Q1 2020 results

Investor presentation

Contents

2

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. Forward-

looking 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.

• Highlights Q1 2020 3

• Premiums and portfolio 9

• Claims and expenses 13

• Investment, capital and targets 19

• Roadshows & Conferences 27

• Background material 28

• Appendix 46

•Technical result of DKK 672m including a net negative of DKK -40m from COVID 19

•Investment income of DKK -980m, losses on both free and match portfolio following unprecedented capital markets

turbulence in March

•Solvency ratio of 159 at the end of Q1 while FSA has approved new internal model on April 20

Pre-tax profit of DKK -372m (DKK 930m) driven by:

•Covid-19 travel insurance claims totaled DKK -115m, partly offset by lower frequencies in other lines, net negative -40m

•Weather claims below normal at 2.0%, large claims at 2.4% (normal level), run-off result at 6.4%

•Private underlying claims ratio 40bps better than Q1 19, Group underlying claims ratio 50bps better than Q1 19

•Expense ratio of 14.1 (14.0) - guidance for 2020 unchanged

•“FY 2020 underlying claims ratio expected to be better than 2019”

Technical result of DKK 672m (DKK 626m)

•Q1 investment result characterised by extreme volatility and highly negative financial markets following Covid-19 outbreak

•Free portfolio returned approx -7% in the quarter, match portfolio also reported a loss

Investment income of DKK -980m (DKK 353m)

•Tryghedsgruppen Board of Representatives recently approved the member bonus for the fifth consecutive year. The bonus

corresponds to 8% of premiums paid for 2019 as per previous years.

TryghedsGruppen approved members’ bonus for 2020

Financial highlights Q1 2020

3

- Technical result of DKK 672m including a net negative impact of DKK -40m from COVID-19- Investment income of DKK -980m, unprecedented capital markets turmoil in March following COVID-19 outbreak- As mentioned on March 27, Tryg moves to FY dividend decision (as opposed to quarterly), Solvency ratio of 159

Pre-tax profit (DKKm)

Combined ratio

Expense ratio

-372

930

Q1 2020 Q1 2019

Q1 2020 Q1 2019

88.0 88.0

Q1 2019Q1 2020

14.1 14.0

4

• Transactional Net Promoter Score (TNPS) of 69 (67)

• Retention improved in general

• Number of products per customer increased

• TryghedsGruppen has approved the payment of an 8% member bonus for the fifth year in a row

• Awareness of Customer Bonus improved, especially for non-customers, it was 30% against 20% in Q1 2019

Number of products per customer

TNPS

Customer highlights Q1 2020

3.8

Q1 2019Q1 2020

4.0

Target 2020

3.9

69

67

70

Target 2020Q1 2020 Q1 2019

Group (DKKm)

Technical result higher than Q1 2019

5

Q1 2020 Q1 2019

Q1 2020 Q1 2019 Q1 2019Q1 2020

Q1 2020 Q1 2019

Private, DK & NO (DKKm)* Commercial, DK & NO (DKKm)*

Corporate (DKKm)* Sweden (DKKm)*

Q1 2020 Q1 2019

• Private – Run-off Q1 2020: DKK 32m or 1.0% (DKK 107m or 3.7%)

• Commercial – Run-off Q1 2020: DKK 96m or 8.6% (DKK 95m or 9.0%)

• Corporate – Run-off Q1 2020: DKK 177m or 18.3% (DKK 140m or 14.5%)

• Sweden – Run-off Q1 2020: DKK 53m or 15.1% (DKK 36m or 10.5%)

Customers Employees Travel Claims frequencies

COVID-19, helicopter view

Handling more than 30.000 travel claims related to COVID-19

6

15%

35%

20%15-20%

HealthMotor Contents Accident

Danish business, March 2020

Increased customer satisfaction during COVID-19 and high level of customer contacts

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

Other COVID-1997

98

99

100

101

102

103

104

105

106

107

108

109

110

MarchFebruary April

Claims DK

Claims NO

Travel insurance development from January – March 2020 on a daily basis

Decreasing claims frequency in different lines of business due to lock-down and lower economic activity

Targeted benefits 2019-2021

• Full run rate synergies impact in 2021 of DKK 300m

• 25% impact expected in 2019, 50% impact in 2020

• DKK 42m achieved in Q1 2020

• DKK 17m from “lower” claims using Tryg procurement for Alka

• DKK 15m from cost benefits especially related to staff functions

• DKK 10m revenue synergies through cross selling to Alka customers using Tryg agent model

7

Claims Revenue optimisation

and commercial best

practice

Cost optimisation Label

Realised benefits and targeted benefits 2021 (DKKm)Alka merger benefits by category 2021 (DKKm)

2019 2020 2021

Alka synergies status update

39

Claims Cost Total synergiesRevenue

62

31

132

10

Realised synergies FY2019

Realised synergies Q1 2020

Targeted synergies 2021

Value of Tryg since IPO

Strong focus on shareholders’ remuneration

8

Aim for a nominal stable increasing ordinary dividend (annual)

High profitability and low growth implies limited increase in capital requirement

Shareholders’ remuneration

Shareholder remuneration since 2012

Share price performance since IPO

October 2005 (IPO) Value of Tryg today Dividend and buy

back since IPO

Tryg moves to FY dividend decision

for 2020

-200,00

-100,00

0,00

100,00

200,00

300,00

400,00

500,00

600,00

700,00

800,00

900,00

Tryg Euro insurance index

2.60

5.20

20192014

3.20

8.45

2012

3.40

5.40

2013

3.50

5.80

3.50

6.00

2015

6.20

1.65

2016

6.40

3.30

2017 2018

6.80

Extraordinary dividend

Extraordinary buy back

Ordinary dividend

Premiums and portfolio

• Group premiums were up 8.9% in local

currencies

• Private lines reported a 10.4% growth,

impacted by much higher portfolio start 2020

than start 2019, cross selling, strong partner

agreements and independent agents

• Commercial growth was 6.8% impacted by

price initiatives for larger commercial clients

• Corporate growth 4.9% - high acceptance of

price hikes (avg. 10%) in Denmark while top-

line fall in Norway due to price hikes (avg.

12%)

• Sweden increased by 4.9% partly driven by

price adjustments for motor insurance

10

DKKm Q1 2020 Q1 2019Local currencies

Q1 2020Local currencies

Q1 2019

Private 3,162 2,897 10.4% 30.9%

Commercial 1.112 1,050 6.8% 10.3%

Corporate 968 966 4.9% 0.5%

Sweden 353 343 4.9% 10.2%

Group 5,595 5,228 8.9% 19.2%

Group premiums up 8.9% in Q1

Q1 2020 Q1 2019 ex Alka

Gross earned premums development (local currencies)

11

• DK: 2.4% (Q4 2.3%) positive development reflects price adjustments

• NO: 1.5% (Q4 1.6%) positive development reflects underlying price adjustments. Avg Motor price is higher in Norway primarily reflecting different type of cars

• DK: 2.1% (Q4 1.6%) positive developmentreflects price adjustments

• NO: 2.0% (Q4 2.4%) positive developmentreflects primarily price adjustments

Private - average prices

Q1

15

Q1

11

Q3

11

Q3

14

Q1

14

Q1

13

Q1

12

Q3

12

Q3

13

Q1

18

Q3

15

Q1

16

Q3

16

Q1

17

Q3

17

Q3

18

Q1

19

Q3

19

Q1

20

Average price Denmark Norway

House insurance 5,200 6,200

Q1

11

Q3

11

Q1

12

Q3

12

Q1

13

Q3

13

Q1

20

Q1

14

Q1

15

Q3

14

Q3

15

Q1

16

Q1

19

Q3

16

Q1

17

Q3

17

Q1

18

Q3

18

Q3

19

DK NO

DK NO

Mo

tor in

su

ran

ce

Ho

use in

su

ran

ce

Average price (index 2011 = 100)

Average price Denmark Norway

Motor insurance 4,700 6,000

Average price (index 2011 = 100)

Customer retention in general improved

12

• DK: customer retention at 88.5% (88.2%) highest level in last two years

• NO: customer retention at 89.2% (87.9%) showing an improved trend

• DK: customer retention stable at 91.4% (91.4%)

• NO: customer retention up to 87.2% (86.7%) showing an improved trend

Q3

13

Q1

13

Q1

17

Q1

14

Q3

14

Q1

20

Q3

17

Q1

15

Q3

15

Q1

16

Q3

16

Q1

18

Q3

18

Q1

19

Q3

19

DK NO

Q1

13

Q3

13

Q1

14

Q3

14

Q3

17

Q1

15

Q3

15

Q1

16

Q1

17

Q3

16

Q3

19

Q1

18

Q3

18

Q1

19

Q1

20

DK NO

Priv

ate

Co

mm

ercia

l

Claims and expenses

Claims ratio, net (Sweden)

Claims ratio, net (Corporate)

Claims ratio, net (Commercial DK & NO)

Group underlying claims ratio at 75.5, 50bps better than Q1 2019

Private underlying claims ratio at 73.9, 40bps better than Q1 2019

“Expected FY 2020 underlying claims ratio better than FY 2020”

Going forward it is expected a slightly lower improvement in Private offset by

more improvements in particular in the Corporate segment

14* Underlying development is adjusted for large claims, weather claims, run-off and interest.

Underlying claims ratio improving

Group underlying claims ratio

Private underlying claims ratio

Q1

19

Q3

16

Q1

16

Q3

19

Q3

17

Q1

17

Q2

16

Q4

17

Q4

16

Q3

18

Q1

18

Q2

17

Q2

18

Q4

18

Q2

19

Q4

19

Q1

20

Q1

16

Q2

16

Q2

17

Q3

16

Q4

16

Q3

17

Q1

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

Q1

19

Q2

19

Q3

19

Q4

19

Q1

20

Q4 19Q1 19 Q2 19 Q3 19 Q1 20

0.5

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

0.4

Q4

17

Q3

18

Q1

16

Q2

16

Q2

17

Q3

16

Q3

19

Q3

17

Q2

19

Q4

16

Q1

17

Q1

18

Q2

18

Q4

18

Q1

19

Q4

19

Q1

20

COVID-19 from a claims perspective

Travel insurance

• Travel insurance premiums were DKK 889m at end of 2019

• Covid-19 related travel claims were DKK 255m gross in Q1 and DKK 115m net after reinsurance.

• Tryg’s own retention for future possible Covid-19 outbreak is well below the DKK100m. Coverage would be provided only after Nordic authorities change travel recommendation (Nordic authorities currently have the entire world on high alert due to Covid-19)

• Death coverage for employees in Norwegian companies. In Alka the coverage is connected to union membership (former owners of Alka). Coverage is only for customers in working age.

• Covid-19 mortality rates are relatively low so far in Denmark and Norway in general and the impact on Tryg has been very low.

15

• Credit & Surety business in the Nordic market and in five European countries. More than 80% of premiums from Scandinavia, this becomes more than 90% while including Finland.

• Business model can be impacted by rapid changes in the economic cycle. This is the reason why this business is heavily reinsured.

• On average reinsurance covers approximately 80% of the exposures but in some of the largest exposure (DKK 500m +) reinsurance is more than 90%

• During the financial crisis Tryg Garanti reported a COR of 100 only in 2011, otherwise the COR was always well below that

• Tryg Garanti has unlimited reinsurance coverage

Group life

Tryg Garanti

Business interruption

• Business interruption coverage offered as part of Commercial Property

• A physical damage is required to trigger a claim

• Epidemics cover in Denmark and Norway is not part of standard coverage, a physical damage is needed to trigger a claim. In Sweden epidemics coverage is more standard in the policies but Tryg’s exposure is low.

• Reinsurance coverage implies a standard net retention of DKK 100m per large claim

COVID-19 from a claims perspective

• Lock-down since mid March in Scandinavia (firstly in Denmark and Norway) has driven a significant reduction in frequencies.

• The reduction in frequencies has happened gradually meaning that the impact was higher in the second week of lock-down compared to first week of lock-down.

• Motor frequencies in Denmark down 15% in March

• Contrary to other European countries no “hard” restrictions on movements have been ordered.

• Gradual re-opening of societies in DK and NOK already after Easter.

• Contents insurance premiums approximately DKK 825m in the Private segment

• Content frequencies in Denmark down 15% in March

• Burglaries clearly down but at the same time electronics claims have been higher as customers are using all IT gadgets more (PC, Ipads, Iphones etc.)

Motor insurance

• Accident insurance premiums approximately DKK 2.3bn at end of 2019

• Accident frequencies in Denmark down 20% in March driven mainly by customer driven movements

• Less sports related injuries and general injuries as well.

16

Accident insurance Content insurance

Large claims, net DKKm Weather claims, net DKKm

Claims reserves discounting rate

17

Expected annual

level 2019: DKK 600m

Expected annual

level 2019: DKK 550m

201820172014 Q1 20192015 2016 Q1 20202019

550

20192016 Q1 2020

600

2014 20172015 2018 Q1 2019

Q1 2019201920172015 2016 2018 Q1 2020 Q1 201920162015 Q1 20202017 20192018

Large claims, weather claims and run-off

Run-off net, effect on combined ratio

18

• Efficiency initiatives in 2017 brought down overall costs

• Investments in digitalisation will somewhat offset further efficiency gains

• Expense ratio target for 2020 around 14%

• Alka synergies of DKK 15m helped overall costs level

• Number of employees increased

• Increase in distribution power in general

• Guarantee expansion in Europe

Expense ratio of 14.1 in line with 2020 target

Private Commercial Corporate Sweden

Q1 2020

Q1 2019

2011 2012 2017201620142013 2015 2018 2019 Q1 2020

2015 2016 2017 2018 2019 Q1 2019 Q1 2020

Expense ratio by business areas FTE development

Expense ratio

Investment, capital and targets

Total investments

DKK 37.7bn

Match portfolio

DKK 27.2bn

Freeportfolio

DKK 10.5bn

Splitting up the portfolio ‘risk-wise’

Denmark

DKKm

Norway Sweden

Match portfolio split Free portfolio split

High yield

Inv. Property

Inflation linked bonds

Equities

Emerging markets

Bonds

Investment grade

Investments – split in match & free portfolio

20

Equity portfolio split by sectorsCorporate bonds portfolio (DKK 3.2 bn) rating split

Investment return – low risk remains key

21

Key figures investments (DKKm) Q1 2020 Q1 2019 2019

Free portfolio -713 373 857

Match portfolio -203 51 -42

Other financial income and expenses-64 -71 -236

Total investment return -980 353 579

2%

0%

COMMUNICATION SERVICES

INDUSTRIALS

REAL ESTATE

INFORMATION TECHNOLOGY

HEALTH CARE

FINANCIALS

CONSUMER DISCRETIONARY

CONSUMER STAPLES

MATERIALS

ENERGY

UTILITIES

OTHER

AAA

AA

BB

BBB

A

B

CCC

Other

• Total net investment result of DKK -980m in Q1 at the end of probably the most turbulent quarter in history.

• The free portfolio returned approximately -7% dragged down by equities (-20%) but also losses on nearly all assets classes leaving aside covered bonds

• Match portfolio also reported an unusual loss of DKK -203m driven both by the regulatory deviation and the performance part. The regulatory deviation was impacted by the rate hike from the Danish central bank not mirrored by a similar move in the discounting curve while the performance was impacted by widening Nordic covered bonds spreads

Group fixed income portfolio rating split

1%2%

AAA

AA

A

BBB

BB

B or lower

Solvency position Q1 2020

22

6.500

8.500

7.500

7.000

8.000

Results

Q1 2020

Intangible

assets

Own funds

Q1 2020

Own funds

Q4 2019

-442-291

Subordinated

debt

-89

Miscellaneous

7.506

8.119

5.500

5.000

2.500

3.000

3.500

4.500

4.000

SCR Q4 2019 Other

-254

Market

-48

4.719

SCR Q1 2020

5.021

• Solvency ratio based on the Partial Internal Model is 159 (Q4 2019: 162).

• Own Funds (OF) is primarily impacted by

• Result Q1 2020 of DKK -442m

• Lower subordinated loans (in DKK) following sharp currencies drop (both NOK and SEK)

SCR is primarily impacted by

• Lower capital charge for equities following large fall in equity markets at Q1

• Currency moves also drive a lower SCR

• Based on Solvency II Standard Formula the solvency ratio is 125 (Q4 2019: 131).

• Standard Formula SCR DKK 6,026m

• On April 20 the Danish FSA approved Tryg’s updated partial internal model. The model now incorporates the Swedish segment and therefore it has a higher diversification benefit, additionally some model refinement has led to marginally lower capital charges for the non-life risks. The SCR is expected to be approximately DKK 400m lower compared to Q1.

Own funds walk

Solvency capital requirement walk

Capital Tiers as % of SCR

Solvency ratio development

Capital and solvency ratio development

23

• Tier 1 and Tier 2 capacity virtually fully utilized (leaving aside

potential quarterly swings)

• The Danish FSA has explained that a ratio lower than

125 (partially internal model) would result in increased

surveillance.

• Solvency ratio development mostly a function of net profits

(+) and dividends (-). Underlying development should remain

pretty stable.

• The move to FY dividend decision for 2020 (as opposed to

quarterly) should drive an increase in the solvency ratio at Q2

and Q3 (assuming normal business and capital markets

development) before the full-year dividend decision

2.335

4.179

Q1 2020 DKKm

Tier 2

ATier 1

CETier 1

Q1 2020 % of SCR

49%

89%

21%

Q4 2019Q2 2019Q1 2019 Q3 2019 Q1 2020

Solvency ratio sensitivities

24

• 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

• Interest rate risk is very low as function of our matching strategy

159%162%

153%

163%

150%

167%

151%

158%160%

147%

171%

158% 160% 159% 160% 162%

156% 157%161%

130%

140%

150%

160%

170%

180%

2020 Equity Equity Property Interest Spread

(Cov.)

Spread

(Corp.)

Spread

(Gov.)

NOK/DKK SEK/DKK

Targets and outlook

25

✓ New financial targets announced at 2017 CMD

✓ Members’ bonus of 8% in June 2019.

✓ Price increases to offset claims inflation

Customer targets, 2020

TNPS 70

No. of products per customer +10 %

ROE after tax (%)

✓ 2020 topline growth above GDP level

✓ 2020 normalised tax rate 22-23%

✓ Alka acquisition will result in annual depreciation of customer relations

of DKK127m within a 5 to 7 years period. Solvency position (hence

dividend capacity) not impacted by the P&L charge

ROE as reported

Technical resultDKK 3.3bn

Combined ratio≤ 86

Expense ratio

~ 14

ROE after tax

≥ 21%

Financial targets, 2020

Target post Alka acquisition

* ROE target ≥ 21% suspended for the FY2020 due to extremely negative capital markets development in Q1

*

26

”Do you know the only thing that gives me pleasure?

It’s to see my dividends coming in.”

John D. Rockefeller

It is important to know your investment case

Date Place Participants from Tryg Arranged by

21/04/2020 US virtual roadshowJohan Kirstein Brammer, CCO

Gianandrea Roberti, IRODanske Markets

23/04/2020 London virtual roadshowBarbara Plucnar Jensen, CFO

Gianandrea Roberti, IROAutonomous

05/05/2020 Frankfurt virtual roadshowBarbara Plucnar Jensen, CFO

Gianandrea Roberti, IROSEB

07/05/2020 Paris virtual roadshowBarbara Plucnar Jensen, CFO

Peter Brondt, IR ManagerSEB

14/05/2020 Bergen virtual roadshowEspen Opedal, Head of Tryg Norway

Peter Brondt, IR ManagerDNB

27/05/2020 Toronto virtual roadshowLars Bonde, COO

Peter Brondt, IR ManagerExane BNP Paribas

28/05/2020 Montreal virtual roadshow Lars Bonde, COO

Peter Brondt, IR Manager

DNB

27

Q1 roadshows & conferences

Background material

Claims Excellence

DKK 600m in claims cost reduction

Digital Empowerment

of Customers

DKK 100mSTP on claims: 50%Self-service: 70%

Tryg 2018 – 2020:

Strengthening the core, while embracing the future Product & Service

Innovation

+DKK 1bn in new products by 2020+

Distribution Efficiency

DKK 150m in technical result impact

Financial targets 2020

• Technical result: DKK 3.3bn

• Combined ratio: ≤86

• Expense ratio: ~14

• ROE: ≥21%

Customer targets 2020

• TNPS: 70

• Number of products per customer: +10%

Dividend policy

• Targeting a nominal, stable and increasing dividend

• Extraordinary dividend to further adjust the capital structure

Long term profitable growth and attractive shareholder value creation

29

Alka acquisition

DKK 300m in synergies with full run-rate impact in 2021

Tryg’s equity story – a leading non-life insurer

Why invest in Tryg?

30

Pre-tax result by division (YE 2018 data)

Tryg is a dividend stock (DKK)Motor combined ratios Nordics vs international

Total yield (dividend and buy backs / market cap) at year end

High insurance penetration in the Nordics

Premiums per capita (USD), 2017

1.519

Denmark Norway UKGermany France Italy

1.296

1.557

1.224

Alm. BrandTryg GjensidigeTopdanmark Sampo Storebrand

Other

Non-life

Life

Banking

20112010 20152012 20142013

UK

Norway

Germany

Italy

Denmark

201420132012

9.2%

6.6%

201820172015 2016 2019

4.5%

8.3%

7.6%

6.9%

6.2%

4.0%

Total yield

DPS (right axis)

Gross premium split by products 2019

Gross premium split by products 2019

Tryg at a glance

31

• Tryg goes back to 18th century.

• Very strong brand position especially in Denmark.

• Non-life insurance in Denmark, Norway and Sweden.

• Approx. 80% retail business.Norway

Market position: #3Market share: 13.3%

CR in Q1 2020: 101.4 %

SwedenMarket position: #5Market share: 3.3%

CR in Q1 2020: 84.8 %

DenmarkMarket position: #1Market share: 22.5%

CR in Q1 2020: 82.1 %

Retention rate - Private

Retention rate - Commercial

4.0%

5.0%

Workers’ comp

Motor

Liability

Health & accident

Fire & property - private

Fire & property - comm.

Other

7.0%

Sweden

Private

Commercial

Corporate

Q1

13

Q2

13

Q3

14

Q3

13

Q1

14

Q4

13

Q1

17

Q2

14

Q4

14

Q4

19

Q1

15

Q2

15

Q2

16

Q3

15

Q4

15

Q1

16

Q3

16

Q4

16

Q2

17

Q1

18

Q3

17

Q4

17

Q2

18

Q3

18

Q2

19

Q4

18

Q1

19

Q3

19

Q1

20

DK NO

Q4

14

Q1

13

Q2

14

Q1

14

Q2

13

Q3

13

Q4

13

Q3

14

Q1

15

Q3

15

Q2

15

Q4

15

Q1

16

Q2

16

Q3

18

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q4

18

Q1

19

Q2

19

Q3

19

Q4

19

Q1

20

NODK

Run-off net by products Q1 2020

Gross claims reserve by products 2019Gross premium by products 2019

Premiums and reserves by lines of business

32

4.0%

5.0%

Workers’ comp

Motor

Fire & property - private

Liability

Health & accident

Fire & property - comm.

Other

5.0%

Liability

Motor

Health & accident

Workers’ comp

Fire & property - private

Fire & property - comm.

Other

5.2%

2.0% Motor

Workers’ comp

Health & accident

Liability

Fire & property - private

Fire & property - comm.

Other

Run-off net by products Q1 2019

-3.0%

Health & accident

Motor

Workers’ comp

Fire & property - private

Liability

Fire & property - comm.

Other

DK: Gross premium by products 2019

Gross premium split by geography

33

Liability

Motor

Workers comp

Fire & property - private

Health and accident

Other

Fire and property comm

Tourist assistance

SE: Gross premium by products 2019

Motor

Fire and property comm

Health and accident

Fire & property - private

Liability

Other

NO: Gross premium by products 2019 Run-off net by products 2019

3%

Motor

Liability

Fire & property - private

Health and accident

Workers comp

Tourist assistance

Fire and property comm

Other

1%

Motor

Fire & property - private

Workers comp

Health and accident

Liability

Fire and property comm

Other

The run-off cycle

34

• 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.

18.000

2.000

2.000

-20.000

3 years

Claims estimate: -18,000

Run-off: +2,000

Claims buffer: -2,000

Run-off development

We assessed the claimat DKK 18,000 but

reserve for DKK 20,000

35

20102007 200920082005 20112006 2012 2013 2014 2015 2016 2017 2018 2019 Since

IPO

10Y

avg.

5Y avg.

Combined ratio development

36

Percentage

Nordic (EUR 26.3bn as at Q4 2018)

4.7%

Tryg

Topdanmark

If

Gjensidige

Codan

Other

Länsforsikringar

Denmark (DKK 56.7bn/EUR 7.6bn as at Q1 2019)

5.5%

Codan

Tryg

Gjensidige

If

Topdanmark

LB Forsikring

Alm. Brand

GF Forsikring

Other

Sweden (SEK 87.9bn/EUR 8.3bn as at Q4 2019)

3.3%

1.9%

30.2%

Moderna (Tryg)

Länsforsikringar

If

Codan

Gjensidige

Folksam

Other

Norway (NOK 62.8bn/EUR 6.4bn as at Q4 2019)

3.5%

15.9%

3.1%2.2%

2.6%

Tryg

Eika

IF

Gjensidige

Fremtind

Storebrand

Frende

Codan

Protector

Other

Fremtind excluding DnB Liv and Sparebank1 Liv = 14.1

Structure of the Nordic insurance market

37

DK

DK

NO

NO

SE

SE

4%

Customer services

Nordea

Affinity

Outbound

Online DK

Sales agents

Danske Bank9%

Web

Franchise

Customer service

Outbound

Enter

Nordea

7%

7%

Own sales

Web and external sales

Other

Atlantica/Bil sport/MCNODK

Brokers

Customer centre

Sales agents

Partner

Customer centre

Sales agents

Franchises

Brokers

Brokers

Own sales

Brokers

Own sales

100%

Brokers

Priv

ate

Co

mm

ercia

lC

orp

orate

Distribution of new sales 2019

Things that you may not know

38

• 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.

Things that you may not remember

39

• 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.

40

• 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

Danish customers completely and strongly agree

Source: IBM Institute for Business Value and I.VW University of St. Gallen 2007 Insurance Study

IBM study from 2007, probably little has changed

Population development in Norway in ‘1,000

Population development in Denmark in ‘1,000

DK 9%

NO 19%

41

Population growth (2000-2019)

Organisational and remuneration structure

42

Organisation chart

Remuneration structure

The Executive Board are remunerated according to Tryg’s remuneration policy:

• Base salary

• Pensiono 25% of the base salary

• Variable pay

o Up to 50% of the base salary including pension

o 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

CEOMorten Hübbe

CFOBarbara Plucnar

Jensen

COOLars Bonde

CCOJohan Kirstein

Brammer

Private DK

Commercial DK

Corporate DK & Tryg Garanti

Claims DK

Private NO

Commercial NO

Corporate NO

Claims NO

Private SE & Affinity

Corporate SE

Corporate Responsibility in Tryg

43

Corporate Responsibility contributes to long-term value creation

Corporate Responsibility BoardChair: CFO, Barbara Plucnar Jensen

Procurement/ Sourcing HR Facilities Investments

Claims Private Commercial Corporate

Legal/ Compliance

Corporate Responsibility team

CommunicationsInvestor Relations

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*.

• Tryg has published an independent Corporate Responsibility report 2019 on tryg.com

• Our four strategic focus areas are: Actively creating peace of mind, Climate & environment, Responsible workplace and Business etchics.

• Tryg has established a Corporate Responsibility Board to ensure governance throughout the organisation.

44

Corporate Responsibility in TrygUN Sustainable Development Goals

Tryg has a direct and indirect impact on the 17 SDGs.

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).

Strong opportunity

Low opportunity

Indirect impact

Direct impact

41% women in management positions in 2020

2%reduction in carbon emissions in 2020

Key figures 2019 and Consensus 2019-2021

DKKm 2019A 2020 2021 2022

Gross premium income 21,741 22,148 22,610 23,073

Technical result 3,237 3,356 3,444 3,507

Investment income, net 579 -824 128 126

Pre-tax profit 3,628 2,358 3,403 3,453

Net income 2,843 1,757 2,648 2,690

Combined ratio 85.1 84.7% 84.8% 84.8%

Expense ratio 14.2 14.0% 14.0% 14.0%

Ordinary dividend per share 6.8 6.35 7.14 7.31

Extraordinary dividend per share 1.65 0.29 1.41 1.61

45

Based on 15 estimates ahead of Q1 2020

Consensus

AppendixFollow us on Twitter: @TrygIR

Claims ratio, net of reinsurance

Combined ratio

Group

47

Gross premiums

%DKKm %

%

%

Gross premiums

Expense ratio

Claims ratio, net of reinsurance

Combined ratioGross premiums

Expense ratio

Private

48

%DKKm

* Including two months Alka

Claims ratio, net of reinsurance

Combined ratioGross premiums

Expense ratio

Commercial*

49

%DKKm

* Less than 100 employees or less than DKK 100m turnover

Claims ratio, net of reinsurance

Combined ratioGross premiums

Expense ratio

Corporate*

50

%DKKm

* More than 100 employees or more than DKK 100m turnover

Claims ratio, net of reinsurance

Combined ratioGross premiums

Expense ratio

Sweden

51

%DKKm

Norway

SwedenDenmark

52

Geographical combined ratio

Corporate history

53

• 1728, Copenhagen experienced what was later to be known as the Copenhagen Fire of 1728. 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 1728

• 1880, 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 14

• 2006, 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 5

• 2018, Tryg received the final approval of the Alka acquisition from the Danish authorities

Sweden

% 2020E 2021E

GDP Growth (mainland) 0.8 1.8

Inflation 1.3 1.4

Unemployment 7.3 7.4

Current account balance in % of GDP

4.9 5.3

Budget balance in % of GDP -0.1 -0.4

Public debt in % of GDP 34.3 33.5

Norway

% 2020E 2021E

GDP Growth 1.8 1.6

Inflation 2.1 1.9

Unemployment 3.5 3.5

Current account balance in % of GDP

5.9 6.8

Budget balance in % of GDP 6.7 6.1

Public debt in % of GDP 0.0 0.0

Economic key figures

54

Source: Economic Outlook, Nordea Markets, January 2020

Denmark

% 2020E 2021E

GDP Growth 1.5 1.5

Inflation 1.2 1.4

Unemployment 3.8 3.9

Current account balance in % of GDP

8.8 8.1

Budget balance in % of GDP 0.6 -0.2

Public debt in % of GDP 33.7 33.6