Q2 and H1 2014 results

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Disclaimer

Certain statements in this presentation are based on the beliefs of our management as well as assumptions made by

and information currently available to the management. Forward-looking statements (other than statements of

historical fact) regarding our future results of operations, financial condition, cash flows, business strategy, plans and

future objectives can generally be identified by terminology such as “targets”, “believes”, “expects”, “aims”, “intends”,

“plans”, “seeks”, “will”, “may”, ”anticipates”, “continues” or similar expressions.

A number of different factors may cause the actual performance to deviate significantly from the forward-looking

statements in this presentation including but not limited to general economic developments, changes in the

competitive environment, developments in the financial markets, extraordinary events such as natural disasters or

terrorist attacks, changes in legislation or case law and reinsurance.

We urge you to read our annual report available on tryg.com for a discussion of some of the factors that could affect

our future performance and the industry in which we operate.

Should one or more of these risks or uncertainties materialise or should any underlying assumptions prove to be

incorrect, our actual financial condition or results of operations could materially differ from that described herein as

anticipated, believed, estimated or expected.

We are not under any duty to update any of the forward-looking statements or to conform such statements to actual

results, except as may be required by law.

Highlights Q2 2014 - Improved results and positive trend in premium income.

688

1,150

0

200

400

600

800

1,000

1,200

Q2 2013 Q2 2014

D KKm

80.786.7

6065

707580

8590

95100

Q2 2013 Q2 2014

Pre-tax profit

Combined ratio

2.8

15.6

12.6

0

4

8

12

16

20

Q2 2013 Q2 2014

Expense ratio

3

• Pre-tax profit of DKK 1,150m (DKK 688m).

• Technical result of DKK 941m (DKK 684m).

• Combined ratio improved by 6.0 pp. to 80.7 (86.7).

• Premium dropped 1.2% (-2.6%) - however, an improved trend in development.

• Expense ratio of 12.6 (15.6) impacted by Norwegian pension scheme and IT costs.

• Investment return of DKK 259m (DKK 13m) impacted by positive financial markets.

• 40% of the share buy back programme of DKK 1,000m completed.

15.4 One-off

Important news in Q2 2014

• Many customer focused initiatives initiated.• Customer SMS measuring with strong results

• Extended opening hours

• 3 new price differentiated products in Norway.

• Regular inspection by Danish FSA confirmed satisfactory view on risk control, reserve and capital position.

• Efficiency programme progress as planned. DKK 93m reached in Q2.

• Successful integration of agriculture portfolio acquired from Codan.

• Tryg received fewer complaints than other insurance companies relative to market share.

4

5

Combined ratio development in business areas

Group CRQ2 2014: 80.7Q2 2013: 86.7

Combined ratio – Commercial (DK & NO)Combined ratio – Private (DK & NO)

Combined ratio – Private Sweden Combined ratio – Corporate

86.7

79.1

88.4

80.4

75

80

85

90

95

100

Q2 2013 Q2 2014 H1 2013 H1 2014

94.3

88.6

94.7

88.6

80

85

90

95

100

105

110

Q2 2013 Q2 2014 H1 2013 H1 2014

87.2

82.9

88.090.6

80

85

90

95

100

Q2 2013 Q2 2014 H1 2013 H1 2014

84.9

78.8

87.4

83.3

75

80

85

90

95

100

Q2 2013 Q2 2014 H1 2013 H1 2014

1,000

700

300

740

550

190

0

200

400

600

800

1,000

1,200

Target 2015 Achieved 2012-2013 Achieved H1 2014

6

DKKm

Efficiency programme up until 2015

Targeted and achieved savings on claims

• Savings of DKK 740m achieved so far.

• DKK 93m achieved in Q2 2014.

• DKK 28m reduction in expenses

• DKK 65m reduction in claims

• Increased benefit from Buildings and Content initiatives.

• Craft network (carpenter, plumber etc.)

• E-auction

• ScalepointExpenses Claims Total

Follow up on efficiency programme

Premiums and portfolio

Gross earned premiums, DKKm

2,363 2,275

1,124

1,062 1,030

420 358

1,053

0

1,000

2,000

3,000

4,000

5,000

6,000

Q2 13 Q2 14

Private Commercial Corporate Sweden

8

Topline and technical result

Gross earned premiums reduced 1.2% (-2.6%) related to:

• Continued high retention level in Private and even improved retention level in Commercial.

• Higher sales level in general in Private compared to last year.

• Commercial – improved retention but sales lower than expected.

• Corporate – growth in Sweden, slightly positive development in DK and NO.

• Sweden affected by cancellation of Nordea agreement.

4,962 4,711

Technical result, DKKm

364494

153

224139

180

43

28

0100200300400500600700800900

1,0001,100

Q2 13 Q2 14

Private Commercial Corporate Sweden

941

684

Local currency

Group: -1.2 (-2.6)

-9.3 (-4.3)

1.8 (-2.6)

-3.9 (-3.1)

0.1 (-2.0)

90

100

110

120

130

140

150

2008

2009

2010

2011

2012

2013

2014

9

Private - average premiums

House insurance – average premium (index 2008 = 100)

Motor insurance – average premium (index 2008 = 100)

90

100

110

120

130

140

2008

2009

2010

2011

2012

2013

2014

Average premiums increase Y/Y

Average premiums increase Y/Y

2.6%

(Q1 2.9%)

0.5%

(Q1 0.6%)

-0.6%

(Q1 -0.9%)

1.8%

(Q1 2.3%)

82%

84%

86%

88%

90%

92%

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

10

Customer retention

Private

Commercial

82%

84%

86%

88%

90%

92%

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2-14

60%

69%

78%

Q1-10

Q2-10

Q3-10

Q4-10

Q1-11

Q2-11

Q3-11

Q4-11

Q1-12

Q2-12

Q3-12

Q4-12

Q1-13

Q2-13

Q3-13

Q4-13

Q1-14

Q2-14

11

Private Sweden – CR and customer retention

125

103

99102 103

9997

114

110

95

91

88

95 94

88 88 89 89

80

85

90

95

100

105

110

115

120

125

130

Q1-10

Q2-10

Q3-10

Q4-10

Q1-11

Q2-11

Q3-11

Q4-11

Q1-12

Q2-12

Q3-12

Q4-12

Q1-13

Q2-13

Q3-13

Q4-13

Q1-14

Q2-14

Customer retention

Nordea portfolio

Claims and expenses

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Underlying claims, net Q2 2013/2014

CR and claims ratios Q2 2013-14

Claims ratio development - Group

72.168.8

65.662.8

78.7 79.3

72.3 70 72.876.7

Q2 2013 Q2 2014

Group Private Commercial Corporate Sweden

65707580

859095

Q1 09

Q4 09

Q3 10

Q2 11

Q1 12

Q4 12

Q3 13

Q2-14

Gross claims rat io Claims rat io, net of reinsurance

• Underlying development is adjusted for:

• Large claims

• Weather claims

• Run-off and interest

• Improved underlying development on Group level driven by:

• one-off effects

• efficiency improvements

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Run-off, net DKKm

Large claims, weather claims and run-off

Large claims, net DKKm Weather claims, net DKKm

207

78

0

50

100

150

200

Q2 2013 Q2 2014

65 60

0

50

100

150

200

Q2 2013 Q2 2014

Expected annual

level 2014: DKK 500m

Expected annual

level 2014: DKK 550m

Run-off net, effect on combined ratio

260

162

0

50

100

150

200

250

300

Q2 2013 Q2 2014

3.4%3.0%

4.0%

5.0%

6.0%

7.0%

2007 2008 2009 2010 2011 2012 2013 Q22014

Expense ratio development

Expense ratio

15

4,076

3,913

3,7033,655 3,639

4,101

2010 2011 2012 2013 Q1 2014 Q2 2014

FTE development

15.6

12.6

15.6

16.416.616.716.6

2009 2010 2011 2012 2013 Q22013

Q22014

• Expense improved from 15.6 in Q2 2013 to 12.6 in Q2 2014.

• Excluding one-off effects, expense ratio was15.4 - an improvement of 0.2 pp.

• Nominal expenses on Group level reducedsignificantly in Q2 2014.

• One-off effects of DKK 135m• Efficiency programme

• Reduction in FTE by 64 since Q4 2013.

DKKm

Nominal costs in business areas

11674

13398

368

206

70

281

Private Commercial Corporate Sweden

Q2 2013 Q2 2014

Q2: One-off effectsof 2.8%-point

Investment, capital and financial targets

17

Investment result Q2 2014

Free investment

Match regulatory deviation

Match performance

Other financials

Total return

0.7% 0.6%

3.3%4.0%

1.0%

1.9%

5.1%

Govt. B

onds

Cov. B

onds

Hig

h-yie

ldEm

ergi

ng m

arke

ts

Equi

ties

Inve

stm

ent p

rope

rty

Tota

l

Free portfolio – Q2 2014 (DKK 12.7bn)

3

7

24

37

1710

2

Equities (22)

Investment property (15)

Bank deposits/bonds (15)

Govt. Bonds (3)

High yield (6)

Cov. Bonds (36)

Em. market bonds(3)

Percentage

Match portfolio – Q2 2014 (DKK 30.7bn)

5

95

Cov. Bonds (94)

Bank deposits/bonds (6)

Percentage

Percentage return – free portfolio

Investment return

DKKm

244

49

50

-84

259

18

Capital structure and status on share buy back

• Capital buffer based on Individual Solvency increased to 63% (2013 Q4: 50%) and was impacted by:

• H1 result 2014• H1 share buy back deducted

in buffer.

• Based on Solvency II model the capital buffer was 29% (2013 Q4: 25%).

• 40% of 2014 share buy back of DKK 1bn completed.

Unsolved Solvency II issues:

Negatives: • Recommendation from FSA Norway• Future eligibility in Norway of Natural

Perils Pool and the Guarantee scheme provision in Solvency II.

Positives: • Expected future profits • Full inclusion of subordinated capital

11,107 10,525

1,8181,820

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2013 Q4 2014 Q2

Subordinated loancapitalEquity

Equity and subordinated loan

Capital – Q2 2014

6,734

0

4,000

8,000

12,000

Individual Solvency

Capital requirement

Buffer

Excess capital

4,218

DKKm

DKKm

0%

10%

20%

30%

40%

2005

2006

2007

2008

2009

2010

2011

2012

2013

H1 2

014

2014

2015

19

Financial targets

ROE target

ROE after tax

ROE after tax of 20% to be achieved by delivering a full year combined ratio

of 90 or lower.

Expense ratio <15 in 2015

Q/A

Follow us on Twitter: @TrygIR

BerenbergLars Bonde, Group EVP and COO Peter Brondt, IR Manager

Frankfurt/ Munich15/09/2014

CarnegieLars Møller, IR DirectorVienna09/09/2014

CarnegieLars Møller, IR DirectorMilan08/09/2014

Danske MarketsMorten Hübbe, CEOPeter Brondt, IR ManagerParis03/09/2014

SEBTor Magne Lønnum, CFOPeter Brondt, IR Manager

Oslo29/08/2014

KBW European Financials Conference

Tor Magne Lønnum, CFO Peter Brondt, IR Manager

London17/09/2014

Date Place Participants from Tryg Arranged by

10/07/2014 Copenhagen

Morten Hübbe, CEOTor Magne Lønnum, CFOLars Bonde, Group EVP and COOInvestor Relations

Danske Markets

11/07/2014 LondonMorten Hübbe, CEOTor Magne Lønnum, CFOInvestor Relations

ABG

19-22/08/2014 Canada/ USA Lars Møller, IR Director Danske Markets

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