Tryg A/S – Annual report 2021

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Tryg’s Supervisory Board has today approved the annual report 2021.

Premium growth of 4.9% (7.0%) was reported for the FY 2021 driven primarily by the Private and Commercial segments. Growth excluding bonus and premiums rebates was 6.4%. Technical result of DKK 3,709m (DKK 3,495m) impacted positively by the underlying claims development, a DKK 333m Alka synergies and lower than normal large and weather claims. Investment income of DKK 1,008m primarily impacted by a positive development in the financial markets, driven mainly by equities and properties returns. Overall pre-tax profit was DKK 4,093m (DKK 3,541m). Quarterly dividend of 1.07 per share, bringing the total dividend for the full year to 4.28 per share, generally supporting TryghedsGruppen’s member bonus. Solvency ratio of 188.

Financial highlights 2021
• Premium growth of 4.9% (7.0%) in local currencies
• Technical result of DKK 3,709m (DKK 3,495m)
• Combined ratio of 84.5 (84.5)
• Expense ratio of 14.1 (14.1)
• Investment return on Tryg’s stand-alone portfolio of DKK 837m (DKK 311m)
• Income from RSA Scandinavia of DKK 1,206m (N/A)
• Total investment return of DKK 1,008m (DKK 311m)
• RSA related synergies of DKK 63m
• Profit before tax of DKK 4,093m (DKK 3,541m)
• Full-year dividend of DKK 4.28 per share
• Solvency ratio of 188

Financial highlights Q4 2021
• Premium growth of 2.6% (7.4%) in local currencies
• Technical result of DKK 826m (DKK 780m), the highest Q4 technical result to date
• Combined ratio of 86.2 (86.3)
• Underlying claims ratio (Private and Group) improved by 0.0 and 0.8 percentage points
• Expense ratio of 14.0 (14.0)
• Investment return on Tryg’s stand-alone portfolio of DKK 373m (DKK 513m)
• Income from RSA Scandinavia of DKK 568m (N/A)
• Total investment return of DKK 941m (DKK 513m)
• RSA related synergies of DKK 35m
• Profit before tax of DKK 1,596m (DKK 1,223m)
• Q4 dividend of DKK 1.07 per share

Customer highlights Q4 2021
• Customer satisfaction score of 85 (84)
• In Q4, awareness of TryghedsGruppen's member bonus among non-customers was 44% and therefore unchanged compared with the same period prior year

Statement by Group CEO Morten Hübbe:
Tryg’s core business continued to develop positively in 2021 with a premium growth of 4.9%, the growth adjusting for bonus and premiums rebates was 6.4%. The top-line development was driven primarily by the Private and Commercial businesses. In Corporate, price initiatives and structural changes are being implemented to improve the profitability level.

Tryg reported a technical result of DKK 3,709m positively impacted by an improved underlying business and Alka synergies of DK 333m exceeding our target of DKK 300m. Additionally, Tryg reported an increased customer satisfaction score from 84 at the end of 2020 to 85 in 2021. The increase in customer satisfaction is supported by a net inflow of customers and improvement of the retention rate.

The last quarter of the year saw a growth of 2.6% or 5.1% adjusting for bonus and premiums rebates. Tryg reported the highest ever technical Q4 result at DKK 826m driven primarily by the overall growth, a continuous improvement in the underlying claims ratio and delivery of the Alka synergies.

2021 will go down in Tryg history as a remarkable and very eventful year. In March, Tryg conducted a successful DKK 37bn rights issue to acquire Trygg-Hansa, Codan Norway and a 50/50 economic co-ownership of Codan Denmark. The rights issue was the largest ever in Denmark and one of the largest in Europe in more than a decade. The acquisition closed on 1 June 2021 and shortly thereafter Tryg together with its Canadian partner Intact announced the sale of Codan Denmark after an efficient process concluded with a highly satisfactory price. Trygg-Hansa and Codan Norway have produced a very satisfactory full-year technical result of DKK 2,182m including a DKK 149m single large weather event. The results also include synergies for DKK 63m which is in line with earlier communication, and the acquisition will produce a total of DKK 900m of synergies in 2024

On November 16, Tryg hosted a Capital Markets Day in London to present new and ambitious financial targets. Tryg targets the highest ever technical result of DKK 7.0-7.4bn in 2024 to be achieved through continued growth in the existing business, synergies from the RSA transaction and continuing development for new products and services.

Conference call
Tryg hosts a conference call today at 10:00 CET. CEO Morten Hübbe, CFO Barbara Plucnar Jensen and CCO Johan Kirstein Brammer 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 78 15 01 07
UK participants: +44 (0) 333 300 9032
US participants: +1 646 722 4956

The annual report material can be downloaded on https://tryg.com/en/downloads-2021 shortly after the time of release.

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