Topdanmark upgrades its earnings forecast for 2017

16 October 2017
Announcement no. 26/2017

On the basis of the preliminary profits for Q3 2017 of DKK 464m, Topdanmark's post-tax profit forecast model for 2017 is upgraded by DKK 250m to DKK 1.5 - 1.6bn excl. run-off for Q4 2017. The upgrade is primarily due to recognition of run-off profits, higher financial returns and a more favourable level of weather-related claims than assumed.

The profit forecast model for 2017 is based on a number of assumptions, including:

• A combined ratio of around 85 for the whole year excl. run-off in Q4 2017. In the latest profit forecast model (Half-Year Report for 2017), the assumed combined ratio for 2017 was around 87 excl. run-off in H2 2017
• A return on equity of 7% per annum and unchanged exchange rates compared to the level on 29 September 2017.

Furthermore, it is assumed that the return on interest-bearing assets, hedging the discounted provisions, is just sufficient to cover return and revaluation of the insurance provisions, while the return on the remaining interest-bearing assets is assumed to be the risk-free interest rate plus 2.0pp.

According to Topdanmark's financial calendar, the company's Interim Report for Q1-Q3 2017 is published on 26 October 2017.

Please direct any queries to:

Lars Thykier, CFO
Tel: +45 44 74 37 14

Steffen Heegaard, Group Communications and IR Director
Tel: +45 44 74 40 17, mobile tel: +45 40 25 35 24

Topdanmark A/S
Cvr-nr. 78040017
Borupvang 4
DK-2750 Ballerup