Topdanmark Annual Report for 2016 Key features

Key features 2016

• Post-tax profit of DKK 1,536m (2015: DKK 1,170m) among other things driven by higher run-off profits and higher investment return
• Profit forecast model was DKK 1,200-1,300m in the interim report for Q1-Q3 2016
• EPS: DKK 16.8 (2015: DKK 11.7)
• Combined ratio: 85.1% (2015: 86.8%)
• Combined ratio excluding run-off profits was 90.4% (2015: 91.1%)
• Premiums declined 1.2% in non-life insurance, but increased 17.6% in life insurance
• Profit on life insurance increased to DKK 189m (2015: DKK 174m)
• After return and revaluation of non-life insurance provisions, investment return was DKK 487m (2015: DKK 165m)
• Share buy-back of DKK 1,524m in 2016, representing a buy-back yield of 9.6%.

Q4 2016

• Post-tax profit: DKK 421m (Q4 2015: DKK 333m)
• EPS: DKK 4.8 (Q4 2015: DKK 3.4)
• Combined ratio: 84.6% (Q4 2015: 90.5%)
• Combined ratio excluding run-off profits: 93.9% (Q4 2015: 96.0%)
• Premiums declined 1.4% in non-life insurance, but increased 1.9% in life insurance
• Profit on life insurance: DKK 54m (Q4 2014: DKK 85m)
• After return and revaluation of non-life insurance provisions, Investment return was DKK 148m (Q4 2015: DKK 139m).

  Profit forecast model for 2017

• As compared to the profit forecast model for 2017 in the interim report for Q1-Q3 2016, the underlying assumed combined ratio for 2017 remains unchanged at 90-91 excluding run-off. However, the assumed combined ratio for 2017 may increase by 0.5 to 1pp because Topdanmark increasingly invests in digitalisation and automation
• Consequently, the combined ratio is increased to 91-92 in the profit forecast model for 2017
• The efficiency improvement programme will run over the coming years and it is characterized in that expenses are paid before realization of the efficiency savings. However, return on investment is high and consequently, it is expected that additional expenses and gains from efficiency improvement will be offset during 2018 and 2019
• Topdanmark still expects premium growth in non-life insurance of around 0%
• Overall, post-tax profit forecast model: DKK 900-1,000m, excluding run-off.

Buy-back 2016 Of the overall buy-back programme for 2016 of DKK 1,650m, shares at a value of DKK 1,451m have been bought back, It is expected that the remaining shares at a value of DKK 199m should be bought back before the AGM on 4 April 2017.

Webcast Topdanmark's CEO, Christian Sagild will present the financial highlights and comment on the forecast in a webcast .

Conference call A conference call will be held today at 15:30 (CET) when CEO Christian Sagild and CFO Lars Thykier will be available for questions based on the interim report and the webcast. The call will be conducted in English.

In order to participate in the conference call, please call: UK dial-in number: +44 (0)20 7162 9961 US dial-in number: +1 646 851 2094 10-15 minutes before the conference quoting reference 961400 and ask the operator to connect you to the Topdanmark conference call – or listen to the live transmission of the call.

Please direct any queries to: Christian Sagild Chief Executive Officer Direct tel.: +45 4474 4450

Lars Thykier Chief Financial Officer Direct tel.: +45 4474 3714

Steffen Heegaard Group Communications and IR Director Direct tel.: +45 4474 4017, mobile: +45 4025 3524

Topdanmark A/S Cvr-nr. 78040017 Borupvang 4 DK-2750 Ballerup