Profit/loss on ceded business -56 44 -313 507 Technical interest, net of reinsurance 39 35 134 184
Share performance Earnings per share – continuing business of DKK 25 10.8 18.4 Net asset value per share (DKK) 139.5 149.2 Dividend per share (DKK) 4.00 6.52 Price Earnings 23.8 17.3 Number of shares, end of period (1,000) 60,634 60,373
Corporate | sells insurance products to corporate customers under the ‘Tryg’ brand in Denmark and Norway and the ‘Moderna’
Morten Hübbe will take over as CEO as from 1 February.
Norway. The test was conducted by SeeYou, and is Norway’s biggest, most comprehensive customer service survey. On a scale of 0-100, Tryg scores 87.6 points.
Tryg launches the Next Level Sourcing project, which aims to secure efficient procurement and thus enhance profitability by reducing costs in Tryg. The project involves both claims costs through Tryg’s purchases of claims handling at, for example, car workshops and craftsmen, and Tryg’s own costs.
Because premium increases only have an effect from the annual date of renewal of the insurance, some of the profitabilityenhancing effects will only occur some time after the increases are implemented. 2012 will therefore still see an impact of around
The technical result was improved in the fourth quarter, which was mainly a result of the premium increases and higher acceptance from customers. This was manifested in the retention rate of 90.5, as against 89.5 for the same quarter of 2010 in Denmark, whereas the 2011 retention rate in Norway has remained stable at around 86.
• The technical result improved from a loss of DKK 474m in 2010 to a profit of DKK 117m in 2011.
Premium increases and changes in terms of cover are also being implemented, such as increases in policy excesses and adjustment of cover and acceptance rules. Industries and segments that are particularly exposed to claims will see customised changes to their price rates and covers. Commercial Nordic was boosted by fewer large claims, but was also severely affected by the cloudburst in July, which mainly affected central Copenhagen, home to many commercial customers. The cloudburst had an impact of approximately DKK 300m before reinsurance.
As a result of transitional arrangements, the effect was limited in 2011, but will be noticeable in 2012.
Corporate Nordic is divided into a smaller corporate portfolio with premium income of SEK 150m, which is still in a development phase, and an agent-served commercial portfolio of SEK 400m. For both portfolios, there is a strong focus on profitability compared to both
• Weather claims amounted to DKK 148m, compared to DKK 19m during the same period of 2010.
Tryg’s investment activity encompasses both investment in investment assets such as bonds, shares and property, as well as the management of Tryg’s liquidity. The investment activity is regulated both by applicable legislation and by the Supervisory
Euro bonds are significantly higher than they are for Nordic bonds,
The equity portfolio, which is globally diversified, generated a negative return of DKK 87m, which was satisfactory compared to the trend in the global equity markets, but significantly below our expectations at the beginning of 2011.
If funds are invested in a company that breaches human rights, damages the environment or is involved in child labour, corruption or the manufacture of cluster bombs, a dialogue is initiated with the company with the aim of altering its behaviour or disposing of the investment concerned.
During the fourth quarter, the free portfolio achieved a net income of DKK 236m, of which the net income from shares amounted to DKK 103m, primarily as a result of shares rising 8% globally. Net income from bonds etc. in the free portfolio amounted to DKK 66m and was influenced by declining interest rates, particularly in Denmark.
It is important for Tryg that customers are offered high-quality products at a price that matches the risk and customer requirements. This is an area where there has been greater focus in the past year. Tryg wants to use several relevant parameters in pricing, so that price better reflects risk.
879m after dividends. In addition, there is scope to increase the actual capital through capital increases.
Graduate Diplomas in organisation and work sociology as well as credit and finance.
Committee memberships: Audit Committee of Tryg A/S, Risk Committee of Tryg A/S and
The reflection room is a measure within the CSR initiative of inclusion and diversity at Tryg. Tryg has a targeted approach to employee diversity work, offering a spacious workplace in which diversity actively contributes to the creation of value.
Every year, the Supervisory Board proposes a dividend payment and a possible share buy back. In 2010, the Annual General
Board and the Group Executive Management will participate in annual general meetings where possible, and this has a high priority.
CSR strategy is described in the CSR policy. Tryg also has an
The Supervisory Board performs an annual review of and if necessary updates the rules of procedure for the Supervisory Board and the Executive Management with guidelines and instructions describing reporting requirements and requirements for communication with the Executive Management.
Board and at tryg.com > Governance > Management > Supervisory Board
Remuneration Committee’s work is based on Tryg’s remuneration policy. The members of the Remuneration Committee are Mikael
The Supervisory Board carries out an annual evaluation of the work and results of the Executive Management in accordance with clearly defined criteria determined in advance and of cooperation between the Supervisory Board and the Executive Management.
Supervisory Board’s review of the annual report, it discusses the accounting policies and other issues. The results of the audit are discussed at the Audit Committee and at Supervisory Board meetings for the purpose of assessing the auditors’ observations and conclusions. The internal and external auditors’ long-form reports are reviewed by the Supervisory Board.
a) Tryg went from natural gas to district heating in 2011.
In our opinion, the consolidated financial statements give a true and fair view of the Group’s financial position at 31 December 2011, and of the results of its operations and cash flows for the financial year 1 January to 31 December 2011 in accordance with International Financial Reporting Standards as adopted by the EU and Danish disclosure requirements for listed financial services companies.
Based on our work, nothing has come to our attention which causes us to conclude that TRYG’s CSR data for 2011 do not comply with the reporting practice stated and have not been appropriately presented.
Profit/loss for the year before tax 3,314 1,395 2,610 941 1,569
Claims paid -14,809 -15,693 Reinsurance recoveries 391 1,142 Change in provisions for claims -808 -606 Change in the reinsurers’ share of provisions for claims 211 355 5 Claims incurred, net of reinsurance -15,015 -14,802
Effect of 1% increase in interest curve: Impact of interest-bearing securities -795 -850 Discounting of provisions for claims 706 889 Net effect of interest rate rise -89 39 Impact of Norwegian pension liability 225 296
Exchange rate adjustments concerning financial assets or liabilities which cannot be valuated to market value is in total DKK 31m
Business property 7.3 7.3 Office property 6.6 6.3 Residential property 4.6 4.8
Financial assets at amortized cost prices only deviate to a minor extent from fair value.
Unobservable input, total result DKK 75m (DKK -47m in 2010), mainly comprises inflation derivatives of DKK 70m hedging (DKK -56m in 2010) inflation risk on technical provisions which recorded an accounting result of DKK -58m (DKK 83m in 2010).
Due within one year 28,855 -19 10,288 -57 Due within one to five years 3,709 -8 3,656 -21 Due after more than five years 6,379 -51 14,133 694
Gains and losses on hedges charged to other comprehensive income at 31 December 983 -1,280 -297 1,256 -1,580 -324
Receivables in connection with insurance contracts include overdue recievables totalling: Falling due: Within 90 days 197 170
Shareholders’ equity according to annual report 8,458 9,007 Proposed dividend -256 -399 Solvency requirements to subsidiary undertakings – 50% -2,516 -2,508
Unsettled fund trading is debt for bonds purchased in 2010 and 2011, however with settlement in 2011 and 2012 respectively
No provisions have been made for non-performing guarantees and no expenses were incurred during the financial year.
Intra-group trading involved Administration fee, etc. is fixed on a cost-recovery basis. Intra-group accounts are offset and carry interest on market terms.
• Amendments to IAS 34 ‘Interim Financial Reporting’ • Amendments to IFRIC 13 ‘Customer Loyalty Programmes’,
The Group has not applied the following new and revised executive orders, standards and interpretations that have been issued but not yet effective: • Amendments to IFRS 7 ’Disclosures – Transfers of Financial Assets’ a)
Assets are recognised in the statement of financial position when it is probable that future economic benefits will flow to the Group
Dividend paid -991 -991 Dividend own shares 14 14 Purchase of own shares -816 -816 Exercise of shareoptions 9 9 Issue of share options 16 16
Average reinsurers’ share of provisions for insurance contracts 1,574 1,312 1,178 1,454 1,828 Reserve ratio, provisions for unearned premiums (%) 33.2 30.0 34.8 35.0 33.7 Reserve ratio, provisions for claims (%) 130.1 116.3 125.8 127.8 131.0