Vesta Group has a good platform for growth within the segments and markets that are profitable. We will stay focused on providing high-quality services to our customers, both in connection with regular service and advice and in connection with claims handling.
organisation in January 2004 in order to form a better basis for further efficiency and profitable growth.
The Group’s ambition is to have the highest level of customer loyalty in the Nordic region. Based on the expectations and requirements of each individual customer, the Group aims to continuously add perceived value, thereby confirming customers in their choice of the Tryg Vesta Group as their provider of peace of mind.
global recovery is now materialising, primarily driven by one of the most expansive economic policies ever seen in the USA with very low interest rates, tax cuts and high public spending in the form of defence expenditure. The recovery was supported by continued high consumer spending in the USA, partly backed by the biggest remortgaging wave ever.
were targeted at the Tryg Vesta Group’s commercial customers, premiums were also raised for personal customers. Personal customers’ premiums were increased by up to 15 per cent on some policies.
Vesta Group is the insurance provider. At the same time, the prices of each of the two services are shown clearly.
The profitability measures taken resulted in the administrative expenses falling by DKK 206m relative to 2002. Rating of Tryg-Baltica international
In Denmark, Dansk KundeIndex measures customer satisfaction with Danish general insurance companies.
Throughout 2003, Tryg ranked a clear number one on the list of Danes’ preferred insurance company.
Finland. When the branch was set up in 2001, it only had access to Nordea Bank Finland’s 800,000 so-called core customers.
The Tryg Vesta Group focuses strongly on capitalising on IT synergies. This is to be achieved through a common IT organisation set up in April 2003 and covering all the Group’s companies.
Tryg also aims to include persons with an ethnic background among the trainees taken on each year. In 2003, two out of 32 trainees had an ethnic background.
Stig Ellkier-Pedersen and Mr Bjørn Thømt, Members of the Group Executive Management.
Systematic risk relates to changes in legislation, case law, macroeconomic and technological developments and general changes in policyholder behaviour. Such fluctuations will impact several or all policies at one and the same time, resulting in systematic fluctuations in the
The Tryg Vesta 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.
Vesta is Norway’s third-largest general insurer, serving some 600,000 households and businesses. Vesta has 1,460 employees and sells insurance policies through its own distribution channels, a well organised franchise network, insurance brokers in the industrial market and the upper part of the commercial market as well as through Nordea’s branches, just as Vesta sells
The Tryg Vesta Group 18 March 2004 page 32 of 98
Further, weather-related losses and large losses have been below average. The development was impacted negatively by the falling technical interest.
In Denmark and Norway, which together have 89 per cent of the premiums, the combined ratios were reduced by 9.0 and 6.7 percentage points, respectively.
The Tryg Vesta Group 18 March 2004 page 34 of 98
Norway as well as to the use of some tax assets. The lower tax rate is not expected in future.
Loss on business in run-off, net of reinsurance 88 55 -334 -518 Technical provisions, net of reinsurance 11,777 10,396 8,842 8,313
Number of full-time employees at the end of the period 2,248 2,330 2,458 2,552
Norwegian Pool of Natural Perils is primarily employed for equalising expenses in connection with storm and flooding.
The Tryg Vesta Group 18 March 2004 page 42 of 98
Norwegian portfolio composition to include a relatively larger share of personal insurance policies.
The results before tax for TBi were DKK 0 against a loss of DKK 110m for 2002. The financial results still were not satisfactory, but they express an increased focus on profitability over growth, which was in focus in earlier years.
and theft insurance products. In addition to this, the number of damage to motor cars abroad was relatively large.
Key ratios Claims ratio, net of reinsurance 67.2 81.4 - Expense ratio, net of reinsurance 38.9 55.1 - Combined ratio, net of reinsurance 106.1 136.5 - -
At the end of 2003, the renting percentage was 94.3 per cent against 94.7 per cent at the end of 2002 in Tryg and 95.5 per cent against 95.6 per cent in Vesta. There are no noticeable real property investments in the other companies of the Group.
These expectations are still intact. In order to reflect the natural movements in the business, the target for 2004 has been expressed by an interval delimited by
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.
consolidated at the results for the period subsequent to acquisition or prior to divestment, respectively. Technical interest represents a calculated return on the average technical provisions. The interest rate applied is the year’s average pre-tax yield to maturity on all bonds with a term to maturity of less than three years. Any gains or losses arising on divestment of subsidiary undertakings are included in the income statement under ‘Investment gains or losses’. Claims incurred
The results of foreign subsidiary undertakings are based on translation of the items in the income statement at quarterly average exchange rates. Income and expenses in domestic undertakings denominated in foreign currency are translated at the exchange rate ruling on the date of the transaction. Assets and liabilities denominated in foreign currency are translated at the exchange rate at year-end.
The cash flow statement shows the actual inflow and outflow of payments for the year divided into cash inflow
Change in other insurance provisions, net of reinsurance 15 17 12
Change in the equalisation provisions -101 -199 -181 *) Subsidiaries included from 28 June 2002
Dividend for the financial year 50 0 0 22 Total Debt 2,286 3,210 #REFERENCE!
Technical interest, net of reinsurance 78 128 74 123 45 64 6 9 71 34
Workers' Compensation (Norway) 2,393 2,355 #REFERENCE! Reduction from discounting 399 407 #REFERENCE!
Total Return on investment activities 758 -445 3 Other ordinary expenses -22 -52
The Tryg Vesta Group 18 March 2004 page 88 of 98
Amounts owing Amounts owing from subsidiary undertakings 47 92 Other amounts owing 0 1
Dept., Zurich Nordic 1997-1999: Financial Analyst, Alm. Brand Forsikring 1991-1997: Controller, Zurich
expresses the relation between the profit/loss for the year and the average shareholders’ equity for the year.