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: +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 transmissionof the call.
Announcement No. 02/2021 from Topdanmark A/S
Page 1 of 27
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
Announcement No. 02/2021 from Topdanmark A/S
Page 2 of 27
Contents
Management's review
1 Key features
- Financial highlights
- Results for 2020
5 Results for Q4 2020
- Impact of the COVID-19 situation
- Non-lifeinsurance in 2020
- Non-lifeinsurance in Q4 2020
- Life insurance in 2020
- Life insurance in Q4 2020
- Investment activities
- Solvency calculation and capital requirements
- Parent company etc.
- Taxation
- Targeted gross efficiency gains of DKK 500m in 2025
- New IT systems
- Profit forecast model for 2021
- Distribution of dividend for 2020
- Annual General Meeting
- New Head of Investor Relations
- Financial calendar
- Disclaimer
- Accounting policies
Financial statements for 2020 - Group
- Income statement
- Statement of comprehensive income
- Assets
- Shareholders' equity and liability
- Cash flow statement
- Statement of changes in equity
- Segment information
- Notes to the financial statements
Financial statements for 2020 - Parent company
27 Income statement
- Statement of comprehensive income
- Balance sheet
Topdanmark A/S
Borupvang 4
DK-2750 Ballerup
Tel +45 44 68 33 11
CVR no. 78040017
Email: topdanmark@topdanmark.dk
Internet: www.topdanmark.com
Announcement No. 02/2021 from Topdanmark A/S
Page 3 of 27
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
Page 4 of 27
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
Topdanmark A/S published this content on 31 December 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2021 13:25:06 UTC