Tryg A/s · OMXCOP:TRYG
Tryg A/s — Investor Presentation (2019)
24 slides from Tryg A/s's investor presentation, 2019
Slide 1: Tryg Investor Presentation
Tryg Investor Presentation Lars Bonde, COO Follow us on Twitter: @TrygIR
Slide 2: Tryg at a glance (I)
Tryg at a glance (I) A leading Nordic non-life insurance company Premium split - Business area 6 18 Private • Tryg’s history dates back to the 18th century Commercial • Leading non-life insurer in Denmark, 56 Corporate Norway and Sweden, most profitable markets in the world 20 Sweden • Retail (Priva
Slide 3: Tryg at a glance (II)
Tryg at a glance (II) Strong value propositions High insurance penetration in the Nordics Premiums per capita (USD), 2017 A leading Scandinavian non-life insurer with strong I presence in Denmark and Norway (most profitable 18 00 16 00 1557 1519 markets) 14 00 1296 1224 12 00 938 10 00 80 0 683 60 0
Slide 4: Tryg 2018 – 2020: Strengthening the core, while embracing the future
Tryg 2018 – 2020: Strengthening the core, while embracing the future Target picture 2018 - 2020: Continuously aiming for Targets 2020 a healthy balance between earnings and customers Earnings Tryg 2018 - 2020 Technical result DKK 3.3bn Combined ratio ≤ 86 Tryg 2015 - 2017 Expense ratio ~14 Earnings
Slide 5: Strategic target drivers & key performance indicators
Strategic target drivers & key performance indicators Digital Empowerment of Claims Excellence Customers KPI: DKK 600m in claims cost reduction KPI: DKK 100m in 2020 Alka synergies DKK 75m in 2019 DKK 150m in 2020 DKK 300m in 2021 Product & Service Innovation Distribution Efficiency KPI: Portfolio o
Slide 6: Implementing a new claims system is one of many initiatives within claims
Implementing a new claims system is one of many initiatives within claims Dedicated efforts to increase efficiency within claims Highlights from ‘Contents’ Norway… …degree of automation (STP) +45% STP on ‘Contents’, Norway (March, 2019) …use of digital submission 60% Customers submitting digital cla
Slide 7: Customer satisfaction and empowerment increases
Customer satisfaction and empowerment increases TNPS increases…. …digital access is one of the enablers +8% Digital vs. manual contact 70 100 67 90 % 62 80 70 Digital 60 50 40 30 Manual 20 10 0 Jan Feb Mar Apr Maj Jun Jul Aug Sep Okt Nov Dec 60% Digital contactpoints (Q4, 2018) Q4 2017 Q4 2018 Targe
Slide 8: Tryg Drive & Side-Kick improves sales figures
Tryg Drive & Side-Kick improves sales figures 47% increase on sales to young people Drive customers <30 years Index Before Tryg Drive 100 After Tryg drive 147 Customers react positive to the new car insurances Side-Kick reaching two digit MNOK in premium within 11 months MNOK Jun July Aug. Sep. Oct.
Slide 9: Adding services to insurance products increases prevention and customer retention
Adding services to insurance products increases prevention and customer retention 40% Churn decrease on customer with prevention services -40% Index 25% …feels unsafe 100 due to the risc of break-ins* 60 30% Preliminary experiences …of total claims on ‘Contents’ are due to break-ins 15% Improvement
Slide 10: Strengthening the core, while embracing the future
Strengthening the core, while embracing the future Acquiring a high-performing business in our core market Strong accretion of earnings and dividends Continuing on a strong financial foundation Long term profitable growth and attractive shareholder value creation 10
Slide 11: Alka delivers a good result in 2018 and synergies are according to plan
Alka delivers a good result in 2018 and synergies are according to plan Technical result in 2018 is better than expected Synergies are according to plan run-rate Procurement examples Technical result, 2017-2018 Price per average claim, DKK DKKm Property -28% 66,9 +3,3% 300 48,3 Synergies 331 342 Alk
Slide 12: Total financial impact of strategic initiatives
Total financial impact of strategic initiatives DKK 3,300m DKK 2,800m Normalised Lower run-off Investment Claims Digital Empower. Growth and Distribution Technical result Technical result technical result Excellence of Customers Product & Efficiency 2020 post Alka 2017 Service transaction Innovation
Slide 13: Financial highlights Q1 2019
Financial highlights Q1 2019 - Technical result of DKK 626m, investment income of DKK 353m driven primarily by strong equity markets - Q1 dividend of DKK 1.70 per share and solvency ratio of 168 Pre-tax profit (DKKm) • Pre-tax profit of DKK 930m (DKK 553m) driven by: • Technical result of DKK 626m (
Slide 14: Group premiums up 19.2% in Q1, 6.0 excl Alka
Group premiums up 19.2% in Q1, 6.0 excl Alka • Group premiums were up 19.2% in local currencies, or 6.0% excluding Alka • Private lines reported a 7.1% growth ex. Alka, positive trends in both Denmark and Norway (and inclusion of Troll) • Commercial growth was 5.1% ex. Alka, helped by high sales and
Slide 15: Private - average prices
Private - average prices House insurance – average price (index 2011 = 100) Average price development Y/Y 1.1% 3.0% • DK: 1.1% positive development (Q4 1.1%) (Q4 3.0%) reflects price increases Average price: • NO: 3.0% positive development 5,000 6,100 reflects primarily price increases Motor insuran
Slide 16: Customer retention remains broadly stable
Customer retention remains broadly stable Private DK • DK: customer retention at 91.4% (90.5%) highest level in five years • NO: customer retention up to 86.7% (86.3%) showing an improved trend Commercial • DK: customer retention at 88.2% (87.8%) highest level in last two years • NO: customer retent
Slide 17: Underlying claims ratio improving
Underlying claims ratio improving Claims ratio, net (Commercial DK & NO) Group underlying claims ratio at 76.0, 50bps better than Q1 2018 Private underlying claims ratio at 74.3, 50bps better than Q1 2018 Underlying claims ratios in all quarters in 2018 have been adjusted for Alka “Expected FY 2019
Slide 18: Expense ratio of 14.0 in line with 2020 target
Expense ratio of 14.0 in line with 2020 target • Efficiency initiatives in 2017 brought down Expense ratio overall costs • Investments in digitalisation will somewhat offset further efficiency gains • Expense ratio target for 2020 around 14% • Alka synergies of DKK11m helped overall costs level • Nu
Slide 19: Investments – Split in Match & Free portfolio
Investments – Split in Match & Free portfolio Total investments DKK 43bn Splitting up the portfolio Match portfolio ‘risk-wise’ Free portfolio DKK 32bn DKK 11bn Sweden DKK 5 bn Norway DKK 8 bn Denmark DKK 19 bn 19
Slide 20: Investment return – low risk remains key
Investment return – low risk remains key Key figures - Investments Different asset classes Geographical exposure (%) DKKm Q1 2019 Q1 2018 2018 Free portfolio 373 54 -33 Match portfolio 51 30 -2 Other financial income and -71 -75 -297 expenses Total investment return 353 9 -332 Group fixed income por
Slide 21: Solvency position Q1 2019
Solvency position Q1 2019 Own funds walk • Solvency ratio based on the Partial Internal Model is 168 (Q4 2018: 165). 9.600 • Own Funds (OF) is primarily impacted by 9.100 757 -514 8.600 -60 • Result Q1 2019 of DKK 757m 8.100 • Dividends of DKK 514m 7.600 8.241 8.058 7.100 SCR is primarily impacted b
Slide 22: Solvency ratio sensitivities
Solvency ratio sensitivities 190% 182% 180% 174% 170% 169% 170% 170% 168% 169% 166% 165% 167% 169% 167% 169% 166% 166% 161% 160% 153% 150% 140% 130% 0% 0% 0% 0% s s s s % % % % s s s s 1 bp bp bp bp bp bp bp bp Q 20 20 20 20 -2 -2 -2 -2 00 00 00 00 0 0 0 0 + + + + 10 10 10 10 -1 -1 -1 -1 + + + + 201
Slide 23: Shareholders’ remuneration
Shareholders’ remuneration Shareholder remuneration since 2012 Strong focus on shareholders’ remuneration DKK • Q1 DPS 1.70 (1.65) 3.5 • Aim for a nominal stable increasing ordinary dividend (annual) • Quarterly dividend evenly distributed in different quarters • High proftibility and low growth imp
Slide 24: Questions?
Tryg|© Questions? 24