Tryg — Earnings Release 2016

Jul 12, 2016

Tryg’s Supervisory Board has today approved the interim report for Q2 and H1
2016.

Semi-annual dividend of DKK 2.60 and solvency ratio of 206. Pre-tax profit was
31% higher than in Q2 2015, driven by a lower technical result and a higher
investment return.

Financial highlights Q2 2016

-- Semi-annual dividend of DKK 2.60 (DKK 2.50) and solvency ratio of 206 (193
including Skandia)
-- Profit before tax of DKK 934m (DKK 714m) and after tax DKK 734m (DKK 580m)
-- Lower technical result of DKK 770m (DKK 825m) significantly impacted by
currency movements
-- Combined ratio of 82.6 (82.2) due to higher level of weather claims and
higher underlying claims level
-- Lower expense ratio of 15.0 (15.2
) as a result of the efficiency programme
-- Premiums fell by 0.6% (-1.4%) in local currencies with increase in Denmark
and drop in Norway
-- Investment return of DKK 181m (DKK -84m) boosted by very strong
fixed-income returns

Financial highlights H1 2016

-- Profit before tax of DKK 1,497m (DKK 1,379m) and after tax DKK 1,179m
(DKK 1,105m)
-- Technical result of DKK 1,332m (DKK 1,254m)
-- Combined ratio of 84.9 (86.4) due to lower level of weather claims and
large claims and higher underlying claims level
-- Lower expense ratio of 15.1 (15.4
) as a result of the efficiency programme
-- Premiums fell by 0.5% (-0.9%) in local currencies
-- Investment return of DKK 198m (DKK 177m)

Customer highlights Q2 2016

-- NPS of 23 (20)
-- Retention rate of 88.1 (88.0)
-- Share of customers with three or more products of 56.9% (56.6%)
-- For the fourth year running, Moderna – Tryg’s Swedish branch – was named
Best Insurance Company by the brokers within commercial and corporate
segments
-- On 1 June 2016, TryghedsGruppen paid its member bonus to Tryg’s Danish
customers, 8% of the annual premiums paid to Tryg in 2015

Statement by Group CEO Morten Hübbe:
In Q2, we delivered a profit before tax of DKK 934 million, which was 31%
higher than for the prior-year period. The technical result was close to being
on a par with last year’s level, when adjusted for the weak Norwegian krone. As
expected, a slight increase was seen in the underlying claims level, which Tryg
is addressing through minor price adjustments and claims initiatives. The
effect of these initiatives will, however, not be apparent until the end of
2016, with full effect in 2017.

The investment return, on the other hand, was somewhat higher than in the
prior-year period.

Through dedicated efforts, the Net Promoter Score (NPS) has been improved to a
record high of 23, which is extremely positive. Also, a 1.7% increase in
premium income was noted in the Danish part of Tryg, which was also very
satisfactory.

In Q2, approximately 200,000 customers were converted to the newest insurance
products, and the process continues in 2016.

On 1 June, TryghedsGruppen paid out the first member bonus to our Danish
customers. Awareness of the member bonus scheme among Tryg’s customers is up
from 11% at the beginning of 2016 to 75% after 1 June, and Tryg expects this to
have a positive effect on the retention rate in Denmark in the long term. At
the end of June, general awareness of the member bonus scheme in Denmark stood
at 32%, which is expected to have a positive long-term effect on the influx of
new customers.

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.

Conference call details:

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

All Q2 material can be downloaded on tryg.com/en/Investor/Downloads shortly
after the time of release.