Tryg A/S – Interim report Q1-Q3 2017 Tryg’s

Tryg’s Supervisory Board has today approved the interim report for Q1-Q3 2017. Technical result of DKK 789m, approximately 6% above Q3 2016. Premium growth of 1.5% mainly driven by positive development in Private Denmark. Improvement in the underlying claims ratio and an expense ratio of 13.6. Investment return of DKK 87m primarily driven by a positive development in the free portfolio. Solvency ratio of 211 and quarterly dividend of DKK 1.60 per share benefit shareholders and support TryghedsGruppen’s 8% members’ bonus in 2017. Financial highlights Q3 201 7   

• Profit before tax of DKK 860m (DKK 923m) and after tax of DKK 671m (DKK 732m)
• Technical result of DKK 789m (DKK 744m)
• Combined ratio of 82.6 (83.7). Large claims and weather claims approximately at the same level as Q3 2016. DKK 103m savings from efficiency programme
• Underlying claims ratio improved in both Private and for the Group compared to Q3 2016
• Expense ratio of 13.6 (14.5) with positive impact by the efficiency programme
• Premium growth of 1.5% in local currencies
• Investment return of DKK 87m boosted primarily by positive equity markets and generally good performance in the free portfolio
• Q3 dividend of DKK 1.60 per share and solvency ratio of 211

Financial highlights Q1-Q3 2017   

• Profit before tax of DKK 2,554m (DKK 2,420m) and after tax of DKK 1,990m (DKK 1,911m)
• Technical result of DKK 2,167m (DKK 2,076m)
• Combined ratio of 83.8 (84.4). Large claims and weather claims below Q1-Q3 2016. DKK 258m savings from efficiency programme
• Expense ratio of 14.1 (14.9) with positive impact by the efficiency programme
• Premium growth of 1.6% in local currencies
• Investment return of DKK 441m, boosted primarily by strong equity markets and a good performance in the free portfolio
• Q1-Q3 dividend of DKK 4.80 per share (DKK 1.60 paid in April. DKK 1.60 paid in July and DKK 1.60 to be paid on 13 October)

Customer highlights Q3 2017 

• NPS of 22 (24)
• Retention rate of 87.8 (88.0)
• Share of customers with three or more products of 58.9% (57.0%)

Statement by Group CEO Morten Hübbe: We are pleased to present a technical result, which increases by 6% compared to Q3 2016 and that we see progresses towards our expense ratio target of 14 driven by our efficiency programme. We continue to see a positive premium growth for the Tryg Group, which is primarily driven by the Danish Private business. We continue to focus on developing new, innovative insurance solutions, which should improve our customers’ peace-of-mind, strengthen our core business and create new sources of income. At the same time, we have implemented a series of initiatives to improve the customer experience. Among other things, we have expanded our opening hours, introduced online meetings and automated several claims processes, which ensures an even quicker claims-handling for our customers. Finally, I am pleased that for the second year running, TryghedsGruppen has paid DKK 700m in bonuses, corresponding to 8% of the premium paid for 2016 to approximately 850,000 of our Danish customers.

Conference call Tryg hosts a conference call today at 10:00 CET. CEO Morten Hübbe and CFO Christian Baltzer will present the results in brief followed by Q&As. The conference call will be held in English. An on-demand version will be available shortly after the conference call has ended. Conference call details: Danish participants:             +45 35 44 55 83 UK participants:                   +44 (0) 203 194 0544 US participants:                   +1 855 269 2604

All Q3 material can be downloaded on tryg.com/dk/Investor/Downloads shortly after the time of release.