Non-life insurance Premiums earned Premiums earned increased 1.4% to DKK 8,985m. The personal segment accounted for 1.4%, and the SME segment accounted for 1.4%.
Non-life insurance - Investment return after return and revaluations of non-life insurance provisions etc. 392 270 – 320 288 Profit on non-life insurance 1,712 1,620 – 1,720 1,909
Claims trend 67.6 65.6 68.7 65.8 Run-off 9.4 4.2 5.3 3.8 Weather-related claims (1.3) (0.6) (0.7) (0.4) Large-scale claims (2.9) (0.2) (1.5) (0.2) Claims before run-off, weather and large-scale claims 72.8 69.0 71.8 69.1
Segment reporting Personal The Personal segment sells policies to individual households in Denmark.
The expense ratio declined to 16.2 from 16.7 in 2016. Nominal expenses were reduced by 1.9%, impacted by Topdanmark’s efficiency improvement programme.
Topdanmark continues to assume a positive premium growth and a combined ratio of 90-91, excluding run-off.
Overall, the assumed pre-tax profit on life insurance is DKK 240-270m.
The solvency ratio can be adjusted to a certain extent in accordance with the Board of Directors’ wishes. For example, the Board of Directors can choose to increase the solvency ratio by reducing capital requirements via a lowering of the Group’s investment-related risk profile. An element thereof could be to offer life-insurance customers with guaranteed benefits to switch to unit-link for which the capital requirement is significantly lower. It is an ongoing consideration process because both riskreducing measures will reduce the profitability of the Topdanmark Group.
In 2017, the profit margin concerning products with guarantees and profit sharing is included in own funds by DKK 88m before tax. In 2016, the profit margin concerning products with guarantees and profit sharing was included by DKK 0m.
NASDAQ Copenhagen’s market share was 68% in 2017 (2016: 65%). The share of trading on other platforms such as Cboe-CXE, Cboe-BXE and Turquoise was 32% (2016: 35%).
AGM 12 Apr 2018 Q1 2018 Interim Report 24 Apr 2018 2018 Half-year Report 20 July 2018 Q1-Q3 2018 Interim Report 23 Oct 2018
Offices held: Member of the Board of Directors of: • Insurance Europe (Vice President) • Insurance Sweden.
Member of the Board of Directors of: • Bornholms Brandforsikring A/S • Forsikringsakademiet A/S • Forsikring & Pension.
Note 4. Claims incurred, net of reinsurance - non-life insurance Run-off result: Gross business 502 393 Reinsurance ceded (32) -50 Run-off result, net of reinsurance (profit) 470 344
Run-off profits, net of reinsurance 220 157 3 5 4 36 Claims provisions, net of reinsurance 1,481 1,361 140 139 577 530
Note 7. Claims and benefits paid - life insurance Claims payable on death 148 139 Claims payable on invalidity 0 1 Claims payable on maturity 167 158 Pension and annuity payments 598 604
Ceded reinsurance premiums 637 617 Reinsurance earned (638) (605) Annual amortisation 2 1 Reinsurers' share of the provisions for unearned premiums at 31 December 72 84
Interest rate group 1 ]1%-2%] 29 27 Interest rate group 3 ]1%-2%] 1 1 Interest rate group 2 ]2%-3%] 10 9 Interest rate group 4 ]2%-3%] 3 3 Interest rate group 5 ]3%-4%] 14 16 Interest rate group 6 ]4%-5%[ 43 38
Note 33. Related parties Possessing an ownership interest of 48.90% of the shares outstanding, Sampo plc, Fabianinkatu 27, Helsinki, Finland has a controlling influence of Topdanmark A/S. Effective from 30 September 2017, Topdanmark’s financial statements have been included in the consolidated financial statements for Sampo plc in a line by line consolidation. Related parties with significant influence comprise the Board of Directors, the Executive Board and their families.
Anders Colding Friis 117 0 Birgitte Nielsen 525 175 Søren Thorup Sørensen 1,488 496 Total fee paid to nine Board members 4,958 5,317
Significant risk takers Additional to the Executive Board, another 19 employees have significant influence on Topdanmark’s risk profile. Fixed remuneration 37.1 Variable remuneration 6.3
Accrued interest and rent 278 260 Total financial assets 66,039 73,242
Quoted Observable observable 2017 prices inputs inputs Financial assets recorded at fair value Level 1 Level 2 Level 3 Total Held for trading: Loans guaranteed by mortgages and other loans 7 7
Topdanmark Group's 2017 Annual Report has been prepared in accordance with International Financial Reporting Standards as adopted by the EU and the additional Danish disclosure requirements of NASDAQ Copenhagen A/S and the Danish Financial Business Act on annual reports prepared by listed financial services companies.
Investment properties The initial recognition of investment properties is made at cost, which comprises the purchase price of the properties plus any directly related initial expenditure.
In premium provisions, best estimate of undue premiums for insurance contracts concluded is deducted, considering expected customer defection.
Profit margin on life insurance and investment contracts Profit margin is the expected future profit for the company from contracts concluded and when possible, profit margin for products with guarantees and profit sharing is financed by the individual bonus potential and secondarily by the collective bonus potential. The value is calculated as an interest margin of 0.05 %. Profit margin has been calculated on the basis of the expected duration of the insurance contracts.
• Recalculating claims outstanding provisions for insurance contracts for selected sectors by means of portfolio data.