TOPDANMARK ANNOUNCEMENT OF 2020 ANNUAL RESULTS

22 January 2021

Announcement No. 02/2021

Key features

2020

• Post-tax profit of DKK 1,124m (2019: DKK 1,547m)
• EPS was DKK 12.9 (2019: DKK 17.7)
• Combined ratio: 86.5 (2019: 83.7)
• Combined ratio excluding run-off: 88.2 (2019: 88.3)
• Premiums increased by 3.6% in non-life insurance and decreased by 1.1% in life insurance.
• Profit on life insurance was DKK 117m (2019:
  DKK 327m).
• After return on non-life insurance provisions, the investment return was DKK 52m (2019: DKK 179m).

Q4 2020

• Post-tax profit of DKK 571m (Q4 2019: DKK 431m)
• EPS was DKK 6.5 (Q4 2019: DKK 4.9)
• Combined ratio: 85.1 (Q4 2019: 88.3)
• Combined ratio excluding run-off profits: 87.1
  (Q4 2019: 92.1)
• Premiums increased by 6.0% in non-life insurance and decreased by 13.9% in life insurance.
• Profit on life insurance was DKK 74m (Q4 2019:
  DKK 36m).
• After return on non-life insurance provisions, the investment return was DKK 292m (Q4 2019:
  DKK 230m).

Dividend distribution for 2020

• The Board of Directors will recommend to the AGM on 25 March 2021 that a dividend of DKK 1,035m will be distributed for 2020, representing DKK 11.5 per share. This represents a pay-out ratio of 92.1 and a dividend yield of 4.4.
• At the AGM in 2020, it was decided to postpone pay-out of the second half of the dividend for 2019 until the AGM on 25 March 2021. The Board of Directors will recommend to the AGM that the remaining dividend of DKK 8.5 per share (DKK 765m) will be distributed as an extraordinary dividend.
• Given the AGM approval, the total dividend distributed in connection with the AGM will be
  DKK 1,800m or DKK 20 per share.

Profit forecast model for 2021

• Compared with the profit forecast model for 2021 in the Q3 Report, the assumed combined ratio for 2021 has been improved from about 90 to 89-90 excluding run-off.
• The expected premium growth in non-life remains unchanged at just above 3%.
• The post-tax profit forecast model for 2021 amounts to DKK 1,000-1,100m, excluding run-off.

Efficiency programme

• As announced in the Q3 Report, Topdanmark has upscaled investments to become more efficient. The efficiency programme is expected to generate annual gross efficiency gains of DKK 500m in 2025.
• The gross efficiency gains in 2021 are expected to amount to DKK 120m.
• Compared with 2020, additional costs following the increased level of investments in the efficiency programme will impact costs for 2021 negatively by DKK 100m.
• In 2021, the net impact of the efficiency programme has been improved from negative DKK 30m, as assumed in the Q3 Report, to now DKK 20m in 2021.

Annual General Meeting

The Annual General Meeting will be held on 25 March 2021, 15:00 (CET) as a virtual AGM.

Webcast

In a  webcast IR Director, Steffen Heegaard, will present the financial highlights and comment on the forecast.

Conference call

A conference call will be held today at 16:00 (CET) where Peter Hermann, CEO and Lars Thykier, CFO will be available for questions based on the annual results and the webcast. The call will be conducted in English.

 

In order to participate in the conference call, please call:

DK dial-in-number: +45 78 72 32 50

SE dial-in-number: +46 85 66 42 706

UK dial-in-number: +44 333 300 9031

US dial-in-number: +1 833 526 8383

 

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

Direct tel.: +45 4474 4450

 

Lars Thykier

Chief Financial Officer

Direct tel.: +45 4474 3714

 

Steffen Heegaard

IR Director

Direct tel.: +45 4474 4017, mobile tel.: +45 4025 3524