11 March 2008
Announcement No. 03/2008
The Board of Directors of Topdanmark has today adopted the Annual Report for
2007.
Key features:
- The post-tax profit for 2007 was DKK 1,271m (2006: DKK 1,692m).
- On the basis of the most recent profit forecast for 2007 being DKK 1,100 -
1,200m, the post-tax result exceeded assumptions by DKK 71 - 171m.
- The profit represented a 31.2% post-tax return on shareholders' equity and a
40.7% pre-tax return.
- The operating profit increased 14.0% to DKK 1,561m.
- Premium growth was in line with expectations at 0.9% in non-life insurance,
while in life insurance the growth of 12.8% exceeded expectations.
- The expense ratio declined 0.1 of a percentage point to 14.5%.
- The combined ratio declined from 86.0% in 2006 to 84.3% in 2007. However,
excluding gains on the claims provisions it increased from 86.4% to 88.0%.
- Due to a favourable claims trend in the early part of the current year the
combined ratio expected for 2008 has been adjusted from just over 89% to just
under 89% including a 2.6 percentage point adverse effect due to
weather-related claims and unforeseen events and excluding any strengthening of
/ gains on the claims provisions.
- Topdanmark continues to expect premium growth in line with or just over
market growth of 2 - 3%.
- The post-tax profit forecast is DKK 750 - 850m for 2008 corresponding to a
23% post-tax return on shareholders' equity. This forecast includes an
assumption that the expected investment return will be about DKK 440m lower
than normalised.
- The lower return on investments was almost solely due to unrealised losses on
equities and write-downs of CDOs. Therefore the cash flow will only be
marginally affected.
- The share buy-back programme for 2008 is expected to be DKK 1,050m
representing a buy-back yield of 8.9%.
It is recommended that this Annual Report is read together with
www.topdanmark.com which provides detailed and supplementary information.
On www.topdanmark.com -> Presentations a webcast is available in which
Topdanmark's CEO, Poul Almlund, presents the financial highlights and comments
on the forecast.
Based on the Annual Report and the webcast, a conference call will be held
today at 15:30 (CET) when Poul Almlund, CEO, and Christian Sagild, Group
Managing Director, will be available for questions. The call will be conducted
in English.
In order to participate in the conference call, please phone
UK dial in number: +44 (0) 20 7162 0025
US dial in number: +1 334 323 6201
5 - 10 minutes before the conference asking the operator to connect you to the
Topdanmark conference call.
Or listen to the live transmission of the call.
Please direct any queries to:
Poul Almlund, Chief Executive Officer
Direct tel.: +45 4474 3453
Christian Sagild, Group Managing Director
Direct tel.: +45 4474 4450
Steffen Heegaard, Head of IR and Group Communications
Direct tel.: +45 4474 4017, Mobile: +45 4025 3524
