Annual results 2010

Webcast presentation

10 February 2011

2

Events in 2010

2010• Premium income of DKK 19.5bn and pre-tax income of DKK 941m• Solid growth, tight cost control and improving underlying performance• High claims expenses - including one-off events of DKK 1.4bn above a normal year• Strong investment return supported by higher equity markets.

Q4 2010• Best Q in 2010 – pre-tax result of DKK 512m • Premium initiatives contributed DKK 275m i.e ~5% of premiums.• Underlying claims ratio improved due to premium and claim prevention initiatives.

*Q3 2010 before adjustment for change of ownership

Combined ratio

60.0

70.0

80.0

90.0

100.0

110.0

120.0

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

%

Premium growthIn local currency and excl. Moderna impact

2.0

3.0

4.0

5.0

6.0

Q108 Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310*

Q410

%

3

Claims ratio

50

60

70

80

90

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Key performance indicators

Gross premiumDKKm

3,000

3,500

4,000

4,500

5,000

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Expense ratio

15.2 14.6

17.815.5

17.7

13.514.7 14.1 14.5

13.3 14.3

3.02.9

15.5

1.6 2.01.4

1.33.0

2.4

3.3 2.81.8

3.1

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

17.1 17.2 16.0 19.1 17.3 17.7 15.9 18.0 17.2 17.3 16.3 17.2

Denmark & Norway Finland & Sweden

Including extraordinary winter impact

Data before 2009 is not corrected for the sale of Marine Hull business.

Including extraordinary winter impact

Combined ratio

50

60

70

80

90

100

110

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

4

One-off and extraordinary events 2010

One-off and extraordinary events (DKKm)

0

500

1,000

1,500

2,000

2,500

Large claimsWinter Q4Ruling workers' compensationCloudburstWinter Q1

ExtraordinaryeventsDKK 1.4bn.

One-offevents

DKK 2.2bn.

5

Performance in 2010

91.8 90.891.3

1.05.6

70

80

90

100

110

2008 2009 2010

87.4

97.8 97.1

5.91.5

5.8

7.1

0.92.5

80

90

100

110

120

2008 2009 2010

Private Nordic - CR Commercial Nordic - CR Corporate Nordic - CR

• 8.3% premium growth – price driven (5.8 excl. Moderna effect )

• DK hit by heavy cloudburst of gross DKK 200m and extraordinary winter of DKK 450m.

• NO hit by extraordinary winter of DKK 260m, but improvement in underlying combined ratio

• Change of ownership insurancecalled for extra reserves.

• 17% premium growth in FI andcombined ratio reduced by 5%

• Premium hikes will help profitability going forward.

• 9.6% premium growth (3.0 excl. portfolio shift)

• Workers’ comp. hit by high court ruling in Q3.

• Increased use of workers’comp.

• Premium hikes of 10-15% +claim prevention actions in several products - to bring profitability to target levels.

• 5.9% decline in premiums (1% decline excl. portfolio shift)

• Workers’ comp. hit by high court ruling in Q3.

• Increased use of workers’ comp.

• Competition in DK and especially workers’ comp. affected volume.

• Prudent underwriting and cost control – to sustain profitability.

Weather impact

Weather impact

Workers’ comp. ruling

92.8 96.4

111.6

101.2 Large claims

93.2

81.1 83.587.6

2.42.7

70

80

90

100

2008 2009 2010

Weather impact

Workers comp. ruling92.7

6

77.9

81.6

81.3

71.3

65

70

75

80

85

90

95

Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Private Nordic Commercial Nordic

Premium increases and tighter risk management improve underlying performance

Underlying development adjusted for extraordinary winter claims.

7

Average prices - Private cars (Index 2005 =100)

80

90

100

110

120

Q1 05

Q2 05

Q3 05

Q4 05

Q1 06

Q2 06

Q3 06

Q4 06

Q1 07

Q2 07

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Premium increases visible in Private Nordic

Average prices - Private houses(Index 2005 = 100)

90

100

110

120

130

140

Q1 05

Q2 05

Q3 05

Q4 05

Q1 06

Q2 06

Q3 06

Q4 06

Q1 07

Q2 07

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

• Private house in Denmark increased by 11.9% and Norway by 10% y-o-y 2010• Average price development within private cars in Denmark turned positive by 2.4% y-o-y• Private motor in Norway continued upwards with 5.2% y-o-y

8

50

60

70

80

90

100

110

Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10

Improved development in claims ratio – House insurance and Finland

70

75

80

85

90

95

100

Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10

70

80

90

100

110

120

130

140

150

160

Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10

House DK*

Finland

House NO*

*) Excluding winter and cloudburst effect

9

Major claims initiatives

SurveyingSurveying

Home conditionreport

Home conditionreport

PruningPruning

Craftsman controllingCraftsman controllingNew contents

coverage

New contentscoverage

DocumentationDocumentation

Large claimsproces

Large claimsproces

Windscreen car claimsWindscreen car claims

10

Managing cloudburst risk

• Cloudburst is basicly a local phenomenon and often coincidental where it hits

• Some places are more vulnerable to damagewhen it rains

• Model to identify water risk of heavy rainestablished

• Frequency for customers with basementsapp. 10 times higher

• Analytical results will form the basis forfuture:

- riskassessment- conditions- pricing

Illustration of water flow Geomatic waterisk

Visualisation of cloudburst

11

Expense ratio

Breakdown of Group expense ratio

16.5 16.0 15.5 15.614.5 14.1

0.4 0.8 1.3 1.52.7 2.9

2005 2006 2007 2008 2009 2010

17.0 16.9 16.8 17.1 17.2 17.0

Denmark & Norway Finland & Sweden

Expense ratio

16.616.2

15.5

16.4

15.616

50

60.464.5

45.8

24.130.1

2005 2006 2007 2008 2009 2010

Denmark & Norway Finland & Sweden

Data before 2009 is not corrected for the sale of Marine Hull business.

Continued focus on expenses drives expense ratio downwards by

• streamlining the distribution platform

• digital and paperless process handling

• in-house rotation reduces need for external hiring

• investments in branding impacted expense ratio by 0.4 %-point in 2010

12

and the future vision for 10 in 20

2010 2015 2020 2025

Cost reductions

Drivers to achieve the vision

Tryg Transition

• Self-service

• Automation

• Reduce admin and distribution cost

Efficiency

• New products

• Organisational structure

• Outsourcing non-core processes

Other cost reductions

• Only @ customer communication

• Lower/reduced commission rates

• Fewer local offices

Markets

• Meet profitability targets

• Increase market share in Sweden and Finland

17% 10%

Lower distribution and admin cost

Head count reduction and increasedmarket position

13

Division of the investment return

Gross investment return

Bonds DKK 1,185m

Equities DKK 261m

Real estate DKK 300m

Total DKK 1,746m

Match

Result DKK -5mMismatch 0.02%

Risk minimisation – createa return close to tech inter-est rate and discounting+/- DKK 50m per quarter

Free investment

Result DKK 772mReturn of 7.4%

Absolute return – creates thebest return after risk, capitalload and investment cost

Stable items not directly related to the return on investment

Investment expenses etc.Interest expensesReversed domicile expenses

Result DKK +239m

Inflation mismatchExchange rate adjustmentsOther loans and debt etc

Result DKK -42m

.

Unstable

Stable

Unstable items not directly related to the return on investment

14

Capitalisation

6,000

7,000

8,000

9,000

10,000

11,000

12,000

Q1 08

Q2 08

Q3 08

2008

bef

ore

payo

ut

2008

afte

r pay

out

Q1 09

Q2 09

Q3 09

2009

bef

ore

payo

ut

2009

afte

r pay

out

Q1 20

10Q2

2010

Q3 20

10

2010

bef

ore

payo

ut

2010

afte

r pay

out

Capital requirement Buffer (5%) Surplus capital

DKKm

15

21

33

17

6.54.0

15.5

21

12.5

0

5

10

15

20

25

30

35

40

2005 2006 2007 2008 2009 E2010

DK

K p

er

sh

are

Cash dividend Share buy back

Suggested dividend for 2010

Dividend policy:

• 50% of net earnings

• share buy backs in addition

16

Outlook mid-term

Mid-term

Medium term target is return on equity of more than 20% after tax

This implies a combined ratio level of 90% including potential run-off and

at current interest rate level

Annual impact fromprice increases

2011 2012

DKK ~1.0bn DKK ~0.6bn

ROE after tax

0%

10%

20%

30%

40%

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Mid term target

17

Summary

• 2010 results significantly impacted by one-off events of approximately DKK 1.4bn more than in a normal year

• Premium increases and tighter risk management starting to improve result. Premium

initiatives contributed DKK 0.9bn

• Q4 best quarter of the year

• Clear earnings improvements Norway/Finland – trends improving in Denmark

• Cost ratio down to 17.0% despite additional cost for branding a.o.

• Good investment return and supported by positive performance in equity markets

• Medium term ROE target of minimum 20%, which implies an combined ratio of around 90

18

Q&A session

19

Q&A session

Date Place Participants from Tryg Arranged by

10 February 2011 Copenhagen Morten Hübbe, CEO Investor Relations

SEB Enskilda

22 February 2011 Zürich Investor Relations Nordea

28 February 2011- 2 March 2011

USA Lars Møller, IR Manager Handelsbanken

3 March 2011 Toronto, Canada Lars Møller, IR Manager Handelsbanken

7 March 2011 Edinburgh Morten Hübbe, CEO Lars Bonde, Group Executive Investor Relations

KBW

8-9 March 2011London Morten Hübbe, CEO

Lars Bonde, Group Executive Investor Relations

UBS

30-31 March 2011 London Morten Hübbe, CEO Lars Møller, IR Manager

Morgan Stanley European Conference

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