Tryg A/s · OMXCOP:TRYG
Tryg A/s — Q2 2011 Earnings Presentation
16 slides from Tryg A/s's earnings presentation, August 2011
Slide 1: Webcast presentation Q2 2011 results
Webcast presentation Q2 2011 results
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: Headlines Q2 2011
Headlines Q2 2011 • After tax result improved from DKK 128m to DKK 362m driven by price initiatives • Combined ratio of 91.5 vs 92.5 in Q2 2010 • 3.5% premium growth driven by Private Nordic with 6.2% growth • Claims ratio net of 74.5 compared with 75.2 in Q2 2010 • Cost ratio of 17.0 vs 17.3 in Q2
Slide 4: Segment performance in Q2 2011
Segment performance in Q2 2011 Private Nordic - CR Commercial Nordic - CR Corporate Nordic - CR Large claims 100 110 100 83.9 84.6 87.4 90 90 100 3.3 9.3 80 11.4 105.2 70 80 92.1 91.2 91.4 90 99.8 81.2 96.5 78.1 60 69.4 70 80 50 Q2 2009 Q2 2010 Q2 2011 Q2 2009 Q2 2010 Q2 2011 Q2 2009 Q2 2010 Q2 2011
Slide 5: Underlying claims ratio - Group
Underlying claims ratio - Group 85 80 74.6 75 72.9 70 65 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Claims ratio adjusted for items that fluctuate and distorts quarterly comparison • weather claims, incl. extraordinary winter in Q1 and Q4 as reported in annua
Slide 6: Development in average premiums
Development in average premiums Average price has declined for a Motor insurance – average premium (index 2005 = 100) number of years. 120 Increase past 12 months: 110 100 2.4% 90 3.9% 80 2005 2006 2007 2008 2009 2010 2011 Pricing in house lagging claims House insurance – average premium (index 2005
Slide 7: Customer retention Private and Commercial
Customer retention Private and Commercial Private Private - retention rate • Retention rate in Denmark gradually improving 92% 90% • Retention rate stable in Norway 88% • Retention primarily decreasing among 86% customers with only one product 84% 82% Commercial Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 0
Slide 8: Large and weather claims development
Large and weather claims development Large claims, gross DKKm Weather claims, gross DKKm 1,000 500 466 597 537 491 813 373 350 202 332 112 121 290 5 100 800 400 600 300 400 200 Q2 Q2 100 200 Q2 Q1 Q1 Q1 0 0 2006 2007 2008 2009 2010* H1 H1 2006 2007 2008 2009 2010 H1 H1 2010* 2011 2010 2011 Expected
Slide 9: Status on Copenhagen cloudburst in July
Status on Copenhagen cloudburst in July • 18,500 claims reported mid August • Reinsurance will limit net claims to DKK 100m + reinstatement of around DKK 90m • New reinsurance feature established from 1 July to protect from multiple events (> DKK 400m) • Claims prevention is key focus • Claims asses
Slide 10: Expenses
Expenses Highlights Expense ratio 60.4 64.5 • Expense ratio improved from 17.3 in Q2 50.0 45.8 2010 to 17 in Q2 2011. 30.1 24.1 26.1 21.6 • Expenses in Q2 impacted by redundancy 16.6 16.4 16.0 16.2 payments. 15.5 15.6 16.0 15.9 • Number of employees grew in Sweden and 2005 2006 2007 2008 2009 2010 Y
Slide 11: Investment result Q2
Investment result Q2 Assets Assets Return Q1 Return Q2 2011 2011 Gross investment return (DKKm) Bonds 424 Equities -29 32.4bn 32.2 mia. DKK Real estate 61 Total 456 Match 9.4 mia. 9.2bn Mismatch 0.08% DKK Free investment Result DKK 116m Return 1.0% (≈ 4% p.a.) 11
Slide 12: Assets allocation
Assets allocation Total assets Match portfolio 2 6 5 5 4 9 Equities Real estate 28 C ov. Bonds 23 C ov. Bonds Percentage Govt. Percentage Govt. Deposits Deposits 67 57 High yield Other Free portfolio (exposure) • Equity exposure reduced in Q2 2011 by 6 26% in Q1 2011 DKK 200m 7 19 • No exposure to s
Slide 13: Provisions and run-off
Provisions and run-off Run-off net, DKKm Insurance provision, DKKm 1,200 6,819 8,820 283 561 792 800 683 824 327 315 6,208 5,183 5,173 5,403 800 5,100 22,470 24,883 25,007 400 21,261 20,410 21,104 19,715 Q2 Q2 Q1 Q1 0 2005 2006 2007 2008 2009 2010 1H 1H 2005 2006 2007 2008 2009 2010 Q2 2011 2010 201
Slide 14: Capitalisation
Capitalisation D KKm 12,000 11,000 13% 10,000 9,000 8,000 7,000 6,000 08 08 08 09 09 09 10 10 10 11 11 t t t u u u yo yo yo 20 20 20 20 20 1 2 3 1 2 3 Q Q Q Q Q Q pa pa pa 1 2 3 1 2 Q Q Q Q Q re re re fo fo fo be be be 08 09 10 20 20 20 C apital requirement Buffer (5%) Surplus capital 14
Slide 15: Outlook
Outlook Mid-term ROE after tax 40% • Mid-term target is return on equity of more than 20% after tax. 30% Mid-term target 20% • This implies a combined ratio level of 90% 10% including potential run-off and at current interest rate level. 0% 03 04 05 06 07 08 09 10 12 13 14 1 1 20 20 20 20 20 20 20 2
Slide 16: Upcoming roadshows
Upcoming roadshows Date Place Participants from Tryg Arranged by 18 august 2011 Copenhagen Morten Hübbe, CEO Handelsbanken Lars Bonde, Group EVP Investor Relations 18 August 2011 Bergen, Norway Kjerstin Fyllingen, Group EVP DnbNOR Lars Møller, IR Manager 23 August 2011 Edinburgh Lars Møller, IR Mana