Alm. Brand Formue A/S
Annual Report 2013

DGAP-News: Alm. Brand Formue A/S /

21.02.2014 / 14:28

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Copenhagen, 2014-02-21 14:28 CET (GLOBE NEWSWIRE) -- Since 2008, Alm. Brand
Formue has generally posted decent results, in most of the years meeting the
target return of 10%. The financial results in 2012 and 2013 were driven in
particular by positive equity returns, whereas the total net interest return
was restrained by the interest rate structure and the interest rate level. 

In spite of generally satisfactory results, Alm. Brand Formue has experienced
weak demand and low liquidity of its shares for a number of years, as a result
of which the market capitalisation of Alm. Brand Formue is not deemed to
reflect the company's values. The coming Danish act on alternative investment
fund managers introduces new regulatory obligations for Alm. Brand Formue which
will make it difficult for the company to generate satisfactory results going
forward. 

Against this background, the Board of Directors has resolved to convene an
extraordinary general meeting on Tuesday, 18 March 2014 at 10.00 a.m. for the
purpose of considering a resolution for a solvent liquidation of the company.
For additional information, see separate company announcement no. 2 released on
21 February 2014. 

Based on Management's estimates of the costs expected to be incurred in
connection with the liquidation process, the company's portfolio of own shares
at 20. February 2014 and the share prices prevailing at 20 February 2014, the
Board of Directors estimates the total liquidation proceeds available for
distribution to the shareholders at approximately DKK 358 million,
corresponding to around DKK 130 per share with a nominal value of DKK 10 each
(excluding the company's portfolio of own shares as at 20 February 2014). By
way of comparison, the closing price on NASDAQ OMX Copenhagen A/S of the
company's class B shares on 20 February 2014 was DKK 109,00 per B share with a
nominal value of DKK 10 each. The final proceeds from the liquidation will
depend on, among other things, market developments in the period until the date
of realisation. 



Highlights of the attached Annual Report 2013 of Alm. Brand Formue:

* The company posted a pre-tax profit of DKK 48.0 million in 2013, against a
pre-tax profit of DKK 71.5 million in 2012. The profit after tax amounted to
DKK 47.1 million, against a profit after tax of DKK 70.7 million in 2012. 

* In spite of a conservative investment strategy, the company achieved a return
on equity of 14.3%. 

* The performance was satisfactory and in line with the most recent guidance
for profit in the region of DKK 50 million after tax. The company's financial
results for 2013 were attributable to positive value adjustments of the equity
portfolio of DKK 62 million. 

* The company maintained a relatively conservative investment strategy for most
of 2013. At 31 December 2013, the company's debt/equity ratio was 2.1. The
company's bond portfolio was mainly invested in high-yielding Danish mortgage
bonds, whereas the equity portfolio was predominantly placed in export-driven
stocks which the company believes to be reasonably priced relative to their
return potential. 

* Net asset value per share rose by 11% from DKK 113.25 to DKK 125.73 in 2013.
During the same period, the share price rose by 19% from DKK 87.00 to DKK
103.50. 
 At 31 December 2013, the price/net asset value ratio was 0.82.

* In accordance with the adopted share buyback programme, which commenced on 7
February 2013 and ended on 31 January 2014, the company purchased 41,991 own
shares at a price of DKK 4.3 million, equivalent to an average price per share
of DKK 102. As at 31 December 2013, the company held 372,200 shares in
treasury, corresponding to 12.0% of the share capital. 


         Please direct any questions regarding the Annual Report 2013 to Bo
Overvad, Director, on tel. +45 35 47 48 49. 
         
         Please direct any questions regarding the solvent liquidation of the
company to Søren Boe Mortensen, Chairman, on tel. +45 35 47 79 07.
News Source: NASDAQ OMX


End of Corporate News

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Language:    English                
Company:     Alm. Brand Formue A/S  
 
 
             Denmark                
ISIN:        DK0010300276           
 
 
End of News    DGAP News-Service  
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