Tryg A/S Ord New

Welcome to the TREK Internet Report for Q1 2023. For the first part of this call, all participants are in a listen-only mode. Afterwards, there will be a question-and-answer session. To ask a question, please press 5-star on your telephone keypad. This call is being recorded. Today, I'm pleased to present CEO Morten Hübe, CFO Barbara Plotnacht-Jepsen, and CCO Johan Kirstein-Bammer. Speakers, please begin.

Good morning, everybody. My name is Gianandrea Roberti. I'm a Head of Investor Relations at TREC. Just to recap, we published our Q1 results earlier this morning. And here with me, I have top management of the company, Morten Hube, our Group CEO, Barbara Pluckner-Jens, Group CFO, Johann Kirsten Brammer, Group CCO, and Mikkel Karsten, Group CTO. With these words, over to you, Morten.

Thank you, Jian. And we start our Q1 in the rather technical department, welcoming a new set of accounting standards, IFRS 17. Almost like Christmas Eve, this has been a change quite long in the making and it is now finally upon us. We published a newsletter all the way back in the spring of 2022 and a more comprehensive deck at the end of March this year with fully resated figures both for the group and for all business units. I hope that has been helpful for all of you in your modeling and preparation. I think we mentioned already previously that the new accounting standard would not have much of an impact on our figures, and we've shown that pre-tax, net profit, equity and dividends are all unchanged. Clearly, we benefit from the fact that we run a pure non-life business with a relatively short duration of the liabilities, and we've been using mark to market for both assets and liabilities for many years, unlike many, many insurance companies out there. In general, of course, the goal of the new accounting standard is to improve comparability across companies, something that has always been quite difficult in the sector. And then time will tell if that will indeed become a reality. On slide four, we report an insurance service result, one of the new jargon words for insurance technical results, of 1.474 million in Q1. That is an increase of 460 million or some 45% versus pro forma Q1 last year. And bear in mind that is of course a pro forma where we have added the acquired entities to the comparable number to compare apples and apples and still we see an increase of 45%. Now, clearly, One needs to understand that there are significant tailwind factors. We see a significant higher interest rate and we see that large claims and weather claims have been lower and more favorable than expected. And clearly that provides significant positive tailwind, while negative currency movement is a clear headwind. And Johan will comment more on this in detail. We see positively a driver of underlying claims, which improves 70 basis points for the group, while showing a modest deterioration for the private segment. Profitability initiatives in commercial and corporate has helped offsetting the private segment trend. And as we've been communicating for quite a while, it has been a clear part of our strategy to improve pricing, profitability and earnings in corporate and commercial. And we're seeing that happening. Investment result of 167 million, primarily helped by good equities return, fixed income returns, and both the free and match portfolio contributed positively. And then very pleased to announce that we pay a Q1 dividend per share of 1.85 kroner. That is an increase of 19% compared to first quarter last year, driven by the full consolidation of Kodan Norway and Troikanta, the synergies rolling in, and a strong solvency of 200 at the end of Q1. So very pleased to, at this point in time, be above the pre-acquisition dividend per share. On slide five, we report a customer satisfaction of 86, which is an improvement of one percentage point compared to last year. And we do know that there is a very strong link between customer satisfaction and the retention rate. And particularly in a period of price increases, that is very, very important. And we continue to have a strong focus in this area. In this slide, we've described various areas where we saw improvements, and I would also add that we see improvements in the customer satisfaction in our claims handling, where we see a much higher satisfaction. Particularly, we see that when customers use our straight-through processing in the new Guidewire system in both Denmark and Norway, that not only reduces the cost and handling process, it significantly increases the speed and the customer satisfaction with the claims handling. So we look forward to continuing and fulfilling our Guidewire project. So, Johan, over to you.