24/08/20181

Hordaland på Børs22. august 2018Espen Opedal, Country Manager Norway

Tryg at a glance

Non-life insurance in Denmark, Norway and Sweden

NorwayMarket position: #3

Market share: 13.3%CR in Q2 18: 82.8%

SwedenMarket position: #5Market share: 3.1%CR in Q2 18: 98.3%

DenmarkMarket position: #1

Market share: 17.9%CR in Q2 18: 77.2%

49

22

21

8

Private

Commercial

Corporate

Sweden

Business split 2017

Gross premium split by products 2017

Percentage

Percentage

Claims Excellence

DKK 600m in claims cost reduction

Claims Excellence

DKK 600m in claims cost reduction

Digital Empowerment

of Customers

DKK 100mSTP on claims: 50%Self-service: 70%

Digital Empowerment

of Customers

DKK 100mSTP on claims: 50%Self-service: 70%

Tryg 2018 – 2020:

Strengthening the core, while embracing the futureProduct & Service

Innovation

+DKK 1bn in new products by 2020+

Product & Service

Innovation

+DKK 1bn in new products by 2020+

Distribution Efficiency

DKK 150m in technical result impact

Distribution Efficiency

DKK 150m in technical result impact

Financial targets 2020 a)

• Technical result: DKK 3.3bn

• Combined ratio: ≤86

• Expense ratio: ~14

• ROE: ≥21%

Customer targets 2020

• TNPS: 70

• Number of products per customer: +10%

Dividend policy

• Targeting a nominal stable increasing dividend

• Extraordinary dividend to further adjust the capital structure

Long term profitable growth and attractive shareholder value creation

Tryg’s equity story – a leading Scandinavian non-life insurer

a) The targets are conditional upon the authorities’ approval of the Alka acquisition

3

4

• Market share 13.3%

• 1,050 FTE’s + ~ 400 FTE’s in franchise sales

• Premium income NOK 8,1 bn

• 3rd largest in general insurance Norway

• 2 brands (Tryg & Enter)

• Part of Tryg group

• Norwegian head-office in Bergen

Tryg Norway in brief

Geography

Trondheim

Haugesund

Tromsø

Bergen

Bodø

Oslo DrammenFredrikstad

Tønsberg

Førde

Harstad

Kristiansand

Stavanger

Ålesund

Tryg Norway

Tryg Norway is an ambitious player in the Norwegian insurance market with it’sNorwegian head office located in Bergen, and wide geographical presence.

Claims handling and Customer Service located in Bergen and Tønsberg.Strong sales- and underwriting presence for the Commercial- and Corporate market in Oslo and Bergen.

4.7%

4.4%

3.0%

3.4%

2.6%

2.9%

2.0%

2.4%

4.3%

0%

1%

1%

2%

2%

3%

3%

4%

4%

5%

5%

Market share Norwegian Insurance Market

25.6%

21.2%

13.3%

10.5%

29.7%

0%

5%

10%

15%

20%

25%

30%

Gjensidige If Tryg SpareBank 1 Other

Market share traditional players Market share smaller competitors

5

Tryg Norway- Operational and Financial highlights

Gross premium by products 2017

PercentagePrivate Commercial Corporate

Distribution channels 2017

0

1 000

2 000

3 000

4 000

5 000

Private Commercial Corporate

Portfolio split 2017 Combined ratio 2013 - 2017mNOK

6

Bolt-on acquisitions in Private/Commercial & Rates increases in Corporate

7

Norway Corporate rates* under pressure

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

2015 2016 2017 2018 (Q1)

Motor Property Sickness etc. Workers' compensation Health

Source: FNO statistics, average premium development

Tryg Corporate Norway price increases implemented, Q1 2018

Motor 6.1%

Property 5.3%

Fish farming 23.1%

Health 13.5%

Sickness 7.1%

Workers’ Comp 4.3 % 7%

• Portfolio of NOK 170m

• 10 years old company, 35 employees

• 10,000 private customers, 1050 housing associations

• One owner – OBOS BBL

• 5 year exclusive distribution agreement – private

members

• Portfolio expected to produce returns in line with

“Retail” Norway in a couple of years

OBOS Forsikring

• Portfolio of NOK 120m

• Portfolio is 40% Oslo/Akershus

• 12,000 customers – private only

• Distribution through web and inbound

• Purchase price NOK 72m, including a year-end 2017 equity of

NOK 44m and a tax asset of NOK 40m (i.e. no goodwill)

Troll Forsikring

A strong multichannel distribution

8

32 %

25 %

22 %

9 %

6 %6 %

Car channel

Online

Outbound

Bank

Inbound

Franchise

With a pricing diversification strategy

CAR CHANNEL

ONLINE

BANK

PARTNER

FRANCHISE

INBOUND

OUTBOUND

Online sales at ~20% if initiated sales from

online/web to inbound is included

Digital Sales and Self service

Digital contact ~70% in 2020Digital Sales NOK 150m in 2020*

“My Page” log-in: 2016-2018

Months

Tryg NO has already more

digital touchpoints than analogue* Fully automated, non-assisted sales

9

Strong Partner Distribution

Large and growing partner business Success criteria

❑ Strong relations and common goals

❑ Relevant and unique products

❑ Strong distribution network locally

❑ Tailored web solutions

❑ Higher customer life time value (CLTV)

❑ Strong marketing push by Tryg & Partner

Examples;

10

Two Brands, strong presence within new car sales

11

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

Enter Enter/Tryg IF Gjensidige Spb 1 Andre

Forhandlersalg vs porteføljePersonbil privat

2017 Portfolio

Share of new car sales insurance vs market share

Super fast claims handling - straight through processing (STP) in 3 seconds

Our customers' time is valuable …… we make it faster and easier to be a Tryg customer

No. 1 in Europe with claims handling STP

12

Motor-insurance – Cost of claims

14

3,0%1,0%

4,0%

Inflation 2018 Repair costsTechnology

3%

4%

1%

15.3

14,7

2013 2017

Driving costs down – focusing on continuous improvement

15

Expense Ratio, Tryg NorwayExpense Ratio, Tryg Norway

• Staff reductions of 100 FTE in 2016.

• Sourcing agreements with low cost partners.

• Automate processes, utilizing robotics, application development and new solutions

• Procurement processes

Cost Reduction ProgrammeCost Reduction Programme

Why invest in Tryg?

16

Pre-tax result by division (YE 2017 data)

Tryg is a dividend stockMotor combined ratios Nordics vs international

Total yield (dividend and buy backs / market cap) at year end

DKK

High insurance penetration in the NordicsPremiums per capita (USD), 2016

24/08/201817

Takk for oppmerksomheten!Espen Opedal, Country Manager Norway