Tryg — Earnings Release 2017

Jan 23, 2018

Tryg’s Supervisory Board has today approved the annual report 2017. The
Supervisory Board find it very satisfactory that all the financial targets for
2017 have been achieved.

Pre-tax 2017 result of DKK 3,239m. Premiums growth of 1.7% in local currency,
technical result of DKK 2,789m and investment income of DKK 527m. Proposed
quarterly dividend of DKK 1.60 per share bringing the FY dividend to DKK 6.40
per share that supports TryghedsGruppen’s 8% member bonus. Extraordinary
dividend of DKK 1bn corresponding to DKK 3.31 per share to be approved by the
AGM. Solvency ratio of 281 or 196 when adjusted for the capital raised for the
acquisition of Alka. As previous communicated, Tryg expects a solvency ratio of
approximately 170 when the Alka acquisition is finalised.

Financial highlights 2017 (numbers for 2016 in brackets)

-- Profit before tax of DKK 3,239m (DKK 3,070m adjusted for one-off)
-- Technical result of DKK 2,789m (DKK 2,640m adjusted for one-off)
-- Combined ratio of 84.4 (85.3 adjusted for one-off)
-- Underlying claims ratio improved in both Private and for the Group
-- Expense ratio of 14.0 (14.8 adjusted for one-off)
-- Premium growth of 1.7% (0.1%) in local currencies
-- Investment return of DKK 527m (DKK 487m adjusted for one-off)
-- Return on equity of 28.8% (26.2%) after tax
-- FY dividend of DKK 6.40 per share and extraordinary dividend of DKK 3.31
per share

Financial highlights Q4 2017 (numbers for 2016 in brackets)

-- Profit before tax of DKK 685m (DKK 650m adjusted for one-off)
-- Technical result of DKK 622m (DKK 564m adjusted for one-off)
-- Combined ratio of 86.0 (87.6 adjusted for one-off)
-- Underlying claims ratio improved in both Private and for the Group
-- Expense ratio of 13.7 (14.4 adjusted for one-off)
-- Premium growth of 1.9% (1.7%) in local currencies
-- Investment return of DKK 86m (DKK 98m adjusted for one-off)
-- Q4 dividend of DKK 1.60 per share

Customer highlights 2017

-- NPS of 22 (22)
-- Retention rate of 88.1 (88.0)
-- Share of customers with three or more products of 60.7% (57.2%)

Statement by Group CEO Morten Hübbe:

We are pleased to present a technical result, which increases by 6% compared to
the 2016 adjusted level and to have met our ambitious 14 expense ratio target
which is probably one of the lowest levels in the world compared to similar
business models. We continue to see a good premium growth for the Group
primarily driven by the Danish Private business. We are also pleased that for
the first time in more than ten years, we see a positive customer development
for Private and Commercial in all Nordic countries.

Furthermore, we continue to focus on digitalisation and developing new,
innovative insurance solutions, which should improve our customers’
peace-of-mind, strengthen our core business and create new sources of income.
At the same time, we have implemented a number of initiatives to improve
customer experience. Amongst other things, we have introduced online meetings,
and automated several claims processes.

In December 2017, we announced the biggest transaction of the last twenty years
in the Danish non-life market, acquiring Alka. We look forward to welcoming
Alka’s 365,000 customers and an even broader cooperation with the union.

Finally, it is pleasing that for the second year running, TryghedsGruppen has
paid DKK 700m in bonus to approximately 850,000 of our Danish customers and a
bonus should be expected for 2018 as well.

Conference call

Tryg hosts a conference call today at 10:00 CET. CEO Morten Hübbe and CFO
Christian Baltzer will present the results in brief followed by Q&As.

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

The annual report material can be downloaded on tryg.com/dk/Investor/Downloads
shortly after the time of release.