Tryg A/s · OMXCOP:TRYG
Tryg A/s — Q1 2015 Earnings Presentation
22 slides from Tryg A/s's earnings presentation, Apr 15, 2015
Slide 1: Q1 results 2015
Q1 results 2015 Webcast presentation 15 April 2015 Follow us on Twitter: @TrygIR
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: Financial highlights Q1 2015
Financial highlights Q1 2015 - Satisfactory overall result driven by high investment return and a slightly weaker technical result impacted by weather claims and the low interest rate. Pre-tax profit • Pre-tax profit of DKK 665m (DKK 602m). DKKm 800 665 602 600 • Lower technical result of DKK 429m (
Slide 4: Customer highlights Q1 2015
Customer highlights Q1 2015 - The new customer initiatives were the key drivers of an improved Net Promoter Score (NPS). NPS 30 25 22 • Net promoter score (NPS) improved from 11 to 16. 20 16 15 11 10 • Number of customers with ≥ 3 products increased 5 from 56.3% to 56.5%. 0 CMD 2014 Q1 2015 Target 2
Slide 5: Important news in Q1 2015
Important news in Q1 2015 • Car – new price-differentiated product in Denmark. • Road assistance agreement with Viking extended to cover the Danish and Swedish markets. • AGM in March approved: • 2014 dividend of DKK 29 per share • 1:5 sharesplit – execution expected in May • Semi-annual dividend fr
Slide 6: Combined ratio development in business areas
Combined ratio development in business areas Combined ratio – Private (DK & NO) Combined ratio – Commercial (DK & NO) % % 100 100 95 91.8 95 90 88.0 90 84.6 85 85 81.9 80 80 75 75 70 70 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Group CR Q1 2015: 90.7 Q1 2014: 89.2 Combined ratio – Sweden Combined ratio – Corp
Slide 7: Follow up on efficiency programme 2015-2017
Follow up on efficiency programme 2015-2017 Efficiency programme up until 2017 • New efficiency programme started. Old programme New programme Planned to deliver DKK 750m savings in DKKm 450 the next 3 years. 400 350 300 250 • Lower expected 2015 savings than in 200 388 395 375 2014. 150 175 225 100
Slide 8: Expense ratio development
Expense ratio development • Expense ratio improved from 15.9 in Q1 2014 to Expense ratio 15.6 in Q1 2015 - an improvement of 0.3 pp. • 2015 will be impacted by one-off costs related 16.6 16.6 16.7 16.4 15.9 to new efficiency programme. 15.6 15.6 14.6 • Efficiency programme delivered savings of DKK 1
Slide 9: Premiums and portfolio
Premiums and portfolio
Slide 10: Topline and technical result
Topline and technical result Technical result impacted by high level of weather claims. Improved topline trend with 0.4% reduction (-2.0%) related to: • Positive development in Private driven by higher sales and stable retention in Denmark. • Commercial improved trend driven by high sales and improv
Slide 11: Private - average premiums
Private - average premiums DK - profitability strong but competition increasing House insurance – average premium (index 2008 = 100) 150 Average premiums increase Y/Y NO 140 -0.8% 1.4% 130 (Q4 -0.6%) (Q4 1.8%) DK 120 110 100 90 08 09 10 11 12 13 14 15 20 20 20 20 20 20 20 20 Motor insurance – averag
Slide 12: Customer retention
12 Q Q 82% 84% 86% 88% 90% 92% 1 82% 84% 86% 88% 90% 92% 1 11 11 Private Q Q 2 2 11 11 Q Q Commercial 3 3 11 11 Q Q 4 4 11 11 Q Q 1 1 12 12 Q Q 2 2 12 12 Q Q 3 3 12 12 Q Q 4 4 12 12 Q Q 1 1 13 13 Q Q 2 2 13 13 Q Q 3 3 13 13 Q Customer retention 4 Q 4 13 13 Q Q 1 1 14 14 Q Q 2- 14 2 14 Q Q 3- 14 3 14
Slide 13: Claims and expenses
Claims and expenses 13
Slide 14: CR and claims ratios Q1 2014-15
CR and claims ratios Q1 2014-15 • Underlying development is adjusted for: Underlying claims, net Q1 2014/2015 • Large claims 83.2 81.8 • Weather claims 75.0 74.9 75.3 74.6 74.3 71.4 • Run-off and interest 69.0 67.2 • Underlying development on Group level impacted by efficiency improvements. Group Pr
Slide 15: Large claims, weather claims and run-off
Large claims, weather claims and run-off Large claims, net DKKm Expected annual Weather claims, net DKKm Expected annual level 2015: DKK 550m level 2015: DKK 500m 300 600 500 200 400 300 242 100 200 121 100 215 154 0 0 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Run-off, net DKKm Run-off net, effect on combined
Slide 16: Weather claims affected by high number of house fires in Norway
Weather claims affected by high number of house fires in Norway NOKm • Weather claims in line with expectation. 900 800 • Storms in DK and NO for approx. 700 DKK 165m reduced to DKK 94m through 600 sideways cover. 500 400 300 • Winter claims affected by high number of 200 fire claims on house insura
Slide 17: Investment, capital and targets
Investment, capital and targets
Slide 18: Investment result Q1 2015
Investment result Q1 2015 7.7% Investment return Free portfolio - Return DKKm Q1 2015 Q1 2014 Free portfolio 282 129 2.3% Match regulatory deviation 30 -3 2.1% 2.2% 1.4% Match performance 26 30 0.5% Other financials -77 -67 s l y s EM Y ta it rt ie H os To pe t ui 261 89 ep o Eq Total return Pr D v.
Slide 19: Capital structure
Capital structure DKKm Capital – Q1 2015 12,000 • Capital buffer based on Individual Solvency increased to 55% (2014 Q4: 51%) and was Excess capital impacted by: • Result Q1 2015 8,000 3,701 Buffer • Executed share buy back of 2015 and cash dividend 2014 • Increases in stock market • Full inclusion
Slide 20: Financial and customer targets
Financial and customer targets Targets Targets 2015 2017 Financial targets: ROE after tax = 20% ≥ 21% Combined ratio ≤ 90 ≤ 87 Expense ratio < 15* ≤ 14 Customer targets: Net promoter score (NPS) +100% Retention rate +1 pp Customers ≥ 3 products** +5 pp * Excl. One-off effects ** Private (DK and NO)
Slide 21: Q&A
Q&A Follow us on Twitter: @TrygIR
Slide 22: Upcoming roadshows
Upcoming roadshows Date Place Participants from Tryg Arranged by Morten Hübbe, CEO 15/04/2015 Copenhagen Tor Magne Lønnum, CFO Nordea Markets Investor Relations Morten Hübbe, CEO 16/04/2015 London Tor Magne Lønnum, CFO Carnegie Investor Relations Tor Magne Lønnum, CFO 17/04/2015 Zurich Danske Market