Tryg A/s · OMXCOP:TRYG
Tryg A/s — Tryg A/S Ord New — Q2 2023 Earnings Presentation
55 slides from Tryg A/s's earnings presentation, Jul 11, 2023
Slide 1: Q2 2023 results
Slide 2: Disclaimer
Comparison figures for the insurance business are presented pro- forma throughout the presentation. Tryg has published pro-forma figures on tryg.com Disclaimer Certain statementsin this presentation ar based onthe belles of our management as wellas assumptions made byand information curently avalabl
Slide 3: Financial highlights Q2 2023
@ | HicHuicHTs Q2 2023 Financial highlights Q2 2023 Insurance service result [Ei sR adjusted for single large claim [i ISRas reported 2,021 1,984 2.2022 22023 + Insurance service result impacted by a sinele large claim in the Corporate segment by approx. DKK 225m while currencies development also ha
Slide 4: Customer highlights Q2 2023
@ | HicHuicHTs Q2 2023 Customer highlights Q2 2023 satisfaction KPI CMD Target 2024 Driving high customer satisfaction by focusing on improving key customer journeys a 1) Improved processes for onboarding Private customers in Denmark (ow) + Shorter response times for customer inquiries a8 8686 + Mor
Slide 5: Lower insurance service result driven by one large claim and adverse currencies
@ | HicHuicHTs Q2 2023 Lower insurance service result driven by one large claim and significantly adverse currencies movements Tryg | Ke) Private Insurance service result DKKm 1,255, ft [ 1,104 Run-off Q2 2023: DKK 25m or 0.4% (Q2 2022 : DKK101m or 1.6%) Comm DKKm Run-off Q2 2023: DKK 84m or 3.7% (Q
Slide 6: Status on RSA synergies per Q2 2023
@ | HicHuicHTs Q2 2023 Status on RSA synergies per Q2 2023 cc. total to DKK 547m 1g to © In Q2, synergies of DKK 25m stems from administration & distribution, DKK 23m from procurement, DKK 13m from Claims and finally DKK 16m from Commercial totaling DKK 77m in the quarter e Adminand distribution: Ma
Slide 7: 10-07-2023
7 10-07-2023
Slide 8: Insurance revenue up 3.9% in local currencies
@ | REVENUE AND PORTFOLIO Insurance revenue up 3.9% in local currencies, but declining in DKK compared to Q2 2022 Insurance revenue growth by segment Q2 2023 (local currencies) 49 44 “2.4 Private Commercial Corporate Group Revenue growth Revenue growth of 3.9% in local currencies. Growth excluding c
Slide 9: House and motor insurance - average prices moving upwards
@ | REVENUE AND PORTFOLIO House and motor insurance - average prices moving upwards House insurance, average earned premium, index development wo ——— * 105 ——— 95 Q1 18Q2 18.93 18 Q4 18Q1 19.Q2 19. Q3 19Q4 19 Q1 20.Q2 2003 20 04 20Q1 2192 21.93 21 Q4 21Q1 22 Q2 22.03 22Q4 22 Q1 2392 23 ‘Average pric
Slide 10: Customer retention is broadly stable
@ | REVENUE AND PORTFOLIO Customer retention is broadly stable Tryg | © Private retention 94 mn 90 90 89 ag 87 a7 90 DK 88 NO SE 86 84 Qi20 Q220 Q320 Q420 qi2i Q221 Q321 Q421 Qi22 Q222 Q322 Q422 Qi23 Q223 DK NO SE [Bl a1 2023 Ml a2 2023 Commercial retention 94 92 88 88 gg 89 89 89 90 NO. SE -_E—————
Slide 11: Claims and expenses
Slide 12: Underlying claims ratio improving for the Group
© | claims anp EXPENSES Underlying claims ratio! improving 60 basis points for the Group Group underlying claims ratio -0.6bps 73.5 J LT : [ Qi22 Q222 Q322 Q422 Qi23 Q223 Private underlying claims ratio +0.3bps J LT [ i : Qn22 Q222 0322 422 123 0223 (0) Group underlying claims ratio at 67.1, 60bps b
Slide 13: Claims inflation, pricing and currency movements
© | claims anp EXPENSES Claims inflation, pricing and currency movements Tryg | © Claims inflation and pricing Windshield and spare parts impacted by adverse movements in exchange rates * Claims inflation differs from CPI, as insurance spend is less impacted by some volatile items present in the CPI
Slide 14: Large claims, weather claims and run-off
© | claims anp EXPENSES Large claims, weather claims and run-off Large claims, net DKKm 1.200 ec) a 41.000 = 800 410 600 287 400 200 H 2019 2020 2021 2022 CC 2022 2023 ©2022-2023 Post RSA integration Claims reserves discounting rate’ (%) 25 ml 2.8 2.0 2.0 15 1.0 an 0.4 05 0.2 0.0 2019 2020 2021 2022
Slide 15: 6,736 6,836 6,518 4,674 4,400 4,076 3,913 4,027 4,151 3,703 3,599 3,359 3,264 3,373
6,736 6,836 6,518 4,674 4,400 4,076 3,913 4,027 4,151 3,703 3,599 3,359 3,264 3,373 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1 Q2 2023 2023
Slide 16: Investment, capital and targets
Investment, capital and targets
Slide 17: Investments - split in match & free portfolio
@ | INVESTMENT, CAPITAL AND TARGETS Investments - split in match & free portfolio Match portfolio split, DKK 44bn Free portfolio split, DKK 17bn 11 1,2 1,3 i Hy = |_| Denmark Sweden Noway = Sf 2 “= Ee os TEE 7 Government and Covered Bonds LB investment grade credit [1 Emerging market bonds i Hieh-yi
Slide 18: Tryg investment return - low risk remains key
@ | INVESTMENT, CAPITAL AND TARGETS Tryg investment return — low risk remains key Tryg | © Key figures investments (DKKm) Q2.2023 Q2.2022 Equity investments, DKK 3.6bn, split by sectors (%) 28 Free portfolio 100 “944 Match portfolio 155 144 Income from RSA Scandinavia 0 213 Other financial income an
Slide 19: Solvency position Q2 2023
@ | INVESTMENT, CAPITAL AND TARGETS Solvency position Q2 2023 Tryg | © * Solvency ratio based on the Partial Internal Model is 199 (Q1 2023: 200). 15.690, + Own Funds (OF) are primarily impacted by 3073 + Operating earnings and dividends + The “Other” item primarily captures the lower value of Tier
Slide 20: Solvency ratio historical development
Solvency ratio historical developme: 168 Qi 2019 20 | Both 9M dividends (announced in November) and Q4 dividend (announced with FY results) are deducted from the FY Own funds —_—~_899 Approvalof new partial internal ‘Adjusted fort model, very strong Q2 result ‘rights issue, be Own funds and SCR and
Slide 21: Solvency ratio sensitivities
@ | INVESTMENT, CAPITAL AND TARGETS Solvency ratio sensitivities Tryg | Solvency ratio sensitivities: 20% -30% -20% | +100bps -100bps - ~100 bps Ez ~100 bps - "| +20% 20% 20% 2023, Equity Equity Property Interest (coe (conoeste (cornesen) NOK/DKK SEK/DKK Solvency ratio sensitivities: Interest rate r
Slide 22: Insurance service result target updated for IFRS 17
@ | INVESTMENT, CAPITAL AND TARGETS Insurance service result target updated for IFRS 17 Tryg Insurance service result target for 2024 in July 2023 Volatile macroeconomic factors ~200 ~7,200-7,600 ~7,000-7,400 i CMD target Education and CMD target Higher interest rates Currencies impact Reinsurance p
Slide 23: Important things to remember in 2023
@ | INVESTMENT, CAPITAL AND TARGETS Important things to remember in 2023 23 a In 2023 all quarters will show fully consolidated figures including Codan Norway and Trygg-Hansa. = Other income and costs from Q3 2023 will include an approximate DKK250m quarterly intangibles amortization (Codan Norway a
Slide 24: 2024 strategy and targets will ensure highly attractive shareholders' returns
2024 strategy and targets will ensure highly attractive shareholders’ returns Insurance service result Combined ratio Expense ratio Return on Own Funds RSA Scandinavia Synergies target Ordinary dividends and extraordinary buybacks DKK 7.2-7.6bn <82% ~13.5% 225% DKK 900m DKK ~17-19bn in 2022-2024
Slide 25: It is important to know your investment case
It is important to know your investment case
Slide 26: Q2 2023 roadshows & conferences
@ | ROADSHOWS & CONFERENCES Q2 2023 roadshows & conferences Participants from Tryg [Arranged by Johan Kirstein Brammer, CCO Barbara Plucnar Jensen, CFO Mikael Karrsten, CTO Investor Relations 11/07/2023 Copenhagen roadshow Danske Bank 24/08/2023 Stockholm Large Cap Seminar Peter Brondt, IR Manager S
Slide 27: Investor Relations contacts
Gianandrea Roberti Peter Brondt Khoi Nguyen Ize Karahona Tobias Andersen Vice President, Manager, Investor Relations Senior Analyst, Investor Relations Coordinator (maternity cover), Investor Analyst, Investor Relations Head of Investor Relations & External +45 22 75 89 04 +45 6177 2985 Relations +4
Slide 28: Background material
Background material
Slide 29: Tryg at a glance
@ | BackGROUND MATERIAL Tryg at a glance Tryg | © Insurance revenue split by products Q2 2023 About Tryg eT oes back to 18th century. vag . Di motor i Workers come [il Heat accident Dtiaiy Dl Fire propery-prvate Bl Fires propery-comm TD other * Very strong brand position especially in Denmark. © Non
Slide 30: Gross premium split by geography
@ | BackGROUND MATERIAL Gross premium split by geography DK: Gross premium by products 2022 Di Motor (i Workers comp [Bi Health and accident BB Liability Ii Fire & property- private BI Fire and property comm Di other NO: Gross premium by products 2022 CH Motor [E) workers comp [Bi Health and acciden
Slide 31: Reserves and run-off split by line of business
@ | BackGROUND MATERIAL Reserves and run-off split by line of business Reserves by products 2022 31 TC motor [Workers comp Bi realth and accident BB Liability [i Fire & property - private I Fire and property comm C1 other Run-off net by products Q2 2023, DKKm 193 140 58 -22 -16 -100 39 LE Motor (J W
Slide 32: The run-off cycle
6) | BACKGROUND MATERIAL The run-off cycle Run-off cycle: e Initial assessment of the claims was DKK 18,000 but Tryg reserved for DKK 20,000 adding some conservatism to best estimate. e Atthe time of setting up the claims reserves and booking the claims in the P&L the loss ratio (hence the combined
Slide 33: Combined ratio development (IFRS 4)
Combined ratio development (IFRS 4) 87.7 : | | : . . : : | 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 10Y avg. 5Y ave. 85.1 84.3 33
Slide 34: Shareholder remuneration
@ _ | BACKGROUND MATERIAL Shareholder remuneration ce 2012 (DKK) Tryg|¢ on 9.74 971 9.20 : [BB Ordinary dividend 8.60 8.45 TE Extraordinary buy back [Extraordinary dividend 7.80 6.29 5.000 Remainine~ [On ” 6.80 7.00 , 6.40 6.00 6.20 5.20 5.40 #80 J 1.85 ! 1.85 2012 2013 2014 2015 2016 2017 2018 2019
Slide 35: Market share of the Scandinavian insurance market
@ | BackGROUND MATERIAL Market share of the Scandinavian insurance market Tryg Scandinavia market share EUR 26,0 bn (as at Q2 2022) Denmark market share DKK 66,4 bn/EUR 8,9bn (as at Q2-2022) CI tre Litre Or [1 Topdanmark i Topdanmark Gt [BB Lansforsikringar TB Gjensidige TB Gjensidige i aim. Brand T
Slide 36: Distribution of new sales 2022
6) | BACKGROUND MATERIAL Distribution of new sales 2022 Distri Scandinavian market Distribution in the Scandinavian markets differs from many other insurance markets. * Direct distribution is the main channel for Private and Commercial 15% . . 9% S * There are no brokers in the private market and li
Slide 37: Things that you may not know
@ | BackGROUND MATERIAL Things that you may not know Information: Scandinavian economies have been performing better than most European countries for a longtime. The GDP growth y/y was approx. 2%, and unemployment rates remains much lower than European averages (2- 3% in DK and NO). Government indeb
Slide 38: Things that you may not remember
@ | BackcRounn marERIAL Things that you may not remember Information 38 Our maximum annual net exposure to a single large Property claim is DKK 150m which falls to DKK 100m in case of a second event and all afterwards events at DKK 50m. This is based on our general reinsurance programme. Our maximum
Slide 39: IBM study from 2007, probably little has changed
@ | BackcRounn marERIAL IBM study from 2007, probably little has changed Danish customers either completely or strongly agree Overall | am very satisfied with the services of my SS (3 7 UK 133 insurance company DE 150 DK 72 | (3 My insurance agent only sold me insurance Cs PT coverage that | really
Slide 40: 6.000.000 5.900.000 5.800.000 5.700.000 5.600.000 5.500.000 5.400.000 5.300.000 5.200.000 5.100.000 5.000.000 5.600.0…
6.000.000 5.900.000 5.800.000 5.700.000 5.600.000 5.500.000 5.400.000 5.300.000 5.200.000 5.100.000 5.000.000 5.600.000 5.400.000 5.200.000 5.000.000 4.800.000 4.600.000 4.400.000 4.200.000 4.000.000
Slide 41: Denmark's 'biggest' family
Denmark's ‘biggest’ family Tryghedseruppen Bonus Bonus has a positive effect on retention us ‘lexpect to be in Tryg next year’ ot heard about member Bonus 79 2019 (es2)) ED Dividends grippen ‘protien = Premiums Re 67% ofmember bonus to 23% of member bonus to 10% of member bonus to Private customers
Slide 42: Executive management
CEO Johan Kirstein Brammer Hübbe • o • o COO CFO CTO CCO Lars Bonde Barbara Plucnar Mikael Kärrsten Alexandra Bastkær • Jensen Winther o o Private SE & Affinity Private NO Private DK Commercial SE Commercial NO Commercial DK Corporate SE Corporate NO Corporate DK & Tryg o Garanti Claims SE Claims NO
Slide 43: Sustainability & ESG governance
6) | BACKGROUND MATERIAL Sustainability & ESG governance Sustainability & ESG Board ‘Supervisory Board Executive Board Chair a ss, Barbara Plucnar Jensen, CFO Private, , Corporate Responsibility tea Commercial Corporate } I 7 7 I = I [ l Communications || Procurement HR 24 Facies Investments Investo
Slide 44: Sustainability & ESG strategy 2024
6 | BACKGROUND MATERIAL Sustainability & ESG strategy 2024 Driving sustainable impact Tryg wants to contribute to a sustainable future and create long-term value for our customers, employees, shareholders and society. We want to to integrate sustainability into every corner of our business. Sustaina
Slide 45: Environmental, Social and Governance (ESG) data
| BACKGROUND MATERIAL Environmental, Social and Governance (ESG) data Total direct and indirect carbon emissions (location-based) TonnesCO2e 4,538 2,082 2,501 6,436 5,386 Total direct and indirect carbon emissions (market-based) Tonnes CO2e 3,924 1,506 4,287 9,376 7,583 Car travel TonnesCO2e 898 724
Slide 46: Responsible investment
@ _ | BACKGROUND MATERIAL Responsible investment Tryg | (e) 2024 KPI 2030 milestone 2022 results Allexternal asset managers are UN PRI signatories ESG is an integrated part of the (esac AR aS iss investment process across all asset External managers External managers responsibility integration must
Slide 47: Q2 2023 actual and outlook 2023-2025
DKKm Q2 2023 actual 2023 2024 2025 Gross premiums earned 9.200 37.570 38.725 39.997 Technical result 1.759 7.083 7.588 7.893 Investment income 53 491 561 590 Other income and costs -583 -1.681 -1.360 -1.336 Pre-tax 1.229 5.894 6.789 7.148 Net profit 922 4.507 5.180 5.457 Claims ratio 67,6% 67,7% 67,
Slide 48: Appendix
Slide 49: Group (IFRS 17)
| APPENDIX Group (IFRS 17) Insurance revenue (DKKm) Combined ratio (%) 100 40,000 34,814 90 86.8 30,000) pore 23,442 25,369 84.4 843 83.8 20,000 80 10,000 70 ° 2019 2020 2021 2022 60 2019 2020 2021 2022 Claims ratio, net of reinsurance (%) Expense ratio (%) 80 20 18 75 73.8 71.0 70.9 703 13.4 13.3 1
Slide 50: Private (IFRS 17)
@ | pprennix Private (IFRS 17) Tryg|© Insurance revenue (DKKm) Combined ratio (%) 25,000 22,776 100 20,000 “KA 15,096 16 35a oD 83.8 83.9 84.1 829 15,000 5 80 10,000 70 5,000 3 60 2019 2020 2021 2022 50 2019 2020 2021 2022 Claims ratio, net of reinsurance (%) Expense ratio (%) 90 20 80 18 70.8 71.2
Slide 51: Commercial (IFRS 17)
| APPENDIX Commercial (IFRS 17) Tryg|¢ 10,000 8,407 ao) 8,000 a 88.4 825 82.9 82.7 6,000) 4,195 4,978 5,350 80 4,000 70 2,000 0 60 2019 2020 2021 2022 50 2019 2020 2021 2022 100 20 +0 19 657 66.3 tas 67.0 18 ; 60 7 16.8 16.6 te 16 15.9 40 20 14 2019 2020 2021 2022 2019 2020 2021 2022 51 _ | *Moretha
Slide 52: Corporate (IFRS 17)
| APPENDIX . Corporate’ (IFRS 17) 6,000 5,000 4,000 3,508 3,366 3,464 3,631 3,000 2,000 1,000 0 2019 2020 2021 2022 100 90 85.9 80 79.9 16.6 79.3 70 60 50 40 2019 2020 2021 2022 52. | *Morethan 100 employeesor morethan 100mturnover o Tryg|o 110 97.4 io 99.4 923 - . 876 80 70 60 50 2019 2020 2021 202
Slide 53: Geographical combined ratio (IFRS 17)
@ | pprennix Geographical combined ratio (IFRS 17) 100 95 91.1 90 88.1 80 86.8 87.2 85 85.0 80.5 80 7913) ° 7.2 70 70 65 60 60 2019 2020 2021 2022 2019 2020 2021 2022 Norway (%) = = 100 92.7 92.3 90 86.8 85.0 80 70 60 2019 2020 2021 2022
Slide 54: Tryg has a long and proud history
@ | pprennix Tryg has a long and proud history, with the 2021 RSA acquisition pushing the boundaries even further 2005 2018 TryeVestais listed Tryg receives the final on the OMX Nordic approval of the Alka 71731 Stock Exchange in acquisition from the Kjobenhavns Brand, 1995 Copenhagen Danish authori
Slide 55: Economic key figures
@ | aprennix Economic key figures Tryg | © Denmark GDP erowth 38 15 1.0 GDP growth 33 1.0 15 Private consumption 24 06 17 aah Pivate consumption 69 “2.0 12 Unemployment 26 29 34 Unemployment Consumer price index 17 44 3.2 Consumer price index Wages Wages 36 41 53 Sweden 3 (forecast) 2024 (forecast)