Contact persons: Ms Stine Bosse, Group CEO, phone +45 44 20 30 40 Mr Erik Gjellestad, Member of the Group Executive Management, phone +47 55 17 25 25
Processes 19 Income statement, balance sheet and cash flow statement, the Tryg Vesta Group 73
The Tryg Vesta Group’s distribution strategy is based on marketing one brand in each country, offering the same product, price and quality through all sales channels. The Group applies a multi-channel distribution strategy with large customer centres and service centres or franchises, the Group’s own insurance agents and sales through real estate agents, car dealers and Nordea’s branches as the most important channels. In addition, the Group has signed agreements with a number of trade unions and professional groups to offer their members personal insurance. Likewise, industry agreements and agreements with insurance brokers exist on the commercial market.
Our mission statement reflects the Tryg Vesta Group’s raison d’être and the activities the Group is engaged in.
At the same time, the Group completely withdrew from insuring Norwegian municipalities, a business that had been unprofitable for several years.
Costs Rating of Tryg Forsikring A/S The Tryg Vesta Group focused on costs in 2003, tightly controlling the number of employees and the use of consultants.
The Group also developed management courses for all management levels in Denmark in 2003. Development courses for middle management employees and more experienced managers focused on collaboration, coaching and process improvement. Relatively new managers attended courses matching Tryg’s business and employees. More than 115 of a total of some 200
TBi is the Tryg Vesta Group’s specialist in international reinsurance based in Copenhagen and Amsterdam.
Earned premiums, net of reinsurance 14.566 13.311 11.153 10.031 7.069 Technical interest, net of reinsurance 641 899 783 825 449 Claims incurred, net of reinsurance -11.344 -11.285 -8.902 -8.366 -5.862 Insurance operating expenses, net of reinsurance -3.626 -3.577 -2.869 -2.719 -1.760
Profit/loss on investments 0 0 - Profit /loss on ordinary activities before tax -1 -13 - -
Key ratios Claims ratio, net of reinsurance 75.5 83.4 82.6 84.3 Expense ratio, net of reinsurance 21.1 22.2 24.2 26.7 Combined ratio, net of reinsurance 96.6 105.6 106.8 111.0
The Tryg Vesta Group 18 March 2004 page 41 of 98
Profit/loss on business in run-off, net of reinsurance -547 -494 46 45 Technical provisions, net of reinsurance 8,788 9,030 6,404 5,763 Technical provisions, net of reinsurance, NOK 9,940 9,193 6,868 6,358
In 2003, the reserves were strengthened considerably for the Norwegian operations. The strengthening of the reserves – so-called run-off losses – amounted to just over DKK 500m, which primarily was attributable to the personal accident insurance business. This corresponded to an impact on the combined ratio, net of reinsurance, of 9.8 percentage points in 2003.
The growth in the personal insurance portfolio was 6 per cent in 2003, whereas the industrial customer segment saw a negative growth of 8 per cent, and the small and medium-sized commercial customer segment experienced a negative growth of 4 per cent. The development is in keeping with the wish to alter the
The Tryg Vesta Group 18 March 2004 page 43 of 98
A contributory factor to the unsatisfactory performance of the commercial insurance business was that the development within the personal insurance business, which formed 23 per cent of the total portfolio, performed unsatisfactorily. Consequently, it was necessary to strengthen the claims reserves considerably within this area.
Compensation, diseases and other personal accident insurance in businesses that performance in 2003 was unsatisfactory, and the expense ratios for the areas
improvement. In view of the age of the portfolio, the level is considered satisfactory.
The financial results were impacted by a deliberate change of the portfolio composition reflecting a wish for a larger share of the personal insurance market.
The Tryg Vesta Group 18 March 2004 page 49 of 98
Group’s Polish general insurance company changed its name from Nordea Ubezpieczenia to Tryg Polska in
The Tryg Vesta Group 18 March 2004 page 52 of 98
The combined ratio for the Danish general insurance operations was 96.9, which meets these expectations.
mild winter, few storms, few large losses and loyal customers affect the financial results positively, whereas a winter with changeable weather, many heavy storms and relatively many large losses will have a negative effect. To be specific, this means – as mentioned under the paragraph on risk management –
We propose to the Annual General Meeting that the annual report be adopted.
Annual Report 2003 The Tryg Vesta Group 18 March 2004 page 64 of 98
DKK 100,000 are recognised as an expense in the year of acquisition, except for assets acquired as part of a specific project. Computer equipment held under finance leases is recognised and depreciated as if purchased by the company.
24 Forward transactions, etc. Forward transactions, etc Market value Purchase of interest derivatives 1,025 3,307 3,307 Sale of interest derivatives 1,218 715 715 Forward purchase of foreign currency 122 110 110 Forward sale of foreign exchange 5,599 3,455 3,455
Of which services other than audit: Beyond this expenses are defrayed to the Group's Internal Audit Department 4 Extraordinary Expenses Goodwill in connection with the acquisition of subsidiaries 0 -1,182 5 Tax Change in deferred tax asset 6 0 *) Subsidiaries included from 28 June 2002
Supervisory Board of Tryg Forsikring II A/S, Chairman of the Supervisory Board of ApS KBIL 9 NR. 2032,