Q results. Investor presentation. Follow us on

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1 Q results Investor presentation Follow us on

2 Contents Highlights Q Premiums and portfolio 10 Claims and expenses 14 Investment, capital and targets 18 Roadshows & Conferences 25 Background material 26 Appendix 45 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. Forwardlooking statements (other than statements of historical fact) regarding our future results of operations, financial condition, cash flows, business strategy, plans and future objectives can generally be identified by terminology such as targets, believes, expects, aims, intends, plans, seeks, will, may, anticipates, continues or similar expressions. A number of different factors may cause the actual performance to deviate significantly from the forward-looking statements in this presentation including but not limited to general economic developments, changes in the competitive environment, developments in the financial markets, extraordinary events such as natural disasters or terrorist attacks, changes in legislation or case law and reinsurance. We urge you to read our annual report available on tryg.com for a discussion of some of the factors that could affect our future performance and the industry in which we operate. Should one or more of these risks or uncertainties materialise or should any underlying assumptions prove to be incorrect, our actual financial condition or results of operations could materially differ from that described herein as anticipated, believed, estimated or expected. We are not under any duty to update any of the forward-looking statements or to conform such statements to actual results, except as may be required by law. 2

3 Financial highlights Q Improved technical result before Alka, lower investment income driven by a sharp fall in equities - Q4 dividend of DKK 1.65 per share and solvency ratio of 165 Technical result of DKK 656m before Alka (DKK 596m reported) Technical result (DKKm) Technical result of DKK 656m before Alka (DKK 596m reported) Alka impacts the technical result with DKK 124m one offs and DKK 63m technical result contribution (November & December) Large & weather claims below normal, run-offs also relatively low Steady improvement of the underlying claims ratio (before Alka), Private improved 50 bps, Group improved 40 bps Expense ratio of 14.4% before Alka (15.6% reported) Investment income of DKK -330m (DKK 86m) Expense ratio Highly negative development in equity markets impact free portfolio return Match portfolio reported a negative result driven by widening credit spreads Properties revaluation of DKK 75m in Q4 No changes to asset mix Pre-tax DKK 285m before Alka (DKK 149m reported) Other income/costs include a DKK 76m one off and DKK19m depreciation of customer relations and brand related to Alka Pre-tax result weighed down by Alka one-offs and negative capital markets developments in Q4 Combined ratio Q4 DPS 1.65, FY DPS 6.60, Solvency ratio of Seventh year with an increased ordinary dividend (since 2012) Solvency ratio of 165 impacted by longer (than initially estimated) period to obtain the Alka approval and higher interest payments to the seller and non equities related investment losses in Q4.

4 Customer highlights Q TNPS Transactional Net Promoter Score (TNPS) of 67 (62) Retention improved in all business areas Strong development in number of products per customer Number of products per customer Awareness of Customer Bonus improved especially for Non-customers 25% 13% 40% 4

5 Improved technical result primarily driven by Private & Commercial Group (DKKm) Private, DK & NO (DKKm) Commercial, DK & NO (DKKm) Corporate (DKKm) Sweden (DKKm) The DKK 124m one-offs on the technical result are not impacting the Business segments but only Group figures 5

6 Shareholders remuneration DKK Shareholder remuneration since 2012 Strong focus on shareholders remuneration Q4 DPS 1.65, FY DPS 6.6 Aiming for a nominal and stable increase in ordinary dividend (annual) No extraordinary dividend for the FY 2018 following the Alka acquisition High proftibility and low growth implies limited increase in capital requirement 600 Share price performance since IPO Value of Tryg since IPO (DKKbn) Tryg equity Euro insurance index

7 Strategic initiatives Claims Excellence (DKK 600m in 2020) DKK 150 in 2018 Product & Service Innovation (+DKK 1bn in 2020+) DKK 275m in 2018 ~DKK 100m: Savings from further leverage of Trygs procurement power and ensuring a higher utilization of our supplier contracts. ~DKK 35m: Improvement of the claims handling process through several initiatives, e.g.: using data and speech analytics, more accurate assessment and better recourse management. ~DKK 15m: Increased fraud detection expertise, which has been driving an approximately 25% higher level of fraud discovery. 57 new products and services across DK, NO and SE. New market demands addressed through a balanced mix between re-bundling, new products and prevention. ~DKK 145m: New products (e.g. Cyber, Undo:, Pet, NOKAS) ~DKK 110m: Bundling (e.g. Health, Child, Group accident) ~DKK 20m: Prevention (e.g. Tryg Drive, Alarm, Rat blocker) The profitable credit and surety business, Tryg Garanti, has introduced the product in countries outside the Nordics. Digital Empowerment of Customers (DKK 100m in 2020) DKK 20m in 2018 Distribution Efficiency (DKK 150m in 2020) DK 30m in 2018 ~DKK 10m: Based on increased use of robots in the claims handling process. More than 17,000 claims were processed as STP in DK. ~DKK 5m: The number of digital self-service interactions surpassed the number of analogue interactions. Achieved by introducing more possibilities for customers to digitally perform self-service. ~DKK 5m: From other initiatives related to Digital Empowerment. Specifically in Norway Tryg s digital focus led to the launch of the first online sales solution in the market for the commercial segment. Private business: ~DKK 15m In DK independent sales agents selling exclusively for Tryg have been engaged thus lowering sales costs NO has established a franchise set-up, and focused on selling through the customer service centre. Commercial business: ~DKK 15m In DK a new type of sales agent that combines the traditional sales agent and customer service centre sales has been introduced NO has increased their marked analytics and improved processes related to UW and improved hitrate 7

8 Alka: Strong financial track record Alka reported a FY 2018 technical result of DKK 342m driven by a Combined ratio of 84 and run-off gains of 5% Premiums growth was 4% driven by a good customer growth driven also by an increase in on-line sales DKKm Non-life Technical result Combined ratio 82% 84% 83% 91% 85% 84% Run-off gains* (%) 11% 10% 12% 7% 10% 5% Relative run-off (%) calculated as Run-off result / Claims reserves as per Danish FSA definition 8

9 Danske bank Nordic bancassurance agreement Strategic objectives Tryg and Danske Bank have entered into a new strategic partnership in Denmark, Norway and Sweden 1 2 Growth and to develop a profitable, long-term cooperation Strong value proposition 3 4 Agreement with high focus on Match on value and branding innovation and digital solutions Danske Bank is one of the largest banks in the Nordics with approximately 3 million customers and strong local routes ~ 1 May referral of customers from Danske Bank 5 7 Strong strategic Nordic partnership Bank customers a particularly attractive segment 6 Largest on each market - stronger distribution power Ultimo 2019 Nordea agreement ends Expected Portfolio Development (Index) 1 January 2020 Go Live 9

10 Premiums and portfolio

11 Group premiums up 13.0% in Q4, 4.5% excl Alka Group premiums were up 13.0% in local currencies, or 4.5% before Alka Private lines reported a 6.1% growth excluding Alka, positive trends in both Denmark and Norway Commercial growth was 6.8% helped by portfolio acquisitions and positive underlying development Corporate growth driven by price increases and good growth of Tryg Garanti Sweden increased by 7.7% primarily driven by a strong growth in pet insurance and accident business Premiums growth (local currency) expected to be between 0 and 2% in 2019 in line with previous years Gross earned premiums development (Local currencies) DKKm Q Q Local currencies Q Local currencies Q Private 2,679 2, % 1.1% Commercial 1, % 2.3% Corporate % 3.0% Sweden % 5.1% Group 5,053 4, % 1.9% 11

12 Private - average prices House insurance average price (index 2011 = 100) Average price development Y/Y 1.1% 3.0% (Q3 1.3%) (Q3 3.0%) DK: 1.1% positive development reflects both price increases and conversion Average price: 5,000 6,100 NO: 3.0% positive development reflects primarily price increases Motor insurance average price (index 2011 = 100) Average price development Y/Y 1.9% 1.9% (Q3 2.4%) (Q3 1.4%) Average price 4,400 5,900 DK: 1.9% positive development reflects both price increases and conversion NO: 1.9% positive development reflects underlying price increases. Average motor price is higher in Norway reflecting primarily different type of cars 12

13 Customer retention improving Private DK DK: customer retention at 91.2% (90.2%) highest level in five years NO: customer retention up to 86.7% (85.8%) showing an improved trend Commercial DK: customer retention at 88.0% (87.7%) remains at a high level NO: customer retention at 87.7% (86.9%) showing an improved trend 13

14 Claims and expenses

15 Underlying claims ratio improving Group underlying claims ratio (before Alka) at 73.2, 40bps better than Q Claims ratio, net (Commercial DK & NO) Private underlying claims ratio (before Alka) at 67.8, 50bps better than Q Corporate profitability remains under pressure Expected FY 2019 underlying claims ratio better than FY 2018 Tryg & Alka together underlying claims figures to be provided ahead of Q Group Claims ratio, net (Corporate) Underlying development is adjusted for run-off, large claims, weather claims and interest. Private (DK & NO) Claims ratio, net (Sweden) Underlying development is adjusted for large claims, weather claims, run-off and interest. 15

16 Large claims, weather claims and run-off Large claims, net DKKm Weather claims, net DKKm Expected annual level 2019: DKK 550m Expected annual level 2019: DKK 600m Expected annual level 2018: DKK 500m Claims reserves discounting rate (%) Run-off net, effect on combined ratio (%) Q4 run-offs at 4.1% of the COR, FY run-offs at 6.5% of COR Corporate segment in Q4 reported a run-off loss of DKK54m or 5.5% of COR Key driver of Corporate run-off loss was adverse development of few prior years large claims Guidance is for 2020 run-offs between 3% and 5% 16

17 Expense ratio of 14.4 before Alka Efficiency initiatives in 2017 reduced overall costs Expense ratio Investments in digitalisation will somewhat offset further efficiency gains Expense ratio target for 2020 around 14%, Q at 14.4% before Alka reflecting volatility between quarters. FY 2018 Expense ratio before Alka 14.1% Higher number of employees driven primarily by the inclusion of Alka Q Q (Before Alka) Adjusted for one-offs As reported 15.6 Q Expense ratio by business areas FTE - Development 17

18 Investment, capital and targets

19 Investments Split in Match & Free portfolio Total investments DKK 40bn Match portfolio DKK 29bn Splitting up the portfolio risk-wise Free portfolio DKK 11bn Sweden DKK 5 bn Denmark DKK 16 bn Norway DKK 8 bn 19

20 Investment return low risk remains key Key figures - Investments Different asset classes Geographical exposure (%) DKKm Q Q Free portfolio Match portfolio Other financial income and expenses Total investment return Group fixed income portfolio rating split Corporate bonds portfolio (DKK 2.2bn) rating split 20

21 SCR Q3 '18 Market Other Alka SCR Q4 '18 Own Funds Q3 '18 Results Q4 '18 Cash dividend Intangible assets Subordinated debt Own Funds Q4 '18 Solvency position Q Own funds walk Solvency ratio based on the Partial Internal Model is 165 (Q3 2018: 291). 16,500 14,500 12,500 10,500 8,500 13, Own Funds (OF) is primarily impacted by Result Q of DKK 110m Dividends of DKK 499m Intangibles of DKK 5,437m 6,500 4,500 8,058 SCR is primarily impacted by Solvency capital requirement walk 5,200 Inclusion of Alka in the model Reduced equities charge following Q4 highly negative markets, dampener effect Based on Solvency II Standard Formula the solvency ratio is 135 (Q3 2018: 236). 5,000 4, Standard Formula SCR DKK 5,980m 4,600 4,400 4,200 4, ,892 Solvency ratio at 165 is slightly below previous estimates driven by a longer (than initally estimated) period for the Alka approval (higher interest payments to the seller) and negative markets in Q4 (non equities related). 21

22 Capital and solvency ratio development Capital Tiers as % of SCR Tier 2 cap means some DKK 140m of subordinated loan not included in Own Funds 2,446 50% 1,107 23% 4,505 92% Q4 '18 DKKm Q4 '18 % of SCR CETier 1 ATier 1 Tier 2 Tier 1 capacity for practical purposes fully utilized (DKK 20m potential) The Danish FSA has explained that a ratio lower than 125 would result in increased surveillance. Solvency ratio development mostly a function of net profits (+) and dividends (-). Underlying development should remain pretty stable. Solvency ratio development 22

23 Solvency ratio sensitivities 190% 180% 170% 160% 150% 165% 167% 161% 171% 158% 163% 167% 151% 179% 164% 166% 164% 166% 167% 162% 163% 167% 140% 130% 2018 Equity Property Interest Spread (Covered) Spread (Corporate) Spread (Government) NOK/DKK SEK/DKK The Solvency II ratio shows the highest sensitivity to spread risk for covered bonds Assumption is for a 100bps widening/narrowing of our entire fixed income book (Danish government bonds, Danish mortgage bonds, Norwegian government bonds, high yield etc.) Biggest spreads sensitivity (by far) in the fixed income area is towards covered bonds. Corporate and Government bonds sensitivities are low as exposure to these assets classes is low The Solvency II ratio is not highly sensitive to equity markets movements as most of the Own funds hit from a sharp fall in equity markets would be offset by a lower capital requirement (lower market values combined with the effect of a reduced charge due to equity-dampener) Interest rate risk is very low as function of our matching strategy 23

24 Targets and outlook New financial Targets announced at 2017 CMD 2018 underlying topline growth between 0-2% Member bonus of 8% in June expected tax rate around 22-23% Price increases to offset claims inflation Alka acquisition will result in annual depreciation of customer relations of DKK 127m within a 5 to 7 years period. Solvency position (hence dividend capacity) not impacted by the P&L charge Targets post Alka acquisition Financial targets, 2020 Technical result DKK 3.3bn Combined ratio 86 Expense ratio ~ 14 ROE after tax 21% Customer targets, 2020 TNPS 70 No. of products per customer +10 % ROE after tax (%)

25 It is important to know your investment case Do you know the only thing that gives me pleasure? It s to see my dividends coming in. John D. Rockefeller 25

26 Q4 roadshows & conferences Date Place Participants from Tryg Arranged by 22/01/2019 Copenhagen 23/01/2019 London Morten Hübbe, CEO Johan Kirstein Brammer, CCO Investor Relations Morten Hübbe, CEO Gianandrea Roberti, IRO Carnegie DnB 25/01/2019 Oslo Espen Opedal, Head of Tryg Norway Peter Brondt IR Manager DnB 19/02/2019 Geneva Lars Bonde, COO Peter Brondt, IR Manager Danske Bank 20/02/2019 Zürich Lars Bonde, COO Peter Brondt, IR Manager Carnegie 19-21/03/2019 London Peter Brondt, IR Manager Morgan Stanley Conference 16/03/2019 Ballerup Supervisory Board Morten Hübbe, CEO Johan Kirstein Brammer, CCO Lars Bonde, COO Investor Relations Tryg s AGM 20/03/2019 Milan Gianandrea Roberti, IRO Carnegie 26

27 Background material

28 Tryg s equity story a leading Scandinavian non-life insurer Claims Excellence DKK 600m in claims cost reduction Tryg : Strengthening the core, while embracing the future Financial targets 2020 Technical result: DKK 3.3bn Combined ratio: 86 Expense ratio: ~14 ROE: 21% Dividend policy Customer targets 2020 TNPS: 70 Targeting a nominal, stable and increasing dividend Number of products per customer: +10% Extraordinary dividend to further adjust the capital structure Product & Service Innovation +DKK 1bn in new products by Digital Empowerment of Customers DKK 100m STP on claims: 50% Self-service: 70% Alka acquisition DKK 300m in synergies with full run-rate impact in 2021 Distribution Efficiency DKK 150m in technical result impact Long term profitable growth and attractive shareholder value creation 28

29 Why invest in Tryg? Pre-tax result by division (YE 2017 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 29

30 Tryg at a glance Tryg goes back to 18th century. Gross premium split by products 2018 Very strong brand position especially in Denmark. Non-life insurance in Denmark, Norway and Sweden. Approx. 80% retail business. Retention rate - Private DK Norway Market position: #3 Market share: 13.2% CR in 2018: 87.7 % Percentage Sweden Market position: #5 Market share: 3.0% CR in 2018: 95.2% Retention rate - Commercial Denmark Market position: #1 Market share: 21.8% CR in 2018: 80.6% Business split 2018 Percentage 30

31 Premiums and reserves by lines of business Gross premium by products 2018 Gross claims reserve by products 2018 Percentage Percentage Run-off net by products Q Run-off net by products Q Percentage Percentage 31

32 Gross premium split by geography DK: Gross premium by products 2018 SE: Gross premium by products 2018 Percentage Percentage NO: Gross premium by products 2018 Run-off net by products 2018 Percentage Percentage 32

33 Claims inflation differs from core CPI Annual Danish insurance gross claims increase vs CPI Danish non-life insurance gross claims development Cloudburst hitting Copenhagen in 2011 explains jump and fall of figures in Figures not adjusted for changes in number of insured objects Source: Danish FSA and Danmarks statistik Construction index cost YoY % change, Denmark Construction index cost YoY % change, Norway 5.7% 4.7% 3.7% 2.7% 1.7% 0.7% -0.3% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Total Material Labour cost Total Materials Labour cost 33

34 The run-off cycle We assessed the claim at DKK 18,000 but reserve for DKK 20,000 Run-off development 3 years Run-off: Claims estimate: Claims buffer: Initial assessment of the claims was DKK 18,000 but Tryg reserved for DKK 20,000 adding some conservatism to best estimate. At the time of setting up the claims reserves and booking the claims in the P&L the Loss ratio (hence the combined ratio) is worse than what should be if our initial assessment is correct. After three years (approx. and using average for Tryg group) the DKK 2,000 added for conservatism comes back in the P&L as a positive run-off gain or reserves releases. All the above assumes that initial assessment was correct and nothing has changed in the three years period. Figures in the example above are purely illustrative. 34

35 Combined ratio development price increases will improve underlying combined ratio operational focus with target to cut expenses and claims costs by DKK 1bn in total New efficiency programme of DKK 750m launched. *IFRS from Previous years are Danish GAAP. Data before 2009 is not corrected for the sale of Marine Hull business, and Finland before

36 Structure of the Nordic insurance market Nordic EUR 25.9 bn (as at Q4 2017) Denmark DKK 54.1 bn/eur 7.3bn (as at Q4 2017) Percentage Percentage Norway NOK 58,4 bn/eur 6,1bn (as at Q3-2018) Sweden SEK 83.6 bn/eur 8.2bn (as at Q3-2018) Percentage Percentage 36

37 Distribution of new sales 2018 Private DK NO SE Commercial DK NO Corporate DK NO SE 37

38 Things that you may not know Motor insurance prices relatively similar in DK and the UK but cost of the insured good (the car) substantially higher in DK driven by the registration tax for passenger cars (100%-150% of taxable value on new vehicles approx.). Motor insurance remains a highly attractive business in Scandinavia unlike many European countries. In Oslo, it costs approx. NOK 5,000 per month to hire a dog walker for 5 weekly walks, each walk is minimum 60 minutes. In Sweden it is illegal to leave a dog home alone more than six hours, the dog has to be out at least every six hours during the day. Pet insurance premiums totalled SEK 3.3bn at the end of September 2015 in Sweden but that includes horses as well. Tryg believes that Pet insurance remains an attractive growth segment. Child insurance is an important product in Sweden with total market premiums above SEK 2.5bn, the same product is virtually non-existent in Denmark and Norway. We believe this will gradually change and plan to leverage on our Skandia child insurance acquisition. In 2014, Tryg bought Securator reinforcing its leading position in the Nordic market for product and extended warranty insurance, a market which is estimated at more than DKK 2bn. 38

39 Things that you may not remember Our maximum annual net exposure to a single large Property claim is DKK 100m which falls to DKK 75m in case of a second event and DKK 50m in case of a third/fourth event, maximum exposure is DKK 25m thereafter. This is based on our general reinsurance programme. Our maximum net exposure for weather claims is DKK 150m per event. The upper limit of the programme is DKK 5.75bn, which is statistically sufficient to cover at least a 250-year event. We have bought an additional horizontal reinsurance programme which will cover any weather claims in excess of DKK 300m up to DKK 600m. Weather claims have to be at least DKK 20m to end in the horizontal agreement. Local accounting rules driven by Danish FSA means that all assets are marked to market. This is different from Nordic/International peers where many fixed income portfolios are hold to maturity and/or the marked to market hits the NAV and not the P&L. The unrealised gains and losses item does not show up in the P&L of some of our Nordic peers (as most bonds are hold to maturity) or hits the NAV as opposed to the P&L. 39

40 IBM study from 2007, probably little has changed Danish customers completely and strongly agree Overall I am very satisfied with the services of my insurance company My insurance agent only sold me insurance coverage that I really needed My present insurance coverage offers me enough flexibility Claims: my insurance company in uncomplicated and helpful way I have full confidence in my personal insurance agent My insurance is more cost effective than most other insurances 40 Source: IBM Institute for Business Value and I.VW University of St. Gallen 2007 Insurance Study

41 Population growth ( ) Population development in Denmark in 1,000 DK 7% Growth : 0-17 years 1.9% 18+ years 8.5% Total 7.1% Population development in Norway in 1,000 NO 16% Growth : 0-17 years 7.1% 18+ years 19.3% Total 16.4% 41

42 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 Have not heard about Customer Bonus 93% 81% Retention rate increase by 1% gives approx. DKK m reduction in expenses on group level TryghedsGruppen s highest govern body is the Board of representatives. The Board composes 70 representatives chosen by and among Tryg s Dansih customers. Every year, > DKK 440m to Private costumers > DKK 150m commercial customers > DKK 130m for corporate costumers there is an election in one of the five geographocal regions in Denmark. Every 5th Dane receives a bonus! 8% in

43 Organisational and remuneration structure Organisation chart Remuneration structure The Executive Board are remunerated according to Tryg s remuneration policy: Base salary Pension o 25% of the base salary Variable pay o o Up to 50% of the base salary including pension The variable pay element is a Matching Shares Programme: The Executive Board may buy Tryg shares (so-called investment shares) at market price for a predefined amount. Four years after the purchase, Tryg will grant one matching share per investment share free of charge. Download Tryg s statutory corporate governance report and remuneration policy on tryg.com 43

44 Corporate Responsibility in Tryg Our Corporate Responsibility contributes to long-term value creation Tryg s Corporate Responsibility 2020 strategy is aligned with our corporate strategy and purpose; as the world changes, we make it easier to be tryg *. In 2018, Tryg launched an independent Corporate Responsibility report with extended Environmental, Social and Governance (ESG) data. Please see the report on tryg.com. Our three strategic focus areas are Peace of mind in society Initiatives which increase peace of mind in society. Running the Nightravens secretariat and contributing to safety along Norwegian coasts and harbours through the lifebuoy initiative Minimise and reduce the number of claims by integrating prevention initiatives into our products Responsible workplace Ensure compliance and have the necessary policies and processes in place. Regulatory compliance Employee responsibility ESG data UN Sustainable Development Goals (SDGs) Responsible Investments Customer relations We want our customers to experience the best and most competent service. Sustaining good customer relations Offer relevant products to match customer expectations and needs Protecting customer data * Tryg means feeling protected and cared for. 44

45 Corporate Responsibility UN Sustainable Development Goals Highlights 2018 A UN Sustainable Development Goal (SDG) assessment was completed. Conclusion Tryg has a direct and indirect impact on the 17 SDGs and 196 targets. However, we have focused on SDGs where we have a direct impact and pinpointed two specific goals for which we have defined Key Performance Indicators (KPIs) to track performance. SDG prioritised list The SDGs on which Tryg has the most direct impact through our core business include: The SDGs on which Tryg has a medium direct impact include: 41% women in management positions in % reduction in carbon emissions in 2020 The SDGs on which Tryg has a low direct impact include: In the coming year, we will work to potentially include more goals from the high-impact SDGs to achieve greater impact through our business activities. 45

46 Key figures 2017 and Consensus Consensus DKKm 2018A Gross premium income 18,740 18,656 20,870 21,331 Technical result 2,766 2,777 3,143 3,307 Investment income, net Pre-tax profit 2,262 2,336 3,061 3,295 Net income 1,731 1,752 2,414 2,543 Combined ratio 85.1% 85.1% 84.9% 84.5% Expense ratio 14.4% 14.4% 14.0% 13.9% Ordinary dividend per share Extraordinary dividend per share Consensus is based on 15 estimates ahead of Q4 2018

47 Appendix Follow us on

48 Group Gross premiums Combined ratio DKKm GEP (LHS) Local currency (RHS) % % Claims ratio, net of reinsurance % % Expense ratio 48

49 Private DKKm Gross premiums GEP (LHS) Local currency (RHS) % Combined ratio Claims ratio, net of reinsurance Expense ratio 49

50 Commercial * DKKm Gross premiums GEP (LHS) Local currency (RHS) % Combined ratio Claims ratio, net of reinsurance Expense ratio * Less than 100 employees or less than DKK 100m turnover 50

51 Corporate * DKKm Gross premiums GEP (LHS) Local currency (RHS) % Combined ratio Claims ratio, net of reinsurance Expense ratio * More than 100 employees and more than DKK 100m turnover 51

52 Sweden DKKm Gross premiums GEP (LHS) Local currency (RHS) % Combined ratio Claims ratio, net of reinsurance Expense ratio 52

53 Geographical combined ratio Denmark Sweden Norway 53

54 Corporate history 1728, Copenhagen experienced what was later to be known as the Copenhagen Fire of The fire heightened public awareness of the need for insurance 1731, The oldest component of Tryg s history was the Danish insurance company Kjøbenhavns Brand was established by Royal Decree as a result of the Copenhagen Fire of , The Norwegian insurance company Vesta was established. The name Vesta derives from Roman mythology, Vesta is the goddess of hearth, home and family 1911, The name Tryg emerged (Tryg means peace of mind in Danish) 1990, The mutual company Tryg demutualised and the ownership of the new limited company was placed in Tryg I Danmark 1994, Tryg acquired the Danish insurance operations of Winterthur 1995, Tryg acquired Baltica and continued operations under the name Tryg-Baltica 1996, Tryg-Baltica was listed on Copenhagen Stock Exchange. Tryg I Danmark retained a 60% ownership 1999, Tryg-Baltica merged with Denmark s second largest banking group, Unidanmark whose general insurance activities were integrated with Tryg. Tryg-Baltica de-listed At the end of 1999 the Norwegian insurance company Vesta was acquired from Skandia 2000, Tryg, Vesta and Unibank contributed to the formation of Nordea. Tryg I Danmark holds at this point a 6% stake in the Nordic banking group 2001, Tryg established a branch in Finland 2002, Tryg I Danmark acquired Nordea s non life activities and forms TrygVesta 2005, TrygVesta was listed on the OMX Nordic Stock Exchange in Copenhagen on October , TrygVesta launched a Swedish branch in June 2009, The acquisition of the Swedish insurance company, Moderna, was completed in April 2012, Tryg sells its Finnish business to Sampo/If. 2015, Tryg split its share 1:5, meaning each share with a nominal value of DKK 25 was replaced by 5 shares with a nominal value of DKK , Tryg received the final approval of the Alka acquisition from the Danish authorities 54

55 Economic key figures Denmark % 2018E 2019E Sweden % 2018E 2019E GDP Growth Inflation Unemployment GDP Growth Inflation Unemployment Current account balance in % of GDP Current account balance in % of GDP Budget balance in % of GDP Public debt in % of GDP Budget balance in % of GDP Public debt in % of GDP Norway % GDP Growth (mainland) Inflation Unemployment Current account balance in % of GDP Budget balance in % of GDP Public debt in % of GDP Source: Economic Outlook, Nordea Markets, September