Topdanmark

Report Publication Announcement • Jul 18, 2019

Topdanmark Half-Year Report for 2019

Topdanmark Half-Year Report for 2019

TOPDANMARK HALF-YEAR REPORT FOR 2019

18 July 2019, Announcement No. 10/2019

*Key features*

H1 2019

• Post-tax profit of DKK 831m (H1 2018: DKK 613m)
• EPS was DKK 9.5 (H1 2018: DKK 7.1)
• Combined ratio: 80.7 (H1 2018: 85.5)
• Combined ratio excluding run-off: 86.2 (H1 2018: 88.5)
• Premiums increased by 2.6% in both non-life insurance and in life insurance
• Profit on life insurance was DKK 219m (H1 2018: DKK 106m)

• After return on non-life insurance provisions, the investment return was DKK 4m (loss)

  (H1 2018: DKK 41m)
  - 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.

Q2 2019

• Post-tax profit of DKK 391m (Q2 2018: 345m)
• EPS was DKK 4.5 (Q2 2018: 4.0)
• Combined ratio: 81.4 (Q2 2018: 85.9)
• Combined ratio excluding run-off profits: 85.1(Q2 2018: 89.0)
• Premiums increased 2.5% in non-life insurance and decreased 8.2% in life insurance
• Profit on life insurance was DKK 109m (Q2 2018: DKK 62m)
• After return on non-life insurance provisions, the investment return was DKK 21m (loss) (Q2 2018: DKK 60m).

Profit forecast model for 2019

• The assumed combined ratio for 2019 improved from 86-87 to 85-86, excl. run-off in H2 2019
• The assumed premium growth for non-life insurance continues to be higher than the growth of 1.7% in 2018
• The post-tax profit forecast model for 2019 is unchanged DKK 1,250-1,350m, excl. run-off in H2 2019.

Other events

• For the third consecutive year, Topdanmark has been awarded “The Insurance Company of the Year” prize in Denmark. The prize was awarded by FinansWatch together with EY
• Furthermore, Topdanmark Livsforsikring was awarded the best life insurance company in the category Growth. This prize was also given by FinansWatch and EY.

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 14:00 (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

• H1 2019 report