Tryg A/s · OMXCOP:TRYG
Tryg A/s — Danske Bank Winter Seminar 2017
22 slides from Tryg A/s's conference presentation, Dec 11, 2017
Slide 1: Danske Bank Winter Seminar
Danske Bank Winter Seminar 11 December 2017 Johan Kirstein Brammer, SVP Private Denmark
Slide 2: Agenda
Agenda 1. Tryg at a glance 2. Current performance 3. Current initiatives and targets 4. Wrap up 2
Slide 3: Tryg – at a glance
Tryg – at a glance Gross premium split by products 2016 • Tryg goes back to 18th century. • Very strong brand position especially in Denmark. • Non-life insurance in Denmark, Norway and Sweden. Percentage • Approx. 80% retail business. Norway Market position: #3 Retention rate - Private Market share
Slide 4: Shareholders' remuneration
Shareholders’ remuneration Shareholder remuneration since 2012 Strong focus on shareholders’ remuneration DKK • Q3 DPS 1.6, 9M DPS 4.8 3.5 • Aim for a nominal stable increasing dividend (annual) • High proftibility and low growth implies limited increase in capital requirement Q3 • Strong Solvency p
Slide 5: TryghedsGruppen and its members' bonus
TryghedsGruppen and its members’ bonus Denmark's ‘biggest’ family Bonus positive effect on retention ‘I expect to be in Tryg next year’ Have heard about Customer bonus 93% Have not heard about Customer Bonus 81% Retention rate increase by 1% gives approx. DKK 50-150m reduction in expenses on group l
Slide 6: Agenda
Agenda 1. Tryg at a glance 2. Current performance 3. Current initiatives and targets 4. Wrap up 6
Slide 7: Tryg 2015 – 2017: Aiming for world class
Tryg 2015 – 2017: Aiming for world class Target picture 2015 - 2017: Simultaneously Target drivers 2015 - 2017 providing world class earnings and customer experiences 1 2 Next Level Leading in Pricing Efficiency Earnings 3 Customer 4 Customers Low Risk, Care worth High Return • Utilising the mutual
Slide 8: Delivering on 2017 targets
Delivering on 2017 targets Targets presented on Capital Markets Day, 5 November 2014 Category Key Performance Indicators Targets 2017 Q1-Q3 2017 Comments Combined ratio ≤ 87 83.8 Delivered as promised Expense ratio ≤ 14 14.1 Delivered as promised Return on equity ≥ 21% 30.9% Delivered as promised Ea
Slide 9: Solid performance across all core businesses
Solid performance across all core businesses Combined ratio - Private (DK & NO) 49% of Combined ratio - Commercial (DK & NO) 23% of premium premium Combined ratio - Corporate 21% of Combined ratio - Sweden (Private) 7% of premium premium 9
Slide 10: World class achieved on earnings
World class achieved on earnings Combined ratio: Strong Nordic performance Expense ratio: Best in class International peers Nordic peers International peers Nordic peers Likewise a strong performance on ROE – benchmark top 3 Nordic players Return on equity (Q1-Q3 2017) 35% 30.9% 24.6% 22.4% 20% 10
Slide 11: Number of products drives value
Number of products drives value Customer targets put into perspective (case: Private Denmark) Net Promoter Score (NPS) Avg. customer lifetime (years) Lifetime value following number of products • A ≥3 product engagement correlates to • A ≥3 product engagement increases • A ≥3 product engagement rend
Slide 12: Agenda
Agenda 1. Tryg at a glance 2. Current performance 3. Current initiatives and targets 4. Wrap up 12
Slide 13: Insurance Packages with Products and Services
Insurance Packages with Products and Services Strategic From sales of single ..to sale of insurance .. to sale of insurance direction insurances… packages packages & services • Purchase of single insurances • Insurance packages simplifies • 3 Additional services increase Customers • High Complexity
Slide 14: Child insurance bundled in Q4 2016
Child insurance bundled in Q4 2016 • Sales above budget • Average premium uplift compared to child accident insurance • +50% has bought the largest package incl. healthcare. Before only 6% bought healthcare for their children 14
Slide 15: Alarm Solution with multiple Components
Alarm Solution with multiple Components Control unit Optional Components (1 pr. Package) App Moisture meter Smart plug Moisture meter Fire Alarm Indoor Climate Control Burglar Alarm I Burglar Alarm II - Control unit - The Customer installs and connect to the internet - The Customer recieves push mes
Slide 16: Online meetings and Extended openings hours increase our distribution power
Online meetings and Extended openings hours increase our distribution power Extended opening hours gives a better New Sales channel: Online meetings customer experience and higher sales YTD 1 June - Week 39 Number of Calls 1200 1000 • Sale (DKK) 1.7m 800 • Online meetings (numbers) 280 600 400 200 0
Slide 17: Digitalisation streamlines Tryg Private and increases entry barriers
Digitalisation streamlines Tryg Private and increases entry barriers • Reduction in calls concerning -50% Invoice Calls invoices using digital invoice view My site incl. Invoice help Today Target • Reduction in number of -50% Chatbot internal calls between Sales and back office using chatbot Today T
Slide 18: FDM and Alka
FDM and Alka Tryg takes over FDMs insurance customers 1 January 2018 FDM is an extremely good strategic fit with Tryg (Private DK) The Agreement supports Private Denmark’s strategic course Strategic rationale Strategic rationale Top line growth Growth FDM’s brand Claims handling high quality Attract
Slide 19: 2020 Targets (including Alka)
2020 Targets (including Alka) Earnings CMD 2017 Post transaction Technical result DKK 2.8bn DKK 3.3bn Combined ratio ≤ 87% ≤ 86% Expense ratio ~14% reaffirmed ~14% reaffirmed RoE ≥ 23% ≥ 21% Customers CMD 2017 Post transaction TNPS 70 70 No. products per customer +10% +10% 19
Slide 20: Agenda
Agenda 1. Tryg at a glance 2. Current performance 3. Current initiatives in Private Lines 4. Wrap up 20
Slide 21: Why invest in Tryg?
Why invest in Tryg? Pre-tax result by division (YE 2016 data) High insurance penetration in the Nordics Premiums per capita (USD), 2016 Motor combined ratios Nordics vs international Tryg is a dividend stock DKK Total yield (dividend and buy backs / market cap) at year end 21
Slide 22: Questions?
Tryg|© Questions?