Tryg — Earnings Release 2016

Oct 11, 2016

Tryg’s Supervisory Board has today approved the interim report for Q1-Q3 2016.

Solvency ratio of 217. Pre-tax profit improved significantly, driven primarily
by a large swing in the investment return.

Financial highlights Q3 2016

-- Solvency ratio of 217 including the Skandia child insurance portfolio
consolidated from 1 September
-- Profit before tax of DKK 923m (DKK 186m) and after tax DKK 732m (DKK 110m)
-- Improved technical result of DKK 744m (DKK 647m), however, broadly in line
with previous year when adjusted for one-off effects in Q3 2015
-- Combined ratio of 83.7 (86.1) – same level as Q3 2015 adjusted for one-off
effects
-- Expense ratio of 14.5 (16.3
) broadly in line with Q3 2015 adjusted for one-off effects
-- Premium growth of 0.0% (0.6%) in local currencies with increase in Denmark
and drop in Norway
-- Investment return of DKK 191m (DKK -441m) boosted by a very strong return
on the free portfolio, driven primarily by equity markets

Financial highlights Q1-Q3 2016

-- Profit before tax of DKK 2,420m (DKK 1,565m) and after tax DKK 1,911
(DKK 1,215m)
-- Technical result of DKK 2,076m (DKK 1,901m)
-- Combined ratio of 84.4 (86.3) due to lower level of weather claims and
large claims, slightly lower run-offs but also a higher underlying claims
level
-- Lower expense ratio of 14.9 (15.7
) impacted by one-off effects in 2015
-- Premiums declined by 0.4% (-0.5%) in local currencies
-- Investment return of DKK 389m (DKK -264m)

Customer highlights Q2 2016

-- NPS of 24 (20)
-- Retention rate of 88.0 (88.1)
-- Share of customers with three or more products of 57.0% (56.7%)

Statement by Group CEO Morten Hübbe:

We delivered a profit before tax of DKK 923m for Q3 2016, which was
significantly higher compared to the prior-year period. When adjusted for
one-off costs in Q3 2015, the technical result is virtually unchanged. As
expected, the underlying claims level remained slightly high, but minor price
adjustments and claims handling initiatives will contribute to addressing this
in the course of 2017. New initiatives are being planned in all areas, which –
together with the initiatives already implemented – will ensure that Tryg
achieves an expense ratio at or below 14 in 2017.

An investment return of DKK 191m was realised, which is markedly higher than
the result for the prior-year period.

On 1 September 2016, Skandia’s child insurance portfolio was integrated with
Tryg’s business, which is very positive, both because it is a profitable
business area, but also because it is a product area with a lot of potential
across the Nordic countries.

A further 95,000 customers were converted to our new insurance products,
bringing the total number of customers that have been converted to our new and
updated products to 325,000.

The positive development in premium income for Private Denmark continued in Q3
2016, with growth of 2.2% being achieved, which is very satisfactory. The
payment of the member bonus from TryghedsGruppen is also likely to support the
Danish business in the longer term.

Conference call
Tryg hosts a conference call on the day of the release at 10:00 CET. CEO Morten
Hübbe and CFO Christian Baltzer will present the results in brief followed by a
Q&A session. The conference call will be held in English. An on demand version
will be available shortly after the conference call has ended.

Conference call details:

Danish participants: +45 35 44 55 83
UK participants: +44 (0) 203 194 0544
US participants: +1 855 269 2604

All Q3 material can be downloaded on tryg.com/en/Investor/Downloads shortly
after the time of release.