Mission our Mission is to secure a stable, high-quality supply of products and services offering peace of Mind to private households and businesses vision We Want to be perceived as the leading peace of Mind provider of the nordic region
We want to be perceived as the leading peace of mind provider of the Nordic region. Our vision and strategy have a strong commercial focus, and in 2006, we came a step closer to fulfilling our ambition. We launched a large number of initiatives, all of them based on our vision. In combination, these initiatives will help us continue the development of our business and our strong performance
TrygVesta’s third-quarter pre-tax profit was an improvement of DKK 226m over the third quarter
I do understand that people who do not know Second Life think that a virtual world sounds quite frightening.
TrygVesta achieved its best full-year performance ever in 2006. The financial results improved by DKK 796m, a significant increase over 2005. The increase was primarily driven by improvements of DKK 480m of the technical result and DKK 319m of the return on investment activities. Compared with the guidance provided in the preliminary forecast of 9 January 2007, the performance was marginally above the expected range of DKK 3.7-3.8bn.
DKK 1.4bn. Following the sale of Chevanstell Limited, reinsurers’ shares of technical provisions fell from DKK
Based on the right balance between growth and earnings, we intend to
TrygVesta together serving about 40% of the market. Over the past few years, the market has seen a significantly improved earnings performance, with growth largely equalling the growth in GDP. However, price adjustments due to a favourable claims experience triggered stronger price competition in 2006, in particular for motor in Denmark and building in Norway.
In the summer of 2006 we launched BusinessLab, a pan-Nordic space for innovative thinking and ideas. In
geographical distribution of full-tiMe eMployees age and gender breakdoWn in trygvesta 2006
In Finland we sell general insurance products to private household customers under the brand name
The Private & Commercial Norway business area reported a technical result of DKK 771m for 2006. As expected, this was lower than the DKK 874m reported in 2005 due to an exceptionally high run-off result and low claims expenses.
Converting Vesta into a branch will enable TrygVesta to create a more uniform Group structure because the insurance activities in Finland and Sweden are already established as branches. The business will continue to operate under the name of Vesta, and the change will have no practical implications for customers and employees in Norway.
Business ceded as a percentage of gross premiums was 2.9 percentage points lower compared with 2005 primarily because the nature and magnitude of large losses in 2006 triggered several contributions from reinsurers.
The overall bond portfolio including cash yielded a return of 2.8% or DKK 788m in 2006. Short-term bond yields rose 1.2-1.5 percentage points in Denmark and
The portfolio of real property is well-diversified and consists of quality property, typically in prime locations in major cities in Denmark and Norway. The portfolio mainly comprises office premises, but also includes a small proportion of other commercial property and residential property.
Companies had quite simply forgotten to “insure themselves” and pay sufficient attention to the risk inherent in such investments, and at the time several companies were in danger of winding up. These days, things are in quite a different place than they were 5–6 years ago. The industry has been through a minor revolution. Many companies have consolidated; we have witnessed a number of acquisitions and there is practically a new generation in the management teams of the various European insurance players. Therefore, the situation is better than it’s been for a long time.
WAS ONE OF THE FOUNDERS SOME TWENTY YEARS AGO. PAUL IS ONE OF THE
The notice of the annual general meeting will be sent by post to all registered shareholders. Invitations to subsequent general meetings will be sent by e-mail.
All shareholders are urged to attend the annual general meeting. Shareholders may vote by proxy given to the
A contribution of 25% of the fixed salary of the Group
Following release of our 2006 annual report, members of the Executive Management and senior management employees will be offered to use part of any bonus payment up to three months’ salary to acquire shares at a discount to the market price. Shares at a discount to the market price will be offered at par value.
However, I am not personally interested in taking up everything new. I haven’t got a mobile, for example. If we are not available, we have an answering machine at home and we also have e-mail, which I check at least twice a week! But I have noticed in others that they rather like being disturbed – like knowing that there is somebody who wants to get in touch with them. Perhaps there is a sense of security in knowing that one can be of help
The overall aim for our capital resources is based on relevant regulatory requirements and our wish to maintain a rating of A- from Standard & Poor’s. In addition to assessing the size of the required capital in the simplified version of Standard & Poor’s capital model, we also assess capital and risk in an internal ALM
The scenarios are scattered around a line sloping slightly less than that indicated. This is partly because the portfolio of interest-bearing assets exceeds the provisions, and partly because the figures exclude provisions for annuities in Danish workers’ compensation as well as the Norwegian pension obligation, which are discounted using a fixed rate of interest. Therefore, an interest rate change would have no direct impact on profits. Furthermore, due to the long-tail nature of these provisions, their inclusion would increase the impact on liabilities and the slope of the scenarios. For example, an increase in the discounting rate for provisions for annuities in Danish workers’ compensation from 1% to 2% would cause the provision to drop by DKK 145m.
effect on equity of market changes at 31 december 2006 dkkm interest rate market — increase in interest rates of 100 bps
In our opinion, the accounting policies applied are appropriate, and the annual report gives a true and fair view of the Group’s and the parent company’s assets, liabilities, and financial position at 31 December 2006 and of the results of the Group’s and the parent company’s operations and the cash flow of the Group for the financial year ended 31 December 2006.
The principal accounting policies applied in the preparation of these consolidated financial statements are set out in part D below.
The portion of premiums received on contracts that relate to unexpired risks at the balance sheet date is reported under provisions for unearned premiums.
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortised on the basis of the expected useful life (four years).
The group provides current tax expense according to the tax law of each jurisdiction in which it operates.
Notes liabilities 19 Subordinated loan capital 1,099 1,098 20 Provisions for unearned premiums 5,173 5,183 21 Provisions for claims 20,410 21,261
Members of the Supervisory Board of TrygVesta A/S do not receive bonuses and are not participants in any severance plans. The Group Executive Management has a bonus scheme for up to 3 months’ salary and participate ind the share option programme as mentioned in Corporate governance.
Accruals and deferred income 109 250 109 250 total liabilities 31,733 31,498 danish general norwegian general finnish general Swedish insurance insurance insurance insurance other total
Investment property is measured at fair value. The fair value is calculated on the basis of market-specific rental income per property and typical operating expenses for the upcoming year. The resulting operating income is divided by the percentage return requirement of the property, which has been adjusted to reflect market interest rates and property characteristics, corresponding to the present value of a perpetual annuity. The value is subsequently adjusted by the value in use of the return on prepayments and deposits and adjustment for specific property issues, such as vacant premises or special tenant terms and conditions.
Reversed hedges in connection with sale of Chevanstell 6 0 6
In 2005 provisons for claims regarding Chevanstell was recognised in the balance sheet with DKK 1,2bn. after elimination.
The accident-year 2000 is influenced by Chevanstell, which at that time operated under the name TBi UK in the London market. The impact derives from the stop-loss agreement between Tryg Forsikring A/S and Chevanstell Ltd. in 2000 to cover business written before 2000, and which was terminated after the divestment of Chevanstell. Until 2005, there was an increase in claims incurred, and in 2006 the divestment had a positive impact.
Income statement and balance sheet for TrygVesta / TrygVesta Annual Report 2006 / Page 127 of 147
Shareholders’ equity 9,974 8,242 9 Debt to credit institutions 596 710
Vesta Forsikring AS has in its consolidated financial statements included provisions for contingency funds of
the technical result of discontinued and divested business is specified by lines of business as follows: accident Marine, and aviation and other health cargo insurance 1) total
Financial highlights and key ratios by geography / TrygVesta Annual Report 2006 / Page 141 of 147
Member of the group Executive Management in charge of private & commercial denmark born 1958
Members of the Group Executive Management / TrygVesta Annual Report 2006 / Page 147 of 147