Slide 1: Q2 and H1 2013 results
Q2 and H1 2013 results Webcast 10 July 2013 Follow us on Twitter: @TrygIR 1 10 juli 2013
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: Efficiency programme improved operations and ensured yet another good result
Efficiency programme improved operations and ensured yet another good result despite weather claims and the highest level of large claims in four years Pre-tax profit D KKm 1,403 1,447 • Pre-tax profit of DKK 688m (DKK 701m). 1,200 Technical result of DKK 684m (DKK 831m). 701 688 600 • Combined rati
Slide 4: Important news in Q2 2013
Important news in Q2 2013 • Internal efficiency programme on track • Tryg Plus - new customer concept • Tryg Back-up • Tryg ID • Tryg – Safe in life • Tryg – Home alarm • Four new price differentiation products launched • New chairman • Number of core IT systems reduced • S&P reaffirms Tryg’s ‘A’-ra
Slide 5: Combined ratio development in business areas
Combined ratio development in business areas - Commercial and Corporate impacted by high level of large claims Combined ratio – Private (DK & NO) Combined ratio – Commercial (DK & NO) 100 100 95 95 89.9 89.9 89.5 90 87.4 90 85.7 86.6 84.9 85 85 82.3 80 80 Q2 2012 Q2 2013 1H 2012 1H 2013 Q2 2012 Q2 2
Slide 6: Follow up on efficiency programme – Q2 2013
Follow up on efficiency programme – Q2 2013 Targeted and achieved savings on claims • Savings of DKK 335m achieved so far DKKm 100 120 • DK: ~70% usage of preferred car repair shops 700 120 Q2: 75m 250 Q1: 45m • E-auction in good progress • Customers benefit from increased use of 250 Scalepoint 100
Slide 7: Expense ratio development
Expense ratio development • Expense ratio improved from 16.5 in Expense ratio Q2 2012 to 15.6 in Q2 2013. • Nominal costs on group level 16.7 reduced Q/Q to DKK 764m (DKK 821m). 16.6 16.6 16.4 • Increased span of control 15.8 • Number of manager reduced by 10% • Reduced number of offices • Outsourci
Slide 8: Premiums and portfolio
Premiums and portfolio
Slide 9: Topline and technical result
Topline and technical result Gross earned premiums, DKKm Technical result, DKKm 900 831 6,000 5,057 4,962 800 28 5,000 684 417 420 700 284 28 4,000 1,312 600 1,287 198 500 3,000 930 168 94 899 400 2,000 300 200 351 364 1,000 2,405 2,363 100 0 0 Q2 2012 Q2 2013 Q2 2012 Q2 2013 Private C ommercial C o
Slide 10: Customer retention
Customer retention Private 92% 90% 88% 86% 84% 82% Q108 Q109 Q110 Q111 Q112 Q113 Commercial 92% 90% 88% 86% 84% 82% Q108 Q109 Q110 Q111 Q112 Q113 10
Slide 11: Private – average premiums
Private – average premiums House insurance – average premium (index 2008 = 100) Average premiums increase Y/Y 140 3.0% 3.2% 130 120 110 100 90 2008 2009 2010 2011 2012 2013 Motor insurance – average premium (index 2008 = 100) Average premiums increase Y/Y 140 0.9% 3.6% 130 120 110 100 90 2008 2009 2
Slide 12: Private Sweden – CR and customer retention
Private Sweden – CR and customer retention Private - retention rate 74% 72% 70% 68% 66% 64% 08 08 09 09 10 10 11 11 12 12 13 1- 3- 1- 3- 1- 3- 1- 3- 1- 3- 1- Q Q Q Q Q Q Q Q Q Q Q 130 125 125 120 114 115 110 110 105 103 103 102 99 99 100 97 95 95 94 95 91 90 88 85 80 Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4-
Slide 13: Claims
Berd ie Heer ere | "abeeaee,
Slide 14: CR and claims ratios Q2 2012-13
CR and claims ratios Q2 2012-13 Underlying claims, net Q2 2012 / Q2 2013 • Underlying development is adjusted for: • Large claims • Weather-related claims 78.2 75.5 76.7 74.6 74.1 75.1 72.2 72.1 • Run-off and interest 71.0 67.0 • Improvement in underlying claims ratio on group level driven by own in
Slide 15: Large claims, weather claims and run-off
Large claims, weather claims and run-off - highest level of large claims in four years Large claims, net DKKm Weather claims, net DKKm 300 250 250 200 200 150 150 273 100 187 204 100 207 50 50 57 73 65 32 0 0 Q2 2012 Q2 2013 1H 2012 1H 2013 Q2 2012 Q2 2013 1H 2012 1H 2013 Large claims – gross DKKm R
Slide 16: Weather claims – an increased risk
Weather claims – an increased risk Tryg - weather claims gross, DKKm 2,500 2,000 1,500 1,000 500 0 95 96 97 98 20 9 00 01 02 03 04 05 06 07 20 8 09 10 11 12 13 9 0 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 16
Slide 17: Investment, capital, consensus and peers
Investment, capital, consensus and peers 17 10 juli 2013
Slide 18: Investment result Q2 2013
Investment result Q2 2013 Assets Assets Return in Q2 2013 Gross investment return Return DKKm Bonds (-0.2%) -82 Match Equities (2.6%) 72 Real estate (1.2%) 24 DKK 32.2bn Total (0.0%) 14 Match Mismatch Q1 DKK -19m Free Free investment Result DKK 93m DKK Return 0.8% 12.0bn 18
Slide 19: Capital structure and status on share buyback
Capital structure and status on share buyback 14000 12000 • Capital buffer based on Individual Solvency 3,868 10000 increased to 67% (2013 Q1: 56%) and was 4,335 impacted by: 8000 2013 Q2 result Buffer 6000 8,140 Capital requirement Minor reduction in capital 4000 6,486 requirement 2000 • Capita
Slide 20: Combined ratio target
20 CR ta r % 0% 10% 20% 30% 40% 20 Ex ge 03 p en t Q 80 82 84 86 88 90 92 20 se 3 /c 20 04 la 13 Cl im 20 ai s 05 m in s < 90 it i 20 in at fla iv 06 t io es 20 W n ea ab 07 th ov er e 20 Le an CP 08 gi d I sl la 20 at rg io e 09 n cl et ai 20 c m 10 (W s C, 20 ROE after tax 11 ta xe s. 20 .) 1H 12
Slide 21: Q/A
Q/A Follow us on Twitter: @TrygIR 21 10 juli 2013
Slide 22: Upcoming roadshows and conferences
Upcoming roadshows and conferences Date Place Participants from Tryg Arranged by Morten Hübbe, CEO 10/07/2013 London Tor Magne Lønnum, CFO Danske Markets Investor Relations Morten Hübbe, CEO Tor Magne Lønnum, CFO 11/07/2013 Copenhagen Nordea Lars Bonde, COO Investor Relations 15/07- 12/8/2013 SUMMER