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TOPDANMARK ANNUAL REPORT FOR 2019 20 February 2020, Announcement No. 03/2020
Dividend distribution for 2019 • The Board of Directors will recommend to the AGM
• The expected premium growth in non-life also remains unchanged at about the same level as in 2019 (2.9%)
• The post-tax profit forecast model for 2020 amounts to DKK 950-1,050m, excluding run-off.
Premiums earned: Results: Run-off profits, net of reinsurance 381 470 344 353 433 143 90
Other movements in shareholders' equity (3) (1) 0 1 (14) 0 0 Shareholders' equity of parent company
Deferred tax on security funds (306) (306) (306) (306) (306) (306) (306) Shareholders' equity of Group
Post-tax EPS, diluted (DKK) 11.6 16.7 20.2 15.4 17.7 3.0 4.9 Share buy-back per share, diluted (DKK) 16.6 16.6 4.8 Dividend per share issued, proposed (DKK) 19.0 15.0 17.0 Net asset value per share, diluted (DKK) 51.5 57.3 75.6 72.9 76.7 Listed share price end of period 196.0 179.3 268.1 303.0 328.4
Results for Q4 2019 The profit for Q4 2019 was DKK 431m (Q4 2018: DKK 259m).
Non-life insurance - Investment return after return and revaluations of non-life insurance provisions etc. (79) (130) – (80) 66 Profit on non-life insurance 1,420 1,320 – 1,420 1,601
Non-life insurance - Investment return after return and revaluations of non-life insurance provisions etc. (155) 212 Profit on non-life insurance 256 486 Life insurance 45 36 Parent company etc. 30 29 Pre-tax profit 331 551
The claims trend adjusted for run-off, weather-related claims, large-scale claims and other positions including change of risk margin deteriorated by 0.9pp to 71.1 in 2019.
Furthermore, the claims trend in the private segment was negatively impacted by many small water claims on houses owing to a record high level of rain and due to burst waterpipes.
On the other hand, the adjusted claims trend was impacted by fewer claims in the SME and agricultural segment.
The payroll tax imposed on Danish financial businesses increased from 14.5% in 2018 to 15.0% in 2019, representing a 0.1pp adverse impact on the expense ratio. In addition, the general trend of wages and salaries impacted the expense ratio by 0.2pp.
Combined ratio The combined ratio was 83.7 in 2019 (2018: 83.6). Excluding run-off, the combined ratio was 88.3 (2018: 87.5).
Non-life insurance in Q4 2019 Premiums earned in Q4 2019 increased by 4.4% to DKK 2,347m.
Illness and accident has been affected by premium regulations related to unexpired risks in 2018 as well as in 2019. Adjusted for these, premiums earned increased by 2.4%.
Premiums in the private segment increased by 2.9%. Adjusted for premium regulations in illness and accident, premiums earned declined 0.5pp affected by a declining illness and accident portfolio.
The claims trend was affected by lower run-off profits of DKK 53m, representing a 2.3pp deterioration.
The claims trend adjusted for run-off, weather-related claims, large-scale claims and change of risk margin deteriorated 3.2pp to 73.7 in Q4 2019.
The deterioration of the adjusted claims trend of 3.2pp is primarily due to a negative claims trend in illness and accident (1.7pp), and by the fact that the yield curve used for discounting the reserves was lower compared with Q4 2018 having a negative impact on the claims trend of 1.8pp (1.2 pp excluding illness and accident). Furthermore, the claims trend was adversely impacted by a higher level of rain and burst waterpipes claims in house insurance (2.2pp).
The combined ratio was 88.3 in Q4 2019 (Q4 2018: 81.7). Excluding run-off profits, the combined ratio was 92.1 (Q4 2018: 88.1).
Premiums earned increased by 1.1% to DKK 5,114m. Premiums were negatively impacted by the termination of the distribution agreement with Danske Bank at the end of Q2 2019 (0.9pp). Furthermore, premiums were negatively impacted by illness and accident (0.5pp).
The claims trend deteriorated by 3.5pp to 70.9. Compared with 2018, the claims trend before run-off was primarily negatively influenced by a higher claims level on illness and accident (1.2pp). House insurance was
Investment return after return and revaluations of non-life insurance provisions (157) 210 (85) 64
On the other hand, the claims trend was influenced by a positive development in personal injuries within motor insurance and theft.
Excluding run-off, the combined ratio deteriorated to 90.9 2019 (2018: 88.0).
From 1 January 2020, Topdanmark and Nordea have started a non-life agreement for distribution on the Danish market. It is a referral concept in which Nordea will refer costumers to Topdanmark, which will provide the final guidance and sale.
Life insurance in 2019 The result from life insurance was a profit of DKK 327m in 2019 (2018: profit of DKK 228m).
Developments in 2019 The profit improvement of DKK 99m comes primarily from investment return on shareholders’ equity and insurance risk. Equity investment return improved as a result of developments in the financial markets, and the result of insurance risk has been improved owing to non-recurring adjustments and gains resulting from disability results better than expected.
Sales and administration were positively impacted by DKK 17m in Q3 as reserves for future expenses were reduced.
Trend in premiums Gross premiums increased by 9.8% to DKK 11,106m in 2019, of which premiums on unit-linked pension schemes were DKK 10,027m, representing a 14.4% increase compared to 2018.
Regular premiums increased by 14.7% to DKK 3,275m in 2019. Single premiums were DKK 7,831m in 2019, representing a 7.9% increase.
Adjusted for the termination of the distribution agreement with Nykredit, gross premiums increased by 11.1% and regular premiums by 17.2%.
Premiums on investment contracts are not included in the gross premiums in the income statement but recognised in the balance sheet representing DKK 747m (2018: DKK 1,415m), which is a decrease of 47.2%.
The total gross premiums within life insurance, including premiums on investment contracts represent DKK 11,852m (2018: DKK 11,526m), which is an increase of 2.8%.
Topdanmark's policy is to accept a certain level of financial risk, given its strong liquidity and stable, high earnings from insurance operations. Among other things, Topdanmark has invested in equities, properties and CDOs to improve the average investment return.
The equity exposure was DKK 852m excluding associated companies but including the impact of derivatives. The equity portfolios are well diversified with no large individual positions.
The class “Unlisted equities and hedge funds” includes private equity positions (DKK 48m) and positions in hedge funds where the investment mandates aim at positioning in the credit market (DKK 215m).
The property portfolio mainly comprises owner-occupied properties (DKK 834m). The properties are valued in accordance with the rules of the Danish FSA (Danish Financial Supervisory Authority) i.e. at market value taking the level of rent and the terms of the tenancy agreements into consideration. 98% of the property portfolio are currently let when adjusting for properties under construction or being converted for other purposes.
“Money Markets etc.” comprises money market deposits, intra-group balances, the result from currency positions and other returns not included in the other classes.
At the end of Q1 2019, the changed methodology reduced the Danish VA by approx. 30bp compared with a VA calculated with the former methodology. The VA was 45bp at the beginning of the year and 15bp at the end of Q1 2019.
The Danish VA fell further throughout Q2 2019 to 6bp by the end of first half-year and stayed at that level during Q3. Realignment of the underlying mortgage index lifted the VA in October and after having gained some additional bp it ended 2019 in 19 bp. The revised methodology in assessing the Danish VA makes it positively correlated to changes in the yield curve. The substantial yield curve drop in 2019 and the subsequent prepayment activity on Danish mortgage bonds account for the major part of the difference between the return on government and mortgage bonds, and the return on nonlife insurance provisions.
The profit of the parent company increased by DKK 6m to DKK 60m in 2019.
Profit forecast model Traditionally, Topdanmark does not publish actual profit forecasts, but instead, the expected level of results provided that a number of assumptions about the return in the financial markets are met. The return on financial assets changes on a daily basis, and consequently the profit in Topdanmark's profit forecast model will already deviate from actual expectations by the time it is published. Therefore, set out at www.topdanmark.com → Investors → Investment case → Risk management, we provide additional information on how changes in the assumptions underlying the profit forecast model will affect the results.
• The distribution agreement with Nordea will have a positive impact on premium growth of approx. 0.5pp
• The automatic premium indexing in the private segment will be 2.0% in 2020. Approx. 70% of Topdanmark’s premiums earned are comprised by automatic premium indexing. Thus, the premium effect of the automatic premium indexing on non-life insurance is approx. 1.4%.
Topdanmark still assumes premium growth for 2020 in non-life at about the same level as the premium growth in 2019 which was 2.9%.
• An expense ratio of approx. 16 • A level of interest rates corresponding to the interest rate curve on 30 September 2019.
Since the announcement of the Q3 Report 2019, the discounting rates (including changes in VA) have increased relatively to the guidance for 2020 in the Q3 Report 2019, representing a 0.7pp improvement of the combined ratio.
On the other hand, costs on investing in Topdanmark’s digital transformation will be somewhat higher than previously assumed. Consequently, the expense ratio for 2020 is expected to increase slightly from 16.0 in 2019.
Furthermore, the expected claims trend in illness and accident has deteriorated.
The assumed combined ratio for 2020 therefore remains unchanged at about 90, excluding run-off.
Compared with the profit of DKK 327m in 2019, the assumed result in life insurance is negatively impacted due to additional costs on the new core IT system (DKK 25m), one-off gains on sales and administration in Q3 2019 (DKK 17m), and lower assumed investment results (DKK 130m).
Consequently, Topdanmark assumes a pre-tax result for life insurance of DKK 140-170m.
The profit forecast model assumes an annual 7.0% return on equities, and unchanged foreign exchange rates from the level as at 30 December 2019.
At the end of 2019, Topdanmark’s solvency ratio was 177. Topdanmark assesses that with this solvency ratio, the Company will be able to maintain normal operations and implement planned measures even in the event of, for example, another collapse in the financial markets as in 2008.
Parent company etc. 60 40 – 50 Pre-tax profit 1,987 1,220 – 1,360
Topdanmark's risk management function identifies, assesses and quantifies risks. It reports to the Risk Committee, which is responsible for risk policies, risk limits, solvency calculation, capital plans, Topdanmark's own risk and solvency assessment (ORSA), and Topdanmark's partial, internal model for non-life insurance risks. The members of the Risk Committee are the CFO of the Group, the head of the Compliance Function and the heads of the primary risk areas, which are: Asset Management, Statistical Services, Reinsurance, Finance and Life Actuarial Services.
Provisioning risk Provisions on ow n account − 1% increase (97) (98)
Solvency calculation and capital requirements Solvency II gives the companies the opportunity to fully or partially develop their own internal risk model for solvency calculation. Topdanmark uses a partial internal model developed in-house to calculate the non-life risk. This model, approved by the Danish FSA, provides the basis for including non-life risks in Topdanmark's solvency calculations.
Capital structure and ownership Topdanmark's Board of Directors has an authorisation granted in the Articles of Association to increase the Company's share capital, to raise convertible loans and/or issue warrants. The issues may be with or without pre-emptive rights for the Company's shareholders. The authorisations are limited to a total of 2,500,000 shares. They expire on 12 April 2023.
At the end of 2019, Topdanmark’s share capital totalled DKK 90,000,000 divided into shares of DKK 1 each, corresponding to 90,000,000 voting rights. As at 3 February 2020, Topdanmark held 2,812,584 shares representing 3.13% of the share capital.
Topdanmark's Board of Directors has adopted policies on diversity. “Policy on diversity at Board level” and “Policy on diversity and the under-represented gender in the management body of Topdanmark” has been published on Topdanmark’s website. More information on diversity including “Women in management” is available in the CSR Report 2019.
Directors. The evaluation of overboarding is based on the guidelines prepared by ISS and additionally, a subjective evaluation is made. None of Topdanmark’s Board members are considered to be overboarded.
Severance pay In order to ensure unconditional loyalty, focus and performance for the Topdanmark Group up to a potential takeover, Topdanmark has reached an agreement with some members of the Executive Board according to which, under certain circumstances, they will receive compensation in the form of an extended period of notice and increased severance pay, if they resign or are made redundant or their post is eliminated in connection with Topdanmark and/or the company in the Topdanmark Group with which the person concerned is employed being taken over by or merged with a company outside of the Group, or if one or more owners take control of Topdanmark and/or the company in the Topdanmark Group with which the person concerned is employed.
On 23 September 2013, the EU Commission decided that If P&C Insurance Holding Ltd (publ) was in fact in control of Topdanmark. As a consequence of this special situation, it has been agreed that Topdanmark’s Executive Board and some members of the Senior Management earn compensation over three years, representing six months' salary for each qualifying year.
The earning of compensation has taken place. Two members of the present Executive Board and two members of the Senior Management are covered by this agreement, and the compensation will be paid on resignation.
Remuneration structure Topdanmark's remuneration policy is intended to optimise long-term value creation at a group level. The annual general meeting has adopted "Remuneration policy of the Topdanmark Group including general guidelines for performance-related pay."
In addition to the salary policy, the remuneration policy also includes the general guidelines for performancerelated pay, its pension policy and its guidelines for the granting of severance pay. Each of these guidelines is applicable to the Topdanmark Group.
The remuneration policy covers Topdanmark's Board of Directors, Executive Board, other material risk takers and, as provided by legislation, employees involved in control functions and audit work. If specifically stated, Topdanmark's remuneration policy also covers its executive team, comprising a number of the heads of business sectors and administrative departments (the Senior Management) and certain other employees, at the discretion of the Board of Directors. The remuneration policy etc., as adopted by the annual general meeting, is available on www.topdanmark.com → About Topdanmark → Corporate Governance → Remuneration structure.
The remuneration package of the Executive Board and the Senior Management is based upon a fixed basic salary. A fixed share thereof, 10%, is paid as share options. As a partial alternative or a supplement to the fixed basic salary, the Board of Directors may decide to grant individual bonuses for one or more members of the Executive Board, such bonuses being dependent on the Director’s fulfilment of a number of performance goals set by the Board of Directors. The maximum variable salary for a Director will represent 50% of the Director’s fixed basic salary including pension. The determination of the fixed basic salary paid to the Executive Board and the Senior Management is based on a specific assessment of the employee. In its assessment Topdanmark includes, among other factors, their position, characteristics and performance.
Reference is also made to the Topdanmark Group's remuneration report 2019.
Besides the revolving scheme referred to above, a further 74,500 share options have been granted for 2020 to a number of other executives who have made a special effort or otherwise contributed extraordinarily to value creation in the Company.
Topdanmark’s Remuneration Report for 2019 provides additional information on remuneration in Topdanmark and Topdanmark’s option scheme. Detailed information is available on www.topdanmark.com → Investors → Reports and presentations → Remuneration reports.
The recommended dividend distribution represents a dividend yield of 5.4 and a dividend of DKK 17 per share.
The distribution of dividend will take place immediately after the annual general meeting on 2 April 2020.
The agenda for the Annual General Meeting will be published in the period 26 February to 11 March 2020.
AGM 2 Apr 2020 Q1 2020 Interim Report 24 Apr 2020 2020 Half-year Report 17 July 2020 Q1-Q3 2020 Interim Report 23 Oct 2020 Announcement of 2020 Annual Results 22 Jan 2021 2020 Annual Report 18 Feb 2021
Previous positions held: 1994-1997: Financial Controller, Project Manager and Head of Financial Control, Trygg-Hansa 1997-1999: Head of Control, Skandia P&C 1999-2001: Senior Vice President, Head of Business and Financial Control, If P&C Insurance Ltd 2002-2008: CFO, If P&C Insurance Ltd 2008-2019: Deputy CEO, If P&C Insurance Holding Ltd.
Offices held: Member of the Board of Directors of: • If P&C Insurance Holding Ltd. • Nordax Bank AB (publ).
Member of: • Group Executive Committee of Sampo • The Audit Committee, Remuneration Committee and Nomination Committee of Topdanmark.
Member of: • Audit Committee of FLSmidth Group • Finance, Risk & Audit Committee of Bavarian Nordic
Expertise and qualifications: The Board has defined the required competencies and qualifications for board members of Topdanmark. Among these, Anne Louise Eberhard possesses knowledge and experience of the following: Management experience from other financial businesses, board assignments in financial businesses, organisation, strategic management, financial and insurance reporting, risk management and risk assessment, sales for the private market, sales for the professional market, marketing and branding, outsourcing, finances, own funds, solvency and minimum capital requirements, rules of internal models, auditing, financing and investments, regulatory environment, compliance, IT and IT security, digitisation, recruitment and human resources.
Member of: • Audit Committee of LEO Pharma • Investment Committee of LEO Fondet (Chairman) • Audit Committee of Topdanmark.
(Finland) • Finland Chamber of Commerce • Alma Media Corporation (Deputy Chairman).
Member of: • Group Executive Committee of Sampo. • Audit Committee of Alma Media Corporation.
Expertise and qualifications: The Board has defined the required competencies and qualifications for board members of Topdanmark. Among these, Petri Niemisvirta possesses knowledge and experience of the following: Management experience from other financial businesses, board assignments in financial businesses, organisation, strategic management, insurance operations, long-tail business (premiums, provisions, run-off), financial and insurance reporting, general statistics, risk management and risk assessment, sales for the private market, sales for the professional market, marketing and branding, finances, own funds, solvency and minimum capital requirements, auditing, financing and investments, regulatory environment, compliance, digitisation, recruitment and human resources.
Previous positions held: 1996-2002: Various positions including Associate Partner, McKinsey & Company, Inc., Norway/Europe 2002-2004: Head of Corporate Strategy, If P&C Insurance Ltd. (publ) 2004-2005: Head of Industrial Underwriting and Claims, If P&C Insurance Ltd (publ) 2005-2013: Head of BA Industrial, If P&C Insurance Ltd (publ) 2013-2019: Group Executive Vice President, Head of BA Private, If P&C Insurance Ltd (publ).
Managerial responsibilities: • Business Development • Programme Delivery & Execution Leaders • Technology & Solutions.
Change in the life insurance provisions and profit margin (3,680) (6,197) (6,232) (3,352) (13,820)
Combined ratio excl. run-off profits 91.1 90.4 85.8 87.5 88.3 Relative run-off profits, net of reinsurance (%) 3.0 3.7 2.7 2.8 3.5
LIFE INSURANCE** Rate of return related to with-profit products (%) 1.7 5.2 4.6 (0.4) 7.2 Rate of return related to unit-linked products (%) 5.4 10.3 8.6 (6.1) 16.3 Risk on return related to unit-link products - 4.5 4.5 4.5 4.5 * Before bonuses and rebates.
** Ratios on life insurance are calculated for Topdanmark Livsforsikring A/S. In 2016 the Executive Order on Financial Reports was adapted Solvency II. In 2018 Topdanmark changed the classification of contracts in life insurance. To the extent possible, comparatives were restated.
Claims paid (6,045) (6,503) Reinsurance cover received 362 345 Change in the provisions for claims (23) 376 Change in risk margin 31 18 Change in the reinsurers' share of the provisions for claims 56 (53) Claims incurred, net of reinsurance 4 (5,619) (5,817)
Income from associates 18 161 165 Income from investment properties 9 45 135 Interest income and dividends etc. 1,803 2,301
Return and revaluations of non-life insurance provisions 11 (86) (616) Investment return transferred to life insurance business 2,326 (8,357) Other income 23 19
Operating equipment 116 113 Owner-occupied properties 853 834 TOTAL TANGIBLE ASSETS 16 969 948
Loans guaranteed by mortgages 6 6 Deposits with credit institutions 4,380 2,745
Receivables from policyholders 262 265 Receivables from insurance companies 197 151 Receivables from associates 365 286 Other receivables 281 225 TOTAL RECEIVABLES 1,740 1,512
Share capital 90 90 Revaluation reserve 14 0 Security fund 1,146 1,146 Other reserves 67 72 Total reserves 1,213 1,218 Profit carried forward 3,349 3,559 Proposed dividend 1,350 1,530 TOTAL SHAREHOLDERS' EQUITY 6,016 6,397
Gross premiums 10,164 10,942 Claims and benefits (4,094) (4,138) Pension return tax (486) (122)
Financing Dividend paid (1,637) (1,300) Exercise of share options 79 88 Amounts due to credit institutions 199 (87)
Shareholders' equity at 31 December previous year 90 13 1,146 64 3,168 1,710 6,191
Dividend paid (1,710) (1,710) Dividend, own shares 73 73 Share-based payments 48 48 Exercise of share options 79 79
Profit for the year 5 12 1,530 1,547 Other comprehensive income (14) (14) Total comprehensive income for the year (14) 5 12 1,530 1,533
Tax effects (63) (49) Usable share, subordinated loan tier 1 400 400 Usable share subordinated notes 1,355 1,353 Own funds 6,509 6,660
Segment information income statement 1 Segment information balance sheet 2 Gross premiums earned - non-life insurance 3 Claims incurred, net of reinsurance - non-life insurance 4 Technical result - non-life insurance 5 Gross premiums written - life insurance 6 Claims and benefits paid - life insurance 7 Change in life insurance provisions 8 Income from investment properties 9 Revaluations 10 Return and revaluations of non-life insurance provisions 11 Other expenses 12 Taxation 13 Earnings per share 14 Intangible assets 15 Tangible assets 16 Investment properties 17 Equity investments in associates 18 Investment assets related to unit-linked products 19 Reinsurers' share of the provisions for unearned premiums 20 Reinsurers' share of the provisions for claims 21 Deferred tax 22 Other subordinated loan capital 23 Provisions for unearned premiums og profit margin - non-life insurance 24 Life insurance provisions with-profit products 25 Life insurance provisions unit-linked products 26 Profit margin, life insurance and investment contracts 27 Provisions for claims 28 Technical basis for risk allowance and shadow account 29 Expenses 30 Auditors' fee 31 Staff costs 32 Related parties 33 Financial assets 34 Financial liabilities 35 Collateral relating to financial assets and liabilities 36 Sale of affiliate 37 Analysis of assets and their return - life insurance 38 Return and risk - unit-linked products 39 Number of shares 40 Own shares 41 Collateral 42 Contingent liabilities 43 Group companies 44 Other disclosures 45 Risk factors 46 Accounting policies 47
Pension return non-life insurance (4) 4 0 Return and revaluations of non-life insurance provisions (86) (86) Transferred to technical result 2,326 2,326
Life insurance Gross premiums written 11,106 11,106 Allocated investment return 8,357 8,357 Pension return tax (1,094) (1,094) Benefits and change in provisions (17,953) (17,953)
Note 3. Gross premiums earned - non-life insurance Gross premiums written 9,205 9,494 Change in provisions for unearned premiums 35 1 Change in profit margin and risk margin (43) (32) Gross premiums earned 9,197 9,463
Gross premiums earned, direct business, by location of the risk: Other EU-countries 7 7 Other countries 2 1
Run-off result, net of reinsurance 210 125 (15) (29) (2) 211 Claims provisions, net of reinsurance 3,341 3,527 68 94 6,033 6,112
Run-off result, net of reinsurance 124 211 0 (1) (28) (28) Claims provisions, net of reinsurance 1,226 1,014 139 145 605 631
Note 5. Technical result - non-life - continued 2018 2019 2018 2019 2018 2019
Run-off result, net of reinsurance 13 (3) 18 7 12 (65) Claims provisions, net of reinsurance 481 484 57 51 414 445
Run-off result, net of reinsurance 13 1 8 5 353 433 Claims provisions, net of reinsurance 36 37 75 53 12,476 12,593
Note 6. Gross premiums written - life insurance - continued Investment contracts (recognised in the balance sheet): Regular premiums 69 46 Single premiums 1,346 701
Number of policyholders at 31 December: Insurance contracts: Individual policies 83,805 89,790 Policies which are part of a tenure 51,218 58,680 Group life 88,375 86,241 Investment contracts: Individual policies 8,809 8,952 Policies which are part of a tenure 1,604 942 The investment contracts do not have guarantees. At the implementation of a new administration system, the distribution of numbers insured has been changed, thus policies for pensioners and customers with paid-up policies are considered individual policies and unlike hitherto as policies part of a tenure. The comparative figures have been changed.
Note 7. Claims and benefits paid - life insurance Claims payable on death 96 137 Claims payable on invalidity 1 1 Claims payable on maturity 137 141 Pension and annuity payments 599 592
Note 8. Change in life insurance provisions With-profit products 758 (455) Unit-linked products (4,076) (13,304) Change in life insurance provisions (3,318) (13,759)
Note 9. Income from investment properties Rental income 197 246 Operating expenses from properties rented out (131) (103) Operating expenses from properties not rented out (9) (1) Gross profit 57 142 Administrative expenses (12) (7) Income from investment properties 45 135
Investment assets related to unit-linked products: Equity investments (1,238) 4,679 Unit trusts (234) 300
Revaluations of financial assets and liabilities at fair value through profit or loss (4,086) 6,557 Of which revaluation of derivatives transferred to claims incurred 118 149 Investment properties 97 328
Note 11. Return and revaluations of non-life insurance provisions Amortisation Provisions for unearned premiums and profit margin (4) 9 Reinsurers' share of provisions for unearned premiums 0 (1) Provisions for claims (108) (40) Risk margin (1) (0) Reinsurers' share of the provisions for claims 2 1
Revaluations Provisions for unearned premiums and profit margin 2 (27) Provisions for claims 24 (554) Risk margin 0 (7) Reinsurers' share of the provisions for claims (1) 4
Calculated tax on profit for the year, 22% 374 437 Adjusted for the tax effect of: Returns on shares etc. not liable to tax (1) (3) Non-deductible expenses 7 7 Prior year adjustment (8) (1)
Goodwill and development projects under construction are subjected to an impairment test at the end of the year. Goodwill: Goodwill relates primarily to the purchase of non-life insurance portfolios in 1999.
Note 16. Tangible assets Operating Ownerequip - occupied 2018 ment properties Total
The weighted average of the rates of return on which fair value of individual properties were based 5.3% 5.3%
Carrying amount if the properties had been valued at cost less depreciations 715 716
Investment properties are recognised in the balance sheet as follows: Investment properties 3,830 4,034 Investment assets related to unit-linked products 307 898
The weighted average of the rates of return on which fair value of individual properties were based 5.5% 5.0%
The basis of the measurement is an expected annual operating return and rate of return. The rate of return used in the valuation spans from 4.0% to 9.0% (2018: 4.5% to 9.6%).
An increase in the required rate of return of 0.5pp will reduce the total fair value by 331 476
Property Carlsberg Byen P/S, Copenhagen 23 development 1,918 125 Havneholmen P/S, Kgs. Lyngby 50 Property 986 29 Margretheholm P/S, Frederiksberg 50 Property 510 162 Bornholms Brandforsikring A/S, Rønne 27 Insurance 268 22 P/S Ejendomsholding Banemarksvej, Odense 40 Property 112 10 P/S Ottilia, Copenhagen 50 Property - -
Note 19. Investment assets related to unit-linked products Equity investments 14,560 21,588 Unit trusts 1,758 541
Investment properties 307 898 Investment assets related to unit-linked contracts 27,890 36,104
Reinsurers' share of the provisions for unearned premiums at 31 December 92 95
Net present value of expected future cashflows 22 66 Profit margin 70 29
Reinsurers' share of the provisions for claims at 31 December 527 478
Note 24. Provisions for unearned premiums and profit margin - non-life insurance Provisions for unearned premiums at 1 January 1,856 1,819 Profit margin at 1 January 751 807
Gross premiums written 9,205 9,494 Gross premiums earned (9,197) (9,463) Change in risk margin 9 12
Note 25. Life insurance provisions with-profit products Life insurance provisions direct business at 1 January 24,063 23,134 Profit margin at 1 January 88 82 Total insurance provisions at 1 January 24,151 23,216 Collective bonus potential at 1 January (2,270) (1,632) Accumulated revaluation at 1 January (1,654) (1,466) Retrospective provisions at 1 January 20,227 20,118 Gross premiums written 1,346 1,078 Addition of return 580 334 Claims and benefits (1,774) (1,643) Expense loading inclusive of expense bonus (100) (91) Risk gain after allocating policyholders' risk bonus (23) (61)
Portfolios analysed by guaranteed interest rates Guaranteed Guaran- Individual Collective Life interest teed bonus bonus insurance 2018 rate benefits potential potential provisions
Cost groups Customers' share of administration expenses after addition of expense bonus 68 64 Insurance operating expenses (196) (209) Result of sales and administration (128) (145) Result of sales and administration (%) (0.6) (0.7)
Note 26. Life insurance provisions unit-linked products Insurance Investment 2018 contracts contracts Total
Net of reinsurance Provisions at 1 January 12,544 12,476 Claims paid relating to previous years (2,586) (2,882) Change in expected claims payments relating to previous years (run-off) (353) (433) Claims paid relating to this year (3,096) (3,276) Expected claims payments relating to this year 6,003 6,267 Inflation hedging (118) (149)
Note 28. Provisions for claims - continued Claims liabilities analysed by claims year 9 years later 6,779 Less paid incl. inf lation hedging 6,330 6,611 5,703 6,917 5,755 5,679 5,339 4,933 4,865 3,359 55,491 Provisions before discounting
Net of reinsurance 9 years later 6,420 Less paid incl. inf lation hedging 5,971 5,555 5,374 5,631 5,380 5,334 4,950 4,742 4,579 3,280 50,796 Provisions before discounting
Note 29. Technical basis for risk allowance and shadow account Customers' share of technical basis for risk allowance (378) 629 Share of technical basis for risk allowance allocated to shareholders' equity 58 139 Insurance technical result (320) 767
Social security costs 36 37 Payroll tax 250 256 Share options 8 8 Employee shares 38 50
Share options Topdanmark's share option scheme comprises the Executive Board and senior executives. The strike price has been fixed at 110% of the market price on the last trading date in the prior financial year (average of all trades). The options may be exercised 3-5 years subsequent to the granting. The scheme is settled by shares (equity instruments).
Note 32. Staff costs - continued Number of options which could be exercised on 31 December ('000) 163 106
Note 33. Related parties Possessing an ownership interest of 48.24% of the shares outstanding, Sampo plc, Fabianinkatu 27, Helsinki, Finland has a controlling influence on Topdanmark A/S. Related parties with material influence comprise the Board of Directors, the Executive Board and their families.
Thus, paid remuneration and compensation for present and former members of the Executive Board amount to DKK 50.5m of which variable remuneration accounts for DKK 2.8m.
Material risk takers Additional to the Executive Board, another 26 (2018: 19) employees have material influence on Topdanmark’s risk profile. Fixed remuneration 37.1 46.9 Variable remuneration 5.8 7.0
Note 33. Related parties - continued Number of shares held by the Board of Directors and Executive Board The information relates to the Board of Directors and Executive Board notified on 31 December.
Executive Board Peter Hermann 821 821 Thomas Erichsen - 1,319 Lars Thykier 450 450 Brian Rothemejer Jacobsen 450 450
Associates Equity investments are disclosed in the balance sheet and specified in the note on equity investments in associates. Balances are disclosed in the balance sheet. Trading takes place under normal market conditions.
Note 34. Financial assets Financial assets at fair value through profit and loss Held for trading: Equity investments 5,412 5,087 Unit trusts 6 6
Designated at fair value, total 31,964 37,951 Total financial assets at fair value through profit and loss 72,593 86,881
Note 34. Financial assets - continued Financial assets at fair value Non-
End of 2018, financial assets for DKK 986m were transferred from Level 1 to Level 2. By far the majority of the transferred assets are traditional Danish mortgage bonds, which after expiry of new issuing in the series in question do not necessarily have a closing price reflecting the fair value.
Financial liabilities at amortised cost Other subordinated loan capital 1,746 1,747 Deposits received from reinsurers 81 69 Debt relating to direct insurance operations 373 194 Debt relating to reinsurance operations 18 26 Current tax liabilities 1 27 Other debt 934 1,867 Total financial liabilities at amortised cost 3,153 3,931 Total financial liabilities 4,098 4,766
Assets related to unit-linked products Land and buildings 441 1,345 10.5 Listed equity investments 10,265 13,834 28.4 Unlisted equity investments 4 0 0.0 Total equity investments 10,270 13,834 28.4 Government and mortgage bonds 3,384 4,926 (0.3) Credit bonds and emerging market bonds 6,418 6,664 4.6
Other investment assets 3,660 6,828 0.0 Assets related to unit-linked products do not include assets chosen by policy holders.
The exposure in listed equity investments has been adjusted by means of financial derivatives and amounts to: 2018 2019 With-profit 3,403 3,101 Unit-linked 12,481 18,469
Note 39. Return and risk - unit-linked products Selected age points in relation Percentage of Return in to time of retirement Years average percentage 2018 to retirement provisions before PAL Risk
Number of shares held to cover the granting of options: 1,086 thousands (2018: 1,293 thousands). Own shares are held solely by the parent company.
Note 43. Contingent liabilities Contract liabilities 398 0 Adjustments to VAT liabilities 105 136 Other liabilities 16 4 Capital commitments made to loan funds and private equity funds etc. 609 398 All companies in the Topdanmark Group and other Danish companies and branches in the Sampo Group are jointly taxed with Topdanmark A/S being the management company. Pursuant to the specific rules on corporation taxes etc. in the Danish Companies Act, the companies are liable for the jointly taxed companies and for any obligations to withhold tax from interest, royalties and dividend for companies concerned.
Note 44. Group companies Name Registered office Activity Topdanmark A/S Ballerup Holding Non-life: Topdanmark Forsikring A/S Ballerup Insurance TDP.0007 A/S Ballerup Property Topdanmark EDB A/S Ballerup IT services Topdanmark EDB IV ApS Ballerup IT services E. & G. Business Holding A/S Ballerup Holding Topdanmark Holding S.A. Luxembourg Holding Risk & Insurance Services S.A. Luxembourg Administration
There have been no events in the period from 31 December 2019 until the presentation of the consolidated financial statements which could change the assessment of the annual report.
Life insurance Life insurance contracts with bonus entitlement, unit-linked contracts with no investment guarantees and group life. Most important risks Risk preferences Risk reducing activities Limited loss-absorbing buffers in the event of low interest rates.
Topdanmark's pricing has been aligned with the individual markets and types of customer. In the private and commercial markets, prices are mostly based on standardised rates while major commercial customers are offered more individualised charges.
Customer scoring is used in the private market. The customers are divided into groups according to the expected level of profitability. The customer scoring helps ensure the balance between each customer's price and risk. This intends to ensure that no customer pays too much to cover losses on customers who pay too little.
Topdanmark helps its customers when they require assistance Customers’ satisfaction with visits and email-, telephone- and internet contact is monitored daily to act immediately on each dissatisfied customer enabling us to help the customer and also learn from the incident.
The reason for the merger of the three purchasing functions and the location in Analytics is that in the future Topdanmark wants to make greater use of data-analysis, when the organisation makes purchases. This will ensure the highest possible discount, quality and security when delivering products and services and will provide financial advantages for customers and shareholders alike.
Quality Topdanmark has developed routines for all major claims processes to ensure that they are handled in a uniform and controlled manner. These are supplemented by rules governing the level of professional and financial competence expected of each of the employees in the claims department.
The claims organisation works with the version of the Lean concept used by the service organisations, based on the customer’s needs and focusing on providing the right help in the first contact with the customer.
Examples of short-tail lines are buildings, personal property and comprehensive motor insurance. Long-tail lines relate to personal injury and liability such as workers' compensation, accident, motor third party insurance and commercial liability.
Composition of Topdanmark’s overall provisions for outstanding claims: The much higher provisioning risk in long-tail than in short-tail lines is due to the longer period of claims settlement. It is not unusual that claims in long-tail lines are settled three to five years after notification and in rare cases up to 10-15 years.
The provisions for unearned premiums are based on the latest prognosis for the coming 12 months.
Specific reinsurance cover of DKK 100m for cloudburst takes effect if accumulated annual cloudburst claims exceed DKK 50m. For a claim to be accumulated, the event must exceed DKK 10m. The maximum retention in the event of an extreme cloudburst is DKK 75m plus reinstatement premiums.
Life insurance Loss absorbing buffers in the event of low interest rates Customers’ individual and collective bonus potential is the loss absorbing buffers in life insurance against any losses incurred by customers on investment activities.
IT Group Information Security, reporting to the IT Manager, is responsible for information security.
Outsourcing is increasingly used in Topdanmark. As a consequence, Topdanmark investigates and evaluates the information security with new cooperation and service partners. Topdanmark also monitors the information security with existing partners to prevent Cyber Crime.
The algorithms saved in the robots’ software are based on the experience of expert employees on the subject area. For example, the software calculating prices is adjusted as actuarial adjustments of the tariff in question are made.
Rules comprise all rules, internal rules of Topdanmark's policies and the relevant guidelines as well as all relevant legislation and its sub-rules. Furthermore, rules comprise fixed business practices for the performance of activity in Topdanmark.
The Compliance Function's work comprises the following principal tasks: • Control of compliance • Annual status with all of the Group's divisions and service departments • Reporting on compliance risks to the Executive Board and the Board of Directors • Administration and updating of the Compliance
Topdanmark Group's 2019 Annual Report has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and the additional Danish disclosure requirements of the Danish Financial Business Act on annual reports prepared by listed financial services companies.
Apart from the above, the accounting policies remain unchanged compared to 2018.
Change of accounting estimates The Group has updated the assumptions for measurement of the life insurance provisions. This comprises rate of mortality including expected future life expectancies, disability, termination of premiums and surrenders. The updated assumptions have merely had a marginal impact on the life insurance provisions, the profit for the year and the shareholders’ equity.
One development project taken into use in 2019 is expected to have a useful lifetime of 10 years and is therefore depreciated over 10 years. Hence the maximum expected useful lifetime for development projects has been changed from five years to 10 years.
Development projects under construction which are significant and strategic projects with dedicated internal resources are measured including internal costs from 2019.
Future accounting standards IFRS The IASB has issued a number of new and revised standards and interpretations, which have not yet taken effect and/or been approved by the EU of which the most significant are: IFRS 9 “Financial instruments” came into force on 1 January 2018. However, under certain circumstances, insurance groups may postpone IFRS 9 to 2022 at the time where IFRS 17 “Insurance contracts” will come into force. However, IFRS 17 has not yet been adopted by the EU.
Accounting estimates and judgements In the preparation of Topdanmark's financial statements, estimates and judgements have been made which affect the size of assets and liabilities and consequently the results and shareholders’ equity in this and subsequent financial years.
The five-year summary discloses the most recent financial years' run-off results. The movement in the provisions for outstanding claims and run-off analysed by claims year is shown in the note on provisions for outstanding claims. The note on “Technical result − nonlife ” specifies run-off for the year analysed by line of business. For further details, see Management's review.
Premium provisions Premium provisions are measured based on an estimate of future payments for incidents in the remaining period of cover. A significant uncertain and estimated assessment is involved in the determination thereof. Premium provisions must be seen in connection with the profit margin as an increase in the estimated cashflow will be absorbed by the profit margin up to a combined ratio of 100. Financial estimates and assessments with effect on the result of the year and shareholders’ equity are therefore primarily relevant within businesses with combined ratio of 100 or more, e.g. change of ownership, workers’ compensation and motor liability, where premiums are insufficient for covering expected payments and a risk margin, and consequently provisions to cover losses must be made.
An insurance contract is a contract under which the insurer accepts significant insurance risk from the policyholder by agreeing to compensation if a specified uncertain future event adversely affects the policyholder. Insurance risk is always considered to be significant in non-life insurance. In life insurance, it is considered to be significant when it covers disability including premium waiver or when the contract is with profit.
Expenses Expenses are recognised in the Group’s income statement classified by function. The allocation of expenses, which do not directly relate to a function, is based on an assessment.
rate groups) has been based on their estimated risk on shareholders' equity and on the profit margin determined by the company for the year.
Income statement Premiums earned Gross premiums in non-life insurance comprise those premiums which are due within the financial year.
Premiums earned net of reinsurance are being recognised in line with the distribution of risk over the period of cover. For onerous insurance contracts, the expected loss is included when the contracts are underwritten or when the contracts become onerous.
In life insurance, gross premiums comprise those premiums for insurance contracts, which are due within the year.
Allocated investment return net of reinsurance in life insurance Allocated investment return is calculated as the overall investment return in life insurance net of return relating to illness and accident insurance and shareholders' equity in accordance with the definition of profit reported to the Danish FSA.
Development projects under construction are subjected to an impairment test end of year. The carrying amount is written down to a lower recoverable amount.
IT equipment, other equipment and cars as well as improvements of rental properties are depreciated over their expected useful life of up to five years. Solar cell plants are depreciated over their expected useful life of 25 years.
Market trends and the rates of return of the market are regularly analysed. Each property is assessed annually by the Group's own valuers. No external valuers have been involved.
Equity investments in associates are measured according to the equity method, in accordance with the Group's accounting policies with paid goodwill added.
Financial assets at fair value with any value adjustment through profit and loss are financial assets which either are included in a trading portfolio, are derivatives or at their first recognition are designated in this classification, because the assets are managed and measured on a fair value basis, or because this eliminates or significantly reduces accounting inconsistency.
Receivables at amortised cost At initial recognition receivables are measured at fair value, and subsequently at amortised cost. The receivables are regularly assessed for impairment and written down to a lower recoverable amount. Such impairments are generally made collectively on the basis of a due date analysis. When an individual receivable is considered irrevocable, the impaired amount is transferred from the account for collective allowances.
Reinsurers' share of the provisions for claims has been calculated as the amounts expected to be received from reinsurance companies according to the reinsurance contracts concluded. Expected future payments are discounted using an interest rate structure. The reinsurers' share is regularly assessed for impairment and written down to a lower recoverable amount.
Shareholders' equity Revaluation reserves Gains on the revaluation of owner-occupied properties are transferred to the revaluation reserves net of corporation tax. The reserve will be dissolved if the revaluation is reversed or if the property is sold.
Best estimate of undue premiums for insurance contracts concluded is deducted, considering expected customer defection.
Profit margin is calculated as the difference between expected premiums for future periods of cover for insurance policies concluded and present value of the expected payments included in premium provisions.
Changes in the present value of the expected payments due to changes in the interest rate curve and amortisation of the profit margin during the period of cover of the insurance contracts, are transferred to “Return and revaluation non-life insurance provisions”.
The future payments to be received and made have been based on the assumed incidents of death, disability, resumption of work, renewal and premium expiry. The mortality rate is calculated by considering the Danish FSA's population mortality rate and Topdanmark's own observed mortality rate. Furthermore, the Danish FSA's assessed improvement in future life expectancy is applied. The other parameters stated are best estimates based on Topdanmark’s observations.
Remaining 60 year old 60 year old Life expectancy man woman Topdanmark Livsforsikring 27.1 29.4 Danish FSA's benchmark 26.3 28.7
Best estimate for unguaranteed benefits is calculated at contribution group level as the group’s collective bonus potential adjusted for risk allowance and positive values of the difference between, on the one hand, the accumulation of the insurance contracts (retrospective provisions) and on the other hand, best estimate of guaranteed benefits of these insurance contracts.
The assessment of other provisions for claims relating to injuries, loss of provider and expenses is based on traditional actuarial triangulation models. Due to the
Ratios Ratios in Financial highlights and Five-year summary have been calculated in accordance with the Danish FSA´s Executive Order on Financial Reports for Insurance Companies and Multi-Employer Occupational Pensions Funds and in accordance with the definitions issued by the Danish Finance Society.
Post-tax profit as a % of shareholders’ equity/return on shareholders´ equity (%) Profit for the year * 100 Shareholders´ equity (average)
Combined ratio Gross loss ratio + net reinsurance ratio + gross expense ratio
Gross premiums earned comprise the line items “Gross premiums written”, “Change in the provisions for unearned premiums”, “Change in profit margin and risk margin” and “Bonuses and rebates”. Gross claims incurred comprise the line items “Gross claims paid”, “Change in the provisions for claims” and “Change in risk margin”. Gross operating expenses comprise “Administrative expenses” and “Acquisition costs”. Reinsurance result comprise reinsurer´s share of the abovementioned line items.
Risk on return related to unit-linked products The ratio is based on the standard deviation of the monthly return related to unit-linked products over the past 36 months. The standard deviation is converted to a risk category in a scale from 1(low risk) to 7 (high risk).
Profit for the year 1,331 1,547 Other comprehensive income from affiliates 1 (14) Other comprehensive income 1 (14) TOTAL COMPREHENSIVE INCOME FOR THE YEAR 1,332 1,533
Note 2. Other expenses Holding expenses 42 41 Other expenses 42 41
Carrying value 398 398 Market value (level 2) 400 400 Interest charges 10 10
Note 8. Related parties Possessing an ownership interest of 48.24% of the shares outstanding, Sampo plc, Fabianinkatu 27, Helsinki, Finland has a controlling influence of Topdanmark A/S. Related parties with material influence comprise the Board of Directors, the Executive Board and their families.
At 31 December, Sampo plc held subordinated notes in Topdanmark Forsikring A/S 405 405
Affiliates At 31 December, If P&C Insurance Ltd, a subsidiary in the Sampo Group, held subordinated notes in Topdanmark A/S 130 133 Expenses charged 32 30 Dividends received 1,850 1,380 Expenses are charged to cover costs incurred. Average effective interest rate on balances is 0.00% (2018: 0.00%). Equity investments are disclosed in the balance sheet and specified in the note on equity investments in affiliates. Balances are disclosed in the balance sheet.
Note 11. Other disclosures The five-year summary, in accordance with Section 91(a) of the Danish Executive Order on Financial Reports for Insurance Companies and Multi-Employer Occupational Pension Funds, is included in financial highlights on page 3. Risk disclosures in accordance with Section 91(b) are included in "Management's review" page 13 in "Risk management " and in note 46 "Risk factors".
The annual financial statements for the parent company Topdanmark A/S have been prepared in accordance with the Danish Financial Business Act, including the executive order issued by the Danish FSA on financial reports for insurance companies and multi-employer occupational pension funds.
Many factors may cause significant deviation from the forecasts and assumptions set out in the annual report. Such factors could be, for example, cyclical movements, changes in the financial markets, the financial effect of unexpected events such as acts of terrorism or exceptional weather conditions, changes in Danish and EU rules, competitive factors in the insurance industry, and trends in the reinsurance market. See also: www.topdanmark.com → Investors → Risk management.
The Board of Directors and the Executive Board have today considered and approved the Annual Report of Topdanmark A/S for 2019.
In our opinion, the consolidated financial statements and annual financial statements give a true and fair view of the Group’s and the parent company's assets, liabilities and financial position at 31 December 2019 as well as of the Group’s and the parent company’s activities and the Group’s cash flow for the financial year 1 January to 31 December 2019.
In our opinion, the consolidated financial statements give a true and fair view of the financial position of the Group at 31 December 2019 and of the results of the Group's operations and cash flows for the financial year 1 January to 31 December 2019 in accordance with International Financial Reporting Standards as adopted by the EU and additional Danish disclosure requirements for listed financial institutions.
Appointment of auditor At the Annual General Meeting on 12 April 2018, we were elected as auditor for Topdanmark A/S for the first time. We have been reelected annually by the Annual General Meeting for a total period of two years up to and including the financial year 2019.
Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements for the financial year 2019. These matters were addressed during our audit of the financial statements as a whole and in forming our opinion thereon. We do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
Measurement of provisions for insurance and investment contracts At 31 December 2019, provisions for insurance and investment contracts amounted to DKK 16.2bn in respect of non-life insurance contracts and DKK 70.6bn in respect of life insurance contracts of these life insurance provisions for unit-linked contracts amounted to DKK 46.9bn.
The interest rate curve applied in measuring the provisions for insurance and investment contracts is also material to the value.
Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Business Act. We did not identify any material misstatement of the Management's review.
Management's responsibilities for the financial statements Management is responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the EU and additional Danish disclosure requirements for listed financial institutions in accordance with the Danish Financial Business Act and for the preparation of parent company financial statements that give a true and fair view in accordance with the Danish Financial Business Act.
Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs and additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management
• Conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Parent Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and the Parent Company to cease to continue as a going concern
ERNST & YOUNG Godkendt Revisionspartnerselskab Business Registration No 30 70 02 28
Lars Rhod Søndergaard Allan Lunde Pedersen State Authorised Public Accountant, State Authorised Public Accountant, MNE no 28632 MNE no 34495