1 Septem ber 2 0 0 9 in London Capital Markets Day 2009 Capital - - PDF document

Capital Markets Day 2009 1

Capital Markets Day 1 Septem ber 2 0 0 9 in London

Capital Markets Day 2009 2

Agenda

09: 30–10: 00 Registration 10: 00–10: 05 Ole Søeberg – Welcome 10: 05–10: 40 Christine Bosse – Strategic targets 10: 40-11: 00 Lars Bonde – P&C direct in Denmark and Norway 11: 00-11: 25 Truls Holm Olsen – TrygVesta Corporate business 11: 25-11: 45 Kjerstin Fyllingen – Partner Sales, Sweden & Finland 11: 45-12: 00 SHORT COFFEE BREAK 12: 00-12: 20 Peter Falkenham – Major initiatives – Moderna and self-service 12: 20-12: 45 Ole Hesselager – Reserves and run-offs 12: 45-13: 15 Morten Hübbe – Capital, investments and financial targets 13: 15-14: 00 LUNCH BUFFET

Capital Markets Day 2009 3

Disclaim er

Certain statements in this presentation are based on the beliefs

• f our management as well as assumptions made

by and information currently available to the management. Forward-looking statements (other than statements of historical fact) regarding our future results of operations, financial condition, cash flows, business strategy, plans and future objectives can generally be identified by terminology such as “targets”, “believes”, “expects”, “aims”, “intends”, “plans”, “seeks”, “will”, “may”, ”anticipates”, “continues”

• r similar expressions.

A number of different factors m ay cause the actual performance to deviate significantly from the forward-looking statements in this presentation including but not lim ited to general economic developments, changes in the competitive environment, developments in the financial markets, extraordinary events such as natural disasters or terrorist attacks, changes in legislation or case law and reinsurance. We urge you to read our annual report available on our website at www.trygvesta.com for a discussion of some of the factors that could affect our future performance and the industry in which we operate. Should one or more of these risks or uncertainties materialise or should any underlying assumptions prove to be incorrect, our actual financial condition or results of operations could materially differ from that described herein as anticipated, believed, estimated or expected. We are not under any duty to update any of the forward-looking statements or to conform such statements to actual results, except as may be required by law.

Strategic targets Christine Bosse, CEO

Capital Markets Day 2009 5

Delivering peace of m ind for investors

TrygVesta versus OMX C20 and DJ Euro Insurance Index

Since IPO on 13 October 2005

50 100 150 200 250 October-05 April-06 October-06 April-07 October-07 April-08 October-08 April-09

TrygVesta OMX C20 DJ Euro Insurance Index

Capital Markets Day 2009 6

Financial perform ance

Claim s ratio

70.5 70.1 70.6 74.7 71.3

64 68 72 76 H1 05 H1 06 H1 07 H1 08 H1 09

Gross prem ium s

DKKm

7,769 7,965 8,106 8,571 8,820

7,000 7,500 8,000 8,500 9,000 H1 05 H1 06 H1 07 H1 08 H1 09

Com bined ratio

88.5 87.4 87.1 87.6 91.9

83 87 91 95 H1 05 H1 06 H1 07 H1 08 H1 09

Gross expense ratio

16.7 16.4 15.8 15.3 15.0 0.5 0.5 1.2 1.7 2.2 10 12 14 16 H1 05 H1 06 H1 07 H1 08 H1 09 17.2 16.9 17.0 17.0 17.2

Denmark & Norway Finland & Sweden

Lower interest rate impacts 2%

Capital Markets Day 2009 7

Strategic focus

THE STRATEGY PLAN CONTAI NS FOUR STRATEGI C THEMES Profitable grow th Peace-of-m ind delivery Self-service Hum an com petencies

Capital Markets Day 2009 8

Strategy – profitable grow th

Capital Markets Day 2009 9

Peace-of-m ind delivery

The peace-of-mind delivery is anchored in our handshake: Compassionate, Dynamic and Innovative

Capital Markets Day 2009 10

Self-service

I t is so easy !

Buy

Capital Markets Day 2009 11

Hum an com petencies

Capital Markets Day 2009 12

Challenges and opportunities for the insurance industry

Capital Markets Day 2009 13

Clim ate change

Capital Markets Day 2009 14

Com petition

Capital Markets Day 2009 15

Change in dem ographics

Capital Markets Day 2009 16

Solvency I I and political changes

Political changes Future 2 0 1 2 -1 4

Capital Markets Day 2009 17

Sum m ary

Peace of m ind for investors Good financial perform ance Clear strategy, w ith four legs, w hich aim s at creating value for all stakeholders Prepared to m eet the opportunities and challenges of the future

Capital Markets Day 2009 18

Questions please

31.08.2009

P&C direct in Denm ark and Norw ay Lars Bonde

Capital Markets Day 2009 20

The P&C m arkets in Denm ark and Norw ay

Motor 48% Property 31% Personal lines 4% Workers' comp. 8% Other 9%

10 20 30 40 50 1995 1997 1999 2001 2003 2005 2007

TrygVesta Topdanmark Codan Alm Brand Other

Market shares in Denm ark since 1 9 9 5 Market shares in Norw ay since 1 99 4

10 20 30 40 1994 1997 2000 2003 2006 Jun-09

I f… Gjensidige Sparebank1 TrygVest a Ot her

Motor 34% Property 40% Personal lines 13% Workers' comp. 5% Other 8%

Danish P&C portfolio Norw egian P&C portfolio

% %

Capital Markets Day 2009 21

Strong distribution platform and profitability

2,000 4,000 6,000 8,000 10,000 12,000 2006 2007 2008 H1 09 P& C Denm ark P& C Norw ay 500 1,000 1,500 2,000 2,500 2006 2007 2008 H1 09 P& C Denmark P& C Norw ay

Prem ium s

DKKm

I nsurance result

DKKm

Strong distribution platform

• 1,500 persons in sales
• 130 offices
• 80 Norwegian franchise offices
• Internet sales

Focus on profitability

• premium increases
• improved segmentation
• self-service and improved customer

interface

• Cost ratio focus
• reducing

cost per sold policy

Capital Markets Day 2009 22 Average claim s Denm ark

80 95 110 125 140 2005 2006 2007 2008 H1 09

Average claim s Norw ay

90 100 110 120 130 2005 2006 2007 2008 H1 09

Claim drivers 2 0 0 5 - today

H1 0 8 to H1 0 9 + 0.8%

• 2.8%

+ 1.1%

• 2.3%

Capital Markets Day 2009 23

Price increases to off- set claim s inflation

Average prices in Denmark

3,000 3,500 4,000 4,500 5,000

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

DKK

Average prices in Norway

3,500 4,000 4,500 5,000

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

NOK

Price increases im plem ented on m ain products

House Car Other Denmark* 11% 4% 4-25% Norway 16% 18% up to 10% Finland 11% 9% Sweden 21%

* Index will be regulated at 4.2% in 2010

Capital Markets Day 2009 24

Recently im plem ented price increases

Denm ark

Jan 0 9 Apr 0 9 Jul 0 9 House building

New product

Health Care 15% 10% Accident 15% Travel 20% Agriculture 10%

Norw ay

Jul 0 7 Jan 0 8 Jul 0 8 Jan 0 9 Jul 0 9 House building 2% 6% 1.8% 7.4% 4.5% Holiday house 7.0% 5.0% Motor 4.8% 1.6% 1% 5.0% 6.6%

Sw eden

Apr 0 9 Jun 0 9 Motor 15% House building 8% House content 5% Accident 5%

Finland

Apr 0 9 Motor 9% House content 11% Accident 11% Holiday house 10% Travel 10% Motorcycle 13%

TrygVesta Total effect of price increases*

2 0 0 9 2 0 1 0 DKK 245m DKK 360m

* I ncluding effect of price increases from 2008

Capital Markets Day 2009 25

Clim ate changes

Danish annual rain levels since 1 8 7 0

EUR

DK

DE

SE

BEL NLD FRA GBR CHE

NO

Climate changes are likely to impact insurance business more severely than in the past We change coverage and increase prices to reflect new risk environment

mm

Capital Markets Day 2009 26

The challenge: cloudbursts in Denm ark since 1 9 9 7

20 40 60 80 100 120

2006 2007 Annual average (1997-2009): DKK 76m 2007: DKK 312m 1997-2005 2008-Q2 2009

DKKm

Capital Markets Day 2009 27

Changes in risk paves the road for innovation Changes in w eather patterns changed the risk picture

• more cloudburst related claims during summer

W hat w e did

• designed a new house insurance, which covers the changed risk picture better
• average prices increased by 11% during 2008 and 2009

New house insurance w ith extended coverage

Capital Markets Day 2009 28

I m pact on the financials

3,300 3,400 3,500 3,600 3,700 3,800 3,900 4,000 4,100

DKK

4,000 6,000 8,000 10,000 12,000

DKK

Av e r a ge pr e m ium ( LHS) Av e r a ge cla im ( RHS)

How price and claim changes w ork their w ay into the figures

2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9

Capital Markets Day 2009 29

I ncreasing prices im pact retention…

10 20 30 40 H1 08 H1 09

Prem ium for all new w ritten polices

DKKm

• 1,500
• 1,000
• 500

H1 08 H1 09

Num ber of policies, net

DKKm

House insurance in Denm ark

Capital Markets Day 2009 30

Retention since 2 0 0 5

84% 86% 88% 90% 92%

Q1 05 Q3 05 Q2 06 Q4 06 Q2 07 Q4 07 Q2 08 Q4 08 Q2 09

...how ever, retention rem ains at a solid level

Retention is supported by real and perceived good service in the claims situation

• Segmentation, add-on products and services add to retention and glue

Capital Markets Day 2009 31

Custom er exchange ratio – exam ple GF I nsurance 10 20 30 40 50 H1 07 H1 08 H1 09

GF - gross intake from TrygVesta TrygVesta - gross intake from GF

GF I nsurance

DKKm

Capital Markets Day 2009 32

Total custom er exchange ratio – Denm ark and Norw ay

200 400 600 800 H1 07 H1 08 H1 09

Total gross intake from TrygVesta TrygVesta - gross intake from other companies

P&E Denm ark

200 400 600 800 H1 08 H1 09

Total gross intake from TrygVesta TrygVesta - gross intake from other companies

P&E Norw ay

DKKm DKKm

Capital Markets Day 2009 33

Sum m ary

W e have a solid m arket platform and strong distribution netw ork W e have taken the steps needed to im prove profitability going forw ard Price increases com ing through bode w ell for 2 0 1 0 and 2 0 1 1 profitability W e are proactive on how clim ate changes im pact our business Focus on high retention supports profitability

Capital Markets Day 2009 34

Questions please

Capital Markets Day 2009 35

TrygVesta Corporate business Truls Holm Olsen

Capital Markets Day 2009 36

TrygVesta Corporate

Capital Markets Day 2009 37

Nordic insurance m arket – Corporate m arket

Total corporate insurance market estimated to be DKK 30-35bn

I nternational players Nordic players

Capital Markets Day 2009 38

TrygVesta’s Corporate business

Gross prem ium s in DDKm

4,801 4,666 5,512 5,285 4,921

2004 2005 2006 2007 2008

Group prem ium s 2 0 0 8 in DKKm

Other, 5 7 5 P&C NO, 4,636 P&C DK, 6,6 05 Corporate, 5,512

Capital Markets Day 2009 39

The Corporate portfolio end 2 0 0 8 Products

Marine 7% Other 5% Workers' comp 19%

Personal lines 20%

Property 23% Liability 9% Motor 17%

Capital Markets Day 2009 40

TrygVesta’s corporate distribution channels

38 38 62 45

Portfolio in DKKm *

2,844 2,707 2,962 1,759 1,896 2,049 2,355 2,373 2,838 2,751

1,500 3,000 4,500 6,000 2004 2005 2006 2007 2008

Direct Broker

4,603 4,603 4,800 5,193 5,335

* Excludes TrygVesta Garanti

Brokers:

45 % 55 %

Capital Markets Day 2009 41

Solid underw riting leads to good results

Technical result in DKKm

390 464 842 842 1,092 636 463

2004 2005 2006 2007 2008 H1 08 H1 09

Com bined ratio

82.9 81.0 73.9 77.2 72.7 69.7 72.3 11.7 11.4 11.0 9.5 10.7 10.3 11.3

2004 2005 2006 2007 2008 H1 08 H1 09 Claims ratio Cost ratio

Our good risk selection and prudent underw riting have provided a good background for earnings grow th

83.6 83.4 86.7 84.9 92.4 94.6 80.0

Capital Markets Day 2009 42

One area w here recession is likely to im pact

40,000 80,000 120,000 160,000 200,000 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 100,000 200,000 300,000

2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 Jun- 0 9

30,000 60,000 90,000 120,000 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09

W orkers’ com pensation insurance – num ber of insured

100,000 200,000 300,000 400,000

2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 Jun- 0 9

W orkers’ com pensation insurance – num ber of insured Num ber of unem ployed ( adjusted for seasonallity) Num ber of unem ployed

Denmark Norway

2003 2004 2005 2006 2007 2008 2009 2003 2004 2005 2006 2007 2008 2009

Capital Markets Day 2009 43

Underw riting discipline Service providing industries Food industry Consultancy services/ architects and engineers Mail and telecommunications

Preferred sectors

Companies focusing

• n

environment and climate Deselected sectors

• Public sector
• Heavy industry
• Energy/ oil

and gas

• Chemical

industry

• Mining
• Furniture-

and wood manufacturing industry

Capital Markets Day 2009 44

Risk m anagem ent

Risk mapping Risk assessment Risk strategy Reduce/ eliminate risk Keep risk Transfer risk

Capital Markets Day 2009 45

Strong custom er team

Team Claims Sales Underwriting RM

Capital Markets Day 2009 46

Focus on insuring the energy sector

Capital Markets Day 2009 47

Sum m ary

The Nordic Corporate business is stable and profitable Good risk selection Prudent underw riting and risk m anagem ent lead to profitability Focus on insuring the energy sector

Capital Markets Day 2009 48

Questions please

31.08.2009

Partner Sales, Sw eden & Finland Kjerstin Fyllingen

Capital Markets Day 2009 50

Value proposition in partner sales, Sw eden and Finland

Premiums in Q2 2 0 0 9

Sw eden & Finland 7 % Rest of TrygVesta 9 3 %

• High growth in Sweden and Finland

dominated by Nordea partner sales

• More channels in 2009 and forward
• Expanding partner sales in Denmark

and Norway

Capital Markets Day 2009 51

The Nordic TrygVesta partner m arket

Denm ark Brands: Premiums: approx. DKK 2.5bn Sw eden Brands: Premiums: ~ DKK 1.8bn annual run- rate Norw ay Brands: Premiums: approx. DKK 2bn Finland Brands: Premiums: approx. DKK 500m

Capital Markets Day 2009 52

Our partner strategy has three w inners

Partner concepts TrygVesta End custom er Partner

Capital Markets Day 2009 53

Distribution - Nordea branches and m arket share Finland: Branches: 345 Market share: 32% Norw ay: Branches: 124 Market share: 9% Denm ark: Branches: 319 Market share: 21% Sw eden: Branches: 341 Market share: 18%

Nordea market shares are based on ”Household deposits” Source: Nordea Annual Report 2008

Annual sale of private insurances via Nordea

2 0 ,0 0 0 4 0 ,0 0 0 6 0 ,0 0 0 8 0 ,0 0 0 Denm ark Norw ay Finland Sw eden 2006 2007 2008 H1 2009

TrygVesta and Nordea have a strategic partnership

Capital Markets Day 2009 54

Our bancassurance m odel

TrygVesta Nordea Custom er

1 . I nitial insurance proposition 2 . Paym ent and registration 3 . Com m ission and support 4 . Products and services

Risk taker Product developm ent After sales service I T system s Claim s handling Sales Financial advice Frequent custom er contact Easy w ay of doing business I nsurance need satisfied TrygVesta ”ow ns” the custom er once insurance is bought TrygVesta sells Nordea life products and w e are their largest asset m ng. custom er

Capital Markets Day 2009 55

Partner agreem ents

Ensuring high retention rate Utilise existing agreements More new agreements

Capital Markets Day 2009 56

Finland

Others, 16% TrygVesta, 4.7% Fennia, 10% Tapiola, 18% Pohjola, 27% If…, 25% Other 8% Accident & health 11% House & content 29% Motor 52%

Market share, private* TrygVesta Portfolio

Distribution channel Finland Customer centre Call centre Bancassurance Car dealers Insurance brokers Affinity groups Real estate agents Nordea online bank E-business/ self-service Franchise (tied agent)

Vahinkovakuutus

* TrygVesta estimate

Capital Markets Day 2009 57

Finland – recent developm ent

Developm ent 2 0 0 8 / 2 0 0 9 custom ers 80,000 100,000 120,000 140,000

Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09

Developm ent 2 0 0 8 / 2 0 0 9 Private policies 50,000 100,000 150,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2008 2009 Gross prem ium DKKm

57 62 67 66 78 86 97 93 109 110 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09

Com bined ratio 100 110 120 130 140 150 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09

Q2 08 adjusted for reserve releases

Capital Markets Day 2009 58

Sw eden – com petitors, distribution and business lines

TrygVesta, 2.7% Länsforsk., 30.3% If, 19.6% Other, 18.6% Codan, 17.2% Folksam, 13.9%

Other, 16.9% SME, 24.5% House, 20% Motor, 38.5%

TrygVesta portfolio Market shares

Distribution channel Sw eden Customer centre Call centre Bancassurance Car/ boat dealers Insurance brokers Affinity groups Real estate agents Nordea online bank E-business/ self-service Franchise

Moderna =

Capital Markets Day 2009 59

Sw eden perform ance

Developm ent 2 0 0 9 ( excl. Moderna) custom ers 20,000 40,000 60,000 80,000 100,000 120,000

Q4 06 Q4 07 Q1 09 Q2 09 Q3 09 Q4 08 Q1 09 Q2 09

Developm ent 2 0 0 8 / 2 0 0 9 ( excl. Moderna) Privat e policies 30,000 60,000 90,000 120,000 150,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 2009

Com bined ratio Sw eden ( incl. Moderna in Q2 0 9 )

50 100 150 200 250 300 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09

Gr oss pr e m ium s ( incl. Mode r na ) DKKm

67 58 64 54 45 37 27 17 9 3 1

Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09

322 Moderna

Capital Markets Day 2009 60

Moderna – acquired in Q1 2 0 0 9

• Moderna complements and strengthens position and distribution power in Sweden
• Eases expansion of commercial and corporate insurance
• Opens for reverse sales synergies in DK, NO and FI

I ncrease TrygVesta EPS by 5 % in 2 0 1 0 and onw ards

Capital Markets Day 2009 61

Sum m ary

W e have strong and self-sufficient bridgeheads in Sw eden and Finland W e have advanced and expandable partnership platform s W e focus on profitable grow th in Sw eden and Finland Moderna strengthens our position, distribution pow er and earnings ability W e leverage the operating know -how pan-Nordic

Capital Markets Day 2009 62

Questions please

Capital Markets Day 2009 63

Major initiatives – Moderna and self-service Peter Falkenham , COO

Capital Markets Day 2009 64

Capital Markets Day 2009 65

I ntegration of Moderna

The Moderna acquisition in a strategic setting

Sw eden Finland Norw ay Denm ark

Vahinkovakuutus

Nordea online bank Affinity groups Real estate agents Car dealers Insurance brokers E-business/ Self-service Bancassurance Franchise Call centre Local service centre Custom er centre Distribution channel (Moderna) (Moderna) (Moderna) (Moderna) (Moderna)

Sw eden Finland Norw ay Denm ark

Vahinkovakuutus

Nordea online bank Affinity groups Real estate agents Car dealers Insurance brokers E-business/ Self-service Bancassurance Franchise Call centre Local service centre Custom er centre Distribution channel (Moderna) (Moderna) (Moderna) (Moderna) (Moderna)

• Ensure profitable grow th and giving TrygVesta a m arket share of 2 .7 %
• Com plem ents existing distribution channels to a full service offering
• Moderna has a proven financial track record and attractive custom er segm ents
• Com plem ents the Corporate business line in Sw eden

Capital Markets Day 2009 66

Moderna im pact on Q2 num bers

Technical result - total Sw eden

• 25
• 18
• 26
• 22
• 26
• 35
• 11
• 18
• 23
• 2
• 16
• 10
• 6
• 40
• 30
• 20
• 10

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 DKKm

TrygVesta in Sw eden break-even in Q2 after acquisition of Moderna

• 10% premium growth for Moderna itself from H1 08 to H1 09
• Vesta grew the net number of insurances with 57,000 in Q2 09
• 63% growth in premiums in P&C Sweden (Vesta Forsäkring)

Key figures - Q2 2009

DKKm

Vesta Moderna Consolidated

Gross premium incom e

73 249 322

Technical result

• 23

21

• 2

Claim s ratio

97.3 69.1 75.8

Expense rat io

35.6 22.5 25.5

Com bined rat io

132.9 92.0 101.3

Capital Markets Day 2009 67

PHASE 2 2 0 1 0 -2 0 1 1 PHASE 1 2 0 0 9 FUTURE

Potential in the Moderna acquisition

I nvestm ents Locations Tax Reinsurance I T/ product developm ent One branch Corporate grow th Motor expansion Yacht expansion One Corporate division One organisation Process tow ards one branch

Market share 6 -8 %

Realised one off effect at half-year:

DKK 5 1 m

Synergies: SEK 5 0 m + annually Scale efficiency

Capital Markets Day 2009 68

Self-service

Capital Markets Day 2009 69

Self-service

The Self-service in a strategic setting

Grow th Cost Cost

Claims costs Administration costs Customer satisfaction

Grow th

Time to market Time to respond to customer requests

• Self-service complements existing

distribution channels - not a substitution

• Fits to the “peace-of-mind”

mindset

• No commission costs
• Reduced back-office staffing

Grow th Cost

Capital Markets Day 2009 70

Self-service – an innovative step

• Straight through processes
• Automation and digitalisation –

efficiency improvement also in back-

• ffice
• “The paperless insurance company”
• Self-service and digitalisation helps

reducing CO2 Focus on processes

Capital Markets Day 2009 71

Self-service – the deliveries

From the customers’ point of view From the employees’ point of view

SMS My-page

Capital Markets Day 2009 72

Self-service - results

• Target to sell 10,000 policies in Denmark in 2009
• 1.7m visitors to home page January to July
• 142,000 visitors to ”My-Page”

in January to July. Increased by over 150% this year

• Branding campaign not launched yet
• 180,000 signed

up for electronic communication (DK+ NO)

• Web solution (“Bedrifts-net”) launched for

commercial and corporate customers. 25% penetration target by end 2009

No com m issions or com pensation in the sales process No expenses in back-office and m ailing

50 100 150 200 250 300 350 January February March April May June July 200 400 600 800 1,000 1,200 1,400 1,600 Monthly sale (LHS) Accumulated sale (RHS)

• No. of

policies

• No. of

policies

Capital Markets Day 2009 73

Self-service – the potential

The self-service solutions will complement the existing distribution channels regarding: new sales, add-on sale, customer service and claims handling

Long-term:

• Solution launch will be based on “straight

through processing” releasing back-office personal.

• 80% of back-office personal will be affected

by self-service

• Other medias will be supported such as

extended use of PDAs, GPS facilities etc.

• Integration with partners
• Nordea already in place (common login, view

your insurances)

• More to come

Capital Markets Day 2009 74

Sum m ary

Moderna is a perfect strategic fit Moderna acquisition increased earning per share Self-service im proves custom er service, claim s handling and sales Self-service creates huge potential and high am bitions W e constantly strive to im prove efficiency, product quality and processes, w hich w ill im prove profitability in the m edium to longer term

Capital Markets Day 2009 75

Questions please

Reserves and run-off Ole Hesselager, Head of Group Risk

Capital Markets Day 2009 77

Reserves - overview

Status as of Q2 2 0 0 9 :

• Total reserves of DKK 29.4bn
• Loss reserves 21.3bn
• Duration 3.2 years
• Premium reserves 8.1bn

Reserves consist to a great extent of Bodily I njury related claim s

29% 36% 17% 8% 9% 71%

Property & other short tail Workers' comp Motor TPL Accident Bodily Injury, other

Reserves Margin 5,000 10,000 15,000 20,000 25,000 Q2 2009

Loss reserves include m argin

• Run-off risk is mainly related to long-tailed

lines involving BI claims

BI – duration 3.94 years Other – duration 1.25 years

DKKm

Capital Markets Day 2009 78

Review

Margin in reserves verified quarterly and thorough review carried out once a year Group reserves are review ed regularly Internal review on annual basis – as Q3

• Supported by occasional external
• reviews. Latest of its kind in 2005 in

connection with IPO

• Framework dictated by Group

Reserving Policy

• Standard actuarial methods are applied
• This process is defined as an adequacy

test and points to a margin in held reserves

Detailed internal m odels by LoB Ongoing risk analysis Fast track production m odel Review Tillinghast look-alike Annually/ quarterly Monthly Ongoing

Capital Markets Day 2009 79

50 100 150 200 250 4 8 12 16 20 24 28 32 36 40

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Changes in estim ated required reserves

Changes in estim ates can be caused by adverse developm ent or altered assum ptions Changed estim ates occur frequently and lead to run-off

• This illustration shows how estimates change when new information is amended

Traditional run-off pattern

NOKm

Changes in ultim ate estim ates

NOKm Quarters Quarters

Run-off

20 40 60 80 100 120 140 160 180 4 8 12 16 20 24 28 32 36 40 2005 Model per Q3 2006 Model per Q4 2006 Model per Q1 2008

Capital Markets Day 2009 80

Margin in reserves

• TrygVesta target ratio ~ 7%
• Consistent with Solvency II

methodology Development can be caused by two separate drivers:  Changes in estimated required reserves  Adding to held reserves (strengthening)

• 4%
• 2%

0% 2% 4% 6% 8% 10% 2002 2003 2004 2005 2006 2007 2008 2009 Auto, Legislation, 2002 Workers’ comp, Legislation, 2004 Mainly Norwegian workers’ comp.

Favourable historic developm ent in m argin The aim is to keep m argin around 7 % going forw ard

Capital Markets Day 2009 81

Run-off results

Margin on new business leads to sustainable run-off gains w hile total results rem ain unaffected Extraordinary changes

• During the early part of this decade

the weak reserving position was strengthened leading to run-off losses

The good reserving cycle

• Sustained margin generates run-off

gains when old buffers are released and recycled to current year

Run- off results have im proved significantly

• Run-off results will still fluctuate (stochastically), but now

around an elevated level

• 5%
• 3%
• 1%

1% 3% 5% 7% 9% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Estim ated m argin in %

• f total

reserves Run-off in % of premium

Capital Markets Day 2009 82

Building m argin or unloading reserves

Historically P/ I ratio has been able to detect built-up of m argin How to determ ine w hether m argin is increasing or decreasing?

• Paid to incurred ratio (P/ I ratio) is used to identify build-up or release of margin
• Below “100% ”

= > Built-up.

• Above “100% ”

= > Release

W arning

Break-even level 100% affected by

• Discounting (increase)
• Portfolio growth (decrease)
• Large (reserved) claims (decrease)
• Claims inflation (decrease)

0% 20% 40% 60% 80% 100% 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 TrygVesta Topdanm ark Alm .Brand I f.. Previous years Present

Capital Markets Day 2009 83

Sum m ary

Currently a positive m argin ( 7 % ) in held reserves. Supported by internal and external review s Consistent w ith expected future Solvency I I requirem ents – as stipulated in QI S4 Margin has been built up during the period 2 0 0 2 -2 0 0 7 Margin is intended to be m aintained at present level ( P/ I ratio’s around 1 0 0 % ) Current level of m argin w ill in the long run generate positive run-off in the area

• f DKK 5 0 0 m

Capital Markets Day 2009 84

Questions please

Capital Markets Day 2009 85

Capital, investm ents and financial targets Morten Hübbe, CFO

Capital Markets Day 2009 86

Changing regulatory environm ent

• Capital requirements
• Governance
• Disclosure

Dynam ic capital planning

• Moving target
• Financial markets

conditions

• Rating
• Modeling of risks

Solvency I I ndividual solvency Solvency I I

Capital m anagem ent and planning

Capital Markets Day 2009 87

Capitalisat ion

Buffer

Financial crisis creates upw ard pressure

I ndividual solvency Rating Capital

Capital strategy

Considerations

1 9 7 0 ’s 2 0 0 5 2 0 0 7 2 0 1 2

• S&P RBC model
• Individual capital

assessment

• QIS models

Capital planning instrum ents

Regulatory Capital

• S&P RBC model
• Internal model (ALM)
• Solvency II standardised

model

• Solvency I
• S&P CAR model

TAC S&P

Dividend policy:

• 5 0 % of net earnings
• share buy backs in addition

Self-im posed buffer

Capital needed to

• btain target rating

Capital needed to fulfill strategy Regulatory requirements

Capital Markets Day 2009 88 Financial crisis Operational risk Capital add-ons

Quantitative im pact

Solvency II impact

Solvency I I issues

Modeling and data Modeling and data Large vs. sm all com panies Large vs. sm all com panies Tier capital structure Tier capital structure

Capital planning – a m oving target

I nternal m odeling Diversifica- tion

S&P RBC “A” model: 52 - 56% of premiums QIS 4 TrygVesta: 38% of premiums Solvency I : 16% of premiums

Capital Markets Day 2009 89

I ntegration of internal m odel

2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 … 2 0 1 1

Reinsurance Renewal Property Marine/ Cargo All main programmes Reinsurance Policy Target Setting Investment Policy Individual Capital Assessment (quarterly) Solvency II

Quantitative im plem entation

FSA approval of internal model

• October 2 0 1 2

Directive approved

• Sum m er 2 0 0 9

Solvency I I Use test

Capital Markets Day 2009 90

TrygVesta – m odeling stochastic

ALM model includes types of risk we have statistical data to describe

Large claim s Storm I nvestm ent return Prem ium s Sm all claim s



∞

=

d

dx d F x F d ) ( ) ( ) ( π

) (

1 U

X

−

Φ =

t t t t

dW r dt r b a dr σ + − = ) (



=

=

t

N i i t

Y X

1

The mathematical descriptions are used to simulate 50- 100,000

• utcome/ scenarios
• f the coming years

results The ALM m odel is a m athem atical description of TrygVesta’s risk profile

Economic Scenario Generator

Nominal Interest Rate Curves for DK and NO Exchange Rates

Capital Markets Day 2009 91

Risk database I nternal risk evaluation

Risk identification in ERM environm ent

7 0 Risk ow ners

Risk identification process leads to the quantification of 5 risk scenarios updated quarterly

Scenarios – Total m odel

Recession scenario e.g.:

• Equity risk
• Spread risk
• Real estate risk
• Concentration risk
• Down grading risk

Risk report and Risk m ap

I m pact Sandsynlighed Bl ødt m arked I T strategi Strategisk valg Om d ø m m e Priss æ tning Bortfald af partnerskaber I nternet Brancheglidning M&A Sverige, Finland Tim e - to - m arket Bortfald af partnerskaber

I nvestm ents – ”breaking the w aves”

Capital Markets Day 2009 93

Conservative approach and new split by portfolio purpose

Current: Total DKK 38bn Matching: DKK 28bn Free: DKK 10bn

Today: Tomorrow:

Real estate Bonds Equities

• 1.0
• 0.5

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Jan 06 Mar May Jul Sep Nov Jan 07 Mar May Jul Sep Nov Jan 08 Mar May Jul Sep Nov Jan 09

pct.

• 1
• 0.5

0.5 1 1.5 2 2.5 3 3.5 Jan 06 Mar May Jul Sep Nov Jan 07 Mar May Jul Sep Nov Jan 08 Mar May Jul Sep Nov Jan 09

pct.

• 2.0
• 1.0

0.0 1.0 2.0 3.0 4.0 Jan 06 Mar May Jul Sep Nov Jan 07 Mar May Jul Sep Nov Jan 08 Mar May Jul Sep Nov Jan 09

pct.

Capital Markets Day 2009 94

Match / free investm ent portfolio split

Interest rate risk - before split

50 100 150 200 250 300 2 5 10 30 Year DKKm Asset s Provisions

• The matching portfolio, all bonds, is managed in order to maximise negative

correlation to the discounting curve/ reserves

• The managing of the free portfolio is done by means of absolute return and risk
• ptimisation. Basically without any interest rate risk
• Mandates are more efficiently designed

Interest rate risk - after split

50 100 150 200 250 300 2 5 10 30 Year DKKm Asset s Provisions

The route to im proving com bined ratio

Capital Markets Day 2009 96

Behind the curve but catching up

Houses Denm ark 90 100 110 120 130 140 150

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

Average premium Average risk

Private cars Norway

90 95 100 105 110 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

2005 2006 2007 2008 2009

Prem ium increases: Houses Denmark: New product Q4 2008 up 11% Privat cars Norway: 1 Jul 07: 4.8% 1 Jan 08: 1.6% 1 Jul 08: 1.0% 1 Jan 09: 5.0% 1 Jul 09: 6.6%

Developm ent since 2 0 0 5 … … and m ore recently

2005 2006 2007 2008 2009

Private cars Norw ay

90 100 110

2008 2009

Houses Denm ark

90 100 110

2008 2009

Capital Markets Day 2009 97

Underlying claim s developm ent

Underlying is adjusted for large claim s, w eather claim s, run-off and change in interest rates Underlying claim s ratio im proved from Q1 0 9 to Q2 0 9 , w hile gross claim s ratio rose

Claim s ratio

50% 55% 60% 65% 70% 75% 80% 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

Reported gross claims ratio Underlying claims ratio

* TrygVesta starts communicating premium increases

*

Capital Markets Day 2009 98

Underlying 2008 Underlying 2009 Underlying 2010 Underlying 2011 Underlying 2012

Catching up – and tim ing

I ndex/ price increases in 2009 I ndex/ price increases in 2010 Price increases prior years Lower interest rate level Price increases prior year Price increases prior year Price increases prior year I ndex/ price increases in 2011 I ndex/ price increases in 2012

Claims ratio Claims inflation

Capital Markets Day 2009 99

I m pact from interest rates 1% increase in interest level ≈ DKK 300m higher pre-tax result Sensitivity of interest rate changes

Discounting interest rate - 2 0 0 6 - 2 0 0 9

2% 3% 4% 5% 6% Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 "Flat interest rate"

• 844
• 673
• 334

329 971 1,286

• 3.0%
• 1.0%
• 4.0%

2.7% 2.1% 1.1%

• 1,000
• 500

500 1,000 1,500 1.0% 1.5% 2.5% 4.5% 6.5% 7.5%

I nterest rate level

Claims Pre-tax result

Change in com bined ratio

DKKm

Capital Markets Day 2009 100

Costs Cost ratio

16.6 16.0 15.4 15.2 15.2 0.4 0.8 1.3 1.5 1.5 0.6 2005 2006 2007 2008 2008* 17.0 16.8 16.7 17.3 16.7

Danmark & Norge Finland & Sweden

* Cost ratio excl. ”The Living House”

”The Living House”

Self-service Segm entation

Capital Markets Day 2009 101

3 .0 3 .5 3 .6 5 .0 1 .3 0 .8

• 2

2 4 6 8 10 2 0 0 7 2 0 0 8

• utlook

2 0 0 9 E- 2 0 1 0 E- 2 0 1 1 E- 2 0 1 2

Denmark & Norw ay Sw eden & Finland

4.4% 4.8% 8.0% E2010-2012 3-5%

Grow th outlook 2 0 1 0 -2 0 1 2

Full year effect from Moderna adds 1%

Macro uncertainty will reduce growth outlook

• volume

decline within workers’ compensation due to unemployment

• fewer

new cars sold, retention increase

• fewer

new houses

Growth in local currency Number of unemployed in Denmark and Norw ay

40,000 80,000 120,000 160,000 2003 2004 2005 2006 2007 2008 2009 Denmark Norway

%

Capital Markets Day 2009 102

New Markets – Balancing grow th and profit

Old plan – grow th focus

CR > 100

DKKm

Gross prem ium s Com bined ratio

322 543 500 1,000

1,500

2,000 2,500 3,000 3,500

2007 2008

• utlook

2009 E-2010 E-2011 E-2012 Sweden & Finland Moderna

1,568 7 8 .6 % 8 2 .1 %

0 .2 %

6 4 .5 % 4 4 .9 %

0 .3 % 1 27 % 1 43 %

0% 25% 50% 75% 100% 125% 150% 2007 2008

• utlook

2009 E-2010 E-2011 E-2012 Claims ratio Ceded business Expense ratio Combined Ratio

Capital Markets Day 2009 103

New Markets – significant earnings trigger

322 1,568 543

1,000 2,000 3,000

2007 2008

• utlook

2009 E 2010 E 2011 E 2012

New plan – profitability focus

• Changed

focus is expected to improve result by DKK 350m from 2007–E 2012

• Corresponding

to + 15% of 2008 technical result

• f TrygVesta Group
• ROE is expected to be

positive impacted by approx. 3%

• 200
• 100

100 200 300

2007 2008

• utlook

2009 E 2010 E 2011 E 2012

CR approaching 95

78.6% 82.1% 0.2% 64.5% 44.9% 0.3%

127% 143% 0% 25% 50% 75% 100% 125% 150% 2007 2008

• utlook

2009 E-2010 E-2011 E-2012 Claims ratio Ceded business Expense ratio Combined Ratio

Gross prem ium s Result

DKKm

DKKm

Capital Markets Day 2009 104

Sum m ary

Solid capital position and prepared for the future More transparent investm ent strategy going forw ard Strong take on im proving profitability in all m arkets Peace of m ind for investors

Capital Markets Day 2009 105

Questions please

Concluding rem arks Stine Bosse, CEO

Capital Markets Day 2009 107

Return on equity 2 0 1 0 -2 0 1 2

I nterest 5 .5 % - 7 % I nterest 1 % -3 % 24% 25% 25% 26% 27% 19% 19% 11% 17% 18% 4% 8% 12% 2% 5% 1% 1% 1% 23% 22% 9% 24% 36% 28% 21% 23% 24% 17% 18% 16% 11%

• 7%
• 10%
• 5%

0% 5% 10% 15% 20% 25% 30% 35% 40% 2004 2005 2006 2007 2008 Outlook 2009 E-2010 E-2011 E-2012 ROE after tax and including run-off ROE after tax including run-off at 2007 interest rate ROE (insurance) ROE (investments)

Capital Markets Day 2009 108

Sum m ary

Peace of m ind for investors Good financial perform ance Clear strategy, w ith four legs, w hich aim s at creating value for all stakeholders Prepared to m eet the opportunities and challenges of the future

Capital Markets Day 2009 109

Questions please Please visit www.trygvesta.com