Topdanmark : 2020 Årsregnskabsmeddelelse Topdanmark A/S (271 KB)

TOPDANMARK ANNOUNCEMENT OF 2020 ANNUAL RESULTS

22 January 2021, Announcement No. 02/2021

Key features

2020

• Post-taxprofit 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-taxprofit 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 webcastIR 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: [phone]

SE dial-in-number: [phone]

UK dial-in-number: [phone]

US dial-in-number: [phone]

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

Announcement No. 02/2021 from Topdanmark A/S

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Please direct any queries to:

Peter Hermann

Chief Executive Officer

Direct tel.: [phone]

Lars Thykier

Chief Financial Officer

Direct tel.: [phone]

Steffen Heegaard

IR Director

Direct tel.: [phone], mobile tel.: [phone]

Announcement No. 02/2021 from Topdanmark A/S

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Contents

Management's review

1 Key features

1. Financial highlights
2. Results for 2020

5 Results for Q4 2020

1. Impact of the COVID-19 situation
2. Non-lifeinsurance in 2020

1. Non-lifeinsurance in Q4 2020

1. Life insurance in 2020
2. Life insurance in Q4 2020

1. Investment activities
2. Solvency calculation and capital requirements
3. Parent company etc.

1. Taxation

1. Targeted gross efficiency gains of DKK 500m in 2025

1. New IT systems
2. Profit forecast model for 2021
3. Distribution of dividend for 2020
4. Annual General Meeting

1. New Head of Investor Relations

1. Financial calendar

1. Disclaimer

1. Accounting policies

Financial statements for 2020 - Group

1. Income statement
2. Statement of comprehensive income
3. Assets
4. Shareholders' equity and liability
5. Cash flow statement
6. Statement of changes in equity
7. Segment information
8. Notes to the financial statements

Financial statements for 2020 - Parent company

27 Income statement

1. Statement of comprehensive income

1. Balance sheet

Topdanmark A/S

Borupvang 4

DK-2750 Ballerup

Tel [phone]

CVR no. 78040017

Email: [e-mail]

Internet: www.topdanmark.com

Announcement No. 02/2021 from Topdanmark A/S

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Financial highlights

						Q4	Q4
(DKKm)	2016	2017	2018	2019	2020	2019	2020
Premiums earned:
Non-life insurance	8,858	8,985	9,135	9,397	9,732	2,347	2,487
Life insurance	7,430	8,525	10,111	11,106	10,981	2,991	2,575
	16,288	17,510	19,247	20,502	20,713	5,338	5,062
Results:
Non-life insurance	1,712	1,909	1,420	1,601	1,302	486	648
Life insurance	189	249	228	327	117	36	74
Parent company etc.	41	77	54	60	34	29	9
Pre-tax profit	1,942	2,235	1,702	1,987	1,453	551	731
Tax	(407)	(502)	(371)	(441)	(329)	(120)	(159)
Profit	1,536	1,733	1,331	1,547	1,124	431	571
Run-off profits, net of reinsurance	470	344	353	433	164	90	50
Shareholders' equity of parent company
at 1 January	4,948	5,009	6,497	6,322	6,703	6,251	6,598
Profit	1,536	1,733	1,331	1,547	1,124	431	571
Dividend paid	0	0	(1,710)	(1,350)	(765)	0	0
Dividend own shares	0	0	73	50	24	0	0
Share buy-back	(1,524)	(410)	0	0	0	0	0
Share-based payments	50	166	131	148	98	21	16
Other movements in shareholders' equity	(1)	0	1	(14)	1	0	0
Shareholders' equity of parent company
end of period	5,009	6,497	6,322	6,703	7,185	6,703	7,185
Deferred tax on security funds	(306)	(306)	(306)	(306)	(306)	(306)	(306)
Shareholders' equity of Group
end of period	4,702	6,191	6,016	6,397	6,879	6,397	6,879
Total assets, parent company	5,779	7,114	6,873	7,274	7,785
Total assets, Group	73,476	80,958	83,224	98,442	109,288
Provisions for insurance and
investment contracts:
Non-life insurance	16,264	16,091	16,056	16,175	16,462
Life insurance	47,351	54,198	56,519	70,603	79,335
Financial ratios (parent company)
Post-tax profit as a percentage of
shareholders' equity	30.2	30.5	21.8	24.8	16.6	6.7	8.3
Post-tax EPS (DKK)	16.8	20.2	15.4	17.8	12.9	5.0	6.5
Post-tax EPS, diluted (DKK)	16.7	20.2	15.4	17.7	12.9	4.9	6.5
Share buy-back per share, diluted (DKK)	16.6	4.8
Dividend per share issued, proposed (DKK)		19.0	15.0	8.5	20.0
Net asset value per share, diluted (DKK)	57.3	75.6	72.9	76.7	82.0
Listed share price end of period	179.3	268.1	303.0	328.4	264.2
Number of shares end of period ('000)	87,216	85,876	86,432	87,067	87,491
Average number of shares ('000)	91,465	85,700	86,242	86,824	87,266	87,035	87,453
Average number of shares, diluted ('000)	91,721	85,873	86,637	87,229	87,475	87,367	87,634
Ratios non-life insurance
Gross loss ratio	67.2	61.5	66.2	65.1	67.5	70.0	64.8
Net reinsurance ratio	1.4	4.3	1.2	2.5	2.6	1.4	3.5
Claims trend	68.7	65.8	67.5	67.6	70.1	71.5	68.3
Gross expense ratio	16.4	16.1	16.1	16.0	16.3	16.8	16.7
Combined ratio	85.1	82.0	83.6	83.7	86.5	88.3	85.1
Combined ratio excl. run-off profits	90.4	85.8	87.5	88.3	88.2	92.1	87.1

Announcement No. 02/2021 from Topdanmark A/S

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