Floods hit Norway On 30 October, the western part of Norway was hit by floods. Tryg received 120 claims, the majority of which were processed in 2014.
January February Marts April May June July August September October November December
Danish market where new players entered the market in the form of price portals offering comparisons of insurance prices. Tryg generally recommends that customers use Tryg’s own website, or alternatively one of the insurance industries’ own comparison sites, which are not required to pay the suppliers of the comparison portals.
& success culture. Based on the progress realised in the individual areas and the new activities in the pipeline, the financial targets have now been upgraded for the period up to 2017. The customer -related targets were established on the basis of the experience gained in connection with the work throughout the year with Customer journey
Sourcing has also been an im portant initiative in 2014, which was demonstrated in particular in the change of IT suppliers from CSC to TCS, while IT
DKK 9,938m. After recognition of a share buy back, Tryg’s surplus cover is DKK 3,378m, corresponding to 51%.
Authority performed an ordinary inspection. The inspection confirmed the authority’s favourable opinion on risk management, reserve and capital position.
Truls Holm Olsen | Group Executive Vice President, Corporate 2013 in total. Adjusted for this, the underlying development in results was positive; among other things due to a lower level of medium-sized claims.
Run-off amounted to 3.1% (1.3%), which reflects that the Swedish part of the business has now also built a solid reserve position.
The technical result was DKK 7m (DKK 44m), and the combined ratio was 98.3 (88.2).
number of elements, of which the largest are the expense relating to Tryg’s hedging of the currency risk of DKK 95m, as mentioned above, and the expenses relating to Tryg’s subordinate loan of
Moreover, the insurance risk is managed through geographical limitations and by refraining from offering certain types of insurance such as aviation and marine insurance. Operating within these limits, Tryg’s risk will depend on the company’s choice of exposure within different segments and industries in the insurance market.
At the end of 2014, the Individual Solvency Requirement totalled DKK 6,560m (DKK 6,366m in 2013). The capital required to meet the Individual
• The capital level may extraordinarily be adjusted through a share buy back.
The Danish recommendations have been prepared by the Committee on Corporate Governance and most recently updated in 2014. The Recommendations on Corporate Governance can be found at corporategovernance. dk. At tryg.com, Tryg has published the statutory corporate governance report based on the ‘comply or explain’ principle for each individual recommendation. This section on corporate governance is an excerpt of the corporate governance report.
Tryg has adopted an Investor Relations policy which states, among other things, that all company announcements and financial statements are published in Danish and English and that Tryg publishes interim financial statements each quarter. Moreover, Tryg prepares quarterly investor presentations which are used in the dialogue with investors and analysts. All announcements, financial statements, investor presentations and newsletters are available at tryg.com.
All shareholders are encouraged to attend the annual general meeting. The annual general meeting is held by personal attendance as the Board values personal contact with the Group’s shareholders.
Shareholders may propose items to be included on the agenda for the annual general meeting, and may ask questions before and at the meeting.
Risks associated with new financial reporting rules and accounting policies are monitored and considered by the Audit Committee, the finance management and the internal auditors. Material legal and tax-related issues and the financial reporting of such issues are assessed on an ongoing basis.
Each year, the annual general meeting appoints an independent auditor recommended by the Board.
Tryg has set up an internal audit department which regularly reviews the quality of the Group’s internal control systems and business procedures. It is responsible for planning, performing and reporting the audit work to the Board.
As former CEO of FLSmidth, Jørgen Huno Rasmussen has experience in international management of listed companies and special skills within strategy, business development, communication, risk management and finance.
Employee representative Born 1966. Joined: 2012. Nationality: Danish. Chairman of the Association for Tied Agents and Key Account Managers in Tryg. Employed in 1990.
Number of shares held: 780 Change in portfolio in 2014: +587
Tryg’s Group consolidated financial statements are prepared in accordance with IFRS and published in Danish and English.
Annual report 2014 | Tryg A/S | | Menu – Financial statements
Morten Hübbe Tor Magne Lønnum Lars Bonde Group CEO Group CFO Group Executive Vice President and COO
At the second level of control, there is the risk management function which ensures consistent risk management across the organisation, among other things. The risk management function measures and assesses risks at group level and prepares continuous reporting to the management and the Supervisory Board. Among other things, this involves an ongoing identification and assessment of the most significant risks in the company. Furthermore, the function prepares specific recommendations in relation to capital management, reinsurance, interest rate risk identification and more. Tryg’s risk management function is also responsible for determining the company’s capital requirements and for assessing whether the calculated solvency requirement is reasonable given the identified risks.
Tryg has combined the minimum cover of other sectors into a joint cover with retention of DKK 100m for the first claim and DKK 25m for subsequent claims. For the individual sectors, individual cover has subsequently been taken out as needed.
The Supervisory Board defines the overall framework for managing operational risk in Tryg’s IT security policy and operational risk policy. These risks are controlled via the Operational Risk Committee.
The handling of compliance risk is coordinated centrally via the Group’s legal department, which, among other things, sits on industry committees in connection with legislative monitoring, ensures implementation in Tryg through business procedures and participates in the ongoing training of the organisation.
Emerging risk Emerging risk covers new risks or known risks, with changing characteristics.
Run-off gains/losses, net of reinsurance 310 265 375 20 0 970
Number of full-time employees 31 December 2,007 2,046 2,187 2,315 2,349
Claims ratio, net of ceded business 79.8 81.3 76.8 84.6 85.4
In the calculation of the expense ratio, costs are stated exclusive of depreciation and operating costs on the owner-occupied property but including a calculated rent concerning the owner-occupied property based on a calculated market rent of DKK 38m. (DKK 41m in 2013).
Goodwill At 31 December 2014, management performed an impairment test of the carrying amount of goodwill based on the allocation of the cost of goodwill to the cash-generating unit, which consists of Moderna and Securator, respectively.
The cash flows appearing from the latest budgets approved by management for the next 3 financial years a re used when calculating the value in use of Moderna. The cash flows in the latest budget period have been extrapolated for financial years after the budget periods (terminal period) and adjusted for expected growth rates determined on the basis of expectations for the general economic growth. The required return is based on an assessment of the risk profile of the tested business activities compared with the market's expectations for the Group.
Securator The test for Securator A/S is based on the valuation at the time of acquisition due to the short ownership period and the lack of indications of impairment since the acquisition.
DKKm 15 Financial assets (continued) Derivative financial instruments used in connection with hedging of foreign entities for accounting purposes Gains and losses on hedges charged to other comprehensive income 2014 Gains Losses Net
Receivables are written down in full when submitted for debt collection. The write-down is reversed if payment is subsequently received from debt collection and amounts to DKK 54m (DKK 43m in 2013).
Employer contributions 14.1 14.0 Mortality table K2013 K2013 20 Pensions and similar obligations Jubilees 62 68
Earnings per share, continuing business 43.5 39.4 Diluted earnings per share, continuing business 43.5 39.3 Earnings per share 43.7 39.4 Diluted earnings per share 43.7 39.3 Earnings per share, discontinued and divested business 0.2 0.0 Diluted earnings per share, discontinued and divested business 0.2 0.0 21 Deferred tax Tax asset Operating equipment 11 14 Debt and provisions 60 105 Capitalised tax loss 1 6
• Amendments to IFRS 3 ‘scope exception for joint ventures’ a)
The shares are recognised at market value and are accrued over the four-year maturation period, based on the market price at the time of acquisition. Recognition is from the end of the month of acquisition under staff expenses with a balancing entry directly in equity. If an Executive Management member or risktaker retires during the maturation period but remains entitled to shares, the remaining expense is recognised in the current accounting year.
Receivables Total receivables comprise accounts receivable from policyholders and insurance companies as well as other accounts receivable. Other receivables primarily contain accounts receivable in connection with property Receivables that arise as a result of insurance contracts are classified in this category and are reviewed for impairment as a part of the impairment test of accounts receivable.
Share Revaluation Retained Proposed DKKm capital reserves earnings dividend Total 2014 Profit/loss for the year 143 683 1,731 2,557 Other comprehensive income -40 -40
Expense ratio, net with adjustment 15.0 16.1 16.9 17.0 17.1 Combined ratio, net with adjustment 83.3 86.9 87.6 92.7 98.5 Expense ratio, net without adjustment 14.8 15.9 16.6 16.9 17.0
Being one of the largest insurance companies in the Nordic region, Tryg offers a broad range of insurance products to both private individuals and businesses. Tryg continuously develops new products and adapts existing peace of mind solutions to customer requirements and developments in society. Also, Tryg focuses strongly at all times on striking a better balance between price and risk.