Tryg A/S Ord New

Good morning, everybody. My name is Gian Andrea Roberti. I'm a head of financial reporting at TREC. We published our Q1 figures earlier this morning, and I have here with me Johan Brammer, our Group CEO, Alan Tyson, our Group CFO, and Mikkel Schersten, our Group CTO, to present the numbers. With these few words, over to you, Johan.

Thanks a lot, Gian, and a very good morning from me as well. This is a good day, and I will go straight to the first section of the presentation. Well, I'll start by commenting on the financial highlights as usual, as well as comment a bit on the revenue development. So, TOEIC reports a premiums growth of 3.5%, primarily driven by the private segment, and in particular by our Norwegian business, whereas the commercial segment reports a lower growth, also following a challenging first-of-gen renewal. The insurance service result was a strong 1.655 billion DKK, driven by a strong combined ratio of 84%. The group underlying claims ratio improved by 45%, showing an improvement compared to recent trends. This is primarily driven by profitability initiatives in Norway. The investment result was 2 million GKK positive in a quarter that experienced the return of sharp volatility in capital markets following high geopolitical tensions in the Middle East. Equities dropped, Corporate spreads widened and interest rates moved upwards following changes to inflation expectations. But as a reminder, we have a very conservative asset mix made up primarily by Danish and Scandinavian covered bonds. We have no equities. I repeat, we have no equities in the mix, and hence we did well in the midst of the storm. The pre-tax result was 1.276 billion. Operating EPS was 1.85, and the return on owned funds was 28.6%. Finally, TREC pays a Q1 dividend per share of 2.15 DKK and reports a solvency ratio of 192, supportive of future capital repatriations. And before I end my initial comments, I would like to add that we monitor closely, of course, the developments in the Middle East tensions and the potential spillover on the global economies and specifically inflation. The situation remains very volatile, and upon looking at our book, it is primarily the motor and property liabilities that are exposed to inflation in wave one. With that, I'm mainly referring to inflation on goods and spare parts and not so much on salary inflation. We remain very alert, but also remain confident in our ability to price risks correctly and steer through any scenario we'll face. With that, we are now turning to the next slide on customer highlights. The customer satisfaction score for Q1 was 82, coming from 81 at the end of 2024, and against the target of 83 for next year. The higher satisfaction has been driven by improved online features that resulted in a better customer experience. Additionally, the new contact center platform called Puzzle is gradually being implemented successfully across the group, and we noted improved customer satisfaction linked to this in particular at Elka and Svakanta. Now let's move to the next slide where we take a look at the ISR by segments. Please remember that a lot of moving items such as large in weather claims, interest rate movements, and runoff do of course impact the ISR on a reported basis. The private business reported a higher ISR driven by good growth and improved underlying performance together with a higher runoff, which was then partly offset by large in weather claims together being higher than in Q1 2025, despite remaining lower than normal. The commercial segment reported lower ISR driven by a muted topline growth, higher large and weather claims together, and lower runoff result, while an improved underlying performance was noticeable. In the next slide, we illustrate the bridge of the performance from Q1 last year to Q1 this year, and take a quick look at the performance by geography. If we just start with the bridge on the right-hand side of the slide, the result this quarter was improved by the premiums growth, particularly in the private lines, and improved underlying performance, a higher runoff, and positive currency developments. Whereas on the negative side, high large and weather claims taken together were recorded, although, and I repeat that although, these were still below normal levels. On the left-hand side, the ISR by geography saw a positive development across all countries. As mentioned before, a lot of moving parts can impact the reported figures. However, we do notice a continuous positive development and an improved combined ratio across the board. That's important. On the next slide, we zoom in on our Norwegian performance that continues to show improvements. It's important to remember that Q1 is by far the more complicated quarter of the year in Norway due to often challenging winter weather. Nevertheless, Q1 2026 was the best Q1 in the last eight years, continuing the improvements seen in the last 18 months or so. The combined ratio for the quarter was 93.7. As mentioned previously, price increases are expected to be lower starting from the spring, but we remain very vigilant to protect profitability should inflation become visible again, as discussed before with reference to the Middle East tensions. As for the composition of our book, Motor represents a bigger share of our revenues in Norway, around 40%, compared to the group just above 30%, and therefore our attention here is, of course, at the highest level. With that, we turn to the next section and the first slide of the insurance revenue section. In this first slide, we illustrate that the group premium's growth was 3.5% in local currencies, a level similar to recent quarters. As for the private segment, it grew nicely above 5%, while the commercial segment growth was more muted. The growth in the private segment is still primarily driven by price increases, mainly in our Norwegian segment, although we are also seeing commercial activities starting to pay off, especially in Sweden. As for the commercial segment, it continued to focus on SME, while some customers exited in the corporate part of the 1st of Jan renewal, We do expect the group top line development to improve slightly and gradually in the second half of 2026 and onwards, both in absolute terms, but also with a more sustainable composition. Obviously, the precise timing of this is also linked to the current Middle East tensions and potential inflation spillover. With that, let's turn to the next slide on customer retention. When looking at the retention levels, we notice a general improvement in the private segment, while pressure remains in the commercial segment. Our experiences from the past show us that it takes a little while before the following periods of price increases, the retention stabilizes and bounces back. We've now achieved that balance in the private lines, and we expect to do so in the commercial lines during 2026. It is noteworthy in this context to mention that our main shareholder, Troikhusgruppen, has just announced its customer bonus of 7%. It was 6% last year to Danish customers. I mentioned this here as we believe this is helpful in terms of retention going forward. And I guess with that, I'll turn it over to you, Mikko.

Thanks, Johan, and good morning from me as well. The underlying claims ratio improved 40 basis points, both for the group and the private segment in Q1. And this is an improvement compared to the most recent quarters, showing that profitability measures, especially in Norway, are paying off. Stability remains paramount for us. And as we have been mentioning at the Capital Markets Day, we do expect the underlying claims ratio to remain broadly stable to slightly improving towards 2027. And this remains unchanged today. Turning to slide 14. We are here showing the development of the most volatile items, large and weather claims, the runoff result, and the overall level of interest rates that we used to discount the claims results. Large claims were above normal in Q1, while weather claims were well below normal level during this quarter. Q1 held a couple of large commercial claims, in particular in Sweden. while weather claims were low despite snow and colder weather than normal that affected Denmark and southern Sweden in the quarter. The runoff result was fairly stable at 2.5% and in line with recent experience and our guidance of a runoff around 2% towards 2027. Finally, the discount rate was 2.4%, unchanged from Q4. And please remember that this is an average of the three months, and it's also a function of both interest rates levels and the claims mix. And with this, I hand it over to you, GM. Thanks, Nike. We are now moving into the investment section of the presentation. At the end of Q1, total invested assets were 62 billion, with the matched portfolio being approximately $48 billion and the free portfolio $14 billion. The asset mix is completely unchanged, also in light of the fact that properties exposure has remained stable in Q1 versus the end of 2025. If you look at the actual investment results in the quarter, it was $2 million. As Johann mentioned, it was a quarter characterized by high volatility following renewed Middle East tensions. Equities dropped, corporate bond spreads widened, and interest rates moved upwards. Against this backdrop, we were quite happy about our very conservative asset mix, and pleased to report a modestly positive investment result. The free portfolio posted a return close to zero, the matched portfolio returned 76 million, while our differential was slightly negative 69 million, a little bit better than normal. All in all, the current asset mix is confirming downside protection at the time of high volatility, and this is what we were looking for when we did the change to the asset mix. With this, over to you, Alan.