Alm Brand A/S

Ladies and gentlemen, thank you for joining us and welcome to the Ombrant First Quarter 2026 Learning School. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad to raise your hand. I will now hand the conference over to Andreas Rubin Madsen, CEO at Ombrant. Please go ahead.

Good morning and thank you for joining us on our conference call. I'm Andreas Ruben Madsen, the CEO of IndieBank Group since March 1st this year, and as usual I have with me our head of IRR, Mads Tindall. This morning we published our interim report for the first quarter of 26, and I will now walk you through the presentation of our results. Let's now look at the highlights from my first quarter as CEO. Please turn to slide 2 for some of the headlines regarding our business in the first months of the year. I'm pleased with the overall financial performance in the very satisfactory Q1 with strong underlying improvement in the claims ratio. Growth in personal lines faded somewhat in Q1 26 from a double digit level in Q4 25. This was as expected due to the year on year effects from last year's repricing fading out. Growth of over 6% during Q1 in private line does however indicate that we are continuing to take market shares in this market. In commercial lines, we experienced a decline in the top-line revenue as a result of our efforts to improve profitability and reduce volatility in an increasingly soft market for workers' compensation. Adjusted for the areas we work on in this respect, which is workers' compensation and industrial customers, the commercial portfolio reflected a premium growth of 2% year-on-year. We succeeded with an improvement in the undiscounted underlying claims ratio in commercial lines of 2.6%, percentage points year-on-year, while personal lines are more impacted by ice and roads conditions in Q1, but still delivering an improvement of 1.3 percentage points in underlying claims. And now I would like to turn to slide three for our financial highlights. Insurance revenue grew to above 2.9 billion in the quarter. The insurance service result was 496 million compared to 337 million in Q1 last year. We view this as a good start to the year, especially considering the strong underlying development. Weather-related claims were much lower than we would normally expect for Q1, while I would characterize large claims as being on a normal level in Q1. Investment income in Q1 was a loss of 43 million, which related to geopolitical turmoil, impact in equities, as well as bond returns in a negative direction. It's worth remembering that we as a company are set to benefit from increasing integration rates looking ahead. Other incoming expenses are significantly lower compared to last year, primarily due to the absence of integration costs related to Codon, reflecting the completion of the integration process. And now let's move on to slide five. The group made a technical result of 496 million in the quarter, up from 337 million last year. The significant improvement was driven by underlying improvements as well as higher run-off gains. In personal lines, year-on-year, we had an improvement in the insurance service result of 55 million to now 246 million. This was due to underlying improvements, lower ratios for weather, and large gains as well as continued growth. the insurance service results on commercial lines was 250 million against 146 million last year, driven by a combination of significant underlying improvement and much higher run-up gains than Q1 last year. Please turn to slide 6. Insurance revenue grew 2.5% in the quarter compared to 4.6% last quarter as a result of fading effects from last year's repricing and an increasingly soft market for workers' compensation. In personal lines, we're still taking market share while the effects of repricing are fading as expected. Therefore, I'm quite pleased with the growth in personal lines of 6.4 percentage points year on year. In commercial lines, we're seeing a decline in premiums of 1.8% due to our work with improving profitability and reducing volatility and increasing the soft market for workers' comp. Adjusted for workers' compensation and industrial customers, commercial portfolio reflected a premium growth of 2%, which is acceptable. And now moving on to slide 7 with the claims ratio. The Q1 claims ratio was down 480 basis points year-on-year in a quarter with lower weather claims than the normal Q1, a higher level of runoff gains, and a strong underlying improvement. The underlying claims ratio was 160 basis points lower year-on-year proven by profitability initiatives, 170 basis points on an undiscounted basis. The underlying improvements, especially visible in commercial lines, with a 260 basis point improvement in underlying claims year-on-year, while personal lines still positive, were impacted more negatively by icy road conditions. Personal lines showed an improvement in undiscounted underlying claims of 120 basis points year-on-year. And now please turn to slide 8. The combined ratio in personal lines improved to 84.5% from 87.1% last year due to lower underlying claims, decline in the cost ratio, and lower weather and large claims. Premium growth is still on a high level of 6.4%, despite fading effects from repricing. Please turn to slide 9 for commercial lines. In commercial lines, we observed a significant reduction in the combined ratio to 81.3 to 1.26%, down from 89.3 in 2021-25. This improvement was supported by higher runoff gains of around 600 basis points year-in-year, largely driven by cargo and property related claims. Additionally, lower underlying claims contributed to a further 240 basis point reduction year-in-year. The cost ratio was also decreased by 50 basis points year-in-year in commercial lines, providing additional support Although the last claims rose to 11.3 percentage points in Q1, slightly above the normal level of 10% typically expected for commercial lines. And now, move on to slide 11 for the investment results. You may notice that we, as of this quarter, have begun disclosing returns on our free portfolio in response to requests from many of you. The investment result in Q1 showed a loss of 43 million in Q1 with 35 million of this loss stemming from the free portfolio, which was adversely affected by a decline in share prices. Additionally, our bond portfolio was impacted by rising interest rates and widening credit spreads. As you'll be aware, this was driven by the geopolitical turmoil experienced during Q1. I'd also like to take a moment to address our fixed income line, which amounts to 0.9 billion DKK, with approximately half that number placed in private debt and asset class, which has received some attention recently. I'd like to highlight that this exposure is limited to a well-diversified portfolio of loans to European companies. And now, finally, please turn to slide 13. We are revising our guidance for the insurance service result in 26 upwards by 150 million to 1.8 to 2.0 billion excluding run-up gains from Q2 to Q4 of 2026. This follows a strong underlying development in Q1 as well as a high level of runoff gains. Continue to expect around 2% in runoff gains looking ahead. The cost ratio is still expected to be at around 17% for 2026, while the combined ratio excluding the runoff result in Q2 to Q4 is expected to be 83.5 to 85.5, an improvement of 100 base points. Our guidance for the investment result is lowered by 50 million, to 150 million in 26 following the loss in Q1. This adjustment also reflects Enly's rebound in Q2 so far. Antiquity guidance for profit before other income and expenses is upgraded by 100 million to 1.95 to 2.15 billion. Other income and expenses remain unchanged and guided at an expense of half a billion for 2026. And with this, I conclude our presentation and hand over the word to our moderator. Thank you.

We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you'd like to ask a question, please press star one on your telephone keypad to raise your hand. To withdraw your question, please press star one again. Please stand by while we compile the Q&A roster. Your first question comes from Asbjorn Moore from Danske Bank. Your line is now open. Please go ahead.