Corporate governance is an important foundation for all businesses, and the Supervisory Board stresses the importance of complying with the Recommendations on Corporate Governance. Transparency about the composition, skills and work of the Supervisory Board is one issue which is particularly important for us.
Insurance is based on 15 parameters as opposed to only two. Read about
Moderna Försäkringar, Tryg’s branch in Sweden, entered into a strategic partnership agreement with Danske Bank concerning general insurance in Sweden.
According to the EPSI customer satisfaction survey, Tryg’s customer satisfaction remained high in the private market, up slightly by 0.2 points in Denmark and up by 1.8 points in Norway.
On 5 December, the second severe storm of the year, named Bodil, hit Denmark and Sweden. Tryg decided to help and provide peace of mind for customers immediately and before the events were officially recognised as floods on 10 December.
The Nordic insurance market is characterised by consumers and businesses having largely covered their insurance needs. At the same time, the situation is one of relatively low economic growth and a continued net transfer of workplaces to countries with lower labour costs. All in all, these factors are leading to low growth in the demand for insurance in the Nordic market. In the long term, the growth in insurance revenue is expected to equate to the development in the gross domestic product.
Tryg wants a higher level of employee satisfaction than the benchmark for the Nordic financial sector. The strong focus on costs and the significant changes which have been implemented and which have affected many employees were expected to adversely affect employee satisfaction in the short term. This was in fact seen in the employee satisfaction survey in 2013. The changes which have had a negative impact on employee satisfaction include staff cuts, the outsourcing of tasks and a new office structure. A turnaround in employee satisfaction is expected in the coming years.
Tryg’s shareholders must see Tryg as a company which sets ambitious targets and achieves them. This is the background against which Tryg has defined the above-mentioned targets. Tryg’s shareholders naturally expect the company to focus on efficiency. This is important, not just from the point of view of achieving the financial targets, but also in terms of strengthening the company’s competitive position. In this light, Tryg has set an expense ratio target of less than 15 from 2015.
As regards the claims level in 2014, weather claims net of reinsurance are expected to total DKK 500m, and large claims DKK 550m.
Tryg Safe in Life is a health and crisis hotline. The customer can pick up the phone and ask for help if suffering from problems such as serious illness, stress and divorce.
to 11.4%. The tax will gradually increase from 2014 and will stand at 15.2% in 2020. This increase will not affect Tryg’s expense ratio target of less than 15 from 2015.
The investment return was DKK 588m (DKK 585m) in 2013. Tryg’s investment portfolio is divided into a match portfolio and a free portfolio.
In general, the division of the investment portfolio entails a low financial risk and reflects Tryg’s focus on the insurance business.
• Claims ratio, net of ceded business, improved by 1.1 percentage points to 70.9 (72).
Investment return 2013 was in many ways the year when optimism returned, and the equity markets developed positively. In 2013, Tryg’s total investment portfolio yielded a gross return of DKK 1,116m (DKK 2,205m). The return for the year totalled 2.5% of the average invested capital.
Norwegian and Swedish interest rate swaps. Thereby Tryg avoids fluctuations in the fair value of its long-term liabilities in the respective countries. Fluctuations in swap rates, which are sometimes greater or smaller than the Danish Financial Supervisory Authority’s rates, may cause a mismatch to arise. In addition, a mismatch may arise from other risks which are not interest rate risks and which cannot be hedged accurately.
We hear from increasing numbers of customers who are concerned about the issue.
Investigating identity theft and getting your life back is an overwhelming and time-consuming task. We therefore advise on ways of minimising the risk of theft, and help with all the practicalities in cases of misuse of personal information. In this way, we hope to provide more peace of mind for our customers.
(equities, property etc.) and the management of the total interest risk via the company’s match strategy. This prescribes that the company’s investment assets corresponding to the technical provisions must be invested in interest-related assets, the interest rate sensitivity of which precisely matches and thereby hedges the interest rate sensitivity of the discounted provisions.
an extraordinary share buy back totalling DKK 1bn. The buy back will take place between 2 January 2014 and the end of the year.
At the end of 2013, Tryg’s subordinate loan capital corresponded to 16% of equity, with total interest expenses of DKK 89m.
The forthcoming joint European rules providing uniform protection for policyholders (Solvency II) are now expected to take effect on 1
Falkoner Centret, Falkoner Allé 9, 2000 Frederiksberg, Denmark. The notice will be advertised in the daily press in March 2014 and will be sent to shareholders, if requested. The annual general meeting will also be announced on tryg.com, where shareholders not able to attend can follow proceedings live via webcast.
to go there, even though the Danish Storm Council was not due to meet until the week following the storm. Claims assessors went round to all the houses to answer questions and help the owners take steps to mitigate the damage.
See the description of skills at tryg.com and the notice convening the annual general meeting.
The Board has 12 members and deems the number of members adequate to ensure a constructive debate, sufficient diversification and efficient decision-making. The Board considers the number of board members each year when preparing the annual general meeting.
The Chairman of the Board reports on Tryg’s remuneration policy each year in connection with the consideration of the annual report at the annual general meeting. The Board’s proposal for the remuneration of the
Members of the Supervisory Board are elected for a term of one year. Employee representatives are, however, elected for a term of four years. The next election of employee representatives will be held in 2016.
Education: Master of Economics and Business Administration, Financial Analyst (CFA) and management programme from London Business School. Chairman: Onshore Petroleum Company AS and Seilsport Maritimt Forlag AS. Board member: Tryg A/S, Tryg Forsikring A/S, Argentum Fondsinvesteringer AS, Nordic Mining ASA, Forskningskonsernet Sintef, E-CO Energi, Infratek ASA and Sevan Marine ASA. Committee memberships: Audit Committee and Risk Committee in Tryg A/S. Number of shares held: 300 Change in portfolio in 2013: +100
Operating equipment 138 122 Owner-occupied property 1,443 1,304 Assets under construction 11 0 13 Total property, plant and equipment 1,592 1,426 15 Equity investments in associates 21 18
In Tryg’s partial internal model, insurance risks are modelled using internal components, while investment risks, operational risks and other risks that are not part of Tryg’s primary business concept are described using the standard Solvency II model.
In addition, reinsurance is bought for a number of sectors which, from experience, are exposed to major claims. The largest single risks in Tryg’s corporate portfolio are in the area of buildings and contents insurance, protected by reinsurance cover of DKK 1.7bn and with retention of DKK 50m, but with additional annual retention. This means that, in practice, retention is DKK 100m for the first claim, DKK 75m for the second claim and DKK 50m for subsequent claims. If there are more than four major claims in the same year, additional frequency cover has been purchased, reducing retention to DKK 25m for subsequent claims. Tryg buys facultative reinsurance cover for buildings and contents risks with exposure above DKK 1.7bn. For Tryg’s subsidiary Tryg Garantiforsikring A/S, the maximum retention is limited to DKK 30m.
Claims ratio, net of ceded business 74.5 79.8 76.4 71.4 69.2
Claims ratio, net of ceded business 82.4 85.4 84.6 76.8 81.3
Notes a) The claims frequency is calculated as the number of claims incurred in the year in proportion to the average number of insurance contracts in the year.
Other Total exclusive of Norwegian Group Life, insurance c) Norwegian Group Life one-year policies Total
Notes 8 Interest and dividends etc. Interest income and dividends Dividends 15 19 Interest income cash at bank and in hand 26 18 Interest income bonds 1,133 984 Interest income, other 22 8
DKKm 12 Intangible assets (continued) Impairment test Goodwill At 31 December 2013, 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 the total Swedish insurance activities.
Software and assets under construction As at 31 December 2013, management performed a test of the carrying amounts of software and assets under construction.
2013 Komplementarselskabet af 1. marts 2006 ApS, Denmark 0 0 0 0 0 50
Sensitivity information The sensitivity analysis is based on a change in one of the assumptions, assuming that all other assumptions remain constant. In reality, this is rarely the case, and changes to some assumptions may be subject to covariance. The sensitivity analysis has been carried out using the same method as the actuarial calculation of the pension provisions in the statement of financial position.
Depreciation of operating equipment is calculated using the straightline method over its estimated economic lifetime as follows: • IT, 4 years • Vehicles, 5 years • Furniture, fittings and equipment, 5-10 years
Financial assets at fair value recognised in income statement Financial assets are recognised at fair value on initial recognition if they are entered in a portfolio that is managed in accordance with fair value. Derivative financial instruments are similarly classified as financial assets held for sale, unless they are classified as security.
The benefits to which the Group is entitled under its reinsurance con- tracts held are recognised as assets and reported as reinsurers’ share of provisions for insurance contracts.
Total receivables 85 0 5 Current tax assets 24 14 Cash at bank and in hand 1 1
Intra-group trading involved - Providing and receiving services -40 -23 - Intra-group accounts’ 84 -629
Key ratios Gross claims ratio 88.1 87.5 77.7 75.3 67.2 75.6 76.7 72.6 71.8
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.
Disclaimer | Certain statements in this annual report are based on the beliefs of our management as well as assumptions made by and information currently available to management.