ALM.

BRAND A/S • INTERIM REPORT

ALM. BRAND A/S

IN TE R I M R E PO RT
THE THIRD QUARTER OF 2005

Alm. sund fornuft

WWW.ALMBR AND.DK ALM. SUND FORNUFT
 T a b le o f c o n te n ts
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O v erv iew

Gr o u p st r u c t u r e 3
F in a n c e c a l en da r 3
C o m p a n y in fo r m a t io n 4

Rep o rt

F in a n c ia l H ig h l ig h t s a n d K ey R a t io s 5
Al m . B r a n d A/ S Gr o u p 6
N o n -Life In su r a n c e 9
B a n k in g 12
Life In su r a n c e 15
Ot h er b u sin ess a c t iv it ies 18

Interim rep o rt

G ro u p
Ac c o u n t in g Po l ic ies 19
B a l a n c e Sh eet 25
Pr o fit a n d l o ss a c c o u n t 26
St a t em en t o f c h a n g es in eq u it y 27
Pr o fit a n d l o ss a c c o u n t b y b u sin ess seg m en t s 28
N o t es 29

Parent c o m p any
Ac c o u n t in g Po l ic ies 35
B a l a n c e Sh eet 36
Pr o fit a n d l o ss a c c o u n t 37
St a t em en t o f c h a n g es in eq u it y 38
N o t es 39

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Group structure

A lm . B rand G ro u p m ain c o m p anies

T h e Al m . B r a n d A/ S Gr o u p is a D a n ish fin a n c ia l p en sio n in su r a n c e. In a ddit io n , t h e g r o u p o p er a t es

ser v ic es g r o u p c o n sist in g o f a l ist ed h o l din g a n in v est m en t b u sin ess in t h e o r din a r y c o u r se o f
c o m p a n y a n d a n u m b er o f su b sidia r ies o p er a t in g it s o p er a t io n s.
w it h in n o n -l ife in su r a n c e, b a n k in g a n d l ife a n d

F i n a n ce ca l en d a r

F eb r u a r y 2006 Pu b l ic a t io n o f a n n u a l r ep o r t 2005.

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Boa rd of d i rectors

C h r ist ia n N . B . U l r ic h J ø r g en H . M ik k el sen

M ic h a el F io r in i B o r is N . K j el dsen

N iel s K o fo ed J ø r g en S. La r sen

N iel s T h u en M a c h o l m Lo n e C l a u sen

El se M a r ie T h o r sen

M a n a g em en t b oa rd

Sø r en B o e M o r t en sen
C h ief Ex ec u t iv e Offic er

H en r ik N o r da m
D ep u t y C h ief Ex ec u t iv e Offic er

Aud i tors

D el o it t e, St a t sa u t o r iser et R ev isio n sa k t iesel sk a b

In tern a l a ud i tor

C h ief In t er n a l Au dit o r Po u l -Er ik W in t h er N iel sen

C om pa n y i n f orm a ti on
Al m . B r a n d A/ S
Al m . B r a n d H u set
M idt er m o l en 7
D K -2100 C o p en h a g en Ø
Ph o n e: + 45 35 47 47 47
F a x : + 45 35 47 35 47
C V R -n r . 77 33 35 17

W eb sit e: w w w . a l m b r a n d. dk
E-m a il : a l m b r a n d@ a l m b r a n d. dk

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F i n a n ci a l H i g h l i g h ts a n d K ey R a ti os
Q3 Q3 9 m o n t h s 9 m o n th s Y e a r
D K K m illio n 2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4 2 0 0 4

KEY FIGURES

In c o m e
Non-Life Insurance 1, 0 53 1, 0 4 1 3, 0 4 0 3, 0 76 4 , 113
B ank ing 191 168 576 512 689
Life Insurance 14 0 12 9 4 73 4 4 7 72 3
C op enh ag en R e 12 -2 33 15 2 9
Inv est m ent s 2 0 0 193 613 637 830
T o ta l in c o m e 1 ,5 9 6 1 ,5 2 9 4 , 7 35 4 ,6 8 7 6 , 38 4

R e s u lts
U nd erw rit ing resul t from non-l ife insurance 12 6 139 2 94 32 3 386
P rofit on b ank ing op erat ions 84 53 2 55 158 174
U nd erw rit ing resul t from l ife insurance 13 3 39 12 36
U nd erw rit ing resul t from C op enh ag en R e -18 -4 -2 9 1 8
P r o fit/lo s s fo r in s u r a n c e a n d b a n k in g o p e r a tio n s 2 0 5 1 9 1 5 5 9 4 9 4 6 0 4
P rofit / l oss on inv est m ent s aft er al l ocat ion of int erest 18 -4 9 51 -18 -87
O t h er ord inary it em s 5 10 -7 9 6
P r o fit/lo s s b e fo r e ta x 2 2 8 1 5 2 6 0 3 4 8 5 5 2 3
T ax -4 0 -5 -150 -97 -99
P r o fit/lo s s a fte r ta x 1 8 8 1 4 7 4 5 3 38 8 4 2 4
M inorit y int erest s sh are of p rofit for t h e p eriod -36 -16 -86 -36 -4 2
P r o fit/lo s s a fte r ta x e x c lu d in g m in o r itie s 1 5 2 1 31 36 7 35 2 38 2
P r o fit/lo s s b e fo r e ta x e x c lu d in g m in o r itie s 1 9 3 1 38 5 1 8 4 4 5 4 7 7

P rofit / l oss on b usiness in run-off, net of reinsurance 12 1 63 -35 -52

P rov isions for insurance cont ract s 19, 90 2 18, 34 2 18, 10 2

S h areh ol d ers' eq uit y 4 , 60 8 4 ,0 0 8 4 ,0 4 9
O f w h ich m inorit y int erest s 4 99 32 2 331
T ot al asset s 4 1, 2 62 36, 553 36, 810

KEY RA T IO S

R et urn on eq uit y b efore t ax p . a. 19% 15% 18% 17% 14 %

R et urn on eq uit y aft er t ax p . a. 15% 14 % 13% 13% 11%

E arning s p er S h are, D K K 80 7 6 16 16 17
D il ut ed E arning s p er S h are, D K K 80 7 6 16 16 17
Net asset s v al ue p er S h are, D K K 184 165 184 165 166
S h are p rice end of y ear 2 56 158 2 56 158 2 0 8
S h are p rice/ Net asset v al ue 1. 39 0 . 96 1. 39 0 . 96 1. 2 5

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T h e Al m . Bra n d A/ S Group
Al m . B r a n d A/ S is a l ist ed fin a n c ia l ser v ic es a ddit io n , sa l es in 2004 fel l sl ig h t l y b el o w
g r o u p fo c u sin g o n t h e D a n ish m a r k et . T h e g r o u p ex p ec t a t io n s, p a r t l y a s a r esu l t o f t h e in su r a n c e
c a r r ies o n n o n -l ife in su r a n c e, b a n k in g a n d l ife a g en t disp u t e in ea r l y su m m er 2004, a n d t h e
a n d p en sio n in su r a n c e a c t iv it ies a n d o p er a t es a n r esu l t in g effec t s a r e feedin g t h r o u g h in 2005. In
in v est m en t b u sin ess in t h e o r din a r y c o u r se o f it s o r der t o sec u r e fu t u r e g r o w t h , Al m . B r a n d h a s
o p er a t io n s. Al m . B r a n d is t h e o n l y fin a n c ia l l a u n c h ed a n u m b er o f m ea su r es t o st r en g t h en
ser v ic es b u sin ess in D en m a r k t o o ffer in su r a n c e, sa l es a n d en h a n c e c u st o m er l o ya l t y.
b a n k in g a n d p en sio n p r o du c t s u n der o n e r o o f. Ac c o r din g l y, Al m . B r a n d h a s in c r ea sed it s sa l es
fo r c e, b o t h in t er m s o f in su r a n c e a g en t s a n d
Financ ial res u lts c u st o m er c o n su l t a n t s, a n d t h e g r o u p w il l
T h e Al m . B r a n d A/ S Gr o u p p o st ed a p r e-t a x c o n t in u e t o in c r ea se t h e h ea dc o u n t in t h is a r ea .
p r o fit ex c l u din g m in o r it ies o f D K K 193 m il l io n fo r
Q 3 2005, c o m p a r ed w it h D K K 138 m il l io n in Q 3 A n u m b er o f n ew in it ia t iv es h el p ed t o l ift sa l es in
2004, F o r t h e yea r t o da t e, t h e p r o fit w a s D K K Q 3 2005 r el a t iv e t o Q 3 2004. T h ese m ea su r es
518 m il l io n a g a in st D K K 445 m il l io n a yea r a r e ex p ec t ed t o im p r o v e t h e t r en d in p r em iu m
ea r l ier . in c o m e in 2006.

T h e g o o d r esu l t s w er e a ttr ib u t a b l e t o t h e T h e c o m b in ed r a t io w a s 88. 4 in Q 3 2005, in l in e

ex c ep t io n a l l y p o sit iv e p er fo r m a n c e o f th e g r o u p ’s w it h t h e fig u r e fo r Q 3 2004.
t h r ee D a n ish b u sin ess a r ea s. T h e g r o u p ’ s o t h er
b u sin ess a r ea s, w h ic h m a in l y in v o l v e t h e r u n -o ff T h e c l a im s r a t io w a s 76. 2 in Q 3 2005, b r in g in g
o f r ein su r a n c e o p er a t io n s in C o p en h a g en R e, t h e yea r -t o -da t e c l a im s r a t io t o 93. 6. T h is
p er fo r m ed in l in e w it h ex p ec t a t io n s. r el a t iv el y h ig h c l a im s r a t io w a s du e t o t h e st o r m
o n 8 J a n u a r y 2005. Ap a r t fr o m t h is ev en t , t h e
T h e Q 3 p er fo r m a n c e eq u a l l ed a n a n n u a l ised g r o u p ’ s n o n -l ife p o r t fo l io r ep o r t ed a v er y p o sit iv e
r et u r n o n eq u it y o f 19% b efo re ta x a n d c l a im s ex p er ien c e w it h few er m a j o r c l a im s.
m in o r it ies. T h e r et u r n o n eq u it y fo r th e yea r t o H en c e, t h e p r em iu m a dj u st m en t s a n d t h e
da t e w a s 18% c o m p a r ed w it h 17% in t h e sa m e m ea su r es t a k en to en h a n c e t h e c u st o m er
p er io d o f 2004. p o r t fo l io h a v e p r o du c ed th e ex p ec t ed
im p r o v em en t s t o t h e c l a im s ex p er ien c e a n d t h e
As a r esu l t o f t h e p o sit iv e Q 3 p er fo r m a n c e in a l l p r o fit p er fo r m a n c e.
b u sin ess a r ea s, t h e g r o u p u p g r a des t h e p r o fit
fo r ec a st fo r th e fu l l yea r b y D K K 70 m il l io n t o T h e n et r ein su r a n c e r a t io fo r t h e yea r t o da t e w a s
D K K 630 m il l io n b efo r e t a x . n eg a t iv e b y 20. 8, w h ic h w a s m a in l y du e t o
r ein su r a n c e in c o m e fo l l o w in g t h e st o r m o n 8
T h e g r o u p g en er a t ed t o t a l in c o m e o f D K K 1. 6 J a n u a ry 2005. A n eg a t iv e r ein su r a n c e r a t io is
b il l io n in Q 3 2005. eq u iv a l en t t o in c o m e fo r Al m . B r a n d.

Ea r n in g s p er sh a r e w er e D K K 16 in t h e t h ir d T h e ex p en se r a t io w a s 19. 3 fo r t h e fir st n in e
m o n t h s o f 2005 c o m p a r ed w it h 18. 8 in t h e yea r -
q u a r t er a n d t h e n et a sset v a l u e p er sh a r e w a s
ea r l ier p er io d.
D K K 184 a t 30 Sep t em b er 2005.
T h e Gr o u p ’ s b a n k in g o p er a t io n s su st a in ed t h e
Sh a r eh o l der s’ eq u it y w a s D K K 4. 6 b il l io n a t 30
p o sit iv e p er fo r m a n c e du r in g Q 3 2005, T h e b a n k
Sep t em b er 2005, a g a in st D K K 4. 0 b il l io n a t 31
p o st ed sa t isfa c t o r y r esu l t s in a l l l en din g
D ec em b er 2004.
seg m en t s. T h e b u sin ess v o l u m e is g en er a l l y
g r o w in g , w h il e c o st s r em a in l a r g el y u n c h a n g ed.
Business operations
T h e st o c k b r o k in g a r m w a s a m a j o r c o n t r ib u t o r t o
T h e p r em iu m in c o m e p er fo r m a n c e b y t h e
t h e b a n k ’ s ea r n in g s.
g r o u p ’ s n o n -l ife o p er a t io n s in t h e fir st n in e
m o n t h s o f 2005 w a s n o t sa t isfa c t o r y. Pr em iu m
in c o m e w a s a dv er sel y a ffec t ed b y, a m o n g o t h er
t h in g s, c essa t io n o n c o m m er c ia l b u sin ess ser v ed
b y b r o k er s a n d o n w o r k er s’ c o m p en sa t io n . In

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T h e c r edit p o l ic y c o m b in ed w it h t h e st a b l e • t o g en er a t e a n a n n u a l r et u r n o n eq u it y b efo r e
ec o n o m ic c o n dit io n s l ed t o h ig h l y sa t isfa c t o r y t a x o f t h e m o n ey m a r k et r a t e p l u s 10%
w r it e-do w n s a n d p r o v isio n s. T h e yea r -t o -da t e • fo r a l l b u sin ess a r ea s t o g r o w b y 50% , w h ic h
w r it e-do w n s a n d p r o v isio n s w er e D K K 1 m il l io n , m ea n s
a g a in st D K K 21 m il l io n fo r t h e fir st n in e m o n t h s o g r o w in g t h e n o n -l ife p o r t fo l io t o D K K
o f 2004. 5. 8 b il l io n
o g r o w in g b a n k in g b u sin ess l o a n s a n d
T h e Gr o u p ’ s l ife a n d p en sio n in su r a n c e a dv a n c es t o D K K 15 b il l io n
o p er a t io n s a l so c o n t r ib u t ed t o c o n so l ida t ed o g r o w in g t h e p en sio n fu n d p o r t fo l io t o
p r o fit s, a s th e b u sin ess o u tp er fo r m ed D K K 6. 5 b il l io n n o t in c l u din g 4. 5%
g u a r a n t ees, in dex -l in k ed c o n t r a c t s
ex p ec t a t io n s in a l l seg m en t s. T h e in v est m en t
a n d p r iv a t e p en sio n fu n ds.
r et u r n w a s in l in e w it h t h e a p p l ied b a sis o f
b u il din g a n im a g e o f b ein g a m o n g t h e t o p t w o
c o m p a r iso n .
•
in t h e in du st r y
90% c u st o m er sa t isfa c t io n r a t e w it h 40% o f
T h e c o l l ec t iv e b o n u s p o t en t ia l in t h e l ife a n d
•
t h is g r o u p in dic a t in g t h a t t h ey a r e v er y
p en sio n c o m p a n y im p r o v ed, eq u a l l in g 2. 5% o f
sa t isfied
t h e t ec h n ic a l p r o v isio n s a t 30 Sep t em b er 2005,
• 90% em p l o yee sa t isfa c t io n r a t e.
a g a in st 1. 0% a t 1J a n u a r y 2005.
T h e n ew st r a t eg y is r o o t ed in t h e “ W e t a k e c a r e o f
T h e Gr o u p ’ s a c q u isit io n a n d a dm in ist r a t iv e o u r c u st o m er s” v isio n . T h is a u n iq u e st r a t eg y,
ex p en ses t o t a l l ed D K K 298 m il l io n , a s c o m p a r ed b ec a u se t h e g r o u p o ffer s p r o du c t s a n d p r o v ides
w it h D K K 284 m il l io n in Q 3 2004. ser v ic e a n d a dv ic e t h a t c o n sider s a l l o f t h e
c u st o m er ’ s fin a n c ia l n eeds. Ou r du t y t o t h e
I nv estm ent return c u st o m er do es n o t en d u n t il w e h a v e fu l l y so l v ed
T h e Gr o u p ’ s in t er est a n d fee in c o m e a n d v a lu e t h e a ssig n m en t a n d o u r c u st o m er is h a p p y.
a dj u st m en t s t o t a l l ed D K K 509 m il l io n in Q 3 2005,
c o m p a r ed w it h D K K 613 m il l io n in Q 3 2004. T h e Al m . B r a n d a im s t o u se t h e st r a t eg y t o a c h iev e a
yea r -t o -da t e in v est m en t r et u r n w a s D K K 1,998 n u m b er o f a m b it io u s g r o w t h t a r g et s b y 2010,
m il l io n ( 9M 2004: D K K 1,313 m il l io n ) , w h ic h w a s w h ic h r eq u ir es su b st a n t ia l sa l es in c r ea ses.
in l in e w it h t h e b en c h m a r k r et u r n . C o n seq u en t l y, t h e Gr o u p c o n t in u es t o h ir e n ew
sa l es a n d ser v ic e st a ff a n d t o st r en g t h en t h e
T h e v a st m a j o r it y o f t h e in v est m en t a sset s a r e m a n a g em en t c a p a c it y in t h is a r ea . T h e Al m .
fix ed-in c o m e sec u r it ies. D u r a t io n is a b o u t o n e B r a n d d ob b el tK U N D E c o n c ep t , p r o v idin g
yea r in n o n -l ife o p er a t io n s, w h il e du r a t io n in l ife c u st o m er s w it h sig n ific a n t disc o u n t s o f u p t o 51%
a n d p en sio n o p er a t io n s is a b o u t n in e yea r s, o n t h eir in su r a n c e p r em iu m s if t h ey c o n so l ida t e
w h ic h l a r g el y c o r r esp o n ds t o t h e du r a t io n o f t h e t h eir fin a n c ia l b u sin ess w it h t h e Al m . B r a n d
l ia b il it ies. Gr o u p , is a n im p o r t a n t p a r a m et er in a c h iev in g t h e
sa l es t a r g et s. C o m b in ed w it h a r a n g e o f n ew
ser v ic e c o n c ep t s, t h e in it ia t iv es a l so su p p o r t t h e
N um b er of em pl oy ees
g r o u p ’ s a im o f en h a n c in g c u st o m er l o ya l t y. Ot h er
At 30 Sep t em b er 2005, Al m . B r a n d A/ S h a d 1,645
fa c t o r s o f st r en g t h t h a t w il l c o n t r ib u t e t o a c h iev in g
em p l o yees. At 31 D ec em b er 2004, t h e h ea dc o u n t
t h e t a r g et s a r e t h e g r o u p ’ s a t t r a c t iv e c u st o m er
w a s 1. 654. W h il e t h e o v er a l l n u m b er o f
p o r t fo l io , n ew IT syst em s a n d sa l es t o o l s a n d
em p l o yees fel l , t h e sa l es a n d ser v ic e st a ff
en h a n c ed b u sin ess p r o c esses.
in c r ea sed a n d t h e n u m b er o f st a ff in o t h er
fu n c t io n s dec l in ed.
T h er e w il l b e a st r o n g er fo c u s o n t r a in in g in o r der
t o h el p t h e em p l o yees m eet t h e ev er g r o w in g
Maj o r ev ents
r eq u ir em en t s. F o r t h is p u r p o se, t h e g r o u p w il l
est a b l ish t h e Al m . B r a n d Ac a dem y w h ic h w il l h a v e
S trateg y 2 0 1 0
t h e fa c il it ies t o t r a in n ew a n d ex ist in g em p l o yees.
Al m . B r a n d h a s defin ed a n ew st r a t eg y fo r t h e
In a ddit io n , in c r ea sin g em p l o yee sa t isfa c t io n
p er io d t o 2010. T h e n ew g o a l s o f t h e 2010
l ev el s is a m o n g o u r m a n a g er s’ m o st essen t ia l
st r a t eg y a r e:
c r it er ia fo r su c c ess. At Al m . B r a n d, w e b el iev e t h a t
sa t isfied em p l o yees l ea d t o sa t isfied c u st o m er s.

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O u tlo o k
B a sed o n a g en er a l l y p o sit iv e ex p er ien c e, few
m a jo r c la im s a n d t h e r esu l t in g lo w c l a im s
ex p en ses in t h e n o n -l ife o p er a t io n s, a p o sit iv e
t r en d in t h e b a n k in g a c t iv it ies a n d a st r o n g r et u r n
o n in v est m en t s in t h e l ife a n d p en sio n o p er a t io n s,
t h e Al m . B r a n d Gr o u p u p g r a des t h e fu l l -yea r p r o fit
fo r ec a st b y D K K 70 m il l io n t o D K K 630 m il l io n
b efo r e t a x a n d m in o r it ies.

T h e fo r ec a st is u p g r a ded b y D K K 20 m il l io n t o
D K K 380 m il l io n fo r t h e n o n -l ife in su r a n c e
b u sin ess, b y D K K 30 m il l io n t o D K K 190 m il l io n
fo r t h e b a n k in g o p er a t io n s, b y D K K 10 m il l io n t o
D K K 70 m il l io n fo r t h e l ife a n d p en sio n b u sin ess
a n d fo r t h e Gr o u p ’ s o t h er a c t iv it ies t h e fo r ec a st is
u p g r a ded b y D K K 10 m il l io n t o a l o ss o f a b o u t
D K K 10 m il l io n fo r t h e w h o l e yea r o f 2005.

T h e fu l l -yea r fo r ec a st in c l u des a n im p r o v em en t o f
t h e a n t ic ip a t ed c o m b in ed r a t io fr o m 93 t o 92.

T h e fo r ec a st is b a sed o n t h e l ev el o f in t er est r a t es
p r ev a il in g a t m id-N o v em b er 2005. T h e a c t u a l
p er fo r m a n c e o f t h e g r o u p o v er a l l a n d o f t h e
in div idu a l b u sin ess a r ea s m a y b e a ffec t ed b y
m a j o r c h a n g es in ec o n o m ic c o n dit io n s, c h a n g es
in in t er est r a t es a n d in t h e eq u it y m a r k et s, b a d
a n d do u b t fu l deb t s o r t h e c l a im s ex p er ien c e.

T h e fu l l -yea r c o n so l ida t ed in c o m e fo r 2005 is

ex p ec t ed t o b e in t h e r eg io n o f D K K 6. 5 b il l io n .

Fo rec as t 2 0 0 5
Op g r a de Op g r a de
Au g u st N o v em b er
2005 2005
N o n -l ife 360 380
B a n k in g 160 190
Life 60 70
Ot h er -20 -10
Pr o fit b efo r e t a x
a n d m in o r it ies 560 630

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Non-Life Insurance
Excl. Copenhagen Re

Q 3 Q 3 9 m ont hs 9 m ont hs Y ear

D K K m i lli on 2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4 2 0 0 4

G r os s pr em i u m s 1 ,0 5 3 1 ,0 4 1 3 ,0 4 0 3 ,0 7 6 4 ,1 1 3
Technical interest 4 18 5 4 5 4 8 1
G ro ss claim s ex p enses - 8 01 - 7 06 - 2 , 8 46 - 2 , 115 -2 ,8 8 3
B o nu s p ay m ents and p rem iu m d isco u nts 0 -2 0 -1 -1
U nd erw riting m anag em ent ex p enses - 19 0 - 17 4 -5 8 5 -5 7 8 -7 9 1
P ro f it f ro m reinsu rance 6 0 -3 8 6 3 1 - 113 - 13 3
U nd er w r i t i ng pr of i t / los s 1 2 6 1 3 9 2 94 3 2 3 3 8 6
I nterest, d iv id end s etc. 6 6 5 2 2 08 17 3 2 2 7
C ap ital g ains/ lo sses -2 3 - 19 -8 7 -3 7 - 108
M anag em ent ex p enses relating to
inv estm ent b u siness -3 -3 - 10 - 10 - 13
R etu rn o n technical p ro v isio ns -3 1 -3 3 -9 8 -9 7 - 13 6

T ot al pr of i t / los s on i nv es t m ent s
t r ans f er of t echni cal i nt er es t 9 -3 1 3 2 9 -3 0
O ther o rd inary item s -2 - 17 -7 - 17 -2 0
P r of i t / los s b ef or e t ax 1 3 3 1 1 9 3 0 0 3 3 5 3 3 6
Tax -3 6 0 - 107 0 -2 0
P r of i t / los s af t er t ax 97 1 1 9 1 93 3 3 5 3 1 6

P ro f it/ lo ss o n b u siness in ru n- o f f , net o f reinsu rance 12 1 6 3 -3 5 -5 2

Technical p ro v isio ns 5 ,9 6 1 5 , 2 42 5 , 08 9
I nsu rance assets 5 05 7 5 7 7
S hareho ld ers' eq u ity 1, 7 5 3 1, 2 8 8 1, 2 6 9
To tal assets 8 , 13 9 7 , 5 04 7 , 2 40

C laim s R atio 7 6 .2 % 6 7 .9 % 9 3 .6 % 6 8 .8 % 7 0. 1%
E x p ense R atio 18 . 0% 16 . 8 % 19 . 3 % 18 . 8 % 19 . 2 %
N et reinsu rance R atio -5 .8 % 3 .7 % - 2 0. 8 % 3 .7 % 3 .3 %
C o m b ined R atio 8 8 . 4% 8 8 . 4% 9 2 . 1% 9 1. 3 % 9 2 .6 %
O p erating R atio 8 8 . 1% 8 6 .9 % 9 0. 5 % 8 9 .7 % 9 0. 8 %

R etu rn o n eq u ity b ef o re tax p . a. 3 1% 3 9 % 2 4% 40% 3 0%

R etu rn o n eq u ity af ter tax p . a. 2 3 % 3 9 % 16 % 40% 2 8 %

N on -Li f e In sura n ce
Al m . B r a n d is o n e o f t h e l a r g est n o n -l ife in su r er s Financ ial res u lts
in D en m a r k . N o n -l ife o p er a t io n s in c l u de t h e T h e n o n -l ife o p er a t io n s g en er a t ed a Q 3 p r o fit
p r iv a t e, a g r ic u l t u r a l a n d c o m m er c ia l seg m en t s b efo r e t a x o f D K K 133 m il l io n , c o m p a r ed w it h
a n d t a r g et a b r o a d r a n g e o f c u st o m er s in t h e D K K 119 m il l io n in Q 3 2004. T h e yea r -t o -da t e
D a n ish m a r k et . W e a im t o h a v e sa t isfied a n d l o ya l p r o fit b efo r e t a x w a s D K K 300 m il l io n , a g a in st
c u st o m er s w it h w h o m w e c a n m a in t a in l o n g -t er m D K K 335 m il l io n fo r t h e fir st n in e m o n t h s o f 2004.
b u sin ess r el a t io n sh ip s. T h e g r o u p st r iv es t o b e T h e p er fo r m a n c e w a s a dv er sel y a ffec t ed b y t h e
k n o w n fo r p r o v idin g h ig h -q u a l it y p r o du c t s, st o r m o n 8 J a n u a r y 2005 in t h e a m o u n t o f D K K
c o m p et en t a dv ic e a n d c o r r ec t a n d q u ic k c l a im s 160 m il l io n . T h e fin a n c ia l r esu l t s w er e h ig h l y
h a n dl in g . sa t isfa c t o r y.

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T h e p er fo r m a n c e in Q 3 2005 eq u a l s a n
a n n u a l ised r et u r n o n eq u it y b efo r e t a x o f 31%
a g a in st 39% in t h e yea r -ea r l ier p er io d.
P rem ium s
Gr o ss p r em iu m s w er e D K K 1,053 m il l io n , a n
in c r ea se o f D K K 12 m il l io n , o r 1. 2% , fr o m D K K
1,041 m il l io n in Q 3 2004. T h e yea r -t o -da t e g r o ss
p r em iu m s w er e D K K 3,040 m il l io n , a g a in st D K K
3,076 m il l io n fo r t h e fir st n in e m o n t h s o f 2004.
T h e m o dest g r o w t h r a t e is n o t sa t isfa c t o r y.
Pr em iu m in c o m e w a s a dv er sel y a ffec t ed, a m o n g
o t h er t h in g s, b y c essa t io n o n c o m m er c ia l
b u sin ess ser v ed b y b r o k er s a n d o n w o r k er s’
c o m p en sa t io n b u sin ess. In a ddit io n , sa l es in
2004 fel l sl ig h t l y b el o w ex p ec t a t io n s, p a r t l y a s a
r esu l t o f t h e in su r a n c e a g en t disp u t e in t h e ea r l y
su m m er o f 2004, a n d t h e r esu l t in g effec t s a r e
feedin g t h r o u g h in 2005.
T h e g r o u p r em a in s fo c u sed o n g en er a t in g
p r o fit a b l e b u sin ess o v er a l l a n d t o t h is en d c a r r ies
o u t p r o fit a b il it y a ssessm en t s fo r a l l c u st o m er
g r o u p s o n a n o n g o in g b a sis. C essa t io n o n
c o m m er c ia l b u sin ess ser v ed b y b r o k er s a n d o n
w o r k er s’ c o m p en sa t io n b u sin ess is a r esu l t o f t h is.
In o r der t o sec u r e st r o n g er g r o w t h , Al m . B r a n d
h a s l a u n c h ed a n u m b er o f m ea su r es t o
st r en g t h en sa l es a n d c u st o m er l o ya l t y. In t h a t
c o n n ec t io n , dedic a t ed effo r t s a r e b ein g m a de t o
w r it e a ddit io n a l b u sin ess in sel ec t ed seg m en t s.
M o r eo v er , a st r en g t h en in g o f t h e sa l es fo r c e a n d
t h e g r o u p ’ s d ob b el tK U N D E c o n c ep t a n d
m ea su r es t o im p r o v e t h e a dv ic e a n d ser v ic e
p r o v ided, in c l u din g q u ic k a n d effic ien t b u sin ess
p r o c edu r es, c o n t r ib u t e t o p r o m o t in g t h is t r en d.
Ac c o r din g l y, Al m . B r a n d h a s in c r ea sed it s sa l es
fo r c e, b o t h in t er m s o f in su r a n c e a g en t s a n d
c u st o m er c o n su l t a n t s, a n d t h e g r o u p a im s t o
c o n t in u e t o in c r ea se t h e h ea dc o u n t in t h is a r ea .
Sa l es in t h e n in e m o n t h s t o 30 Sep t em b er 2005
in c r ea sed r el a t iv e t o t h e yea r -ea r l ier p er io d. T h e
sa l es g r o w t h w a s a t t r ib u t a b l e t o t h e l a r g er sa l es
fo r c e a n d t o it s g en er a l l y im p r o v ed effic ien c y.
T h ese m ea su r es a r e ex p ec t ed t o st r en g t h en t h e
t r en d in p r em iu m in c o m e in 2006.
C l aim s ex perienc e
Affec t ed b y a r ea ssessm en t o f t h e g r o ss c l a im s in
r esp ec t o f t h e st o r m o n 8 J a n u a r y 2005, t h e Q 3
c l a im s r a t io w a s 76. 2. T h e yea r -t o -da t e c l a im s
r a t io w a s 93. 6, a g a in st 68. 8 in Q 3 2004.
p a g e 10
Ac c o r din g l y, t h e c l a im s ex p er ien c e w a s sev er el y
im p a c t ed b y t h e st o r m o n 8 J a n u a r y 2005. C l a im s
ex p en ses t o c u st o m er s in c o n n ec t io n w it h t h e
st o r m a r e ex p ec t ed t o t o t a l D K K 870 m il l io n ,
c o n st it u t in g a r ea ssessm en t a s c o m p a r ed w it h t h e
p r ev io u s ex p ec t a t io n s o f D K K 800 m il l io n . N et o f
r ein su r a n c e, c l a im s ex p en ses r el a t ed t o t h e st o r m
w er e a l so r ea ssessed a t D K K 160 m il l io n , a g a in st
t h e p r ev io u s fo r ec a st o f D K K 175 m il l io n . T h ese
r ea ssessm en t s a r e w it h in t h e m a r g in o f
u n c er t a in t y in h er en t in est im a t in g m a j o r c l a im s
ev en t s.
F o l l o w in g a p a r t ic u l a r l y m il d fir st h a l f o f 2005,
ex c l u din g t h e st o r m , t h e t h ir d q u a r t er w a s
c h a r a c t er ised b y m a n y c l a im s in c o n n ec t io n w it h a
ser ies o f w ea t h er -r el a t ed ev en t s su c h a s r a in a n d
l ig h t n in g , n o t l ea st in N o r t h er n J u t l a n d.
Ac c o r din g l y, t h e yea r -t o -da t e w ea t h er c o n dit io n s
h a v e b een a t a n o r m a l l ev el , w h en disr eg a r din g
t h e st o r m .
T h e p er fo r m a n c ew a s p o sit iv el y a ffec t ed b y a
g en er a l l y st r o n g ex p er ien c e in t h e n u m b er o f
m a j o r c l a im s a n db y a g en er a l l y st r o n g c l a im s
ex p er ien c e in t h eg r o u p ’ s p o r t fo l io .
N et reinsuranc e ratio
T h e n et r ein su r a n c e r a t io fo r t h e n in e m o n t h s t o
30 Sep t em b er 2005 w a s n eg a t iv e b y 20. 8 a s a
r esu l t o f r ein su r a n c e c l a im s r el a t ed t o t h e st o r m
o n 8 J a n u a r y. A n eg a t iv e r ein su r a n c e r a t io is
eq u iv a l en t t o in c o m e fo r Al m . B r a n d. T h e yea r -t o -
da t e n et r ein su r a n c e r a t io , ex c l u din g t h e effec t s o f
t h e st o r m , w a s 2. 6.
C osts
T h e ex p en se r a t io w a s in l in e w it h ex p ec t a t io n s a t
19. 3, c o m p a r ed w it h 18. 8 in Q 3 2004.
T h e ex p en se r a t io fo r t h e fu l l yea r is ex p ec t ed t o
b e in l in e w it h 2004. T h e c o st -sa v in g s a c h iev ed b y
t h e g r o u p t h r o u g h n ew a n d m o r e effic ien t
p r o c esses a n d b u sin ess p r o c edu r es w il l b e
in v est ed in a l l o c a t in g m o r e r eso u r c es t o t h e
g r o u p ’ s sa l es a n d ser v ic e fo r c e.
C om b ined ratio
T h e c o m b in ed r a t io w a s 88. 4 in Q 3 2005 w h ic h
w a s in l in e w it h t h e yea r -ea r l ier p er io d. F o r t h e
fir st n in e m o n t h s o f 2005 t h e c o m b in ed r a t io w a s
92. 1 a g a in st 91. 3 in t h e sa m e p er io d l a st yea r .
T h e st o r m o n 8 J a n u a r y 2005 a ffec t ed t h e
c o m b in ed r a t io b y 5. 3 p er c en t a g e p o in t s, r esu l t in g
in a c o m b in ed r a t io , ex c l u din g t h e st o r m , o f 86. 8.
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I nv estm ent return S h orter notic e of term ination on c onsum er

T h e n o n -l ife in v est m en t r et u r n b efo r e a l l o c a t io n o f insuranc e
in t er est w a s D K K 111 m il l io n in t h e fir st n in e Effec t iv e 1 Sep t em b er 2005, Al m . B r a n d a n d t h e
m o n t h s o f 2005, a s c o m p a r ed w it h D K K 126 o t h er m a j o r n o n -l ife in su r er s in D en m a r k
m il l io n in t h e sa m e p er io d o f 2004. sh o r t en ed t h e n o t ic e o f t er m in a t io n o n p er so n a l
in su r a n c e p o l ic ies t o o n e m o n t h a g a in st p a ym en t
Sh o r t -du r a t io n b o n ds c o n t in u e t o m a k e u p t h e o f a fee o f D K K 50 a s c o m p a r ed w it h t h e p r ev io u s
v a st m a j o r it y o f t h e in v est m en t a sset s. n o t ic e o f o n e yea r . In su r a n c e p o l ic ies t h a t h a v e
b een in fo r c e fo r l ess t h a n o n e yea r a r e su b j ec t t o
V a l u e a dj u st m en t s du r in g t h e fir st n in e m o n t h s
h ig h er fees. T h e n ew n o t ic e o f t er m in a t io n is
t o t a l l ed a n eg a t iv e fig u r e o f D K K 87 m il l io n
ex p ec t ed t o b en efit Al m . B r a n d.
in c l u din g t h e effec t o f c h a n g es in t h e disc o u n t in g
r a t e o n p r o v isio n s. Ac c o r din g l y, a sig n ific a n t p a r t
O u tlo o k
o f t h e c a p it a l l o ss w a s a t t r ib u t a b l e t o t h e effec t o f
T h e n o n -l ife b u sin ess c o n t in u ed t o o u t p er fo r m
disc o u n t in g p r o v isio n s a s a r esu l t o f t h e fa l l in g
ex p ec t a t io n s du r in g Q 3 2005. As a r esu l t o f t h is
l ev el o f in t er est r a t es.
fa v o u r a b l e t r en d, t h e fu l l -yea r fo r ec a st h a s b een
u p g r a ded t o D K K 380 m il l io n , a n in c r ea se o f D K K
E v ents in Q 3
20 m il l io n r el a t iv e t o t h e m o st r ec en t g u ida n c e.
T h e u p g r a de w a s m o t iv a t ed b y a g en er a l l y
S torm on 8 J anuary 2 0 0 5
p o sit iv e c l a im s ex p er ien c e, r u n -o ff g a in s a n d few
T h e st o r m o n 8 J a n u a r y w a s t h e w o r st in
m a j o r c l a im s.
D en m a r k sin c e t h e h u r r ic a n e in D ec em b er 1999.
Al m . B r a n d h a s r ec eiv ed 44,000 c l a im s r el a t ed t o
T h e c o m b in ed r a t io fo r t h e fu l l -yea r 2005 is
t h e st o r m . N o r t h er n J u t l a n d w a s p a r t ic u l a r l y h a r d
ex p ec t ed t o b e 92 a g a in st t h e p r ev io u s fo r ec a st o f
h it . C l a im s ex p en ses in c o n n ec t io n w it h t h e st o r m
93.
a ffec t ed t h e p r o fit fo r t h e fir st n in e m o n t h s
n eg a t iv el y b y D K K 160 m il l io n c o n sist in g o f D K K
870 m il l io n in g r o ss c l a im s ex p en ses a n d D K K
710 m il l io n in n et in c o m e fr o m t h e r ein su r a n c e
p r o g r a m m e p r o t ec t in g Al m . B r a n d a g a in st m a j o r
c l a im s ev en t s.

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Banking
Q3 Q3 9 m o n t h s 9 m o n th s Y e a r
D K K m illio n 2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4 2 0 0 4

Interest income 15 3 14 0 4 5 1 4 11 5 5 2
Interest ex p enses - 71 -5 8 - 19 7 - 16 5 - 224
N e t in te r e s t in c o m e 8 2 8 2 2 5 4 2 4 6 32 8
N et f ee a nd commission income, d iv id end s etc. 38 28 125 10 1 137
N e t in te r e s t a n d fe e in c o m e 1 2 0 1 1 0 37 9 34 7 4 6 5
V a l u e a d j u stments 4 9 29 14 6 8 0 8 5
O th er op era ting income 3 3 7 11 14
P r o fit o n fin a n c ia l o p e r a tio n s 1 7 2 1 4 2 5 32 4 38 5 6 4
T ota l costs -8 8 -8 3 - 272 - 26 1 - 36 2
W rite- d ow ns on b a d a nd d ou b tf u l d eb ts etc. 2 -7 -1 - 21 - 30
P rof it on p a rticip a ting interests -2 1 -4 2 3
P r o fit b e fo r e ta x 8 4 5 3 2 5 5 1 5 8 1 7 4
T a x -8 2 -5 2 -6 -6
P r o fit a fte r ta x 7 6 5 5 2 0 3 1 5 2 1 6 8
M inority interests' sh a re of p rof it/ l oss f or th e p eriod - 32 - 18 -8 7 - 38 -4 4
P r o fit a fte r ta x e x c lu d in g m in o r itie s 4 4 37 1 1 6 1 1 4 1 2 4
P r o fit b e fo r e ta x e x c lu d in g m in o r itie s 5 4 37 1 6 9 1 1 6 1 2 6

L oa ns a nd a d v a nces 9 ,8 9 6 8 , 376 8 ,9 0 7
D ep osits 9 ,5 9 4 9 , 28 5 9 , 18 5
S h a reh ol d ers' eq u ity 1, 5 37 1, 14 0 1, 15 9
O f w h ich minority interests 4 9 2 314 323
T ota l a ssets 17, 5 9 0 13, 736 14 , 6 8 0

N et interest ma rg in p . a . 2. 2% 2. 5 % 2. 3% 2. 6 % 2. 6 %
O p era ting income ov er op era ting ex p enses 1. 9 8 1. 6 0 1. 9 4 1. 5 6 1. 4 5
W rite- d ow n ra tio p . a . 0 .0 % 0 . 3% 0 .0 % 0 . 3% 0 . 3%
S ol v ency ra tio 11. 2% 12. 4 % 11. 2% 12. 4 % 12. 4 %
R etu rn on eq u ity b ef ore ta x p . a . 21% 19 % 24 % 21% 16 %
R etu rn on eq u ity a f ter ta x p . a . 17% 20 % 17% 20 % 16 %

Ba n k i n g
Al m . B r a n d B a n k is a m o n g t h e t en l a r g est b a n k s T h e Q 3 2005 p er fo r m a n c e eq u a l s a r et u r n o n
in D en m a r k a n d is b ec o m in g t h e p r in c ip a l b a n k er a v er a g e eq u it y o f 21% p er a n n u m b efo r e t a x ,
t o m o r e a n d m o r e p er so n a l c u st o m er s. In a ddit io n c o m p a r ed w it h 19% p er a n n u m in Q 3 2004. T h e
t o b ein g a fu l l ser v ic e b a n k , o ffer in g it s c u st o m er s yea r -t o -da t e r et u r n o n a v er a g e eq u it y b efo r e t a x
a fu l l r a n g e o f c o n v en t io n a l b a n k in g p r o du c t s, t h e w a s 24% , c o m p a r ed w it h 21% in t h e yea r -ea r l ier
b a n k sp ec ia l ises in p r o v idin g sa v in g s, in v est m en t p er io d.
a n d fin a n c ia l so l u t io n s t o t h e p er so n a l a n d
p r o fessio n a l seg m en t s. T h e b a n k a t t a c h es N et interest and f ee inc om e
p a r t ic u l a r im p o r t a n c e t o it s r o l e a s a n a dv iser a n d N et in t er est in c o m e w a s D K K 82 m il l io n in Q 3
sp a r r in g p a r t n er t o it s c u st o m er s. 2005, in l in e w it h t h e yea r -ea r l ier fig u r e. T h e yea r -
t o -da t e n et in t er est in c o m e w a s D K K 254 m il l io n ,
Financ ial res u lts a 3% in c r ea se fr o m D K K 246 m il l io n in t h e fir st
T h e Al m . B r a n d B a n k Gr o u p p o st ed a p r o fit b efo r e n in e m o n t h s o f 2004. Gr o w t h in n et in t er est
t a x a n d m in o r it ies o f D K K 54 m il l io n in Q 3 2005, in c o m e w a s h el d a t a m o der a t e l ev el du e t o t h e
a s c o m p a r ed w it h D K K 37 m il l io n in Q 3 2004. T h e n a r r o w er in t er est m a r g in .
yea r -t o -da t e p r o fit b efo r e t a x a n d m in o r it ies w a s
D K K 169 m il l io n , a g a in st D K K 116 m il l io n fo r t h e
fir st n in e m o n t h s o f 2004, w h ic h w a s h ig h l y
sa t isfa c t o r y.

p a g e 12
 R e p o r t -B a n k in g
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T h e b a n k in g g r o u p ’ s a c c u m u l a t ed w r it e-
N et fee in c o m e w a s D K K 38 m il l io n , u p fr o m D K K do w n s/ p r o v isio n s t o t a l l ed D K K 221 m il l io n a t 30
28 m il l io n in Q 3 2004 a n d b r in g in g t h e yea r -t o - Sep t em b er 2005, c o r r esp o n din g to a n
da t e n et fee in c o m e t o D K K 125 m il l io n , a 23% a c c u m u l a t ed w r it e-do w n r a t io o f 1. 9 a g a in st 2. 2 a t
in c r ea se fr o m D K K 101 m il l io n in t h e fir st n in e 30 Sep t em b er 2004 a n d 2. 2 a t 31 D ec em b er
m o n t h s o f 2004. T h e fa ir -siz ed im p r o v em en t w a s 2004.
dr iv en b y g r ea t er a c t iv it y in t h e b a n k ’ s
st o c k b r o k in g a n d a sset m a n a g em en t a c t iv it ies. B alanc e s heet
T h e b a n k in g g r o u p ' s b a l a n c e sh eet im p r o v ed
V al ue ad j ustm ents t h a n k s t o t h e l a r g er l o a n p o r t fo l io g en er a t ed,
T h e b a n k ’ s v a l u e a dj u st m en t s t o t a l l ed D K K 48 a m o n g o t h er t h in g s, b y a n in c r ea sed v o l u m e o f
m il l io n in t h e fir st n in e m o n t h s o f 2005. T o t h is n ew c a r a n d h o m e l o a n s t o p r iv a t e c u st o m er s a n d
sh o u l d b e a dded t h e b a n k ’ s sh a r e o f v a l u e g r o w t h in a g r ic u l t u r a l fin a n c e a n d in v est m en t
a dj u st m en t s fr o m su b sidia r ies o f D K K 10 m il l io n , c r edit fa c il it ies. In a ddit io n , t h e b a n k c o n t in u ed t o
w h ic h b r o u g h t t h e v a l u e a dj u st m en t s in c l u ded in r ec o r d a g en er a l in c r ea se in b u sin ess r esu l t in g
t h e b a n k in g g r o u p ’ s p r o fit ex c l u din g m in o r it ies t o fr o m t h e g r o u p ' s d ob b el tK U N D E c o n c ep t .
D K K 58 m il l io n .
L oans and ad v anc es
V a l u e a dj u st m en t s fr o m su b sidia r ies, in c l u din g Lo a n s a n d a dv a n c es a m o u n t ed t o D K K 9. 9 b il l io n
Al m . B r a n d F o r m u e A/ S a n d Al m . B r a n d a t 30 Sep t em b er 2005, a n in c r ea se o f D K K 1. 5
Pa n t eb r ev e A/ S, t o t a l l ed D K K 98 m il l io n , o f w h ic h b il l io n o r 18% fr o m 30 Sep t em b er 2004 a n d a
D K K 10 m il l io n , a s st a t ed a b o v e, a c c r u ed t o Al m . D K K 1. 0 b il l io n o r 11% in c r ea se r el a t iv e t o 31
B r a n d B a n k , w h il e t h e r em a in in g D K K 88 m il l io n D ec em b er 2004.
w a s a t t r ib u t a b l e t o t h e o t h er sh a r eh o l der s o f t h ese
c o m p a n ies. D eposits
D ep o sit s a m o u n t ed t o D K K 9. 6 b il l io n a t 30
Ac c o r din g l y, o v er a l l v a l u e a dj u st m en t s fo r t h e Sep t em b er 2005, a n in c r ea se o f D K K 0. 3 b il l io n o r
en t ir e Al m . B r a n d B a n k Gr o u p in c l u din g 3% fr o m 30 Sep t em b er 2004 a n d a n in c r ea se o f
su b sidia r ies a m o u n t ed t o D K K 146 m il l io n in t h e D K K 0. 4 b il l io n o r 4% fr o m 1 J a n u a r y 2005.
fir st n in e m o n t h s o f 2005.
G uarantees
C osts T h e b a n k in g g r o u p h a d issu ed g u a r a n t ees a n d
T o t a l c o st s in Q 3 2005 a m o u n t ed t o D K K 88 o t h er c o m m it m en t s a m o u n t in g t o D K K 2. 0 b il l io n
m il l io n , a g a in st D K K 83 m il l io n fo r t h e sa m e a t 30 Sep t em b er 2005, r ep r esen t in g a 43% o r 0. 6
p er io d o f l a st yea r . C o st s w er e D K K 272 m il l io n b il l io n in c r ea se r el a t iv e t o 30 Sep t em b er 2004.
fo r t h e yea r t o da t e, a 4% in c r ea se fr o m D K K 261 T h e in c r ea se in g u a r a n t ees p r o v ided w a s dr iv en
m il l io n in t h e sa m e p er io d o f 2004. b y a n in c r ea se in t h e g r o u p ’ s b u sin ess a s a
m o r t g a g e l o a n in t er m edia r y.
T h e in c o m e/ c o st r a t io in c r ea sed t o 1. 94 in t h e fir st
n in e m o n t h s o f 2005 a g a in st 1. 56 in t h e sa m e C apital resourc es
p er io d o f 2004 a n d 1. 45 fo r t h e fu l l yea r 2004. T h e T h e b a n k in g g r o u p ’ s eq u it y st o o d a t D K K 1. 5
in c r ea se w a s a t t r ib u t a b l e t o g r o w t h in t h e b a n k ’ s b il l io n a t 30 Sep t em b er 2005. T h e c a p it a l b a se
c o r e b u sin ess a n d t o su b st a n t ia l c a p it a l g a in s in c l u din g su b o r din a t ed l o a n c a p it a l l ess t a x a sset s
g en er a t ed b y Al m . B r a n d F o r m u e. a l so t o t a l l ed D K K 1. 5 b il l io n . T h e so l v en c y r a t io
w a s 11. 2 a t 30 Sep t em b er 2005.
W rite-d ow ns of l oans etc .
T h e yea r -t o -da t e w r it e-do w n s o f l o a n s c h a r g ed t o
t h e p r o fit a n d l o ss a c c o u n t w a s D K K 1 m il l io n ,
a g a in st D K K 21 m il l io n fo r t h e fir st n in e m o n t h s o f
2004, T h e 9M 2005 r ep o r t in g p er io d w a s h en c e
fa v o u r a b l y a ffec t ed b y ex t r a o r din a r il y m o der a t e
l o sses.

p a g e 13
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E v ents in Q 3 E v ents o c c u rring after 30 Sep tem b er 2 0 0 5

G reater d istrib ution pow er S y nd ic ated l oan

In t h e t h ir d q u a r t er o f 2005 t h e Al m . B r a n d Gr o u p
a n n o u n c ed a m a j o r b u il d-u p o f dec en t r a l ised
dist r ib u t io n c h a n n el s. Pl a n n ed in it ia t iv es in c l u de
t h o r o u g h r en o v a t io n o f t h e Gr o u p ’ s b r a n c h es o v er
t h e n ex t c o u p l e o f yea r s, h ir in g m o r e c u st o m er
a dv iser s a n d a p p o in t in g 12 n ew b r a n c h m a n a g er s
in o r der t o st r en g t h en t h e da y-t o -da y fo c u s o n t h e
sa l e o f b a n k in g a n d in su r a n c e p r o du c t s.
In t h e c o u r se o f it s g en er a l c a sh m a n a g em en t
o p er a t io n s, Al m . B r a n d B a n k est a b l ish ed
syn dic a t ed l o a n fa c il it ies t o t a l l in g EU R 375 m il l io n ,
eq u a l t o a b o u t D K K 2. 8 b il l io n , in N o v em b er 2005,
t h e l a r g est syn dic a t io n b y a D a n ish b a n k in 2005.
T h e syn dic a t ed fa c il it ies in v o l v e m a t u r it ies o f u p t o
sev en yea r s a n d a r e b a c k ed b y sev er a l l ea din g
D a n ish a n d in t er n a t io n a l b a n k s.

S toc k m ark et g am e O u tlo o k

Al m . B r a n d B a n k , T V 2, a D a n ish t el ev isio n T h e Al m . B r a n d B a n k Gr o u p fo r ec a st s a p r o fit
st a t io n , a n d B er l in g sk e T iden de, a D a n ish b efo r e t a x a n d m in o r it ies fo r 2005 in t h e r eg io n o f
n ew sp a p er , h a v e o n c e a g a in l a u n c h ed D en m a r k ’ s D K K 190 m il l io n . T h is c o r r esp o n ds t o a D K K 30
l a r g est st o c k m a r k et g a m e. Pa r t ic ip a n t s a r e g iv en m il l io n u p g r a de r el a t iv e t o t h e m o st r ec en t
t h e c h a n c e t o in v est a h yp o t h et ic a l D K K 500,000 g u ida n c e. T h e in c r ea se is a r esu l t o f c o n t in u in g
in a r ea l ist ic en v ir o n m en t . M o r e t h a n 62,000 h a v e g ro w th in t h e g r o u p ’ s b a n k in g o p er a t io n s,
r eg ist er ed fo r t h is yea r ’ s g a m e. Pr ev io u s st o c k esp ec ia l l y in st o c k b r o k in g a n d a sset
m a r k et g a m es h a v e b een a p o sit iv e ex p er ien c e, m a n a g em en t.
b u il din g a w a r en ess o f Al m . B r a n d a n d g en er a t in g
a n u m b er o f c u st o m er l ea ds.

p a g e 14
 R e p o r t – Li f e In s u r a n c e
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Life Insurance
Q3 Q3 9 m o n t h s 9 m o n th s Y e a r
D K K m illio n 2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4 2 0 0 4

P r e m iu m s 140 129 473 447 723

C la im s in c u r r e d - 148 - 170 - 5 08 - 5 38 - 8 30
In v e s tm e n t r e tu r n a fte r a llo c a tio n o f in te r e s t 18 4 314 940 471 8 5 8
T o ta l u n d e r w r itin g m a n a g e m e n t e x p e n s e s - 16 - 16 -5 0 - 49 - 70
R e in s u r a n c e r e s u lt 2 7 3 9 9
C h a n g e in life in s u r a n c e p r o v is io n s - 45 - 203 - 665 - 25 5 - 638
C h a n g e in c o lle c tiv e b o n u s p o te n tia l - 104 -5 8 - 15 4 - 73 - 16
U n d e r w r itin g p r o fit/lo s s 1 3 3 39 1 2 36
T r a n s fe r r e d in v e s tm e n t r e tu rn 2 10 23 27 35
P r o fit b e fo r e ta x fo r th e p e r io d 1 5 1 3 6 2 39 7 1
T a x 0 0 0 0 0
P r o fit/lo s s a fte r ta x 1 5 1 3 6 2 39 7 1

R e s u lt in life in s u r a n c e
A d m in is tr a tiv e r e s u lt 7 6 17 14 19
In v e s tm e n t r e s u lt 8 4 209 668 18 1 48 1
C h a n g e in p r o v is io n fo r g u a r a n te e d p e n s io n b e n e fits 9 - 15 7 - 5 15 - 118 - 45 8
C h a n g e in c o lle c tiv e b o n u s p o te n tia l - 104 -5 8 - 15 4 - 73 - 16
R is k r e s u lt 17 6 43 26 36
R e in s u r a n c e r e s u lt 2 7 3 9 9
P r o fit b e fo r e ta x 1 5 1 3 6 2 39 7 1
T a x 0 0 0 0 0
P r o fit/lo s s a fte r ta x 1 5 1 3 6 2 39 7 1

P r o v is io n s fo r in s u r a n c e c o n tr a c ts 11, 35 8 10, 18 1 10, 5 45

S h a r e h o ld e r s ' e q u ity 1, 05 7 962 995
T o ta l a s s e ts 12, 639 11, 741 11, 8 19

R e tu r n o n e q u ity b e fo r e ta x p .a . 6% 5 % 8 % 6% 7%
R e tu r n o n e q u ity a fte r ta x p .a . 6% 5 % 8 % 6% 7%
B o n u s ra te 2. 5 % 1. 6% 2. 5 % 1. 6% 1. 0%

In v e s tm e n t r e tu r n in life in s u r a n c e in 9 m o n th s 2 0 0 5
A v e ra g e
a m o u n t
o f c a p ita l R e tu rn
D K K m illio n tie d u p R e tu rn r a tio
In te re s t- b e a r in g a s s e ts 8 , 606 8 8 6 10. 3%
S h a re s 777 18 9 24. 4%
P ro p e rty 1, 235 5 5 4. 5 %
M a n a g e m e n t e x p e n s e s r e la tin g to in v e s tm e n ts a c tiv itie s - 13
T o ta l 1 0 ,6 1 8 1 ,1 1 7 1 0 .6 %

Li f e In sura n ce
T h e Al m . B r a n d Gr o u p ’ s l ife in su r a n c e b u sin ess T o g et h er w it h Al m . B r a n d B a n k ’ s p en sio n
c o n sist s o f l ife in su r a n c e, p en sio n sa v in g s, sa v in g s a c t iv it ies, t h e l ife in su r a n c e b u sin ess
p en sio n in su r a n c e a n d h ea l t h a n d p er so n a l m a k es u p t h e Life & Pen sio n b u sin ess u n it .
a c c iden t in su r a n c e a n d is h a n dl ed b y Al m . B ra n d H o w ev er , t h e fin a n c ia l r esu l t s fr o m t h e b a n k in g
Liv o g Pen sio n A/ S. a c t iv it ies a r e in c l u ded in t h e b a n k ’ s fin a n c ia l
st a t em en t s.

p a g e 15
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Financ ial res u lts E x penses

T h e p r e-t a x p r o fit fo r Q 3 2005 w a s D K K 15
m il l io n , a g a in st D K K 13 m il l io n fo r t h e sa m e
p er io d o f l a st yea r . T h e p r o fit fo r t h e fir st n in e
m o n t h s o f t h e yea r a m o u n t ed t o D K K 62 m il l io n ,
a g a in st D K K 39 m il l io n in 2004. T h e p er fo r m a n c e
w a s sa t isfa c t o r y.
T h er e is n o dir ec t c o m p a r a b il it y w it h t h e 2004
r esu l t s, a s a fu l l r isk p r em iu m o f D K K 42 m il l io n
w a s r ec o g n ised in sh a r eh o l der s’ eq u it y fo r t h e
fir st n in e m o n t h s o f 2005.
T h e yea r -t o -da t e p er fo r m a n c e en t a il s a n
a n n u a l ised r et u r n o n eq u it y o f 8% b efo r e t a x , a s
c o m p a r ed w it h a r et u r n o f 6% in t h e yea r -ea r l ier
p er io d.
Ac q u isit io n a n d a dm in ist r a t iv e ex p en ses t o t a l l ed
D K K 16 m il l io n in Q 3 2005 a n d w a s t h u s
u n c h a n g ed r el a t iv e t o t h e yea r -ea r l ier p er io d.
T h e yea r -t o -da t e ex p en ses w er e D K K 50 m il l io n ,
a g a in st D K K 49 m il l io n a yea r ea r l ier . T o t a l
ex p en ses fo r 2005 t o da t e a r e in l in e w it h
ex p ec t a t io n s.
I nv estm ent return
T h e yea r -t o -da t e r et u r n o n in v est m en t a sset s
b efo r e t a x o n p en sio n in v est m en t r et u r n s t o
c u st o m er s w a s D K K 1,117 m il l io n , a s c o m p a r ed
w it h D K K 558 m il l io n in t h e yea r -ea r l ier p er io d,
c o r r esp o n din g t o a r et u r n o n t h e a v er a g e a m o u n t
o f t ied-u p c a p it a l o f 10. 6% ( 14. 1% p . a . ) in t h e
fir st n in e m o n t h s o f 2005.

P rem ium s T h e Q 3 r et u r n o n in v est m en t a sset s a t t r ib u t a b le

Gr o ss p r em iu m s r o se 9. 0% t o D K K 140 m il l io n in t o sh a r eh o l der s’ eq u it y w a s D K K 23 m il l io n ,
Q 3 2005, a g a in st D K K 129 m il l io n in t h e yea r - eq u iv a l en t t o t h e r et u r n o n t h e a v er a g e a m o u n t
ea r l ier p er io d. T h e yea r -t o -da t e g r o ss p r em iu m s o f t ied-u p c a p it a l o f 2. 2% ( 2. 9% p . a . ) , a g a in st a
w er e D K K 473 m il l io n , a g a in st D K K 447 m il l io n in r et u r n o f D K K 27 m il l io n in t h e sa m e p er io d l a st
t h e fir st n in e m o n t h s o f 2004. yea r .

Gr o ss p r em iu m s w er e in l in e w it h ex p ec t a t io n s. Ac c o r din g l y, t h e r et u r n o n t h e o v er a l l in v est m en t
a sset s b efo r e t a x o n p en sio n in v est m en t r et u r n s
Benef its paid w a s D K K 1,140 m il l io n , eq u a l t o a r et u r n o n t h e
B en efit s p a id in Q 3 2005 a m o u n t ed t o D K K 148 a v er a g e a m o u n t o f t ied-u p c a p it a l o f 9. 9%
m il l io n , a g a in st D K K 170 m il l io n in Q 3 2004. ( 13. 2% p . a . ) .
B en efit s p a id in t h e yea r -t o -da t e w er e D K K 508
m il l io n , a g a in st D K K 538 m il l io n in t h e fir st n in e T h e in v est m en t r et u r n w a s in l in e w it h t h e
m o n t h s o f 2004. T h e a m o u n t o f b en efit s p a id in a p p l ied b a sis o f c o m p a r iso n .
2004 w a s im p a c t ed b y D K K 48 m il l io n a s a r esu l t
o f a disb u r sem en t / p o l ic y t r a n sfer c a m p a ig n B alanc e s heet
t a r g et in g p a id-u p p o l ic ies. T h e l ife g r o u p ’ s sh a r eh o l der s’ eq u it y a m o u n t ed
t o D K K 1,057 m il l io n , eq u iv a l en t t o eq u it y
E x pense and risk resul ts r eser v es o f 7. 3% , a t 30 Sep t em b er 2005. T h e
T h e ex p en se r esu l t , w h ic h ex p r esses t h e so l v en c y r a t io w a s 233.
differ en c e b et w een ex p en se l o a din g a n d
ex p en ses in c u r r ed, a m o u n t ed t o D K K 17 m il l io n T h e c o l l ec t iv e b o n u s p o t en t ia l a m o u n t ed t o D K K
in t h e fir st n in e m o n t h s o f 2005. T h e o v er a l l 248 m il l io n a t 30 Sep t em b er 2005, a g a in st D K K
ex p en se r esu l t w a s sa t isfa c t o r y. 94 m il l io n a t 31 D ec em b er 2004, c o r r esp o n din g
t o a b o n u s r a t e o f 2. 5% , in c r ea sin g b y 1
T h e r isk r esu l t , w h ic h ex p r esses t h e differ en c e p er c en t a g e p o in t r el a t iv e t o 30 J u n e 2005.
b et w een r isk p r em iu m s a n d c l a im s ex p en ses,
t o t a l l ed D K K 43 m il l io n in t h e fir st n in e m o n t h s o f T h e l ife c o m p a n y r em a in ed in t h e D a n ish
2005 a n d w a s a l so sa t isfa c t o r y. F in a n c ia l Su p er v iso r y Au t h o r it y’ s g r een sc en a r io
a t 30 Sep t em b er 2005.

p a g e 16
 R e p o r t – Li f e In s u r a n c e
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O u tlo o k
T h e p r e-t a x p r o fit fo r t h e fu l l yea r 2005 is
ex p ec t ed t o t a l D K K 70 m il l io n , in c l u din g a fu l l r isk
p r em iu m , a n in c r ea se o f D K K 10 m il l io n r el a t iv e
t o t h e m o st r ec en t ex p ec t a t io n s a n n o u n c ed in
c o n n ec t io n w it h t h e r el ea se o f t h e fin a n c ia l
r esu l t s fo r t h e six m o n t h s en ded 30 J u n e 2005.

N o t r a n sfer s fr o m t h e sh a do w a c c o u n t a r e
ex p ec t ed in 2005.

T h e p er fo r m a n c e w il l r el y st r o n g l y o n h o w in t er est
r a t es a n d t h e eq u it y m a r k et s dev el o p .

p a g e 17
 R e p o r t –O th e r A c tiv itie s
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O th er b usi n ess a cti v i ti es

C o p enhagen Re O ther ac tiv ities
C o p en h a g en R e, w h ic h is in r u n o ff, p er fo r m ed in ‘ Ot h er a c t iv it ies’ c o n sist o f c o r p o r a t e ex p en ses
l in e w it h ex p ec t a t io n s. T h e in v est m en t r et u r n a n d v a l u e a dj u st m en t o f o w n sh a r es, et c .
l a r g el y o ffset t h e u n der w r it in g l o ss a n d t h e
m a n a g em en t ex p en ses. Ot h er a c t iv it ies o f t h e Gr o u p c o n t r ib u t ed a l o ss
b efo r e t a x o f D K K 11 m il l io n in Q 3 2005 a g a in st
T h e r esu l t fo r t h e t h ir d q u a r t er fo r 2005 w a s a a D K K 34 m il l io n l o ss in Q 3 2004. T h is b r o u g h t
p r o fit o f D K K 2 m il l io n . T h e c o m p a n y p o st ed a t h e l o ss fo r t h e fir st n in e m o n t h s o f t h e yea r t o
p r e-t a x p r o fit o f D K K 1 m il l io n fo r t h e fir st n in e D K K 14 m il l io n , a g a in st D K K 49 m il l io n in t h e
m o n t h s o f 2005, a s c o m p a r ed w it h D K K 4 m il l io n yea r -ea r l ier p er io d. T h e p er fo r m a n c e in 2004
in t h e yea r -ea r l ier p er io d. w a s a dv er sel y a ffec t ed b y r en t l o st du e t o v a c a n t
p r em ises.
T ec h n ic a l p r o v isio n s t o t a l l ed D K K 1. 7 b il l io n a t
30 Sep t em b er 2005. O u tlo o k
An o v er a l l l o ss o f a b o u t D K K 10 m il l io n is
T h er e is st il l c o n sider a b l e u n c er t a in t y w it h h er ea ft er p r o j ec t ed fo r ‘ Ot h er a c t iv it ies’ fo r t h e fu l l
r esp ec t t o l o sses in c u r r ed, in c l u din g fo r t h e yea r 2005.
W o r ld T r a de C en t er ev en t . T h ese r isk s a r e
fu r t h er desc r ib ed in t h e g r o u p ’s An n u a l R ep o r t
2004.

As Al m . B r a n d A/ S w il l n o t b e p r o v idin g a n y m o r e
c a p it a l t o C o p en h a g en R e, t h e r isk t o Al m . B r a n d
A/ S is l im it ed t o t h e p o t en t ia l l o ss o f t h e c a r r yin g
v a l u e o f t h e in v est m en t in C o p en h a g en R e.
C o p en h a g en R e’ s sh a r eh o l der s’ eq u it y
a m o u n t ed t o D K K 107 m il l io n a t 30 Sep t em b er
2005, eq u a l t o Al m . B r a n d A/ S’ c a r r yin g v a l u e o n
t h e in v est m en t .

A p r o fit o f D K K 10 m il l io n is ex p ec t et fo r t h e fu l l
yea r 2005 in C o p en h a g en R e. T h is is a n
u p g r a de o f D K K 10 m il l io n r el a t iv e t o t h e m o st
r ec en t g u ida n c e p r o v ided a n d is du e t o g r ea t er
in t er est in c o m e t h a n o r ig in a l l y a n t ic ip a t ed.

p a g e 18
 A c c o u n tin g P o lic ie s
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Accoun ti n g P ol i ci es
G E N E RE L IN FO RMA T IO N a n d g a in s a n d l o sses o n t r a n sa c t io n s b et w een t h e
T h e Al m . B r a n d A/ S Gr o u p c o m p l ies w it h t h e c o n so l ida t ed en t er p r ises a r e el im in a t ed.
r eq u ir em en t s o f t h e In t er n a t io n a l F in a n c ia l
R ep o r t in g St a n da r ds ( IF R S) . T h e in t er im r ep o r t Ac c o u n t in g it em s o f su b sidia r ies a r e fu l l y
h a s b een p r ep a r ed in a c c o r da n c e w it h t h e IF R S r ec o g n ised in th e c o n so l ida t ed fin a n c ia l
p r o v isio n s o n r ec o g n it io n a n d m ea su r em en t a n d st a t em en t s. T h e p r o p o r t io n a t e sh a r es o f t h e
w it h t h e p r o v isio n s o f t h e D a n ish F in a n c ia l r esu l t s a n d eq u it y o f su b sidia r y u n der t a k in g s
B u sin ess Ac t . T h e in t er im r ep o r t h a s o t h er w ise a t t r ib u t a b l e t o m in o r it y in t er est s a r e r ec o g n ised a s
b een p r ep a r ed in c o m p l ia n c e w it h t h e p r o v isio n s sep a r a t e it em s in t h e p r o fit a n d l o ss a c c o u n t a n d
l a id do w n b y t h e C o p en h a g en St o c k Ex c h a n g e t h e b a l a n c e sh eet .
a n d w it h du e r eg a r d t o t h e D a n ish F in a n c ia l
Su p er v iso r y Au t h o r it y’ s ex ec u t iv e o r der o n t h e T h e c o n so l ida t ed fin a n c ia l st a t em en t s o f Al m .
p r esen t a t io n o f fin a n c ia l st a t em en t s b y in su r a n c e B ra n d A/ S a r e in c l u ded in t h e c o n so l ida t ed
c o m p a n ies a n d c r edit in st it u t io n s. fin a n c ia l st a t em en t s o f Al m . B r a n d a f 1792 fm b a ,
C o p en h a g en .
C o n seq u en t l y, t h e a c c o u n t in g p o l ic ies fo r t h e
g r o u p h a v e b een c h a n g ed in a n u m b er o f a r ea s. IN T RA -G RO U P T RA N SA C T IO N S
See t h e sep a r a t e sec t io n a t t h e en d o f th is r ep o r t In t r a -g r o u p ser v ic es a r e set t l ed o n a c o st r ec o v er y
fo r fu r t h er in fo r m a t io n o n th e m o st m a t er ia l b a sis o r o n m a r k et t er m s. In t r a -g r o u p a c c o u n ts
c o n seq u en c es. c a r r y in t er est o n m a r k et t er m s. In t r a -g r o u p
t r a n sa c t io n s in sec u r it ies a n d o t h er a sset s a r e
In c o n n ec t io n w it h t h e t r a n sit io n t o t h e n ew set t l ed a t m a r k et p r ic es.
fin a n c ia l r ep o r t in g st a n da r ds a n d c h a n g es in t h e
g r o u p ’ s j o in t t a x a t io n sc h em e, t h e g r o u p h a s FO RE IG N C U RRE N C Y
r ev a l u ed it s t a x a sset s. Al m . B r a n d h a s c h o sen t o Asset s a n d l ia b il it ies den o m in a t ed in fo r eig n
t r ea t t h is r ev a l u a t io n a s a c h a n g e in a c c o u n t in g c u r r en c y a r e r ec o g n ised a t t h e r a t es o f ex c h a n g e
p o l ic ies, a s t h is is b el iev ed t o p r o v ide t h e m o st t r u e p u b l ish ed b y D a n m a r k s N a t io n a l b a n k a t t h e
a n d fa ir v iew . b a l a n c e sh eet da t e. In c o m e a n d ex p en ses
den o m in a t ed in fo r eig n c u r r en c y a r e r ec o g n ised a t
T h e c o m p a r a t iv e fig u r es h a v e b een r est a t ed t h e r a t es o f ex c h a n g e r u l in g a t t h e t r a n sa c t io n
a c c o r din g l y. da t e. Ex c h a n g e g a in s a n d l o sses a r e r ec o g n ised
in t h e p r o fit a n d l o ss a c c o u n t .
T h e Al m . B r a n d A/ S p a r en t c o m p a n y w il l c o n t in u e
t o p r ep a r e it s a n n u a l r ep o r t et c . in a c c o r da n c e w it h On c o n so l ida t io n , t h e p r o fit a n d l o ss a c c o u n ts o f
t h e D a n ish F in a n c ia l Su p er v iso r y Au t h o r it y’ s fo r eig n su b sidia r ies a r e t r a n sl a t ed a t a v er a g e
ex ec u t iv e o r der o n t h e p r esen t a t io n o f fin a n c ia l ex c h a n g e r a t es fo r t h e m o n t h s a n d b a la n c e sh eet
st a t em en t s. See sep a r a t e sec t io n in t h is r ep o rt. it em s a r e t r a n sl a t ed a t t h e ex c h a n g e r a t es
p r ev a il in g o n t h e b a l a n c e sh eet da t e.
T h e im p l em en t a t io n w o r k in c o n n ec t io n w it h t h e
n ew st a n da r ds w il l c o n t in u e t h r o u g h o u t 2005. T h e Ex c h a n g e differ en c es a r isin g o n t h e t r a n sl a t io n o f
in t er im r ep o r t a n d t h e o p en in g b a l a n c e sh eet a r e t h e eq u it y o f fo r eig n su b sidia r ies a t t h e b eg in n in g
u n a u dit ed. o f t h e yea r u sin g t h e ex c h a n g e r a t es r u l in g o n t h e
b a la n c e sh eet da t e a re r ec o g n ised in
C O N SO L ID A T IO N sh a r eh o l der s’ eq u it y. D iffer en c es a r isin g o n t h e
T h e c o n so l ida t ed fin a n c ia l st a t em en t s c o m p r ise t r a n sl a t io n o f p r o fit a n d l o ss a c c o u n t s o f fo r eig n
t h e p a r en t c o m p a n y a n d su b sidia r ies in w h ic h t h e su b sidia r ies a t a v er a g e ex c h a n g e r a t es a n d
p a r en t c o m p a n y h o l ds t h e m a j o r it y o f t h e v o t in g b a l a n c e sh eet it em s a t t h e r a t es r u l in g o n t h e
r ig h t s o r o t h er w ise h o l ds a c o n t r o l l in g in t er est . b a l a n c e sh eet da t e a r e a l so t a k en dir ec t l y t o
C o m p a n ies in w h ic h t h e g r o u p h o l ds b et w een 20% sh a r eh o l der s’ eq u it y.
a n d 50% o f t h e v o t in g r ig h t s o r o t h er w ise
ex er c ises a sig n ific a n t b u t n o t a c o n t r o l l in g RE C O G N IT IO N A N D ME A SU RE ME N T PO L IC IE S
in fl u en c e a r e c o n sider ed a sso c ia t es. Asset s a r e r ec o g n ised in t h e b a l a n c e sh eet w h en it
is p r o b a b l e t h a t fu t u r e ec o n o m ic b en efit s w il l fl o w
T h e c o n so l ida t ed fin a n c ia l st a t em en t s h a v e b een t o t h e Gr o u p a n d t h e v a l u e o f t h e a sset c a n b e
p r ep a r ed b y c o n so l ida t in g it em s o f a u n ifo r m m ea su r ed r el ia b l y. Lia b il it ies a r e r ec o g n ised in t h e
n a t u r e in t h e p r o fit a n d l o ss a c c o u n t s a n d b a la n c e b a l a n c e sh eet w h en it is p r o b a b l e t h a t fu t u r e
sh eet s o f ea c h c o m p a n y. In t er c o m p a n y in c o m e, ec o n o m ic b en efit s w il l fl o w fr o m t h e Gr o u p a n d t h e
ex p en ses, in t r a -g r o u p a c c o u n t s, sh a r eh o l din g s v a l u e o f t h e l ia b il it y c a n b e r el ia b l y m ea su r ed.

p a g e 19
 A c c o u n tin g P o lic ie s
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B A L A N C E SH E E T

Intangib le as s ets V a l u e a dj u st m en t s o f t h e Al m . B r a n d Gr o u p ' s

In t a n g ib l e a sset s a r e m ea su r ed a t c o st l ess o w n er -o c c u p ied p r o p er t ies w h ic h a r e a t t r ib u t a b l e
a c c u m u l a t ed a m o r t isa t io n a n d im p a ir m en t o v er a n t o t h e p o l ic yh o l der s' sh a r e o f t h e in v est m en t
ex p ec t ed l ife o f n o t m o r e t h a n fiv e yea r s. a sset s is, h o w ev er , t r a n sfer r ed t o t h e c o l l ec t iv e
D ep r ec ia t io n is c h a r g ed o n a st r a ig h t -l in e b a sis b o n u s p o t en t ia l .
o v er t h e ex p ec t ed u sefu l l iv es o f t h e a sset s.
T h e y iel d m eth od
On l y ex t er n a l c o st s h a v e b een c a p it a l ised a s T h e o p er a t in g b u dg et r ec o g n ises r en t a l in c o m e
in t er n a l c o st s in c u r r ed c a n n o t b e r el ia b l y fr o m fu l l l et t in g , a s a n y r en t fo r v a c a n t p r em ises o r
m ea su r ed. o t h er l a c k o f r en t a l in c o m e is o ffset a g a in st t h e
est im a t ed v a l u e. Ac c o r din g l y, t h e o p er a t in g b u dg et
L and and b u ild ings r ec o g n ises n o r m a l m a in t en a n c e o f t h e p r o p er t y.
La n d a n d b u il din g s o w n ed b y t h e Gr o u p a r e An y m a j o r a n t ic ip a t ed r en o v a t io n w o r k , r est o r a t io n
c l a ssified a s eit h er in v est m en t p r o p er t ies o r o w n er - w o r k o r r ep a ir is o ffset a g a in st t h e est im a t ed v a l u e.
o c c u p ied p r o p er t ies. Ow n er -o c c u p ied p r o p er t ies
c o m p r ise p r o p er t ies w h ic h Al m . B r a n d g en er a l l y T h e r a t e o f r et u r n is det er m in ed b a sed o n c u r r en t
u ses fo r a dm in ist r a t iv e p u r p o ses. Ot h er p r o p er t ies m a r k et c o n dit io n s fo r t h e t yp e o f p r o p er t y t a k in g
a r e c l a ssified a s in v est m en t p r o p er t ies. in t o a c c o u n t t h e st a t e o f r ep a ir , l o c a t io n , u se,
l essee, l ea ses et c . T h e r a t es o f r et u r n a r e st a t ed
T h e Gr o u p h a s n o t u sed ex t er n a l v a l u er s t o b a sed o n t h e c a l c u l a t ed v a l u e.
det er m in e t h e fa ir v a l u es o f t h e p r o p er t ies.
D eferred tax as s ets
I nv estm ent properties D efer r ed t a x a sset s a r e m ea su r ed a t 28% o f a ll
In v est m en t p r o p er t ies a r e r ec o g n ised a n d differ en c es b et w een a c c o u n t in g a n d ta x a b le
m ea su r ed a t a fa ir v a l u e c a l c u l a t ed in a c c o r da n c e v a l u es, p l u s t a x l o sses t o t h e ex t en t t h ey a re
w it h t h e g u idel in es issu ed b y t h e D a n ish F in a n c ia l ex p ec t ed t o b e o ffset a g a in st fu t u re ta x a b le
Su p er v iso r y Au t h o r it y. T h e fa ir v a l u e is c a l c u l a t ed in c o m e.
o n t h e b a sis o f t h e yiel d m et h o d, w h ic h in v o l v es a
v a l u a t io n o f ea c h in div idu a l p r o p er t y o n t h e b a sis Inv es tm ents in j o int v entu res
o f a n o r m a l o p er a t in g b u dg et a n d a r a t e o f r et u r n . In v est m en t s in j o in t v en t u r es a r e m ea su r ed a t t h e
T h e est im a t ed v a l u e is a dj u st ed fo r sh o r t -t er m p a r en t c o m p a n y’ s sh a r e o f t h e n et a sset v a l u e o f
c ir c u m st a n c es w h ic h c h a n g e t h e ea r n in g s o f t h e t h e c o m p a n y a t t h e b a l a n c e sh eet da t e c a l c u l a t ed
p r o p er t y. T h e a dj u st ed est im a t ed v a lu e in a c c o r da n c e w it h t h e p a r en t c o m p a n y’ s
c o r r esp o n ds t o t h e fa ir v a l u e. a c c o u n t in g p o l ic ies.

O w ner-oc c upied properties Reins u rers ’ s hare fro m ins u ranc e c o ntrac ts
Ow n er -o c c u p ied p r o p er t ies a r e m ea su r ed a t a T h e r ein su r er s’ sh a r e o f t h e t ec h n ic a l p r o v isio n s is
r ev a l u ed a m o u n t c o r r esp o n din g t o t h e fa ir v a l u e a t c a l c u l a t ed a s t h e a m o u n t s ex p ec t ed t o b e r ec eiv ed
t h e r ev a l u a t io n da t e l ess a c c u m u l a t ed dep r ec ia t io n fr o m r ein su r a n c e c o m p a n ies u n der t h e a p p l ic a b l e
a n d v a l u e a dj u st m en t s. T h e fa ir v a l u e is c a l c u l a t ed r ein su r a n c e c o n t r a c t s.
o n t h e b a sis o f t h e D a n ish F in a n c ia l Su p er v iso r y
Au t h o r it y’ s g u idel in es o n t h e yiel d m et h o d, w h ic h O p erating eq u ip m ent
in v o l v es a v a l u a t io n o f ea c h in div idu a l p r o p er t y o n Op er a t in g eq u ip m en t is m ea su r ed a t c o st l ess
t h e b a sis o f a n o r m a l o p er a t in g b u dg et a n d a r a t e a c c u m u l a t ed dep r ec ia t io n . D ep r ec ia t io n is
o f r et u r n . T h e est im a t ed v a l u e is a dj u st ed fo r p r o v ided o n a st r a ig h t -l in e b a sis o v er t h e
sh o r t -t er m c ir c u m st a n c es w h ic h c h a n g e th e est im a t ed u sefu l l iv es o f t h e a sset s t a k in g in t o
ea r n in g s o f t h e p r o p er t y. T h e a dj u st ed est im a t ed a c c o u n t t h e ex p ec t ed r esidu a l v a l u e:
v a l u e c o r r esp o n ds t o t h e fa ir v a l u e.
• C a r s, 5 yea r s
D ep r ec ia t io n is c a l c u l a t ed w it h du e c o n sider a t io n • F u r n it u r e a n d eq u ip m en t , 3-5 yea r s
t o t h e ex p ec t ed u sefu l l ife a n d r esidu a l v a l u e a n d • C o m p u t er s, 3-5 yea r s
is r ec o g n ised in t h e p r o fit a n d l o ss a c c o u n t u n der
a dm in ist r a t iv e ex p en ses. Lea seh o l d im p r o v em en t s a r e c a p it a l ised a n d
a m o r t ised o v er t h eir est im a t ed u sefu l l ife, u p t o fiv e
V a lu e a dj u st m en t s o f o w n er -o c c u p ied p r o p er t ies yea r s, w it h du e c o n sider a t io n t o t h e ex p ec t ed
a re ta k en dir ec t l y t o eq u it y; h o w ev er , a n y r esidu a l v a l u e.
w r it edo w n w h ic h do es n o t c o r r esp o n d t o a
p r ev io u s r ev a l u a t io n sh a l l b e c a r r ied t h r o u g h t h e
p r o fit a n d l o ss a c c o u n t .

p a g e 20
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W r it edo w n is m a de if t h e r ec o v er a b l e a m o u n t o f a n Lo a n s, a dv a n c es a n d o t h er r ec eiv a b l es a t fa ir
a sset is deem ed t o b e l o w er t h a n t h e c a r r yin g v a l u e a r e m ea su r ed a t fa ir v a l u e o n in it ia l a n d
a m o u n t. su b seq u en t r ec o g n it io n .

W r it edo w n s a r e r ec o g n ised u n der t h e sa m e it em s Sec u r it ies so l d u n der a g r eem en t s t o r ep u r c h a se a t

a s t h e a sso c ia t ed dep r ec ia t io n o r a m o r t isa t io n . a l a t er da t e ( r ep o t r a n sa c t io n s) r em a in in t h e
An y w r it edo w n s m a de a r e r ev er sed if t h er e is n o b a l a n c e sh eet . Am o u n t s r ec eiv ed a r e in c l u ded a s
l o n g er a n y b a sis fo r su c h w r it edo w n s. l ia b il it ies p a ya b l e t o t h e p u r c h a ser a n d a r e su b j ec t
t o in t er est a t t h e a g r eed r a t e. T h e sec u r it ies a r e
Inv es tm ent as s ets , lo ans , ad v anc es , etc . m ea su r ed a s if t h ey w er e st il l in c l u ded in t h e
F in a n c ia l in st r u m en t s a r e r ec o g n ised a t fa ir v a l u es b a l a n c e sh eet , a n d m a r k et v a l u e a dj u st m en t s a n d
a t t h e set t l em en t da t e. in t er est et c . a r e r ec o g n ised in t h e p r o fit a n d l o ss
a c c o u n t.
List ed fin a n c ia l in st r u m en t s a r e m ea su r ed a t fa ir
v a l u e b a sed o n t h e c l o sin g p r ic e a t th e b a la n c e Sec u r it ies p u r c h a sed u n der a g r eem en t s t o r esel l
sh eet da t e, o r , in t h e a b sen c e o f a c lo sin g p r ic e, a t a l a t er da t e ( r ev er se t r a n sa c t io n s) a re n o t
a n o t h er p u b l ic p r ic e deem ed t o b e m o st sim il a r in c l u ded in t h e b a l a n c e sh eet . Am o u n t s p a id a r e
t h er et o . r ec o g n ised a s a sset s a n d a r e su b j ec t t o in t er est a t
t h e a g r eed r a t e.
U n l ist ed fin a n c ia l in st r u m en t s a r e m ea su r ed a t t h e
t r a n sa c t io n p r ic e t h a t w o u l d a p p l y in a t r a n sa c t io n C o ntingenc y fu nd s
b et w een in dep en den t p a r t ies c o r r esp o n din g t o t h e T h e c o n t in g en c y fu n ds c a n o n l y b e u sed fo r t h e
fa ir v a l u e. b en efit o f p o l ic yh o l der s. C o n t in g en c y fu n d 2 is
m o r eo v er su b j ec t t o t h e r est r ic t io n t h a t it c a n o n l y
F o r w a r d t r a n sa c t io n s, fu t u r es, o p t io n s, sw a p s a n d b e u sed w h en p er m issio n h a s b een o b t a in ed fr o m
u n set t l ed sp o t t r a n sa c t io n s a r e m ea su r ed a t t h e t h e D a n ish F in a n c ia l Su p er v iso r y Au t h o r it y.
fa ir v a l u es p r ev a il in g a t t h e b a l a n c e sh eet da t e.
O ther res erv es
Lo a n s, a dv a n c es a n d o t h er r ec eiv a b l es a t R ev a l u a t io n s w it h t h e a ddit io n o r dedu c t io n o f t h e
a m o r t ised c o st a r e m ea su r ed o n in it ia l r ec o g n it io n t a x effec t o f p r o p er t ies c l a ssified a s o w n er -
a t fa ir v a l u e p l u s t r a n sa c t io n c o st s l ess fees a n d o c c u p ied p r o p er t ies a r e m a de in sh a r eh o l der s’
c o m m issio n s r ec eiv ed t h a t a r e dir ec t l y r el a t ed t o eq u it y v ia t h e r ev a l u a t io n r eser v es. R ev a l u a t io n s
t h e a c q u isit io n o r issu e o f t h e fin a n c ia l in st r u m en t . t h a t a r e n o l o n g er a p p l ic a b l e a r e r ev er sed.
On su b seq u en t r ec o g n it io n , su c h l o a n s, a dv a n c es
a n d o t h er r ec eiv a b l es w il l b e a dj u st ed t o a m o r t ised T h ep a r t o f t h e r ev a l u a t io n s t h a t c a n b e a t t r ib u t ed
c o st o n a c u r r en t b a sis. t o in su r a n c e c o n t r a c t s w it h b o n u s en t it l em en t is
su b seq u en t l y t r a n sfer r ed t o c o l l ec t iv e b o n u s
W h er e fix ed-r a t e l o a n s m ea su r ed a t a m o r t ised p o t en t ia l in a c c o r da n c e w it h t h e c o n t r ib u t io n r u l es
c o st a r e fa ir v a l u e h edg ed b y in t er est r a t e sw a p s, fil ed.
t h e h edg ed r isk is m ea su r ed a t fa ir v a l u e. On
t er m in a t io n o f t h e h edg e, t h e v a l u e o f t h e h edg ed D iv id end
l o a n s a n d a dv a n c es is a dj u st ed u sin g th e D iv iden ds a r e r ec o g n ised a s a l ia b il it y in t h e
p r in c ip l es fo r m ea su r em en t a t a m o r t ised c o st fin a n c ia l st a t em en t s a t t h e t im e o f a do p t io n b yth e
b a sed o n t h e a dj u st ed v a l u e. sh a r eh o l der s a t t h e a n n u a l g en er a l m eet in g .
Pr o p o sed div iden ds in r esp ec t o f t h e fin a n c ia l yea r
An o n g o in g ev a l u a t io n t a k es p l a c e t o det ec t a n y a r e st a t ed a s a sep a r a t e l in e it em u n der
o b j ec t iv e in dic a t io n o f im p a ir m en t o f t h e c o m p a n y' s sh a r eh o l der s’ eq u it y.
l o a n s, a dv a n c es a n d o t h er r ec eiv a b l es det er m in ed
a t a m o r t ised c o st . In c a se o f a n y o b j ec t iv e O w n s hares
in dic a t io n o f im p a ir m en t , t h e n eed is a ssessed fo r Ow n sh a r es a r e r ec o g n ised in t h e b a l a n c e sh eet a t
w r it in g do w n t h e l o a n , a dv a n c e o r r ec eiv a b l e b y z er o v a l u e. Pu r c h a ses a n d sa l es o f o w n sh a r es
t h e differ en c e b et w een t h e c a r r yin g a m o u n t b efo r e a r e r ec o g n ised a t t h e a c q u isit io n / sel l in g p r ic e
t h e w r it e-do w n a n d t h e p r esen t v a l u e o f t h e dir ec t l y in sh a r eh o l der s’ eq u it y u n der o t h er
ex p ec t ed fu t u r e p a ym en t s fr o m t h e l o a n , a dv a n c e r eser v es.
o r r ec eiv a b l e.

p a g e 21
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Pro v is io ns fo r ins u ranc e c o ntrac ts Pr o v isio n s fo r t h e g u a r a n t eed b en efit s c o m p r ise

U n ea r n ed p r em iu m p r o v isio n s a n d o u t st a n din g o b l ig a t io n s t o p a y b en efit s g u a r a n t eed t o t h e
c l a im s p r o v isio n s a r e m ea su r ed a t t h eir disc o u n t ed p o l ic yh o l der . Pr o v isio n s fo r g u a r a n t eed b en efit s
v a l u e if su c h disc o u n t in g m a t er ia l l y a ffec t s t h e siz e a r e c a l c u l a t ed a s t h e differ en c e b et w een t h e
o f t h e p r o v isio n s. D isc o u n t in g is m a de o n t h e b a sis p r esen t v a l u e o f t h e b en efit s g u a r a n t eed b y t h e
o f t h e 10-yea r p o in t fr o m t h e v a r ia b l e in t er est r a t e in su r a n c e p o l ic y a n d t h e p r esen t v a l u e o f t h e
st r u c t u r e a s det er m in ed b y t h e D a n ish F in a n c ia l ex p ec t ed fu t u r e in su r a n c e a dm in ist r a t iv e c o st s
Su p er v iso r y Au t h o r it y fr o m t im e t o t im e. U sin g l ess t h e p r esen t v a l u e o f t h e a g r eed fu t u r e
h ist o r ic a l l y o b ser v ed p a ym en t p a t t er n s, t h e p r em iu m s. T h e p r o v isio n in c l u des a n est im a t ed
du r a t io n o f t h e p r o v isio n s is est im a t ed, a n d t h e a m o u n t in c o v er o f fu t u r e b en efit s r esu l t in g fr o m
m a t u r it y-dep en den t a v er a g e in t er est ra te a l r ea dy in c u r r ed c l a im s a n d a n est im a t ed a m o u n t
p u b l ish ed b y t h e D a n ish F in a n c ia l Su p er v iso r y fo r in c u r r ed b u t n o t r ep o r t ed c l a im s.
Au t h o r it y is u sed.
T h e b o n u s p o t en t ia l o n fu t u r e p r em iu m s c o m p r ises
U nearned prem ium prov isions o b l ig a t io n s t o p a y a b o n u s c o n c er n in g p r em iu m s
U n ea r n ed p r em iu m p r o v isio n s a r e m ea su r ed a s a g r eed b u t n o t yet du e. F o r t h e p o r t fo l io o f
t h e b est est im a t e o f fu t u r e c l a im s fo r t h e p a r t o f t h e in su r a n c e w it h b o n u s en t it l em en t , t h e b o n u s
in su r a n c e p er io d n o t yet r u n o ff, in c l u din g a l l dir ec t p o t en t ia l o n fu t u r e p r em iu m s is c a l c u l a t ed a s t h e
a n d in dir ec t a dm in ist r a t iv e a n d c l a im s h a n dl in g differ en c e b et w een t h e v a l u e o f t h e g u a r a n t eed
ex p en ses. U n ea r n ed p r em iu m p r o v isio n s w il l , p a id-u p p o l ic y b en efit s a n d t h e v a l u e o f
h o w ev er , a s a m in im u m c o r r esp o n d t o a n a c c r u a l g u a r a n t eed b en efit s. Gu a r a n t eed p a id-u p p o l ic y
o f t h e p r em iu m s c o l l ec t ed. b en efit s a r e b en efit s g u a r a n t eed u n der t h e
in su r a n c e if t h e p o l ic y is c o n v er t ed in t o a p a id-u p
U n ea r n ed p r em iu m p r o v isio n s r el a t in g t o h ea l t h p o l ic y. T h e v a l u e o f t h e g u a r a n t eed p a id-u p p o l ic y
a n d p er so n a l a c c iden t in su r a n c e a r e m a de u p b en efit s is c a l c u l a t ed a s t h e p r esen t v a l u e o f t h e
a c c o r din g t o m a r k et v a l u e p r in c ip l es. T h ey a r e g u a r a n t eed p a id-u p p o l ic y b en efit s p l u s t h e
c a l c u l a t ed a s t h e differ en c e b et w een t h e p r esen t p r esen t v a l u e o f t h e ex p ec t ed fu t u r e a dm in ist r a t iv e
v a l u e o f t h e c o m p a n y’ s l ia b il it ies a n d t h e p r esen t c o st s a sso c ia t ed w it h t h e p a id-u p p o l ic ies.
v a l u e o f t h e p r em iu m s t o b e p a id b y p o l ic yh o l der s
in t h e fu t u r e u sin g a b est est im a t e o f in su r a n c e T h e b o n u s p o t en t ia l o n p a id-u p p o l ic y b en efit s
r isk , c o st s in c u r r ed in m a n a g in g in su r a n c e a n d in c l u des o b l ig a t io n s t o p a y a b o n u s c o n c er n in g
c l a im s h a n dl in g a n d t h e r a t e o f r et u r n o b t a in a b l e in p r em iu m s et c . a l r ea dy du e. T h e b o n u s p o t en t ia l o n
t h e m a r k et . p a id-u p p o l ic y b en efit s is c a l c u l a t ed a s t h e v a l u eo f
t h e p o l ic yh o l der s’ sa v in g s l ess p r o v isio n s fo r th e
T h e p ro v isio n s a r e c a l c u l a t ed b a sed o n a n g u a r a n t eed b en efit s, t h e b o n u s p o t en t ia l o n fu tu re
a ssu m p t io n o fa l o w er m o r t a l it y a n d in v a l idit y t h a n p r em iu m s a n d t h e p r esen t v a l u e o f t h e fu tu re
in th e c o m p a n y’ s b a sis o f c a l c u l a t io n . T h e a dm in ist r a t io n r esu l t s.
r edu c t io n is est im a t ed o n t h e b a sis o f a n em p ir ic a l
a n a l ysis o n th ec o m p a n y’ s in su r a n c e p o r t fo l io . O utstand ing c l aim s prov isions
Ou t st a n din g c l a im s p r o v isio n s c o m p r ise t h e
L if e insuranc e prov isions a m o u n t s p r o v ided a t t h e en d o f t h e yea r a g a in st
Life in su r a n c e p r o v isio n s a r e c a l c u l a t ed a s t h e r ep o r t ed-b u t -n o t -set t l ed c l a im s a s w el l a s a m o u n t s
p r esen t v a l u e o f t h e a g g r eg a t e o b l ig a t io n s fo r fo r c l a im s in c u r r ed-b u t -n o t -r ep o r t ed. T h ey a r e
ex p ec t ed fu t u r e in su r a n c e b en efit s b a sed o n t h e est im a t ed a g a in st t h e b a c k g r o u n d o f t h e p a ym en t
10-yea r p o in t fr o m t h e v a r ia b l e in t er est r a t e h ist o r y, a n d it is t h u s a ssu m ed t h a t t h e fu t u r e c a sh
st r u c t u r e det er m in ed b y t h e D a n ish F in a n c ia l fl o w s w il l r esem b l e t h e h ist o r ic a l p a ym en t s. T h e
Su p er v iso r y Au t h o r it y fr o m t im e t o t im e. Life o u t st a n din g c l a im s p r o v isio n s a l so in c l u de
in su r a n c e p r o v isio n s a r e div ided in t o p r o v isio n s fo r a m o u n ts to c o v er dir ec t a n d in dir ec t c o st s
g u a r a n t eed b en efit s, b o n u s p o t en t ia l o n fu t u r e c o n sider ed n ec essa r y in c o n n ec t io n w it h set t l in g
p r em iu m s a n d b o n u s p o t en t ia l o n p a id-u p p o l ic y t h e c l a im s o b l ig a t io n s.
b en efit s.

T h e p ro v isio n s a r e c a l c u l a t ed b a sed o n a n
a ssu m p t io n o fa l o w er m o r t a l it y a n d in v a l idit y t h a n
in th e c o m p a n y’ s b a sis o f c a l c u l a t io n . T h e
r edu c t io n is est im a t ed o n t h e b a sis o f a n em p ir ic a l
a n a l ysis o n th ec o m p a n y’ s in su r a n c e p o r t fo l io .

p a g e 22
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Ou t st a n din g c l a im s p r o v isio n s a l so c o m p r ise t h e PRO FIT A N D L O SS A C C O U N T

m in im u m p r o v isio n det er m in ed b y t h e D a n ish
F in a n c ia l Su p er v iso r y Au t h o r it y, w h ic h eq u a l s t h e Prem iu m inc o m e
differ en c e b et w een p r o v isio n s fo r a n n u it ies in Gr o ss p r em iu m s c o m p r ise p r em iu m s du e r el a t in g
w o r k er s’ c o m p en sa t io n in su r a n c e c a l c u l a t ed o n a t o in su r a n c e a n d t r ea t ies w h er e t h e r isk p er io d
b a sis o f 2. 75% a n d 2. 0% , r esp ec t iv el y, o n t h e c o m m en c ed b efo r e t h e en d o f t h e fin a n c ia l yea r .
b a l a n c e sh eet da t e a n d a n y c h a n g e c a l c u l a t ed o n
t h e b a sis o f t h e c u r r en t l ev el o f in t er est r a t es a n d Pr em iu m in c o m e, n et o f r ein su r a n c e, is t h e g r o ss
a n ex p ec t ed fu t u r e w a g e in dex a t io n . p r em iu m s fo r t h e yea r a dj u st ed fo r m o v em en t s in
u n ea r n ed p r em iu m p r o v isio n s a n d l ess r ein su r es’
Pr o v isio n s fo r c l a im s r el a t in g t o h ea l t h a n d sh a r e.
p er so n a l a c c iden t in su r a n c e a r e c a l c u l a t ed a t t h e
p r esen t v a l u e o f ex p ec t ed fu t u r e p a ym en t s. T h e T h e p a r t o f t h e c h a n g e in u n ea r n ed p r em iu m
o u t st a n din g c l a im s p r o v isio n s r el a t in g t o h ea l t h p r o v isio n s w h ic h c a n b e a sc r ib ed t o disc o u n t in g is
a n d p er so n a l a c c iden t in su r a n c e a l so in c l u de t r a n sfer r ed t o in t er est in c o m e, et c .
a m o u n ts to c o v er dir ec t a n d in dir ec t c o st s
c o n sider ed n ec essa r y in c o n n ec t io n w it h set t l in g T h e p a r t o f th e c h a n g e in u n ea r n ed p r em iu m
t h e c l a im s o b l ig a t io n s. F o r r ep o r t ed c l a im s, a n p r o v isio n s w h ic h c a n b e a sc r ib ed t o a c h a n g e in
in div idu a l a ssessm en t is m a de o f t h e da t e o f t h e disc o u n t in g r a t e a p p l ied is t r a n sfer r ed t o
p a ym en t . m a r k et v a l u e a dj u st m en t s.

C ol l ec tiv e b onus potential Pr em iu m s r el a t in g t o l ife in su r a n c e c o m p r ise

C o l l ec t iv e b o n u s p o t en t ia l c o m p r ises o b l ig a t io n s t o p r em iu m s du e du r in g t h e yea r a n d sin g l e
p a y a b o n u s in a ddit io n t o th e b o n u s a m o u n ts p r em iu m s l ess l a b o u r m a r k et c o n t r ib u t io n .
a dded t o t h e l ife in su r a n c e p r o v isio n s. T h ea m o u n t
h a s n o t b een a l l o c a t ed t o in div idu a l p o l ic yh o l der s. Interes t inc o m e, etc .
In t er est , div iden ds, et c . in c l u des div iden ds a n d
O ther p ro v is io ns in t er est r ec eiv ed du r in g t h e fin a n c ia l yea r .
Ob l ig a t io n s w h ic h a r e u n c er t a in in r esp ec t o f siz e
o r t im e o f set t l em en t a r e r ec o g n ised a s o b l ig a t io n s T h e it em a l so in c l u des in t er est -l ik e fees a n d
w h en it is l ik el y t h a t t h e o b l ig a t io n w il l r eq u ir e a n c o m m issio n s t h a t a r e a n in t eg r a l p a r t o f t h e
o u t fl o w o f t h e c o m p a n y’ s fin a n c ia l r eso u r c es, a n d effec t iv e r a t e o f in t er est o n fin a n c ia l r ec eiv a b l es
t h e o b l ig a t io n c a n b e m ea su r ed r el ia b l y. Pr o v isio n s a n d p a ya b l es m ea su r ed a t a m o r t ised c o st . F in a l l y,
a r e m ea su r ed a t t h e b est est im a t e o f t h e c o st s t h e it em r ec o g n ises t h e p a r t o f t h e c h a n g e in
n ec essa r y t o m eet t h e r el ev a n t o b l ig a t io n a t t h e u n ea r n ed p r em iu m p r o v isio n s a n d o u t st a n din g
b a l a n c e sh eet da t e. c l a im s p r o v isio n s t h a t c a n b e a sc r ib ed t o
T h e o b l ig a t io n w il l b e disc o u n t ed if su c h disc o u n t in g .
disc o u n t in g h a s a m a t er ia l im p a c t o n t h e siz e o f
t h e p r o v isio n . Fee inc o m e, etc .
F ees a r e a c c r u ed o v er t h e l ifet im e o f t h e
L ong -term em pl oy ee ob l ig ations t r a n sa c t io n s a n d r ec o g n ised in t h e p r o fit a n d l o ss
A p r o v isio n h a s b een m a de t o c o v er a n u m b er o f a c c o u n t a t t h e a m o u n t s r el a t in g t o t h e a c c o u n t in g
em p l o yee b en efit s su c h a s j u b il ee b en efit s, p er io d.
r et ir em en t b o n u ses, et c .
O ther inc o m e fro m inv es tm ent ac tiv ities
O ther financ ial liab ilities T h e it em in c l u des t h e o p er a t in g p r o fit o n
D eb t is m ea su r ed a t a m o r t ised c o st . in v est m en t p r o p er t y a ft er dedu c t io n o f r el a t ed
a dm in ist r a t iv e ex p en ses.
D ep o sit s w it h c edin g c o m p a n ies c o m p r ise
a m o u n t s r ec eiv ed w h ic h a r e k ep t t o c o v er t h e O ther inc o m e
in su r a n c e l ia b il it ies o f o t h er in su r a n c e c o m p a n ies In c o m e der iv ed fr o m a c t iv it ies t h a t c a n n o t b e
t o w a r ds t h e Gr o u p ’ s r ein su r a n c e c o m p a n ies. a sc r ib ed t o t h e c o m p a n y’ s in su r a n c e p o r t fo l io s is
r ec o g n ised u n der o t h er in c o m e.
D ep o sit s fo r fin a n c ia l r ein su r a n c e c o m p r ise
p r em iu m s r ec eiv ed l ess dedu c t io n s fo r c l a im s p a id
eq u iv a l en t t o t h e c o m p a n y’ s l ia b il it ies p u r su a n t t o
t r ea t ies m a de.

p a g e 23
 A c c o u n tin g P o lic ie s
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C laim s inc u rred Op er a t in g ex p en ses r el a t in g t o o w n er -o c c u p ied

C l a im s in c u r r ed in c l u de c l a im s p a id du r in g t h e p r o p er t ies a r e r ec o g n ised u n der a dm in ist r a t iv e
in su r a n c e yea r a dj u st ed fo r m o v em en t s in c l a im s ex p en ses. R en t c o n c er n in g t h e c o m p a n y’ s o w n er -
p r o v isio n s c o r r esp o n din g t o k n o w n a n d a n t ic ip a t ed o c c u p ied p r o p er t ies is n o t r ec o g n ised.
c l a im s r el a t in g t o t h e yea r .
O ther ex p ens es
Am o u n t s t o c o v er ex p en ses fo r su r v eyin g a n d Ex p en ses a sso c ia t ed w it h a c t iv it ies t h a t c a n n o t b e
a ssessm en t a n d o t h er dir ec t o r in dir ec t c o st s a sc r ib ed t o t h e c o m p a n y’ s in su r a n c e p o r t fo l io s is
a sso c ia t ed w it h c l a im s h a n dl in g a r e in c l u ded in t h e r ec o g n ised u n der o t h er ex p en ses.
it em . In a ddit io n , t h e it em in c l u des r u n -o ff r esu l t s
r eg a r din g p r ev io u s yea r s. Res u lt o f c ed ed b u s ines s
F o r r ein su r a n c e c o n tra c ts c o n t a in in g a
T h e p a r t o f t h e c h a n g e in o u t st a n din g c l a im s c o m b in a t io n o f fin a n c ia l t er m s a n d t r a dit io n a l t er m s
p r o v isio n s w h ic h c a n b e a sc r ib ed t o disc o u n t in g is w it h t r a n sfer o f r isk , t h e r isk p r em iu m is r ec o g n ised
t r a n sfer r ed t o in t er est in c o m e, et c . o n a n a c c r u a l s b a sis u n der p r em iu m in c o m e. T h e
a c c r u a l is b a sed o n t h e v a l u e o f t h e c o n t r a c t s a t
T h e p a rt o f t h e c h a n g e in o u t st a n din g c l a im s t h e en d o f t h e yea r . R ea l ised l o sses r el a t in g t o
p r o v isio n s w h ic h c a n b e a sc r ib ed t o a c h a n g e in t h ese c o n t r a c t s a r e in c l u ded a ft er a dj u st m en t fo r
t h e disc o u n t in g r a t e a p p l ied is t r a n sfer r ed t o m o v em en t s in fin a n c ia l dep o sit s u n der c l a im s.
c a p it a l g a in s/ l o sses.
R ein su r a n c e p r em iu m s c eded a n d r ein su r es’
C l a im s a n d b en efit s r el a t in g t o l ife in su r a n c e sh a r e r ec eiv ed a r e a c c r u ed a n d t a k en t o t h e p r o fit
c o m p r ise c l a im s du e du r in g t h e yea r , a m o u n t s a n d l o ss a c c o u n t a c c o r din g t o t h e sa m e p r in c ip l es
p a id fo r r ep u r c h a ses a n d b o n u s a m o u n t s p a id in a s t h o se a p p l ied fo r t h e c o r r esp o n din g it em s u n der
c a sh . t h e g r o ss b u sin ess.

O ther ex p ens es as s o c iated w ith inv es tm ent Mark et v alu e ad j u s tm ents

ac tiv ities M a r k et v a l u e a dj u st m en t s in c l u de a ll r ea l ised a n d
T h e it em in c l u des a m o u n t s a sso c ia t ed w it h t h e u n r ea l ised g a in s a n d l o sses o n in v est m en t a sset s,
m a n a g em en t o f in v est m en t a sset s. B r o k er a g e a n d ex c ep t fo r v a l u e a dj u st m en t o f su b sidia r y a n d
c o m m issio n r el a t in g t o t h e p u r c h a se a n d sel l in g o f a sso c ia t ed c o m p a n ies a n d r ev a lu a t io n s o f o w n er -
sec u r it ies is r ec o g n ised u n der m a r k et v a l u e o c c u p ied p r o p er t ies.
a dj u st m en t s.
T ax o n p ens io n inv es tm ent retu rns
W rited o w n o n lo ans , ad v anc es and rec eiv ab les T a x o n p en sio n in v est m en t r et u r n s in c l u des t h e t a x
An o n g o in g ev a l u a t io n t a k es p l a c e t o det ec t a n y l ev ied o n r et u r n s r el a t in g t o t h e Gr o u p ’ s l ife
o b j ec t iv e in dic a t io n o f im p a ir m en t o f t h e c o m p a n y' s in su r a n c e a c t iv it ies, n o t w it h st a n din g w h et h er t h e
l o a n s, a dv a n c es a n d o t h er r ec eiv a b l es det er m in ed t a x is p a ya b l e n o w o r a t a l a t er da t e.
a t a m o r t ised c o st . If t h er e is a n y o b j ec t iv e
in dic a t io n o f im p a ir m en t , t h e n eed t o w r it e do w n T ax
t h e l o a n , a dv a n c e o r r ec eiv a b l e is a ssessed. See Al m . B r a n d A/ S is t a x ed j o in t l y w it h a n u m b er o f
“ B a l a n c e sh eet ” a b o v e fo r fu r t h er det a il s. su b sidia r ies o f t h e Gr o u p . C u r r en t g r o u p t a x a n d
a n y c h a n g es in p r o v isio n s fo r defer r ed t a x a r e
A c q u is itio n c o s ts and ad m inis trativ e ex p ens es c h a r g ed t o t h e p r o fit a n d l o ss a c c o u n t .
T h e p a r t o f t h e in su r a n c e o p er a t in g ex p en ses t h a t
c a n b e a sc r ib ed t o a c q u isit io n a n d r en ew a l o f t h e SE G ME N T IN FO RMA T IO N
in su r a n c e p o r t fo l io is r ec o g n ised u n der a c q u isit io n B u sin ess seg m en t s a r e t h e Gr o u p ’ s p r im a r y
c o st s. Ac q u isit io n c o st s a r e g en er a l l y c h a r g ed t o seg m en t , w h il e t h e g eo g r a p h ic a l seg m en t is t h e
t h e p r o fit a n d l o ss a c c o u n t w h en t h e in su r a n c e sec o n da r y seg m en t b ec a u se t h e Gr o u p p r im a r il y
t a k es effec t . c o v er s t h e D a n ish m a r k et .

Adm in ist r a t iv e ex p en ses in v o l v e t h e c o st s r el a t ed T h e seg m en t in fo r m a t io n fo l l o w s t h e Gr o u p ’ s

to m a n a g in g t h e c o m p a n y’ s in su r a n c e p o r t fo l io . in t er n a l r ep o r t in g st r u c t u r e, r efl ec t in g a r isk
Adm in ist r a t iv e ex p en ses a r e a c c r u ed t o m a t c h t h e a l l o c a t io n o n r el ev a n t b u sin ess a r ea s.
fin a n c ia l yea r .
M o r e det a il ed seg m en t in fo r m a t io n is p r o v ided in
t h e m a n a g em en t ’ r ep o r t .

p a g e 24
 B a la n c e S h e e t
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Ba l a n ce S h eet - Group
30th S e p t e m b e r 30th S e p t e m b e r Y e a r
D K K m illio n 2 005 2 004 2 004

Assets
Intangible assets 1 0 1 1 0 3 1 0 4
O w ner - o c c u p ied p r o p er ties 6 1 5 6 1 6 6 1 1
D ef er r ed tax assets 4 5 3 5 9 9 6 0 5
P ar tic ip ating inter ests in j o int v entu r es 2 1 2 0 2 0
R einsu r er s' sh ar e o f insu r anc e c o ntr ac ts 1 ,2 4 9 9 4 2 6 5 6
O th er assets 2 ,0 6 0 2 ,2 8 5 2 ,0 8 5
L o ans 9 ,8 9 8 8 ,3 8 7 8 ,9 1 3
Inv estm ent p r o p er ties 6 7 3 6 7 0 6 7 0
Inv estm ent assets 2 2 ,4 7 9 2 0 ,0 6 5 2 0 ,5 9 9
A m o u nts d u e f r o m c r ed it institu tio ns and c entr al bank s 3 ,3 9 4 2 ,2 7 5 2 ,3 2 4
C ash in h and and d em and d ep o sits 3 1 9 5 9 1 2 2 3
Total assets 41,262 3 6,5 5 3 3 6,8 10

Liabilities
S h ar e c ap ital 2 ,1 1 7 1 ,7 8 8 1 ,7 8 8
R eser v es, r etained p r o f it etc . 1 ,9 9 2 1 ,8 9 8 1 ,9 3 0
M ino r ity inter ests 4 9 9 3 2 2 3 3 1
C o nso lid ated eq u ity 4 ,6 0 8 4 ,0 0 8 4 ,0 4 9

S u bo r d inated lo an c ap ital 3 0 0 3 0 0 3 0 0
P r o v isio ns f o r insu r anc e c o ntr ac ts 1 9 ,9 0 2 1 8 ,3 4 2 1 8 ,1 0 2
O th er p r o v isio ns 2 7 4 2 6 6 3 1 1
D ef er r ed tax liabilities 5 1 5 5 5 5
O th er liabilities 2 ,6 6 5 2 ,4 7 7 2 ,3 3 8
D ep o sits 9 ,1 0 7 8 ,7 7 7 8 ,5 0 0
A m o u nts o w ed to c r ed it institu tio ns and c entr al bank s 4 ,3 5 5 2 ,3 2 8 3 ,1 5 5
41,262 3 6,5 5 3 3 6,8 10

N o te 1 O w n S h a re s
N o te 2 T r a n s itio n t o IF R S

p a g e 25
 P r o f i t a n d l o ss a cco u n t
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Profit and loss account - G roup

Q3 Q3 9 m o n t h s 9 m o n th s Y e a r
D K K m illio n 2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4 2 0 0 4

Income
Premium income 1 , 20 4 1 , 1 70 3, 546 3, 538 4, 857
I nt eres t income et c. 352 331 1 , 0 56 1 ,0 1 1 1 , 350
F ee income et c. 33 23 1 0 9 89 1 21
O t h er inv es t ment income -1 2 4 1 0 1 1
O t h er income 8 3 20 39 45
Total income 1 ,5 9 6 1 ,5 2 9 4 , 7 35 4 ,6 8 7 6 , 38 4

E x p ens es
C l a ims incurred - 9 81 -9 1 3 - 3, 432 - 2, 80 6 - 3, 877
I nt eres t ex p ens es - 74 - 59 -1 9 0 - 1 72 - 245
O t h er inv es t ment ex p ens es -1 4 - 38 - 48 - 75 - 81
Prov is ions f or b a d a nd d oub t f ul d eb t s 5 27 2 - 34 - 51
A cq uis it ion a nd a d minis t ra t iv e ex p ens es - 29 8 - 284 - 9 20 -9 1 8 - 1 , 29 5
O t h er ex p ens es -8 -1 8 - 20 -1 9 - 25
Total ex p ens es - 1 , 37 0 -1 ,2 8 5 -4 ,6 0 8 -4 ,0 2 4 -5 ,5 7 4

R es ul t of b us ines s ced ed 55 - 31 626 1 7 - 63

C h a ng e in l if e ins ura nce p rov is ions - 42 - 20 7 - 670 - 255 - 639
C h a ng e in col l ect iv e b onus p ot ent ia l -1 0 4 - 58 - 1 54 - 73 -1 6
E x ch a ng e ra t e a d j us t ment s 1 24 259 833 21 3 576
T a x on p ens ion inv es t ment ret urns - 31 - 55 - 1 59 - 80 - 1 45
P r o fit b e fo r e ta x 2 2 8 1 5 2 6 0 3 4 8 5 5 2 3
T a x - 40 -5 - 1 50 -9 7 -9 9
P r o fit a fte r ta x 1 8 8 1 4 7 4 5 3 38 8 4 2 4

P r o fit b e fo r e ta x is d is tr ib u te d a s fo llo w s
A l m. B ra nd ' s s h a re of t h e p rof it f or t h e p eriod 1 9 3 1 38 51 8 445 477
M inorit y s h a reh ol d ers ' s h a re of t h e p rof it f or t h e p eriod 35 1 4 85 40 46
2 2 8 1 5 2 6 0 3 4 8 5 5 2 3

P r o fit a fte r ta x is d is tr ib u te d a s fo llo w s

A l m. B ra nd ' s s h a re of t h e p rof it f or t h e p eriod 1 52 1 31 367 352 382
M inorit y s h a reh ol d ers ' s h a re of t h e p rof it f or t h e p eriod 36 1 6 86 36 42
1 8 8 1 4 7 4 5 3 38 8 4 2 4

E a rning s p er S h a re, D K K 80 7 6 1 6 1 6 1 7
D il ut ed E a rning s p er S h a re, D K K 80 7 6 1 6 1 6 1 7

p a g e 26
 S t a t em en t o f ch a n g es i n eq u i t y
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S tatem ent of ch ang es in eq uity

Share- C o n s o li-
Share C o n t i n g en c y R et ai n ed ho l d ers ' M i n o ri t y d at ed
D K K m illio n c ap i t al fu n d s p ro f i t eq u i t y i n t eres t s eq u i t y
A t 1 J an u ary 2 0 0 5 1 , 7 88 1 82 1 ,6 6 2 3 ,6 3 2 3 2 3 3 ,9 5 5

Changes in accounting policies

Consolid ation of P ensionsk assen und er A lm . B r and A / S 8 8

E q ualisation pr ov isions 4 5 4 5 4 5
D iscounting of insur ance contr acts 5 0 5 0 5 0
R ecognition of claim s hand ling ex penses -1 4 2 -1 4 2 -1 4 2
P r ov isions f or insur ance contr acts r elating to health
and per sonal accid ent insur ance -4 1 -4 1 -4 1
E m ploy ee b enef its -4 7 -4 7 -4 7
R ecognition of loans etc. 1 6 1 6 1 6
A m or tisation of f ees -6 -6 -6
R ecognition of inter est r ate sw aps at f air v alue -2 9 -2 9 -2 9
F air v alue hed ging of f ix ed - r ate loans 1 4 1 4 1 4
O ther changes -4 -4 -4
D ef er r ed tax on contingency f und s -5 5 -5 5 -5 5
Change in tax asset 2 85 2 85 2 85
T o t al c han g es at t ri b u t ab l e t o I A S/ I F R S 86 86 8 9 4

R es t at ed at 1 J an u ary 2 0 0 5 1 , 7 88 1 82 1 ,7 4 8 3 ,7 1 8 3 3 1 4 ,0 4 9

P r of it/ loss f or the per iod 3 6 7 3 6 7 86 4 5 3

S ale of ow n shar es 2 4 2 4 0 2 4
Change in m inor ity inter ests' shar e 82 82

A t 3 0 Sep t em b er 2 0 0 5 1 , 7 88 1 82 2 ,1 3 9 4 ,1 0 9 4 9 9 4 ,6 0 8

p a g e 27
 S eg m en t R ep o r t i n g
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Profit and loss account b y b usiness seg m ents – G roup

9 M ont h s 2 005

N on- lif e L if e C ons olid a t ion

DKK million I ns u r a nc e B a nk ing I ns u r a nc e O th e r A d j u s t me nt s G r ou p

Premium income 3, 040 0 473 33 0 3, 5 46

I nt eres t income et c. 207 45 1 321 8 7 - 10 1, 05 6
F ee income et c. 0 125 0 0 - 16 109
O t h er inv es t ment income 1 0 5 5 0 -5 2 4
O t h er income 13 7 0 0 0 20
Total income 3 ,2 6 1 5 8 3 8 4 9 1 2 0 -7 8 4 ,7 3 5

C l a ims incurred - 2, 8 9 1 0 - 5 08 - 33 0 - 3, 432

I nt eres t ex p ens es 0 - 19 7 -1 -2 10 - 19 0
O t h er inv es t ment ex p ens es - 10 0 - 14 - 40 16 - 48
Prov is ions f or b a d a nd d oub t f ul d eb t s 0 -1 0 3 0 2
A cq uis it ion a nd a d minis t ra t iv e ex p ens es -5 8 5 - 272 -5 0 -6 5 5 2 - 9 20
O t h er ex p ens es - 20 0 0 0 0 - 20
Total ex p ens es - 3 , 5 06 -4 7 0 -5 7 3 -1 3 7 7 8 - 4 , 6 08

R es ul t of b us ines s ced ed 6 32 0 3 -9 0 6 26
C h a ng e in l if e ins ura nce p rov is ions 0 0 -6 6 5 -5 0 - 6 70
C h a ng e in col l ect iv e b onus p ot ent ia l 0 0 - 15 4 0 0 - 15 4
E x ch a ng e ra t e a d j us t ment s -8 7 142 76 0 18 0 8 33
T a x on p ens ion inv es t ment ret urns 0 0 - 15 8 -1 0 - 15 9
P r of it b e f or e t a x 3 00 2 5 5 6 2 -1 4 0 6 03

p a g e 28
 N o t es
● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

N ote 1 O w n S h ares - G roup

9 Months Y e a r
D K K m i l l i on 2 005 2 004

Own shares held at beginning of year 0 0

V alu e adj u stm ents 2 3 9
A dditions 7 3 5 7
D isp osals - 96 -6 6
B ook v a l u e 0 0

N om inal v alu e, beginning of year 3 5 4 0

A dditions, nom inal v alu e 2 8 2 9
D isp osals, nom inal v alu e -3 7 -3 4
N om i na l v a l u e 2 6 3 5

N u m ber of shares held at beginning of year 4 3 9, 05 2 4 97 , 8 8 1

A dditions, nu m ber of shares 3 4 4 ,4 8 2 3 6 2 , 91 3
D isp osals, nu m ber of shares - 4 6 2 , 6 93 -4 2 1 ,7 4 2
N u m b e r of sha r e s he l d a t p e r i od - e nd 3 2 0, 8 4 1 4 3 9, 05 2

P e r c e nta g e of sha r e c a p i ta l a t p e r i od - e nd 1 .4 % 2 . 0%

p a g e 29
 N o t es
● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

N ote 2 T ransition to I F R S
A s s ta te d in ‘A c c o u n t in g p o lic ie s ’ a b o v e , t h e A lm . B r a n d G r o u p w ill p r e s e n t its a n n u a l r e p o r t in a c c o r d a n c e
w ith th e in te r n a t io n a l f in a n c ia l r e p o r t in g s ta n d a r d s ( IF R S ) . C o n s e q u e n t ly , th e a c c o u n tin g p o lic ie s f o r th e G r o u p
h a v e b e e n c h a n g e d in a n u m b e r o f a r e a s .

T h e f in a n c ia l im p a c t f r o m th e tr a n s itio n t o IF R S e tc . is a s f o llo w s :

Equity reconciliation at 31 December 2004 and profit for 2004

O p e ning e q u it y E q u it y a t 3 1
DKK million 2 0 0 4 R e s u lt 2 0 0 4 De c e mb e r 2 0 0 4
2 0 0 4 p olic ie s 3 ,1 9 0 4 3 3 3 ,6 3 2

Minority interests 2 7 7 44 3 2 3
C onsol id a tion of P ensionsk a ssen u nd er A l m . B ra nd A / S 10 -2 8
T ota l m inority interests 2 87 4 2 3 3 1
E q u a l isa tion p rov isions 4 5 0 4 5
D isc ou nting of insu ra nc e c ontra c ts 4 0 10 5 0
R ec og nition of c l a im s h a nd l ing ex p enses - 14 2 0 - 14 2
P rov isions f or insu ra nc e c ontra c ts rel a ting to h ea l th
a nd p ersonel a c c id ent insu ra nc e -2 7 - 14 -4 1
E m p l oyee b enef its -3 8 -9 -4 7
R ec og nition of l oa ns 19 -3 16
A m ortisa tion of f ees -7 1 -6
R ec og nition of interest ra te sw a p s a t f a ir v a l u e -3 7 8 -2 9
F a ir v a l u e h ed g ing of f ix ed - ra te l oa ns 14 0 14
O th er c h a ng es -4 0 -4
D ef erred ta x on c onting enc y f u nd s -5 5 0 -5 5
C h a ng e in ta x a sset 3 2 9 -4 4 2 85
I A S / I F R S p olic ie s 3 ,6 1 4 4 2 4 4 ,0 4 9

p a g e 3 0
 N o t es
● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Equity reconciliation at 30 September 2004 and profit for 9 months 2004

P r of it E q u it y a t 3 0
O p e ning e q u it y 9 M ont h s S e p t e mb e r
DKK million 2 0 0 4 2 0 0 4 2 0 0 4

2 0 0 4 p olic ie s 3 ,1 9 0 3 7 7 3 ,5 7 4
Minority interests 2 7 7 38 31 4
C onsol id a tion of P ensionsk a ssen u nd er A l m . B ra nd A / S 1 0 -2 8
T ota l m inority interests 2 87 36 32 2
E q u a l isa tion p rov isions 4 5 2 9 7 4
D isc ou nting of insu ra nc e c ontra c ts 4 0 8 4 8
R ec og nition of c l a im s h a nd l ing ex p enses -1 4 2 0 -1 4 2
P rov isions f or insu ra nc e c ontra c ts rel a ting to h ea l th
a nd p ersonel a c c id ent insu ra nc e -2 7 -4 - 31
E m p l oyee b enef its - 38 -6 -4 4
R ec og nition of l oa ns 1 9 -5 1 4
A m ortisa tion of f ees -7 3 -4
R ec og nition of interest ra te sw a p s a t f a ir v a l u e - 37 1 1 -2 6
F a ir v a l u e h ed g ing of f ix ed - ra te l oa ns 1 4 -1 1 3
O th er c h a ng es -4 0 -4
D ef erred ta x on c onting enc y f u nd s -5 5 0 -5 5
C h a ng e in ta x a sset 32 9 -6 0 2 6 9
IAS/IFRS policies 3 ,6 1 4 3 8 8 4 ,0 0 8

C h a n ges t o t h e a c c ou n t i n g p ol i c i es a r e des c r i b ed
b el ow : O w n er -oc c u p i ed p r op er t i es a r e s t a t ed a t th e
r ev a l u ed a m ou n t c or r es p on di n g t o t h e f a i r v a l u ea t
Basis of consolidation t h e r ev a l u a t i on da t e l es s dep r ec i a t i on . T h e
A l l gr ou p c om p a n i es in w h ic h A lm . B r a n d r ev a l u ed a m ou n t i s c a l c u l a t ed u s i n g a y i el d
ex er c i s es a c on t r ol l i n g i n f l u en c e a r e f u l l y m et h od i n a c c or da n c e w i t h t h e gu i del i n es i s s u ed
c on s ol i da t ed. A c c or di n gl y , t h e f i n a n c i a l s t a t em en t s b y t h e D a n i s h F i n a n c i a l S u p er v i s or y A u t h or i t y .
of t h e A l m . B r a n d B a n k G r ou p , f or w h i c h s i n gl e
l i n e c on s ol i da t i on w a s p r ev i ou s l y u s ed, a r e V a l u e a dj u s t m en t s of ow n er -oc c u p i ed p r op er t i es
c on s ol i da t ed i n f u l l , a n d u n l i k e p r ev i ou s l y s h a ll b e ta k en di r ec t l y t o eq u i t y , h ow ev er , a
P en s i on s k a s s en u n der A l m . B r a n d A / S i s a l s o r edu c t i on i n v a lu e w h i c h does n ot c or r es p on d t o a
c on s ol i da t ed. A c on t r ol l i n g i n f l u en c e i s a c h i ev ed b y p r ev i ou s r ev a l u a t i on s h a l l b e c a r r i ed t h r ou gh t h e
di r ec t l y or i n di r ec t l y h ol di n g or h a v i n g t h e di s p os a l p r of i t a n d l os s a c c ou n t.
of m or e t h a n 5 0 % of t h e v ot i n g r i gh t s or ot h er w i s e
c on t r ol l i n g t h e r el ev a n t en t er p r i s e. R ev a l u a t i on of t h e A l m . B r a n d G r ou p ' s ow n er -
oc c u p i ed p r op er t i es w h ic h is a ttr ib u ta b le to th e
I n t er c om p a n y i n c om e, ex p en s es , i n t r a gr ou p p ol i c y h ol der s ' s h a r e of t h e i n v es t m en t a s s et s i s ,
a c c ou n t s , s h a r eh ol di n gs a n d di v i den ds a n d ga i n s h ow ev er , t r a n s f er r ed t o t h e c ol l ec t i v e b on u s
a n d l os s es on t r a n s a c t i on s b et w een th e p ot en t i a l .
c on s ol i da t ed en t er p r i s es a r e el i m i n a t ed.
D ep r ec i a t i on i s c a l c u l a t ed w i t h du e c on s i der a t i on
P r e se ntation and com p ar ativ e fig u r e s t o t h e ex p ec t ed u s ef u l l i f e a n d r es i du a l v a l u e a n d
I n a ddi t i on t o t h e c h a n ged a c c ou n t i n g p ol i c i es , i s r ec ogn i s ed i n t h e p r of i t a n d l os s a c c ou n t ov er
c er t a i n r ec l a s s i f i c a t i on s a n d l a y ou t c h a n ges h a v e t h e u s ef u l l i v es of t h e a s s et s .
b een m a de. C om p a r a t i v e f i gu r es i n r es p ec t of
2 0 0 4 h a v e b een r es t a t ed t o r ef l ec t t h e n ew l a y ou t N o r en t i s c a l c u l a t ed on ow n er -oc c u p i ed p r op er t i es
a n d a c c ou n t i n g p ol i c i es . T h e c on s ol i da t ed b a l a n c e a t G r ou p l ev el . A c c or di n gl y , ex p en s es r el a t ed t o
s h eet i s a r r a n ged i n i n c r ea s i n g or der of l i q u i di t y . ow n er -oc c u p i ed p r op er t i es on l y c om p r i s e
op er a t i n g ex p en s es a n d dep r ec i a t i on a n d w r i t e-
L and and b u ilding s dow n s .
L a n d a n d b u i l di n gs c l a s s i f i ed a s ow n er -oc c u p i ed
p r op er t i es m a y n o l on ger b e s t a t ed a s i n v es t m en t
p r op er t i es a t G r ou p l ev el , b u t a r e p r es en t ed a n d
t r ea t ed a s ow n er -oc c u p i ed p r op er t i es .

p a g e 3 1
 No t es
● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

F u r nitu r e and e q u ip m e nt, com p u te r s, car s, e tc.

F u r n i t u r e a n d eq u i p m en t , c om p u t er s , c a r s et c . a r e
r ec ogn i s ed a t c os t l es s a c c u m u l a t ed dep r ec i a t i on .
D ep r ec i a t i on i s p r ov i ded on a s t r a i gh t -l i n e b a s i s
ov er t h e es t i m a t ed u s ef u l l i v es of t h e a s s et s t a k i n g
i n t o a c c ou n t t h e ex p ec t ed r es i du a l v a l u e.

• C a r s , 5 y ea r s
• F u r n i t u r e a n d eq u i p m en t , 3 -5 y ea r s
• C om p u t er s , 3 -5 y ea r s

P r ev i ou s l y , t h e ex p ec t ed r es i du a l v a l u e w a s n ot
i n c l u ded i n t h e c a l c u l a t i on of dep r ec i a t i on .

Re cog nition of loans and adv ance s e tc.

T h e b a n k i n g gr ou p ’ s l oa n s a n d a dv a n c es a r e
gen er a l l y m ea s u r ed a t a m or t i s ed c os t i n c l u di n g
f ees et c . l es s w r i t e-dow n s . T h e b a n k i n g gr ou p ’ s
p or t f ol i o of m or t ga ge deeds , w h i c h w a s p r ev i ou s l y
m ea s u r ed a t a m or t i s ed c os t , i s m ea s u r ed a t f a i r
v a l u e. W r i t e-dow n s of l oa n s a n d a dv a n c es i s
det er m i n ed b a s ed on a n ob j ec t i v e i n di c a t i on of
i m p a i r m en t of t h e i n di v i du a l l oa n or l oa n p or t f ol i o.

A m or tisation of fe e s e tc.
F ees et c . f or m i n g p a r t of t h e ef f ec t i v e r a t e of r et u r n
a r e a m or t i s ed a s a n i n t egr a l p a r t of t h e r el a t ed
l oa n s a n d l i a b i l i t i es . F ees et c . w er e p r ev i ou s l y
r ec ogn i s ed a t t h e t i m e of p a y m en t .

I nte r e st r ate sw ap s
I n t er es t r a t e s w a p s a r e r ec ogn i s ed a t f a i r v a l u e.
P r ev i ou s l y , i n t er es t ra te s w a p s w er e n ot
r ec ogn i s ed i n t h e f i n a n c i a l s t a t em en t s b u t u s ed t o
h edge i n t er es t r a t e r i s k on f i x ed-r a t e l oa n s a n d
m or t ga ge deeds .

F air v alu e h e dg ing of fix e d-r ate loans

H edge a c c ou n t i n g w i l l s t i l l b e u s ed t o a c c ou n t f or
p a r t of t h e f i x ed-r a t e l oa n s w h er e i n t er es t r a t e
s w a p s h edge t h e i n t er es t r a t e r i s k . T h e h edge
a c c ou n t i n g r u l es h a v e b een c h a n ged t o t h e ef f ec t
t h a t v a l u e a dj u s t m en t s of t h e i n s t r u m en t em p l oy ed
f or h edgi n g a s w el l a s of t h e h edged l oa n s a r e
r ec ogn i s ed.

p a ge 3 2
 No t es
● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

U ne ar ne d p r e m iu m p r ov isions D iscou nting of p r ov isions

U n ea r n ed p r em i u m p r ov i s i on s a r e s t a t ed a s t h e U n ea r n ed p r em i u m p r ov i s i on s a n d ou t s t a n di n g
b es t es t i m a t e of f u t u r e c l a i m s f or t h e p a r t of t h e c l a i m s p r ov i s i on s a r e s t a t ed a t t h ei r di s c ou n t ed
i n s u r a n c e p er i od n ot y et r u n of f , i n c l u di n g a l l di r ec t v a l u e i f s u c h di s c ou n t i n g m a t er i a l l y a f f ec t s t h e s i z e
a n d i n di r ec t a dm i n i s t r a t i v e a n d c l a i m s h a n dl i n g of t h e p r ov i s i on s . D i s c ou n t i n g i s s u b j ec t t o a
ex p en s es . U n ea r n ed p r em i u m p r ov i s i on s w i l l , v a r i a b l e i n t er es t r a t e s t r u c t u r e a s det er m i n ed b y
h ow ev er , a s a m i n i m u m c or r es p on d t o a n a c c r u a l t h e D a n i s h F i n a n c i a l S u p er v i s or y A u t h or i t y f r om
of t h e p r em i u m s c ol l ec t ed. t i m e t o t i m e.

U n ea r n ed p r em i u m p r ov i s i on s r el a t i n g t o h ea l t h D e fe r r e d tax
a n d p er s on a l a c c i den t i n s u r a n c e a r e m a de u p D ef er r ed t a x is r ec ogn i s ed on c on t i n gen c y
a c c or di n g t o m a r k et v a l u e p r i n c i p l es . T h ey a r e r es er v es , a n d t h i s r ep r es en t s a c h a n ge a s
c a l c u l a t ed a s t h e di f f er en c e b et w een th ec a p it a l c om p a r ed w i t h p r ev i ou s l y .

v a l u e of t h e c om p a n y ’ s l i a b i l i t i es a n d th e c a p it a l W it h ef f ec t f r om 2 0 0 5 , I A S / I F R S p r es c r i b e t h a t
v a l u e of t h e p r em i u m s to b e p a id b y p ol i c y h ol der s s u c h t a x m u s t b e p r ov i ded, n ot w i t h s t a n di n g t h a t
in th e fu tu r e u s in g a b es t es t i m a t e of i n s u r a n c e A lm . B r a n d does n ot ex p ec t t o di s s ol v e i t s
r is k , c os t s i n c u r r ed i n m a n a gi n g i n s u ra n c ea n dth e c on t i n gen c y r es er v e s o a s t o t r i gger a t a x l i a b i l i t y .
ra t e of r et u r n ob t a i n a b le in t h em a r k et . T h efu l l a m ou n t of def er r ed t a x on t h e c on t i n gen c y
r es er v e i s r ec ogn i s ed s ep a r a t el y u n der l i a b i l i t i es .
P r ev i ou s ly , u n ea r n ed p r em i u m p r ov i s i on s w er e
m a de u p a t th es h a r e of p r em i u m s w h i c h b ec a m e E m p loy e e b e ne fits
du e f or p a y m en t du r i n g t h e f i n a n c i a l y ea r b u t P r ov i s i on s a re r ec ogn i s ed f or l on g-t er m em p l oy ee
w h os e i n s u r a n c ec ov er c on t i n u ed i n t o t h e f ol l ow in g b en ef i t s , w h ic h w er e p r ev i ou s l y ex p en s ed a t t h e
y ea r . t i m e of p a y m en t.

O u tstanding claim s p r ov isions D iv ide nds

A l l di r ec t a n d i n di r ec t ex p en s es r el a t ed t o c l a i m s D i v i den ds a r e r ec ogn i s ed a s a l i a b i l i t y in th e
h a n dl i n g f or m p a r t of c l a i m s ex p en s es , a s op p os ed f i n a n c i a l s t a t em en t s a t t h e t i m e of a dop t i on b y th e
t o p r ev i ou s l y w h en s u c h ex p en s es w er e p a r t l y s h a r eh ol der s a t t h e a n n u a l gen er a l m eet i n g.
i n c l u ded i n a dm i n i s t r a t i v e ex p en s es , a n d a r e P r op os ed di v i den ds i n r es p ec t of t h e f i n a n c i a l y ea r
t h er ef or e i n c l u ded i n t h e s t a t em en t of ou t s t a n di n g a r e s t a t ed a s a s ep a r a t e l i n e i t em u n der
c l a i m s p r ov i s i on s . P r ev i ou s l y , a l l di r ec t a n d i n di r ec t s h a r eh ol der s ’ eq u i t y .
c l a i m s h a n dl i n g ex p en s es w er e r ec ogn i s ed i n t h e
y ea r i n w h i c h t h ey w er e p a i d. M inor ity inte r e sts
T h e p r op or t i on a t e s h a r es of t h e r es u l t s a n d eq u i t y
E q u alisation p r ov isions of s u b s i di a r y u n der t a k i n gs a t t r i b u t a b l e t o m i n or i t y
E q u a l i s a t i on p r ov i s i on s r el a t i n g t o a n n u i t i es i n i n t er es t s a r e r ec ogn i s ed a s i n t egr a l p a r t s of t h e
w or k er s ’ c om p en s a t i on i n s u r a n c e a r e r ec ogn i s ed p r of i t / l os s f or t h e y ea r a n d s h a r eh ol der s ’ eq u i t y .
i n t h e s t a t em en t of ou t s t a n di n g c l a i m s p r ov i s i on s . P r ev i ou s l y , t h e p r op or t i on a t e s h a r e of m i n or i t y
O t h er eq u a l i s a t i on p r ov i s i on s a r e t r a n s f er r ed t o i n t er es t s of t h e p r of i t / l os s w a s dedu c t ed b ef or e t h e
s h a r eh ol der s ’ eq u i t y . p a r en t c om p a n y ’ s s h a r e of t h e G r ou p ’ s p r of i t / l os s .

p a ge 3 3
A lm . B r a n d A /S

P a re n t c o m p a n y

p a ge 3 4
 Ac c o u n t i n g Po l i c i es
● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Ac c o u n t i n g Po l i c i es -
Pa r en t c o m p a n y
GENEREL I NF O RM A T I O N
T h e i n t er i m r ep or t h a s b een p r ep a r ed b a s ed on
t h e p r ov i s i on s of t h e D a n i s h F i n a n c i a l B u s i n es s
A c t a n d a s s oc i a t ed p r ov i s i on s i n ex ec u t i v e or der s
i s s u ed b y t h e D a n i s h F i n a n c i a l S u p er v i s or y
A u t h or i t y on t h e p r es en t a t i on of f in a n c ia l
s t a t em en t s b y i n s u r a n c e c om p a n i es a n d c r edi t
i n s t i t u t i on s . T h e i n t er i m r ep or t h a s ot h er w i s e b een
p r ep a r ed i n c om p l i a n c e w i t h t h e p r ov i s i on s l a i d
dow n b y t h e C op en h a gen S t oc k E x c h a n ge

T h e A l m . B r a n d A / S G r ou p c om p l i es w ith t h e
r eq u i r em en t s of t h e I n t er n a t i on a l F in a n c ia l
R ep or t i n g S t a n da r ds ( I F R S ) f r om th e 1 of
st

J a n u a r y 2 0 0 5 . T h e a c c ou n t i n g p ol i c i es f or t h e
p a r en t c om p a n y A l m . B r a n d A / S c on c er n i n g
r ec ogn i t i on a n d m ea s u r em en t c om p l i es w ith t h e
gr ou p p ol i c i es ex c ep t f r om :

P a r t i c i p a t i n g i n t er es t s in s u b s i di a r i es a re
r ec ogn i s ed a n d m ea s u r ed a t t h e p a r en t c om p a n y ’ s
s h a r e of t h e b ook v a l u e of t h e s u b s i di a r y a t t h e
b a l a n c e s h eet da t e.

T h e i n t er i m r ep or t a n d t h e op en i n g b a l a n c e s h eet
a r e u n a u di t ed.

p a ge 3 5
 B al an c e S h eet
● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

B a l a n c e Sh eet - Pa r en t c o m p a n y

30th S e p t e m b e r 30th S e p t e m b e r 31 D e c e m b e r
D K K m illio n N o te 2 005 2 004 2 004

ASSETS

Participating interests in subsidiaries 1 4 , 4 02 3, 551 3, 4 6 2

Participating interests in asso ciated undertak ings 21 20 20
T o ta l in v e s tm e n ts in s u b s id ia r ie s
a n d a s s o c ia te d u n d e r ta k in g s 4 ,4 2 3 3, 57 1 3, 4 8 2

Participating interests 0 1 1
O th er l o ans 2 2 2
D epo sits w ith credit institutio ns 125 150 150
T o ta l o th e r fin a n c ia l in v e s tm e n t a s s e ts 12 7 153 153

T o ta l In v e s tm e n t A s s e ts 4 , 550 3, 7 2 4 3, 6 35

A m o unts due f ro m subsidaries 0 5 104

O th er debto rs 20 0 17
T o ta l d e b to rs 2 0 5 12 1

C ash in h and and dem and depo sits 4 7 37 32

D ef erred tax 35 56 1 58 7
T o ta l o th e r a s s e ts 8 2 59 8 6 19

A ccrued interest 1 3 3
T o ta l p r e p a y m e n ts a n d a c c r u e d in c o m e 1 3 3

T o ta l a s s e ts 4 , 6 53 4 , 330 4 , 37 8

L I AB I L I TI ES

S h are capital 1, 7 8 8 1, 7 8 8 1, 7 8 8
R etained pro f it 2, 321 1, 8 9 8 1, 9 30

T o ta l s h a r e h o ld e r s ' e q u ity 4 , 109 3, 6 8 6 3, 7 18

D ef erred tax 51 55 55
O th er pro v isio ns 0 26 26
T o ta l p r o v is io n s fo r o th e r r is k s a n d c o s ts 51 8 1 8 1

A m o unts o w ed to credit institutio ns 0 100 100

A m o unts o w ed to subsidiaries 4 27 39 0 4 21
O th er credito rs 6 6 7 3 58
T o ta l c r e d ito r s 4 9 3 56 3 57 9

T o ta l lia b ilitie s 4 , 6 53 4 , 330 4 , 37 8

p a ge 3 6
 Pr o f i t an d l o ss ac c o u n t
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Pr o f i t a n d l o s s a c c o u n t – Pa r en t c o m p a n y
9 months 9 months Y e a r
D K K mi l l i on N ote 2 005 2 004 2 004

Income from subsidiaries 2 5 40 48 6 5 20

Income from associat ed comp anies 0 0 1
Int erest , div idends et c. 4 -5 6
G ain and l osses on inv est ment asset s 22 0 0
Int erest ex p enses - 10 -2 - 16
A dminist rat iv e ex p enses rel at ed t o
inv est ment act iv it ies -3 8 - 60 -5 9
T ota l r e tu r n on i nv e stme nts 5 1 8 4 1 9 4 5 2

O the r or d i na r y i nc ome 0 2 6 7 6
O the r or d i na r y e x p e nse s 0 0 -5 1

P r of i t/ l oss b e f or e ta x 5 1 8 4 4 5 4 7 7

T a x -1 5 1 - 93 - 95

P r of i t/ l oss a f te r ta x 3 6 7 3 5 2 3 8 2

p a ge 3 7
 S t at em en t o f c h an g es i n eq u i t y
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St a t em en t o f c h a n g es i n eq u i t y
Share R et ai n ed Shareho l d ers '
D K K m illio n c ap i t al p ro f i t eq u i t y
A t 1 J an u ary 2 0 0 5 1 ,7 8 8 1 ,8 4 4 3 ,6 3 2

Changes in accounting policies

E q ualisation pr ov isions 4 5 4 5
D iscounting of insur ance contr acts 5 0 5 0
R ecognition of claim s hand ling ex penses -1 4 2 -1 4 2
P r ov isions f or insur ance contr acts r elating to health
and per sonel accid ent insur ance -4 1 -4 1
E m ploy ee b enef its -4 7 -4 7
R ecognition of loans etc. 1 6 1 6
A m or tisation of f ees -6 -6
R ecognition of inter est r ate sw aps at f air v alue -2 9 -2 9
F air v alue hed ging of f ix ed - r ate loans 1 4 1 4
O ther changes -4 -4
T otal changes attr ib utab le to sub sid iar ies -1 4 4 -1 4 4
D ef er r ed tax on contingency f und s -5 5 -5 5
Change in tax asset 2 8 5 2 8 5
T o t al c han g es at t ri b u t ab l e t o I A S/ I F R S 8 6 8 6

R es t at ed at 1 J an u ary 2 0 0 5 1 ,7 8 8 1 ,9 3 0 3 ,7 1 8

P r of it/ loss f or the per iod 3 6 7 3 6 7

S ale of ow n shar es 2 4 2 4

A t 3 0 Sep t em b er 2 0 0 5 1 ,7 8 8 2 ,3 2 1 4 ,1 0 9

p a ge 3 8
 No t es
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N o te1 Pa r t i c i p a t i n g i n t er es t i n s u b s i di a r i es
30th S e p t e m b e r 30th S e p t e m b e r 31 D e c e m b e r
D K K m illio n 2 005 2 004 2 004

Cost at beginning of year 6 , 04 2 6 , 04 7 6 , 04 7

A d d itions 0 0 0
D isp osal s 0 0 -5
C o s t a t y e a r-e n d 6 , 04 2 6 , 04 7 6 , 04 2

R ev al u ation and w rite- d ow ns, beginning of year - 3 , 07 0 - 3 , 507 - 3 , 507

D iv id end s 0 0 - 104
R ev ersal of p rior- year rev al u ation and w rite- d ow ns 0 0 5
R ev al u ation d u ring th e year 56 3 0 0
P rofit/ l oss for th e year 3 7 6 4 84 4 98
R em ission of l oans, su bsid iaries 17 3 0 29
R ev al u ation and w rite- d ow ns on ow n sh ares in su bsid iaries 1 8 9
R e v a lu a tio n a n d w r ite -d o w n s , a t y e a r -e n d -1 ,9 5 7 - 3, 01 5 - 3, 07 0

S et- off against d ebtors and c ap ital base 3 17 519 4 90

B o o k V a lu e 4 , 4 02 3, 5 5 1 3, 4 6 2

T h e book v al u e is c om p osed as fol l ow s:

A l m . B rand B ank A / S 1, 04 2 823 7 3 5
A l m . B rand F orsik ring A / S 2, 917 2, 3 58 2, 3 7 0
A sgaard F inans A / S 0 0 0
F inansieringssel sk abet B al d er A / S 3 6 8 3 6 8 3 57
F inansieringssel sk abet af 9/ 10 1992 A / S 7 5 2 0
4 , 4 02 3, 5 5 1 3, 4 6 2

N o te2 In c o m efr o m s u b s i di a r i es
9 months 9 months Y e a r
D K K mi l l i on 2 0 0 5 2 0 0 4 2 0 0 4

Alm. Brand Bank A/S 115 113 12 4

Alm. Brand F o rs i kri ng A/S 2 5 5 3 7 8 3 8 9
As g aard F i nans A/S 0 0 0
F i nans i e ri ng s s e ls kab e t Balde r A/S 11 -8 - 19
F i nans i e ri ng s s e ls kab e t af 9 /10 19 9 2 A/S -5 1 4
3 7 6 4 8 4 4 98

T h e amo u nt c o mp ri s e s t h e f o llo w i ng :
O rdi nary i nc o me f ro m s u b s i di ari e s 5 40 48 6 5 2 0
T ax - 16 4 -2 -2 2
3 7 6 4 8 4 4 98

p a ge 3 9
 No t es
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N o te3 T r a n s itio n to IF R S

Equity reconciliation at 31 December 2004 and profit for 2004

E q u it y a t
O p e ning P r of it 3 1 De c e mb e r
DKK million e q u it y 2 0 0 4 y e a r 2 0 0 4 2 0 0 4
2 0 0 4 p olic ie s 3 ,1 9 0 4 3 3 3 ,6 3 2

Equalisation provisions 4 5 0 4 5
D isc ounting of insuranc e c ontrac ts 4 0 10 5 0
R e c og nition of c laim s h and ling e x pe nse s - 14 2 0 - 14 2
P rovisions f or insuranc e c ontrac ts re lating to h e alth
and pe rsonal ac c id e nt insuranc e -2 7 - 14 -4 1
Em ploy e e b e ne f its - 38 -9 -4 7
R e c og nition of loans 19 -3 16
A m ortisation of f e e s -7 1 -6
R e c og nition of inte re st rate sw aps at f air value - 37 8 -2 9
F air value h e d g ing of f ix e d - rate loans 14 0 14
O th e r c h ang e s -4 0 -4
T otal c h ang e s attrib utab le to sub sid iarie s - 137 -7 - 14 4
D e f e rre d tax on c onting e nc y f und s -5 5 0 -5 5
C h ang e in tax asse t 32 9 -4 4 2 85
I A S / I F R S p olic ie s 3 ,3 2 7 3 8 2 3 ,7 1 8

Equity reconciliation at 30 S eptember 2004 and profit for 9 month s 2004

E q u it y a t 3 0
O p e ning P r of it S e p t e mb e r
DKK million e q u it y 2 0 0 4 9 mont h s 2 0 0 4 2 0 0 4

2 0 0 4 p olic ie s 3 ,1 9 0 3 7 7 3 ,5 7 4
Equalisation provisions 4 5 2 9 7 4
D isc ounting of insuranc e c ontrac ts 4 0 8 4 8
R e c og nition of c laim s h and ling e x pe nse s - 14 2 0 - 14 2
P rovisions f or insuranc e c ontrac ts re lating to h e alth
and pe rsonal ac c id e nt insuranc e -2 7 -4 - 31
Em ploy e e b e ne f its - 38 -6 -4 4
R e c og nition of loans 19 -5 14
A m ortisation of f e e s -7 3 -4
R e c og nition of inte re st rate sw aps at f air value - 37 11 -2 6
F air value h e d g ing of f ix e d - rate loans 14 -1 13
O th e r c h ang e s -4 0 -4
T otal c h ang e s attrib utab le to sub sid iarie s - 137 35 - 102
D e f e rre d tax on c onting e nc y f und s -5 5 0 -5 5
C h ang e in tax asse t 32 9 -6 0 2 6 9
I A S / I F R S p olic ie s 3 ,3 2 7 3 5 2 3 ,6 8 6

p a ge 4 0