Tryg A/s · OMXCOP:TRYG
Tryg A/s — Investor Day (June 2022)
24 slides from Tryg A/s's investor day presentation, Jun 21, 2022
Slide 1: Tryg analyst day
Tryg analyst day Mats Dahlquist, Managing Director Sweden Niklas Iden, Personal Lines Director Nicklas Larsen, Commercial Lines Director Stockholm Ulrik Svensson, Business Finance Officer 21st June 2022
Slide 2: Agenda
Agenda ▪ History and market position ▪ Recent financials and product portfolios ▪ Key distribution channel and partnerships ▪ Moderna integration ▪ Key areas of focus 2
Slide 3: Trygg-Hansa has a long and proud history
2021 - Trygg-Hansa has a long and proud history 2022 Completion of Tryg acquisition of Trygg-Hansa 2007 2014 1828 Codan and Transformation Trygg-Hansa Insurance Company to a country- Städernas Allmänna 1997 becomes subsidiaries to based Brandstod-bolag was 1971 SEB bought RSA organisational launched
Slide 4: Trygg-Hansa continues to build on a long and established history in Sweden
Trygg-Hansa continues to build on a long and established history in Sweden Key offices ▪ Building trust with customers through high quality products, while maintaining profitability through excellence in underwriting, portfolio and risk management Umeå ▪ Strong and visible focus on sustainability an
Slide 5: The market position in Sweden increased after demerger with Tryg
The market position in Sweden increased after demerger with Tryg Key observations Market share, Sweden (Q4 2021) and highlights ▪ Trygg-Hansa is now the third largest player in the Swedish market following the merger with Moderna ▪ Gain in market share has been driven predominantly by 31% - Strong o
Slide 6: Trygg-Hansa is a company with stable and high profitability
Trygg-Hansa is a company with stable and high profitability 6
Slide 7: Recent results build on a stable combined ratio and c. 3% historic growth in premiums
Recent results build on a stable combined ratio and c. 3% historic growth in premiums Trygg-Hansa is a large player in the Highly attractive and stable Stable premium growth over past 6 Swedish market combined ratios years at a CAGR of 3% Market shares Sweden, 2021, % Combined ratio, 2016 - 2021 % N
Slide 8: A large portion of growth is underpinned by maintaining a diversified portfolio
A large portion of growth is underpinned by maintaining a diversified portfolio supported by robust underwriting and risk management Underwriting result, 2021 All portfolios contributing with a positive technical result, with no dependency on a single portfolio, resulting in a stable level of profit
Slide 9: A significant portion of strength has been built on personal accident insurance products
A significant portion of strength has been built on a comprehensive set of personal accident insurance products… Trygg-Hansa Market SEK c. (New) 60bn* c. SEK 11bn* Motor House & Content PA Pet & Other Income 9 * Market Size & Composition Q4 2021 Svensk Försäkring, Trygg-Hansa and Moderna 2021 FY GEP
Slide 10: …driving high levels of retention and profitability
…driving high levels of retention and profitability Large PA share in Trygg-Hansa premiums High retention rate drives PA performance Trygg-Hansa has strong competitive edge PA1 share of total premiums, 2020 - 2021 Avg. retention, years PA market size, 2017-2021, SEKbn +4% ~30% ~9,8 ~10 ~10,4 ~8,9 ~9
Slide 11: PA policies are often underpinned by a specified liability cap
PA policies are often underpinned by a specified liability cap Medical impairment Monthly payment Cover, sickness % of insured Fixed Economic disability amount Daily costs, scar, crisis, amounts and accident Certain Diagnosis rehabilitation Max insurance amount Medical impairment Compensation Child
Slide 12: Trygg-Hansa has recently gained market share after a preceding period of measured growth
Trygg-Hansa has recently gained market share after a preceding period of measured growth 12
Slide 13: The online channel continues to make a contribution to new business
The online channel continues to make a contribution to new business across both Personal and Commercial Lines Key observations New business, per channel (last 12 months) and highlights ~3% ▪ Recent success in direct and online Tied agents c. channel underpinned by continued Partners ~20% strength in
Slide 14: Partnerships continue to contribute to growth across Personal and Commercial Lines
Partnerships continue to contribute to growth across Personal and Commercial Lines in line with broader market trend Key Partners - selection (Personal Lines and Commercial Lines) 2021 and YTD 2022 (1) ▪ Partners are becoming an increasingly critical distribution channel for motor insurance, with a
Slide 15: Continued focus on SME customers has contributed to growth in Commercial Lines
Continued focus on SME customers has contributed to success and continued growth in Commercial Lines New business per customer segment (Commercial Lines) YTD 2019 - 2022 ▪ Small medium sized businesses continue to account for more than half Other 40% of new business in Commercial Lines, forecast to
Slide 16: Trygg-Hansa is in an even stronger position after merger with Moderna
Trygg-Hansa is in an even stronger position after merger with Moderna 16
Slide 17: Focus will continue to be placed on developing along key themes from now through to 2024
Focus will continue to be placed on developing along 7 key themes from now through to 2024 Customer satisfaction Innovation Partnerships Digital Increased customer, broker Leading digital services and intermediary Continued focus on profitable and mutually beneficial satisfaction partnerships Sustai
Slide 18: We will make a number of improvements to the customer experience
We will make a number of improvements to the customer experience through a range of initiatives across all parts of our business… Investment Skill Data and Digital New product Claims Ways of in new develo- customer marketing, and customer working customer pment analytics channel and proposition jour
Slide 19: … and continue developing our digital and online capabilities
… and continue developing our digital and online capabilities across Personal and Commercial Lines % online new business, 2018 - 2021 Investment in online capacity for sales and service along with continued focus on SME customer journey has 60% contributed to growth to c. 200k Commercial Lines custo
Slide 20: Several new portfolios and brands will be added to help enhance cross sales
Several new portfolios and brands will be added to help enhance the level of cross sales across a larger customer base Portfolio split – Personal Lines and Commercial Lines, FY 2021 (1) Care ~8% House, Content & Yacht ~27% Liability ~12% Motor ~39% Motor ~33% Personal accident ~40% Property lines ~4
Slide 21: Technical excellence will continue to play a significant role in underwriting
Technical excellence will continue to play a significant role in underpinning our future market position More targeted Operational Rhythm risk based pricing and underwriting – Portfolio Manager being brought to bear on a larger book of Cross functional business and collaboration brands 21
Slide 22: The realisation of scale and cost synergies is on track
The realisation of scale and cost synergies is on track Estimated pre-tax synergies (Sweden), DKKm ▪ Total realised synergies for Personal Lines ~500 mainly driven by repricing Moderna Commercial 20% portfolio, new operating model for PL Procurement 15% organization and increased cross sales of Atla
Slide 23: Sustainability objectives for Sweden are in line with Tryg's overall ambition for 2024
Sustainability objectives for Sweden are in line with Tryg’s overall ambition for 2024 Sustainable Responsible Green insurance company workplace Offer our customers new Responsible procurement: Continuously strive to products and services that over 90 % of our contacted improve environmental promote
Slide 24: Any questions?
Any questions? 24