As history bears out, there is not necessarily a link between thought and thoughtfulness.
However, fire can destroy values and visions built on the dreams of men and women over many decades. We have therefore feared the blind, consuming power of fire for just as long as we have regarded it as an ally.
DKKbn 2000* 31 Dec 2001* 31 Dec 31 Dec 31 Dec 31 Dec
In TrygVesta’s opinion, this risk has been reduced considerably through the industry’s increased focus on risk management and return on capital. After many years of earnings significantly underperforming investor return requirements, focus on capital and risk should keep the industry’s attention on long-term earnings.
TrygVesta believes that there are three valid reasons for establishing a government guarantee to counter the effects of major terrorist events: Terrorism is presumed to be politically motivated. It is impossible to hedge the risk related to terrorist attacks sufficiently in the reinsurance market. Finally, working groups under the auspices of the Norwegian Finansnæringens
The second half of 2004 was characterised by strong activity in the US with rising interest rates towards the end of the year and decent share price increases. This rubbed off on European shares, but economic activity in Europe remained weak with slightly falling interest rates. In particular the high EUR exchange rates caused concern in the European business sector. The
The partnership with Nordea enables TrygVesta to offer our customers life and pension insurances. At the same time,
D I S T R I B U T I O N PA R T N E R S H I P W I T H N O R D E A I N T H E N O R D I C R EG I O N
The benefits are obvious: The products will be offered to the customers at favourable prices, the supplier will get more customers, while TrygVesta offers good service at a good price.
The staff worked 12-14 hours on end for several days, and Tryg-
Number ’000 60 *) Based on the first estimate of the extent of the claim after the initial contact with the customer 9 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 17 Jan 18 Jan 19 Jan 600 DKKm
This section describes our efforts to create a common identity and establish shared values, including the preliminary results of the value process. We also describe how we intend to make
In order to promote the change and integration process, members of TrygVesta’s senior management team were given the opportunity of sparring with a personal coach through all of 2004.
TrygVesta’s values have been defi ned after a comprehensive value process covering the entire Group. During 2004, 19 value scouts have been looking for values and rules of conduct in both Tryg and Vesta. The process made it clear that Tryg and
TrygVesta expects to report strong financial results also for 2005, with a projected low combined ratio and attractive returns on equity of around 25% before tax. The Group forecasts a profit on ordinary activities before tax of DKK 1,600m for the full year 2005 compared with the full-year profit for 2004 of DKK
investment risk, including interest rate risk, the Danish Financial Supervisory Authority introduced the so-called traffic light system at 31 December 2003. The system is intended to reflect companies’ ability to endure a number of hypothetical market scenarios, such as falling equity prices and interest rate changes.
A couple of years ago Seija Korre discovered she could be insured through her bank when she had a meeting with
As in 2003, the largest part of TrygVesta’s earnings was generated by Personal & Commercial Denmark and Personal & Commercial Norway reporting technical results of DKK 604m and
Technical provisions increased by a total of DKK 992m relative to 2003, thereby bringing TrygVesta’s provisioning ratio to 106.9 as against 104.5 in 2003. The increase in total assets included increased holdings of shares and bonds.
Some 550 claims were reported by Tryg customers as a result of the accident in Kolding, costing TrygVesta DKK 100m in claims expenses.
Gross claims ratio, net of ceded business 60.7 62.8 61.0 73.9 77.4 71.7 67.2
‘The hotel was 200 metres from the beach, but we didn’t see the waves coming even though the surroundings were fl at. People came rushing from all directions while we were having breakfast outdoors. The water rose one metre up the hotel wall, but it was stone-built to a height that prevented the water from getting into the hotel. So we escaped the disaster without a scratch.’
The TrygFonden donated DKK 500,000 to the victims of the disaster in early January 2005. Furthermore, TrygVesta’s staff collected more than DKK 40,000.
The adverse impact on gross premiums was related, among other things, to the introduction by TrygVesta of net pricing to customers served by brokers, which reduced earned premiums by some DKK 160m. Adjusted for the exchange rate impact and the introduction of net pricing to customers served by brokers, gross earned premiums fell by just over DKK 120m, which was largely attributable to the strategic phase-out of unprofitable customers in the Norwegian part of the business.
Per Grønborg believes that two challenges, in particular, will be key to TrygVesta in the future: maintaining the operational improve ments achieved and clarifying the ownership structure.
Zurich’s Danish and Norwegian general insurance portfolio, are included from the date of acquisition of the relevant portfolio.
Key ratios, net of reinsurance Claims ratio, net of reinsurance 61.3 76.9 66.1 78.7 85.3 78.5 83.7 Expense ratio. net of reinsurance 25.0 23.5 22.9 25.2 25.3 23.1 25.1
Key ratios, net of reinsurance Claims ratio, net of reinsurance 63.2 70.4 68.6 78.2 104.3 91.1 Expense ratio. net of reinsurance 71.0 81.0 80.0 103.8 389.2 1,795.1 -
The item Pensions includes adjustment of corridor in Vesta Forsikring AS.
Tax prepaid 410 250 9 Loss on discountinued activities Earned premiums, net of reinsurance 25 376 Technical interest, net of reinsurance 37 46 Claims incurred, net of reinsurance -79 -479 Total insurance operating expenses, net of reinsurance -43 -189 Change in the equalisation provisions 6 0
Charges relating to investment assets Investment management charges -3 -10 Interest expenses -64 -57
Other financial investment assets Bonds 92 0 Deposits in credit institutions 0 100 8 Total other financial investment assets 92 100
7 Shares in associated undertakings Acquisition sum Balance at 1 January 0 0 Divestments during the year 14 0
Acquisition value Bonds 94 0 9 Tax asset Operating equipment and provision etc. 3 5
In Vesta Forsikring AS and Dansk Kautionsforsikring-Aktieselskab, untaxed provisions for contingency fonds form part of the shareholders’ equity with NOK 2,104m and DKK 139m, respectively.
Combined ratio, net of reinsurance 85.7 109.7 88.8 104.4 *) The amount comprises provisions for security, reinsurance and administration as well as funds for natural disasters and guarantees.
Energo-Asekuracja, which was established in 1994. Tryg gained controlling influence in 2000, and in 2002 the name of the company was changed to Tryg Polska.
In 1999, Tryg merged with Denmark’s second-largest banking group, Unidanmark, and the general insurance activities of
Enter is a wholly-owned subsidiary of Vesta and sells insurance through selected business partners, including car dealers.
Board of TrygVesta A/S with respect to members elected at the general meeting. Furthermore, the same persons act as chairman and deputy chairman of the supervisory boards. At present, the General Meeting has elected eight members to the Supervisory Board of TrygVesta A/S. In addition, the
The Supervisory Board generally agrees with the Committee’s recommendations for good corporate governance as reflected, among other things, by the disclosures in this annual report.
Management, but is based more on the Group’s investment returns and the completion of ongoing projects. In addition, the members of the Executive Management have pension schemes providing a contribution by TrygVesta of 25% of their respective salaries. Moreover, the members of the Executive
TrygVesta’s Group Executive Management was reduced from six members to five in January 2005. In that connection,
Mr Bjørn Thømt retired from his position with the Group. The position as Deputy CEO of Vesta was eliminated, and Mr