Front page slide

Jyske Bank – SelskabsdagSilkeborg – 7 September 2015

Peter Brondt, IR Manager Follow us on Twitter: @TrygIR

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Disclaimer

Agenda

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.

Tryg – at a glance I

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• Tryg goes back to 18th century.

• Very strong brand position especially in Denmark.

• Non-life insurance in Denmark, Norway and Sweden.

• Approx. 80% retail business.

82%

84%

86%

88%

90%

92%

Retention rate - Private

DK

NO

82%

84%

86%

88%

90%

92%

Retention - Commercial

DK

NO

NorwayMarket position: #3

Market share: 13.6%CR in 2014: 80.4

SwedenMarket position: #5Market share: 3.0%CR in 2014: 98.2

DenmarkMarket position: #1

Market share: 18.2%CR in 2014: 84.1

56

23

21

Private

Commercial

Corporate

Business split 2014

31

5

115

24

14

10

Motor

Workers' comp

Health & accident

Liability

Fire & property - private

Fire & property - comm.

Other

Gross premium split by products 2014

Percentage

Percentage

4.2

6.6

3.4

1.3

3.1

0.81.3

5.2 5.4 5.8

2.5

4.2

2.6

2.63.2

3.4

0

1

2

3

4

5

6

7

8

9

10

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 H1

2015

Cash dividend Ordinary buy back Extraordinary buy back

0%

10%

20%

30%

40%

50%

60%

60

9

14

17

Danishinstitutional

Non-Danishinstitutional

Smallershareholders

Tryg – at a glance II

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• Tryg goes back to 18th century.

• Very strong brand position especially in Denmark.

• Non-life insurance in Denmark, Norway and Sweden.

• Approx. 80% retail business.

Shareholder breakdown 2014

Strengthening of brand value

Shareholder performance since IPO

Low risk investment portfolio

New dividend policy

Shareholder remuneration since IPO

Standard deviation 2011-2013

DKK

Percentage

0

25

50

75

100

125

150

175

200

225

250

275

300

325

350

375

400

425

450

475

Tryg incl. dividend Euro Insurance index

Structure of the Nordic insurance market

5

Denmark

DKK 51.0bn/EUR 6.8bn (as at Q2-2014)

Sweden

SEK 70.9bn/EUR 7.5bn (as at Q1-2015)

Norway

NOK 55.4bn/EUR 6.3bn (as at Q1-2015)

Nordic

EUR 25.1bn (as at Q4-2013)

13.6

22.6

25.1

10.1

28.6 Tryg

If

Gjensidige

Sparebank1

Other

9.9

4.7

17.6

9.0

8.69.2

41.0

Tryg

Topdanmark

If

Codan

Gjensidige

Länsforsikringar

Other

18.2

17.7

6.1

11.86.4

9.8

30.0Tryg

Topdanmark

If

Codan

Gjensidige

Alm. Brand

Other

3.0

18.3

15.6

1.6

30.3

16.4

14.8

Moderna (Tryg)

If

Trygg-Hansa (Codan)

Gjensidige

Länsforsikringar

Folksam

Other

Percentage

PercentagePercentage

Percentage

Tryg’s equity story

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Long term profitable growth and attractive shareholder value creation

Financial targets 2017

• ROE: ≥21%

• Combined ratio: ≤87%

• Expense ratio: ≤14%

Customer targets 2017

• NPS +100%

• Retention rate +1 pp

• ≥ 3 products +5 pp

Dividend policy

• Payout ratio of 60-90%

• Aiming for a nominal stable increasing dividend

• 90% first contact resolution

• Annual coverage check

• 25% of tariffs better than peers in 2017

• Differentiated product offering

• Efficiency programme of DKK 750m

• Claims procurement

• Reducing expense level

• Matching assets and liabilities

• Low risk investment portfolio

Low risk and high returns

Leading in efficiency

Leading Scandinavian insurer with strong

track record

Customer care worth recommending

Next level pricing

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We aim to improve NPS to drive retention and engagement

Source: Company data

Correlation between

engagement and NPS

Correlation between

loyalty and NPS

Correlation between

retention and NPS

• 1 pp change in retention rate = DKK 50-150m change in expenses depending on BU and timing.

• The average premium of customers with ≥3 products is ~50% higher than the portfolio average.

• Customers with ≥3 products have a life time value ~120% higher than the portfolio average.

Customer highlights Q2 2015- Continued improvement in Net Promoter Score (NPS)

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• New price-differentiated products launched:

• Personal accident insurance in both Denmark and Norway

• Holiday home insurance in Norway

• Change of car ownership insurance in Denmark

• The new car insurance launched in Q1 was recommended ‘best in test’ by the Danish Consumer Council.

• Approval of TryghedsGruppen’s members’ bonus scheme by the Danish Business Authority.

• Launch of Tryg Home Hotline – service hotline for customers to ask questions regarding issues related to their house, apartment or holiday home, such as damp issues.

• Tryg’s Swedish Corporate business voted the best company by insurance brokers for the third year running.

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2022

CMD 2014 Q2 2015 Target 2017

NPS

56.3 56.661.3

CMD 2014 Q2 2015 Target 2017

Customers with ≥3 products (%)

87.9 88.0 88.9

CMD 2014 Q2 2015 Target 2017

Retention rate

Building pricing power

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2013 2014

Pricing competetivness

2017

Reductions in expenses and claims costs

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Expense reduction

Claims reduction

DKK 1,000m

Efficiency programme 2012 - 2015

Expense reduction

Claims reduction

DKK 750m

Efficiency programme 2015 - 2017

Expense reduction 2015 - 2017 Claims reduction 2015 - 2017DKKm DKKm

Expense reductions towards 2017

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DKK

250m

Sourcing

• Staff functions

• Business areas

Simplification

• First contact resolution

• Reduced lead time at customer contacts

• Continuous improvement

Improved retention rates

Sourcing criteria

1. Customer experience

2. Cost efficiency

3. Standardisation and automation

4. Scalability and flexibility

5. Transition and risk

Sourcing in Tryg

2013: IT 2014: Finance

Accounting

(50 FTE)

2015-: Remaning

staff and BUs

Startup fase

Expense ratio improved from 15.4 to 15.2

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• Expense ratio improved from 15.4 in Q2 2014 to 15.2 in Q2 2015 – (adjusted for one-off effects in Q2 2014).

• 2015 will be impacted by one-off costs relatedto new efficiency programme.

• Efficiency programme delivered savings of DKK 15m related to:

• Outsourcing within financial area• IT sourcing

• Reduction in FTE by 104 since Q4 2014.

4,077

3,914

3,703

3,599

3,495

2011 2012 2013 2014 Q2 2015

FTE - Development

15.4 *15.2

16.6 16.4

15.6

14.6

2011 2012 2013 2014 Q2 2014 Q2 2015

Expense ratio

* Adjusted for one-off effects

Nominal costs in business areas

340

171109

61

281

13398

70

76

46

19

-6 Private Commercial Corporate Sweden

Q2 2015 Q2 2014 One-off effects

13

DKK 500m

Utilising spend data and transparency from In4mo system.

Dedicated competence team to help customers quickly back to normal life.

Enhanced fraud detection.

Further consolidation and utilisation of Nordic procurement volume.

DKK

500m

New claims initiatives towards 2017

Reduction in suppliers Distribution of savings 2015 Distribution of savings 2017

46,000

26,000

69.570.0

Q2 2015 Q2 2014

Improved underlying claims ratio

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63.6 62.8

Q2 2015 Q2 2014

Commercial (DK & NO)

75.672.8

Q2 2015 Q2 2014

Sweden

68.3 68.8

Q2 2015 Q2 2014

Group

76.579.3

Q2 2015 Q2 2014

Corporate

Private (DK & NO)

Underlying development is adjusted for large claims, weather claims, run-off and interest.

4,5504,711

Q2 2015 Q2 2014

-1.4%

Gross earned premiums reduced by 1.4%

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Gross earned premiums (DKKm)

DKKm Q2 2015 Q2 2014Local currencies

Q2 2015Local currencies

Q2 2014

Private 2,226 2,275 -0.3% 0.1%

Commercial 997 1,053 -4.3% -3.9%

Corporate 993 1,030 -1.4% 1.8%

Sweden 342 358 -1.8% -9.3%

Group 4,550 4,711 -1.4% -1.2%

Gross earned premiums reduced 1.4% (-1.2%) related to:

• Private impacted by the competitive situation. Retention was stable in Denmark but decreased slightly in Norway

• Commercial Norway impacted by a weaker economic situation and the competitive situation

• Corporate development impacted by loss of large accounts and one-off impact in same quarter last year

Capital structure

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6,694

3,400

Q2 2015

Capital – Q2 2015, DKKm

10,036 9,571

1,7931,801

Q2 2015 Q1 2015

Equity Subordinated loan capital

Equity and subordinated loan, DKKm

Capitalrequirement

Excess capital

Buffer

• Capital buffer based on Individual Solvency decreased to 51% (Q1 2015: 55%) and was impacted by:

• Results Q2 2015

• Executed share buy back of 2015 and H1 cash dividend 2015

• Based on Solvency II standard model, the capital buffer was 21% (Q1 2015: 23%)

• H1 2015 cash dividend of DKK 2.5 per share (DKK 746m)

Solvency II unsolved issues:

• Future eligibility in Norway of Natural Perils Pool and the Guarantee scheme provision in own funds

• Internal model expected to be approved by 31 December 2015 at the latest. Application has been submitted

Tryg’s equity story

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Long term profitable growth and attractive shareholder value creation

Financial targets 2017

• ROE: ≥21%

• Combined ratio: ≤87%

• Expense ratio: ≤14%

Customer targets 2017

• NPS +100%

• Retention rate +1 pp

• ≥ 3 products +5 pp

Dividend policy

• Payout ratio of 60-90%

• Aiming for a nominal stable increasing dividend

• 90% first contact resolution

• Annual coverage check

• 25% of tariffs better than peers in 2017

• Differentiated product offering

• Efficiency programme of DKK 750m

• Claims procurement

• Reducing expense level

• Matching assets and liabilities

• Low risk investment portfolio

Low risk and high returns

Leading in efficiency

Leading Scandinavian insurer with strong

track record

Customer care worth recommending

Next level pricing

Questions?

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