Run-off, net of reinsurance (%) -6.7 -5.5 -7.0 -6.7 -6.1 -5.0 -5.0 Large claims, net of reinsurance (%) 4.4 3.1 2.2 3.4 3.1 2.1 2.3 Weather claims, net of reinsurance (%) 2.6 5.4 2.0 3.4 2.4 3.2 1.8
Net Promoter Score (NPS), and we are pleased with our 2016 NPS score of 22, which already meets our target of 22 for 2017. Tryg also measures NPS immediately after customers have been in touch with Tryg, and our NPS
Share buy back programme initiated On 6 April, Tryg initiated an extraordinary share buy back of DKK 1bn, which was completed on 16 December 2016.
TryghedsGruppen proposes new rules for election of Tryg’s Chairman TryghedsGruppen, the majority shareholder in Tryg, will propose an amendment to Tryg’s Articles of Associations at Tryg’s AGM in 2017, hence the Chairman of TryghedsGruppen is not automatically Chairman of Tryg.
New bond issue Tryg Forsikring A/S took out a Solvency II-compliant Tier 2 subordinated callable bond issue of SEK 1bn (approx. DKK 800m) in the Swedish market.
Tryg creates peace of mind for its customers by offering them insurance against risk, efficient claims handling, and advice and services to prevent claims from arising in the first place. By ensuring our cust-
Sweden Private continued its innovative product development and developed three new smart app products for car, motorcycle and health.
The gross claims ratio was 72.0 (68.0) and 70.1 before one-offs. The claims ratio, net of ceded business, which covers both claims and business ceded as a percentage of gross premiums, was 75.1 (74.2) and 73.2 before one-offs. The lower claims level after one-offs was due to a lower weather claims level of 2.6% (5.4%). In Q4,
to 57.1% with a significant increase of 1 percentage point for Private customers in Denmark and a drop in the number of customers with three or more products in Norway. To improve the level of customers with three or more products in Norway, the car sales channel, where many customers have few products, was restructured with the aim, among other things, of increasing cross-selling to these customers.
The expense ratio was 16.5 (17.2), and the number of employees was reduced by 13 to 474 in Q4 2016.
The number of employees was reduced from 265 at the end of 2015 to 257 in 2016.
Skandia’s child insurance portfolio, Tryg continues to improve its market position in Sweden through an active M&A approach.
Premium income rose by 3.4% (-3.1%) in local currencies. This was due to the acquisition of
Norway. Through 2016, focus was on mitigating the loss of a number of large affinity agreements and the impact on distribution. The Swedish organisation was able to offset this through higher sales in Q4 2016 compared with Q4 2015, partly through cross-selling to customers in the boat and motorcycle insurance niche segments.
Combined ratio exclusive of run-off 101.2 94.3 99.4 94.8 Run-off, net of reinsurance (%) -8.3 -21.1 -8.7 -11.3 Weather claims, net of reinsurance (%) 0.9 1.6 0.8 1.7
Moderna Djurförsäkringar. Sales take place through its own sales force, call centres, partners and online. The business area accounts for 7% of the Group’s total premium income.
German notes. One noticeable area of turbulence was the currency markets where the British pound and EM currencies weakened significantly.
At the annual general meeting to be held on 8 March 2017, Tryg’s Supervisory Board will propose an H2 dividend of DKK 3.60 per share.
Brexit and the US presidential election resulted in large swings in the equity markets, in particular for banks’ and insurers’ stocks. Additionally, insurance investors remained very focused on Solvency
The majority shareholder, TryghedsGruppen smba, owns 60% of the shares and is the only shareholder owning more than 5% of the share capital.
Tryg publishes an annual profile in Danish, English and Norwegian. The profile is addressed to Tryg’s private shareholders, customers, employees and other stakeholders and is published on 26 January 2017. Moreover, Tryg prepares quarterly investor presentations, which are used in the dialogue with investors and analysts. All announcements, financial reports, presentations and newsletters are available at tryg.com. This material provides all stakeholders with a comprehensive picture of
Tryg’s share capital comprises a single share class, and all shares rank pari passu. The majority shareholder, TryghedsGruppen smba, owns 60% of the shares and is the only shareholder owning more than 5% of the company’s shares. The Supervisory Board ensures that Tryg’s capital structure is aligned with the needs of the Group and the interests of its shareholders and that it complies with the requirements applicable to Tryg as a financial undertaking. Tryg has adopted a capital plan and a contingency capital plan, which are reviewed annually by the Supervisory Board.
IT Committee to allow the Board to work more closely with Tryg’s IT strategy. The framework of the committees’ work is defined in their terms of reference. The board committees’ terms of reference can be found at tryg.com > Governance > Management > Supervisory Board > Board committees, including descriptions of members, meeting frequency, responsibilities and activities during the year. See the tasks of the board committees in 2016 at tryg.com > Governance > Management > Supervisory Board > Board committees.
Supervisory Board. The internal and independent auditors attend the Audit and Risk Committee meetings, and at least once a year the auditors meet with the Audit Committee without the presence of the Executive Board. The Chairman of the
Born in 1959. Joined: 2010. Danish citizen. CEO of Lundbeckfonden and Lundbeckfond Invest A/S.
Chairman: BLKCHN Scandinavia AB, Bridge Scandinavia Ventures AB, Creador AB, FCG Fonder AB, HappyX AB, Insiderfonder AB, Our Interest AB, The PAUSE Foundation, Wunderbar AB. Board member: DBT Capital AB, Havsgaard AB, Holmö Fastigheter AB, Ponture AB, Tryg A/S, Tryg Forsikring A/S, Wonderbox AB. Advisory Board member: Daniel Wellington AB Committee memberships: Remuneration Committee Number of shares held: 170 Change in portfolio 2016: +170
Norway. A total of approximately 370 local groups are involved in this preventive work. Tryg acts partly as a secretary for the Night Ravens, while also paying for clothing and other necessary materials and supporting operations and events.
employees. By addressing these issues, we think it is possible to improve the well-being and development of our employees, which is positive for retention rates as well as Tryg’s business as a whole. We support our employees by offering flexible working hours and the possibility of working from home.
Fire prevention is also the focus of the new free ‘VR
As clearly set out in our business model, we believe our employees are one of our most important resources and assets, and that they should be treated as such. In Tryg, we focus on the well-being of our employees and their right to a healthy and safe workplace. We welcome diversity and ensure non-discrimination through equal treatment of all our employees regardless of gender, age, disabilities, ethnic origin, sexual orientation and religion. We see our different perspectives as an asset that increases the quality of our services through ensuring a better understanding of our customers’ needs. Read more about people at tryg.com > CSR > Thematic areas > People
Tryg is highly affected by more extreme weather conditions since they can increase the number and frequency of climate-related claims. This represents a risk to Tryg since it will increase our claims costs. The risk becomes even greater if we do not have the necessary focus on claims prevention.
1 January to 31 December 2016 in accordance with the Danish Financial Business Act.
We have audited the consolidated financial statements and the parent financial statements of Tryg
A/S for the financial year 1 January to 31 December 2016, pages 44-104, which comprise the income statement, statement of comprehensive income, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies, for the Group as well as the
Note Equity and liabilities 18 Equity 9,437 9,644 1 Subordinate loan capital 2,567 1,698
Nullification of own shares -44 44 0 Dividend paid -2,477 -2,477 Dividend, own shares 97 97 Purchase and sale of own shares -1,044 -1,044 Exercise of share options 13 13 Issue of employee shares 2 2 Issue of share options and matching shares 5 5
Operationally - Frameworks - Limitations - Instructions - Allocated capital - Contingency plans
Effect of 1 percentage point change in: Combined ratio (1 percentage point) +/- 175 +/- 177 Premium rates +/- 173 +/-175
Provisions before discounting, end of year 7 13 6 10 55 84 26 85 52 1,014 145 1,496
Reserves from 2005 and prior years 2,168 Other reserves a) 238 Provisions for claims, net of reinsurance, end of the year 23,632 a) Other provisions comprise the claims provisions for guarantee insurance.
The amounts in foreign currency in the table are translated to Danish kroner using the exchange rate at 31 December 2016 to prevent the impact of exchange rate fluctuations.
Amounts owed to credit institutions 64 0 0 64 Debt relating to unsettled funds transactions and repos 4,074 0 0 4,074 a) Interest on loans for a perpetual term has been recognised for the first fifteen years.
Profit/loss on ceded business - 7 - 4 - 1 - 1 - 8 - 10 - 44 - 33 - 24 - 2 - 130 - 53 Insurance tech. interest, net of reinsurance - 1 2 0 0 0 1 - 1 2 - 2 3 0 1
In 2011-2016, Tryg entered into an agreement on matching shares for the Executive Board and selected other senior employees as a consequence of the Group’s remuneration policy. The Executive Board and Other senior employees are allocated one share in Tryg A/S for each share that the Executive Board member or Other senior employees acquires in Tryg A/S at market rate for liquid cash at a contractually agreed sum. The shares are reported at market value and are accrued over the 3- or 4-year maturation period. In 2016, the reported fair value of matching shares for the Group amounted to DKK 3m (DKK 5m in 2015). At 31 December 2016, a total amount of DKK 16m was recognised for matching shares.
2016 Komplementarselskabet af 1. marts 2006 ApS, Denmark 0 0 0 0 0 50 2015 Komplementarselskabet af 1. marts 2006 ApS, Denmark 0 0 0 0 0 50
Gains and losses at 1 January 2,496 -2,420 76 Reversed hedges in profit/loss -23 -23 Value adjustments for the year 156 -183 -27
Pursuant to the authorisation granted by the shareholders, Tryg may acquire up to 10.0% of the share capital in the period up until 31 December 2017. Own shares are acquired for use in the Group’s incentive programme and as part of the share buyback programme.
Pension obligation, gross 1,268 1,192 Fair value of plan assets 960 978
Annual report 2016 | Tryg A/S | | Menu – Financial statements 27 Contractual obligations, collateral and contingent liabilities (continued) Collateral The Danish companies in the Tryg Group are jointly taxed with TryghedsGruppen smba. The companies and the other jointly taxed companies are liable for any obligations to withhold taxes at source on interest, royalties, dividends and income taxes etc. in respect of the jointly taxed companies.
The Executive Board is paid a fixed remuneration and pension. The variable salary is awarded in the form of a matching share programme, see ‘Corporate governance’. Besides this, the Executive Board have free car appropriate to their position as well as other market conformal employee benefits.
Tryg has implemented the amendments which prescribes applying a new yield curve from the Executive order on financial reports by insurance companies and lateral pension funds issued by the Danish FSA from 1 January 2016. The executive order prescribes a change from applying a yield curve issued by the Danish Financial Supervisory Authority to applying a new yield curve published by EIOPA.
Sale and lease back of owner-occupied property – operating lease Sale and lease back transactions are carried out at fair value and any gains or losses are recognised immediately either in the income statement or other comprehensive income.
1 Income from Group undertakings Tryg Forsikring A/S 2,525 2,032 2 Other expenses Administration expenses -63 -75
Remuneration for the Executive Board is paid partly by Tryg A/S and partly by Tryg Forsikring A/S and