Topdanmark årsregnskabsmeddelelse 2023

Topdanmark årsregnskabsmeddelelse 2023

23. januar 2024, Med. nr. 02/2024

Highlights

2023

• Profit after tax, continuing operations of DKK 1,051m (2022: DKK 1,078m)
• EPS, continuing operations was DKK 11.9 (2022: DKK 12.2)
• Combined ratio: 85.6 (2022: 82.4)
• Combined ratio excluding run-off: 87.6 (2022: 83.9)
• Insurance revenue increased by 2.7% including Oona Health (2.1% excluding Oona)
• Net investment result was DKK 97m (2022:
  DKK -244m).

Q4 2023

• Profit after tax, continuing operations of DKK 157m (Q4 2022: DKK 497m)
• EPS, continuing operations was DKK 1.8 (Q4 2022: DKK 5.6)
• Combined ratio: 91.8 (Q4 2022: 81.2)
• Combined ratio excluding run-off: 93.9
  (Q4 2022: 84.0)
• Insurance revenue increased by 5.1% including Oona Health (2.5% excluding Oona)
• Net investment result was DKK 110m (Q4 2022:
  DKK 193m).

Dividend distribution for 2023

• The Board of Directors will recommend to the AGM the distribution of a dividend of DKK 1,035m, representing DKK 11.5 per share, a pay-out ratio of 98.4 and a dividend yield of 3.6.
• Subject to the approval from the AGM, the distribution of dividend will take place immediately after the AGM on 23 April 2024.

Profit forecast model for 2024

• Organic growth in insurance revenue is assumed to be above 4.5%. Reported growth in insurance revenue will be above 11.5% due to the acquisition of Oona Health as of 1 December 2023.
• Combined ratio is assumed in the range of 82-85 including run-off. Please note that this represents a change in practice compared to previous years, where the profit forecast excluded run-off. The rapid decline in interest rates observed in December 2023 impacts our forecast negatively by approx. 70bps compared to the level at Q3 2023. As expected, the expense ratio will increase and reach its peak in 2024. Compared to 2023, the expense ratio is also negatively impacted by approx. 20bps from the inclusion of Oona Health. Apart from the above, the assumptions are unchanged compared to the beginning of 2023 despite the observed headwinds from reinsurance (Catastrophe and Fire programmes) and higher loss frequencies.
• For these reasons, the profit forecast for 2024 amounts to DKK 1,150-1,425m after tax and including run-off.

Acquisition of Oona Health A/S

• On 27 October 2023, we received the final regulatory approval from the Danish Competition and Consumer Authority, and the acquisition was completed on 1 December 2023.
• As a result, Oona Health is included in Group results from 1 December 2023. The Q4 2023 result includes one-off costs of DKK 35m related to the transaction and booked on the new line item “special costs”.

 Efficiency programme

• In 2023, we continued the solid progress in our efforts to become more efficient.
• We realised gross efficiency gains of DKK 430m in 2023, in line with the expectations at the start of the year.
• The programme continues to target gross efficiency gains of DKK 650m in 2025, of which DKK 540m in 2024.

Conference call

A conference call will be held today at 11:00 (CET) in which Peter Hermann, CEO, and Lars Kufall Beck, CFO, will be available for questions based on the results. The call will be conducted in English.

 

To participate in the conference call, please call:

DK dial-in number: +45 32 74 07 10

SE dial-in number: +46 8 505 246 90

UK dial-in number: +44 20 3481 4247

US dial-in number: +1 (646) 307 1963

(Conference ID 4725344)

 

10-15 minutes before the conference and ask the operator to connect you to the Topdanmark conference call – or listen to the live transmission of the call.

 

Please direct any queries to:

 

Peter Hermann

Chief Executive Officer

 

Lars Kufall Beck

Chief Financial Officer

 

Robin Hjelgaard Løfgren

Head of Investor Relations

Direct tel.: +45 4474 4017

Mobile tel.: +45 2962 1691