Topdanmark A/S • Borupvang 4 • DK-2750 Ballerup topdanmark@topdanmark.dk • www.topdanmark.com
The profit on life insurance decreased by DKK 9m to DKK 36m as a result of higher administration costs.
So far, the distribution agreement with Nordea is off to a good start.
The investment return in 2019 on the most significant classes of assets is shown in the table below: Sources of gross premiums Q4 Q4
The composition of the Danish equity portfolio, representing around 30% of the total equity portfolio as at 31 December 2019, is based on OMXCCAP, while the portfolio of foreign equities is based on MSCI World DC in the original currency.
This was based on the following assumptions: • Weather-related claims of DKK 170m. The weatherrelated claims, broken down by quarter, are assumed to be as follows: o Q1: DKK 50m o Q2: DKK 25m o Q3: DKK 45m o Q4: DKK 50m
Topdanmark’s assessment is that the current level of the solvency ratio is comfortable considering the wish for a sound own funds base and satisfactory profitability. In order to ensure strict control of the overall risk, the exposures are calculated as often as deemed necessary, i.e. daily, monthly, quarterly or in a few cases annually, according to the nature of the exposure.
Independence: Cristina Lage meets the definition of independence set out by the Committee on Corporate Governance.
Interest charges (81) (78) Expenses on investment activities (47) (53) Total investment return (1,990) 9,499
Payments on investment contracts 1,008 264 Interest income and dividends etc. 1,806 2,347 Interest charges etc. (124) (133) Corporation tax (402) (414) Other items (135) 42
Technical result on non-life insurance 843 656 (0) 1,499 35 1,534
Average value of claim (DKK '000) 36 37 5 5 83 87 Frequency of claims (per thousand value) 25 25 327 311 119 124
Tenancy agreements may include a period of non-terminability for the tenant. Future rental income in the period of non-terminability: Up to 1 year 205 279
Revaluation taken to other comprehensive income 0 (18) (18) Revaluation taken to income statement 0 (2) (2) Transferred on revaluation 0 (1) (1)
If permitted by the Danish FSA, the borrower can give notice of termination from 23 November 2022 11 December 2020 11 June 2021
Note 27. Profit margin, life insurance and investment contracts With-profit products 82 79 Unit-linked products 186 250 Profit margin, life insurance and investment contracts 268 329
Provisions relating to previous years at 31 December 2,635 Gross provisions at 31 December 2019 13,071
Reconciliation: Provisions for claims 13,071 Less reinsurers' share of provisions (478) Provisions, net of reinsurance, at 31 December 2019 12,593 Composition of expected payments, net of reinsurance: Amortisation / revaluation w orkers' compensation
Note 31. Auditors' fee Fee to the auditors elected at the Annual General Meeting Ernst & Young: Fee for statutory audit of the annual accounts 3 4 Fee for other assurance engagements* 0 0 Fee for services, other than audit work 0 0 *Fee for other assurance engagements includes fee for issuance of reports to the Danish Tax Authority and other public authorities. Fee for services, other than audit work, includes general accounting advisory and participation in meetings with the Danish FSA. The Group has an internal audit department which carries out most of the audit work.
Board of Directors Ricard Wennerklint 2,000 2,000 Jens Aaløse 50 50 Elise Bundgaard - 1,024 Anne Louise Eberhard - 100 Mette Jensen 857 936 Petri Niemisvirta 500 500 Cristina Lage - 450 Ole Lomholt Mortensen - 1,794 Morten Thorsrud - 500
The portfolio consists of construction financing of property projects (DKK 208m) and Vindmøllepark (wind farm) guaranteed by EKF (DKK 39m) and bonds (DKK 124m), for which current return depends on payment on life annuity contracts. The fair value is generally equivalent to the cost price in the transaction currency. Exchange rate adjustments are recognised in the income statement under revaluations. Of the overall revaluation DKK 2m is unrealized (2018: DKK 8m).
Topdanmark Invest II ApS has in 2019 been liquidated by submitting a statement to the authorities.
Typically, the claims department operates with day-to-day management of claims notifications and other claims handling in order that the value of the claim does not increase. Customers increasingly undertake notification of claims online. Turnaround times are continuously monitored.
Better claims procurement Topdanmark has established a new strategic department ‘Procurement’, which will bring together procurement for the departments Claims, Technology & Solutions and Group Procurement. The Department is placed in the organisation ‘Analytics’.
The national Danish pool for NBCR (nuclear, biological, chemical, radiological) risks has been closed per 1 July 2019. The NBCR terror risks are by 1 July 2019 covered by a public organisation financed by fees on insurance covers if a claims event take place. This is according to a new Act on NBCR terror in force by 1 July 2019.
The Group has implemented IFRS 16 “Leasing” and IFRIC 23 “Uncertainty over Income Tax Treatments” without any effect on recognition and measurement, or presentation of the accounts.
Provisions for outstanding claims Provisions for claims incurred, but not yet paid, have been calculated as the best estimate at the end of any given year. As, at this time of the year, all necessary information is not available, there will be deviations between the actual claims paid and the provisions made in the form of either run-off losses (provisions too low) or run-off profits (provisions too high).
General Consolidated financial statements The consolidated financial statements include the parent company Topdanmark A/S and all of the companies that are controlled by the parent company. The parent company is deemed to control the companies through direct or indirect ownership of more than 50% of the voting rights, or when it can have or has an otherwise controlling influence.
Recognition and measurement in the segments follow the same accounting policies as those applied by the Group.
The equity investments held are regularly tested for impairment and written down to a lower recoverable amount.
All financial assets included in "Other financial investments assets" and "Investment assets related to unit-linked products" are measured at fair value with any value adjustment through profit and loss.
Income from affiliates 1 1,372 1,587 Interest charges (11) (10) Total investment return 1,361 1,577
Note 6. Share capital Each of Topdanmark's 90,000,000 shares has a nominal value of DKK 1 and has one vote. No share enjoys any special rights. The shares are freely tradeable.
Note 7. Other subordinated loan capital Principal DKK 400m Date of issue November 2017 Maturity Bullet If permitted by the Danish FSA, the debtor can give notice of termination from 23 November 2022 Interest rate Cibor 3 months +2.75% Subsequently