Topdanmark årsregnskabsmeddelelse 2022

Announcement of 2022 Annual Results

Highlights

2022

• Profit after tax of DKK 2,049m (2021: DKK 2,138m)
• EPS was DKK 23.2 (2021: DKK 24.3)
• Combined ratio: 81.8 (2021: 80.1)
• Combined ratio excluding run-off: 83.3 (2021: 82.8)
• Premiums increased by 3.8% in non-life insurance.
• After return on non-life insurance provisions, the investment return was DKK -477m (2021: DKK 554m).
• Profit from discontinued operations was DKK 1,089m after tax (2021: DKK 248m).

Q4 2022

• Profit after tax of DKK 1,410m (Q4 2021: DKK 625m)
• EPS was DKK 15.9 (Q4 2021: DKK 7.1)
• Combined ratio: 80.9 (Q4 2021: 77.9)
• Combined ratio excluding run-off profits: 81.7
  (Q4 2021: 80.4)
• Premiums increased by 4.0% in non-life insurance.
• After return on non-life insurance provisions, the investment return was DKK 78m (Q4 2021:
  DKK 193m).
• Profit from discontinued operations was DKK 983m after tax (Q4 2021: DKK 64m).

Dividend distribution for 2022

• The Board of Directors will recommend to the AGM that distribution of a total dividend of DKK 4,815m takes place, representing DKK 53.5 per share, a pay-out ratio of 235 and a dividend yield of 14.6. The total dividend is made up of an ordinary dividend of DKK 990m from this year’s profit from continuing operations of DKK 960m, representing DKK 11.0 per share and a pay-out ratio of 103.1, as well as an extra dividend based on the sale of Topdanmark Liv Holding A/S of DKK 3,825m, representing DKK 42.5 per share.
• Subject to the approval from the AGM, the distribution of dividend will take place immediately after the AGM on 26 April 2023.

Profit forecast model for 2023

• The post-tax profit forecast model for 2023 amounts to DKK 1,050-1,310m, excluding run-off.
• The assumed combined ratio for 2023 is adjusted to 83-86 excluding run-off due to rising long interest rates, removal of the VA component, and higher expected reinsurance prices. These three effects impacted the assumed combined ratio by well above 0.5pp.
• The expected premium growth in non-life is unchanged at 2-3.5%.

Divestment of Topdanmark Liv Holding A/S

On 1 December 2022, the divestment of Topdanmark Liv Holding A/S to Nordea was completed.

Efficiency programme

• In 2022, Topdanmark has made solid progress in its efforts to become more efficient.
• Topdanmark has realised gross efficiency gains of DKK 325m, ahead of original expectations of DKK 260m.
• Due to the strong delivery on the programme so far and the inclusion of further cost efficiency measures, the efficiency programme is now targeted to deliver gross efficiency gains of DKK 650m in 2025.
• In 2023, the gross efficiency gains from the programme are expected to amount to DKK 435m.

Annual General Meeting

The date of the Annual General Meeting has been changed to 26 April 2023 at 15:00 (CET), and it will be held as a fully virtual AGM.

Conference call

A conference call will be held today at 15:00 (CET) where Peter Hermann, CEO, and Lars Kufall Beck, CFO will be available for questions based on the annual results. The call will be conducted in English.

 

To participate in the conference call, please call:

DK dial-in number: +45 78 76 84 90

SE dial-in number: +46 4 0682 0620

UK dial-in number: +44 203 769 6819

US dial-in number: +1 646 787 0157

(Pin code for all callers: 587062)

 

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.