acquisition of codan (dk) & privatsikringbetween dk, no and se headquartered in copenhagen with...

31
Alm. Brand’s acquisition of Codan (DK) & Privatsikring 11 JUNE 2021

Upload: others

Post on 31-Jul-2021

1 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

Alm. Brand’s acquisition of Codan (DK) & Privatsikring

11 JUNE 2021

Page 2: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

Contents

Transaction overview and financing 3

Investment highlights 9

Concluding remarks 24

Page 3: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

1 In addition, the consideration will be adjusted on a capital neutral basis in order to account for any changes in Codan’s own funds post the de-merger and to account for the earnings generated between the de-merger date and completion 33

Agreement to acquire Codan (DK) & Privatsikring

(“Codan”) from Tryg/Intact

Transaction

Significant run-rate expenses and claims

synergies of DKK ~600m per annum to be fully

realised by 2025

Synergies

DKK 12.586bn (c. EUR 1.69bn) in cash1

Consideration

Closing expected in H1 2022

Timetable

Transaction overview

Page 4: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

44

Indicative timeline

Public announcement

Public announcement

of agreement to buy Codan

Rights issue

Rights Issue

Prospectus publication

Exp. deal closing

Completion following

regulatory approvals

Shareholder vote

Alm. Brand shareholders to

vote on transaction before

rights issue

Separation expected to be

complete

Separation of RSA DK

from RSA Scandinavia

H2 2021

H1 2022

H1 2022

H2 2021

11/6 2021

Page 5: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

Financing of the transaction with support from the Association

Note: Alm. Brand af 1792 fmba (”The Association”) 5

~11.6

~2.0

Financing

~13.6

33%

67%

Underwritten by

banks

Fully committed

by the Association

Ambition of a long-

term shareholding

above 50%

The Association will

decrease its

ownership stake to

below 50%

Irrevocable

commitment by the

Association of DKK

3.8bn

Underwritten rights issue

(including Association participation)

Subordinated bonds &

other financing sources

~13.6

~12.6

~1.0

Investment

Consideration

Restructuring & transaction costs

after tax

Total investment (DKKbn) Financing of the investment (DKKbn) The Association is highly supportive of the transaction

Page 6: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

6Note: 1) Based on gross earned premiums for non-life; 2) Percent of gross earned premiums in 2020; last 3% comprise of other insurances; 3) Percentage of new sales in 2020

Headquartered in

Copenhagen with

~1,400 employees

Established in 1792 and

third largest insurance

company in DK with a

market share of ~9%

Non-life insurance assists around

320,000 households and 90,000

corporate customers. Life insurance

around 70,000 customers

5,365

202020192018

5,274 5,471

Combined ratio1

40%

39%

21%

Non-life (private) Life insuranceNon-life (commercial)

Product offering2 Distribution3

Workers’ compensation(8%)

Motor(28%)

Fire & content(44%)

Liability(3%)

Customer service centres(33%)

Insurance agents(58%)

Brokers(9%)

Non-life insurance(79%)

Personal accident(12%)

Gross earned premiums, non-life (DKKm)

Alm. Brand today

Alm. Brand at a glanceProvides non-life and life insurance products in Denmark

87% 89% 85%

Non-life insurance

Tourist assistance(2%)

Page 7: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

60%

40%

7Note: 1) Based on gross earned premiums; 2) Percent of gross earned premiums in 2020; last 4% comprise of other insurances and rounding; 3) Hereof ~750 in Denmark and ~250 employed on DK contracts with shared salary allocated between DK, NO and SE

Headquartered in

Copenhagen with

~1,0003 employees

Established in 1916 and

fourth largest insurance

company in DK with a

market share of ~9%

Assists around

240,000 households

and 50,000

corporate customers

5,415

2018 2019

5,825

2020

5,916

Non-life (Commercial) Non-life (Private)

Codan(~85%)

Product offering2 Distribution within personal lines

Direct channels(61%)

Bancassurance(39%)

Privatsikring(~15%)

Health Insurance(2%)

Workers’ compensation

(9%)

Motor(19%)

Fire and content(49%)

Liability(2%)

Tourist assistance(2%)

Marine, aviation & cargo(4%)

Personal accident(9%)

Distribution within commercial lines

Direct channels(42%)

Broker channels(53%)

Affinity partners(5%)

Gross earned premiums (DKKm)

Codan is a traditional non-life insurer operating under two brands (Codan and Privatsikring) Codan at a glance

Introduction to Codan

99% 89%

Non-life insurance

103%

Combined ratio1

Page 8: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

Contents

Transaction overview and financing 3

Investment highlights 9

Concluding remarks 24

Page 9: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

Unique strategic combination in the attractive Danish non-life insurance market

9

Transformation of Alm. Brand into a Tier 1 non-life insurance player in Denmark 11

12

13

14

Economies of scale to drive benefits and value creation for customers, investors, employees and partners

Substantial synergy potential with manageable execution risk

Attractive shareholder value creation and financial impact

Page 10: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

10Note: Market shares based on Q1 2020; Forsikring & Pension

22.5%

8.9%

17.5%

15.6%

6.7%

8.6%

5.5%

+

23.1%23.8%

18.0%

6.1%

11.7% 11.5%

7.8%

+

Segment % and # placing

relative to total DK

general insurance market

35%

#1

Motor insurance

6.7%

15.3%

26.0%

7.2%

17.7%

10.5%8.0%

+

23%

#2

Fire & content insurance

Segment % and # placing

relative to total DK

general insurance market

The proposed transaction creates the 2nd largest non-life insurance company in Denmark…

…with close to market leading position in the largest segment, fire & content insurance

1. TRANSFORMATION OF ALM. BRAND 11

The acquisition creates the second largest player in the attractive Danish non-life insurance market

Page 11: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

11Note: GEP = Gross earned premiums

40%

39%

21%

40%

60%

40%

48%

12%

Non-life Commercial

Non-life Private

Life insurance Greater differentiation of the

portfolio due to a wider segment

and complementary product

range

+ =Privatsikring adds further strength

to Alm. Brand’s ambition to grow

through bancassurance

Large Corporates and

Specialised segments are

significant parts of the Codan

portfolio, which will support a more

balanced portfolio

GEP

DKK 1.5bn

GEPDKK 2.7bn

GEP

DKK 2.8bn

GEPDKK 2.2bn

GEPDKK 3.2bn

GEPDKK 1.5bn

GEPDKK 6.0bn

GEPDKK 4.9bn

Segments

Share of non-life GEP

Total non-life GEP

DKK

100% ~88%~79%

5.4bn 10.9bn5.5bn

1. TRANSFORMATION OF ALM. BRAND

Acquisition brings a step change in scale and a further significant shift in business mix towards non-life insurance

Alm. Brand Codan NewCo Key portfolio changes

11

Page 12: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

Direct sales

In-market transaction with a great strategic fit

12

HQ

IT platform

Strategic partnerships

Home market

Dis

trib

ution

Segm

ents

Partnerships

Broker

SME

Large corp. & spec.

Copenhagen

TIA Technology TIA Technology (ongoing)

Copenhagen Copenhagen

+

TIA Technology

=

In-market nature of the

transaction

Strong complementarity across

distribution channels and

commercial segments

Similar IT platforms enable a

less complex integrationAgriculture

Similar culture and no

language barriers

Private

Alm. Brand Codan NewCo Supportive similarities

100% 100% 100%

High priority High priority High priority

1. TRANSFORMATION OF ALM. BRAND 11

Com

merc

ial

Page 13: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

13Source: Annual reports and market statistics

Headquarter

Jutland Funen Zealand

~35% addressable market share from current partnership banks exceeding

NewCo’s combined market share in the general insurance market

Increase share of wallet via cross selling

Key initiatives to capture market potential

Target

Improved digital solutions for easy customer access

Improved offering and services leading to increased

attractiveness

Strategic partnerships will

continue to be a high priority (Selected strategic partnerships)

Partnerships drive new

positioning, improved customer

experience and growth

Approximate market shares

30%

15%

50%

5%

Wide distribution through partnership banks with ample opportunities…

…to penetrate private non-life market by deploying key initiatives in bancassurance

Partnerships are an integral part of the strategy

Large untapped growth potential through attractive partnerships and wider product offering

Large independent

banks

Other selected

Totalkredit members

Selected Privatsikring

members (Codan)

Sydbank

(Alm. Brand)

1. TRANSFORMATION OF ALM. BRAND 11

Page 14: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

14

2. SIGNIFICANT SCALE

Customers

Customers gain from large scale via improved product offering and services

Employees

Employees gain from an attractive and evolving workplace with a broader opportunity set

Investors

Investors gain from economies of scale and improved market positioning

Partners

Partners gain from an increased customer base and attractive customer solutions

1

Secure high service and good customer

experiences through new and improved solutions

Solutions and services

Value creation for all stakeholdersEnable

underwriting

efficiency

Secure

procurement

efficiency

Retain and

attract talent

Leverage

data insights

Secure a

strong value

proposition

Room for

ambitious

R&D

projects

2

Scale to enable new investments and initiatives

to the benefit of stakeholders

Economies of scale 3

More attractive return on investment on digital

solutions and scalable initiatives

Return on investment

Future proof platform to provide superior stakeholder value

12

Page 15: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

15Note: COR = Combined ratio; GEP= Gross earned premiums

Increasing attractiveness

as a Tier 1 non-life

insurance player

Larger company size

More diversification

Improved profitability

70%

75%

80%

85%

90%

95%

100%

105%

0 5 10 15 20 25 30 35

CO

R

GEP (DKKbn)

Expected movement in Alm.

Brand’s COR/GEP relation

Clear correlation between scale and underwriting performance in Nordic non-life insurance

COR vs. GEP among Nordic non-life insurers (3Y average, 2018-2020) Value-adding effects

2. SIGNIFICANT SCALE 12

Page 16: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

20202018 2019

4,237 4,279

3,285…resulting in optimised claims

ratios demonstrating the strong

profitability uptake from

historical levels

12 month rolling Claims (%)

Gross earned

premiums

Codan is successfully pruning

portfolios by terminating

agreements with

unremunerative customers…

16Note: 1) Calculated based on gross earned premiums

2018 2019 2020

5,4155,916 5,825

Pruning is in progress and the full

effects have yet to be achieved

Strong organic growth driven by

Privatsikring and Technical Lines

Legacy implications are currently

being handled to improve

price/risk assessment

Net incurred claims

Gross earned premiums (DKKm) YoY growth (%)

Net incurred claims (DKKm)

71.6% 73.5%60.7%

Claims ratio (%)1

3. SUBSTANTIAL SYNERGY POTENTIAL

Significant value upside from improved standalone performance in Codan

Financial factors going forward

-1.5% -7.0%

Codan is on track improving standalone performance1

-0.4%

13

Page 17: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

17

DKKm

1 2 3

~63%

IT and infrastructure

~38%

Claims

~25%

Administration Expense levers

~38% ~225

~375

Total synergies

~600

ExpensesClaims

IT and

infrastructure

▪ IT and infrastructure synergies related

to integration of critical IT

systems, platforms and

applications

▪ Further synergies from sharing best

practices on digitalisation

Claims

▪ Claims synergies related to

indemnity spend, procurement,

fraud detection improvements and

improved claims processes

Administration

(non-IT)

1▪ Administration (non-IT) synergies

expected to be realized through FTE

reductions, rent savings from

combining offices and sharing of

best practices

Revenues

▪ Over time, the transaction is

expected to generate net revenue

synergies from cross-selling and

other initiatives

▪ Net revenue synergies excluded from

the financial analysis

Considerable upside from tangible, in-market synergies

Key synergy drivers Potential pre-tax synergies of DKK ~600m to be realised post-transaction

2

3

3. SUBSTANTIAL SYNERGY POTENTIAL 13

Page 18: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

18

DKKm

~600

20242022

~240

2023 2025

~90

~450

Synergies Share phased-in of total synergies

Pre-tax synergies of DKK ~600m

to be fully realised by 2025

IT synergies expected to be subject

to the longest phase-in period

High confidence in synergy realisation due

to the in-market nature of the transaction and

intimate familiarity with target

Closing expected in

H1 2022

Cost synergies to be fully realised by 2025

15% 40% 75% 100%

High confidence in realising cost synergies Pre-tax cost synergies of DKK ~600m to be realised by 2025

3. SUBSTANTIAL SYNERGY POTENTIAL 13

Page 19: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

19

Entering new strategic partnerships with key

accounts (e.g. Volkswagen Financial Services) by

improving customer experience via digital solutions

Increasing profitability bytransforming the group into a

largely non-life insurance focused company

I.

Structure

III.

Profitable growth

New and more agile organisation with a holistic

approach to the customer experience

New management structure to drive process of

change

IV.

Ambitious goals

II.

Costs

Focused and swift execution of the sale of the bank, while securing a

competitive sales price

Reduction in FTEs across all business areas and

shared services

Improved customer experience for both private and

commercial customers

Increased focus on dynamic pricing and efficient

interface to digital workflow

Profitability is prioritised above growth

Specific strategic goals for key value creating factors

Full transparency about the business plan going

forward and how the full potential of the strategy is

achieved

Rasmus Werner

Nielsen

CEO

Mikael Toke

Hvolgaard

Executive VP,

Private

Kim Bai Wadstrøm

Executive VP,

Commercial

Andreas Ruben

Madsen

CFO

Kristian Hjort-

Madsen

Executive VP,

BD and digitalisation

Strong management team with a relentless focus on execution

Management team with execution experience… … delivering on key strategic areas

The Alm. Brand management team has a proven execution track record and is ready to transform the company into a Danish Tier 1 non-life insurance player

3. SUBSTANTIAL SYNERGY POTENTIAL 13

Page 20: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

Total consideration

of DKK ~12.6bn

20

4. ATTRACTIVE SHAREHOLDER VALUE CREATION AND FINANCIAL IMPACT

Investment

~12.6

~1.0

~13.6

ROI

~7% by 2024

High teens EPS accretion

expected by 2024

The transaction represents an attractive return on investment and will be highly accretive to EPS

Total investment (DKKbn) Strong ROI Attractive EPS accretion

Total restructuring

and transaction

costs after tax of

DKK ~1.0bn

EPS accretion driven by synergiesSubstantial value creation with a

ROI of ~7% by 2024

14

Page 21: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

Impact on own funds Impact on SCR

Non-life insurance

Target SII ratio (post-transaction)

Life insurance

21Note: 1) The deviation of DKK ~0.1bn is from AB PIA and AB A/S mother

~170%

~600%

Group

~200%

Robust solvency position maintained post transaction

Financing of the investment (DKKbn) Solvency II ratio overview based on Alm. Brand internal model (estimated pro-forma)

Group SCR

Standard model: DKK 2.1bn1

Internal model: DKK 1.0bn

Total: DKK 3.1bn

Non-life SCR

Standard model: DKK 2.0bn

Internal model: DKK 0.9bn

Total: DKK 2.9bn

Life SCR

Standard model: DKK 0.1bn

Internal model:

Total: DKK 0.1bn

Rights issue

Subordinated

bonds and other

financing

Intangibles as well

as transaction,

restructuring and

integration costs

Increased

insurance exposure

(premiums and

reserves)

SCR in Codan is

based on standard

model

4. ATTRACTIVE SHAREHOLDER VALUE CREATION AND FINANCIAL IMPACT14

~2.0

~11.6

Financing

~13.6

Underwritten rights issue

(including Association participation)

Subordinated bonds &

other financing sources

Page 22: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

0.0

Dividend paid to shareholders, DKK per share

Profit before tax, continuing activities, DKKm

22

Note: 1) Alm. Brand paid out DKK 1.2bn in January 2021 equalling an extraordinary dividend of DKK 8 per share due to the divestment of the bank, 2) Including estimated pre-tax synergies

1.5

2017

1.5

2018

1.51.31.2

1.5

2019 2020

8.01

2021

4.2 4.33.0

4.0

Ordinary dividend Extraordinary dividend Share buyback

2021E Post-transaction

(medium term)2

600-650

Alm. Brand has a ordinary dividend

target equalling a pay-out ratio of

min. 70% of the group’s profit after tax

Pay-out ratio

High teens EPS accretion

expected by 2024

Original guidance

February 2021

Significant increase in dividend capacity through earnings growth and strong capital position

In previous years, Alm. Brand has paid out a stable dividend to shareholders…

…where dividend capacity will increase as pro-forma profit is expected to grow considerably

118% 102% 100%84%

~3.0x increase

4. ATTRACTIVE SHAREHOLDER VALUE CREATION AND FINANCIAL IMPACT14

Page 23: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

Contents

Transaction overview and financing 3

Investment highlights 9

Concluding remarks 24

Page 24: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

24

Unique strategic acquisition in the attractive Danish non-life insurance market

Transformation of Alm. Brand

into a Tier 1 non-life insurance

player in Denmark

11 12 13 14

Economies of scale to drive

benefits and value creation

for customers, investors,

employees and partners

Substantial synergy potential

(DKK ~600m) with

manageable execution risk

Attractive shareholder value

creation and financial impact

Page 25: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential10 June 2021

Q&A

Page 26: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

Appendix

Page 27: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

27

Support a strong

management team

Rasmus Werner Nielsen appointed as CEO of

Alm. Brand to lead new strategy for Alm. Brand A/S

The principal shareholder, Alm. Brand af 1792 fmba has participated proportionally in all the share buyback programmes since 2015 to maintain ownership of around 58%

58.0%of the share capital is held by the Association

…all of whom are customers of Alm. Brand Forsikring

Share buyback programme

Competitive insurance company

The Foundations long-term interest is to ensure Alm.

Brand A/S is a competitive insurance company in the

Danish market

Contribution to members of

the Foundation

The foundation furthermore aims to contribute to its

members by investing in preventive measures and

services or via direct payout to policyholders

Alm. Brand af 1972 fmba

Foundation / governance Foundation objectives

400,000 members

…elected by the shareholders, are nominated by fmba

5 out of 8 board members

Page 28: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

Irevocable commitment to support the

transaction with available funds

The Association is following the sale of

the bank treated as an Insurance HoldCo

under the Solvency II regime

28

>50%

58%

Current

shareholding

Future

shareholding

Shareholding

at closing

<50%

Irrevocable commitment to support the transaction with available funds

The Association’s irrevocable commitment

Board of Representatives is in favour of the transaction with all approvals obtained

Irrevocable commitment to support the capital raise

Irrevocable undertaking to commit capital in the rights issue

Following the sale of Alm. Brand Bank A/S, the Association reclassified as an Insurance HoldCo

Irrevocable undertaking to:

Commit DKK 3.8bn in the rights issue

Subscribe for further new shares in the rights issue (in addition to the DKK 3.8bn) on a cash neutral basis

Sale of Alm. Brand shares / pre-emptive rights expected to fund participation in rights issue

The Association has the sole purpose of supporting Alm. Brand

The Association has the intention to use anticipated future dividend pay-outs from Alm. Brand to increase its shareholding in Alm. Brand

The Association is an insurance HoldCo Intention to increase future shareholding

Page 29: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

Note: 1) Forward looking statements are not to be read as implying or gauranteeing actual future performance. For information only

29

Return / nominator would include1:

• Expected earnings when synergies are fully phased-in

Investment / denominator would include:

• Consideration which in total equals DKK 12.586bn

• After-tax restructuring and transaction costs

Pro-forma earnings would be based on1:

• Acquired expected earnings in 2024

• Run-rate synergies

• EPS accretion is calculated before any impact from intangible amortisation

and such impact would not affect the company’s dividend capacity

Pro-forma share count:

• Rights Issue discount to TERP will be irrelevant from a shareholder

perspective given the nature of the pro-rata allocation of pre-emptive

rights to shareholder’s existing holding

• Standalone EPS will need to be adjusted by the bonus factor (IAS 33),

offsetting the discount to TERP of the rights issue

ROI and EPS accretion calculations

ROI EPS accretion

Page 30: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

30

Alm. Brand A/S

Alm. Brand PIA A/SAlm. Brand Forsikring A/S

Forsikringsselskabet Alm. Brand Liv og Pension A/S

Codan Forsikring A/S

ForsikringsselskabetPrivatsikring A/S

New company structure

Company structure

Page 31: acquisition of Codan (DK) & Privatsikringbetween DK, NO and SE Headquartered in Copenhagen with ~1,0003 employees Established in 1916 and fourth largest insurance company in DK with

Confidential

31

Disclaimer

FORWARD LOOKING STATEMENTS

The statements made in this presentation are based on current expectations, estimates and projections made by management. All statements

about future financial performance are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in

or implied by the statements. All statements about future financial performance made in this presentation are solely based on information known

at the time of the preparation of the last published financial report, and the company assumes no obligation to update these statements, whether

as a result of new information, future events, or otherwise.