK 1.25
BILLION IN ANNUAL GROSS PREMIUM INCOME
    * DIVESTMENT MARKS AN END TO ALM. BRAND GROUP'S COMMITMENT
TO
ENERGY AND MARINE ACTIVITIES
    * WILL LOSE A CONTRIBUTION TO COVER GROUP'S COSTS, WHICH
GROUP
WILL NOT BE ABLE TO FULLY COMPENSATE FOR DURING 2025
    * EXPECTED PROCESS FOR TRANSITIONAL SERVICES AGREED WITH
GARD,
WILL BE AFFECTED BY TIMING OF COMPLETION OF TRANSACTION
    * SEPARATION OF BUSINESS FROM ALM. BRAND IS EXPECTED TO
TRIGGER
ADDITIONAL SPECIAL COSTS OF AROUND DKK 50 MILLION IN 2025
    * SYNERGIES IN CONNECTION WITH ACQUISITION OF CODAN, ARE
STILL
EXPECTED TO TOTAL DKK 600 MILLION IN 2025
    * EXPENSE RATIO FOR 2024 IS EXPECTED TO BE IN RANGE OF
18-18.5%,
AGAINST PREVIOUSLY 17-17.5%

Source text for Eikon:  ID:nGNE6BTN11 
Further company coverage:  ALMB.CO 

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