To the Copenhagen Stock Exchange Half-yearly results for Topdanmark Topdanmark s Board of Directors has today adopted the unaudited accounts for the first six months to 30 June 1998. Key features: Topdanmark realised a post-tax profit of DKK 343m after a transfer of DKK 50m to the equalisation provision. The result for the first half of 1997 was a profit of DKK 250m after DKK 24m was transferred to the equalisation provision. After adjusting for extraordinary factors of DKK 6m, the profit of DKK 337 was equivalent to a 9.9% post-tax return on shareholders funds calculated on a six-monthly basis. This result is considered to be satisfactory. For the 1997 half year, after adjusting for extraordinary factors of DKK 9m, the profit was DKK 241m. Premium income continued to grow in the first half of 1998 by 8.0% in non-life insurance and 21.3% in life assurance (regular premiums: 21.6%). The net combined ratio declined from 99.9% in the first half of 1997 to 96.2% in the first half of 1998. The second stage of Topdanmark s share buy-back programme will start in week 37, when Topdanmark will buy back shares for DKK 59m. Following the favourable result for the first half of 1998 Topdanmark has upgraded its forecast post-tax profit for 1998 from DKK 340m 390m to DKK 425m - 475m, assuming no change to the current foreign exchange and security prices. In addition the result may be favourably affected by the planned establishment of Kapital Holding. Please direct any queries to: Michael Pram Rasmussen, Chief Executive Officer, Phone +45 44 74 31 45 Poul Almlund, Managing Director,Phone +45 44 74 34 53 Steffen Heegaard, Communication and IR Manager, Phone +45 44 74 40 17 Borupvang 4 Telephone +45 44 68 33 11 Topdanmark A/S 2750 Ballerup Fax +45 44 68 19 06 Reg.No. 103.044 Denmark
Page 2 of 22 Financial highlights DKKm Half year Half year Full year Key figures 1998 1997 1997 Premiums earned: Non-life insurance 1,975 1,829 3,735 Life asssurance 894 549 1,305 2,869 2,378 5,040 Profit on insurance Topdanmark Forsikring excl. life 282 163 259 Topdanmark Livsforsikring 43 28 50 Other companies 0 0 0 Total profit on insurance 325 191 309 Profit/(loss) from other activities 2 4 11 Profit/(loss) of parent company 16 55 91 Profit for the period 343 250 411 Profit before extraordinary factors 337 241 367 Extraordinary factors 6 9 44 Profit for the period 343 250 411 Shareholders' funds 3,622 3,167 3,338 Ratios Return on shareholders' funds (%) 10 1) 8 1) 13 Earnings per share (DKK) 87 1) 64 1) 105 Net assets per share (DKK) 924 808 843 Distribution per share (DKK) 0 0 30 2) Share price at 30 June (DKK) 1,135 833 1,295 1) Calculated on a six-monthly basis 2) In the form of share buy-back
Page 3 of 22 Commentary on the half-yearly accounts The result for the Topdanmark Group for the first half of 1998 was a post-tax profit of DKK 343m after a transfer of DKK 50m to the equalisation provision in Topdanmark Arbejdsskadeforsikring (Workers Compensation Insurance). The half-yearly result for 1997 was DKK 250m after a transfer of DKK 24m to the equalisation provision. After adjusting for extraordinary factors of DKK 6m the profit increased from DKK 241m for the first half of 1997 to DKK 337m for the first half of 1998. This profit of DKK 337m on ordinary activities is the best result ever recorded by Topdanmark and represents a 9.9% post-tax return on shareholders funds calculated on a six-monthly basis. The Board of Directors considers the result to be satisfactory. The improvement in the result arose from improvements in Topdanmark s core business of non-life insurance and life assurance. Trend in results DKKm Half year 1998 Half year 1997 Full year 1997 Non-life insurance 282 163 259 Life assurance 43 28 50 Other activities 2 4 11 Parent company 16 55 91 Result 343 250 411
Page 4 of 22 In the first half of 1998 shareholders funds increased by DKK 284m from DKK 3,338m to DKK 3,622m being the profit for the period of DKK 343m less a write-down of DKK 59m following the share buy-back in April which was the first stage of the share buy-back programme for 1998. As a result the number of shares has been reduced by 44,100 to a total of 3,918,025 at 30 June 1998. The second stage of the share buy-back programme for 1998 will start in the week commencing 7 September 1998, when Topdanmark will buy back shares for a further DKK 59m. Non-life insurance The result for Topdanmark Forsikring for the first half of 1998 was a profit of DKK 325m (1997 half year: DKK 191m) which included the result of its subsidiary Topdanmark Livsforsikring (life assurance) of DKK 43m (1997 half year: DKK 28m). Gross premium income of the Topdanmark Group (including workers compensation insurance) increased from DKK 1,829m in the first half of 1997 to DK 1,975m in the first half of 1998 representing an improvement of 8.0%. This included premium income in the non-life insurance company Topdanmark Forsikring which improved by 6.4% from DKK 1,723m to DKK 1,833m. This improvement was achieved although there were no extraordinary premium increases. After adjusting for indexation the underlying improvement in premium income was 2-3% indicating a continuation of the recent years positive trend in market share. Compared to the first half of 1997, the loss ratio declined from 72.3% to 69.1%. This improvement of just over 3 percentage points was the result of a combination of several factors among which was a claims trend benefiting from a mild winter and the absence of severe storms. Additionally, during the trade union strike in the spring the density of traffic was lower than normal which resulted in a reduction of motor insurance claims. Finally unlike the corresponding period in 1997, the first half of 1998 was not affected by runoff losses and claims arising from cloudbursts.
Page 5 of 22 The claims trend for the first half of 1998 is considered to be exceptionally good and is not expected to continue. In spite of extra expenses arising from the year 2000 problem the expense ratio continued its positive trend declining from 24.6% to 24.2%. As a result of controlled cost focusing it is expected that the expense ratio for the full year 1998 will fall to a level just below 24.0%. The gross combined ratio representing expenses on claims, sales and administration as a percentage of gross premium income, was 93.3% (1997 half-year: 96.9%). Net expenses on reinsurance was 2.9% of gross premium income (1997 half year: 3.0%). As a result, total expenses on claims, sales, administration and reinsurance as a percentage of gross premium income (net combined ratio) declined from 99.9% in the first half of 1997 to 96.2% in the first half of 1998. Due to the exceptionally good loss ratio for the first half of 1998 it is not expected that this level of the combined ratio will continue. The positive trend in the net combined ratio was the main cause of the improvement in the technical result (adjusted for equalisation provisions) from DKK 62m in the first half of 1997 to DKK 139m in the first half of 1998.
Page 6 of 22 Financial highlights - Topdanmark Forsikring DKKm Half year Half year Full year 1998 1997 1997 Key figures Premiums earned 1,833 1,723 3,510 Technical interest on own account 69 60 118 Claims incurred (1,266) (1,245) (2,622) Expenses (443) (424) (843) Reinsurance ceded (54) (52) (72) Change in equalisation provision 0 (24) (30) Profit/(loss) on insurance 139 38 61 Other investment income 179 175 223 Profit from ordinary activities 318 213 284 Extraordinary items 7 (22) 25 Profit for the period 325 191 309 Shareholders' funds 2,733 2,290 2,408 Technical provisions on own account 3,067 2,793 2,482 Total assets 6,662 5,957 5,567 Ratios (%) Loss ratio 69.1 72.3 74.7 Expense ratio 24.2 24.6 24.0 Gross combined ratio 93.3 96.9 98.7 Reinsurance ceded 2.9 3.0 2.1 Net combined ratio 96.2 99.9 100.8 Return on shareholders' funds (%) 12.6 1) 8.7 1) 13.7 1) Calculated on a six-monthly basis
Page 7 of 22 Life assurance Topdanmark Livsforsikring Group s business activities comprise the parent company Topdanmark Livsforsikring and BG Pension. In the first half of 1997 BG Pension was a 50% owned company. At the end of 1997 BG Bank transferred its shareholding in BG Pension to Topdanmark Livsforsikring and consequently BG Pension was included as a wholly owned subsidiary in the first half 1998. The profit made by Topdanmark Livsforsikring for the first half of 1998 of DKK 43m was after a transfer of DKK 335m to the bonus equalisation provision. The profit for the first half of 1997 of DKK 28m was after a transfer of DKK 230m to the bonus equalisation provision. The profit of DKK 43m (1997 half year: DKK 28m) included DKK 1m from health and accident insurance (1997 half year: DKK 3m). According to the guidelines laid down by the Danish Financial Supervisory Authority, the maximum return on shareholders funds in Topdanmark Livsforsikring must not exceed the customers bonus rate net of the real interest rate duty plus three percentage points, plus the profit from health and accident insurance. Consequently, the improvement in the profit was due to Topdanmark Livsforsikring strengthening its capital base by DKK 300m at the end of 1997. Gross premium income in Topdanmark Livsforsikring Group was DKK 894m as compared with DKK 549m for the first half of 1997 when only 50% of BG Pension s gross premium income was included. After adjusting for the difference in shareholding the increase was 21.3%. The increase in premium income in Topdanmark Livsforsikring Group was made up of a 21.6% increase in regular premium polices and a 19.3% increase in single premium polices. In the parent company Topdanmark Livsforsikring the gross premium in the first half of 1998 was DKK 432m, an increase of 19.2% compared to the first half figure for 1997 of DKK 362m.
Page 8 of 22 The profit achieved by BG Pension for the first half of 1998 of DKK 3m included DKK 7m from health and accident insurance and was after a transfer of DKK 56m to the bonus equalisation provision. The profit for the first half of 1997 of DKK 13m included DKK 6m from health and accident insurance and was after a transfer of DKK 57m to the bonus equalisation provision. Gross premium income in BG Pension increased in the first half of 1998 by 23.3% from DKK 375m to DKK 462m. Both Topdanmark Livsforsikring and BG Pension continued the positive trend in market share in the first half of 1998. Financial highlights - Topdanmark Livsforsikring Half year Half year Full year DKKm 1998 1997 1997 Key figures Premiums 432 362 883 Allocated investment income on own account 596 430 734 Claims paid (203) (159) (354) Change in the life assurance provisions (430) (364) (811) Change in the bonus equalisation provision (335) (230) (326) Expenses (56) (44) (144) Reinsurance ceded (23) 0 9 Technical profit/(loss) on life assurance (19) (5) (9) Technical profit/(loss) on health and accident insurance 1 3 9 Other investment income 61 30 50 Profit for the period 43 28 50 Shareholders' funds 848 483 805 Technical provisions on own account 8,372 7,021 7,585 Total assets 10,410 8,773 8,848 Ratios Return on shareholders' funds (%) 5.2 1) 5.9 1) 10.4 1) Calculated on a six-monthly basis
Page 9 of 22 Financial highlights - BG Pension, Livsforsikringsaktieselskab DKKm Half year Half year Full year 1998 1997 1997 Key figures Premiums 462 375 842 Allocated investment income on own account 123 95 170 Claims paid (146) (107) (225) Change in the life assurance provisions (372) (291) (669) Change in the bonus equalisation provision (56) (57) (76) Expenses (21) (17) (37) Reinsurance ceded 0 0 0 Technical profit/(loss) on life assurance (10) (2) 5 Technical profit/(loss) on health and accident insurance 7 6 11 Other investment income 10 9 14 Other ordinary income 0 0 2 Profit on ordinary activities 7 13 32 Tax (4) 0 0 Profit for the period 3 13 32 Shareholders' funds 189 167 186 Technical provisions on own account 2,955 2,090 2,514 Total assets 3,498 2,347 2,895 Ratios Return on shareholders' funds (%) 1.4 1) 8.1 1) 18.8 1) Calculated on a six-monthly basis.
Page 10 of 22 Other activities Other activities comprise activities which are not included in Topdanmark s core business of non-life insurance, life assurance and pension funds and which are therefore being phased out. The overall result of other activities was a DKK 2m profit as compared with DKK 4m for the first half of 1997. Most of the phase-out activities have been placed in Topdanmark Invest, which recorded a profit of DKK 1m (1997 half year: DKK 1m). The phase-out activities continue to be reduced in a controlled process. Parent company The profit of the parent company Topdanmark, excluding the results recorded by its subsidiaries, declined from DKK 55m in the first half of 1997 to DKK 16m in the first half of 1998. Parent company DKKm Half year 1998 Half year 1997 Full year 1997 Result of affiliated companies 327 195 320 Result of associated companies 0 7 7 Net investment income 32 4 51 Expenses (16) (13) (24) Extraordinary items 0 57 57 16 55 91 Total profit 343 250 411 The decline was largely because the first half of 1997 included an extraordinary income of DKK 57m from the sale of a 17% shareholding in Sydbank. The profit for the first half of 1998 included no extraordinary income. However, the proceeds arising from the sale of the Sydbank-shares
Page 11 of 22 contributed to an increase in investment income from DKK 4m in the first half of 1997 to DKK 32m in the first half of 1998. Investment and funding During the first half of 1998 the investment policy of the Topdanmark Group excluding Topdanmark Livsforsikring was influenced by the expectation of stable, or slightly declining, long-term interest rates. In the light of this, Topdanmark s interest rate exposure was kept at the upper end of the fixed limit of interest rate exposure of DKK 80m. This investment policy has been continued into the second half of 1998, and at the end of August 1998 the interest rate exposure was DK 62m and the foreign exchange exposure DKK 3.1m per day. The result from investment activities in the Topdanmark Group, excluding Topdanmark Livsforsikring, before the transfer to the technical result, was DKK 289m in the first half of 1998 as compared with DKK 252m in the first half of 1997. This result was positively affected by the growth in the investment portfolio which increased from DKK 5,091m at the beginning of the half-year to DKK 5,662m at the end of the half-year. The result from associated companies was unchanged as compared to the first half of 1997. The return on the investment in BG Bank increased from DKK 27m in the first half of 1997 to DKK 77m in the first half of 1998. The increase reflected the increase in Topdanmark s shareholding in BG Bank from just over 5% in 1997 to 10% in 1998. The increase in BG Bank was offset by Topdanmark s sale of a 17% shareholding in Sydbank in 1997 and therefore Sydbank was not included as an associated company in the first half of 1998. The overall return in the Topdanmark group excluding Topdanmark Livsforsikring was 4.9% calculated on a six-monthly basis. The market value of interest-bearing investment assets owned by the Group, excluding life assurance, was DKK 4,021m at 30 June 1998. The portfolio comprises primarily convertible mortgage credit bonds, money market
Page 12 of 22 deposits and short-term foreign securities. Topdanmark shares In the second half of 1997 Topdanmark began a process of offering shareholders included in the share inscription system the opportunity to sell up to ten Topdanmark shares free of charge. Topdanmark intends this offer to both increase the liquidity of the share and reduce the costs incurred in administering the very considerable number of small, private shareholders. As a result the number of shareholders has been reduced from 229,000 to 87,000 since the end of the first half of 1997 and it is expected that it will further reduce to 75,000 during the second half of 1998. Totally the reduction will make 8% of the share capital available. Prospects In the announcement of Topdanmark s results for 1997 the result for 1998 was expected to be between DKK 340m and DKK 390m. However, the result for the first half of 1998 benefited from an exceptionally good claims record and a higher than expected investment income, particularly from the shareholding in BG Bank. Although it is not expected that the favourable claims trend will continue and in spite of significant capital losses since the end of the first half of 1998, the good result in the first half of 1998 has given rise to an upgrading of the forecast for 1998. Assuming no change to the current foreign exchange and security prices, the post-tax profit for 1998 is now expected to be DKK 425m 475m. In addition, the result may be favourably affected by the planned establishment of Kapital Holding.
Page 13 of 22 Forecast 1998 DKKm. Forecast 1998 Half year 1998 Half year 1997 Full year 1997 Non-life insurance 335-365 282 163 259 Life assurance 80 90 43 28 50 Other activities 0 2 4 11 Parent company 10 20 16 55 91 Profit for the period 425-475 343 250 411 It is planned to establish Kapital Holding in connection with the planned merger between BG Bank and Realkredit Danmark. In accordance with Topdanmark s accounting policies, its 10% shareholding in BG Bank is recorded at net asset value. At the end of the first half of 1998 the market value of the shareholding in BG Bank exceeded the book value by DKK 340m. The conversion from BG Bank shares into Kapital Holding shares will take into account the difference between the book value and market value of BG Bank. If Kapital Holding had been established at 31 December 1997, the net asset value would have been DKK 378 per share compared to the net asset value of BG Bank of DKK 281 per share. At 31 December the difference in net asset value would have been DKK 279m. As a consequence of the expected increase in the net asset value of Topdanmark s shareholding following the establishment of Kapital Holding, a significant share of the existing difference between the market value and the book value of Topdanmark s shareholding in BG Bank will be included as accounting income in the second half of 1998. It should be noted that Topdanmark s 10% shareholding in BG Bank is equivalent to 2,927,767 shares including 50,000 shares held by the life assurance companies.
Page 14 of 22 However, as Topdanmark s result includes a 10% share of BG Bank s result equivalent to the 10% shareholding, the accounting income stated above should be adjusted for Topdanmark s share of the 1998 result recorded by BG Bank/Kapital Holding. For the second half of 1998 Topdanmark assumes a return of 6% on shareholders funds in BG Bank/Kapital Holding equivalent to DKK 27m of Topdanmark s result. It is solely a budgetary assumption and not an estimate of BG Bank/Kapital Holding s result. This spring the Danish Parliament adopted two laws affecting the taxation of Danish insurance companies. Topdanmark has accumulated quite a large tax asset as a result, among other things, of losses in the first half of the 1990 s and therefore does not expect to pay any significant amount of corporation tax for the next few years. Accounting policies The Topdanmark Group s accounts have been prepared in accordance with the Danish Insurance Act including the order issued by the Danish Financial Supervisory Authority on the preparation of the consolidated accounts for insurance companies and pension funds. The accounts for the parent company have been adjusted to comply with the Group s accounting policies. There have been no changes in accounting policies from those adopted in the 1997 annual accounts. Appendix 8 pages accounts. Financial calendar It is expected that the 1998 annual result will be announced on 23 March 1999. Internet The announcement is available on www.topdanmark.dk and the half-yearly accounts can be downloaded from our homepage.
Page 15 of 22 Topdanmark Group Consolidated profit and loss account Half year Half year Full year DKKm 1998 1997 1997 NON-LIFE INSURANCE Premiums earned Gross premiums written 2,560 2,379 3,818 Outward reinsurance premiums (213) (195) (345) Change in the provision for unearned premiums, gross (574) (542) (67) Change in reinsurers' share of the provision for unearned premiums 33 29 2 Premiums earned on own account 1,806 1,671 3,408 Technical interest on own account 82 69 135 Claims incurred Gross claims paid (1,260) (1,218) (2,580) Reinsurance cover received 114 74 184 Change in the provisions for claims, gross (103) (111) (189) Change in reinsurers' share of the provision for claims 6 18 42 Claims incurred on own account (1,243) (1,237) (2,543) Change in other technical provisions on own account (8) (5) (9) Bonuses and rebates (11) (8) (16) Operating expenses Acquisition costs (176) (184) (359) Administrative expenses (298) (266) (535) Reinsurance commission and share of profits 22 25 54 Total operating expenses on own account (452) (425) (840) Change in the equalisation provision (50) (24) (40) Technical profit/(loss) on non-life insurance 124 41 95
Page 16 of 22 Topdanmark Group Consolidated profit and loss account Half year Half year Full year DKKm 1998 1997 1997 LIFE ASSURANCE Premiums Gross premiums written 894 549 1,305 Outward reinsurance premiums (29) (13) (28) Premiums on own account 865 536 1,277 Allocated investment income on own account 834 572 959 Claims paid Claims paid (400) (266) (568) Reinsurance cover received 14 2 11 Change in the provisions for claims 0 3 (1) Claims paid on own account (386) (261) (558) Change in the life assurance provisions Change in the life assurance provisions,gross (857) (555) (1,190) Change in reinsurers' share (8) 11 26 Change in the life assurance provisions on own account (865) (544) (1,164) Bonus Change in the bonus equalisation provision (391) (259) (364) Operating expenses Acquisition costs (36) (22) (96) Administrative expenses (43) (33) (71) Total operating expenses on own account (79) (55) (167) Technical profit/(loss) on life assurance (22) (11) (17)
Page 17 of 22 Topdanmark Group Consolidated profit and loss account Half year Half year Full year DKKm 1998 1997 1997 Technical profit/(loss) on non-life insurance 124 41 95 Technical profit/(loss) on life assurance (22) (11) (17) NON-TECHNICAL ACTIVITIES Income from investment assets Income from affiliated companies 1 3 10 Income from associated companies 79 73 101 Income from land and buildings 54 49 106 Interest, dividends etc. 469 448 788 Realised gains on investment assets 193 100 154 Total income from investment assets 796 673 1,159 Unrealised gains on investment assets 495 350 532 Investment charges Administrative expenses (13) (10) (20) Interest charges (47) (105) (122) Total investment charges (60) (115) (142) Exchange rate adjustments (14) (45) (134) Real interest rate duty (23) (3) (16) Total investment income 1,194 860 1,399 Technical interest transferred to non-life insurance business (105) (90) (167) Investment income transferred to life assurance business (834) (572) (959) Other ordinary income 1 1 3 Other ordinary expenses (1) (1) (2) Expenses in parent company (16) (13) (24) Profit/(loss) on ordinary activities before taxation 341 215 328 Extraordinary income 6 82 129 Extraordinary expenses 0 (47) (46) Profit/(loss) before taxation 347 250 411 Taxation (4) 0 0 Profit for the period 343 250 411
Page 18 of 22 Topdanmark Group - Balance sheet DKKm 30 June 30 June 31 Dec. 1998 1997 1997 Assets Intangible assets 2 1 3 Investments Land and buildings 1,566 1,291 1,472 Investment in affiliated and associated companies Shares in affiliated companies 30 23 29 Shares in associated companies 913 1,089 849 Total investment in affiliated and associated companies 943 1,112 878 Other financial investment assets Shares 3,469 2,221 2,934 Unit trust shares 55 33 44 Bonds at market value 5,721 5,702 4,905 Bonds valued at acquisition cost incl. gains to maturity 6,944 5,013 5,901 Loans guaranteed by mortgages at market value 20 29 22 Loans guaranteed by mortgages at acquisition cost incl. gains to maturity 224 263 239 Other loans 112 123 113 Deposits with credit institutions 616 397 826 Financial instruments 0 320 0 Total other financial investment assets 17,161 14,101 14,984 Deposits with ceding undertakings 3 26 24 Total investment assets 19,673 16,530 17,358 Debtors Policyholders 219 160 225 Total debtors arising out of direct insurance operations 219 160 225 Amounts due from insurance companies 211 155 254 Amounts due from affiliated companies 345 493 437 Amounts due from associated companies 0 0 59 Other debtors 87 173 143 Total debtors 862 981 1,118 Other assets Equipment, computer systems, motor vehicles etc. 49 42 50 Cash at bank and in hand 427 176 309 Other 22 40 24 Total other assets 498 258 383 Prepayments and accrued income Accrued interest and rent 276 194 172 Other prepayments and accrued income 71 59 64 Total prepayments and accrued income 347 253 236 Total assets 21,382 18,023 19,098
Page 19 of 22 Topdanmark Group - Balance sheet DKKm 30 June 30 June 31 Dec. 1998 1997 1997 Liabilities Shareholders' funds Share capital 392 392 396 Share premium account 1,092 1,086 1,092 Reserves Net revaluation reserve at net asset value 758 316 434 Other reserves 743 797 797 Total reserves 1,501 1,113 1,231 Profit carried forward 637 576 619 Total shareholders' funds 3,622 3,167 3,338 Subordinated capital 100 0 300 Technical provisions Provision for unearned premiums Gross provision 1,655 1,549 1,080 Reinsurers' share (108) (103) (75) Provision for unearned premiums on own account 1,547 1,446 1,005 Life assurance provisions Gross provision 11,055 8,443 10,245 Reinsurers' share (7) (31) (47) Life assurance provisions on own account 11,048 8,412 10,198 Outstanding claims Gross outstanding claims 2,900 2,669 2,789 Reinsurers' share (304) (268) (297) Outstanding claims on own account 2,596 2,401 2,492 Provision for bonuses and rebates 43 32 41 Equalisation provision 90 24 40 Bonus equalisation provision 1,123 569 733 Other technical provisions 83 31 72 Total technical provisions on own account 16,530 12,915 14,581 Provision for other risks and expenses Deferred real interest rate duty 9 2 6 Provision for pension schemes and similar obligations 9 11 10 Other provisions 43 0 43 Total provisions for other risks and expenses 61 13 59 Deposits received from reinsurers 11 19 30 Creditors Creditors arising out of direct insurance operations 79 8 37 Creditors arising out of reinsurance operations 64 58 93 Amounts due to credit institutions 399 1,362 83 Amounts due to affiliated companies 0 0 16 Financial instruments 41 0 170 Corporation tax 4 0 0 Other creditors 471 481 391 Total creditors 1,058 1,909 790 Total liabilities 21,382 18,023 19,098
Page 20 of 22 Topdanmark A/S Profit and loss account Half year Half year Full year DKKm 1998 1997 1997 Income from investment assets Income from affiliated companies 327 195 320 Income from associated companies 0 7 7 Interest, dividends etc. 23 25 47 Realised gains on investment assets 0 0 7 Total income from investment assets 350 227 381 Unrealised gains on investment assets 0 0 21 Investment charges Administrative expenses (1) (1) (2) Interest charges (3) (17) (17) Realised losses on investments (2) (5) 0 Total investment charges (6) (23) (19) Unrealised losses on investments (2) (1) 0 Exchange rate adjustments 17 3 (5) Total investment income 359 206 378 Expenses of parent company (16) (13) (24) Profit on ordinary activities before taxation 343 193 354 Extraordinary income 0 57 57 Profit before taxation 343 250 411 Taxation 0 0 0 Profit for the period 343 250 411
Page 21 of 22 Topdanmark A/S Balance sheet as at 30 June 1998 30 June 30 June 31 Dec. DKKm 1998 1997 1997 Assets Investments Shares in affiliated companies 2,816 2,365 2,490 Total investment in affiliated and associated companies 2,816 2,365 2,490 Other financial investment assets Shares 138 159 116 Bonds at market value 83 156 43 Other loans 100 110 100 Financial instruments 11 0 0 Total other financial investment assets 332 425 259 Total investment assets 3,148 2,790 2,749 Debtors Amounts due from affiliated companies 519 702 622 Other debtors 1 10 4 Total debtors 520 712 626 Other assets Cash at bank and in hand 22 14 27 Other 1 1 1 Total other assets 23 15 28 Prepayments and accrued income Accrued interest and rent 5 9 2 Total prepayments and accrued income 5 9 2 Total assets 3,696 3,526 3,405
Page 22 of 22 Topdanmark A/S Balance sheet as at 30 June 1998 30 June 30 June 31 Dec. DKKm 1998 1997 1997 Liabilities Shareholders' funds Share capital 392 392 396 Share premium account 1,092 1,086 1,092 Reserves Net revaluation reserve at net asset value 758 316 434 Other reserves 743 797 797 Total reserves 1,501 1,113 1,231 Profit carried forward 637 576 619 Total shareholders' funds 3,622 3,167 3,338 Provision for other risks and expenses Provision for pension schemes and similar obligations 5 7 6 Total provision for other risks and expenses 5 7 6 Creditors Amounts due to credit institutions 21 300 0 Amounts due to affiliated companies 38 37 50 Financial instruments 0 7 3 Other creditors 10 8 8 Total creditors 69 352 61 Total liabilities 3,696 3,526 3,405