Being a shareholder in Tryg must be attractive, and in accordance with Tryg’s dividend policy, we strive to ensure that a steadily increasing dividend is paid to
Share buy back programme initiated On 2 January, Tryg initiated an extraordinary share buy back of DKK 1bn, which was completed on 18 December 2015.
The new curve increases the interest rate risk of the technical provisions, thereby introducing a larger difference between the match return and the changes in the technical provisions. Moreover, the curve introduces a component, 'Credit Risk
Tryg expects growth in gross premium income of 0-2% in local currencies in 2016. From 2017, we expect premium growth to be in line with GDP.
In August, the Danish Business Authority approved the members’ bonus scheme of TryghedsGruppen,
Claims reporting is one of the most important parameters for customers, and in Q4 a solution for the digital reporting of private contents claims was launched in Denmark. Tryg will continue to develop user-friendly solutions in 2016. To increase the number of products per customer, Tryg will also, as part of the digitalisation programme, encourage customers to buy new products through Tryg’s ‘My page’ online solution in both Denmark and Norway.
A profit of DKK 49m (DKK 10m) was realised on discontinued business, comprising gains on provisions, primarily relating to the marine run-off business.
Na t ural Perils Pool and the Norwegian guarantee scheme. On 26 August 2015, the Norwegian Ministry of Justice and Public Security started a consultation in relation to the use of the Norwegian Natural Perils
As earlier mentioned, Tryg has acquired Skandia’s child insurance portfolio. This will lead to a capital impact of DKK 400-500m, both due to the price paid for the portfolio and the capital requirement relating to the portfolio.
Profit after tax was positively affected by the ongoing efficiency programme which had an impact of DKK 32m in the quarter. The investment income rebounded somewhat from the very negative development in Q3 2015 with a result of DKK 201m.
44m (DKK 39m), a result from the free portfolio of DKK 201m (154m) and other financial income and expenses totalling DKK -44m. The high return on the free portfolio was due to a rebound in the equity market reflected in a return on equities of
In Denmark, the expense ratio was 13.4 (15.0), reflecting a strong focus on efficiency and a lower level of commissions and marketing spend. The number of employees was reduced by 15 in Q4.
Premiums increased by around 1.6% in Denmark, whereas in Norway premium income declined by 3.3% in local currencies due to the competitive market situation, especially for the broker channel, and the weakened Norwegian economy. In Sweden, which accounts for only 20% of the total Corporate business, continued growth of 6.2% in local currencies was posted.
Profit/loss on gross business 200 225 -513 715 Profit/loss on ceded business -195 -128 877 -304 Insurance technical interest, net of reinsurance 0 1 5 16
In 2015, the financial markets were characterised by a considerable degree of volatility. Worries about a Greek exit from the Euro zone in the first half of the year, as well as Chinese devaluation and falling growth expectations in emerging-market nations in Q3 led to the highest level of volatility in equity markets in four to five years. This increase in market uncertainty led to substantial fluctuations in equity prices and interest rates. One driver behind this was the expected divergence of the monetary policies of the European and
Value adjustments, changed discount rate 45 -217 120 -741 Transferred to insurance technical interest -64 -84 -259 -414
NOK 1,400m. By structuring the terms of the subordinated loan in accordance with the Solvency II
Tryg had a total share capital of DKK 1,447,798 on 31 December 2015. This comprised one share class
At the end of 2015, and after the share buy back programme, Tryg held 7,243,126 own shares, corresponding to 2.4% of the share capital. At the coming annual general meeting, the Supervisory Board will propose the cancellation of the repurchased shares.
The Supervisory Board performs an annual evalu ation of its work and skills to ensure that it possesses the expertise required to perform its duties in the best possible way. The Supervisory Board focuses primarily on the following qualifications and skills: management experience, financial insight, organisation, IT, product development, communication, market insight, international experience, knowledge of insurance, reinsurance, capital requirements, general accounting insight and accounting principles (GAAP), including regulations and principles designed for the insurance industry and M&A experience. See CVs and descriptions of the skills in the section Super visory Board on pages 32-33 and at tryg.com > Governance >
The Supervisory Board considers the composition, development, risk and succession plans of the Executive Board in connection with the annual evaluation of the Executive Board, and regularly in connection with board meetings.
The Chairman of the Supervisory 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 Supervisory Board for the current financial year is also submitted for approval by the shareholders at the annual general meeting. See the remuneration policy at tryg.com > Governance > Remuneration.
The Supervisory Board and the Executive Board approve and monitor the Group’s overall policies and guidelines, procedures and controls in important risk areas. They receive reports about developments in these areas and about the ways in which the frameworks are applied. The
Read more about Tryg’s risk management in the section Capital and risk management on pages 24-25 and in Note 1 on page 46.
Torben Nielsen has special skills in the fields of management, finance, financial services and risk management as former Governor of Danmarks Nationalbank.
Born in 1955. Joined: 2015. Swedish citizen. Professional board member and independent advisor. Former CEO of the Swedish banks SBAB and Nordnet as well as the insurance company SalusAnsvar.
Number of shares held: 85,740 Change in portfolio in 2015: +18,475
As a part of Tryg's business ethics including anticorruption, we have a code of ethics which all employees must know and adhere to. At the same time, our employees are obliged to report any activities that do not comply with our code of ethics or applicable legislation. For this purpose, Tryg has set up a whistleblower line, where it is possible for employees and external stakeholders to report such instances in confidentiality. The whistleblower line was used once in 2015. In 2016, we will work to further increase awareness of the code of ethics among our employees.
Read more at tryg.com > Governance > Whistleblower line Read our code of ethics at tryg.com >
To create peace of mind and share our knowledge about prevention, we invited 120 students from the local community in Ballerup to participate in two workshops. One focused on bicycle safety and the other one on prevention of fire. Both workshops received positive feedback, and we are planning to host at least one workshop in 2016. To increase our engagement with the local community, we will also re-launch a financial training course in 2016 aimed at enabling young people to assume responsibility for their finances. Read more at tryg.com > CSR >
The possible payment of dividend from Tryg Forsikring A/S to Tryg A/S is influenced by contingency fund provisions of DKK 2,516m (DKK 2,622m in 2014) The contingency fund provisions can be used to cover losses in connection with the settlement of insurance provisions or otherwise for the benefit of the insured.
Total changes in equity in 2014 -41 2 -34 45 -40 5 75 12
Operational risk Operational risk relates to errors or failures in internal procedures, fraud, breakdown of infrastructure, IT security and similar factors. As operational risks are mainly internal, Tryg focuses on an adequate control environment for its operations. In practice, this work is organised by means of procedures, controls and guidelines covering the various aspects of the Group’s operations. 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. A special crisis management structure is set up to
Issue date December 2005 March 2013 November 2015 Maturity year 2025 Perpetual 2045 Loan may be called by lender as from Called by Tryg in December 2015 2023 2025
Annual report 2015 | Tryg A/S | | Contents – Financial statements 6 Insurance operating costs, gross, classified by type Commissions -368 -395 Staff expenses -1,680 -1,463 Other staff expenses -179 -213 Office expenses, fees and headquarter expenses -364 -459 IT operating and maintenance costs, software expenses -261 -272 Depreciation, amortisation and impairment losses and write-downs -102 -108 Other income 234 221
Interest expenses Interest expenses subordinate loan capital and credit institutions -89 -90 Interest expenses, other -6 -25 8 Value adjustments Value adjustments concerning financial assets or liabilities at fair value with value adjustment in the income statement: Equity investments 13 -18 Unit trust units 57 354 Share derivatives 14 17
Sensitivity information Impact on equity from the following changes: CAGR +1.0 percentage point (0-10 years) 25 15 CAGR -1.0 percentage point (0-10 years) -24 -12 Required return +1.0 percentage point -161 -172 Required return -1.0 percentage point 189 202 Combined ratio +1.0 percentage point -24 -27 Combined ratio -1.0 percentage point 25 27
Increase in applied rate of return of 0.25% -41 -46 Decrease in applied rate of return of 0.25% 45 42 Decrease in net rental income of 3% -35 -36 Decrease in occupancy rate of 3% -8 -8 13 Investment property Fair value at 1 January 1,828 1,831 Exchange rate adjustments -19 -30 Additions for the year 31 12 Disposals for the year -17 -7 Value adjustments for the year 8 23 Reversed on sale 7 -1
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 53m (DKK 54m in 2014).
The FTP plan is primarily a defined-benefit plan in terms of the future pension benefits. FPK is unable to provide sufficient information for the Group to use defined-benefit accounting. For this reason, the Group has accounted for the plan as if it were a defined-contribution plan in accordance with IAS 19.30.
23 Amounts owed to credit institutions Overdraft facilities 64 116 24 Debt relating to unsettled funds transactions and repos Unsettled fund transactions 290 885 Repo debt 3,784 2,017
Tax liability Intangible rights 77 77 Land and buildings 96 229
Claims payments - Parent company (TryghedsGruppen smba) 0.1 0.1 - Other related parties 0.5 0.3
Number of Basis Variable 2014 persons salary salary Pension Total a)
The annual report of the parent company is prepared in accordance with the executive order on financial reports presented by insurance companies and lateral pension funds issued by the Danish FSA. The deviations from the recognition and measurement requirements of IFRS are: • The Danish FSA’s executive order does not allow provisions for deferred tax of contingency reserves allocated from untaxed funds. Deferred tax and the other comprehensive income of the parent company have been adjusted accordingly on the transition to IFRS.
Share-based payment The Tryg Group’s incentive programmes comprise share option programmes, employee shares and matching shares.
7 Capital adequacy Equity according to annual report 9,846 11,134 Proposed dividend -1,013 -1,731 Solvency requirements of subsidiaries – 50% -3,868 -2,353
Technical interest ratio, net of reinsurance 0.1 0.3 0.3 0.3 0.9 Return on equity before tax on continuing business (%) 22.2 29.7 27.1 30.2 18.4 Return on equity after tax on continuing business (%) 18.4 22.9 21.5 21.8 13.1