Topdanmark — Earnings Release 2012

Aug 21, 2012

21 August 2012
Announcement No. 09/2012

Key features

H1 2012

-- Post-tax profit increased to DKK 846m (H1 2011: DKK 726m).
-- Profit per share increased to DKK 64.8 (H1 2011: DKK 52.0).
-- The combined ratio improved to 87.6% (H1 2011: 89.8%). Excluding run-off
profits it improved to 89.5% (H1 2011: 91.1%).
-- Premiums increased 1.2% in non-life insurance and 1.9% in life insurance.
-- The Danish Financial Supervisory Authority (DFSA) has required Danish
non-life insurance companies to base the calculation of the value of their
provisions on a new interest rate curve from 12 June 2012. As a result
Topdanmark has generated a capital gain of DKK 76m in non-life insurance.

Q2 2012

-- Post-tax profit: DKK 285m (Q2 2011: DKK 301m).
-- Profit per share: DKK 22.1 (Q2 2011: DKK 21.8).
-- Combined ratio: 84.9% (Q2 2011: 86.6%).
-- Combined ratio excluding run-off profits: 86.8% (Q2 2011: 88.1%).
-- Trend in premiums: 1.7% growth in non-life insurance and 3.5% decline in
life insurance.

Profit forecast model for 2012

-- Topdanmark continues to assume premium growth of 1-2% for non-life
insurance and a decline of around 5% for regular premiums in life
insurance.

-- The assumed combined ratio for 2012 has been adjusted from around 91% to
around 90%, excluding run-off results in H2 2012.

-- The post-tax profit forecast model for 2012 has been upgraded from DKK
1,250-1,350m to
DKK 1,300-1,400m representing a profit per share of DKK 106. This
assumption excludes run-off results in H2 2012.
-- In the profit forecast for 2012 the shadow account in life insurance has
been increased by DKK 144m from the previous profit forecast, after which
the balance of the shadow account will be DKK 244m at the end of 2012. The
shadow account will be included as income in a subsequent period.

Share buy-back

-- The share buy-back programme for 2012 has been increased by DKK 50m to DKK
1,450m representing a yield of 10.7%.
-- Topdanmark has bought back own shares of DKK 550m which leaves a balance of
DKK 900m of the 2012 programme.

In a webcast today Topdanmark's CEO, Christian Sagild, will be presenting the
financial highlights and comments on the forecast.

A conference call will be held today at 15:30 (CET) when Christian Sagild, CEO,
and Lars Thykier, CFO, will be available for questions regarding the half-year
report and the webcast. The call will be conducted in English.

In order to participate in the conference call, please phone:
UK dial-in number: +44 (0)20 7162 0125

US dial-in number: +1 866 803 8344
quoting reference 920954
10-15 minutes before the conference ask the operator to connect you to the
Topdanmark conference call – or listen to the live transmission of the call.

Please direct any queries to:
Christian Sagild
Chief Executive Officer
Direct tel.: +45 4474 4450

Lars Thykier
Chief Financial Officer
Direct tel.: +45 4474 3714

Steffen Heegaard
Group Communications and IR Director
Direct tel.: +45 4474 4017, mobile: +45 4025 3524