The technical result declined by DKK 190m to DKK 188m. Weather-related claims were DKK 133m higher in Q4 2015 than in Q4 2014, primarily impacted by storm Gorm, which generated claims of around DKK 120m net of reinsurance.
The risk result declined to DKK 19m (2014: DKK 25m) mainly due to a deteriorated claims trend for disability cover.
The equity portfolios are well diversified with no large individual positions. The composition of the portfolios is based on OMXCCAP for Danish equities (representing around 30% of the portfolio at 31 December 2015) and MSCI World in the original currency for foreign equities.
Parent company etc. The parent company, Topdanmark, does not perform any independent activities. The result of the parent company etc. includes the results of subsidiaries, excluding the insurance business (primarily Topdanmark Kapitalforvaltning, the asset management company) and finance costs.
In this light, it is Topdanmark's opinion that the Company's future annual results will, with a very high probability, be positive even in the event of, for example, another collapse in the financial markets as in 2008.
• An expected profit can be recognised on non-life insurance policies written for the remaining period of cover.
Besides salary policy, the remuneration policy also includes Topdanmark's general guidelines for performance-related pay, its pension policy and its guidelines for the granting of severance pay. The remuneration policy covers Topdanmark's Board of Directors, Executive Board, significant risk takers and, as provided by legislation, employees involved in control functions and audit work. If specifically stated, Topdanmark's remuneration policy also covers its executive team, comprising a number of the heads of business sectors and administrative departments ("the Friday Team") and certain other employees, at the discretion of the Board of Directors. The remuneration policy etc., as adopted by the Annual General Meeting, is available on www.topdanmark.com → Investor Relations → Corporate Governance → Remuneration structure.
Christian Sagild CEO of Topdanmark A/S. DOB 1959, joined Topdanmark in 1996, joined Topdanmark's Executive Board on 1 January 2006.
Member of the Boards of Directors of: • The Danish Insurance Association. • Ambu A/S. • Gobike A/S. • Bikeshare Danmark A/S.
Technical profit on non-life insurance 1,321 1,169 Technical profit on life insurance 32 19
Average value of claim (DKK '000) 50 43 33 46 5 4 liability
Revaluations of financial assets and liabilities at fair value through profit or loss 2,465 (711) Of which revaluation of derivatives transferred to claims incurred 211 (12) Investment properties (11) 87 Shares in associated companies 51 1 Provisions for claims and benefits (663) 195 Reinsurers' share 3 0 Provisions for unearned premiums (1) 0 Liquid funds 1 35
Reinsurers' share of the provisions for claims at 31 December 648 584
Customers' share of technical basis for risk allowance 811 433 Share of technical basis for risk allowance allocated to shareholders' equity 77 37 Insurance technical result 888 470 The allocation of the technical basis for risk allowance to policyholders is in accordance with the executive order on contribution principle.
Note 33. Auditors' fee Fee to the auditors elected at the Annual General Meeting Deloitte: Fee for statutory audit of the annual accounts 4 4 Fee for other assurance engagements 0 0 Fee for tax advice 0 0 Fee for services, other than audit work* 4 0 *In 2014, primarily fee for one-off services related to the acquisition of an IT system in the life insurance group. The Group has an internal audit department which carries out most of the audit work.
Non-life: Topdanmark Forsikring A/S Ballerup Insurance TDP.0007 A/S Ballerup Property Topdanmark EDB A/S Ballerup Internal IT services E. & G. Business Holding A/S Ballerup Holding Topdanmark Holding S.A. Luxembourg Holding Risk & Insurance Services S.A. Luxembourg Administration TDLII.0087 A/S Ballerup Investment
Non-life insurance Underwriting risk Acceptance policy Topdanmark's acceptance policy is based on a desire to make a profit from both products and customers. Topdanmark varies the pricing of its products depending on the relevant risk criteria and the costs of administering those products.
The sufficiency of the provisions is tested in key lines by calculating the provisions using alternative models as well, and then comparing the compensation with information from external sources, primarily statistical material from the National Board of Industrial Injuries and the Danish Road Sector / Road Directorate.
Besides the investments in interest-bearing assets, the interest rate risk on 4.5% guaranteed benefits is hedged by EURO CMS floors with a strike rate of 5%, while supplementary hedging by standard swaptions have been bought for benefits guaranteed lower interest rates.
In order to reduce the risk of inflation within workers' compensation and illness / accident insurance Topdanmark uses index-linked bonds and derivatives hedging a significant proportion of the expected cash flows.
Life insurance provisions Measurement of the life insurance provisions is based on a number of actuarial estimates of disability, lifetime etc., which may have a significant effect on the size of the life insurance provisions.
Profit for the year 1,558 1,132 Other comprehensive income in affiliated companies (10) 1 Other comprehensive income (10) 1 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 1,548 1,133
The annual financial statements for the parent company Topdanmark A/S have been prepared in accordance with the Danish Financial Business Act, including the executive order issued by the Danish Financial Supervisory Authority (DFSA) on financial reports for insurance companies and multi-employer occupational pension funds (nationwide, occupational pension funds specific to Denmark).
Independent auditor’s reports To the shareholders of Topdanmark A/S Report on the consolidated financial statements and annual financial statements We have audited the consolidated financial statements and annual financial statements of Topdanmark A/S for the financial year 1 January to 31 December 2015, which comprise the income statement, statement of comprehensive income, balance sheet, statement of changes in equity and notes, including the accounting policies, for the Group as well as the parent company, and including cash flow statement for the Group. The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the EU and Danish disclosure requirements for listed financial services companies. The annual financial statements have been prepared in accordance with the Danish Financial Business Act. Management’s responsibility for the consolidated financial statements and annual financial statements Management is responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the EU and Danish disclosure requirements for listed financial services companies as well as the preparation of annual financial statements that give a true and fair view in accordance with the Danish Financial Business Act. Management is also responsible for such internal control as it determines is necessary to enable the preparation of consolidated financial statements and annual financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s responsibility Our responsibility is to express an opinion on the consolidated financial statements and annual financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing and additional requirements under Danish audit regulation. This requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements and annual financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements and annual financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatements of the consolidated financial statements and annual financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of consolidated financial statements and annual financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Management, as well as the overall presentation of the consolidated financial statements and annual financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Our audit has not resulted in any qualification. Opinion In our opinion, the consolidated financial statements give a true and fair view of the Group’s assets, liabilities and financial position at 31 December 2015, and of the results of its activities and cash flows for the financial year 1 January to 31 December 2015 in accordance with International Financial Reporting Standards as adopted by the EU and Danish disclosure requirements for listed financial services companies. Further, in our opinion, the annual financial statements give a true and fair view of the parent company's assets, liabilities and financial position at 31 December 2015, and of the results of its activities for the financial year 1 January to 31 December 2015 in accordance with the Danish Financial Business Act. Statement on the management review Pursuant to the Danish Financial Business Act, we have read the management review. We have not performed any further procedures in addition to the audit of the consolidated financial statements and annual financial statements.