Tryg A/S Ord New

My name is Gianandrea Roberti. I'm a head of financial reporting at TREC. We published our full year figures earlier this morning, and I have here with me Johan Brammer, our Group CEO, Allan Theisen, our Group CFO, and Mikael Schersten, our Group CTO, to present the report. And with these words, over to you, Johan.

Thanks a lot, Gian, and good morning from me as well. This is a good day, and I'll ask you to go to the financial highlights, the first slide of the deck. SROEK is today reporting an insurance service result of 1.918 billion in Q4, driven by an excellent combined ratio of 81.4%. The result is delivered through a top-line growth of 4.1%, driven by increased commercial activities, as well as profitability measures, especially in Norway. In addition, and this is important, the result is also held by a favorable large and weather claims experience, despite the storm aiming in Norway. This is an example of the benefit we get from being a well-diversified company with three strong market positions across Scandinavia. The underlying performance continues to develop positively, much in line with recent quarters, and more specifically, the underlying claims ratio improves with 30 basis points for both the group and for the private segment in Q4. The investment result is 171 million, held by good returns on the free, but also especially the match portfolio. And more importantly, as flagged in the Q3 report, we divested more than 500 million extra properties in Q4, and we can today report that our property exposure is down to 2.3 billion, down by 1 billion from the end of 2024. To sum it up, the pre-tax result is just above 1.7 billion, the return on loan funds for the quarter is just below 37%, and we are paying a quarterly dividend of 2.05 DKK per share, in line, of course, with the previous quarters in 2024-05. In addition, and this is also important, we are today launching a buyback of 1 billion DKK on the back of a set of very robust full-year numbers and a very comfortable solvency position. The solvency ratio at year-end is 196, already deducting the dividends and the announced buyback. However, please remember that the solvency ratio of 196 is elevated by three points due to the temporary debt financing impact that will disappear in Q1. With that, let's move to the next slide on customer highlights. As you know, we have a target of 83 set for next year, 2027, and we're pleased that by Q4 last year, we were already at 82, as customer satisfaction is and remains paramount for an insurance company, especially in volatile times like the current ones. The recent improvement in our numbers come primarily from our online customer touchpoints. And in addition, the rollout of a new payment solution in commercial Sweden has been supportive of the higher customer satisfaction in that particular segment. With that, let's turn to the next slide where we show the group ISR split by segment. And as always, the reported figures may be impacted by volatile items such as large and weather claims and the general runoff pattern, of course. The private segment shows a higher ISR driven by growth in premiums and improved underlying performance and lower weather claims. And within private, we note a particularly strong performance in Norway, which we'll return to later in this presentation. As for the commercial segment, it shows an ISR that is slightly higher driven by moderate premiums growth and improved underlying performance, however, partly offset by a modestly lower runoff. With that, let's turn to the next slide where we illustrate the ISR performance by geography. The Danish combined ratio is worsened by approximately 400 basis points driving a lower ISR naturally. The underlying performance is actually very stable as the Q4 numbers are impacted by two discrete issues. Firstly, half of the deterioration in the combined ratio comes from a spike in the quarterly expenses due to periodization of higher IT development costs. Secondly, a number of large claims also impacts the Danish combined ratio. When adjusting for these factors, the performance is broadly stable and gives absolutely no cause for concern. Zero. And to reinforce this point, the full year combined ratio for the Danish business in 2025 is 82.4 against 81.8 in 2024 on more than 18 billion revenues. That is stable indeed. As for Norway, we are presenting for Q4 a sharp improvement, even including the storm Amy. And we are obviously very satisfied to see that our profitability efforts in our Norwegian business are paying off. And when it comes to Sweden, we continue to report very robust figures, despite slight impacts on the storm Johannes. In general, the business, due to its premiums mix and due to its large PAA book, is less sensitive to potential winter and summer profitability swings. As usual, on the right-hand side, we are showing the group ISR walk, and I am very pleased to see that the walk is characterized predominantly by a number of positive and green categories, while the only negative drags are the slightly lower runoff in a quarter where reported insurance earnings are very strong and the modestly higher cost due to primarily the periodization I mentioned before. With that, we are now moving into the first slide in the revenue growth section. TOEIC is reporting a growth of 4.1%, primarily driven by the private segment that grows more than 5%, while the growth in the commercial segment is more muted. It is worth noting that the growth year-on-year on a group level is up from 3.6% in Q4 2024. It's also important to remember that our key focus since mid-2022 has been to protect margins in order to mitigate the sudden and large inflation hike, and for 2025, Price increases were predominantly focused towards our Norwegian business, where we had to improve profitability significantly. We're now entering 2026 in a very robust position and therefore we are shifting our efforts towards more commercial activities that will improve our top line in a profitable manner in the longer term. As mentioned before, we strive towards a sustainable and balanced development driven by both pricing, upselling and cross-selling. With that, let's turn to the next slide on customer retention. In general, we observe flatties to slightly improving retention levels in the private segment, while these are slightly deteriorating in the commercial segment still. We are in particular pleased to see retention levels stabilizing in private Denmark, as this segment represents around 30% of group revenues. In general, after a period of price increases as we've been through, it's natural to experience a small drop in retention. And as we are now seeing the trend stabilizing or even slightly improving in the private segment, we do expect a similar bounce back in the commercial segment going forward. We are very focused on our customer offering and value proposition, and this focus will increase further during 2026 to ensure customer loyalty going forward. With that, let's turn to the next slide where we comment specifically on Norway as we have done for the last few quarters. We are reporting a combined ratio for Q4 Norway of 87.1, while the full year number is 86.8. It is obvious that 2025 has seen more benign weather in Norway compared to 2024, which is of course supportive of the result. But in general, our underlying performance has improved significantly and clearly. In general, due to the mix of our Norwegian business with 40% being motor and due to selected important partner agreements, we believe a sustainable combined ratio in the mid-80s will serve us well in Norway. This is broadly speaking where we expect to be in 2027 and longer term. I'll wrap up this slide on Norway by reminding you that the combined ratio by quarter in Norway will always be more volatile due to the weather patterns in the country and the often harsh winter weather.

And with that, I'll turn it over to you, Mikael. Thanks, Johan, and good morning from me as well. As per the past quarters, we report an improved underlying claims ratio for the group and the private segment of 30 basis points. The improvement mainly stems from the development in our Norwegian operations, where restoring profitability is one of our key priorities. As Johan stated, we have taken significant steps in that journey and we are very comfortable around future profitability levels. The development remains very anchored to what we communicated at the Capital Markets Day at the end of 2024, where we stated that the underlying claims ratio is expected to be broadly stable to slightly improving towards 2027. Turning to page 14, where we, as normal, show you the quarterly development of large and weather claims, discounting levels and run-offs. From a large claim perspective, Q4 saw large claims coming in at 150 million, below our quarterly guided level of 200 million. It's of course good to see that large claims for a second year in a row in total is below our expected annual levels, but large claims is a volatile item and over time we expect it to fluctuate around the 800 million. Weather claims summed up to be 174 million, below our guided Q4 level of 240 million. This is despite the weather events Amy hitting Norway in October and Johannes hitting Sweden and Norway in the end of December. Apart from these events, the quarter was favorable and the 174 million weather claims also included a small positive adjustment to weather events earlier in the year. I remind everyone that we expect seasonal weather event patterns, where in particular Q4 and Q1 are the quarters with the highest weather exposure. We are naturally also happy to see the full-year weather claims coming in below our annual guided level, after two years of being above. But similar to large claims, this is a stochastic element where some volatility is to be expected. Regarding the discount rate, this was stable at 2.4%, in line with the Q3 level. Please remember that the discount rate is a function of the interest rate environment, but also the claims mix of our business. Both of these factors impact the discount rate. Finally, the runoff result was 2.1% in a benign quarter in terms of large and weather claims experience. We have stated at our capital markets day that we expect a runoff result around 2% towards 2027, and this remains very firm. And with this, I hand it over to you, Gian.