Tryg’s Supervisory Board has today approved the interim report for Q2 and H1 2014. Improvement in Tryg’s performance Substantial improvement in performance and enhanced development trend in premium income. Results are positively impacted by one-off effects, reflected in a low expense ratio. The efficiency programme also shows consistent progress. Financial highlights for Q2 2014 -- Profit before tax of
DKK 1,150m( DKK 688m). -- Technical result of DKK 941m( DKK 684m). -- Combined ratio improved by 6.0 percentage points to 80.7 (86.7). -- 1.2% (-2.6%) decline in premium income – but enhanced development trend. -- Expense ratio of 12.6 (15.6) positively impacted by one-off effects of DKK 135m. -- Investment return of DKK 259m( DKK 13m) boosted by positive financial markets. -- Return on equity of 32.1% (18.7%) p.a. after tax. Financial highlights for H1 2014 -- Profit before tax of DKK 1,752m( DKK 1,447m). -- Technical result of DKK 1,464m( DKK 1,184m). -- Combined ratio improved by 3.7 percentage points to 84.9 (88.6). -- 1.6% (-2.5%) decline in premium income – but enhanced development trend. -- Expense ratio of 14.2 (15.8) positively impacted by one-off effects of DKK 135m. -- Investment return of DKK 348m( DKK 282m) boosted by positive financial markets. -- Return on equity of 24.5% (20.4%) p.a. after tax. Statement by Group CEO Morten HÜbbe: The improved results for Q2 show that our efficiency measures are working. We improved the combined ratio and, even when disregarding the extraordinary one-off effects, achieved a lower expense ratio. This is strengthening our competitiveness and creating a sound basis for our continued efforts to provide peace of mind and value for our customers, employees and shareholders. At the same time, we see an improvement in premium development, however, there is still some way to go before this will translate into top-line growth. We are very pleased with the positive developments and trends seen in several areas. After a period of decline, Private Norway is attracting increasing customer numbers, while the trend is also improving in Private Denmark. At the same time, both Denmarkand Norwayare realising improved customer renewal figures in the Commercial segment. Our customers must feel confident about their choice of Trygevery time they are in contact with us. We have therefore launched a number of initiatives under the heading ‘Customer journey & success culture’, including, for example, extended opening hours, sms-based customer surveys and training programmes for both managers and employees designed to ensure a strong customer focus in everything we do. Results for Q2 were negatively impacted by one-off expenses in connection with the current change of IT provider based on a need to ensure increased operational stability during the transitional phase for the benefit of both customers and employees. In addition, cost levels were positively affected by a new pension agreement for Tryg’s employees in Norway. Under the new agreement, several years of inappropriately high levels of tied-up capital have been replaced by a far more stable scheme. Conference call Tryghosts a conference call on the day of the release at 9:30 CET. CEO Morten HÜbbeand CFO Tor Magne LØnnum will present the results in brief followed by a Q&A session. The conference call will be held in English. Conference call details: Danish participants: +45 35 44 55 83 UKparticipants: +44 (0) 203 194 0544 US participants: +1 855 269 2604 Additional information: For further information, please contact: -- Investor Relations Director Lars MØlleron +45 22 66 66 05 or firstname.lastname@example.org -- Investor Relations Manager Peter Brondton +45 22 75 89 04 or email@example.com -- Communication Manager Kasper Riison +45 41 77 68 34 or firstname.lastname@example.org Copyright © 2014 OMX AB (publ).