Tryg A/s · OMXCOP:TRYG
Tryg A/s — TrygVesta — Q3 2006 Earnings Presentation
18 slides from Tryg A/s's earnings presentation, Nov 9, 2006
Slide 1: Webcast Q3 2006 results
Webcast Q3 2006 results November 9, 2006 Visit www.trygvesta.com for further information 1
Slide 2: Highlights Q3 2006
Highlights Q3 2006 Gross Gross premium premium income income DKK DKK 4.1bn, 4.1bn, up up 2.5% 2.5% Combined Combined ratio ratio of of 85.3% 85.3% Technical Technical result result DKK DKK 740m, 740m, up up DKK DKK 85m 85m Outlook Outlook for for 2006 2006 upgraded upgraded • Solid premium growth in
Slide 3: Income summary statement
Income summary statement Q3 Q3 Q3 Change Q3 1-3 Q 1-3 Q 1-3 Q Change 1-3 Q In DKKm 2006 2005 2004 2005/2006 2006 2005 2004 2005/2006 Gross premiums earned 4,071 3,975 3,810 2.4% 12,036 11,744 11,446 2.5% Claims ratio 64.1 65.2 65.9 1.1 67.4 72.7 67.3 5.3 4.6 3.6 4.8 -1.0 3.4 -1.6 5.4 -5.0 Business c
Slide 4: Key ratios
Key ratios Gross earned premiums, DKKm Combined ratio in % 115 4,071 4.100 3,975 100 3,810 91.1 3.850 89.0 87.9 85.4 85.3 85 3.600 70 Q3 2004 Q3 2005 Q3 2006 2004 2005 Q3 2004 Q3 2005 Q3 2006 Claims ratio net of ceded business, Expense ratio in % in % 19 80 18 76 74.0 17.2 72.1 17.1 16.9 72 70.7 17
Slide 5: Gross Premium Drivers
Gross Premium Drivers - Change from Q3 2005 4.100 +2.5% 4.050 4.000 DKKm 3.950 3.900 3.850 3.800 Group Q3 05 P&C DK P&C NO Corp. Finland Group Q3 06 5
Slide 6: Technical Result Drivers
Technical Result Drivers - Change from Q3 2005 800 +13% 700 DKKm 600 500 400 Group Q3 05 P&C DK P&C NO Corp. Finland Group Q3 06 6
Slide 7: Result distribution
Result distribution • Good growth in earnings balanced between business areas • 33% return on equity after tax • Strong improvement in Corporate – particularly in Norway • Large claims of gross YTD DKK 468m against DKK 416m in full year 2005 • Run-offs affect result positively YTD with gross DKK 289
Slide 8: Performance of claims
Performance of claims Claims ratio, net of ceded business Claims ratio, net of ceded business 85 83.6 80 77.0 77.7 80.1 76.0 76.4 80 78.3 74.9 75 75 74.0 70.470.7 72.1 In % In % 70 68.5 68.8 68.7 68.7 67.4 70 65 65 60 60 2001* 2002* 2003* 2004 2005 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2006 04 04 04 0
Slide 9: Performance of claims
Performance of claims Frequency in Denmark Frequency in Norway 110 110 100 100 90 Index Index 90 80 80 70 70 60 2002 2003 2004 2005 YTD 05 YTD 06 2002 2003 2004 2005 YTD 05 YTD 06 Auto Building Auto Building Average claims in Denmark Average claims in Norway 120 140 110 130 120 Index Index 100 110 9
Slide 10: Storm and large claims
Storm and large claims Large claims Storm and weather related claims 800 739 1000 911 800 600 461 468 416 600 DKKm 400 DKKm 278 301 236 400 200 184 200 84 111 93 73 0 0 2001 2002 2003 2004 2005 YTD YTD 2001 2002 2003 2004 2005 YTD 2005 2006 2006 10
Slide 11: Outlook for 2006 and 2007
Outlook for 2006 and 2007 - Outlook upgraded for 2006 Expected Expected Outlook Outlook Favorable Negative Realised 2005 DKKm 02.28.2006 05.11.2006 17.08.2006 09.11.2006 scenario scenario Premium growth 2.9% 4% 4% 3% 3% Technical result 2,053 1,800 2,100 2,300 2,450 2,600 2,300 Investment income 888
Slide 12: P&C Denmark
P&C Denmark Combined ratio in % • GEP adjusted for discounts up 2,1% to DKK 1,606m 115 • Unique customer benefit; extended warranty insurance 100 93.2 • Price adjustments in certain auto segments 89.8 90.7 88.3 85.2 have triggered slight reduction in average 85 premiums • Rain storm in August amount
Slide 13: P&C Norway
P&C Norway Combined ratio in % 110 • GEP down 3.2% to DKK 1,142m – adjusted 90 85.3 for currency down 2.7% 83.2 83.1 80.7 83.0 • Positive development in new sales since June and continued improvement in retention 70 • Additional customer benefits to multi product customers 50 2004 2005 Q3 2004 Q3 20
Slide 14: Corporate
Corporate Combined ratio, in % 100 • GEP up 7.5% to DKK 1,264m 94.6 95 • Positive development in direct sales in DK 92.4 90 89.7 and in broker sales in DK and NO 85.7 85 • Sales levels are very satisfactory in all 81.8 channels 80 • Very low expense level – auto and liability 75 affect positively 20
Slide 15: Finland
Finland Financial Financial highlights highlights • Gross premium income up 42.1% to DKK 54m • Claims ratio, net of ceded business 67.4 % vs. 76.3% • Expense ratio 35.3% vs. 36.8% • Combined ratio 102.7% vs. 113.1% Operational Operational highlights highlights • First positive technical result with
Slide 16: Investment income
Investment income • Investment income before other financial income and expenses of DKK 1,198m YTD • DKK 36.3b in investment assets at the end of Q3 2006 Asset allocation as of September 30, 2006, in % 6.3 13.9 79.8 Bonds Equities Real estate 16
Slide 17: Capitalisation
Capitalisation - Stable financial platform 175% 14,000 150.9% 148.0% 150% 12,000 125.3% 128.5% 121.3% 10,390 9,974 125% 10,000 8,797 8,682 93.7% 7,755 7,571 7,885 100% DKKm 8,000 6,852 6,018 6,010 6,167 75% 6,000 4,268 65.9% 4,000 50% 55.8% 52.9% 51.5% 49.7% 41.8% 2,000 25% - 0% 2002 2003 2004 2004
Slide 18: Q&A session
Creating peace-of-mind Q&A session To participate in our conference call at 10:00 CET Dial in at +353 1 439 0432 or + 45 7026 5040