23 August 2011 Announcement No. 18/2011

Highlights

H1 2011

Post-tax profit: DKK 726m (H1 2010: DKK 362m)
Profit per share: DKK 51.9 (H1 2010: DKK 23.3)
The combined ratio improved to 89.8% (H1 2010: 95.3%) due to lower weather-related claims
Combined ratio excluding run-off profits: 91.1% (H1 2010: 97.6%)
Growth in premiums: 1.5% in non-life insurance and 4.4% decline in life insurance.
Pre-tax result of life insurance: DKK 138m (H1 2010: DKK 94m).

Q2 2011

Post-tax profit: DKK 301m (Q2 2010: DKK 94m)
Profit per share: DKK 21.8 (Q2 2010: DKK 6.1)
Combined ratio: 86.6% (Q2 2010: 87.9)
Combined ratio excluding run-off profits: 88.1% (Q2 2010: 89.7%)
Growth in premiums: 0.1% in non-life insurance and 6.9% decline in life insurance.
Pre-tax result of life insurance: DKK 72m (Q2 2010: DKK 50m loss).

Profit forecast model for 2011

Assumed premium growth in non-life insurance continues to be 1-2%.
The assumed combined ratio has been changed to 91-92% from around 91% due to expenses related to cloudburst and lower interest rates; excluding run-off gains / losses in H2 2011
The profit forecast model for 2011 has been downgraded by DKK 250m to DKK 950-1,050m primarily due to both the investment return and the result of life insurance being lower than assumed in the Q1 report

Share buy-back

• The share buy-back programme for 2011 has been reduced by DKK 200m to DKK 1,200m representing a yield of 9.8%

In a webcast Topdanmark's CEO, Christian Sagild, presents 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 based on the H1 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: +1 334 323 6203 quoting reference 901647 10-15 minutes before the conference asking 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 Head of IR and Group Communications Direct tel.: +45 4474 4017, mobile: +45 4025 3524

Management's review

1 Highlights
3 Financial highlights
4 Results for H1 2011
4 Results for Q2 2011
4 Non-life insurance
8 Life insurance
9 Investment activities
11 Taxation
11 Solvency II
12 Profit forecast model for 2011
13 Share buy-back
14 Financial calendar
14 Accounting policies

Accounts for H1 2011 • Group

15 Profit and loss account
16 Statement of comprehensive income
17 Assets
18 Shareholders' equity and liabilities
19 Cash flow statement
20 Movements in shareholders' equity
21 Segment information
22 Notes to the accounts

Accounts for H1 2011 • Parent company

23 Profit and loss account and statement of comprehensive income
24 Balance sheet
25 Disclaimer
26 Management's statement

Topdanmark A/S Borupvang 4 DK - 2750 Ballerup Tel +45 44 68 33 11 Fax +45 44 68 19 06 Reg.No. 78040017

E-mail: [email protected] Web: www.topdanmark.com

Financial highlights

(DKKm)	Full year 2010	Q2 2010	Q2 2011	H1 2010	H1 2011
Premiums earned:
Non-life insurance	8,548	2,147	2,150	4,240	4,302
Life insurance	3,395	764	711	1,751	1,674
	11,943	2,911	2,861	5,991	5,976
Results:
Non-life insurance	1,092	198	329	397	823
Life insurance	384	(50)	72	94	138
Parent company etc.	31	(3)	(1)	(8)	5
Pre-tax profit	1,506	145	401	482	966
Tax	(338)	(51)	(99)	(120)	(240)
Profit	1,168	94	301	362	726

Shareholders' equity of parent company
at 1 January Profit	4,465 1,168	4,740 94	4,893 301	4,465 362	4,900 726
Share buy-back	(892)	(252)	(267)	(333)	(804)
Share-based payments	159	23	21	112	125
Other movements in shareholders' equity	1	0	0	1	1
Shareholders' equity of parent company
end of period	4,900	4,606	4,948	4,606	4,948
Deferred tax on security funds Shareholders' equity of Group end of period	(348) 4,553	(348) 4,258	(348) 4,600	(348) 4,258	(348) 4,600
Capital base, parent company*)	5,305	5,009	5,353	5,009	5,353
Total assets, parent company	5,712	5,447	6,418	5,447	6,418
Total assets, Group	57,542	56,964	59,724	56,964	59,724
Provisions for insurance and investment contracts:
Non-life insurance	15,139	16,289	16,166	16,289	16,166
Life insurance	31,166	30,255	30,666	30,255	30,666
Financial ratios (parent company)
Post-tax profit as a % of shareholders' equity	24.1	2.0	6.1	7.8	14.8
Post-tax profit per share (DKK)	77.2	6.1	21.8	23.4	52.0
Post-tax profit per share, diluted (DKK)	77.0	6.1	21.8	23.3	51.9
Net asset value per share (DKK)	338.6	304.0	362.2	304.0	362.2
Share buy-back per share (DKK)	58.8	16.3	19.3	21.4	57.5
Listed share price end of period	738	669	960	669	960
Average number of shares ('000)	15,131	15,447	13,823	15,472	13,973
Average number of shares, diluted ('000)	15,159	15,470	13,823	15,508	13,983
Number of shares end of period ('000)	14,472	15,149	13,659	15,149	13,659
Ratios non-life insurance (%)
Gross loss ratio	75.5	70.4	65.8	76.0	69.2
Net reinsurance ratio	2.4	2.6	4.6	3.8	4.6
Claims trend	77.9	73.0	70.4	79.8	73.8
Gross expense ratio	15.4	14.9	16.2	15.5	16.0
Combined ratio	93.3	87.9	86.6	95.3	89.8
Operating ratio	92.7	87.4	86.8	94.4	88.9

*) Shareholders' equity and loan capital

Results for H1 2011

The H1 2011 post-tax profit doubled to DKK 726m (H1 2010: DKK 362m); correspondingly, profit per share increased 122% to DKK 51.9.

Pre-tax profit increased to DKK 966m (H1 2010: DKK 482m); the technical result increased to DKK 483m (H1 2010: DKK 240m) primarily due to lower weather-related claims, the investment return etc. to DKK 339m (H1 2010: DKK 157m) and the result of life insurance to DKK 138m (H1 2010: DKK 94m).

Trend in pre-tax result	Full year	H1	H1
(DKKm)	2010	2010	2011
Non-life insurance
- Technical result	626	240	483
- Investment return after transfer
to technical result etc.	465	157	339
Profit on non-life insurance	1,092	397	823
Life insurance	384	94	138
Parent company etc.	31	(8)	5
Pre-tax profit	1,506	482	966

Results for Q2 2011

The Q2 2011 post-tax profit was DKK 301m (Q2 2010: DKK 94m).

The pre-tax profit increased DKK 256m to DKK 401m (Q2 2010: DKK 145m) due to improvements in both the technical result, the investment return and the result of life insurance.

The technical result improved to DKK 309m (Q2 2010: DKK 271m), the investment return etc. to DKK 20m (Q2 2010: DKK 73m loss) and the result of life insurance to DKK 72m (Q2 2010: DKK 50m loss).

Trend in pre-tax result (DKKm)	Q2 2010	Q2 2011
Non-life insurance
- Technical result	271	309
- Investment return after transfer
to technical result etc.	(73)	20
Profit on non-life insurance	198	329
Life insurance	(50)	72
Parent company etc.	(3)	(1)
Pre-tax profit	145	401

Non-life insurance

Premiums earned increased 1.5% to DKK 4,302m benefitting from price increases corresponding to 1.3pp. The price increases were mainly in the personal market (house and contents policies) and the effect will gradually decrease over the next three quarters. As a number of the other players in the Danish non-life insurance market are implementing price increases in the personal and SME markets, the loss of customers was relatively limited in H1 2011. The net effect of the price increases on premiums earned is estimated to be 0.9pp in H1 2011.

Premiums earned in H1 2011 were affected by a negative premium adjustment of DKK 31m for 2010 as the insurance needs of businesses were lower in 2010 than originally expected at the beginning of that year. The effect of the negative premium adjustments is declining and improved premium growth by 0.7pp as compared to H1 2010.

As announced in the 2010 Annual Report Topdanmark sold the portfolio of Nykredit Arbejdsskadeforsikring (workers' compensation insurance) to Gjensidige with effect from 1 January 2011 generating a 0.5pp negative effect on premiums in H1 2011. The proceeds of DKK 32m were included in the results on non-life insurance under "Other items".

It was also announced in the 2010 Annual Report that one large customer had given notice to terminate its relationship with the life insurance company and that the customer would also reduce its portfolio of illness / accident policies administered by life insurance (I/A). The removal of this portfolio had a 0.4pp negative effect on premiums in H1 2011.

The claims trend for I/A was worse in H1 2011 than in H1 2010. In years with a favourable claims trend in I/A the bonus paid to customers is deducted from premiums earned. Due to the worsening trend, a relatively modest amount was provided for the bonus in H1 2011, which had a positive effect on the premium growth.

Adjusted for the effect of premium adjustments, the sale of Nykredit Arbejdsskadeforsikring and the abovementioned claims trend for I/A, the underlying growth in premiums was 1-2% in H1 2011.

The claims trend improved to 73.8% (H1 2010: 79.8%) primarily due to a decline in weather-related claims to DKK 76m (H1 2010: DKK 300m) corresponding to 5.3pp.

Price increases improved the claims trend by 0.9pp.

The claims trend for I/A reflected the effect of having a few but large claims which have a long settlement period. The claims level before run-off was relatively low in H1 2011 which, seen in isolation, improved the claims trend

by 0.7pp. However, the overall trend for I/A had a 1.2 effect on the claims trend due to run-off losses from previous years.

Motor insurance improved the claims trend by 0.7pp.

Premium adjustments for previous years were DKK 31m lower than the H1 2010 level which improved the claims trend by 0.5pp in H1 2011.

Run-off profits net of reinsurance were DKK 55m (H1 2010: DKK 100m) affected by run-off losses of DK 32m for I/A and accident but run-off profits of DKK 54m for workers' compensation insurance. As compared to H1 2010, the run-off result had a 1.1pp adverse effect on the claims trend.

The trend in reinsurance (excluding weather-related claims and run-off) deteriorated 0.5pp due to fewer largescale claims in the Personal segment and Agricultural

lines and consequently the level of reimbursement from reinsurers was also lower.

Workers' compensation insurance had a 0.5pp adverse effect on the claims trend due to expectations of higher future inflation, an increase in provisions due to the Danish retirement reform and an increase in the number of reported claims.

As the discounting rate for H1 2011 was in line with that for H1 2010, changes in interest rates from H1 2010 had only a marginal effect on the claims trend for H1 2011.

The expense ratio increased to 16.0% (H1 2010: 15.5%) due to, among other factors, investment in increased

sales power and an increase in the pay-roll tax from 9.13% to 10.5% at the beginning of 2011.

Overall expenses on claims, reinsurance, sales and administration as a percentage of gross premiums earned (combined ratio) improved to 89.8% (H1 2010: 95.3%). Excluding run-off profits the combined ratio declined to 91.1% (H1 2010: 97.6%).

The reinsurance programme on storm has been renewed for one year from 1 July and remains unchanged at DKK 5.1bn including retention of DKK 100m. The renewal was effected with a minor increase in reinsurance costs. Further information on the storm programme is available in "Reinsurance" (pdf file) on www.topdanmark.com → Risk management.

Developments in Q2

Premiums earned increased 0.1% from Q2 2010 to DKK 2,150m. This relatively low growth in premiums in Q2 was due to the abovementioned loss of a large customer in I/A and the sale of the workers' compensation portfolio to Gjensidige Forsikring referred to above.

The claims trend improved to 70.4% in Q2 2011 (Q2 2010: 73.0%) due to, among other factors, fewer weatherrelated claims and the effect of price increases.

The expense ratio increased to 16.2% (Q2 2010: 14.9%) reflecting the low growth in gross premiums earned and investment in increased sales power.

The combined ratio improved to 86.6% (Q2 2010: 87.9%). Excluding run-off profits it improved to 88.1% (Q2 2010: 89.7%.

Financial highlights – Non-life insurance	Full year	Q2	Q2	H1	H1
(DKKm)	2010	2010	2011	2010	2011
Gross premiums earned	8,548	2,147	2,150	4,240	4,302
Technical interest	58	12	22	39	46
Claims incurred	(6,456)	(1,511)	(1,415)	(3,223)	(2,975)
Expenses	(1,320)	(320)	(349)	(657)	(690)
Net reinsurance	(204)	(57)	(99)	(159)	(199)
Technical profit	626	271	309	240	483
Investment return after transfer to technical result	445	(78)	14	147	297
Other items	20	5	6	10	42
Profit on non-life insurance	1,092	198	329	397	823
Run-off profits, net of reinsurance	204	38	33	100	55
Gross loss ratio (%)	75.5	70.4	65.8	76.0	69.2
Net reinsurance ratio (%)	2.4	2.6	4.6	3.8	4.6
Claims trend (%)	77.9	73.0	70.4	79.8	73.8
Gross expense ratio (%)	15.4	14.9	16.2	15.5	16.0
Combined ratio (%)	93.3	87.9	86.6	95.3	89.8
Operating ratio (%)	92.7	87.4	86.8	94.4	88.9

Segment reporting

Personal

The Personal segment sells policies for individual households in Denmark.

Premiums earned increased 1.5% to DKK 2,374m in H1 2011 whilst there was negative growth of 0.1% in Q2. On the one hand growth in H1 was affected by the price increases implemented in house and contents insurance and the lower bonus charged to the profit and loss account in I/A insurance in Q1 due to a claims trend with significant run-off losses. On the other hand growth was

impacted by lower sales through banks and a decline in premiums earned in illness /accident insurance in Q2 (due to the termination of the major customer relationship referred to above).

Sales through Topdanmark's own sales channels increased 9.8% from H1 2010 and competition improved slightly due to competitors' price increases.

The technical result increased DKK 31m to DKK 249m in H1 2011.

The overall claims trend for the Personal segment improved 2.1pp to 74.7%. Price increases improved the claims trend by 1.6pp and the fire claims trend improved it by 0.7pp. The explanation for the remaining improvement in the claims trend is more normal weather conditions and a favourable claims trend for motor. There were run-off losses of DKK 21m (H1 2010: DKK 52m profits) with a 3.1pp negative effect on the claims trend. The run-off result was a combination of a loss on illness / accident insurance and profits on motor insurance and most

personal lines. Excluding run-off the claims trend for illness / accident improved in H1 2011.

The expense ratio increased to 15.8% due to expansion of the sales team and the increase in the pay-roll tax referred to above.

The combined ratio improved to 90.5% (H1 2010: 91.5%). Excluding run-off profits the combined ratio improved to 89.6% from 93.7%.

Personal	Full year	Q2	Q2	H1	H1
(DKKm)	2010	2010	2011	2010	2011
Gross premiums earned	4,720	1,177	1,176	2,339	2,374
Technical interest	30	6	11	19	2 2
Claims incurred	(3,585)	(875)	(849)	(1,759)	(1,731)
Expenses	(708)	(167)	(192)	(344)	(375)
Net reinsurance	12	(10)	(21)	(37)	(41)
Technical result	470	131	125	218	249
Run-off profits / (losses), net of reinsurance	173	18	(38)	52	(21)
Gross loss ratio (%)	76.0	74.3	72.2	75.2	72.9
Net reinsurance ratio (%)	(0.3)	0.9	1.7	1.6	1.7
Claims trend (%)	75.7	75.2	73.9	76.8	74.7
Gross expense ratio (%)	15.0	14.2	16.4	14.7	15.8
Combined ratio %	90.7	89.4	90.3	91.5	90.5
Operating ratio (%)	90.1	88.9	89.4	90.7	89.6

SME and Industrial

The SME and Industrial segment offers policies for Danish-based SME, agricultural and industrial businesses.

Premiums earned increased 1.4% to DKK 1,938m in H1 2011. Growth in Q2 was 0.5% reflecting a greater loss of customers and slightly more negative premium adjustments than assumed.

The technical result increased DKK 214m to DKK 234m in H1 2011 due to more normal weather conditions as Q1 2010 suffered extraordinarily from snow loading claims particularly on farm buildings.

The claims trend improved 10.6pp to 72.9% primarily due to extraordinarily high weather claims of DKK 250m in Q1 2010. Fire claims increased with a 1.6pp effect on the claims trend and particularly the SME segment was hit by large-scale claims in Q2. Theft claims declined 0.4pp. Run-off profits increased to DKK 75m (H1 2010: DKK 49m) giving a 1.3pp positive effect on the claims trend.

The expense ratio declined 0.2pp to 16.3%. In numerical terms the expense level was unchanged.

The combined ratio improved to 89.2% (H1 2010: 100.0%). Excluding run-off profits the combined ratio improved to 93.1% (H1 2010: 102.5%).

SME and Industrial	Full year	Q2	Q2	H1	H1
(DKKm)	2010	2010	2011	2010	2011
Gross premiums earned	3,849	975	979	1,912	1,938
Technical interest	28	6	11	20	2 4
Claims incurred	(2,892)	(641)	(572)	(1,475)	(1,255)
Expenses	(613)	(153)	(157)	(315)	(316)
Net reinsurance	(217)	(47)	(78)	(122)	(157)
Technical result	154	140	184	20	234
Run-off profits, net of reinsurance	31	20	70	49	75
Gross loss ratio (%)	75.1	65.7	58.4	77.1	64.7
Net reinsurance ratio (%)	5.6	4.8	8.0	6.4	8.1
Claims trend (%)	80.8	70.5	66.4	83.5	72.9
Gross expense ratio (%)	15.9	15.7	16.0	16.5	16.3
Combined ratio %	96.7	86.2	82.4	100.0	89.2
Operating ratio (%)	96.0	85.7	81.5	99.0	88.1

Life insurance

In the first half of 2011 life insurance made a profit of DKK 138m (H1 2010: DKK 94m).

Profit on life insurance activities comprises the sum of the profits generated by Life I and Life V plus the financing

result of Life Holding. These profits were calculated in accordance with the stated policy on the calculation of profit for the life insurance companies, see "Calculation of profit" on www.topdanmark.com → Business → Life insurance.

Result of life insurance			H1			H1
			2010			2011
(DKKm)	Life I	Life V	Group	Life I	Life V	Group
Investment return	22	38	60	35	22	57
Risk allowance	39	26	64	62	31	9 3
Transferred, shadow account	(39)		(39)	(9)	(6)	(14)
Other			9			3
Profit on life insurance			94			138
Shadow account end of period	180	0	180	9	6	14

Most of the customers are distributed into the three companies, Life I, Life V and Link. Policies written since 1 July 1994 with guaranteed pension benefits of 2.5%, 1.5% and 0.5% have been placed in Life I which is also the company for new customers with guaranteed pension benefits. Unit-linked schemes are written by Topdanmark Link. Schemes written before 1 July 1994 with guaranteed pension benefits of 4.5% have been placed in Life V.

The return on funds owned by customers, before pension return tax, was 1.8% in Life I and 1.2% in Life V in H1 2011. After pension return tax and the change in provisions to strengthen the guarantees, the net return was 1.5% in Life I and 2.8% in Life V. The investment

return on shareholders' equity was 2.7% in Life I and 2.5% in Life V in H1 2011. The investment return on shareholders' equity deviates from that on customers' funds as the investments are made in accordance with different investment strategies via separate portfolios for the customers and the shareholders' equity; for example, at present the shareholders' equity does not invest in equities nor is it involved in instruments to hedge the guaranteed benefits.

As a result of the new contribution order taking effect on 1 January 2011 all policies of Life I and Life V have been split into contribution groups (interest rate, risk and cost groups). In accordance with the definition of profits both

the result and the risk allowance will be calculated for each contribution group. If the result of a contribution group is not sufficiently high to cover the risk allowance being transferred to shareholders' equity or a contribution group incurs a loss, the amount will be transferred to the shadow account.

The risk allowance for H1 2011 was DKK 93m. "The insurance technical result before bonus contribution" was DKK 338m in Life I and Life V combined. However, as this result was not sufficiently high for Topdanmark to include the full risk allowance in all the contribution groups, DKK 14m was transferred to the shadow accounts, which will be included in income gradually as profits are generated in those contribution groups which have made transfers to the shadow accounts.

The collective bonus potential declined DKK 36m in Life I and increased DKK 82m in Life V in H1 2011. Overall the collective bonus potential was DKK 81m in Life I and DKK 519m in Life V.

Gross premiums declined 4.4% to DKK 1,674m (H1 2010: DKK 1,751m).

Regular premiums declined 7.8% to DKK 1,284m (H1 2010: DKK 1,393m) primarily due to the loss of one individual large customer in Q1 2011.

Single premiums increased 9.2% to DKK 390 (H1 2010: DKK 358m).

Premiums on unit-linked policies increased 25.4% to DKK 510m (H1 2010: DKK 406m), accounting for 55.7% of new life insurance business.

Developments in Q2 2011

The result of life insurance improved to a DKK 72m profit in Q2 2011 from a DKK 50m loss in Q2 2010 primarily due to a DKK 103m lower transfer to the shadow account and a DKK 18m increase in the risk allowance.

Result of life insurance			Q2			Q2
			2010			2011
(DKKm)	Life I	Life V	Group	Life I	Life V	Group
Investment return	9	18	26	13	10	2 2
Risk allowance	20	13	33	35	15	5 1
Transferred, shadow account	(99)	0	(99)	7	(3)	4
Other			(10)			(5)
Profit / (loss) on life insurance			(50)			72

Investment activities

Topdanmark Group excluding the life insurance group

The investment return was DKK 538m in H1 2011 including revaluation of provisions and income from associated companies but before the transfer to the technical result (H1 2010: DKK 365m).

It is Topdanmark's policy to accept a certain level of financial risk, given its strong liquid position and stable, high earnings from insurance operations. Topdanmark has invested in, among others, equities, properties and CDOs in order to improve the average investment return. The return on the most significant classes of assets is set out in the following table.

Investment return	Portfolio 30 June
	2010	2011	Return Q2 2010		Return Q2 2011		Return H1 2010		Return H1 2011
		(DKKbn)	(DKKm)	%	(DKKm)	%	(DKKm)	%	(DKKm)	%
Danish equities	0.3	0.4	2	0.6	(21)	(5.1)	28	8.3	(13)	(3.2)
Foreign equities	0.8	0.8	(73)	(8.4)	(10)	(1.1)	(32)	(3.8)	38	4.6
Government and
mortgage bonds	11.7	12.1	3	0.0	80	0.7	153	1.4	205	1.7
Credit bonds	0.8	0.8	(12)	(1.6)	()	(0.3)	23	3.3	24	3.1
CDOs	0.7	0.8	27	3.8	48	6.2	56	7.6	168	24.7
Properties	1.3	1.3	19	1.5	19	1.4	36	2.8	48	3.6
Assets rel. to I/A	1.6	1.8	25	1.6	17	0.9	56	3.7	59	3.5
Money market etc.	2.4	2.9	30	0.9	8	0.2	45	1.3	16	0.7
Interest-bearing debt	(1.9)	(3.2)	(9)	(0.4)	(16)	(0.5)	(20)	(0.7)	(29)	(1.0)
	17.8	17.6	12	0.1	124	0.7	346	2.0	516	3.0
Asset management			10		12		19		22
Total investment return			22		135		365		538
Transferred return technical provisions
Discounting			(80)		(92)		(165)		(171)
Technical interest			(12)		(22)		(39)		(46)

The exposure in foreign equities and credit bonds have been adjusted by use of derivatives. The return percentages are calculated as the ratio between the return on financial instruments and the size of the exposure of the underlying asset. The return on government and mortgage bonds and assets related to I/A (illness/accident) includes revaluations of claims provisions.

At the end of Q2 associated companies accounted for DKK 51m of the total equity investment of DKK 1,154m. The post-tax equity exposure was DKK 682m (pre-tax: DKK 909m) excluding associated companies but including the impact of derivatives.

The equity portfolios are well diversified with no large individual positions. The composition of the portfolios is based on OMXCCAP for Danish equities (representing around 30% of the portfolio at 30 June 2011) and MSCI World in the original currency for foreign equities.

The Group's investments have no significant concentration of credit risk except for AAA-rated Danish mortgage bonds which are considered to be particularly safe assets according to the Danish Financial Business Act.

Since 31 October 2008 Danish insurance companies and pension funds have calculated the value of provisions by using a discount rate representing the combined weighting of the swap rate and the option-adjusted Danish mortgage credit rate. The portfolio is dominated by Danish mortgage bonds, which ensures consistency between the investment return and the discount rate.

The class of government and mortgage bonds comprises primarily Danish mortgage bonds and revaluation of technical provisions. In addition, there are a small number of government and covered bonds and derivatives. Covered bonds are AAA-rated mortgage bonds where the size of the loan may not exceed 70% of the value of the security. If the value of the security declines so much that the requirement is not fulfilled, the issuer will provide further security.

Credit bonds with a rating lower than BBB (DKK 318m) comprise senior secured bank loans and high yield bonds, part of which are convertible, and subordinated bank capital issued by EU banks (tier 1: DKK 64m). Credit bonds with a rating of BBB and A (DKK 277m) are ordinary and convertible corporate bonds, annuity policies and subordinated bank capital issued by EU banks (tier 1: DKK 14m, tier 2: DKK 21m). Credit bonds with a rating higher than A (DKK 24m) are corporate bonds.

The underlying assets of CDOs are mostly leveraged loans (DKK 613m) while the remainder are primarily CDOs with investment grade investments as the underlying assets.

	Group excl. life insurance
(DKKm)			Q2 2010 Q2 2011 H1 2010 H1 2011
Return
AAA and AA	0	1	5	3
Lower than AA	27	47	51	165
Total return	27	48	56	168
Interest	20	27	36	51
Revaluations	7	21	20	117
Total return	27	48	56	168
Book value 30 June
AAA and AA			120	81
Lower than AA			609	717
Total book value			729	798

CDOs – Returns and portfolios

The table shows the Group's CDO return for H1 2011 and the market value of the portfolios at 30 June. The maturity of the CDO investments is dependent on any changes in the payments made by the underlying assets which in turn are dependent on changes in the general economy and therefore it is not possible to outline a maturity distribution for the portfolio.

The property portfolio comprises mainly owner-occupied property (DKK 780m), rental property (DKK 351m), rental office property (DKK 68m) and property rented for hotel use (DKK 122m). The tenancies for the residential and hotel properties are subject to a short termination notice but re-letting is not considered to be a problem. The office property is rented under contracts with no option to terminate prior to 2015. Over 99% of the property portfolio is currently let. The properties are valued in accordance with the rules of the DFSA i.e. at market value taking into account the level of rent and the terms of the tenancy agreements.

The class of "Assets related to I/A" (illness / accident) comprises the investments in Topdanmark Livsforsikring corresponding to the size of the illness / accident provisions.

"Money market etc." comprises primarily money market deposits and intra-group balances while "Interest-bearing debt" comprises money market loans, negative intragroup balances, subordinated loans and issued hybrid capital.

Model prices

A side effect of the financial crisis was that the market for certain of Topdanmark's investment assets disappeared. As it was not immediately possible to record these assets at market value, Topdanmark chose to use the mark-tomodel method, from Q4 2008, on part of the CDO portfolio and other structured products as well as illiquid loans and credit bonds.

As at 31 March 2011 market pricing was sufficiently strong for it no longer being necessary to record investments assets at model prices and therefore all these investment assets have been recorded at a publicly available value. At 31 December 2010 the value of investment assets recorded at mark-to-model was DKK 160m in the Group excluding life insurance.

Taxation

The tax charge was DKK 240m of a pre-tax profit of DKK 966m corresponding to an effective tax rate of 24.8% (H1 2010: 25.0%).

Solvency II

Topdanmark believes that solvency capital of DKK 4.5bn (before allocation of solvency capital for growth) will be sufficient on the change to Solvency II, if its internal nonlife insurance model is approved.

Correspondingly, Topdanmark believes that the solvency capital requirement will increase DKK 600-800m if the capital requirement is calculated using the standard model. In this case the difference in the solvency requirement between using the internal model and the standard model could be financed by tier 2 capital.

Topdanmark expects that its internal model will be approved but wishes to ensure sufficient solvency capital, in good time, by 2013 if contrary to expectation the internal model is not approved.

In this light Topdanmark announced in its Q1 2011 report that it intended to issue subordinated notes of DKK 300- 400m in Q2 2011 as resources for the implementation of Solvency II at the beginning of 2013.

On 24 June 2011 Topdanmark Forsikring A/S therefore issued subordinated notes of DKK 400m. The interest rate on the notes is 6.633% p.a in the period from and including 24 June 2011 up to 24 June 2016 and in the period from and including 24 June 2016 up to 24 June 2019 it is equivalent to 3 month Cibor plus 5.25% p.a. These subordinated notes will be due for redemption on 24 June 2019 at par. Topdanmark is entitled to redeem early at par from and including 24 June 2016 subject to the prior approval of the DFSA.

Profit forecast model for 2011

Traditionally Topdanmark does not publish actual profit forecasts. Instead it publishes the expected level of results if a number of assumptions of the return in the financial markets are met. As the return in the financial markets changes on a daily basis, Topdanmark's profit forecast model will already deviate from actual expectations by the time it is published. Therefore set out in Risk scenarios (pdf-file) on www.topdanmark.com → Risk management is additional information on how changes in the assumptions underlying the profit forecast model will affect the results.

As can be seen, the investment return forecast model is not based on a specific estimate of the expected investment return for the rest of the year but solely on a long-term standard assumption of the return.

In the Q1 2011 report the profit forecast model for 2011 was DKK 1,200-1,300m based on, among others, the following assumptions:

Non-life premium growth of 1-2%
Combined ratio of around 91%, excluding run-off profits / losses in the last three quarters of 2011
Weather-related claims of DKK 190m, DKK 25m of which occurs in Q2 2011. Weather-related claims were DKK 70m in Q1 2011 as compared to the DKK 50m originally expected
An annual 7.0% return on equities and unchanged foreign exchange rates from the level on 13 May 2011
A 3.6% return (risk-free interest rate plus 2.0pp) on those interest-bearing assets not hedging the provisions for outstanding claims
Recognition as income of the risk allowances in Life I and Life V less DKK 25m corresponding to DKK 143m

Since this most recent profit forecast model was published in the Q1 2011 report, the following assumptions have changed:

On 2 July the Copenhagen area was hit by a massive cloudburst causing Topdanmark gross claims estimated to be around DKK 600m. Topdanmark's reinsurance programme covers cloudburst claims exceeding DKK 50m. In addition a reinstatement premium of DKK 60m must be paid to renew the reinsurance cover. Consequently, overall claims relating to the cloudburst are expected to be DKK 110m.

In its general forecast model Topdanmark has assumed weather-related claims of DKK 45m in Q3 and DKK 70m for Q2 and Q3 of 2011 combined. Including the cloudburst claims relating to 2 July, weather-related claims for Q2 and Q3 to date are DKK 116m being DKK 46m higher than that assumed, corresponding to a 0.5% negative impact on the combined ratio.

Furthermore the following forecast assumptions have changed:

In Q2 2011 there were run-off profits of DKK 33m corresponding to a 0.4pp improvement of the combined ratio
The period from 13 May to 12 August saw a downturn in the financial markets. The equity market was particularly hard hit but there were also negative returns on credit products. The forecast for the investment return has therefore been reduced by DKK 220m, of which about DKK 160m is due to losses on equities
The declining interest rates from the level on 13 May 2011 corresponds to a 0.3pp deterioration of the combined ratio

For non-life insurance Topdanmark continues to assume premium growth of 1-2%. The combined ratio for 2011 will be adversely impacted by the increase in cloudburst claims (0.5pp) and the decline in interest rates (0.3pp) and benefit from the run-off profits in Q2 (0.4pp). Therefore the assumed combined ratio of around 91% for 2011 has been adjusted to 91-92% excluding run-off profits / losses in the second half of 2011.

In the Q1 2011 report it was assumed that regular premiums in life insurance would decline 0-5% in 2011 because the life insurance company lost a major pension customer at the beginning of the year. Given developments in 2011 to date Topdanmark now assumes a decline in regular premiums of 5-8%.

As a consequence of the downturn in the financial markets the shadow account forecast at the end of the year has been increased from DKK 25m to DKK 125m. The shadow account will be included in income in a subsequent period when the "insurance technical result before bonus contribution" is sufficiently high in each contribution group.

However, it is important to note that any recognition as income of the risk allowances and the amount on the shadow account will not be finally considered until the finalisation of the 2011 Annual Report. The profit forecast model is highly sensitive to fluctuations in the investment return of the life insurance companies during the remainder of the year.

It is assumed that the result of life insurance will be DKK 180-210m.

Overall profit is assumed to be DKK 950-1,050m representing a profit per share of around DKK 73.

This profit forecast model is subject to an annual 7.0% return on equities and unchanged foreign exchange rates from the level on 12 August 2011. Furthermore it is assumed that the return on interest-bearing assets hedging the discounted provisions is just sufficient to cover discounting and revaluation of the provisions while the return on the remaining interest-bearing assets is assumed to be 3.29% (risk-free interest rate plus 2.0pp).

Profit forecast 2011		Forecast for 2011		Forecast for 2011
(DKKm)	2010	13 May 2011	12 August 2011
Non-life insurance
- Technical result	626	810 –	860 780	–	830
- Investment return after transfer to technical result etc.	465	470 –	530 250	–	300
Profit on non-life insurance	1,092	1,280 –	1,390 1,030	–	1,130
Life insurance	384	280 –	310 180	–	210
Parent company etc.	31	20 –	30 50	–	60
Pre-tax profit	1,506	1,580 –	1,730 1,260	–	1,400
Taxation	(338)	(380) –	(430) (310)	–	(350)
Profit for the year	1,168	1,200 –	1,300 950	–	1,050

Share buy-back

The buy-back programme for 2011 has been reduced by DKK 200m to DKK 1,200m representing a buy-back yield of 9.8% (calculated on the basis of those buy-back prices already realised and the price of Topdanmark's shares on 12 August 2011).

To date in 2011 Topdanmark has bought back own shares of DKK 877m which leaves a balance of DKK 323m on the 2011 programme.

The number of shares is 14,825,896. Topdanmark's holding of own shares is 1,253,000 shares and therefore the number of voting shares was 13,572,896 on 12 August 2011.

Since 1998 when Topdanmark started buying back own shares, it has made decisions to cancel DKK 9.5bn of own shares representing a 64.1% write-down of the share capital with an average price of DKK 358 per cancelled share.

In the years 2000-2010 the annual average buy-back yield has been 9%.

Topdanmark does not buy back own shares in those periods where the Company would be considered an insider and during the three weeks immediately preceding the announcement of interim and annual reports. Furthermore it does not buy back own shares during the period of five banking days after the announcement of a quarterly report as this is the period in which the executives may exercise their share options or warrants. Below is a list of the periods when the share buy-back is allowable.

Share buy-back allowable

31 Aug 2011	-	24 Oct 2011
23 Nov 2011	-	13 Feb 2012
14 Mar 2012	-	30 Apr 2012
31 May 2012	-	30 Jul 2012

Share buy-back not allowable

02 Aug 2011	-	30 Aug 2011
25 Oct 2011	-	22 Nov 2011
14 Feb 2012	-	13 Mar 2012
01 May 2012	-	30 May 2012
31 Jul 2012	-	28 Aug 2012

Financial calendar

Q1-Q3 2011 Interim Report	15 Nov 2011
2011 Annual Report	06 Mar 2012
Deadline for submitting items for AGM agenda	07 Mar 2012
AGM	19 Apr 2012
Q1 2012 Interim Report	22 May 2012
2012 Half-year Report	21 Aug 2012

Accounting policies

The H1 2011 interim report has been prepared in accordance with IAS 34 on interim reports for listed companies. Furthermore, it has been prepared in accordance with additional Danish disclosure requirements on interim reports for listed financial services companies.

The DFSA has updated the Danish Accounting Order for insurance companies with effect from 2011. The changes have no material impact on the Group's and the parent company's accounting policies.

There have been no other changes in accounting policies from those adopted in the 2010 Annual Report where there is a complete description of all the accounting policies.

The H1 report has not been audited nor subjected to a review.

Profit and loss account • Group

(DKKm)	Note	Full year 2010	Q2 2010	Q2 2011	H1 2010	H1 2011
NON-LIFE INSURANCE
Gross premiums written Reinsurance ceded Change in the provisions for unearned premiums, gross Change in reinsurers' share of the provisions		8,661 (644) (39)	1,568 (62) 594	1,592 (77) 573	5,488 (391) (1,217)	5,571 (425) (1,245)
for unearned premiums		(8)	(93)	(75)	71	112
Premiums earned, net of reinsurance		7,971	2,007	2,013	3,951	4,013
Technical interest, net of reinsurance	1	58	12	22	39	4 6
Gross claims paid Reinsurance cover received Change in the provisions for claims, gross Change in reinsurers' share of the provisions for claims Claims incurred, net of reinsurance	2	(6,351) 260 (93) 107 (6,077)	(1,546) 85 38 (13) (1,435)	(1,544) 107 132 (74) (1,378)	(3,126) 127 (90) (8) (3,097)	(3,230) 195 262 (117) (2,889)
Bonuses and rebates		(74)	(15)	(15)	(31)	(24)
Acquisition costs Administrative expenses Reinsurance commission and share of profits		(748) (550) 80	(207) (107) 25	(218) (124) 20	(418) (227) 42	(429) (248) 35
Total operating expenses, net of reinsurance TECHNICAL PROFIT ON NON-LIFE INSURANCE		(1,218) 660	(288) 281	(322) 319	(603) 259	(642) 503
LIFE INSURANCE Gross premiums written	3	3,395	764	711	1,751	1,674
Reinsurance ceded		(7)	(2)	(1)	(4)	(3)
Premiums, net of reinsurance		3,388	763	710	1,747	1,672
Allocated investment return, net of reinsurance		2,233	229	10	1,073	326
Claims and benefits paid Reinsurance cover received Change in the provisions for claims and benefits		(2,866) 4 (9)	(824) 1 (10)	(1,247) 1 (0)	(1,316) 2 (3)	(2,097) 2 3
Claims and benefits paid, net of reinsurance		(2,871)	(833)	(1,247)	(1,317)	(2,092)
Change in life insurance provisions Change in reinsurers' share		(900) 3	(203) 2	431 (7)	(985) 0	535 (7)
Change in the life insurance provisions, net of reinsurance		(897)	(200)	423	(985)	528
Bonus		(369)	54	167	(63)	(47)
Change in provisions for unit-linked contracts		(968)	(32)	36	(305)	(177)
Acquisition costs Administrative expenses Reinsurance commission and share of profits		(120) (181) 0	(29) (42) 1	(27) (48) 4	(61) (91) 1	(53) (102) 3
Total operating expenses, net of reinsurance		(301)	(71)	(71)	(151)	(151)
TECHNICAL PROFIT / (LOSS) ON LIFE INSURANCE		214	(90)	29	(1)	59

Profit and loss account • Group

(DKKm)	Full year 2010	Q2 2010	Q2 2011	H1 2010	H1 2011

NON-TECHNICAL ACTIVITIES
Technical profit on non-life insurance	660	281	319	259	503
Technical profit / (loss) on life insurance	214	(90)	29	(1)	59
Income from associated companies	59	8	10	18	22
Income from investment properties	229	64	54	123	106
Interest income and dividends etc.	1,908	486	502	898	957
Revaluations	1,532	(182)	(336)	755	(25)
Interest charges	(81)	(29)	(25)	(47)	(44)
Expenses on investment business	(41)	(12)	(7)	(22)	(18)
Total investment return	3,607	336	199	1,725	998
Technical interest transferred to
non-life insurance business	(362)	(92)	(114)	(204)	(216)
Pension return tax	(344)	(50)	(16)	(202)	(68)
Investment return transferred to life insurance business	(2,233)	(229)	(10)	(1,073)	(326)
Other income	11	3	4	4	38
Other expenses	(47)	(12)	(9)	(25)	(22)
PRE-TAX PROFIT	1,506	145	401	482	966
Taxation	(338)	(51)	(99)	(120)	(240)
PROFIT FOR THE PERIOD	1,168	94	301	362	726

Profit per share (DKK)	77.2	6.1	21.8	23.4	52.0
Profit per share, diluted (DKK)	77.0	6.1	21.8	23.3	51.9

Statement of comprehensive income ● Group

Profit for the period	1,168	94	301	362	726
Revaluation of owner-occupied properties	1	0	0	1	1
Other comprehensive income	1	0	0	1	1
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	1,169	94	302	362	726

Assets • Group

(DKKm)	31 December 2010	30 June 2010	30 June 2011
INTANGIBLE ASSETS	768	740	750
Machinery and equipment	148	170	130
Owner-occupied properties	757	742	780
TOTAL TANGIBLE ASSETS	905	912	910
Investment properties	4,046	4,048	4,066
Shares in associated companies	388	357	394
Loans to associated companies	762	783	736
Total investment in associated companies	1,151	1,140	1,130
Shares	6,309	6,000	6,132
Bonds	36,833	33,244	37,910
Loans guaranteed by mortgages	11	15	10
Other loans	2	2	1
Deposits with credit institutions	1,011	4,459	2,323
Derivatives	785	1,164	814
Total other financial investment assets	44,951	44,884	47,190
TOTAL INVESTMENT ASSETS	50,147	50,073	52,387
INVESTMENT ASSETS RELATED TO
UNIT-LINKED CONTRACTS	3,264	2,879	3,315
Reinsurers' share of provisions for unearned premiums	65	144	177
Reinsurers' share of life insurance provisions	36	33	29
Reinsurers' share of the provisions for claims and benefits	667	551	552
Total reinsurers' share of provisions	768	727	757
Amounts due from policyholders	417	410	438
Amounts due from insurance companies	184	142	111
Amounts due from associated companies	18	7	2
Other debtors	101	119	132
TOTAL DEBTORS	1,487	1,405	1,440
Current tax assets	58	46	0
Deferred tax assets	19	68	7
Liquid funds	194	199	181
Other	49	71	69
TOTAL OTHER ASSETS	320	383	257
Accrued interest and rent	501	388	478
Other prepayments and accrued income	150	183	187
TOTAL PREPAYMENTS AND ACCRUED INCOME	651	572	666
TOTAL ASSETS	57,542	56,964	59,724

Shareholders' equity and liabilities • Group

		31 December	30 June	30 June
(DKKm)	Note	2010	2010	2011

Share capital		171	170	148
Revaluation reserve		16	16	17
Security fund		1,104	1,104	1,104
Other reserves		20	19	22
Total reserves		1,124	1,123	1,126
Profit carried forward		3,241	2,949	3,310
TOTAL SHAREHOLDERS' EQUITY		4,553	4,258	4,600
SUBORDINATED LOAN CAPITAL		752	751	1,151
Provisions for unearned premiums		2,646	3,819	3,892
Guaranteed pension benefits		16,601	17,250	16,339
Bonus potential on future premiums		5,831	5,858	5,183
Bonus potential on paid-up benefits		4,260	3,668	4,635
Total life insurance provisions		26,692	26,776	26,157
Provisions for claims and benefits		12,459	12,449	12,233
Collective bonus potential		554	248	601
Provisions for bonuses and rebates		128	111	133
Provisions for unit-linked contracts		3,826	3,142	3,816
TOTAL PROVISIONS FOR INSURANCE
AND INVESTMENT CONTRACTS		46,305	46,544	46,831
Pensions and similar commitments		42	46	40
Deferred tax liabilities		94	91	112
Deferred tax on security funds		348	348	348
TOTAL LIABILITIES PROVIDED		485	485	500
DEPOSITS RECEIVED FROM REINSURERS		90	72	94
Creditors arising out of direct insurance operations		69	81	47
Creditors arising out of reinsurance operations		59	23	66
Bond loans		71	70	72
Amounts due to credit institutions		3,840	3,173	5,340
Amounts due to associated companies		11	7	6
Current tax liabilities		5	3	90
Derivatives		167	522	50
Other creditors		1,052	913	813
TOTAL CREDITORS		5,274	4,792	6,485
ACCRUALS AND DEFERRED INCOME		85	63	63
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		57,542	56,964	59,724

Contingent liabilities 4

Cash flow statement • Group

Full year	H1	H1













































1,205	4,658	2,504

The majority of the Group's companies are subject to the relevant legislation on insurance business. Consequently, there are certain restrictions on lending and placement of money.

Movements in shareholders' equity • Group

(DKKm)

	Share capital	Revalu- ation reserve	Security fund	Other reserves	Profit carried forward	Total
2010
Shareholders' equity prior year	169	15	1,104	16	2,812	4,117
Profit for the year Other comprehensive income		1	0	4 0	1,164 0	1,168 1
Total comprehensive income for the year Share buy-back Sale of employee shares Issue of share options Exercise of share options / warrants Taxation Other transactions	2 2	1	0	4	1,164 (892) 46 16 92 3 (735)	1,169 (892) 46 16 94 3 (733)
Shareholders' equity at 31 December 2010	171	16	1,104	20	3,241	4,553
H1 2010
Shareholders' equity prior year	169	15	1,104	16	2,813	4,117
Profit for the period Other comprehensive income		1	0	3 0	359 0	362 1
Total comprehensive income for the period Share buy-back Sale of employee shares Issue of share options Exercise of share options / warrants Taxation	1	1	0	3	359 (333) 24 16 69 2	362 (333) 24 16 70 2
Other transactions	1				(223)	(221)
Shareholders' equity at 30 June 2010 H1 2011	170	16	1,104	19	2,949	4,258
Shareholders' equity prior year	171	16	1,104	20	3,241	4,553
Profit for the period Other comprehensive income Total comprehensive income for the period		1 1	0 0	1 0 1	724 0 724	726 1 726
Cancellation of own shares Share buy-back Sale of employee shares Issue of share options Exercise of share options / warrants Taxation	(24) 1				24 (804) 24 7 91 2	0 (804) 24 7 93 2
Other transactions	(23)				(656)	(679)
Shareholders' equity at 30 June 2011	148	17	1,104	22	3,310	4,600

Segment information • Group

Profit and loss account

		SME and	Eli-				Eli
	Per-	Indus-	min-			Parent	min-
(DKKm)	sonal	trial	ated	Non-life	Life	etc.	ated	Group
H1 2010
Non-life insurance
Gross premiums earned	2,339	1,912	(11)	4,240				4,240
Technical interest*	19	20	(0)	39				39
Claims incurred	(1,759)	(1,475)	11	(3,223)			7	(3,216)
Expenses	(344)	(315)	1	(657)			12	(645)
Net reinsurance	(37)	(122)	(0)	(159)				(159)
Technical profit on non-life insurance	218	20	1	240			19	259
Life insurance
Gross premiums written					1,751			1,751
Allocated investment return					1,073			1,073
Benefits and change in provisions					(2,672)			(2,672)
Expenses					(154)		3	(152)
Net reinsurance					(1)			(1)
Technical profit / (loss) on life insurance					(3)		3	(1)
Total investment return				351	1,353	14	6	1,725
Pension return tax					(202)			(202)
Transferred to technical result				(204)	(1,073)			(1,277)
Investment return				147	78	14	6	246
Other items				10	20	(23)	(28)	(21)
Pre-tax profit / (loss)				397	94	(8)	0	482
Taxation								(120)
Profit for the period								362
H1 2011
Non-life insurance
Gross premiums earned	2,374	1,938	(11)	4,302				4,302
Technical interest*	22	24	0	46				46
Claims incurred	(1,731)	(1,255)	11	(2,975)			7	(2,968)
Expenses	(375)	(316)	1	(690)			13	(678)
Net reinsurance	(41)	(157)	(0)	(199)				(199)
Technical profit on non-life insurance	249	234	1	483			20	503
Life insurance
Gross premiums written					1,674			1,674
Allocated investment return					326			326
Benefits and change in provisions					(1,782)			(1,782)
Expenses					(157)		3	(155)
Net reinsurance					(4)			(4)
Technical profit on life insurance					56		3	59
Total investment return				514	454	24	7	998
Pension return tax					(68)			(68)
Transferred to technical result				(216)	(326)			(542)
Investment return				297	60	24	7	388
Other items				42	22	(19)	(29)	16
Pre-tax profit				823	138	5	0	966
Taxation								(240)
Profit for the period								726

* After discounting DKK 171m (H1 2010: DKK 165m)

Notes to the accounts • Group

(DKKm)	Full year 2010	H1 2010	H1 2011
Note 1. Technical interest, net of reinsurance – Non-life insurance
Calculated interest	362	204	216
Discounting of technical provisions and reinsurers' share	(304)	(165)	(171)
Technical interest, net of reinsurance	58	39	46

Note 2. Claims incurred, net of reinsurance – Non-life insurance
Run-off profit:
Gross business	258	145	118
Reinsurance ceded	(54)	(45)	(63)
Run-off profit, net of reinsurance	204	100	55

Note 3. Gross premiums written – Life insurance
Individual policies	393	156	153
Policies which are part of a tenure	1,766	910	803
Group life	413	327	328
Regular premiums	2,572	1,393	1,284
Individual policies	98	42	54
Policies which are part of a tenure	724	316	336
Single premiums	822	358	390
Gross premiums	3,395	1,751	1,674

	31 December	30 June	30 June
Note 4. Contingent liabilities	2010	2010	2011
Derivatives:
Purchased forward contracts	19,860	25,313	22,168
Sold forward contracts	16,681	24,204	19,989
Adjustments to VAT liabilities	47	45	33
Other liabilities	10	14	8

The Group participates in technical insurance collaboration where it is jointly liable for the insurance liabilities.

The companies are jointly liable for A-tax and payroll tax etc. and VAT chargeable to the jointly registered companies.

Capital commitments to loan funds and private equity funds 250 274 229

Profit and loss account • Parent company

	Full year	Q2	Q2	H1	H1
(DKKm)	2010	2010	2011	2010	2011

Income from affiliated companies	1,184	103	313	382	748
Interest income and dividends etc.	24	0	0	1	0
Revaluations	(1)	(0)	0	(0)	(0)
Interest charges	(19)	(5)	(6)	(10)	(12)
Total investment return	1,189	99	306	373	736
Other expenses	(32)	(8)	(8)	(17)	(17)
PRE-TAX PROFIT	1,157	91	298	355	719
Taxation	11	3	4	7	7
PROFIT FOR THE PERIOD	1,168	94	301	362	726

Statement of comprehensive income ● Parent company

Profit for the period	1,168	94	301	362	726
Other comprehensive income from affiliated companies	1	0	0	1	1
Other comprehensive income	1	0	0	1	1
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	1,169	94	302	362	726

Balance sheet • Parent company

(DKKm)	31 December 2010	30 June 2010	30 June 2011

Assets
Machinery and equipment	4	5	4
TOTAL TANGIBLE ASSETS	4	5	4
Shares in affiliated companies	5,567	5,198	6,301
Total investment in affiliated companies	5,567	5,198	6,301
Bonds	2	2	1
Total other financial investment assets	2	2	1
TOTAL INVESTMENT ASSETS	5,568	5,200	6,302
Amounts due from affiliated companies	77	191	108
TOTAL DEBTORS	77	192	108
Current tax assets	58	46	0
Deferred tax assets	1	1	0
Liquid funds	3	3	4
TOTAL OTHER ASSETS	62	49	4
Accrued interest and rent	0	1	0
TOTAL PREPAYMENTS AND ACCRUED INCOME	0	1	0
TOTAL ASSETS	5,712	5,447	6,418
Shareholders' equity and liabilities
Share capital	171	170	148
Other reserves	1,845	1,478	2,579
Total reserves	1,845	1,478	2,579
Profit carried forward	2,884	2,957	2,221
TOTAL SHAREHOLDERS' EQUITY	4,900	4,606	4,948
SUBORDINATED LOAN CAPITAL	404	404	405
Bond loans	71	70	72
Amounts due to affiliated companies	327	328	896
Current tax liabilities	0	0	87
Other creditors	10	39	11
TOTAL CREDITORS	407	437	1,065
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	5,712	5,447	6,418

Disclaimer

This H1 report includes statements relating to the future. Such statements are uncertain and involve both general and specific risks.

Many factors may cause a significant deviation from the forecasts and assumptions set out in the H1 report. Such factors could be, for example, cyclical movements, changes in the financial markets, the financial effect of non-anticipated events like acts of terror or exceptional weather conditions, changes in Danish and EU rules, competitive factors in the insurance industry and the trend in reinsurance market. Also see www.topdanmark.com → Risk management.

The above description of risk factors is not exhaustive. Investors and others, who may base decisions relating to Topdanmark on statements relating to the future, should make their own careful considerations on these and other factors of uncertainty.

Topdanmark's statements relating to the future are solely based on information known at the time of the preparation of this H1 report.

This publication is a translation. In case of any divergence, the original Danish text shall prevail.

Management's statement

The Board of Directors and the Board of Management have today considered and adopted the H1 interim report for 2011 for Topdanmark A/S.

The H1 report has been prepared in accordance with IAS 34 on interim reports and the additional Danish disclosure requirements on interim reports for listed financial services companies.

The accounts of the parent company are in accordance with the order issued by the DFSA on financial reports for insurance companies and lateral pension funds.

We believe that the half-year accounts give a true and fair view of the Group's and the Company's assets and liabilities, financial position at 30 June 2011 as well as the result of the Group's and the Parent company's activities and the Group's cash flows for the period 1 January to 30 June 2011. Furthermore we believe that the management's review includes a fair view of the development in the Group's and Parent company's activities and financial matters as well as a description of the most significant risks and factors of uncertainty which can impact the Group and the Parent company.

Ballerup, 23 August 2011

Board of Management

Christian Sagild (CEO)	Kim Bruhn-Petersen	Lars Thykier
Board of Directors
Michael Pram Rasmussen (Chairman)	Anders Knutsen (Deputy Chairman)	Charlotte Hougaard
Jens Maaløe	Annette Sadolin	Desirée Schultz
Søren Thorup Sørensen	Knud J. Vest	Trine Zappe

AI assistant

Topdanmark — Interim / Quarterly Report 2011

3388_ir_2011-11-29_faff8fb3-2152-4704-a641-de0ed4814876.pdf

23 August 2011 Announcement No. 18/2011

Highlights

H1 2011

Q2 2011

Profit forecast model for 2011

Share buy-back

Contents

Management's review

Accounts for H1 2011 • Group

Accounts for H1 2011 • Parent company

Financial highlights

Results for H1 2011

Results for Q2 2011

Non-life insurance

Developments in Q2

Segment reporting

Personal

SME and Industrial

Life insurance

Developments in Q2 2011

Investment activities

Topdanmark Group excluding the life insurance group

CDOs – Returns and portfolios

Model prices

Taxation

Solvency II

Profit forecast model for 2011

Share buy-back

Share buy-back allowable

Share buy-back not allowable

Financial calendar

Accounting policies

Profit and loss account • Group

Profit and loss account • Group

Statement of comprehensive income ● Group

Assets • Group

Shareholders' equity and liabilities • Group

Cash flow statement • Group

Movements in shareholders' equity • Group

Segment information • Group

Profit and loss account

Notes to the accounts • Group

Profit and loss account • Parent company

Statement of comprehensive income ● Parent company

Balance sheet • Parent company

Disclaimer

Management's statement

Board of Management

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Topdanmark Interim / Quarterly Report 2011