Alm. Brand — Earnings Release 2016

Nov 16, 2016

Alm. Brand generated a highly satisfactory pre-tax profit of DKK 817 million in
9M 2016. The full-year guidance is lifted by DKK 200 million to a profit of DKK
900-1,000 million.

“In the third quarter of 2016, we once again outperformed expectations, and for
the nine months ended 30 September, we generated an exceptionally strong
overall profit,” said CEO of Alm. Brand, Søren Boe Mortensen.

“Non-life Insurance contributed the most to the overall results, which,
however, were lifted in particular by high run-off gains and few
weather-related claims. The single most important difference setting this
performance apart from recent years was the fact that the bank is back in the
black,” elaborated Mr Mortensen. He continued:

“Finally, we are very pleased to note that our customer satisfaction rate
remains high and is seen to increase and that the number of Pluskunder is
growing in both insurance and banking. This is highly satisfactory.”

Q3 performance:

· Non-life Insurance delivered a highly satisfactory pre-tax profit
of DKK 310 million, which was significantly better than expected, being boosted
by a strong investment result.

The combined ratio was 76.7, supported by few weather-related claims and by
run-off gains. A number of major fire incidents in the commercial customer
segment and a higher claims frequency detracted from the performance.

Premiums declined by 1.0% in Q3 in line with expectations, among other things
due to the fact that Alm. Brand has lowered its prices, particularly on motor
insurances.

· Our life and pension activities generated a satisfactory pre-tax
profit of DKK 23 million, which was better than expected.

Pension contributions were in line with the year-earlier period. Adjusted for
timing differences, regular premiums increased by close to 4%, which was
satisfactory, while contributions to market-based schemes provided by the bank
declined. The trend in market-based schemes was not satisfactory.

At 30 September 2016, the bonus rate was at a highly satisfactory level of
17.5. The high bonus rate enables Alm. Brand Liv og Pension to continue to
offer high and competitive rates on policyholders’ savings.

· The bank’s forward-looking activities generated a profit of DKK 24
million, which was better than expected. However, the performance remained
impacted by the combination of the negative short-term bond yield and the
bank’s excess liquidity.

The performance was bolstered by a strong investment result as well as by fair
growth in the number of full-service customers within the private customer
segment, Financial Markets and Leasing. Over the past year, the bank has grown
the number of full-service customers by 13% and increased lending to private
customers by 6%. The portfolio of Totalkredit loans is also increasing,
reporting year-on-year growth of 18%.

· The bank’s winding-up activities reported a loss of DKK 9 million
in Q3, which was better than expected. The performance was up by DKK 73 million
on Q3 2015, driven by a significantly better funding situation and more stable
developments in the lending portfolio’s risk exposure.

Outlook

· The full-year guidance is lifted by DKK 200 million to a pre-tax
profit of DKK 900-1,000 million. The guidance for the group’s forward-looking
activities is lifted to DKK 925-1,025 million, comprising upgraded guidance for
Non-life Insurance of DKK 200 million and downgraded guidance for Other
activities of DKK 10 million.

The guidance for the bank’s winding-up activities is revised to an expected
loss of DKK 25 million.

· The full-year guidance for 2017 is a profit of DKK 400-500 million
at a combined ratio of about 92. The winding-up activities are expected to
report a result of zero.

Webcast and conference call

Alm. Brand will host a webcast and conference call on Wednesday, 16 November
2016, at 10 a.m.

https://player.eventcdn.net/tu2ovr

Analysts are invited to participate by phone: Danish analysts: +45 3544 5583,
US analysts: +1 855 269 2604, other international analysts: +44 (0) 203 194
0544.

Contact

Please direct any questions regarding this announcement to Søren Boe Mortensen,
CEO, on tel. +45 35 47 79 07 or Susanne Biltoft, Head of Information and
Investor Relations, on tel. +45 35 47 76 61.