Tryg A/S Ord New

Good morning, everybody. My name is Gian Andrea Roberti. I'm a Head of Investor Relations at TREC. We published our Q3 results earlier this morning, and I have here with me Johan Brammer, Group CEO, Alan Tyson, Group CFO, and Michael Karsten, Group CTO, to present the figures. Before that, I would just like to remind everybody to ask one question at a time. And with these words, over to you, Johan.

Thanks for that, Gian, and I will turn straight to slide three on the financial highlights. And I'm pleased that the highlights show solid ISR numbers, solid combined ratio numbers, and solid dividend and solvency numbers. So let's dive in. Troik is reporting an insurance revenue growth of 3.9%, primarily driven by price increases across all segments. The private and the commercial combined, they grew more than 6%, while the corporate segment, as expected, reported a top-line fall broadly in line with previous quarters following our rebalancing strategy. The insurance service result was 2.13 billion, driven by the growth and improving underlying performance, and helped by large weather claims being approximately 650 million lower than in the corresponding quarter last year. Please note that this has been partly offset by a generally lower level of interest rates and a lower runoff result. RSA synergies were 58 million for the quarter and 864 million accumulated since the start of the integration. The combined ratio was 78.2 in the quarter, while the group underlying claims ratio improved 30 bps. Private lines, our most important segment, reported an underlying claims ratio deterioration of 20 basis points, slightly lower than the deterioration of 40 basis points reported in Q2, indicating that the private segment is gradually approaching stable levels. Motor remains a focus area as overall claims costs remain at a high level. The investment result was strong at 444 million, with both the free and the match portfolio reporting good performances, due to virtually all asset classes having positive returns. And please note that we have maintained our asset mix largely unchanged. To sum it up, the overall pre-tax result was just above 2.1 billion, resulting in an operating EPS of 2.89 and a roof of 42.1%. Trygg pays a dividend per share of 1,95 kroner in line with the previous quarters in 2024 and reports a very robust solvency ratio of 202. Turning to the next slide, we focus on the customer highlights for the quarter as we continue to see a clear link between customer satisfaction and retention and thereby, of course, our distribution costs and overall profitability levels. For this quarter, we are reporting a customer satisfaction score of 86, a similar level as in the same quarter last year and also Q2 this year. I'd like to highlight that we are pleased to see an improvement in the claims processes after having implemented Guidewire in Denmark and Norway. We do indeed see that our customers appreciate a more speedy and efficient claims handling. And although we have many initiatives to improve customer satisfaction going forward, it looks like we'll be challenged to reach the target of 88 at year end. But let's see. With that, I turn to page five on the ISR development across segments. We're showing in this slide the insurance service result reported by the different segments. And as usual, many factors are impacting the reported figures. As for the private segment, we are showing a significantly higher ISR driven by much lower weather claims and a higher runoff result. As for the commercial segment, we are showing a significantly higher ISR held by lower weather and last claims, partly offset by a lower runoff result. And finally, as for the corporate segment, we are reporting a lower ISR driven by lower premiums due to the before-mentioned strategic rebalancing and a lower runoff result, which is then partly offset by lower last claims compared to the corresponding period last year. Now, if we turn to the next slide, slide 6, where we show the insurance service results split by geographies. We are very pleased to report a good quarter across the board. Sweden comes in again with a very strong combined ratio of 73.1. Denmark checks in at 78.5 and Norway arrives at 85.1. Obviously, as you all know, Q3 is supposed to be a good quarter across our business, but I am pleased to notice our Norwegian combined ratio starting to reflect a more appropriate level of profitability following significant price increases. The plan for Norway is on track and the medicine is working according to plan. More importantly, looking at the ISR bridge for the group on the right-hand side, we notice a very large positive difference of approximately 650 million in large and weather claims performance this particular quarter against same quarter last year, partly offset by a generally lower level of interest rates and a lower runoff result. Currency movements had little impact this quarter. Interest rates are down approximately 100 basis points against Q3 last year, and please note that this has a material impact on our combined ratio of around 1%, all else being equal. Now let's turn to slide 7, where we are illustrating the progress on the RSA synergies. As mentioned in previous quarters, most of the synergy drivers are not new, but still producing ongoing impact. We've added a total of 58 million in Q3 2024, which brings us to a total of 864 million since the start of the integration, closing in on our target of 900 million for the full year. Procurement in this quarter contributes with 17 million and continue to be driven primarily by our stronger consolidated purchasing power. As for the claim synergies, these are 19 million and are primarily driven by the optimization of fraud. And finally, as for the commercial synergies, they were 16 million and continue to be driven by improved relations with brokers, but also partnerships in the private business. And with this, I turn to the next section on the insurance revenue and portfolio developments and ask you to move on to page 9. TOEIC is reporting an insurance revenue growth of 3.9% in Q3, similar to the level for Q2 this year. The growth is fully driven by the private and commercial segment, while the corporate segment, as expected, is reporting a declining revenue in line with recent quarters and in line with the communicated strategy of improving profitability and rebalancing the portfolio. The growth in private and commercial continues to be driven by price increases to offset general inflationary pressures and this slightly higher frequency and average claims level in motor. We'll get back to that. The corporate segment is, as expected, continuing to report a revenue decline driven by profitability actions and the rebalancing initiatives to achieve a smaller, more local and more controllable book of business. Please bear in mind that the development for corporate is primarily driven by the renewal of the corporate book 1st of January this year. We continue to be very firm to mitigate inflationary pressures and hence continue to implement further initiatives to improve profitability for particularly private Norway. Turning to the next slide, we are on page 10 showing the rate increases for the private segments for both property and motor. We repeat that we are pricing according to inflation for both property and motor in all countries. In Norway, we are actually pricing even higher than inflation in order to improve profitability and we see an accelerating level of price increases. Zooming in on Norway, the chart shows that year-to-date we carried through around 13% price increases for motor in order to mitigate inflation and improve profitability. In addition to price adjustments, we have also increased deductibles, which will also support improved profitability levels going forward. On the next slide, on customer retention, we are pleased to continue to report broadly stable customer retention levels, even in a period with elevated price increases. And in general, the development is stable with very small drops in some areas and even slightly improved retention for commercial Norway. In general, looking at longer time series, it is evident how our business continues to show a relatively low price sensitivity across different economic conditions. And I guess with that, I'll turn it over to you, Micke, to take us through the next section on claims development.

Thanks, Johan. And with that, we turn to slide 13. In this slide, we comment on the group underlying claims ratio that improved by 30 basis points in Q3, slightly lower than the 40 basis points we had in Q2. And this was supported by profitability initiatives across all segments. The private underlying claims ratio deteriorated by 20 basis points in the quarter, a more modest deterioration than in Q2, where the corresponding number was 40 basis points. And this is primarily driven by increases in motor average claims and a slight increase in motor frequencies. The Q3 development in both average claims and claims frequency was fully in line with our expectations. We also note that we experience a somewhat better Scandi claims frequency development than, for instance, what Danish external statistic implies. It's important to remember that 20 basis points is equivalent to 13 million in a quarter, implying broad margin stability. We continue to expect an underlying claims ratio improvement for the full year 2024, ensuring the delivery of the 2024 financial targets and beyond. We also reiterate that the composition of the profitability improvement will change over time to be more driven by the private segment as rates and profitability actions get full earnings impact. And with that, I turn to slide 14. In this slide, as usual, we comment on the level of large and weather claims, as well as the discounting rate and runoff results. Large claims were very low this quarter, while weather claims were broadly in line with expectations and also included approximately 20 million Danish amount coming from adjustments to Q2. Year to date, large claims are now below normalized level, while weather claims are slightly above guidance. The discount rate was 2.2%, down some 20 basis points from Q2 and just over 100 basis points from Q3 last year. It's important to remember that we use an average discount rate in the period. Taking the September level in isolation, the discount rate would have been closer to 2.0%. The runoff result was 2.4% in Q3 and 3.0% year-to-date, in line with our guided range between 3 and 5% for 2024. And with that, I hand over to you, Gian.