Tryg A/s · OMXCOP:TRYG
Tryg A/s — Q2 2012 Earnings Presentation
14 slides from Tryg A/s's earnings presentation, Aug 14, 2012
Slide 1: Q2 2012 results
Q2 2012 results Webcast presentation 14 August 2012 1
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: Highlights Q2 2012
Highlights Q2 2012 - Pre-tax profit up by 45% and technical result up by 65% • Pre-tax profit of DKK 708m (DKK 487m). D KKm Pre-tax profit Technical result of DKK 835m (DKK 507m). 1,500 1,429 Positive impact from weather and large claims 1,200 and reinsurance. 900 708 848 600 487 300 • CR improvemen
Slide 4: Lowest CR in 5 years
Lowest CR in 5 years - Positive impact from weather and large claims and reinsurance - Negative impact from lower interest rate level Combined ratio – Private (DK & NO) Combined ratio – Commercial (DK & NO) % % 105 105 100 100 95.1 93.6 95 95 91.5 89.9 89.6 90 85.7 90 86.6 85 85 82.3 80 80 75 75 Q2
Slide 5: Moderate premium growth – better balanced technical result
Moderate premium growth – better balanced technical result • Moderate growth of 0.3% in local currency as expected (1.3% in DKK). Positive impact from price increases - negative impacted from a reduction in Commercial portfolio. • Private up 1.6% in local currency (2.9% in DKK). Positive impact from
Slide 6: Retention remains high and average premiums going up
Retention remains high and average premiums going up Private - retention rate Motor insurance – average premium (index 2005 = 100) 120 Average premium growth in past 12 months 92% 0% 6.3% 110 90% 88% 100 86% 90 84% 82% 80 2005 2006 2007 2008 2009 2010 2011 2012 05 06 07 07 08 09 10 10 11 12 3 2 1 4
Slide 7: Combined ratio and claims ratios
Combined ratio and claims ratios Combined ratio development - Group Claims ratio development - Group 92 91.3 5.0 1.4 1.3 90 3.0 1.7 90 85 88 2.4 80 74.3 86 0.6 75 84.7 68.9 84 70 72.7 67.9 65 82 60 80 09 09 09 09 10 10 10 10 11 11 11 11 12 12 1 2 3 4 1 2 3 4 1 2 3 4 1 2 11 12 r s s l Q Q Q Q Q Q Q Q
Slide 8: Large claims, weather claims and run-off
Large claims, weather claims and run-off - run-off impacted by extraordinary reinsurance recovery Large claims, gross DKKm Weather claims, DKKm 1,800 1,000 858 800 1,400 600 1,000 Expected full year level 2012 400 353 Expected full year level 2012 600 226 187 200 152 200 0 2011 H1 11 H1 12 -200 2011
Slide 9: Investment result Q2 2012
Investment result Q2 2012 Assets Return Q2 2012 Assets Gross investment return Return DKKm Bonds (1.3%) 507 DKK Equities (-5.0%) -99 32.2 mia. 35bn DKK Real estate (3.3%) 70 Total (1.1%) 478 Match DKK Mismatch Q2 DKK +41m 9bn Free investment Result DKK 53m Return 0.8% 9
Slide 10: Assets allocation
Assets allocation Total assets – Q2 2012 2 4 11 5 Equities Real estate 7 C ov. Bonds Percentage Govt. Bonds Bank deposits/bonds 71 High yield Free portfolio – Q2 2012 Match portfolio – Q2 2012 32 Equities 12 Real estate 8 C ov. Bonds Bank deposits/bonds 22 Percentage Percentage Govt. 12 Govt. Bonds
Slide 11: Capitalisation
Capitalisation S&P model IS model • Capital buffer based on S&P’s capital model increased to 13% (Q1: 9%) and D KKm 12,000 impacted by: 13% buffer 10,000 • Strong Q2 2012 result 8,000 37% buffer 6,000 • Strengthening of pension obligation in TAC S&P A-level Available IS capital requirement Norway of
Slide 12: Expenses, employees and follow up on cost reduction programme - Q2 2012
Expenses, employees and follow up on cost reduction programme - Q2 2012 Expenses Targeted and achieved savings in expenses DKKm DKKm 880 25 From FTE reductions in Group Finance 870 9 870 1 2 859 300 860 5 125 850 840 125 830 1 2 e d e l ia 1 1 50 at an at 20 20 c iv or nl er Pr 2 p 2 Fi m or Q Q n/
Slide 13: Combined ratio target
13 CR ta r % 0% 10% 20% 30% 40% 20 Ex ge 03 p en t Q 80 82 84 86 88 90 92 20 se 3 /c 20 04 la 13 Cl im 20 ai s 05 m in s < 90 it i 20 in at fla iv 06 t io es 20 W n ea ab 07 th ov er e 20 Le an CP 08 gi d I sl la 20 at rg io e 09 n cl et ai 20 c m 10 (W s C, 20 ROE after tax ta H 11 xe 1 s. Combined
Slide 14: Upcoming roadshows
Upcoming roadshows Date Place Participants from Tryg Arranged by 15 August 2012 Copenhagen Morten Hübbe, CEO Carnegie Tor Magne Lønnum, CFO Lars Bonde, Group EVP Investor Relations 17 August 2012 Oslo, Norway Tor Magne Lønnum, CFO Nordea Lars Møller, IR Director 20-21 August 2012 London Morten Hübbe