Half-year report for 2024

12 July 2024, Announcement no. 12/2024

Topdanmark A/S Borupvang 4, DK-2750 Ballerup CVR no. 78040017

4

Management's review

Highlights

H1 2024

Profit after tax of

DKK 488m

(H1 2023: DKK 633m)

Operating EPS was DKK 8.0 (H1 2023: DKK 7.1)
Combined ratio: 85.4 (H1 2023: 82.9)
Combined ratio excluding run-off profits: 88.3 (H1 2023: 85.2)
Insurance revenue increased by 12.7% with an organic growth of 5.0%
Net investment result was DKK 244m (H1 2023: DKK 24m).

Q2 2024

Profit after tax of

DKK 112m

(Q2 2023: DKK 260m)

Operating EPS was DKK 3.6 (Q2 2023: DKK 2.9)
Combined ratio: 86.0 (Q2 2023: 82.3)
Combined ratio excluding run-off: 88.2 (Q2 2023: 84.5)
Insurance revenue increased by 13.6% with an organic growth of 5.8%
Net investment result was DKK 86m (Q2 2023: DKK -82m).

Profit forecast model for 2024

The expected organic insurance revenue growth is improved from above 4.5% to around 6%.
The assumed combined ratio for 2024 is narrowed from 81.8-84.8 to 83-85 including run-off.
The profit forecast for 2024 has been adjusted from DKK 1,250-1,525m to DKK 950- 1,175m after tax and including run-off. The lower expected net profit is a result of one-off costs related to the IT separation agreement with Nordea, and transaction costs related to the exchange offer from Sampo.

Exchange offer from Sampo

On 17 June 2024, Topdanmark A/S and Sampo plc entered into a combination agreement pursuant to which Sampo plc will make a recommended public tender offer (share exchange offer) to the shareholders of Topdanmark A/S, valuing the entire share capital of Topdanmark A/S at approximately DKK 33 billion based on the agreed exchange ratio between Topdanmark A/S and Sampo plc shares, and the closing price of the Sampo plc share on Nasdaq Helsinki on 14 June 2024 (please refer to company announcement no. 9/2024).
On 8 July 2024, Sampo plc announced that it had obtained all necessary regulatory approvals relating to the share exchange offer.
On 9 July 2024, Sampo plc announced that Sampo plc's extraordinary general meeting had resolved to issue new Sampo A shares as consideration for the share exchange offer.
Sampo is expected to publish a prospectus and an offer document in early August 2024, and the offer period is also expected to commence early August 2024.
Upon publication of the offer document, the Board of Directors of Topdanmark A/S will publish a statement in respect of the share exchange offer from Sampo plc, which will include the Board of Directors of Topdanmark A/S' considered statement on such offer. Topdanmark A/S shareholders are advised to read the offer document, the prospectus, and the statement of the Board of Directors once published and before deciding whether to accept the share exchange offer from Sampo plc.

Other events

• On 1 May 2024, Topdanmark entered into agreement on the completion of the IT separation of Topdanmark Liv Holding A/S, and at the same time, renewed the agreement with Nordea on the distribution of non-life insurance products by up to five years. The one-off costs of DKK 195m after tax associated with the agreement were included in the line item "Profit after tax, discontinued operations" in Q2 2024.

Conference call

A conference call will be held today at 13:00 (CEST) in which Peter Hermann, CEO, and Lars Kufall Beck, CFO, will be available for questions based on the results. The call will be conducted in English.

To participate in the conference call, please call:

DK dial-in number: +45 32 74 07 10 SE dial-in number: +46 8 505 246 90 UK dial-in number: +44 20 3481 4247 US dial-in number: +1 (646) 307 1963 (Conference ID 4065015)

10-15 minutes before the conference call – or listen to the live transmission of the call.

Please direct any queries to:

Peter Hermann Chief Executive Officer

Lars Kufall Beck Chief Financial Officer

Robin Hjelgaard Løfgren Head of Investor Relations Direct tel.: +45 4474 4017 Mobile tel.: +45 2962 1691

(DKKm)	H1 2024	H1 2023	Q2 2024	Q2 2023	Full year 2023
Insurance revenue	5,653	5,015	2,857	2,515	10,168
Claims incurred	-3,693	-3,129	-1,890	-1,565	-6,762
Expenses	-930	-841	-479	-423	-1,671
Reinsurance result	-184	-164	-77	-73	-228
Insurance service result	847	880	410	454	1,507
Net investment result	244	24	86	-82	97
Other items	-61	-24	-26	-12	-106
Profit on insurance	1,031	881	470	360	1,498
Special costs	-36	0	-16	0	-39
Parent company etc.	-60	-17	-33	-7	-35
Profit before tax, continuing operations	935	864	421	353	1,424
Tax, continuing operations	-252	-231	-115	-92	-372
Profit after tax, continuing operations	683	633	306	260	1,051
Profit after tax, discontinued operations	-195	0	-195	0	0
Profit	488	633	112	260	1,051
Run-off profits, net of reinsurance	161	114	61	55	204
Investment assets	16,117	18,364			15,414
Reinsurance asset	603	512			587
Provisions for insurance contracts	15,288	14,534			13,939
Shareholders' equity	4,256	4,310			4,722
Total balance	22,710	21,772			21,826
Financial ratios
Return on shareholders' equity after tax (annualised)	21.0	21.8	10.0	20.5	20.6
Return on own funds (annualised)	33.2	29.2	14.3	18.6	36.0
EPS continuing operations after tax (DKK)	7.7	7.1	3.4	2.9	11.9
EPS after tax (DKK)	5.5	7.1	1.3	2.9	11.9
Operational EPS after tax (DKK)	8.0	7.1	3.6	2.9	12.3
Dividend per share issued, proposed (DKK)					11.5
Net asset value per share, diluted (DKK)	47.8	48.5			52.9
Listed share price end of period	367.9	335.2			322.4
Number of shares end of period ('000) Average number of shares ('000)	88,905 88,874	88,685 88,642	88,899	88,663	88,751 88,686

Insurance ratios
Gross claims ratio	65.5	62.6	66.3	62.4	66.7
Net reinsurance ratio	3.3	3.3	2.7	2.9	2.2
Claims ratio, net of reinsurance	68.7	65.8	69.0	65.3	68.9
Gross expense ratio	16.7	17.1	17.0	17.0	16.7
Combined ratio	85.4	82.9	86.0	82.3	85.6
Combined ratio excl. run-off profits	88.3	85.2	88.2	84.5	87.6

Results for H1 2024

The profit for H1 2024 was DKK 488m (H1 2023: DKK 633m).

The insurance service result decreased by DKK 33m to DKK 847m. The lower insurance service result was caused by a much higher level of weather-related claims and a deterioration in the underlying claims ratio mainly due to higher claims costs within motor, many of which were weather-driven especially in Q1 2024. These effects were offset by strong growth, tight cost control and a sound run-off result.

The net investment result increased by DKK 220m to DKK 244m, supported by positive contributions from equities, higher running yields and lower provisions due to changes in the non-hedged capitalisation factor.

Other items included a DKK 15m one-off contribution to DFIM (Danish Motor Insurers' Bureau) in Q1 2024.

As published in company announcement no. 7/2024 dated 1 May 2024, Topdanmark has entered into agreement on the completion of the IT separation of Topdanmark Liv Holding A/S, and at the same time, renewed the agreement with Nordea on the distribution of non-life insurance products by up to five years. The one-off costs of DKK 195m associated with the agreement were included in the line item "Profit after tax, discontinued operations" in Q2 2024.

Results for Q2 2024

The profit for Q2 2024 was DKK 112m (Q2 2023: DKK 260m).

The insurance service result decreased by DKK 44m to DKK 410m. This was impacted by a higher frequency of large fires in private houses, drought-related claims in agriculture, and a higher claims frequency and rising average claims in motor. The developments in motor are currently being mitigated through price increases, which typically take 12-18 months to earn through.

The net investment result increased by DKK 168m to DKK 86m. Q2 2023 was affected by a loss on the "matching" portfolio due to wage indexation of workers' compensation provisions, while Q2 2024 saw more benign market developments and a gain on the "matching" portfolio.

Insurance service result for H1 2024 Insurance revenue

Insurance revenue increased by 12.7% to DKK 5,653m, corresponding to an organic growth of 5.0% when adjusting for the acquisition of Oona Health, underpinning the positive growth momentum. Organic growth was supported by higher indexation, pricing initiatives, a stronger retention and net customer inflow, and continued good traction in Oona Health.

The private segment accounted for a 23.1% reported growth (6.8% organic growth), and the SME segment accounted for a 3.1% increase.

Underlying claims ratio	H1 2024	H1 2023	Q2 2024	Q2 2023	Full year 2023
Claims ratio, net of reinsurance	68.7	65.8	69.0	65.3	68.9
Run-off	2.8	2.3	2.1	2.2	2.0
Weather-related claims	-3.4	-2.3	-2.0	-1.0	-5.1
Large-scale claims	-0.4	-1.5	-0.6	-2.0	-1.8
Discounting	2.4	2.7	2.5	2.9	2.7
Other	-0.2	-0.2	-0.1	-0.3	0.1
Underlying (undiscounted)
claims ratio, net of reinsurance	70.0	66.9	70.9	67.0	66.8

The gross claims ratio increased to 65.5 (H1 2023: 62.6). The claims ratio, net of reinsurance, increased to 68.7 from 65.8 in H1 2023.

The first half of 2024 was marked by a high frequency of weather-related claims resulting from the heaviest snowstorm and the coldest January in more than ten years as well as the storm Rolf in February. Furthermore, April became the wettest on record in Denmark, followed by the warmest May on record, which caused more rain and drought claims. By comparison, weather-related claims in H1 2023 were DKK 15m below the normalised level. As a result, weather-related claims in H1 2024 amounted to DKK 195m, significantly above the H1 2023 level (DKK 115m) and the normalised modelled level of DKK 145m.

Large-scale claims amounted to DKK 22m, significantly below the level last year (DKK 73m) and the normalised modelled level of DKK 55m.

The discounting effect was slightly lower at 2.4pp.

The run-off profit, net of reinsurance, was DKK 161m (H1 2023: DKK 114m), representing a 0.5pp positive effect on the claims ratio. Q1 2024 was marked by extraordinarily high run-off gains related to the storm Pia experienced in December 2023 and a one-off gain from the estate after a former subsidiary of Topdanmark Forsikring A/S.

The underlying claims ratio rose by 3.1pp to 70.0. Our pricing and efficiency measures continue to yield results, but these were more than offset by approx. 2,000 more weather-

05.07.2024.xlsx Skadeforløb TD

driven claims within motor and personal accident insurance in Q1 2024 alone, coupled with rising average claims within motor insurance fuelled by higher wages and costs for spare parts.

Furthermore, Q2 2024 saw a high level of large fire-related claims in private houses (not captured in the large-scale claims definition) following the very dry environment especially in May, corresponding to a 0.6pp increase in the underlying claims ratio. Further, workers' compensation was adversely impacted by lower real interest rates.

In addition, the acquisition of Oona Health added seasonally higher claims in H1 2024, causing a headwind to the underlying claims ratio. Please note that this relates to systematic timing of claims over the calendar year within the health insurance industry and has no incremental impact on our profit forecast model for 2024. This, in combination with the partly weather-driven effects and fire-related claims mentioned earlier, explains the vast majority of the increase in the underlying claims ratio.

It is important to note that although the underlying claims ratio is, among other things, adjusted for large-scale claims and weatherrelated claims, the underlying claims ratio will by nature continue to be impacted by the inherent volatility of an insurance portfolio.

Expense ratio

Z:\KONCREGN\2024_06 Regn\2.Tabeller\Udvikling i skadeforløbet\Claims ratio, net of reinsurance IFRS 17 06_2024

The expense ratio was 16.7, down from 17.1 in H1 2023. The improvement was driven by tight cost control throughout the Group as well as continued positive effects from our efficiency programme. Part of the improvement is driven by phasing, but the strong first half of the year leads to a somewhat lower expectation for fullyear costs.

Combined ratio

The combined ratio was 85.4 (H1 2023: 82.9). Excluding run-off, the combined ratio was 88.3 (H1 2023: 85.2).

Reinsurance

The catastrophe reinsurance programme has been renewed for one year as at 1 July 2024 with terms and conditions reflecting the development in our modelled exposure. The programme still covers claims up to DKK 5.1bn with a retention of DKK 150m.

Insurance service result for Q2 2024

Insurance revenue increased by 13.6% to DKK 2,857m, corresponding to an organic growth of 5.8% when adjusting for the acquisition of Oona Health, up from the reported organic growth of 4.3% in Q1 2024. The private segment accounted for a 23.8% reported growth (7.3% organic growth), and the SME segment accounted for a 4.1% increase.

The gross claims ratio increased to 66.3 (Q2 2023: 62.4). The claims ratio, net of reinsurance, increased to 69.0 from 65.3 in Q2 2023. The claims ratio in Q2 2024 was affected by an underestimated impact from the timing of Easter, whereby claims in Q1 2024 were underestimated by approx. DKK 30m, leading to corresponding DKK 30m higher claims in Q2 2024. This effect corresponds to an adverse impact of 1.1pp on the reported and underlying claims ratio in Q2 2024. Please note that this effect has no bearing on the overall result for the first half of 2024.

Weather conditions fluctuated during the quarter with high precipitation in April and high temperatures and low precipitation in May. Weather-related claims amounted to DKK 58m, somewhat higher than the benign level experienced in Q2 2023 (DKK 26m) but largely in line with the normalised modelled level of DKK 55m.

Large-scale claims amounted to DKK 17m, significantly lower than the level last year (DKK 50m) and slightly lower than the

normalised modelled level of DKK 27.5m. Q2 2024 was affected by a few large firerelated claims in the commercial segment.

Lower interest rates since Q2 2023 caused a 0.4pp lower discounting effect.

The run-off profit, net of reinsurance, was DKK 61m, largely in line with the level in Q2 2023 (DKK 55m).

The underlying claims ratio increased by 3.9pp to 70.9. In addition to the mentioned effect from timing of Easter, this was due to a higher frequency of large fires in private houses, and a higher claims frequency and rising average claims in motor. Stochastically more large fires in the private segment, primarily due to very dry environment in May, accounted for a 1.2pp deterioration of the underlying claims ratio. Adjusted for calendar effects, motor claims frequency was flat in Q2 2024, which is a continuation of the trend from Q1 2024. Furthermore, average claims in motor insurance continued to rise through Q2 2024 fuelled by rising wages and costs for spare parts. The developments in motor insurance are currently being mitigated through price increases, which typically take 12-18 months to earn through. Furthermore, the acquisition of Oona Health added seasonally higher claims in H1 2024, causing a headwind to the underlying claims ratio. In addition, the underlying claims ratio is adversely impacted by higher claims administration costs due to our investments in upscaling claims personnel due to higher weather-related claims frequencies in general.

The expense ratio was 17.0 (Q2 2023: 17.0). The stable development was driven by tight cost control throughout the Group as well as continued positive effects from our efficiency programme, which fully offset the expected headwind from amortisations related to changing and migrating core IT systems as well as the inclusion of Oona Health.

The combined ratio was 86.0 (Q2 2023: 82.3). Excluding run-off, the combined ratio was 88.2 (Q2 2023: 84.5).

Segment reporting

Private

Private	H1	H1	Q2	Q2	Full year
(DKKm)	2024	2023	2024	2023	2023
Insurance revenue	2,963	2,407	1,496	1,208	4,926
Claims incurred	-2,047	-1,527	-1,067	-759	-3,203
Expenses	-500	-400	-258	-201	-813
Net reinsurance	-39	-34	-13	-20	-54
Insurance service result	377	446	158	228	856
Run-off profits, net of reinsurance	2	66	-6	18	94
Gross claims ratio	69.1	63.4	71.3	62.8	65.0
Net reinsurance ratio	1.3	1.4	0.9	1.7	1.1
Claims ratio, net of reinsurance	70.4	64.9	72.2	64.5	66.1
Gross expense ratio	16.9	16.6	17.2	16.7	16.5
Combined ratio	87.3	81.5	89.4	81.2	82.6
Combined ratio excl. run-off profits	87.4	84.2	89.0	82.7	84.5

The private segment services individual households in Denmark. The private segment also includes Oona Health.

Insurance revenue increased by 23.1% to DKK 2,963m with the inclusion of Oona Health. Organic growth amounted to 6.8% and was positively impacted by higher indexation, pricing initiatives, a stronger net customer inflow, and continued good traction in Oona Health.

The insurance service result was DKK 377m, DKK 69m below the level in H1 2023.

Run-off was a profit of DKK 2m, DKK 64m below the level last year corresponding to a 2.6pp deterioration of the claims ratio.

The claims ratio, net of reinsurance, rose by 5.5pp to 70.4. Weather-related claims amounted to DKK 97m (H1 2023: DKK 66m). Especially Q1 2024 was affected by the harsh winter weather.

Motor insurance saw a rising claims ratio, partly due to the harsh winter weather in Q1 2024, but also due to a rise in average claims. The developments in motor insurance are currently being mitigated through price increases, which typically take 12-18 months to earn through. Further, while Q1 2024 saw fewer fires, Q2 2024 saw a significant increase in large fires in private houses. The frequency of large fires in excess of DKK 5m per claim was four times higher in H1 2024 than H1 2023. In addition, the acquisition of Oona Health added seasonally higher claims in H1 2024, causing a headwind to the underlying claims ratio.

As expected, the expense ratio rose to 16.9, mainly driven by higher amortisations related to the ongoing core IT platform development, and partly offset by tight cost control.

The combined ratio was 87.3 (H1 2023: 81.5). Excluding run-off, the combined ratio was 87.4 (H1 2023: 84.2).

Segment reporting SME

SME	H1	H1	Q2	Q2	Full year
(DKKm)	2024	2023	2024	2023	2023
Insurance revenue	2,696	2,613	1,363	1,309	5,252
Claims incurred	-1,657	-1,614	-829	-811	-3,582
Expenses	-447	-459	-230	-227	-892
Net reinsurance	-145	-130	-64	-53	-174
Insurance service result	447	410	241	218	604
Run-off profits, net of reinsurance	159	49	67	36	110
Gross claims ratio	61.5	61.8	60.8	62.0	68.2
Net reinsurance ratio	5.4	5.0	4.7	4.0	3.3
Claims ratio, net of reinsurance	66.8	66.7	65.5	66.0	71.5
Gross expense ratio	16.6	17.6	16.8	17.3	17.0
Combined ratio	83.4	84.3	82.3	83.3	88.5
Combined ratio excl. run-off profits	89.3	86.2	87.3	86.1	90.6

The SME segment services Danish-based SMEs and agricultural businesses.

Insurance revenue increased by 3.1% to DKK 2,696m. Growth was higher than the same period last year, mainly due to higher indexation and pricing initiatives.

The insurance service result increased by DKK 37m to DKK 447m.

The claims ratio, net of reinsurance, was almost unchanged at 66.8.

Run-off profits were DKK 110m higher than the level last year, representing a 4.0pp improvement of the claims ratio. Run-off gains were extraordinarily high in Q1 2024, related to the storm Pia experienced in December 2023, and a one-off gain from the estate after a former subsidiary of Topdanmark Forsikring A/S.

Weather-related claims amounted to DKK 98m (H1 2023: DKK 49m), causing a 1.8pp higher claims ratio than last year. Weather-related claims were mainly driven by the harsh winter

experienced in Q1 2024. In addition, we saw a higher frequency of motor claims in Q1 2024 due to the winter weather and a rise in average claims. The developments in motor insurance are currently being mitigated through price increases, which typically take 12-18 months to earn through.

Large-scale claims were 1.9pp below the level last year.

Workers' compensation was adversely impacted by lower real interest rates.

The expense ratio decreased to 16.6 from 17.6 in H1 2023 due to tight cost control and efficiency measures.

The combined ratio improved to 83.4 (H1 2023: 84.3). Excluding run-off, the combined ratio rose to 89.3 (H1 2023: 86.2).

					Investment result
--	--	--	--	--	-------------------	--

Investment result		Portfolio 30 June
	2024	2023	Return H1 2024		Return H1 2023		Return Q2 2024		Return Q2 2023
		(DKKbn)	(DKKm)	%	(DKKm)	%	(DKKm)	%	(DKKm)	%
Danish equities	0.1	0.1	9	8.7	12	8.7	0	0.2	3	2.2
Foreign equities	0.4	0.5	60	13.2	81	16.5	10	2.4	33	6.1
Unlisted equities and hedge funds	0.3	0.2	28	11.1	23	9.5	18	6.9	15	6.1
Government and mortgage bonds	13.7	15.8	146	1.0	152	1.0	55	0.4	30	0.2
Credit bonds	0.3	0.3	3	1.0	8	3.3	2	0.6	2	0.9
Index linked bonds	0.6	0.7	-22	-3.4	8	1.2	-20	-3.1	-11	-1.6
CLOs	0.0	0.1	0	0.0	17	11.9	0	0.0	7	5.0
Properties	0.7	0.7	10	1.3	-1	-0.2	-4	-0.5	12	1.7
Inflation swaps	0.0	0.1	-13	-	-16	-	-12	-	-6	-
Expenses, money markets etc.	0.6	0.3	10	0.6	14	0.4	7	0.4	0	0.0
Subordinated loan capital	-1.1	-1.1	-35	-3.2	-29	-2.6	-18	-1.6	-16	-1.4
Investment return	15.7	17.7	194	1.1	269	1.3	39	0.2	70	0.3
Insurance finance income and expenses			46		-210		43		-136
Net investment result		240		59		82		-66

The investment result for H1 2024 includes income from insurance (DKK 244m), income from the parent company (DKK -29m, presented in the line "Parent company etc." in financial highlights), and profit on owner-occupied properties (DKK 24m, eliminated in the Group accounts and in financial highlights).

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The net investment result was DKK 240m in H1 2024 (H1 2023: DKK 59m). In Q2 2024, the net investment result was DKK 82m (Q2 2023: DKK -66m).

The positive net investment result in Q2 2024 was supported by exposure in both public and private equity markets, running yields and lower provisions attributed to capitalisation factors.

The predominant investment themes in Q2 2024 were increasing inflation and the surprise election in France. During the first part of the quarter, risk-assets struggled due to increasing interest rates, driven by a higherthan-expected inflation in the US, as the discounting effect dominated equities. In the latter part of the quarter, markets were shaken by the unexpected election announcement in France, causing uncertainty about the future political landscape. Despite these adverse events, Q2 2024 was relatively calm with low overall market volatility. This environment supported carry assets, such as Danish mortgage bonds.

The "free" portfolio, which consists of the remaining assets after matching liabilities and liquidity reservations, contributed positively to the overall investment return. The positive contribution can primarily be attributed to the equity exposure. Both public and private equity positions delivered positive returns during the quarter. These equity holdings span globally with all regions contributing positively to the return. Geographically, the most significant contribution came from the US exposure as especially the tech sector generated high returns. The overall equity exposure was gradually reduced throughout the quarter.

Additionally, the property portfolio, consisting solely of owner-occupied properties, contributed slightly negatively to the overall investment return due to an adjustment of the value of one of the properties. This negative effect more than outweighed the usual positive return from rent.

The "matching" portfolio contributed positively to the overall investment return. On the asset side of the "matching" portfolio, the continuation of the low-volatility regime supported the carry assets. The biggest positive return factor during the quarter was the running yields and curve roll compared to the discounting curve. We saw smaller positive contributions from spread relative to the discounting curve and duration. The DKK-EUR spread and volatility factor, primarily from Danish callable bonds, contributed negligibly.

The duration matching strategy, which hedges interest rate risk on insurance provisions

using fixed income assets - primarily Danish mortgage bonds and derivatives - performed as expected.

On the liability side, the main positive contributing factor was the wage component of the capitalisation factors. The positive contribution stems from a decrease in the wage curve, driven by lower wage projections from The Danish Economic Councils (DØRS). Consequently, the insurance provisions decreased, impacting the net investment result in Q2 positively. The wage component of the capitalisation factors is not hedged due to a lack of suitable financial instruments.

Parent company etc.

The parent company, Topdanmark, does not perform any independent activities. The result of the parent company etc. includes, among other things, Group costs. The result of the parent company decreased by DKK 43m to DKK -60m.

Taxation

The tax charge on continuing operations was DKK 252m of the pre-tax profit of DKK 935m, corresponding to an effective tax rate of 26.9% (H1 2023: 26.7%). As at 1 January 2024, the statutory tax rate for Topdanmark Forsikring A/S has increased to 26% (2023: 25.2%). The effective tax rate was higher than the statutory tax rate of 26% primarily due to permanent non-deductible expenses related to e.g. the employee share programme.

Discontinued operations

On 1 May 2024, Topdanmark entered into agreement on the completion of the IT separation of Topdanmark Liv Holding A/S, and at the same time, renewed the agreement with Nordea on the distribution of non-life insurance products by up to five years. The one-off costs of DKK 195m associated with the agreement are included in the line item "Profit after tax, discontinued operations" in Q2 2024.

As announced in the interim report for Q1 2024, the Nordea group has reserved the right to raise claims against Topdanmark Forsikring A/S for certain potential losses. At present, there is no new information around these potential claims, and this contingent liability thus remains.

Efficiency programme

The main focus areas of the efficiency programme are:

Automation, digitalisation and fraud
Risk and pricing
Procurement and cost efficiency.

The annual gross efficiency gains are targeted to be DKK 650m in 2025 of which DKK 540m in 2024. Please refer to the Annual Report 2023 for the details of the programme.

Topdanmark's efforts to become more efficient are progressing according to plan.

Solvency calculation and capital requirements

Solvency cover	30 Jun	31 Mar	31 Dec	30 Jun
(DKKm)	2024	2024	2023	2023
Shareholders' equity	4,256	5,138	4,722	4,310
Proposed dividend	0	-1,035	-1,035	0
Deferred tax on security funds	362	362	362	362
Profit margin	1,276	1,552	1,594	1,269
Intangible assets	-4,215	-4,133	-4,078	-1,463
Other	195	204	207	192
Tax effects	76	-18	-44	-111
Subordinated loan tier 1	400	400	400	400
Subordinated loans tier 2	700	700	700	700
Own funds	3,049	3,170	2,828	5,660
Solvency requirement	1,418	1,511	1,468	1,496
Solvency cover (%)	215	210	193	378
Potential dividend for the interim periods was not deducted.

Solvency II provides insurance companies with the opportunity to develop their own fully or partially internal risk model for solvency calculations. We use such a partially internal model developed in-house to calculate the insurance risk, and the model is approved by the Danish FSA.

The solvency cover for the Group increased to 215% at the end of Q2 2024 from 210% at the end of Q1 2024. Own funds were positively affected by earnings in the quarter, which was more than offset by the systematic seasonally lower profit margin and increased intangible assets. The solvency capital requirement decreased somewhat, mainly due to a lower

symmetrical adjustment to equity exposures and gradually lower equity exposure during the quarter.

Topdanmark Forsikring A/S has an outstanding subordinated tier 1 loan (restricted tier 1 capital notes) of DKK 400m. This loan is perpetual, but includes an option enabling Topdanmark to redeem the loan as at 22 December 2027. Further, Topdanmark Forsikring A/S has an outstanding subordinated tier 2 note of DKK 700m with maturity in 2031 and first call date in 2026.

Profit forecast model 2024 (DKKm)			Forecast 2024 30 June 2024			Forecast 2024 31 March 2024	Results 2023
Insurance service result	1,770		2,005	1,790	–	2,120	1,507
Net investment result	260		280	220	–	245	97
Other items	-115		-110	-90	–	-85	-106
Profit on insurance	1,915	–	2,175	1,920	–	2,280	1,498
Special costs	-55		-50	-85	–	-80	-39
Parent company etc.	-130		-120	-120	–	-110	-35
Profit before tax	1,730	–	2,005	1,715	–	2,090	1,424
Tax	-475		-545	-465	–	-565	-372
Profit after tax, continuing operations	1,255	–	1,460	1,250	–	1,525	1,051
Profit after tax, discontinued operations	-195	–	-195	0	–	0	0
Transaction costs after tax	-110	–	-90	0	–	0	0
Profit	950	–	1,175	1,250	–	1,525	1,051

Z:\ZTRYKNET\Regn 2024\H1 2024\Kopi af Solvency cover 06 2024 08.07.2024.xlsx Solvency cover TD kvt.

Z:\ZTRYKNET\Regn 2024\H1 2024\Kopi af Profit forecast model 06 2024.xlsxTD-KC