Tryg — Earnings Release 2012

Aug 14, 2012

Tryg A/S / Half-yearly Results

14.08.2012 17:01

Dissemination of a UK Regulatory Announcement, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement.

Tryg's Supervisory Board has today approved the Q2 and H1 report 2012.

The second quarter of 2012 had the lowest combined ratio for five years as a result of profitability measures, a low level of large claims and a gain on reinsurance. The improvement occurred despite a lower interest rate level with a significant negative impact on the combined ratio.

Highlights of Q2 2012

• Pre-tax result of DKK 708m (DKK 487m). Technical result of DKK 835m (DKK 507m).
• Improvement in the combined ratio of 6.6 percentage points to 84.7 (91.3).
• The lower interest rate level impacted the combined ratio negatively by 1.4 percentage points and led to the increase of the Norwegian pension provision by DKK 143m.
• The high run-off rate of DKK 349m (DKK 133m) was affected by income from reinsurance agreements.
• Premium growth of 0.3% in local currency, mainly as a result of implemented price increases in Denmark and Norway and the deliberate reduction of growth in Sweden and Finland.
• Lower expense ratio of 16.8 (17.0), based especially on a reduction of 48 employees in the quarter.
• Positive return of DKK 41m in the match portfolio - significantly affected by the changed discount curve and interest rate hedging of Norwegian interest rate swaps. Return of 0.8% in the free investment portfolio.
• The value of owner-occupied properties written down in Denmark and written up in Norway.
• Return on equity after tax of 21.5%.

Highlights of the first half of 2012

• Pre-tax result of DKK 1,429m (DKK 848m). Technical result of DKK 1,201m (DKK 775m).
• Improvement in the combined ratio of 4.4 percentage points to 89.3 (93.7).
• Gross claims impacted by the strengthening of provisions for cloudburst in July 2011 of approximately DKK 300m. Covered by reinsurance and thus negligible effect on earnings.
• The lower interest rate level negatively impacted the combined ratio by 1.5 percentage points and led to the increase of the Norwegian pension provision by DKK 171m.
• Premium growth of 0.7% in local currency, mainly as a result of price increases in Denmark and Norway and the deliberate reduction of growth in Sweden and Finland.
• Positive return of DKK 48m in the match portfolio - significantly affected by the changed discount curve and interest rate hedging of Norwegian interest rate swaps. The free investment portfolio generated a return of 5.4%.
• The value of owner-occupied properties written down in Denmark and written up in Norway.
• Return on equity after tax of 23.0%.

Download the entire report on http://tryg.com

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News Source: NASDAQ OMX

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14.08.2012 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de

Language: English
Company: Tryg A/S
Denmark
Phone:
Fax:
E-mail:
Internet:
ISIN: DK0060013274
Category Code: IR
LSE Ticker: OGBV
Sequence Number: 1168
Time of Receipt: Aug 14, 2012 17:01:01

End of Announcement
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