Activities of the Tryg Vesta Group 1 The Group 1 Partnership with Nordea 2
The Group Tryg Vesta Group A/S the second-largest general insurance group in the Nordic region with activities in a number of Nordic and Baltic countries. The Tryg Vesta Group has some 2 million personal customers and 250,000 commercial customers. As at 31 December 2002, the Group had 4,373 employees.
Denmark and Norway are the Group’s primary markets. Tryg is Denmark’s largest general insurer with a market share in excess of 22%, whereas Vesta is the third largest general insurer in Norway with a market share of almost 22%.
In Finland, insurance is written to a Finnish branch of Tryg Forsikring in a close bank assurance collaboration with Nordea AB. The Tryg Vesta Group has had a presence in Poland since 1998, and in Estonia since 2002. Moreover, the Group carries on guarantee insurance operations in Dansk Kaution and reinsurance operations through Tryg-Baltica internationalt forsikringsselskab.
Tryg and the IT company CSC Danmark have signed a letter of intent by which Tryg agrees to outsource its IT operations in a partnership with CSC. The aim is to reach a final agreement by the end of March 2003. The business partnership between Tryg and Nordea will continue unchanged.
The restructuring of the Nordic financial markets has taken place, including strategic alliances between insurance companies and banks in the form of bank assurance partnerships with a view to broadening the range of financial products and increasing distribution power.
Recently, the attitude to welfare society maintenance models has changed to the extent that the demarcation line between private and public providers of welfare is now under heavy discussion. New markets for insurance and private schemes are likely to emerge.
Securities markets The year 2002 was characterised by very bad economic news: Low consumer and business confidence, mounting corporate losses, disappointing industrial output, low investments and high unemployment rates. The poor economic indicators caused the Fed and the ECB, albeit to a lesser extent, to continue their expansive monetary policies.
As the year progressed, the economic recovery expected for 2002 was gradually postponed. Private investments in particular have been long in coming as a result of excess investments in the late 1990s and weak capital markets. The lack of economic growth has led to cost savings throughout the business sector, resulting in increased unemployment in the USA, Europe and Asia.
The gloomy macroeconomic indicators in 2002 had a favourable impact on bond markets. Interest rates fell steadily over the year to the current historic lows.
Despite expansive monetary and fiscal policies, share prices fell throughout the year. In the latter part of 2002, the risk of a war against Iraq was very much in focus. The likelihood of war and the reduced solvency of institutional investors led to lower risk tolerance in the financial markets, thereby contributing to the flight from equity investments to the safe haven of short-term bonds.
The Group’s vision is to be the Nordic region’s most profitable provider of services that offer peace of mind in markets and business areas in which the Tryg Vesta Group chooses to compete.
The Tryg Vesta Group is stakeholder oriented, and to this end it has defined specific goals in relation to its shareholders, customers and employees, and the Group takes an active stand on the surrounding community.
The Tryg Vesta Group will build competences in the health area to be able to provide top quality health schemes and hospital insurance for customers in the Nordic region. These efforts are based on Tryg Rejse og Sundhed, which provides travel insurance to all of the Group’s Nordic customers and operates a 24 hour manned control centre.
A focus area is creating more efficient work processes, including IT work processes and implementation, to reduce time to market and optimise investments in new technology.
Price and cost structure transparency, the right price per risk, balanced risk-taking and an optimum capital structure will further support the value creation and maintain the Tryg Vesta Group’s ability to attract capital and pave the way for developing the Group’s companies.
Over time, each individual business area and customer segment must demonstrate profitability and generate break-even results.
The ability to build core competences and reapply know-how is becoming an increasingly obvious competitive parameter, and the Tryg Vesta Group will exploit its potential in this area. The Group will offer its employees opportunities to participate in local and Nordic training activities – naturally with a global focus.
The Tryg Vesta Group will set up a common management training programme and management development model for the Group’s 500 Nordic managers and executives. The Group will also ensure the continuous training of insurance professionals. Efforts will be made to set up local and trans-Nordic forums for experience sharing and transfer of competences.
The Tryg Vesta Group aims to be an attractive workplace. An attractive workplace is an all-encompassing organisation leaving room for differences in age, gender, ethnic background, education/training, nationality, religion and stage in life.
The investment policies of the Tryg Vesta Group are coordinated, but they are not identical, as investments are exclusively or to a large extent placed in the local capital markets in accordance with the legislation of the country in which the company is based.
The investment strategies defined in the Group are primarily carried out by way of external portfolio management agreements with Nordea concerning bonds, shares, cash funds and to some extent property. Based on the investment policies, the Tryg Vesta Group handles the management of asset mixes, benchmark determination, duration limits, limits on the geographic distribution of assets, types and risk profile of bonds, shares and property, respectively. Investments in unlisted securities are handled exclusively by the Tryg Vesta Group.
Each individual business unit is responsible for customer relationships, employees and performance, whereas common overall strategies, policies and financial targets are defined by the Group.
The personal insurance area covers around 730,000 private households and 1.1 million individuals. Distribution of insurance to the personal customer segment is primarily effected through Tryg’s service centres and Nordea’s Danish branches and by way of third-party distribution (group schemes, car dealers, estate agents etc.).
Customer concepts are developed on an ongoing basis to increase the share of full-service customers holding more than one insurance policy with the company. In addition, the range of insurance solutions and related services is broadened through additional distribution channels, including bank assurance and e-business. Tryg Rejse og Sundhed offers health products in a rapidly increasing market.
Vesta Vesta is Norway’s third-largest general insurer with a market share of almost 22%. At year-end 2002, Vesta had approximately 1,500 employees. In 2002, the four largest general insurers in Norway wrote 93% of the total volume of general insurance premiums. Vesta Forsikring acquired Allianz Forsikring (Norwegian branch of Forsikringsaktieselskabet Allianz Nordeuropa) in 2001 and Zurich Forsikring’s (Norwegian branch/general agency of Zurich Insurance Company in Switzerland) Norwegian activities in 2002.
Vesta offers both personal and commercial insurance through 40 service centres and 80 franchise offices throughout Norway and by way of third-party distribution (car dealers, estate agents, insurance brokers etc.). Compared with Tryg, the headcount and expense ratio are affected by the use of franchising as a means of distribution and by the increased number of captive schemes. In accordance with the Group’s overall distribution strategy, and based on Tryg’s positive experience, distribution through banks is now being introduced in Norway.
Other activities The Tryg Vesta Group furthermore carries on general insurance activities in Poland, Estonia and Finland. In 2002, these activities accounted for approximately 3% of total premium earnings in the Tryg Vesta Group.
On 1 July 2002, Tryg i Danmark smba acquired all shares in Tryg Vesta Group A/S from Nordea.
Tryg Forsikring A/S and Vesta Forsikring AS have previously carried on insurance business within general as well as pension and life insurance lines. Prior to transferring the shares in the three abovementioned companies to Tryg Vesta Group A/S, the life and pension activities, operated in separate life insurance companies, were spun off to Nordea AB or companies of the Nordea Group.
Tryg Forsikring A/S, Vesta Forsikring AS and Nordea Kindlustuse Eesti emerged from the spin-off as pure general insurance providers.
The banks have extended a loan of DKK 1.1bn in total to be repaid by the end of September 2003. The loan is expected to be replaced by DKK 1.1bn worth of bonds.
Operational finance for Tryg Vesta Group A/S, including payment of interest, is provided by way of dividends from the subsidiary undertakings.
Share capital upon formation Non-cash contribution Capital increase Loss for the year
Tryg i Danmark smba Tryg i Danmark smba (TiD), a limited liability company, is the sole shareholder of Tryg Vesta Group A/S. TiD was established in connection with the conversion of the then mutual Tryg Forsikring companies into public limited companies in 1991, on which occasion TiD became owner of the Danish insurance activities.
According to the articles of association, the objects of the company are to carry on or support, directly or indirectly, activities that benefit Danish policyholders, including claims prevention, prophylaxis, provision of safety and peace of mind, as well as activities that benefit the general public and activities that provide quality of life. In addition, the company may hold shares, directly or indirectly, in one or more companies whose objects are to carry on financial activities in accordance with the legislative rules in force from time to time.
The initial financial year of the Tryg Vesta Group after its establishment on 28 January 2002 was characterised by the very substantial acquisitions of subsidiary undertakings on 28 June 2002 and by the fact that goodwill on these acquisitions was amortised in full at the time of acquisition. Furthermore, results were impacted by the still unsatisfactory, albeit improved, operating results of the acquired subsidiary undertakings in the second half of 2002.
Claims ratio, net of reinsurance 82.9 Expense ratio, net of reinsurance 25.6 Combined ratio 108.5
The Group’s expense ratio of 25.6%, net of reinsurance, in the second half of 2002 was in line with that of the same period last year. However, underlying this figure are major falls in the expense levels of both Tryg and Vesta, while Tryg-Baltica international, the wholly-owned subsidiary of Tryg Forsikring, saw rising costs due to strengthened provisions for costs in connection with the portfolio of business in runoff.
The Group recorded a gain of DKK 93m on investment activities after transfer to insurance activities in the second half of 2002. The gain was impacted by a negative return on equities of DKK 489m or minus 20% and a positive return on bonds of DKK 937m or 5.8%.
The loss was primarily attributable to a continuing unsatisfactory claims performance, particularly in the industrial segment.
Premiums performed very satisfactorily in the second half of the year with 21% growth in gross premiums and 14% growth in premiums, net of reinsurance, relative to the same period last year. The increase was due to premium increases, a positive portfolio growth and the effect of the new Danish act on liability in damages.
Claims performed significantly better in the second half of 2002 than in the year-earlier period. The claims ratio, net of reinsurance, was 83.2%, which was 7.6 percentage points lower than in the same period of 2001.
Expenses performed satisfactorily. The expense ratio, net of reinsurance, of 21.5% in the second half of 2002 was 1.4 percentage points lower than in the same period of 2001, primarily because it was possible to contain costs despite the rising volume of business by general cost constraints and a reduction in staff.
Equalisation provisions for windstorm and large losses were increased by DKK 93m in the second half of the year, standing at DKK 245m at year-end 2002, while outstanding claims provisions for workers’ compensation insurance were increased by DKK 46m.
• Premium increases • Stricter terms and controls for underwriting • Individual initiatives, including measures to improve the portfolio, premium increases, stricter terms and higher deductibles for the least profitable customers
H2 2002 H2 2001* Gross premiums 3,930 2,778 Technical result -58 129 Profit on ordinary activities before tax 68 161
In connection with the establishment of the Tryg Vesta Group, the individual lines were analysed with a view to focusing on the continuing lines of business. The Energy line, where major losses have developed during 2002 was discontinued in 2001. The reserves for this class have been strengthened to cover the future anticipated detoriation of the account.
H2 2002 H2 2001* Gross earned premiums 1,015 772 Technical result -73 -52 Loss on ordinary activities before tax -73 -43
In addition to the above, the Tryg Vesta Group operates general insurance activities in Poland, Estonia and Finland with gross premiums of DKK 288m.
The Finnish branch did not perform in line with expectations, and measures have been launched to reverse the trend.
The total technical result of these activities amounted to a loss of DKK 51m. The result was affected by initial costs and IT investments.
For the six months, the Group recorded a gain of DKK 611m, or 2.8%, on investment activities before transfer of technical interest. The investment return was affected by a negative return on shares of DKK 489m, equivalent to minus 20%, and a positive return on bonds (including money market placements and similar investments) of DKK 937m, equivalent to 5.8%. The return on the property portfolio was DKK 162m or 5.2% for the six-month period. Returns are calculated inclusive of currency hedges. The Group’s management of currency exposure is described under Exposure on page 21.
Claims ratio, net of reinsurance 63.7 66.4 Expense ratio, net of reinsurance 47.3 43.0 Combined ratio 111.0 109.4 *Unaudited pro forma figures
Bonds The Group invests in bonds in accordance with guidelines adapted to the various countries and companies of the Group.
The proportion of money market placements increased during the financial year as Vesta increased its proportion of such investments. The Norwegian money market was attractive throughout the financial year, providing high interest rates. The key rate of the Norwegian central bank was 6.5% at 31 December 2002.
Norwegian money market, cash etc. 4,650 26.0% Danish mortgage bonds 6,066 33.9% Other corporate bonds 1,897 10.6% Government bonds, excl. eastern Europe 4,633 25.9% Eastern Europe 657 3.7%
Property The investment return on the property portfolio was DKK 162m, of which upward revaluations accounted for DKK 51m. This corresponds to an overall return of 5.2% for the six months. The property portfolio accounted for 14.6% of total investments.
The Group’s new investments in property amounted to DKK 45m in 2002. The occupancy rate was 95.6% in Vesta and 94.7% in Tryg at 31 December 2002. The other foreign companies have no appreciable property portfolios.
Both Tryg and Vesta have relatively large proportions of domestic equities in their portfolios. At 31 December 2002, Danish and Norwegian equities accounted for 45% of the Tryg Vesta Group’s total equity portfolio, while other European equities accounted for just under 40% and US equities for approximately 15%.
The proportion of equities was reduced from 13% to 8% of the total investment portfolio in the six-month period.
Insurance risk The Tryg Vesta Group primarily focuses on profitability when assuming customers’ insurance risks. Important elements are risk analyses in order to ensure that prices are set correctly through tariffs and individual assessments.
The Group intends to leverage its high diversification both in terms of risk and geography as much as possible, and to optimise the relationship between the Tryg Vesta Group’s capital base and reinsurance. This will be done by analysing the Group’s exposure and as far as possible optimising the Group’s reinsurance programme.
The maximum cover under the catastrophe programme has been determined based on analyses of the portfolio risk exposure and on the assumption that a loss of this size occurs less often than once every one hundred years.
The catastrophe programme only covers losses resulting from terrorism in respect of detached houses, holiday homes and residential property, and only up to DKK 1.5bn with the exception of losses caused by the use of biological and chemical weapons.
Reinsurers The Group pursues a policy of cooperating with a broad range of international reinsurers in order to control and diversify the credit risk involved in the reinsurance programme and to avoid becoming dependent on individual reinsurers. This is ensured through regular monitoring of and follow-up on developments in the international reinsurance market.
Market risk The results and shareholders’ equity of the Tryg Vesta Group are impacted by developments in the financial markets as assets are marked-to-market on an ongoing basis. Market risk includes changes in interest rates, equity prices, exchange rates and property prices and the credit risk on bonds, money market investments, mortgage deeds and similar instruments. The provisions are not subject to any appreciable interest-rate sensitivity.
Credit risk The Tryg Vesta Group is exposed to credit risk on bonds and money market placements. The bond portfolio primarily comprises mortgage bonds and government bonds (investment grade). A smaller proportion is made up of corporate bonds.
Bonds as well as money market placements are spread on a large number of issuers in order to minimise credit risk.
With due consideration for earnings, markets and employees, the Tryg Vesta Group’s vision is to be transformed from a conglomerate of companies to be perceived as a single Group, both within the Group and externally.
Specific focus areas for the Tryg Vesta Group in 2003 comprise: • Outsourcing of IT production • Cost savings • Procurement in relation to claims • A new Nordic partnership outside banking and finance • Underwriting guidelines and control environment
Tryg including Dansk Kaution and Tryg Rejse og Sundhed For 2003, Tryg projects a net combined ratio of 102, equivalent to a marked improvement on 2002. The projection is primarily based on the premium increases introduced and measures implemented to improve the portfolio, and on the full effect of the initiatives taken in 2002 feeding through to the financial statements. Furthermore, the continued focus on expenses and the acquisition of the Zurich portfolio will contribute to reducing the expense ratio in 2003.
TBi As a consequence of the very large losses in the London market and the going forward capital allocation model, Tryg-Baltica international has initiated an analysis of the individual lines in order to focus on forward-looking activities. Tryg-Baltica international have therefore decided consolidate the business and consequently the premium income in 2003 will be reduced compared to 2002.
The Group thus expects a technical result in the region of DKK 300m in 2003.
• We want to provide peace of mind to our customers • >90% of our customers return to buy insurance products from the Tryg Vesta Group • Customer satisfaction >80%
The Supervisory Board and the Executive Management have today considered and adopted the consolidated and parent company financial statements and directors’ report.
We propose to the Annual General Meeting that the consolidated and parent company financial statements be adopted.
Adopted by the Annual General Meeting of the company on 21 March 2003.
Opinion In our opinion, the consolidated annual report and the annual report gives a true and fair view of the Group´s and the Company's financial position at 31 December 2002 and of the results of the Group´s and the Company's operations and the Group´s cash flows for 2002 in accordance with Danish Accounting Standards.
To the shareholders of Tryg Vesta Group A/S We have audited the consolidates accounts and annual report of Tryg Vesta Group A/S for the financial year 2002.
The consolidates accounts and annual report is the responsibility of the Company’s Management. Our responsibility is to express an opinion on the annual report based on our audit.
Basis of opinion We conducted our audit in accordance with Danish Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance that the consolidates accounts and annual report is free of material misstatement. An audit included examining, on a test basis, evidence supporting the amounts and disclosures in the consolidates accounts and annual report. An audit also included assessing the accounting policies used and significant estimates made by the Management, as well as evaluating the overall consolidates accounts and annual report representation. We believe that our audit provides a reasonable basis for our opinion.
Opinion In our opinion, the consolidates accounts and annual report gives a true and fair view of the Group’s and the Parent Company’s financial position at 31.12.2002 as well as of the results of the Group’s and the Parent Company’s operations for the financial year 2002 in accordance with the Danish legal requirements to the financial reporting.
In principle, the parent company, Tryg Vesta Group A/S, is subject to the provisions of the Danish Financial Statements Act. As the object of the parent company is to own subsidiary undertakings whose activities are primarily focused on insurance business, the parent company financial statements have been presented in accordance with the Danish Consolidated Insurance Business Act which contains the provisions to which the consolidated financial statements are subject.
Basis of consolidation The consolidated financial statements are prepared on the basis of the financial statements of the parent company and its subsidiary undertakings by adding items of a uniform nature.
Shares in subsidiary undertakings are set off against the proportionate share of the shareholders’ equity of the subsidiary undertakings.
Goodwill arising on acquisitions represents the difference at the time of acquisition between the acquisition price and the proportionate share of the shareholders’ equity of the acquired undertaking made up in accordance with the accounting policies applied by Tryg Vesta Group A/S. The full amount of goodwill is amortised through the income statement in the year of acquisition. Newly acquired undertakings are included in the consolidated financial statements as from the date of acquisition.
Intragroup transactions Intragroup services are settled on a cost-covering basis or on market terms.
Income statement Premiums Earned premiums, net of reinsurance, represent gross premiums during the year, net of outward reinsurance premiums and changes in unearned premiums provisions, corresponding to an accrual of premiums to the period of coverage of the policy.
Bonus and premium rebates Bonus and premium rebates represent reimbursements where the amount reimbursed depends on the claims record, and for which the criteria for payment have been laid down prior to the financial year or when the business was written.
Investment activities Profit from group undertakings includes a part of the total profit and revaluation of shares in subsidiary and associated undertakings. Exchange differences arising on the translation of the net asset value of foreign subsidiary undertakings at the beginning of the year are included under the item “Currency translation adjustment”.
Interest, dividends etc. represent interest earned, dividends received etc. during the financial year. In addition, the item includes realised gains on bonds drawn for redemption and repayments of loans as well as realised gains on the sale of bonds drawn for redemption.
Investment administrative expenses represent all expenses relating to the management of investments. Brokerage and commission are included in the purchase and sales prices of investments.
Tax Tryg Forsikring A/S is jointly taxed with the majority of the company’s subsidiary undertakings. The item “Tax” represents estimated Danish and foreign corporation taxes for the year and movements in deferred tax or tax asset. Tax relating to the jointly taxed income is charged proportionately to the jointly taxed companies generating a profit. Changes in deferred taxes or deferred tax assets are posted in the companies having the liability or the claim.
Investments Land and buildings Land and buildings are stated at estimated market value in accordance with the guidelines issued by the Danish Financial Supervisory Authority. The market value is determined based on a capitalisation of the future operating return of the property. The capitalisation factor depends on the type and location of the property. New developments and property under construction are stated at the cost of acquisition or the cost of production.
Derivative financial instruments Derivative financial instruments, including forward contracts and open securities transactions, are stated at the market value on the balance sheet date. The gross amounts are disclosed in a note to the financial statements.
Deposits received from reinsurers Deposits with ceding undertakings comprise amounts owed to the company in respect of reinsurance business accepted, and retained by the ceding undertaking pursuant to the reinsurance contract.
Debtors Debtors are stated at nominal value less a provision to cover anticipated losses.
Other assets Furniture and equipment, computer hardware and software, cars etc. are valued at historic cost less accumulated depreciation.
Tax asset comprises deferred net tax assets calculated as 30% of the present value of net positive timing differences between accounting and taxable profits, plus tax losses to the extent they are expected to be offset against future taxable income.
Outstanding claims provisions, net of reinsurance, represent amounts to cover claims incurred but not settled at the end of the year, less reinsurers’ share. Outstanding claims provisions are calculated on the basis of information available concerning the extent of the losses plus an amount based on past experience to cover claims incurred but not reported. The provisions include amounts to combat and contain losses and to survey and assess claims.
Provisions for annuities, net of reinsurance, relate to compulsory workers’ compensation insurance in Denmark, which is settled by payment of annuities. The provisions are calculated using actuarial principles at the present value by discounting expected future payments. Other long-tail provisions calculated using statistical methods are discounted.
Provisions for bonus and premium rebates represent amounts expected to be repaid to policyholders in view of the claims experience during the financial year.
Provisions for tax comprise deferred net tax amounts calculated as 30% of the present value of net positive timing differences between accounting and taxable profits less tax losses to the extent that they are expected to be offset against future positive taxable income.
Deposits received from reinsurers Deposits received from reinsurers comprise amounts due in respect of reinsurance business accepted and retained pursuant to the reinsurance contract.
Financial statements of the parent company and the Tryg Vesta Group Income statement
Insurance operating expenses Acquisition costs 0 -1,037 Administrative expenses -52 -1,096 Reinsurance commissions and profit participation 0 322 4 Total insurance operating expenses, net of reinsurance -52 -1,811
Investment expenses Investment administrative expenses -3 -18 Interest expenses -4 -19
Total investment expenses -7 -37 8 Unrealised investment losses 0 -3 Currency translation adjustment -16 -62
Profit/loss on investment activities before transfer to insurance activities -445 611 2 Technical interest transferred to insurance activities 0 -518
Loss for the year -1,679 -1,679 *) Subsidiary undertakings are consolidated as from 28 June 2002.
Investments in group and associated undertakings 12 Shares in group undertakings 4,584 0 12 Loans to group undertakings 702 0
Loans secured by mortgages 0 200 Other loans 0 73 Deposits with credit institutions 0 291 14 Total other financial investments 0 20,188
Other assets Furniture, computers, other equipment, motor cars etc. 0 468 Cash at bank and in hand 14 735
Reinsurers' share 0 -3,965 Outstanding claims provisions, net of reinsurance 0 13,871
Provisions for annuities for workers' compensation insurance Gross provisions 0 1,139 18 Provisions for annuities, net of reinsurance 0 1,139
Provisions for bonus and premium rebates 0 64 20 Other technical provisions, net of reinsurance 0 50
Total liabilities 5,393 30,305 23 Capital adequacy 24 Forward transactions etc. 25 Contingent liabilities 26 Intragroup transactions
Other EU countries 0 155 Other countries 0 4,596 2 Technical interest, net of reinsurance Transferred from investment activities 0 518 3 Claims incurred, net of reinsurance Direct insurance 0 -6,382
Parent company Group 4 Insurance operating expenses, net of reinsurance Commissions relating to direct insurance 0 -219 Other acquisition costs 0 -818 Total acquisition costs 0 -1,037 Administrative expenses -52 -1,096 Gross insurance operating expenses -52 -2,133 Reinsurance commissions etc. 0 322
Gross insurance operating expenses include the following staff costs: Pension costs 0 -37 Other social security costs 0 -97 Payroll taxes etc. 0 -55
Average number of employees (full-time equivalents) during the year 0 4,437
Remuneration to the Executive Management has been paid and disclosed in Tryg Forsikring A/S and Vesta Forsikring A/S and is charged to Tryg Vesta Group A/S through cost allocation.
Of which remuneration for non-audit services: Deloitte & Touche -0.9 -2.8
Which have been allocated to the following items in the accounts: Net realised investment gains/losses 0 60 Net unrealised investment gains/losses 0 -3 9 Net extraordinary expenses Goodwill arising on the acquisition of subsidiary undertakings -1,182 -1,182 Restructuring and phase-out costs 0 -300 10 Tax Tax relating to previous years 0 9 Tax on the year's income 0 57 Withholding tax, foreign shares 0 -1 Change in deferred tax asset 0 -21 *) Subsidiary undertakings are consolidated as from 28 June 2002.
Downward revaluation Addition on acquisition of subsidiary undertakings 0 143 Downward revaluation during the year 0 1 Reversed downward revaluation 0 -9 Balance at 31 December 0 135
Office property 6,5/ 2,2 7,4/ 8,4 8,5/ 10,5 Production and warehouse property 9,0/ - 9,0/ - 9,0/ -
Parent company Group 12 Shares in group undertakings Cost of acquisition Addition on non-cash contributions 5,647 0 Currency translation adjustment during the year 44 0 Capital increase during the year 500 0 Balance at 31 December 6,190 0
Downward revaluation Downward revaluation on non-cash contributions -1,182 0 Downward revaluation during the year -425 0 Balance at 31 December -1,606 0
Shareholdings exceeding 5% of the companies' share Shareholders' Shareholding capital according to the latest annual accounts: equity (%)
Account Data A/S, Copenhagen 1 14 A/S Forsikringens hus, Copenhagen 44 12 Rungstedgaard A/S, Rungsted Kyst 29 13 14 Other financial investments Book value
Loans secured by mortgages 0 199 Other loans 0 73 Deposits with credit institutions 0 291
Tax loss carryforwards 0 149 16 Shareholders' equity Share capital Share capital on incorporation 1 1 Capital contribution by way of non-cash contributions 1,000 1,000 Capital increase 300 300 Balance at 31 December 1,300 1,300 The share capital is divided into shares of DKK 100 each or multiples thereof.
Retained earnings Transferred loss for the year -1,679 -1,679 Transferred from share premium account 1,679 1,679 Balance at 31 December 0 0
The shareholders' equity of Vesta Forsikring AS and Dansk Kautionsforsikrings-Aktieselskab includes untaxed contingency reserves of NOK 1,920m and and DKK 139m, respectively.
17 Gross provisions (outstanding claims provisions) 0 17,837 Of which provisions calculated in view of discounting: Workers' compensation insurance (Denmark) 575 Reduction due to discounting 46
Of which amounts falling due after 5 years 0 67 23 Capital adequacy Shareholders' equity 4,268 Solvency requirement in group undertakings -2,561
Tryg Forsikring A/S has an annual liability towards Danica Pension to pay rent for the head office at Ballerup. The annual rent and taxes etc. currently amount to DKK 72m. The remaining term of the lease is 23 years.
The Group is party to a number of lawsuits, the outcomes of which
Mikael Olufsen Deputy chairman of the Supervisory Board of Tryg i Danmark smba, member of the Board of Representatives of Tryg i Danmark smba, chairman of the Supervisory Board of Tryg Vesta Group A/S, deputy chairman of the Supervisory Board of Egmont Fonden, deputy chairman of the Supervisory Board of Egmont International Holding A/S, deputy chairman of the Supervisory Board of Gigtforeningen i Danmark, member of the Supervisory Board of Britisk Import Union, member of the Supervisory Board of Danish Cereal Holding A/S, member of the Supervisory Board of Danmark-Amerika Fondet, member of the Supervisory Board of Toptex PLC Borino, chairman of the Supervisory Board of Malaplast Co. Ltd. Samutprakarn.
John Frederiksen Member of the Supervisory Board of Tryg i Danmark smba, member of the Board of Representatives of Tryg i Danmark smba, member of the Supervisory Board of Tryg Vesta Group A/S, chairman of the Supervisory Board of A/S Kollektivhuset Hellebo, chairman of the Supervisory Board of Dandrit Biotech A/S, chairman of the Supervisory Board of Ejendomsselskabet Norden A/S, chairman of the Supervisory Board of Ejendomsselskabet Uglen A/S, chairman of the Supervisory Board of Jacob Holm & Sønner A/S, chairman of the Supervisory Board of Tema Kapital I K/S, chairman of the Supervisory Board of Tema Kapital Management A/S, member of the Supervisory Board of Danarota Technic A/S, member of the Supervisory Board of Dønnerup A/S, member of the Supervisory Board of Fortunen A/S, member of the Supervisory Board of Freja Ejendomme A/S (Statens Ejendomssalg A/S), member of the Supervisory Board of Oak Property A/S, member of the Supervisory Board of Renholdingsselskabet af 1898, member of the Supervisory Board of Råstof og Genanvendelse Selskabet af 1990 A/S, member of the Supervisory Board of Sjælsø Gruppen A/S, member of the Executive Management of Fortunen A/S, member of the Executive Management of Oak Property A/S.
Mogens Jacobsen Chairman of the Supervisory Board of Tryg i Danmark smba, member of the Board of Representatives of Tryg i Danmark smba, member of the Supervisory Board of Tryg Vesta Group A/S, deputy chairman of the Supervisory Board of Tryg Forsikring A/S, deputy chairman of the Supervisory Board of Vesta Forsikring AS, member of the Supervisory Board of Nordea Pension Danmark, livsforsikringsselskab A/S, chairman of the Supervisory Board of Rodskovgård Aps, member of the Executive Management of Rodskov Svineproduktion Aps.
Changes to the Supervisory Board and the Executive Management The Tryg Vesta Group was established on 28 January 2002 under the name “Tryg General Insurance Holding A/S”. Its Supervisory Board consisted of Thorleif Krarup (Chairman), Lars-Göran Nordström and Erik Arne Liljedahl. The Executive Management consisted of Hugo Andersen. The composition of the Supervisory Board was changed on 30 September 2002 to comprise the members listed in these financial statements.
On 1 September 2002, the Executive Management was enlarged to comprise Hugo Andersen (Group CEO), Stine Bosse (CEO of Tryg) and Erik Gjellestad (CEO of Vesta). On 10 January 2003, Mr Andersen resigned and was replaced by Ms Bosse as Group CEO.
Tryg Forsikring A/S Stine Bosse (CEO) Dansk Kaution Flemming Christiansen (CEO) Vesta Forsikring AS Erik Gjellestad (CEO) Nordea Ubezpieczenia, Poland Otto Groegler (CEO) Tryg-Baltica international Flemming Christiansen (CEO) Nordea Vahinkovakuutus, Finland Kimmo Kilpinen (branch manager) Nordea Kindlustus, Estonia Mikko Saario (CEO)
Tryg Vesta Group A/S has the following subsidiary undertakings: Tryg Forsikring A/S, CVR-No. 24260666 (100%) - Tryg Forsikring II A/S, CVR-No. 24260569 (100%)
- Tryg Polska Towarzystwo Ubezpieczen S.A. (95.32%) - Dansk Kautionsforsikrings-Aktieselskab, CVR-No. 10163714 (100%)
- ApS SMBK nr. 98, CVR-NR 66326810 (100%) (dormant) - Tryg-Baltica Forsikring, Internationalt Forsikringsselskab A/S, CVR-No. 10430615 (100%)