Tryg A/s · OMXCOP:TRYG
Tryg A/s — TrygVesta — Goldman Sachs conference, Madrid 2010
14 slides from Tryg A/s's conference presentation, Jun 9, 2010
Slide 1: Challenges and opportunities in the Nordic insurance market
Challenges and opportunities in the Nordic insurance market Goldman Sachs - 9 June 2010 - Morten Hübbe, CFO Presentation can be downloaded at www.trygvesta.com 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: Enhancing profitability
Enhancing profitability Others Travel 17% 4% Combined ratio, in % Car Accident 29% Price increases 25% 2010: DKK 900m 110 109 104 107 Price increases Content 101 11% House 14% 100 94 92 Lower 91 89 86 86 interest 90 88 impacts 1.7% 80 00 01 02 03 04 06 07 08 09 * * 04 05 20 20 20 20 20 20 20 20 20 2
Slide 4: Price increases crucial for the entire Nordic market
Price increases crucial for the entire Nordic market Example from the Norwegian market where market increases prices with about the same level and pace as our Norwegian business Average premiums - private cars Average premiums - private houses Index Index 2003=100 2001=100 140 170 120 140 100 110 80
Slide 5: Opportunities in our new markets
Opportunities in our new markets The market place 100% 21% 22% 20% 29% 75% 16% 22% 22% 13% 16% 50% 19% 18% 23% 25% 48% 38% 39% 35% 0% Inhabitants Households Summer houses Cars Sweden Norway Denmark Finland Unemployment rate 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2007 2008 2009 2010E 2011E Denmark Norw
Slide 6: Profitability focus in Sweden and Finland
Profitability focus in Sweden and Finland Result DKKm Gross premiums 150 DKKm 3.500 3.000 100 50 2.500 0 2.000 1.553 -50 1.500 -100 1.000 634 -150 -134 -141 500 358 -165,00 -200 - 2007 2008 2009 E2010 E-2011 E-2012 2007 2008 2009 E2010 E-2011 E-2012 160% CR approaching 95 • Changed focus is expected
Slide 7: Health Care insurances add growth
Health Care insurances add growth Development in number of health care insured in Denmark 1,200,000 17.3% 1,000,000 800,000 12.4% 600,000 9.6% 8.0% 7.5% 400,000 6.2% 200,000 2.1% 0 2001 2002 2003 2004 2005 2006 2007 2008 Number of insured in Danmark TrygVesta's market share 7
Slide 8: Denmark & Norway vs. Sweden & Finland
Expense ratio Denmark & Norway vs. Sweden & Finland Expense ratio Expense ratio 64.5 17.0 16.8 16.7 17.3 16.9 60.4 0.4 1.5 0.8 1.3 50.0 2.6 45.8 16.6 16.4 29.6 16.6 16.2 16.0 15.8 15.4 14.3 15.5 15.4 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Denmark & Norway Finland & Sweden Denmark & Norway
Slide 9: Continued focus on processes creates strong market position
Continued focus on processes creates strong market position From the customers’ point of view From the employees’ point of view ge y -pa M SM S 9
Slide 10: Capital
Capital 10
Slide 11: Quantitative impact of Solvency II
Quantitative impact of Solvency II 4 June 2010 TRYGVESTA PRESENTATION TrygVesta intends to use partial internal model 50% S&P A 40% 2013 QIS 30% ICA Partiel model Operational 16% Solvency I Std. model 2007 2010 2012 Internal model • A partial internal model = the CAT Market health Non-life & Credit
Slide 12: Capital
Capital DKKm 12,000 11,000 10,000 9,000 8,000 7,000 6,000 ) 07 07 07 e p 07 08 08 08 e p 08 09 09 09 e p 09 06 10 ut ut 20 ut t t t (* ou ou ou 20 yo yo yo 20 1Q 2Q Q 1Q 2Q Q 1Q 2Q Q 10 ay ay ay 3 3 3 pa pa pa 1 Q r r r te te te 20 f or 20 f or 20 f or 1 Q af af af be be be 07 08 09 20 20 20 Capital
Slide 13: Post crisis landscape
Post crisis landscape Fewer Underwriting Fewer Underwriting players discipline and players discipline and price increases price increases Increased Increased Earnings capital Earningsstability stability capital requirements and growth requirements and growth opportunities opportunities 13
Slide 14: Questions please
Questions please 14