04/19/23

Topdanmark & TopPro – in Denmark

19/04/23

2Agenda

• Denmark– The country in an overall perspective – a quick walkthrough

• Topdanmark– History– Objectives, Goals & Strategy– Values– Organisation– Market share– Business structure (products)– Financial highlights

• TopPro– Vision– TopPro history and background– Plans going forward – Organization – Program success criteria's and management principles

19/04/23

3Topdanmark – placed in Ballerup

19/04/23

4The actual buildings – TopPro in Topdanmark

19/04/23

5The Danish Realm

• Denmark has never been a major colonial power, but it had small tropical colonies in Africa, Asia and the West Indies

• In the North Atlantic, Denmark has ruled over Iceland, which withdrew from the union with Denmark in 1944

• The Faroe Islands and Greenland, the world’s largest

island, are still part of the Danish Realm. There has been home rule on the Faroe Islands since 1948 and in Greenland since 1979. Neither territory is a member of the EU

• Both have two seats in the Folketing. The Faroe Islands are considering full independence from Denmark, to which the Danish Government has responded that Denmark would then phase out its economic support of the Islands over a shorter term than the Faroese wish

19/04/23

6Denmark and the World – foreign affairs

• During the history of Denmark, the image of the Danes has changed completely. The barbaric Viking has been replaced by the Danish UN soldier

• Membership of:– the UN (Denmark was a co-founder in 1945), – NATO (since 1949), – the Nordic Council (since 1952) and – the EEC/EU (since 1973)

• Denmark has sent out more than 87,000 soldiers and policemen between 1948 and 2007 – to undertake peacemaking, peacekeeping and humanitarian tasks for the UN, NATO, OSCE and as EU monitors

19/04/23

7Denmarks geography

• Denmark consists of 406 islands, 78 of which are habited

• Total coast line is 7,314 km

• No one in Denmark is more than 50 km from the sea

• The climate is temperate coastal climate, – January and February are the coldest months with an average

temperature of 0.0°– August the warmest with an average temperature of 15.7°C.

• The average wind force across the year is 7.6 m per second,– Denmark is the world’s largest exporter of wind turbines

• 62% of the total area is cultivated, the highest percentage in Europe. 56% of the land is used for growing corn, 20% for grass, 4% for roots and 4% for seed.

19/04/23

8The Royal Denmark

• The Danish monarchy can be traced back more than 1000 years. The Queen of Denmark, Margrethe II, is therefore able to count kings like Gorm the Old (deceased 958) and Harald Bluetooth (deceased 987) among her ancestors.

• The Danish monarchy is constitutional, which means that the monarch cannot independently perform political acts.

19/04/23

9The social system and the tax

• With the taxes as a tool, an equalization of income is achieved so that everyone has the necessary material framework for living a reasonable life

• The model means that 33% of the taxes (2005) are paid back to the citizens as transfer income - and that the public sector accounts for 30% (2005) of all employees

• The social system acts as a fine-meshed safety net under the Dane from birth to death. The many individual benefits include maternity and parent leave, which the parents may choose to share

• It is regarded as an advantage – both for the individual and the exchequer – if people weakened by illness or age remain in their own homes as long as possible. Here, elderly people can receive home help from the local authority

19/04/23

10Education in Denmark

• School attendance is not compulsory in Denmark, but nine years of education are

• The elementary and lower secondary school is comprehensive, i.e. the children are not divided up on the basis of ability or social background

• Almost all education is a free benefit as part of the welfare system. From the age of 18, young people receiving education may obtain public support, the so-called State Educational Grant SU, of up to DKK 5,177 per month (app. $ 890), so that no one is precluded from further education because of social or economic status

19/04/23

11Sports

• The Danes like sports – as participants, spectators and in front of the television. Almost two million actively participate in sports as members of an association. Almost two thirds of all children and young people are engaged in organized sports in their leisure time

• It is an official political objective that Danish sports should be for everyone

• The distinguishing feature of Danish sports is the broad base, firmly established in both town and country everywhere; even the smallest village has at least one football field and a gymnasium or sports hall

• Danish sports associations are independent of the state, although the state makes an annual contribution to sports of around DKK 635m

19/04/23

12The food• There are three main meals in Denmark: breakfast and dinner are

typically eaten at home, whereas lunch for practical reasons has to be eaten elsewhere

• Hot food is eaten in the evening, and most people only have a single course on weekdays

• At the evening meal families make an effort to arrange for a family meal prepared at home

• Denmark has made few original contributions to gastronomy. Among those to be mentioned are smørrebrød (open sandwiches), kransekage (almond cake rings), æblekage (apple charlotte) with fried breadcrumbs and fruit preserves, and then hot dishes such as boiled cod with mustard sauce, melted butter, chopped hard-boiled egg, horse-radish and boiled potatoes, and roast duck, goose or pork with apples, prunes, caramelised potatoes, red cabbage and brown gravy

19/04/23

13The Danish culture – Gender Equality and Association Life

• Denmark has still to experience a female Prime Minister. 37% of the members of the parliament, the Folketing, are women. Equal pay has to a considerable extent been achieved. Gender discrimination in job advertisements is prohibited. The public childcare system enhances women’s opportunities to pursue a career outside the home. Around 95.7% of all children aged 3-5 are looked after in day-care institutions

• 83.3% of the Danes belong to the Lutheran National Church. Moreover, church and state – politics and religion – are strictly separated in Denmark

• Danes form associations whenever they spot a sensible or enjoyable reason for doing so. Every third Dane has attended at least one association meeting within the last month

19/04/23

14The Danish culture 2 -the tone and the ”Jante Law”

• Common to all Danes is their tendency to take the ups and downs of life with a touch of irony, often self-irony

• The tone between Danes is relaxed – e.g. in the schools, the pupils are on first-name terms with the teachers 

• Over the years, there have also been traces of local insularity, snobbery and conformity. It was best not to be different. The Danish- Norwegian author Aksel Sandemose (1899-1965) invented the concept “Janteloven” (“The Jante Law”) with the bigoted rules he felt dominated his birthplace, a provincial town in Jutland. The (fictitious) rules include: “Do not imagine you are anything special” and “Do not imagine you can teach us anything”. The “Jante Law” is still widely held

19/04/23

15The Danish Population

• Denmark has a population of 5,447,084 (December 2006), distributed on 2.5m households

• The population density is high – 127 per sq. km.

• The language spoken is Danish. It has many vowels – including the special letters æ, ø and å – and many significant glottal stops, which make it difficult for foreigners to learn Danish

• For every three marriages, there is a divorce

• For the last 20 years, the poll has varied between 82% and 88% for elections. Since 1909, no party has had an absolute majority. That is why the legislation is compromise-led and centre-seeking, which has given Danish politics the name “collaborative democracy”.

19/04/23

16The Danish Population 2

• Out of 100 Danish households (2006), 59 owned their house or flat, 11 also had a holiday home, 81 a washing machine, 63 a dishwasher, 71 a microwave oven, 19 a flat screen television, 83 a video player, 94 a CD player, 83 a DVD player, 85 a home computer, 51 an answer-phone, 94 a mobile phone and 80 access to the internet. There is also free internet access in all libraries

• Average life expectancy of 75.6 years for men and 80.2 for women, which is lower than in Denmark’s neighboring countries. The experts attribute this to rich food, too little exercise (although many jog) and too much smoking

• Average height of the conscripts were 180.9 centimeters (2005)

• Cancer is the main cause of death (27.3% of the men, 25.7% of the women). Heart diseases account for 23.7% and 21.9% respectively

19/04/23

17What else…???

The four seasons

Spring

Summer

Fall

Winter

19/04/23

18What do we think we are known for?

The Little Mermaid

The Danish Vikings

Aqua – the pop band!

H. C. Andersen

‘The free town’ - Christiania

Danish companies

- And of course….

19/04/23

19Topdanmark

• History• Objectives, Goals & Strategy• Values• Organisation• Market share• Business structure (products)• Financial highlights

19/04/23

20Topdanmarks history

1898/99: AU and MLU founded

1972: MLU and AU merged into Topsikring gs

Topdanmark life insurance established

1985: Topsikring gs demutualised into a limited company and went public

1990: Aktivbanken acquired

1994/95: Reconstruction / refinancing of Topdanmark - focusing on insurance

1996: Distribution agreement with BG Bank

BG Pension acquired

1997: Repayment of refinancing loan

1999: Distribution agreement with Danske Bank

Danica Forsikring and Danske Forsikring Skade acquired

2000: BG Bank acquired by Danske Bank which exercised option to acquire BG Pension

Working agreement with Nykredit on life insurance

2001: Introduction of unit-linked policies

Industriens Arbejdsskadeforsikring acquired

Working agreements with Handelsbanken

2002: Working agreement with “home”

19/04/23

21Topdanmarks objectives, goals and strategies

Goals:

• To improve our position in the Danish insurance market

• To ensure that our expense ratio is lower than the general market level

• To ensure that our growth in non-life and life insurance as well as pension fund business is higher than that of the market

• To attract and keep profitable customers due to a high level of customer service

• To ensure that Topdanmark's shares reflect insurance risk rather than investment risk

• To ensure that Topdanmark's shares are both attractive and liquid

• To be able to attract and keep qualified employees

Strategies:

• To achieve primarily organic growth, supplemented by close co-operation with alliance partners and opportune acquisitions

• To develop and improve the level of customer service

• To optimise our shareholders' return / risk profile by ensuring that shareholders' equity continues to reflect both the volume of business and a corresponding investment policy

• To be a dynamic organisation encouraging personal and career development

• To align the goals of Management and employees with those of our shareholders

Objectives:

• To carry out nation-wide, Danish non-life and life insurance and pension fund business

• To be attractive to customers by being an independent and pre-eminent insurance group

• To ensure that our shareholders achieve a long-term, competitive, stable return

19/04/23

22Topdanmark’s shared values

• Happy to help

• Informal and uncomplicated

• Create value

• Focus on customers

• Demonstrate empathy

19/04/23

23Topdanmark's business structure

Board ofDirectors

Poul AlmlundChristian Sagild

Kim Bruhn-Petersen

Industrial Pia Laub von Gottberg

ReinsuranceJens Ellborg

AssetManagement

Lars Thykier

CommercialFinn Fabricius

PersonalErik Adrian

NykreditLocal banks

Life andPensions

Christian SagildJan Hoffmann

Brian Rothemejer Jacobsen

AgriculturalLars Hem Simonsen

PartnersJens Røpke

DI NykreditDanske Bank

Danica Pensionhome

Small AdministrativeDepartments

Claims DepartmentOle Peter Rasmussen

ITSøren Stevnsborg

Group

19/04/23

24

Market share in non-life- estimate for 2007

Market share in life in 2006

Market share

PFA; 21.0%

Danica; 21.1%

Nordea; 10.5%

Sampension; 8.1%

SEB Pension; 4.7%

Pen-Sam; 4.5%

Topdanmark; 4.2%

Industriens Pension; 6.9%

Pension-Danmark; 11.1%

Other; 7.9%

Tryg; 21.0%

Topdanmark;

19.1%Codan; 13.4%

Alm. Brand; 10.0%

if; 5.1%

Alka; 3.4%

Lærerstanden; 3.7%

Nykredit; 2.9%

GF Forsikring; 2.6%

Fair; 0.8%

Other; 18.2%

Group

19/04/23

25Topdanmark’s business structure (in segments)

Personal

Distribution:

Commercial Industrial Life

• 2 industrial centres• Customer-focused

organisation divided into direct business, brokers, agreements and captives

•41 sales centres•15 pension managers•14 industrial consultants•Other cert sales reps in Topdanmark•Telephone sales•Insurance brokers•Nykredit•Banks•Credit institutions•Labour market organisations•Trade organisations

• 36 sales centres• 167 cert ins sales reps• 2 customer contact centres• 380 Danske Bank branches• Car dealers• 200 ”home” sales centres• www.topdanmark.dk

Group

• 2 commercial centres• 1 agricultural centre• 120 cert commercial ins reps, of

whom 50 from Danica Pension• 82 cert agricultural ins sales reps• 5 pension sales managers• 1 dept for insurance agreements• Workers’ comp through Nykredit’s

team of cert ins sales reps and referrals from commercial insurance outside of Nykredit’s focus area

• Referrals from Dansk Industri to IA

• Referrals from Danske Bank• ”home”

19/04/23

26

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

2007 H1 2007 H1 2008

Non-life Life

Financial HighlightsPremium income

Group

19/04/23

27Premiums by segment 2007 Premiums by product 2007

Private

51.3%

39.0%

9.7%

26.5%

29.2%

10.5%

5.5%

9.2%

13.6%

5.4%

Non-life

Commercial

Industrial

Private

Motor

Commercial

Agricultural

Industrial

Illness/accident/unemployment

Workers' comp

Financial HighlightsPremiums by segment / product

19/04/23

28

2008 profit forecast reduced by DKK 300m

Group

Forecast assumptions for 2008 are based on equity prices at 22 August 2008

Profit forecast Normal-Full year H1 ised

(DKKm) 2007 2008 2008E 2008

Non-life insurance- technical result 1,572 752 1,300 1,200- investment return etc. 8 (557) (480) 190Life insurance 50 (38) 0 160Parent company etc. 27 (38) (70) (50)Pre-tax profit 1,657 119 750 1,500Tax (386) (110) (250) (350)

Profit 1,271 9 500 1,150

Financial HighlightsProfit forecast

19/04/23

29TopPro

• Vision

• TopPro history and background

• Plans going forward

• Organization

• Program success criteria's and management principles

19/04/23

30Claims Vision

• We want to be the market leader in terms of delivery and development of claims solutions which create value for customers and alliance partners

• Our management of paid losses cost should be the most effective in the market

IT

Medarbejdere

Kunder

Processer

Interne samarbejdspartnere

Eksterne samarbejdspartnere