Contents
2
Highlights Q2 2015 3
Premiums and portfolio 9
Claims 14
Investment, capital and targets 17
For new investors 21
Appendix 29
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.
Financial highlights Q2 2015- Tryg delivered a robust ROE of 21.9% despite a negative investment market, and pays out a semi-annual dividend of DKK 2.50. Satisfactory technical resultwith an underlying improvement in a competitive market.
3
• Pre-tax result of DKK 714m (DKK 1,150m) impacted by:
• negative financial markets and DKK 343m lower investment return due to losses on bonds and lower equity return
• Q2 2014 impacted by one-off effects of DKK 135m
• Technical result of DKK 825m (DKK 941m)
• slightly better than Q2 2014 before one-off effects of DKK 135m.
• ROE of 21.9% (32.1%) p.a. after tax underpins Tryg’s robust business model
• Drop in premium growth of 1.4% in local currencies (-1.2%) affected by competition and loss of large Corporate accounts
• Semi-annual dividend of DKK 2.50 per share
• Equivalent to some 40% of the total dividend based on 2015 results
714
1,015
135
Q2 2015 Q2 2014
Pre-tax profit (DKKm)
82.2
80.7
2.8
Q2 2015 Q2 2014
Combined ratio
15.2
12.6
2.8
Q2 2015 Q2 2014
Expense ratio
83.5
One-off effects
15.4
1,150
Customer highlights Q2 2015- Continued improvement in Net Promoter Score (NPS)
4
• 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.
• 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.
11
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
Key figures Q2/H1 2014/2015
5
DKKm Q2 2015 Q2 2014 H1 2015 H1 2014 2014
Gross premium income 4,550 4,711 9,016 9,294 18,652
Claims, net of reinsurance -2,786 -2,995 -5,861 -6,041 -11,977
Gross expenses -681 -582 -1,366 -1,301 -2,689
Technical result 825 941 1,254 1,464 3,032
Return on investment aftertechnical interest
-84 259 177 348 360
Profit/loss before tax 714 1,150 1,379 1,752 3,302
Profit/loss 580 869 1,105 1,322 2,557
Claims ratio, net of reinsurance
67.0 68.1 71.0 70.7 69.6
Gross expense ratio 15.2 12.6 15.4 14.2 14.6
Combined ratio 82.2 80.7 86.4 84.9 84.2
82.2
80.7
2.8
Q2 2015 Q2 2014
83.5
Combined ratio improved by 1.3 pp.
6
Commercial, DK & NO
80.7
78.8
3.3
Q2 2015 Q2 2014
Group
78.1
79.1
4.4
Q2 2015 Q2 2014
Corporate
Private, DK & NO
82.183.5
84.7
90.3
82.9
1.8
Q2 2015 Q2 2014
One-off effects
78.9
88.6
Q2 2015 Q2 2014
Sweden
87.0
-1.6
Efficiency programme, DKK 38m achieved in Q2
7
• Programme delivering as planned with
target to achieve savings of DKK 750m in
the next 3 years.
• Lower expected 2015 savings than in 2014.
• Claims initiatives:
• In4mo with improved claims control
• New road assistance agreement
• Expense initiatives:
• IT sourcing
• New commercial structure with mandate in frontline
Efficiency programme up until 2017 (DKKm)
150
225
375
175
388 395
73
2012 2013 2014 2015 H1 2015 2016 2017
Achieved Target
Old programme New programme
Expense ratio improved from 15.4 to 15.2
8
• 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
4,5504,711
Q2 2015 Q2 2014
-1.4%
Gross earned premiums reduced by 1.4%
10
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
825
806
135
Q2 2015 Q2 2014
Slight increase in technical result
11
220178
46
Q2 2015 Q2 2014
Commercial, DK & NO (DKKm)
Sweden (DKKm)
434 419
75
Q2 2015 Q2 2014
Group (DKKm)
Corporate (DKKm)
Private, DK & NO (DKKm)
One-off effects
941
494224
180
43
7250-5
Q2 2015 Q2 2014
99161
19
Q2 2015 Q2 2014
90
95
100
105
110
115
DK
NO
12
Motor insurance – average premium (index 2011 = 100)
Private - average premiums- DK profitability strong but competition increasing
90
95
100
105
110
115
DK
NO
House insurance – average premium (index 2011 = 100)
Average premiums increase Y/Y
-2.3% 0.5%
(Q1-1.9%) (Q1 0.8%)
Average premiums increase Y/Y
-0.8% 1.1%
(Q1 -0.8%) (Q1 1.4%)
• NO: price increases from July
• DK: changed selection reducesaverage price
• DK –2.3% decrease y/y driven by:• improved frequency• competitive situation
• Profitability very strong on motor
Customer retention
13
82%
84%
86%
88%
90%
92%
DK
NO
Commercial
82%
84%
86%
88%
90%
92%DK
NO
Private
• High and stable customerretention in Denmark
• Slight decrease in Norway
• Customer retention stablein Denmark
• Retention decreased in Norwayimpacted by changed distribution set-up and competition
69.570.0
Q2 2015 Q2 2014
Improved underlying claims ratio
15
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.
Large claims, weather claims and run-off
16
3.4
4.94.75.0
5.0
6.1
2011 2012 2013 2014 Q2 2014 Q2 2015
Run-off net, effect on combined ratio (%)Claims reserves discounting rate (%)
60 23
721
356
620
447
2011 2012 2013 2014 Q2 2014 Q2 2015
Weather claims, net DKKm
78127
546471
407
574
2011 2012 2013 2014 Q2 2014 Q2 2015
Large claims, net DKKm Expected annual
level 2015: DKK 500m
Expected annual
level 2015: DKK 550m
3.2
2.0
1.5
Q2 20141.4 Q2 2015
0.9
2011 2012 2013 2014 2015
Investment return – loss on bonds
18
Cov. Bonds 67.5%
Bonds/deposits 3.1%
Equities 6.3%
HY 2.5%
EM 1.0%
Inv. Property 5.1%
Bonds/deposits 14.5%
1.1
0.0
-1.2
1.1
-0.1
0.3
Free portfolio return (%)
Portfolio (DKK 41.5bn)
99
8
100
1
19
3
52
68
2129
Bonds Equity HY & EM Inv. Property
Nordics EU ex Nordics North America EM/Other
Geographical exposure (%)
93
5 2
69
1220
88
6 5
AAA AA-A BBB-B
Match Free Total
Rating (%)Free12.2bn 29%
Match29.3bn 71%
Investment return
DKKm Q2 2015 Q2 2014
Free portfolio 41 244
Match regulatorydeviation
-44 49
Match performance -11 50
Other financials -70 -84
Total return -84 259
Capital structure
19
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:
• Result 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
Financial and customer targets
20
Customer targets
Financial targets
Net Promoter Score (NPS) + 100%
Retention rate + 1 pp
Customers ≥ 3 products** + 5 pp
** Private (DK & NO)
2015 2017
ROE after tax = 20% ≥ 21%
Combined ratio ≤ 90 ≤ 87
Expense ratio < 15* ≤ 14
* Excl. One-off effects
0
10
20
30
40
ROE after (%)
Tryg – at a glance I
22
• 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%
Private
DK
NO
82%
84%
86%
88%
90%
92%
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
23
• 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
Tryg’s equity story
24
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
Structure of the Nordic insurance market
10 August 201525
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
56
4
26
14
Own sales
External partners
Online & others
Atlantica/Bilsport MC
63
24
13
Own sales
Affinity
Nordea
45
15
32
8
Own sales
Car dealers
Affinity
Nordea
4357
Own sales
Brokers
Distribution of new sales 2014
26
Norway
Corporate Sweden
Denmark
Percentage
PercentagePercentage
Percentage
80
85
90
95
100
105
110
Combined ratio performance
27
Premium hikes
Premium hikes
Smaller adjustments
Efficiencyprogramme
Customer andefficiency focus
2002-2004 price increases of DKK 2.1bn implemented. Reduced combined ratio from 107 to 94.
2011-2012 price increases will improve underlying combined ratio.
2012-2015 operational focus with target to cut expenses and claims costs by DKK 1bn in total.
2015-2017 New efficiency programme of DKK 750m launched.
*IFRS from 2004. Previous years are Danish GAAP.
Data before 2009 is not corrected for the sale of Marine Hull business, and Finland before 2008.
Key figures 2011-14 and consensus 2015-17
28
Consensus
DKKm 2011 2012 2013 2014 2015 2016 2017
Gross premium income 19,948 20,314 19,504 18,652 18,334 18,480 18,784
Technical result 1,572 2,492 2,496 3,032 2,555 2,782 2,937
Investment income, net 61 585 588 360 348 236 238
Pre-tax profit 1,603 3,017 2,993 3,302 2,785 2,919 3,075
Net income 1,140 2,208 2,369 2,557 2,175 2,274 2,394
Combined ratio 93.2 88.2 87.7 84.2 86.3 85.2 84.7
Expense ratio 16.6 16.4 15.6 14.6(*) 15.3 14.5 14.2
Total insurance provision 34,220 34,355 32,939 31,692
Shareholders’ equity 9,007 10,979 11,107 11,119
Earnings per share 3.8 7.3 7.9 8.7 7.5 8.0 8.6
Dividend per share 1.3 5.2 5.4 5.8 6.1 6.4 6.7
Share buy back 0 800 1,000 1,000 1,011 872 682
Based on 17 estimates * 15.3 excluding one-off
Group
30
12
13
14
15
16
17
18
Expense ratio
75
80
85
90
95
100
Combined ratio
60
65
70
75
80
85
90
95
Claims ratio, net of reinsurance
-4
-2
0
2
4
6
8
4,400
4,600
4,800
5,000
5,200
5,400
Gross premiums
%DKKm
GEP (LHS)
Local currency (RHS)
Private
31
12
13
14
15
16
17
18
Expense ratio
75
80
85
90
95
100
Combined ratio
60
65
70
75
80
85
90
95
Claims ratio, net of reinsurance
-4
0
4
8
1,900
2,100
2,300
2,500
Gross premiums
%DKKm
GEP (LHS)
Local currency (RHS)
Commercial
32
Expense ratio
70
75
80
85
90
95
100
Combined ratio
50
55
60
65
70
75
80
85
90
Claims ratio, net of reinsurance
-8
-4
0
4
8
950
1,000
1,050
1,100
1,150
1,200
Gross premiums
%DKKm
GEP (LHS)
Local currency (RHS)
12
13
14
15
16
17
18
19
20
21
Corporate
33
9
10
11
12
13
14
Expense ratio
80
85
90
95
100
105
Combined ratio
65
70
75
80
85
90
95
Claims ratio, net of reinsurance
-8
-4
0
4
8
900
1,000
1,100
1,200
Gross premiums
%DKKm
GEP (LHS)
Local currency (RHS)
Sweden
34
5
10
15
20
25
30
Expense ratio
75
90
105
120
Combined ratio
60
65
70
75
80
85
90
95
Claims ratio, net of reinsurance
-15-10-50510152025
250
300
350
400
450
500
Gross premiums
%DKKm
GEP (LHS)
Local currency (RHS)
Geographical segments
Norway
DKKm Q2 2015 Q2 2014 H1 2015 H1 2014 FY 2014
Gross premiums earned
1,777 1,872 3,468 3,653 7,337
Technical result 403 652 458 844 1,478
Key ratios:
Gross claims ratio 62.3 62.2 69.7 67.9 66.5
Result of ceded business
0.3 1.2 2.0 0.4 1.4
Gross expense ratio 15.0 2.5 15.5 9.2 12.5
Combined ratio 77.6 65.9 87.2 77.5 80.4
Sweden
DKKm Q2 2015 Q2 2014 H1 2015 H1 2014 FY 2014
Gross premiums earned
482 508 914 974 1,975
Technical result 93 59 163 96 44
Key ratios:
Gross claims ratio 61.4 70.3 63.2 70.5 77.6
Result of ceded business
2.1 0.0 1.1 1.4 2.2
Gross expense ratio 17.2 18.5 17.8 18.7 18.4
Combined ratio 80.7 88.8 82.1 90.6 98.2
Denmark
DKKm Q2 2015 Q2 2014 H1 2015 H1 2014 FY 2014
Gross premiums earned
2,299 2,336 4,643 4,675 9,361
Technical result 329 230 633 524 1,510
Key ratios:
Gross claims ratio 107.1 77.5 88.0 73.9 66.9
Result of ceded business
-35.8 -6.0 -16.2 -1.6 2.1
Gross expense ratio 14.4 18.9 14.4 16.7 15.1
Combined ratio 85.7 90.4 86.2 89.0 84.1
35
Norway
% 2015 2016
GDP Growth (mainland) 1.5 1.7
Inflation 2.3 2.0
Unemployment 4.1 4.4
Current account balance in % of GDP
5.4 8.2
Budget balance in % of GDP 6.7 8.2
Public debt in % of GDP 0.0 0.0
Sweden
% 2015 2016
GDP Growth 2.6 2.4
Inflation 0.2 1.4
Unemployment 7.7 7.5
Current account balance in % of GDP
5.4 6.0
Budget balance in % of GDP -1.2 -0.6
Public debt in % of GDP 43.9 42.6
Economic key figures
36
Source: Economic Outlook, Nordea Markets, June 2015
Denmark
% 2015 2016
GDP Growth 1.7 2.0
Inflation 0.6 1.7
Unemployment 4.7 4.5
Current account balance in % of GDP
5.5 5.1
Budget balance in % of GDP -1.2 -1.9
Public debt in % of GDP 39.1 40.1