Tryg A/s · OMXCOP:TRYG
Tryg A/s — Finansanalytikerforeningens Virksomhedsdag 2012
20 slides from Tryg A/s's conference presentation, Jun 7, 2012
Slide 1: Finansanalytikerforeningens Virksomhedsdag 2012
premiumsV Finansanalytikerforeningens Virksomhedsdag 2012 Tor Magne Lønnum - CFO 7 June 2012 1
Slide 2: Disclaimer
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, financ
Slide 3: Tryg – at a glance
Tryg – at a glance • 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. Sweden • Only Non-life insurance in Market position #5 Market share 3.9% the Nordic area. CR 2011 104.9 • Listed
Slide 4: Facts about Tryg
Facts about Tryg Gross premium split by geography - 2011 Shareholder breakdown 3.1 9 9.9 Danish institutional 15 Denmark Non-Danish Norway institutional Percent 48.6 Percent Sweden Smaller shareholders 60 16 Finland 38.4 TryghedsGruppen Gross premium split by segments - 2011 Share performance since
Slide 5: Structure of the Nordic insurance markets
Structure of the Nordic insurance markets Denmark Norway DKK 47.6bn/EUR 6.4bn (as at Q1-11) NOK 45.6 bn/EUR 5.9bn (as at Q4-11) Other 27.6 Tryg 16.4 Other 20.9 If 5.7 Gjensdige 5.6 Tryg 20.8 Percent Percent Sparebank1 11.3 Alm. Brand Nordic If 25.1 9.8 EUR 21.6bn (as at Q4-10) Topdanmark Other 38.5
Slide 6: Cash flow – show me the money
P re m iu Cash flow – show me the money….. ms Expenses Return to Claims shareholders Investments 6
Slide 7: Tryg SWOT
Tryg SWOT Strength Weaknesses • Strong brand position in Denmark • Sub-scale Finland • Customer loyalty • Commercial segmentation • Multi channel strategy • Price differentiation • Ownership structure Opportunities Threats • Differentiated peace-of-mind deliveries • Claims inflation • Customer self-
Slide 8: DK and NO - high customer loyalty
DK and NO - high customer loyalty House insurance – average price (index 2005 = 100) 150 140 130 120 110 100 90 2005 2006 2007 2008 2009 2010 2011 Customer retention – private customers 94 92 90 88 86 84 82 2005 2006 2007 2008 2009 2010 2011 8
Slide 9: Profitability, profitability and profitability
Profitability, profitability and profitability 2002-2004 • Financial crisis in 2001 • Gearing up for an IPO Growth Profitability 2005-2009 • Financial upswing • High returns Growth Profitability • Sweden & Finland growth focus 2010-2012 Growth Profitability • Financial crisis starting 2008 • Acquisi
Slide 10: Results 2005 – 2011
Results 2005 – 2011 ROE after tax 40% 30% 20% 20% 10% 0% 2005 2006 2007 2008 2009 2010 2011 Combined ratio 100 95 90 90 85 80 75 70 2005 2006 2007 2008 2009 2010 2011 10
Slide 11: Investments
Investments Challenging environment Investment assets Total assets – Q1 2012 2 6 12 5 Equities Real estate 7 C ov. Bonds Percentage Govt. Bonds Bank deposits/bonds 68 High yield Matching - Eliminate interest rate risk Bond yield net Discounting 004 2005 2006 2007 2008 2009 Low risk investestment str
Slide 12: Growth consumes capital
Growth consumes capital DKKm Gross earned premiums 21,000 20,000 19,000 18,000 17,000 16,000 15,000 2005 2006 2007 2008 2009 2010 2011 Capital 11,000 10,000 9,000 8,000 2005 2006 2007 2008 2009 2010 2011 12
Slide 13: Capitalisation
Capitalisation • 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. S&P model IC model D KKm • Capital buffer based on the Internal 12,000 Capital (IC) model increased to 26% end 9% buffer 10,000
Slide 14: Themes in Tryg
L_ eed S A rived Themes in Tryg
Slide 15: Tryg and value creation
Tryg and value creation Peace-of-mind delivery ROE: 20 % Creating a new culture Claims initiatives Combined ratio: 90 Expenses 15
Slide 16: Create a new culture – balance peace-of-mind deliveries & results
Create a new culture – balance peace-of-mind deliveries & results Focus Price differentiation Cost-efficiency From 20 KPI’s to 5 Time to market New focused Strategic review Improved organisation Finland procurement 16
Slide 17: Weather claims - a focus area
Weather claims - a focus area Copenhagen cloudburst Storm ’Dagmar’ Norway floods New Denmark storm reinsurance feature Denmark cloudbursts Storm ’Berit’ 2011 Feb June July Aug Nov Dec 2012 17
Slide 18: Large and weather claims
Large and weather claims Large claims, gross DKKm • Large claims gross amounted to DKK 858m in 2011 against DKK 813m in 2010. 1,000 813 858 • Large claims net amounted to DKK 546m in 800 2011 against DKK 709m in 2010. 600 523 400 200 0 Average 2006- Q1-Q4 2010 Q1-Q4 2011 09 Expected full year level
Slide 19: Summary
Summary Ambitious targets But on track to deliver… Combined ratio: 90 ROE 20 % 19
Slide 20: Questions?
Questions?
Tryg — Finansanalytikerforeningens Virksomhedsdag 2012 on 6ix