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Tryg A/S – Annual report 2019

Tryg’s Supervisory Board has today approved the annual report 2019.

Premium growth of 17.1% or 6.1% excluding Alka. Technical result of DKK 3,237m (DKK 2,766m) impacted positively by the growth in the private segment driven, among other things, by the highest ever customer satisfaction with a TNPS of 68 and an all-time high retention. The overall result was positively impacted by the inclusion of Alka and related synergies, a continuous improvement in the underlying claims ratio and a low level of large and weather claims. Investment income of DKK 579m (DKK -332m) driven by higher equity market returns. Profit before tax of DKK 3,628m (DKK 2,262m). Quarterly dividend of DKK 1.70 per share, supporting TryghedsGruppen’s member bonus. Extraordinary dividend of DKK 1.65 per share. Solvency ratio of 162.

Financial highlights 201
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  • Premium growth of 17.1% or 6.1% (4.1%) excluding Alka in local currencies
  • Technical result of DKK 3,237m (DKK 2,766m)
  • Expense ratio of 14.2 (14.4)
  • Combined ratio of 85.1 (85.1)
  • Return on free investments portfolio of DKK 857m (DKK -33m)
  • Total investment return of DKK 579m (DKK -332m)
  • Profit before tax of DKK 3,628m (DKK 2,262m)
  • Full year dividend of DKK 6.80 per share and extraordinary dividend of 1.65 per share
  • Solvency ratio of 162

Financial highlights Q4 2019

  • Premium growth of 10.4% or 5.6% (4.5%) excluding Alka in local currencies
  • Technical result of DKK 762m (DKK 596m)
  • Underlying claims ratio (Private and Group) improved by 0.5 and 0.5 percentage points
  • Expense ratio of 14.6 (15.6)
  • Combined ratio of 86.1 (88.2)
  • Return on free investments portfolio of DKK 226m (DKK -198m)
  • Total investment return of DKK 198m (DKK -330m)
  • Profit before tax of DKK 940m (DKK 149m)
  • Q4 dividend of DKK 1.70 per share

Customer highlights Q4 2019

  • TNPS of 68 (67)
  • Number of products per customer 3.8 (3.8)
  • TryghedsGruppen paid a member bonus of 8% for the fourth year in a row
  • In Q4, awareness of TryghedsGruppen's member bonus amongst non-customers increased to 28%, up by 27% compared with the same period prior year


Statement by Group CEO Morten Hübbe:

We deliver a strong technical result of DKK 3,237m driven by the Private business segments in Denmark and Norway, Alka and related synergies and a lower level of weather and large claims.

Premiums growth was 17.1% or 6.1% excluding Alka – primarily driven by the Private business segment in Denmark and Norway. Customer satisfaction is at the highest level, and we continue to see a record high level of customer renewals which underlines the increasing customer loyalty in Tryg. In 2019, 1.3 million Alka and Tryg customers, or every fourth Dane, has been paid a bonus by TryghedsGruppen equaling to 8% of premiums paid in 2018.

The integration of Tryg and Alka is progressing very well, we continue to learn a lot from each other in areas such as online sales, claims procurement and data usage.

We continue to work on profitability in the Corporate segment across all countries. A new management in the Corporate units is now in place with increased focus on strategy and commercial execution, an improved use of data will also help lifting profitability segment in 2020 and longer term.

Conference call

Tryg hosts a conference call today at 10:30 CET. CEO Morten Hübbe and CFO Barbara Plucnar Jensen 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 78 15 01 07

UK participants:                   +44 (0) 333 300 9261

US participants:                   +1 833 526 8381

The annual report material can be downloaded on https://tryg.com/en/downloads-2019 shortly after the time of release.

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