Alm. Brand — Earnings Release 2016

Aug 25, 2016

Alm. Brand generated a highly satisfactory pre-tax profit of DKK 483 million in
H1 2016 and raises its guidance for FY2016 by DKK 100 million to DKK 700-800
million.

“Our performance has once again exceeded our expectations, and we are pleased
to see that the bank continued to generate a profit in the second quarter,”
said CEO of Alm. Brand, Søren Boe Mortensen.

“Non-life Insurance once again outperformed our expectations, supported in
particular by a strong investment result and high run-off gains. However, the
number of claims increased, and prices are under pressure from mounting
competition,” explained Søren Boe Mortensen. He continued:

“We are therefore very pleased to note a continued inflow of new customers to
Alm. Brand and that we have continued to offer products and advisory services
that attract customers within banking, insurance and pension in spite of the
tough competition for customers.”

Financial results, Q2:

· Non-life Insurance delivered a highly satisfactory pre-tax profit
of DKK 221 million, which was significantly better than expected, being lifted
by a strong investment result.

The combined ratio of 86.2 was favourably affected by few weather-related
claims as well as by run-off gains. However, a higher claims frequency and
major claims in the commercial customer segment had an adverse effect.

Premiums declined by 1.2% in Q2. The decline was due to lower average premiums,
but sales came out better than expected. This combined with a high retention
rate to produce an increase in the number of policies written by the group in
Q2.

· Our life and pension activities generated a highly satisfactory
pre-tax profit of DKK 26 million, which was better than expected. In
particular, earnings were lifted by a good risk result.

Pension contributions grew by 2.3% in Q2, with regular pension payments into
guaranteed schemes increasing by 4.4%. The increase was in line with
expectations and was satisfactory relative to the target. However, payments
into market-based schemes fell marginally as a result of the volatile financial
markets.

The bonus rate was 18.4 at 30 June 2016, which is a very satisfactory level. As
a result of the high bonus rate, Alm. Brand Liv og Pension can continue to
offer its customers high and competitive rates on policyholders’ savings.

· The bank’s forward-looking activities reported a profit of DKK 15
million.

The bank’s performance was lifted by fair growth in the number of full-service
customers in the private customer segment as well as in Financial Markets and
Leasing. Over the past 12 months, the bank has attracted 13% more full-service
customers, and lending to private customers has increased by 7%. The portfolio
of Totalkredit loans continued to increase to DKK 7 billion, up by 1.1 billion
year on year.

However, the performance was adversely affected by the financial market
volatility, which especially impacted trading activity in Financial Markets. In
addition, the combination of the negative short-term bond yield and the bank’s
excess liquidity continued to impact the financial results.

· Reporting a break-even result in Q2 2016, the bank’s winding-up
activities once again outperformed expectations. The performance was up by DKK
78 million on Q2 2015. The improvement was driven by a significantly better
funding situation and more stable developments in the risk attaching to the
lending portfolio.

Outlook

· The full-year guidance is raised by DKK 100 million to a pre-tax
profit of DKK 700-800 million. The outlook for the group’s forward-looking
activities is lifted by DKK 75 million, comprising upgraded guidance of DKK 100
million and DKK 15 million for Non-life Insurance and Life and Pension,
respectively. On the other hand, the outlook for the bank’s forward-looking
activities is lowered by DKK 20 million.

The guidance for the bank’s winding-up activities is raised by DKK 25 million
to a loss of DKK 25-50 million.

Webcast and conference call

Alm. Brand will host a webcast and conference call on 25 August 2016 at 10.00
a.m.

https://player.eventcdn.net/abocwv

Financial 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.