Tryg A/s · OMXCOP:TRYG
Tryg A/s — SEB Enskilda Nordic Seminar 2012
15 slides from Tryg A/s's conference presentation, Jan 11, 2012
Slide 1: SEB Enskilda Nordic Seminar
SEB Enskilda Nordic Seminar CFO Tor Magne Lønnum 11 January 2012
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 • The history of Tryg goes back to the 18th century. • The current Tryg was formed in 2002. • Only non-life insurance Sweden Market position #5 in the Nordic area. Market share 3.9% • Listed Oct. 2005 on Nasdaq OMX Copenhagen. Norway Finland Market position #3 Market share 2.4% •
Slide 4: Structure of the Nordic insurance markets
Structure of the Nordic insurance markets Denmark Norway DKK 47.0bn/ EUR 6.4bn (as at Q3-10) NOK 43.0bn/ EUR 5.6bn (as at Q2-11) Other 27.3 Tryg 16.7 Other 20.4 If 5.2 Gjensdige 5.8 Tryg 20.6 Sparebank1 Percentage Percentage 11.0 Alm. Brand Nordic If 25.1 10.0 EUR 21.6bn (as at Q4-10) Topdanmark Gje
Slide 5: ROE after tax
5 ROE after tax 0% 10% 20% 30% 40% 20 03 20 04 20 05 20 06 Our mid-term target. 20 07 20 08 20 09 Q 20 1- 10 Q3 20 11 20 12 20 13 20 14 Mid-term target
Slide 6: Result development
Result development Quarterly combined ratio 110 105 100 95 90 85 80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 2009 2010 Stable results – however, 2010 hit by harsh winter and underlying development in one-off events. claims inflation. Further price inc
Slide 7: Initiatives – short term
Initiatives – short term • Price increases across all segments Price increases • DKK 1bn in 2011 (5%) • DKK 1bn in 2012 • New organisational set-up with clear profitability focus Profitability focus • Change in incentives for staff and management • Improved processes and organisation Claims initiati
Slide 8: 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 8
Slide 9: Initiatives - longer term effect
Initiatives - longer term effect Process optimisation Improved segmentation Procurement Profitability culture Claims prevention Sourcing Increased price 9 differentiation
Slide 10: But there are challenges along the way…
But there are challenges along the way… Legislation Sovereign debt Recession Uncertain financial markets Retirement age Weather risk 10
Slide 11: Focus on insurance – low investment risk
Focus on insurance – low investment risk Total assets Match portfolio 1 4 9 11 9 Equities 21 Real estate C ov. Bonds C ov. Bonds Govt. Percentage 26 Percentage Govt. Bonds Deposits 63 Deposits 56 High yield Free portfolio (exposure) 5 5 18 Equities Real estate C ov. Bonds 30 Percentage 42 Govt. Bond
Slide 12: Provisions and run-off
Provisions and run-off Run-off net, DKKm Insurance provision, DKKm 1,200 7,884 6,819 283 561 792 800 683 824 538 613 6,208 5,183 5,173 5,403 800 5,100 Q3 24,883 26,462 400 Q3 21,261 20,410 21,104 19,715 22,470 Q2 Q2 Q1 Q1 0 2005 2006 2007 2008 2009 2010 Q1-Q3 Q1-Q3 2005 2006 2007 2008 2009 2010 Q3 2
Slide 13: Capitalisation
Capitalisation D KKm 12,000 11,000 10% 10,000 9,000 8,000 7,000 6,000 08 08 08 09 09 09 10 10 10 11 11 11 t ut ut u yo yo yo 20 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 3 Q 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 13
Slide 14: Where to go from here…..
Where to go from here….. Status 2011 Themes 2012 Improved profitability • Continued profitability focus Claims initiatives Organisation • Loss prevention Retention Customer satisfaction Employee satisfaction • Improve time to market Products Target 40% ROE after tax 30% Mid-term target 20% 10% 0% 03
Slide 15: Questions?
Questions? 15