Topdanmark

Earnings Release • Oct 24, 2019

National Storage Mechanism | Additional information

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TOPDANMARK INTERIM REPORT FOR Q1-Q3 2019

24 October 2019, Announcement No. 13/2019

*Key features*

Q1-Q3 2019

• Post-tax profit of DKK 1,115m (Q1-Q3 2018:

  DKK 1,071m)
  - EPS was DKK 12.8 (Q1-Q3 2018: DKK 12.4)
  - Combined ratio: 82.1 (Q1-Q3 2018: 84.2)
  - Combined ratio excluding run-off: 87.0

  (Q1-Q3 2018: 87.3)
  - Premiums increased by 2.4% in non-life insurance and 13.5% in life insurance
  - Profit on life insurance was DKK 291m (Q1-Q3 2018:

  DKK 182m)
  - After return on non-life insurance provisions, the investment return was DKK 51m (loss)

  (Q1-Q3 2018: DKK 132m)
  - As stated in the Q1 Report, the change in the method for calculation of the volatility adjustment (VA) in Q1 2019 had a one-off negative impact on the combined net investment return from assets and liabilities of around DKK 200m pre-tax. In Q2 2019, the VA fell by further 9bp corresponding to a negative impact on the investment return of DKK 60m.

Q3 2019

• Post-tax profit of DKK 285m (Q3 2018: 459m)
• EPS was DKK 3.3 (Q3 2018: 5.3)
• Combined ratio: 84.9 (Q3 2018: 81.6)

• Combined ratio excluding run-off: 88.6

  (Q3 2018: 84.8)
  - Premiums increased by 2.0% in non-life insurance and 36.6% in life insurance
  - Profit on life insurance was DKK 72m (Q3 2018: DKK 77m)
  - After return on non-life insurance provisions, the investment return was DKK 47m (loss) (Q3 2018: DKK 92m).

Profit forecast model for 2019

• The assumed combined ratio for 2019 improved from 85-86 to 84-85, excluding run-off in Q4 2019
• The assumed premium growth for non-life insurance continues to be higher than the 1.7% growth in 2018
• The post-tax profit forecast model for 2019 is upgraded from DKK 1,250-1,350m to DKK 1,300-1,400m, excluding run-off in Q4 2019.

Assumptions for 2020

• Premium growth in non-life on the same level as in 2019, and a combined ratio of around 90, excluding run-off, are assumed for 2020

• Compared with the assumed combined ratio of

  89-90 excl. run-off for 2019 in the Q3 2018 report, the assumed combined ratio for 2020 is negatively impacted by 1.6pp due to lower interest rates.

Other events

• Topdanmark has entered into a distribution agreement with Nordea
• Topdanmark has introduced a crop insurance.

Webcast

In a webcast Group Communications and IR Director, Steffen Heegaard, will present the financial highlights and comment on the forecast.

Conference call

A conference call will be held today at 15:30 (CET) where Peter Hermann, CEO and Lars Thykier, CFO will be available for questions based on the interim report and the webcast. The call will be conducted in English.

In order to participate in the conference call, please call:

DK dial-in-number: +45 3544 5583

SE dial-in-number: +46 8566 42661

UK dial-in-number: +44 203 194 0544

US dial-in-number: +1 855 269 2604

10-15 minutes before the conference and 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:

Peter Hermann

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 tel.: +45 4025 3524

Attachment

• Topdanmark Interim Report for Q1-Q3 2019