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premiumsV
HandelsbankenNordic Mid/Small Cap Seminar
Tor Magne Lønnum - CFO
11 June 2012
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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.
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Tryg – at a glance
NorwayMarket position #3
Market share 16.4%CR 2011 93.4
DenmarkMarket position #1
Market share 20.8%CR 2011 90.3
SwedenMarket position #5Market share 3.9%
CR 2011 104.9
FinlandMarket share 2.2%
CR 2011 106.2
• Tryg’s history goes back to the 18th century.
• The current Tryg was formed in 2002 by sale of Nordea’s non-life activities – with a continuing strategic partnership.
• Only Non-life insurance in the Nordic area.
• Listed Oct. 2005 on Nasdaq OMX Copenhagen.
• Majority owner : TryghedsGruppen (60%) a mutual foundation rooted in Denmark.
• Turnover 2011: DKK 20.6bn (~EUR 2.8bn).
• CEO: Morten Hübbe.
• 4,318 employees.
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Shareholder breakdown
Facts about Tryg
3.19.9
38.4
48.6
Denmark
Norway
Sweden
Finland
9
15
1660
Danish institutional
Non-Danishinstitutional
Smaller shareholders
TryghedsGruppen
9.0
13.7
10.7
6.0 20.1
23.6
12.54.4
Motor - TPL
Motor - casco
Workers' comp.
Health & accident
Liability
Fire & property - private
Fire & property - comm.
Other
Gross premium split by geography - 2011
Percent Percent
Share performance since IPOGross premium split by segments - 2011
Percent
0
50
100
150
200
250
Tryg Euro Insurance Index
200 5 2006 2007 2008 2009 2010 2011 2012
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Structure of the Nordic insurance markets
Other 27.6
Alm. Brand 9.8
Codan 12.5Topdanmark
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If 5.7
Tryg 20.8Gjensdige
5.6 Sparebank1 11.3
Gjensidige 26.3
If 25.1
Tryg 16.4Other 20.9
Other 16.1
Codan 15.8
If 18.7
Läns-forsäkringar
28.4
Gjensidige 1.2
Moderna 3.9
Folksam 15.4 Fennia 9.7
Tryg 2.2Other 17.6
If 23.9
Pohjola 28.6
Tapiola 18
Percent Percent
Percent Percent
Läns-försäkringar
8.5
Tryg 11.8
Topdanmark 5.3
If 17.4Codan 9.4
Gjensidige 9.1
Other 38.5
Nordic
EUR 21.6bn (as at Q4-10)
Percent
Denmark
DKK 47.6bn/EUR 6.4bn (as at Q1-11)
Norway
NOK 45.6 bn/EUR 5.9bn (as at Q4-11)
Sweden
SEK 63.2bn/EUR 7.0bn (as at Q4-11) Finland
EUR 3.7bn (as at Q4-11)
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82
84
86
88
90
92
94
DK and NO - high customer loyalty
Customer retention – private customers
2005 2006 2007 2008 2009 2010 2011
90
100
110
120
130
140
150
2005 2006 2007 2008 2009 2010 2011
House insurance – average price (index 2005 = 100)
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Growth Profitability
2002-2004
Growth Profitability
2005-2009
Growth Profitability
2010-2012
• Financial crisis in 2001 • Gearing up for an IPO
• Financial upswing• High returns • Sweden & Finland growth focus
• Financial crisis starting 2008
• Acquisition of Moderna
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Profitability, profitability and profitability
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Results 2005 – 2011
0%
10%
20%
30%
40%
2005 2006 2007 2008 2009 2010 2011
70
75
80
85
90
95
100
2005 2006 2007 2008 2009 2010 2011
Combined ratio
ROE after tax
20%
90
9
7
68
52 6
12 Equities
Real estate
Cov. Bonds
Govt. Bonds
Bank deposits/bonds
High yield
Investments
Investment assets
Low risk investestment strategy
Challenging environment
Total assets – Q1 2012
Percentage
004 2005 2006 2007 2008 2009
Matching - Eliminate interest rate risk
net
Bond yield
Discounting
10
Gross earned premiums
15,000
16,000
17,000
18,000
19,000
20,000
21,000
2005 2006 2007 2008 2009 2010 2011
Growth consumes capital
Capital
8,000
9,000
10,000
11,000
2005 2006 2007 2008 2009 2010 2011
DKKm
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6,000
8,000
10,000
12,000
TAC S&P A-level Availablecapital
ICA*
D KKm
S&P A-level Buffer (5%) Surplus capital
Capitalisation
9% buffer
• Capital buffer based on Standard & Poor’s
capital model increased to 9% end Q1
2012 and totalled DKK 887m of which the
5% self imposed buffer was DKK 517m.
• Capital buffer based on the Internal
Capital (IC) model increased to 26% end
Q1 2012.
• S&P capital position end Q1 2012
impacted by:
• Higher capital requirement related to
higher market value of investment
assets.
• Strong Q1 2012 result.
26 % buffer
S&P model IC model
* ICA = Individual Capital Assessment
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Themes in Tryg
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Tryg and value creation
Creating a new culture
Claims initiatives
Expenses
Peace-of-mind deliveryROE: 20 %
Combined ratio: 90
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Create a new culture – balance peace-of-mind deliveries & results
New focused organisation
FocusFrom 20 KPI’s to 5
Price differentiationTime to market
Improved procurement
Strategic review Finland
Cost-efficiency
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Weather claims - a focus area
2011
New reinsurance
feature
2012Feb July Aug Nov DecJune
Denmark cloudbursts
Storm ’Dagmar’
Copenhagen cloudburst
Storm ’Berit’
Norway floods
Denmark storm
16
523
0
200
400
600
800
1,000
Average 2006-09
Q1-Q4 2010 Q1-Q4 2011
813 858
Large and weather claims
• Large claims gross amounted to DKK 858m in 2011 against DKK 813m in 2010.
• Large claims net amounted to DKK 546m in 2011 against DKK 709m in 2010.
Large claims, gross DKKm
Expected full year level 2012
Weather claims, DKKm
290142
1,589
192
828878
0
200
400
600
800
1,000
1,200
1,400
1,600
Aver. 2006-09 2010(Gross) 2010(Net) 2011(Gross) 2011(Net)
1,168
970
554
Expected full year level 2012. Winter and storm/cloudburst gross
Winter claims
Storm/cloudburst
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Summary
Ambitious targets
Combined ratio: 90ROE 20 %
But on track to deliver…
Questions?