Annual report 2022
As the world changes,
we make it easier to be tryg
Tryg A/S · Klausdalsbrovej 601, 2750 Ballerup, Denmark · CVR no. 26460212
Contents
Management’s review
Highlights 03
Tryg at a glance 05
Business areas 06
Income overview 07
Introduction by Chairman and Group CEO 09
Events in 2022 11
Financial outlook 13
Targets and strategy 15
Strategic initiatives 17
Business initiatives 18
Tryg’s results 20
Private 25
Commercial 27
Corporate 29
Investment activities 31
Capital and risk management 33
ESG & Sustainability 37
Investor information 43
Corporate governance 45
Supervisory Board 49
Executive Board 53
Financial statements
Financial statements 54
Group chart 128
Glossary 129
Product overview 131
05
43
09
13
Tryg at
a glance
Investor information
Introduction by
Chairman and
Group CEO
Financial
outlook
Tryg aims to pay a nominal, stable
and increasing ordinary dividend, while
maintaining stable results and a high
level of return on capital employed
Shareholder remuneration
(DKK per share)
2018 2019 2020 2021* 2022
in millions
(DKK)
Buyback
Comlpeted Remaning
Ordinary dividend Extraordinary
dividend
1.65
6.8
1.786
5,000
3.214
6.6
7.0
4.28
6.29
* Calculated on the new 654m number of shares
following the DKK 37bn rights issue to fund the
RSA Scandinavia acquisition
Annual report 2022 | Tryg A/S | 2
Highlights 2022
Financial 2022 Financial Q4 2022*
6.7% 14.30.8
1,689m
1.60 201
317m
1,377m
82.16,177m
5.9%
82.2
14.1
Premium growth
in local currencies,
based on to pro-forma
figures
Combined ratio
2021: 84.5
Expense ratio
2021: 14.1
-1,193m 3,051m
Total investment
return (DKK)
2021: 870m
Profit before tax
(DKK)
2021: 3,956m
2016.29
Solvency ratio
2021: 188
Dividend per share
(DKK)
2021: 4.28
Combined ratio
Q4 2021: 84.1
Technical result
(DKK)
2021: 3,709m
Premium growth
in local currencies
Expense ratio
Q4 2021: 14.6
Group underly-
ing claims ratio
improvements
percentage points
Q4 2021: 0.8
Technical result
(DKK)
Q4 2021: 1,380m
Dividend per share
(DKK)
Q4 2021: 1.07
Solvency ratio
Q4 2021: 188
Total investment
return (DKK)
Q4 2021: 803m
Profit before tax
(DKK)
Q4 2021: 1,458m
* The comparison figures for Q4 2021 related to technical result are pro-forma disclosed in June.
3
Management’s review - Contents
Annual report 2022 | Tryg A/S |
Highlights 2022 (continued)
New reporting structure
Private Q4 2022 Q4 pro-forma 2021 Q4 reported 2021
Gross premium income 5,847 5,622 3,840
Technical result 1,073 997 681
Claims ratio 69.2 69.3 70.1
Expense ratio 13.1 12.9 12.1
Combined ratio 82.4 82.2 82.2
Commercial Q4 2022 Q4 pro-forma 2021 Q4 reported 2021
Gross premium income 2,292 2,264 1,352
Technical result 452 347 109
Claims ratio 64.4 65.2 72.2
Expense ratio 16.7 19.4 19.7
Combined ratio 81.1 84.6 91.9
Corporate Q4 2022 Q4 pro-forma 2021 Q4 reported 2021
Gross premium income 903 850 850
Technical result 164 36 36
Claims ratio 67.1 82.0 82.0
Expense ratio 15.5 13.7 13.7
Combined ratio 82.7 95.7 95.7
* Pro-forma figures from Q2 2021 to Q1 2022 have been published on tryg.com to improve comparability.
Pro-forma figures are shown including full consolidation of Codan Norway and Trygg-Hansa
In Q2 2022, Tryg started to fully consolidate
Codan Norway and Trygg-Hansa. These
businesses have been merged into the overall
Private and Commercial organisations and
reporting structure. Tryg is reporting its results
through three divisions: Private, Commer-
cial and Corporate, this is unchanged from
previous practice. The old Sweden segment
where Moderna Private was reported has been
merged into the Private segment. Tryg has
been producing pro-forma* numbers for the
enlarged Group from Q2 2021 to Q1 2022 to
help comparability, these have been published
on tryg.com. Tryg will also continue to publish
the results by geographies in the notes of each
quarterly report, with Denmark, Norway and
Sweden primarily shown here. Codan Norway
and Trygg-Hansa will also flow into the respec-
tive geographical results.
Annual report 2022 | Tryg A/S | 4
Management’s review - Contents
Tryg aims to distribute a
stable, nominal increase
in dividends and to pay
out 60-90% of operating
earnings.
Attractive
dividend policy
Strong market position
Tryg is the largest non-life insurer in Scandina-
via. We are the largest player in Denmark and
the third largest in Sweden. In Norway, we are
the fourth-largest company in the market.
Our 7,000 employees provide peace of mind
for 5.3 million customers and handle approxi-
mately 1.5 million claims on a yearly basis.
5.3 million customers
Trygheds-
Gruppen
TryghedsGruppen owns
46.5%** of Tryg and
contribu tes to projects that
create peace of mind via
TrygFonden. In 2022, Tryg-
Fonden has contributed up
to DKK 650m and paid a
member bonus of 1.2bn to
Danish customers in Tryg.
Low risk
portfolio
* ‘Tryg’ means feeling protected and cared for.
** Calculated excluding Tryg's own shares
Tryg at a glance
As the world changes, we
make it easier to be tryg*
Read more about our history at tryg.com
1
Market position
3
Market position
4
Market position
22.4%
Market share
17.3%
Market share
14.7%
Market share
Norway
Sweden
Denmark
Private
Commercial
Retail
Corporate
Annual report 2022 | Tryg A/S | 5
Management’s review - Contents
Business areas
Private Commercial Corporate
Private provides insurance products to private
customers in Denmark, Sweden and Norway.
Private offers a range of insurance products
including motor, content, house, accident, travel,
motorcycles, pet and health.
Commercial provides insurance products includ-
ing motor, property, liability, workers’ compensa-
tion, travel and health to small and medium-sized
business in Denmark, Sweden and Norway.
Corporate provides insurance products includ-
ing property, liability, workers’ compensation,
transport, group life etc. to corporate customers
under the brand Tryg in Denmark and Norway,
and Trygg-Hansa in Sweden. Tryg has a cooper-
ative agreement with the global RSA network for
international customers.
65% 10%25%
of premiums of premiumsof premiums
Distribution channels* Distribution channels Distribution channels
BrandsBrands Brands
Own sales agents • Call centres •
Real estate agents • Online • Bancassurance •
Car dealers • Franchises • Partner
Call centres • Online • Bancassurance •
Own sales agents • Franchises•
Partner
Own sales agents •
Insurance brokers
* Not exhaustive
Annual report 2022 | Tryg A/S | 6
Management’s review - Contents
Income overview
DKKm Q4 2022
Q4 pro-forma
2021
Q4 reported
2021 2022 2021 2020 2019 2018
Gross premium income 9,042 8,735 6,041 33,938 24,137 22,653 21,741 18,740
Gross claims -5,975 -5,837 -4,229 -22,407 -16,275 -15,437 -14,857 -12,636
Total insurance operating costs -1,292 -1,280 -847 -4,783 -3,394 -3,202 -3,081 -2,704
Profit/loss on gross business 1,775 1,619 966 6,748 4,468 4,014 3,803 3,400
Profit/loss on ceded business -155 -233 -135 -723 -731 -499 -566 -624
Insurance technical interest, net of reinsurance 69 -5 -5 152 -29 -20 1 -10
Technical result 1,689 1,380 826 6,177 3,709 3,495 3,237 2,766
Income from RSA Scandinavia
a)
-19 568 34 1,206 0 0 0
Currency hedge related to RSA Scandinavia 0 0 0 -1,035 0 0 0
Tryg stand-alone Investment return 336 235 -1,227 699 311 579 -332
Investment return after insurance technical interest 317 803 -1,193 870 311 579 -332
Other income and costs -629 -171 -1,933 -624 -265 -188 -172
Profit/loss before tax 1,377 1,458 3,051 3,956 3,541 3,628 2,262
Tax -296 -85 -804 -795 -768 -783 -529
Profit/loss on continuing business 1,081 1,373 2,247 3,161 2,773 2,845 1,733
Profit/loss onsiscontinued and divested business after tax 0 -3 0 -3 0 -2 -2
Profit/loss 1,081 1,370 2,247 3,158 2,773 2,843 1,731
Run-off gains/losses, net of reinsurance 362 232 1,380 963 1,145 1,194 1,221
Key figures
Total equity 42,504 49,008 42,504 49,008 12,264 12,085 11,334
Return on equity after tax (%)
b)
9.5 18.0 4.9 7.8 22.5 24.6 14.9
Return on own funds (%) 27.0 40.0 13.0 23.0 32.6 35.1 16.3
Return on tangible equity (%) 30.8 37.5 7.8 16.1 55.4 62.5 21.2
Number of shares 31 December (1,000) 633,710 653,447 633,710 653,447 301,750 301,750 301,743
Earnings per share (DKK) 1.69 2.10 3.47 5.51 9.19 9.42 5.73
Operating earnings per share (DKK)
c)
2.00 2.14 4.43 5.70 9.54 9.82 5.84
Net asset value per share (DKK 67.07 75.00 40.64 40.05 37.56
Ordinary dividend per share (DKK) 1.60 1.07 6.29 4.28 7.00 6.80 6.60
Extraordinary dividend per share (DKK) 0.00 0.00 0.00 1.65 0.00
Premium growth in local currencies 6.7
d)
2.6 5.9
d)
4.9 7.0 17.1 6.3
Gross claims ratio 66.1 66.8 70.0 66.0 67.4 68.1 68.3 67.4
Net reinsurance ratio 1.7 2.7 2.2 2.1 3.0 2.2 2.6 3.3
Claims ratio, net of ceded business 67.8 69.5 72.2 68.2 70.5 70.3 70.9 70.7
Gross expense ratio 14.3 14.6 14.0 14.1 14.1 14.1 14.2 14.4
Combined ratio 82.1 84.1 86.2 82.2 84.5 84.5 85.1 85.1
Run-off, net of reinsurance (%) -4.0 -2.5 -3.8 -4.1 -4.0 -5.1 -5.5 -6.5
Large claims, net of reinsurance (%) 3.2 2.2 2.7 3.4 1.8 2.2 2.1 2.6
Weather claims, net of reinsurance (%) 2.3 1.0 2.0 1.7 1.9 1.6 1.9 2.0
Discounting (%) 3.0 0.9 0.7 2.2 0.5 0.2 0.7 1.0
COVID-19 claims, net of reinsurance (%) 0.0 -0.3 0.0 0.0 -0.5 -0.8 0.0 0.0
Combined ratio on business areas
Private 82.4 82.2 82.2 83.0 83.7 83.8 83.9 82.2
Commercial 81.1 84.6 91.9 80.5 83.8 83.7 83.8 78.2
Corporate 82.7 95.7 95.7 81.4 89.4 89.4 87.6 95.6
a)
Tryg's acquisition of RSA Scandinavia includes also the net effect from demerger and sale of Codan Denmark and impacts the Financial Statements from 1 June 2021
b)
ROE is calculated as Profit for the year after tax divided by the weighted average equity (as prescribed by the Danish FSA). From 1 April 2022 this included Trygg-Hansa and Codan Norway
c)
Adjusted for depreciation on intangible assets related to Brands and Customer relations after tax
d)
Based on pro-forma figures
How to read this annual report
Tryg started to fully consolidate Codan Nor-
way and Trygg-Hansa from Q2 2022, there-
fore the FY technical result only includes
nine months of the acquired businesses.
In June 2022, Tryg published pro-forma
figures for the period Q2 2021 to Q1 2022
with the new businesses fully consolidated,
the Q4 2021 pro-forma column is shown to
provide comparability.
The third column shows the reported
Q4 2021 results. At that time, the new
businesses were equity accounted, which
means the net profit for the quarter for the
new businesses was included in the overall
investment result.
Throughout the annual report, Q4 com-
parison figures related to the insurance
business are pro-forma. Additionally, FY
comparison figures for premiums growth
are also pro-forma.
Tryg reported a FY 2022 technical result of
DKK 6,177m, which includes the new busi-
nesses for nine months (Q2 to Q4 2022).
The overall investment result of DKK
-1,193m was primarily driven by a very
difficult year for capital markets with
extremely volatile equity markets as well as
increasing interest rates.
Tryg is paying a FY DPS of 6.29, a 46%
increase compared to 2021, driven by the
full inclusion of the new businesses for nine
months and an initial delivery of synergies.
The solvency ratio was 201 at the end of
the year, a robust level for the start of a new
journey.
Annual report 2022 | Tryg A/S | 7
Management’s review - Contents
RSA Scandinavia’s impact on
Tryg’s income statement
20222021
RSA Scandinavia
equity account
Fully consolidated figures
Full year report 2022
Codan Norway and Trygg-Hansa were equity accounted and therefore the net profit for the quarter was included in the
overall investment result. The group technical result rom 1 June 2021 to Q1 2022 includes only Tryg stand-alone
Codan Norway and Trygg-Hansa were fully consolidated thus included in the group’s technical result. The
figures were consolidated for 9 months (Q2 to Q4 2022). In June 2022, Tryg published pro-forma figures for
the quarters in 2021.
Tryg reported a FY 2022 technical result of DKK 6,177m. The result includes Codan Norway and Trygg-Hansa
from Q2 to Q4 2022 whilst Q1 2022 was Tryg stand-alone. FY 2022 is therefore not comparable to FY 2021
Q1 Q2Q2 Q3Q3 Q4Q4
Annual report 2022 | Tryg A/S | 8
Management’s review - Contents
Strong results in
our first year as
the largest fully
integrated non-
life insurer in
Scandinavia
Introduction by
Chairman & Group CEO
9
Management’s review - Contents
Annual report 2022 | Tryg A/S |
A resilient business despite the most difficult
macroeconomic conditions in recent memory
Geopolitical and macroeconomic tensions
have been at their highest level for many years
in 2022, following the COVID-19 pandemic in
the winter and Russia's invasion of Ukraine in
February. 2022 will also be remembered as the
year marking the return of inflation to levels not
seen in the last 40 years. The Russian invasion
of Ukraine exacerbated an already complicated
situation with the global economy reeling from
COVID-19 lockdowns and related supply chain
issues. Inflation increased sharply through-
out the year, ending at close to 10% in many
advanced economies. Yet, Tryg managed to
produce a robust financial performance against
this highly challenging backdrop, proving the
resilience of its business model.
Acquired Swedish and Norwegian businesses of
RSA Scandinavia fully integrated
After obtaining all regulatory approvals and
following the demerger on 1 April, Tryg started
to consolidate Codan Norway and Trygg-Hansa
from Q2 2022 and fully integrate these busi-
nesses into the Private, Commercial and Corpo-
rate operating segments.
In connection with the RSA Scandinavia trans-
action, we welcomed the swift sale of Codan
Denmark to Alm. Brand, which was approved
in late April 2022, thereby finalising the entire
RSA Scandinavia transaction. Tryg has subse-
quently initiated a share buyback programme
of DKK 5bn, which is expected to last until
summer 2023. As per year-end 2022, some
19.8m shares had been bought for a total value
of DKK 3.2bn. Overall, we can look back on a
very successful process that created the largest
non-life insurance group in Scandinavia, thereby
creating value for our shareholders, customers
and employees.
Strong results for the new group
Tryg reported a technical result of DKK 6,177m
with full consolidation of Codan Norway and
Trygg-Hansa from Q2; in other word, only con-
solidated for nine months when looking at the
full-year technical result. Tryg is very satisfied
with the result in a year of extremely challenging
geopolitical circumstances and the highest level
of inflation for many decades. The result was
positively impacted by solid growth in the Pri-
vate and Commercial businesses and improved
underlying profitability for the group. Profitabil-
ity initiatives related primarily to the Corporate
and Commercial segments (large Commercial
customers). The result was also supported by
RSA Scandinavia related synergies of DKK 406m
against a total target of DKK 350m in 2022 and
DKK 900m for 2024.
Tryg’s most profitable segment, the Private
segment (accounting for 65% of total premi-
ums), continued to deliver strong growth and
high profitability in all countries. In the Com-
mercial segment, Tryg saw an inflow of small
commercial customers in line with the strategy
of targeting an increased presence in this part
of the market. We are very satisfied with the
level of growth in the acquired Swedish busi-
ness, which developed positively compared to
previous years. The Corporate segment reported
a slight drop in the business volume in line with
expectations, as Tryg is strongly focused on
improving profitability. Hence, Tryg is decreas-
ing the number of the high-end international
property and US liability segments to rebalance
the portfolio and improve profitability.
Strong and profitable growth supported by high
customer satisfaction
In both Private and Commercial, we are very sat-
isfied with the level of profitable growth. Tryg has
a very strong focus on customers and realised a
customer satisfaction score of 85. Tryg generally
saw a strong retention rate in both the Private
and Commercial business areas, although Q4
2022 was impacted by slightly higher churn, es-
pecially in the single product customer segment
in Private (in partner agreements).
Focus on shareholder remuneration
Tryg expects to return a total DKK 17-19bn to its
owners between 2022 and 2024, split between
DKK 12-14bn in ordinary dividends and the
Tryg has a strong focus on shareholders and expe-
cts to pay a total of DKK 17-19bn to its owners
between 2022 and 2024, with the amount split
between DKK 12-14bn in ordinary dividends and a
DKK 5bn extraordinary buyback share programme.
”
ongoing share buyback programme of DKK 5bn.
The high shareholder return is supported by the
targeted technical result of between DKK 7.0 bn
and 7.4 bn, driven by a combined ratio target of
at or below 82 in 2024.
Sustainability and ESG
Tryg believes that working systematically to ad-
vance sustainability and ESG aspects unleashes
better business results and customer relation-
ships while also fostering greater innovative
power and a more attractive workplace. In 2022,
Tryg continued to focus on delivering sustain-
able solutions to its customers. Through close
collaboration with suppliers, Tryg was able to
reduce CO2 emissions from claims handling by
15,449 tons, putting Tryg well on track to reach
its target of cutting CO2 emissions by 20,000-
25,000 tons CO2 by 2024.
Thanks to all employees
2022 was a challenging year for all Tryg employ-
ees impacted by the acquisition of RSA’s Scan-
dinavian activities. We are very proud that we
managed to strongly develop the existing busi-
ness and significantly improve Tryg’s strategic
position by closing a very important acquisition.
The Supervisory Board and the Executive Board
would like to thank all employees for their great
efforts in Denmark, Sweden and Norway.
JUKKA PERTOLA
Chairman
MORTEN HÜBBE
Group CEO
Annual report 2022 | Tryg A/S | 10
Management’s review - Contents
Events in 2022
Tryg is united
On 1 April, the demerger of Trygg-Hansa and Codan
Norway from Codan Denmark became a reality. From
that day, Trygg-Hansa and Codan Norway were legally
part of the Tryg group – which also means that the Tryg
group has become Scandinavia’s largest non-life insurer.
Following the demerger, the group has full access to
data and customers, and the integration of the new
Swedish and Norwegian businesses is still progressing.
The group continues to focus on collaboration, knowl-
edge sharing and creating a new, united culture – with
all these endeavours made possible thanks to the great
commitment of employees across the Tryg group.
Sale of Codan Denmark and launch of share
buyback programme
In April, Tryg announced that the Supervisory Board had
decided to initiate a share buyback programme of DKK
5.0bn following approval by the Danish Competition
and Consumer Authority for the sale of Codan Denmark
to Alm. Brand. The launch of the share buyback pro-
gramme was an important milestone in the acquisition
of RSA Scandinavia.
ESG certifications
Many important steps were taken in 2022 with regards
to continuously promoting strong ESG practices across
the organisation. Tryg received both an ISO 14001 certi-
fication and an EU Eco Management and Audit Scheme
(EMAS) - the first insurance company in the Nordics
to do so. The certificates are the two most recognised
international standards for environmental management
systems. This will be an important element in Tryg’s
continued work to integrate sustainability initiatives
across the organisation.
New maternity/paternity leave rules in Tryg Den-
mark ensure equal rights for all parents
Tryg aims to be an inclusive workplace with equal op-
portunities for all employees. From autumn 2022, Tryg
Denmark has introduced equal rights maternity/paterni-
ty leave for all parents. Mothers, fathers and co-parents
have equal status and the right to leave with full pay for
up to 25 weeks, regardless gender or family constella-
tion. Thanks to legislation, equal parental conditions
already exist in Tryg’s Norwegian and Swedish branches,
so the focus has been on introducing the same condi-
tions in Tryg Denmark.
Group
Launch of pregnancy insurance
In December, Tryg Denmark launched its new preg-
nancy insurance, which covers from week 21 of the
pregnancy up to six months after birth. The insurance
provides help, guidance and compensation in a number
of different and difficult situations as well as additional
comfort during the pregnancy. The insurance offers
access to online consultations with midwifes in collab-
oration with gravid.dk, an online forum for pregnant
women, and psychological crisis counselling if needed.
Tryg’s pregnancy insurance is the first of its kind in Den-
mark, whereas in Sweden more than 85% of all parents
have already chosen to have pregnancy insurance -
Trygg-Hansa is the market leader with a similar product.
Hence, pregnancy insurance is also one of many good
examples of how the acquisition strengthens Tryg's
overall business.
Fire in Vanløse
On 25 March, a devastating fire started in an apartment
building in Vanløse, one of 10 districts in Copenhagen.
It was described as the largest fire in recent times and
around 90 families lost their homes. Approximately, half
of the 90 families were insured at Tryg. Immediately
after Tryg received the news that multiple customers
were affected by the fire, several employees went to
the location and assisted with help and guidance about
emergency housing, etc.
TryghedsGruppen’s member bonus
For the seventh consecutive year, TryghedsGruppen,
Tryg’s largest shareholder, paid out a member bonus
in 2022 - of DKK 1.2bn, equivalent to 8% of premiums
paid for 2021. The bonus was paid to Tryg customers in
Denmark, amounting to every fourth Dane.
Denmark
Annual report 2022 | Tryg A/S | 11
Management’s review - Contents
Events in 2022
Anniversary of the lifebuoy
This year, the lifebuoy had its 70th anniversary in Nor-
way. The red and white buoy is inextricably linked to
Tryg and has become a symbolic representation of the
company's social responsibility since 1952. In Norway,
more than a thousand human lives have been saved
with the help of the buoy over the years.
Integrating the acquired Norwegian business
At the end of 2022, Codan's Norwegian organisation
was fully integrated into Tryg Norway and the merged
organisation now has almost 1,600 employees. The fo-
cus of the integration has been on creating a new organ-
isation and migrating Codan's customers and products
over to Tryg's systems.
Customer centre award
Tryg Norway's Contact Centre won the Customer
Centre Award for 2022 - the result of systematic and
focused work. Tryg believes the key to this award is tar-
geted and dedicated effort with respect to the customer
experience.
Increased use of used car parts
Tryg has become the largest operator in used car parts
within a short space of time, with more than one in ten
car repairs now made with reused parts. Tryg has en-
tered framework agreements with the industry's leading
car dismantling companies to ensure consistent and
extensive access to parts.
Norway
A historical merger
In Sweden, the year has been marked by the merger of
Trygg-Hansa and Moderna Försäkringar. The process
of merging the two branches under the brand Trygg-
Hansa kicked off on 1 April. Since then, the intense
work has focused on creating a new organisation and
migrating products, IT systems and customers. In
September, an important milestone was reached by
launching pet insurance under the Trygg-Hansa brand
for the first time - a direct result of the merger.
Growing business thanks to digitalisation
The intense work with merging the branches has
already produced concrete results, and Trygg-Hansa
continues to gain market share. By the end of Q3,
Trygg-Hansa was the fastest growing insurance com-
pany in Sweden, maintaining its strong position in the
Sweden
market. Online sales are growing very comfortably,
thanks to the leading position in online marketing and
data driven sales. In addition, Trygg-Hansa continues
to invest in digital solutions to support interactions
with customers, underpinning the ambition to reduce
ordinary mail correspondence and thus the ambition
to reduce the total carbon footprint of the group.
Looking ahead to 2023
During the first quarter of 2023, one of the main high-
lights of the year will occur when Trygg-Hansa receives
the keys to the new office in Hyllie, just outside Malmö.
1,200 employees will be moving into the brand-new
office in spring 2023. Being able to gather all employ-
ees in Malmö under one roof is of the highest priority
in the endeavour to be an attractive employer. The
work to create an inclusive culture with employees in
focus continues, as employees are gathered together in
Malmö as well as at other locations where Trygg-Hansa
has a presence in offices in Sweden.
Strong new partnerships in the motor segment
In the beginning of 2022, Trygg-Hansa launched a new
partnership with BMW. Despite being in a declining
market due to the global supply issues, Trygg-Hansa
saw some solid trends in the motor segment and new
partner BMW contributed significantly to growth. Trygg-
Hansa also saw strong sales from the existing partner-
ship with Tesla cars, which were up more than 70%
in 2022 compared to 2021. Trygg-Hansa has a strong
focus on this area and expects to enter more partner
agreements with car dealers going forward to support
the the position in the market for electric cars.
Annual report 2022 | Tryg A/S | 12
Management’s review - Contents
Financial outlook
Global geopolitical tensions have been at their
highest levels for many years in 2022 following
a number of events: the COVID-19 pandemic
during the winter, Russia's invasion of Ukraine
in February, US/China tensions on the future
of Taiwan and various other pockets of crisis
in many parts of the world. 2022 will also be
remembered as the year marking the return of
inflation to levels not seen in the last forty years.
The Russian invasion of Ukraine exacerbated an
already complicated situation where the global
economy was reeling from COVID-19 lockdowns
and related supply chain issues. Inflation levels
started moving upwards already in the first part
of 2022 and ended the year at close to 10%
in many developed countries. The financial
markets have followed the developments closely
and experienced a degree of turmoil and volatil-
ity. Most asset classes developed negatively (es-
pecially equities and corporate bonds) as infla-
tionary pressures began to materialise in various
parts of the economy. Equity markets dropped
substantially in the first nine months of the year,
only to partly recover in the last three months
Global geopolitical tensions have been very high in 2022 due the
Russian invasion of Ukraine and ongoing uncertainty in various parts
of the world. The macroeconomic picture has deteriorated rapidly,
with inflationary pressures at all-time high in the last 40 years and
rapidly rising interest rates increasing the likelihood of a difficult
2023. The Scandinavian economies continue to do relatively well
against this highly challenging backdrop.
of 2022. Equity valuations were primarily hit by
higher risk-free rates, with cyclical stocks and
business models that discounted a long period
before profitability, being the worst hit.
The Scandinavian countries continue to perform
relatively well compared to most European
countries. A high level of trust in public author-
ities, solid overall public finances and relatively
low unemployment rates are strong competitive
advantages, especially in troubled times.
Government indebtedness across Scandinavia
remain low compared to larger European coun-
tries, and this has allowed for various schemes
to support consumers and businesses against
the sudden spike in inflation.
Scandinavian non-life insurance markets remain
relatively stable. The region is characterised by
relatively high product penetration, and ratios of
non-life insurance premiums as a percentage of
GDP are some of the highest in the world. Prod-
uct offerings are broader and also significantly
more diverse compared to larger European
countries. Motor and property insurance make
up around two thirds of total premium income,
but accident and health and other products are
also very well developed. Households usually
cover their insurance needs comparatively well
and there is generally a high level of trust in in-
surance companies and high brand recognition.
Retention levels are very high in Scandinavia
compared to nearly everywhere else in the
world. This is a key profitability driver, as it helps
insurers keep their overall expenses low. Reten-
tion rates hover around 90% in the Private and
Commercial (SMEs) segments, which together
represent close to 90% of Tryg’s total business.
A direct distribution model also contributes
significantly to the very efficient setup.
At the end of 2022, Tryg reported an expense
ratio of 14.1 (same as in 2021).
Tryg’s reserves position remains strong. Run-off
gains are expected to be between 3% and 5% in
2024.
Tryg’s systematic claims reserving approach still
includes a margin of approximately 3% at best
estimate.
In 2023, weather claims net of reinsurance and
large claims are expected to total DKK 800m
and DKK 800m, respectively, for the enlarged
group including Codan Norway and Trygg-
Hansa, i.e. unchanged from 2022.
Annual report 2022 | Tryg A/S | 13
Management’s review - Contents
IFRS 17 comment
In April 2022, Tryg published a newsletter on the
introduction of IFRS 17, a new accounting stand-
ard for the insurance sector that will go live from
1 January 2023 with the first interim report to be
released shortly after the end of Q1 2023. The
goals of IFRS 17 are to ensure accounting con-
sistency across all insurance contracts, increase
comparability between insurance companies
and drive more detailed disclosure. Due to Tryg’s
business being relatively short-tailed along with
the current accounting policy practices already in
force in Denmark (e.g. mark-to-market account-
ing for all assets and liabilities). The introduc-
tion of IFRS 17 will primarily mean a change in
terminology and only have a minor impact on
financial statements overall. Key items such as
the net profit and shareholder equity will remain
virtually unchanged, while the technical result
will see only a modest positive impact. Tryg aims
to publish 12 quarters (Q1 2020 to Q4 2022) of
re-stated numbers under IFRS 17 towards the
end of March 2023 to ensure comparability. It is
very important to remember that the acquisition
of RSA Scandinavia has impacted Tryg's accounts
heavily from Q2 2021, therefore comparability
will be affected. The IFRS 17 newsletter is public-
ly available on Tryg.com and can be found here.
The investment portfolio is divided into a match
portfolio, which corresponds to the technical
provisions, and a free portfolio. The objective
is for the return on the match portfolio to
be approximately zero, as capital gains and
losses on the asset side should be mirrored by
corresponding developments on the liability
side. The free portfolio consists of a diversified
asset allocation with a view to obtaining the
best risk-adjusted return. The return on bonds
in the free portfolio (approximately 55% of the
free portfolio) will vary, and be higher for the
corporate bonds' portfolio versus the covered
bonds portfolio considering the different dura-
tions and credit risk. For equities, the estimated
return is around 6%, with the MSCI World Index
as a benchmark, while the normalised expected
return on properties is expected to be around
5%. Investment return in the P&L also includes
the cost of managing investments, the cost of
currency hedges, interest expenses on subordi-
nated loans and other minor items.
Tryg hosted a Capital Markets Day in London in
November 2021 to launch the 2024 strategy and
updated financial targets for the new combined
group that includes Codan Norway and Trygg-
Hansa. Tryg is targeting a technical result in 2024
of between DKK 7.0 and 7.4bn driven by a com-
bined ratio at or below 82 and an expense ratio
of around 14. The overall technical result target
is underpinned by DKK 900m in synergies from
the Codan Norway and Trygg-Hansa acquisition.
Tryg also introduced a new profitability measure,
return on own funds (ROOF), which is targeted at
or above 25%, also in 2024.
Tryg has targeted synergies from the acquisition
of Codan Norway and Trygg-Hansa of DKK 350m
in 2022 growing to DKK 650m in 2023 and DKK
900m in 2024.
Interest rates are approximately 200 basis points
higher compared to the CMD date, this has a
clear positive effect on Tryg earnings, at the same
time currencies (SEK and NOK) have moved
unfavorably and reinsurance prices have also
increased. Tryg is maintaining all financial targets
for 2024 including the technical result target
between DKK 7.0-7.4bn and the combined ratio
target at or below 82.
During 2023 Tryg continues to expect a positive
top line growth primarily driven by the Private
and Commercial segment, although some neg-
ative impact is expected from the conversion of
customers from Codan Norway to Tryg Norway
and to a less extent from Moderna to Trygg-
Hansa, this will have no financial impact.
At the time of writing this annual report it is
expected that the remaining DKK 300m (approxi-
mately) of integration costs related to the Codan
Norway and Trygg-Hansa acquisition will be
booked in H1 2023 against the other income and
costs line (as in 2022).
The overall tax rate for the FY is expected to be
approximately 23%, as the full consolidation of
Trygg-Hansa's Swedish earnings will reduce the
tax rate considering the lower corporate tax rate
in Sweden, whereas a new financial tax (so called
“Arne skat”) in Denmark will tend to increase the
corporate tax rate.
7.0-7.4bn
Technical result
(DKK)
≥40%
Digitalisation
(% growth in value -creating
actions upon login)
≤82%
Combined
ratio
88
Customer
satisfaction
14%
Expense ratio
(reaffirmed)
20-25,000
Sustainability & ESG
(tonnes CO
2
e reduction)
≥25%
Return on
own funds
Financial targets 2024
Customer targets
Annual report 2022 | Tryg A/S | 14
Management’s review - Contents
Targets and
strategy 2024
Tryg hosted a Capital Markets Day on 16 November 2021
unveiling 2024 financial and strategic targets.
Financial targets
Tryg hosted a Capital Markets Day in Novem-
ber 2021 where the 2024 financial targets
were published. Tryg targets a technical result
of between DKK 7.0 and 7.4bn driven by a
combined ratio at or below 82. The expense
ratio is expected to remain stable at around 14
as in the previous strategy period. In addition to
the three financial targets, Tryg also introduced
a new profitability target, return on own funds
(ROOF), which is set at or above 25% by 2024.
All financial targets are underpinned by the DKK
900m in synergies related to the acquisition of
Codan Norway and Trygg-Hansa.
As the world changes,
we make it easier to be tryg*
Our purpose
Grasping opportunities to
develop rather than just
defending our business
• Digitalisation
• New products
• Analytics
Adjusting to customer
preferences and needs
• Self-service
• Straight-through
processing
• Packaging of products
Increasing customer
relevance and share
of wallet
• Product innovation
• Prevention
• Add-on services
Tryg’s business model
Tryg makes it easier to be
‘tryg’ for its customers by
offering them insurance
against risk, efficient claims
handling, and advice and
services to prevent claims
from arising in the first place.
By making it easier for our
customers to feel protected
and cared for, we all benefit
of Tryg’s stakeholders. Via
TryghedsGruppen’s 46.5%*
ownership of Tryg, part of the
company’s profit is returned
to customers, who are also
members of TryghedsGrup-
pen. Tryg’s purpose is valid
for all stakeholders – our cus-
tomers, our employees and
our shareholders.
* ’Tryg’ means feeling protected and cared for
Customer targets
Tryg believes that high customer satisfaction and
retention rates lead to lower distribution costs.
Customer satisfaction targets are therefore
of high importance for realising the financial
targets. Tryg has disclosed two ambitious targets
relating to the customer experience.
The first target builds on the customer journey,
from onboarding the customer to the claims
handling and relation processes. In 2022, Tryg
reported a customer journey satisfaction score
of 85 (on a scale from 0-100) and the target is to
reach 88 by 2024.
Distribution
Own sales force
and partners
Processes
Combination of in-
house and sourcing
Insurance
Prevention
Claims handling
E
m
p
l
o
y
e
e
s
E
m
p
l
o
y
e
e
s
E
m
p
l
o
y
e
e
s
E
m
p
l
o
y
e
e
s
Pricing
Pricing according
to risk prole
Products
Full non-life
product range
* Calculated excluding Tryg's own shares
Annual report 2022 | Tryg A/S | 15
Management’s review - Contents
1
Secondly, Tryg has set a target to grow ‘val-
ue-creating actions’ upon logging in online. To
illustrate this, if a customer logs in to Tryg.dk to
report a claim, buy insurance, self-service or
similar, the customer creates value in a very low-
cost frictionless manner. Tryg aims to increase
these low-cost value-creating actions by 40%
by 2024 (vs ~DKK 14m in 2020). In 2022, Tryg
increased the level of value creating actions by
35% by, for example, using “My page” for all
communication instead of emails and also due
to customers preferring to use self-service to a
greater degree.
Tryg is also introducing a new target related
to sustainability. By 2024, Tryg aims to reduce
carbon emissions by 20,000-25,000 tonnes in
claims handling, equivalent to approximately
1,000 annual household emissions. Sustain-
able claims handling with initiatives within
motor, property and content claims, etc. are
expected to be the main driver for reaching the
sustainability target. In 2022, Tryg reduced its
carbon emissions by 15,449 tonnes through the
above-mentioned initiatives. Read more about
Tryg’s latest sustainability initiatives on page 37.
Tryg 2024
Full speed ahead in
a successful core
Key enablers
Data and analytics IT capabilities HR - people, organisation
and culture
Trygg-Hansa
and Codan NO
synergies
Shape
the future
Change the
way to win in B2B
Advanced approach
to claims
Sales and customer
excellence
DKK ~1,050m
increase in TR
Grow among smaller
SMEs in Commercial
Improve profitability
in Corporate
DKK ~600m
increase in TR
Expand the market
of today
Build the market of
tomorrow
Leverage scale to
realise cost synergies
Share best practices
to realise commercial
synergies
DKK ~1.5bn premi-
ums in 2024+ across
product types
DKK ~900m in
synergies
Sustainability & ESG
Customer experience
Annual report 2022 | Tryg A/S | 16
Management’s review - Contents
2 3 4
* Commercial customers are defined as enterprises with less than 100 FTEs and/or DKK 100m in turnover.
Corporate customers are defined as enterprises with more than 100 FTEs and/or DKK 100m in turnover
Tryg has defined four key strategic pillars to
support both its financial and customer targets
for 2024.
Full speed ahead in a successful core
This strategic pillar aims to increase the techni-
cal result by DKK 1,050m by 2024 through the
continued improvement of Tryg’s core business.
DKK 650m will relate to a more advanced
approach to claims, such as the claims handling
process, procurement savings and a focus on
reducing the level of fraud. In 2022, this initiative
had a very large impact on mitigating the high
level of claims inflation. DKK 400m will be
reached through sales and customer excellence,
including partnerships as lead generators, cross
and upselling as well as pricing and analytics.
An example of this was in 2022, where Private
Denmark introducing new car packages that
meet customers’ individual needs better and
Tryg’s claims departments increasing their focus
on car repair to reduce plastic waste, for exam-
ple by repairing headlights instead of replacing
them. These initiatives and others helped sup-
port the strong growth in Tryg's Private business.
Change the way to win in B2B
*
This strategic pillar aims to increase the techni-
cal result by DKK ~600m in 2024. Small custom-
ers make up the most profitable segment, and a
segment where Tryg can offer good advice. Tryg
therefore aims to grow its Commercial business
while making Corporate more profitable. This
involves a 30% portfolio increase in the SME
segment (0-9 employees) and aiming for a ~90%
combined ratio with run-off levels around 5-7%
in the Corporate segment. An increased focus
on more accurate underwriting, better segmen-
tation to reduce risk exposure, improved sales
and distribution, and new products and services
will support the target of reaching DKK ~600m
by 2024. These initiatives strongly supported
continued growth in the groups underlying
claims ratio both via profitability in the Corpo-
rate business and a higher share of customers in
the SME segment.
In 2022, a new partnership with Valified was
announced. Valified helps Tryg’s commercial
customers meet increasing demands for sus-
tainability and provides them with insights into
their performance across selected ESG areas.
In Norway, a new partnership between Tryg and
ABAX (a large tracking and telematics company)
was launched, allowing Tryg to create data-driv-
en insurance solutions based on the customers’
driving behaviour.
Shape the future
This strategic pillar aims to grow premiums by
DKK 1,500m via new products and services by
2024+. This initiative builds on Tryg’s continued
focus on launching new and profitable products.
Expanding the market of today and building the
market of tomorrow will support realising the
target. Both the Private and Commercial busi-
nesses have developed strongly in this area. Tryg
generally has seen strong development in the
Strategic initiatives
health area for both Private and Commercial.
In 2022, Tryg launched a new cyber insurance
product that includes cyber prevention tools
which the customer can install on their devices
to reduce risks, while in Norway a new innova-
tive partnership with DyreID provides access to
600,000 customers.
Tryg does not see any value in defining a specific
growth target, as profitability remains the key
focus.
Trygg-Hansa and Codan Norway synergies
This strategic pillar aims to strengthen the
technical result by DKK 900m through synergies
from the acquisition of Trygg-Hansa and Codan
Norway. In 2022, DKK 406m was reached
against a target of DKK 350m, driven by accel-
erated synergies delivery in the initial phase.
Synergies have mainly been achieved through
a reduced marketing spend and administration
initiatives, though lower claims costs through
capitalising on Tryg’s strong procurement power
as well as reduced RSA group charges have
helped. Synergies of DKK 250m relating to ad-
ministration and distribution were achieved for
2022, driven primarily by FTE reductions. DKK
61m was linked to commercial initiatives, DKK
55m from procurement and, finally, DKK 40m
was related to claims costs.
Annual report 2022 | Tryg A/S | 17
Management’s review - Contents
2022 marked the beginning of Tryg’s new
strategy period, which included the acquisition
of Trygg-Hansa and Codan Norway. Tryg has set
new and ambitious targets for 2024 under the
headline “Growing a successful core while shap-
ing the future”. Tryg will continue growing its
successful Private and SME segment by building
on the foundations for customer and sales ex-
cellence while initiating structural changes in the
Corporate segment. Specifically, in 2022, Tryg
had an enhanced focus on the B2B segment,
and initiatives were implemented to continue
growth in the SME segment while increasing
profitability in the Corporate business.
Private
In Private, Tryg continues to build on its strong
foundation of innovative capabilities to deliver
excellent customer experiences and new propo-
sitions to meet customer expectations as well as
support profitability.
In Denmark, Private established a new part-
ner-ship agreement with Velliv, the third largest
pension company in Denmark. The partnership
entails Velliv continuing to distribute Tryg’s
pension product, Tryg Pension. Private Den-
mark also launched a new car insurance to
further meet customer needs and trends. The
product aims to be even more intuitive, easier
to understand and tailored to the individual
customer and the demands deriving from new
technologies within mobility. Subsequently,
Private Denmark added a new pregnancy prod-
uct, aiming to assist the women throughout the
pregnancy period. The product was inspired by
Trygg-Hansa, leveraging knowledge sharing and
synergy. Additionally, as part of the ESG agenda,
Tryg will plant a tree for every new electric car
insured, thus helping give back to the environ-
ment.
In Norway, Private established a new partner-
ship with DyreID (‘Pet ID’). More than 90% of
all cats and dogs in the country are earmarked
via DyreID, but less than a 25% of the pets are
insured. With the new partnership, Tryg will start
offering insurance to pets earmarked via DyreID.
Additionally, Private Norway renewed its part-
nership with OBOS, one of the largest housing
construction companies in Scandinavia. The
renewed partnership is focused on providing
insurance to OBOS as well as adding on the new
dimension regarding improved safety along the
Norwegian coastline, which is a great addition to
Tryg’s 70-year history of providing lifebuoys.
In Sweden, Trygg-Hansa added a new product,
pet insurance. The product is similar to ones
already offered by Tryg, thus a good example of
leveraging knowledge sharing and synergy. Also,
early this year Trygg-Hansa added a new service
to its already existing product Family Help. The
new service is “Familjehjäljpen Gravid”, which is
offered to pregnant women, their partners and
new parents. Additionally, Trygg-Hansa renewed
several of its partnerships, including Akader-
mikerförsäkring, an organisation for lawyers
and economists; Finansförbundet, the largest
organisation for employees in the insurance
and banking industries; and its partnership with
BMW.
Business-to-business (B2B)
At Tryg, a key priority has been to grow the
attractive and profitable SME segment while
Business initiatives
Annual report 2022 | Tryg A/S | 18
Management’s review - Contents
finding the right balance between risk and price
among large Corporate customers. One way of
supporting growth in the small business seg-
ment is through tailoring products to accurately
cover the needs of the smaller companies in
the Commercial segment. An example of this
is the new packaged product tailored towards
craftsmen called ‘Håndværkerpakken’. This
was launched in Denmark during the autumn
of 2022 and seeks to reduce complexity by
bundling the most relevant insurance products
for the business. The product is an important
initiative to increase the portfolio of SMEs (0-9
FTEs) by 30% in 2024. So far, the product has
been very well received.
In Trygg-Hansa, a service called ‘Din Företags-
jurist’ ('Your Commercial Lawyer') was launched
in collaboration with HELP Försäkring. It is a
legal advice service tailored to SMEs with a
turnover below SEK 50m.
In Corporate, the focus has been on profitability.
To strengthen the work around profitability, the
tools and capabilities used when matching price
with risk have been enhanced. In practice, this
means that more data are included and utilised
in the decision process.
An example of this is a new initiative in Com-
mercial Norway where Tryg instals a device in
customers’ vehicles and can therefore generate
data based on their actual driving behaviour and
thus estimate risks more accurately than would
be possible based on of their claims history.
The upside for the customer is attractive pricing
if their driving behaviour is considered safe or
sustainable, as this leads to lower fuel consump-
tion, fewer claims and fewer repairs.
Claims
In the Danish and Norwegian claims organisa-
tions, the implementation of a new and more
effective claims handling system (Guidewire)
continued in 2022. The new claims handling
system boosts the quality of the claims handling
process by ensuring that all the correct informa-
tion is collected and that the claim is handled as
soon as possible, either physically or by ways of
payment to the customer. Simple claims types,
such as travel claims, are handled as “Straight
Through Processing”, which is a fully automated
claim handling. Other, more complex claims
types are automated to the extent that is pos-
sible. By the end of 2022, approximately 52%
of all claims in Denmark were being handled in
the new claim system, with Tryg incorporating
major products such as health, content leisure
house and pets during the year. In Norway, 68%
of all claims are handled through Guidewire with
the following products included in 2022; health,
liability, content, road assistance and boat
insurance.
Sustainability & ESG
In 2021, Tryg launched its Corporate Respon-
sibility strategy: “Driving sustainable impact”
and the work on the strategy continued in 2022.
In addition to strengthening the anchoring of
strong ESG practices across the organisation,
the strategy also aims to support customers
in the green transition by increasingly offering
sustainable insurance products and sustainable
claims handling. Tryg has included the activities
of Trygg-Hansa and Codan Norway in its sus-
tainability targets, and hence increased its level
of ambition with regard to sustainable claims
handling. Tryg has raised its target for increasing
the claims spend classified as sustainable by
80% in 2024 compared to 2020. The target is
an important lever for achieving its target of a
total reduction in CO2 emissions of 20,000-
25,000 tonnes through more sustainable claims
handling in 2024.
Tryg wants to offer products and services that
can help move society in a more climate-friendly
and socially responsible direction. During this
process, Tryg wants to ensure that solutions are
aligned with the business model and strategy,
resonate with the customers, and are aligned
with the EU Taxonomy for sustainable activities.
One example of a sustainable service that
Tryg has started to offer its Danish customers
is Valified. This can provide Tryg’s business
partners with insights into their performance
across selected ESG (Environmental, Social and
Governance) areas. Such insights are becoming
key for SMEs because their customers demand
ESG transparency. For smaller enterprises, ESG
reporting can be a resource-intensive and com-
plex task. With Valified, Tryg is able to support
its customers in their ambitions and help them
better understand and work with their carbon
footprint.
In 2022, Tryg launched a ‘smart repair’ initiative
whereby Tryg cooperates with car repair shops
to reduce plastic waste by repairing headlights
instead of replacing them. Every year, Tryg and
Alka pay for having approximately 10,000 head-
lights replaced. An increased focus on repairing
headlights when they are damaged instead of
replacing them results in both savings as well as
reduced waste and CO2 emissions. To ensure
the repair is attractive to suppliers, Tryg offers
an incentive payment to suppliers for repairs
instead of replacement and also helps train
personnel. Tryg’s target is to repair at least 2,000
headlights a year by 2024.
Employee satisfaction
In its annual employee survey, Tryg once again
saw that the employee satisfaction was much
higher than among peer groups. There was a
slight drop in employee satisfaction at Tryg to
79 for 2022 compared to 80 in 2021. This was
expected in a year with structural changes relat-
ed to the integration of Trygg-Hansa and Codan
Norway in Sweden and Norway.
Employee satisfaction
(Index)
Tryg Nordic Nordic nancial
market
73
79
2021 2022
75
73
80
75
Tryg has an employee satisfaction level above the average of
the Nordic sector.
Source: Global Employee and Leadership Index
Annual report 2022 | Tryg A/S | 19
Management’s review - Contents
Tryg’s results
Tryg reported a technical result of DKK 6,177m (DKK 3,709m) in 2022 (Codan Norway and Trygg-Hansa
fully consolidated for nine months starting in Q2) impacted by a solid premium growth of 5.9%, the
inclusion of RSA Scandinavia and related synergies and significantly higher interest rates. The combined
ratio was 82.2 (84.5), driven by a generally improved underlying performance and tight cost controls.
Investment result of DKK -1,193m (DKK 870m) primarily impacted by very challenging capital markets
conditions with equities producing negative returns and increasing interest rates hitting also fixed-
income returns. The overall pre-tax profit was DKK 3,051m (DKK 3,956m), with the fall entirely driven
by the negative investment result and planned integration costs related to the Codan Norway and Trygg-
Hansa acquisition. Tryg is paying a dividend for the full year of 6.29 per share, a 46% increase compared
to 2021, driven by the consolidation of the new businesses and an initial delivery of the synergies. The
solvency ratio was 201 at year-end, hence showing resilience in challenging times and supportive of the
dividend outlook.
Results 2022
Tryg reported a pro-forma group premium
growth of 5.9% when measured on a comparable
basis that includes Codan Norway and Trygg-
Hansa in 2021. The top-line development was
predominantly driven by a good growth in the
Private and Commercial segments. The Private
segment reported a robust growth of 6.3% (4.9%
excluding bonuses and premium rebates), whilst
the Commercial segment also reported positive
top-line growth of 5.1%. Corporate reported a
growth of 5.4%, positively impacted by a transfer
from the Commercial business area (adjusted
for this, growth was approximately -1%). Tryg
reported a technical result of DKK 6,177m (DKK
3,709m) that was predominantly impacted by
the consolidation (for nine months) of Codan
Norway and Trygg-Hansa, but also positively
impacted by the underlying claims development,
the ongoing delivery of RSA Scandinavia synergies
and the increasing interest rates used to discount
liabilities, hence leading to a lower level of claims
paid, all else being equal. The high technical result
was achieved despite a significant drop in the
Swedish and Norwegian currencies. Tryg reported
a combined ratio of 82.2 (84.5), driven by a claims
ratio of 68.2 (70.5) and an expense ratio of 14.1
(14.1). The reported technical result improved
significantly for Private and Commercial predomi-
nantly due to the acquisition of RSA Scandinavia.
The improvement in the technical result was also
supported by organic growth in both Private and
Commercial, whilst Corporate improved primarily
driven by pricing initiatives and Tryg’s rebalanc-
ing strategy with lower levels of international
high-risk exposure. The group’s underlying claims
ratio (adjusted from the reported claims ratio for
all volatile items such as weather claims, large
claims, run-offs, discount rate and COVID-19
claims) continued to improve, primarily driven by
profitability initiatives in Corporate and Commer-
cial offsetting a small deterioration in the Private
segment against pro-forma figures.
Synergies from the RSA Scandinavia transaction
amounted to DKK 406m in 2022 and therefore
exceeded the targeted DKK 350m. The DKK
406m of synergies can be split into DKK 250m
6,177m
Technical result (DKK)
2021: 3,709m
3,051m
Profit before tax
2021: 3,956m
68.2
Claims ratio, net
of reinsurance
2021: 70.5
14.1
Gross expense ratio
2021: 14.1
82.2
Combined ratio
2021: 84.5
Financial highlights 2022
Annual report 2022 | Tryg A/S | 20
Management’s review - Contents
New business 
9 months
+83%
Equi
accounting
Pro-forma 2022
6,804
Pro-forma 2021
5,891
Technical Result
2022
6,177
RSA Scandinavia
2022
627
Technical Result
2021
3,709
Pro-forma
gures
RSA Scandinavia
2021
2,182
+15%
from administration and distribution, DKK 61m
from Commercial synergies, DKK 55m from
procurement synergies and DKK 40m from
claims synergies.
The investment result was DKK -1,193m (DKK
870m) including income from RSA Scandinavia
of DKK 34m (primarily driven by the equity
accounting for Q1 2022 and net effect from
demerger and sale of Codan DK in Q2 2022).
Financial markets developed negatively in 2022
driven primarily by falling equity markets during
the first nine months of the year and higher
interest rates during the same period following
sharply increased inflation levels. Some of these
trends reversed partly in the last quarter of 2022.
Tryg continues to pursue a relatively low-risk
investment strategy with limited equity expo-
sure and a conservative fixed-income profile
(more than 90% of fixed-income securities are
Nordic covered bonds). Furthermore, it is worth
remembering that Tryg marks to market both
assets and liabilities (in accordance with Danish
Financial Supervisory Authority rules), resulting
in P&L volatility in turbulent times, while other
Nordic and European insurers hold large parts
of their fixed-income portfolios to maturity, or
book most of their asset moves to shareholders’
equity. Tryg’s asset allocation remained broadly
unchanged during the period.
Other income and costs totalled DKK -1,933m
(DKK -624m), with the large increase driven by
the booking of integration costs related to the
RSA Scandinavia acquisition totalling DKK 949m
as well as intangibles amortisation related to
the acquistion totalling DKK 651m for the nine
months between Q2 and Q4. Other income and
costs also include the annual depreciation of
customer relations and brands related to the
Alka acquisition of DKK 127m, holding company
costs and number of smaller items.
The pre-tax result was DKK 3,051m (DKK
3,956m), while the net profit was DKK 2,247m
(DKK 3,161m). The fall in the pre-tax result is en-
tirely attributable to the poorer investment result
in 2022 and the planned booking of integration
costs related to the RSA Scandinavia acquisition.
In 2022, Tryg customers in Denmark received
their seventh member bonus from Trygheds-
Gruppen (Tryg’s largest shareholder). The 8%
bonus is appreciated by customers and seen as an
important competitive advantage, boosting cus-
tomer loyalty and supporting customer targets.
Premiums
Tryg reported a premium income of DKK
33,938m, equivalent to pro-forma 5.9% growth
in local currencies. Premium growth was 5.3%
after adjusting for bonuses and premium re-
bates. The Private segment reported pro-forma
growth of 6.3% (4.9% when adjusted for bo-
nuses and premium rebates). Private Denmark
maintains a high level of organic growth and was
positively impacted by a lower level of bonuses
and premium rebates compared to 2021. Addi-
tionally, the development was positively impact-
ed by strong growth driven by partner agree-
ments, cross-selling to existing customers and
price adjustments to mitigate inflation. Private
Norway reported an increased growth due to
strong sales to partner agreements and further
price adjusting initiatives to mitigate inflation.
Private Sweden experienced improved growth
compared to recent years, driven by higher sales
across all channels and improvements in partner
agreements. Growth was more pronounced in
the motor segment even in a year when sales
of new cars were challenged. Retention in all
Full-year technical result comparison
Split by business (DKKm)
Annual report 2022 | Tryg A/S | 21
Management’s review - Contents
markets remains high but deteriorated slightly
towards year-end due to a modestly higher
churn for single product customers in some
partner agreements.
The Commercial segment reported a growth
of 5.1%. Commercial Denmark had a high level
of growth and was impacted by both organic
growth and price adjustments to mitigate infla-
tion and improve profitability. Growth was also
supported by a net inflow of customers. Reten-
tion in all markets remains high but deteriorated
slightly at year-end as a result of customers re-
acting to price adjustments. Commercial Norway
reported a decrease of 13.1% and was affected
by a transfer of business from Codan Norway
to Corporate Norway. Adjusted for the transfer,
Commercial Norway grew by approximately 3%.
The growth was predominantly affected by price
adjustment to improve profitability and mitigate
inflation. Trygg-Hansa’s Commercial segment
delivered a strong growth compared to previous
years, supported by a net inflow of customers,
strong retention and pricing adjustments to miti-
gate inflation and improve profitability.
The Corporate segment, reported a growth
of 5.4% including the transfer of the Codan
Norway portfolio to the Corporate segment. Ad-
justed for the transfer, the segment experienced
negative top-line development of approximately
1%, which is in line with Tryg’s key priority to
improve profitability in the Corporate segment.
The Corporate segment continues to work on
sustainable profitability initiatives, and rebalancing
the portfolio by, for example, lowering the level of
international high-risk exposure.
Claims
The claims ratio, net of ceded business, was
68.2. In general, the group underlying profitability
improved, supported by profitability initiatives in
Commercial and Corporate. At the same time,
travel insurance claims in the Private segment
increased throughout the year as travel activity
picked up and many households displayed a
changed travel pattern, with fewer but more
expensive trips as opposed to more activity during
the year.
In 2022, inflation headlines were all over, this
was particularly evident in building materials and
motor spare parts. Tryg is relatively shielded by
robust procurement agreements and continuous-
ly monitors inflation and adjusts prices accord-
ingly to mitigate increased claims costs. The
development in inflation was primarily evident in
the Private segment and affected the underlying
profitability. Price adjustments in all segments
and claims containment measures will offset
the current pressure on the Private segment and
continue to help improve the underlying claims
ratio for the group.
For FY 2022, large claims totalled DKK 1,142m
(3.4%), weather claims totalled DKK 591m (1.7%)
while the run-off result was DKK 1,380m (-4.1%).
Tryg had a high level of large claims in both the
Commercial and Corporate businesses. Tryg was
also impacted by weather claims, especially in
Private, particularly in Denmark and Norway. Nor-
way experienced very bad weather in December
which resulted in a high number of claims. The
higher level of interest rates had a positive impact
on the result, as Tryg discounted its liabilities
(claims reserves) with a higher interest rate there-
fore reducing claims costs (all else being equal).
Expenses
The expense ratio was 14.1 (14.1). At the latest
CMD in November 2021, Tryg reiterated an
expense ratio target of around 14, also in 2024.
Tryg has been working to generally reduce dis-
tribution costs whilst some of the savings from
these initiatives are being invested in new digital
solutions. The expense ratio is also positively
impacted by the strong growth, especially in
the Private segment in recent years. The strong
top-line development helps the expense ratio
as there are significant economies of scale
considering that the backend staff and shared
service units are not particularly significantly
impacted by the higher revenue level therefore
supporting the low expense ratio level. The RSA
Scandinavia related synergies also support the
expense focus. As communicated, Tryg invests
cost synergies to develop the business across
the group.
Investment activities
The investment return for the full year totalled
DKK -1,193m (DKK 870m). The investment
return includes the income from RSA Scandina-
via of DKK 34m (primarily driven by the equity
accounting for Q1 2022 and the net effect of the
demerger and sale of Codan DK in Q2 2022).
Tryg's investment return was DKK -1,227m
following a highly challenging year for financial
markets. Leading equity indexes experienced a
steep falls as valuations adjusted to the higher
level of interest rates. Fixed-income returns were
also very poor, with higher interest rates hitting
bond portfolios. Tryg’s property portfolio pro-
duced good returns in the first part of the year
while being under pressure in the second half. In
general, high geopolitical tensions, the return of
Annual report 2022 | Tryg A/S | 22
Management’s review - Contents
own funds). As per year-end 2022, approximately
DKK 3.2bn has been bought back.
The solvency ratio (based on Tryg’s partial inter-
nal model) was 201 at year-end 2022 compared
to 188 at year-end 2021. Own funds were DKK
16,012m and the solvency capital require-
ment was DKK 7,966m. Tryg’s own funds are
predominantly made up of shareholders' equity,
subordinated loans and future profits, while
all intangibles are duly deducted from the own
funds calculation.
Tryg calculates its individual solvency capital
requirement based on a partial internal model in
accordance with the Danish FSA’s Executive
Order on Solvency and Operating Plans for In-
surance Companies. The model is based on the
structure of the standard model. Tryg uses an
internal model to evaluate insurance risks, while
other risks are calculated using standard model
components. The solvency capital requirement,
calculated using the partial internal model, was
DKK 7,966m (DKK 9,866m at year-end 2021).
The fall in the solvency capital requirement as
previously explained was impacted by the sale
of Codan Denmark and additionally by the steep
fall in equity markets, which reduces the market
risk capital charge.
Tryg’s solvency ratio displays low sensitivity to
capital market movements. The area with the
highest level of sensitivity is spread risk, where a
widening/tightening of 100 basis points would
impact the solvency ratio by approximately 15
percentage points. Sensitivity to the falling equi-
ty markets and interest rate movements is low.
Tryg refined its dividend policy at its Capital
Markets Day. The company continues to target
a stable, nominal increase in dividend payments
virtually double digit inflation in most advanced
economies and a challenging macroeconomic
outlook were the backdrop to very difficult
market conditions.
Other income and costs
Other income and costs totalled DKK -1,933m
(DKK -624m). This line includes the integration
costs related to RSA of DKK 949m for the full-
year. Additionally, depreciation of customer rela-
tions and brands related to the RSA Scandinavia
and Alka acquisitions of DKK 778m is included
together with holding company costs and other
minor items.
Profit before and after tax
Profit before tax was DKK 3,051m (DKK 3,956m),
while profit after tax and discontinued activi-
ties was DKK 2,247m (DKK 3,158m). The drop
in earnings (both pre and after tax) is entirely
attributable to highly challenging capital markets
developments and planned integration costs
related to the acquisition of RSA Scandinavia. The
total tax bill was DKK 804m (DKK 795m), equat-
ing to a tax rate of approximately 26,5%, driven
primarily by losses on the equity portfolio, higher
interest expenses on the subordinated loans and
the booking of a deferred tax of DKK 40m in Q3
due to a new financial tax being introduced in
Denmark (so called “Arne skat”).
Dividend and solvency
Tryg will pay a Q4 dividend of 1.60 per share
bringing the full-year dividend per share to 6.29, a
46% increase compared to the previous year and
driven primarily by the nine months' consolida-
tion of Codan Norway and Trygg-Hansa earnings
and the synergies related to the acquisition.
Following the sale of Codan Denmark, Tryg has
initiated a DKK 5bn buyback programme (the
amount has already been fully deducted from
1,689m
Technical result (DKK)
Q4 2021: 1,380m
1,377m
Profit before tax
Q4 2021: 1,458m
67.8
Claims ratio, net
of reinsurance
Q4 2021: 69.5
14.3
Gross expense ratio
Q4 2021: 14.6
82.1
Combined ratio
Q4 2021: 84.1
Q4 Financial highlights 2022
on a full-year basis, and the targeted payout
ratio remains between 60% and 90% based on
operating earnings (and not reported earnings).
This is driven by the fact that reported earnings
will be burdened by the close to DKK 700m
(after tax) annual amortisation of intangible
assets deriving from the Codan Norway and
Trygg-Hansa acquisition. The targeted payout
ratio is secondary to the aim of increasing the
annual dividend. Tryg aims to pay DKK 12-14bn
in ordinary dividends between 2022 and 2024
and, as previously mentioned, launched a DKK
5bn share buyback programme in May following
the closing of the sale of Codan Denmark to
Alm. Brand.
Results Q4 2022
Tryg reported a premium growth of 6.7% (4.0%
excluding the bonuses and premium rebates).
The company reported a technical result of
DKK 1,689m (DKK 1,380m for Q4 2021 based
on pro-forma figures) driven by a good growth,
improved underlying profitability (including
RSA Scandinavia related synergies) and a higher
discount rate of the liabilities. Weather claims
were higher than Q4 2021, which reported an
unusually low amount for weather claims, while
Q4 2022 was closer to a normal end of the year
and also characterised by some harsh weather
in Scandinavia. The combined ratio was 82.1
(84.1), driven by a claims ratio of 67.8 (69.5) and
an expense ratio of 14.3 (14.6). The group's un-
derlying claims ratio improved by 0.8 percentage
points, driven by profitability initiatives in Com-
mercial and Corporate, which more than offset
a modest deterioration in the Private segment
driven by adverse developments in the travel
insurance segment. The investment result was
DKK 317m in Q4 2022, driven by a positive eq-
uity market and falling interest rates significantly
reversing the trend of the first nine months of
Annual report 2022 | Tryg A/S | 23
Management’s review - Contents
the year. It is important to note that the DKK
803m investment result in Q4 2021 included
income of DKK 568m from RSA Scandinavia, as
the new businesses were equity accounted at
the time and therefore the net profit was includ-
ed in Tryg’s overall investment result. The overall
pre-tax result was DKK 1,377m (DKK 1,458m),
while the result after tax was DKK 1,081m
(DKK 1,370m). The fall is primarily driven by the
difference in the reported investment result and
also the planned booking of integration costs
related to the RSA Scandinavia acquisition. The
technical result developed positively.
Premiums
Tryg reported a premium growth of 6.7% in Q4
2022 (4.0% excluding bonuses and premium
rebates). Growth in the Private segment was
7.4% (3.4% excluding bonuses and premium
rebates) and was predominantly driven by Pri-
vate Denmark. Commercial reported a premium
growth of 4.1%, whilst Corporate reported a
premium growth of 9.2%. Due to the transfer
of the portfolio between Commercial Norway
and Corporate Norway, the adjusted growth was
7.4% for Commercial and flat for the Corporate
business.
Claims
The claims ratio, net of reinsurance was 67.8
(69.5). Weather claims were significantly higher
than the corresponding period and characterised
by a very low winter experience. At the same time,
the run-off result was somewhat higher than the
corresponding period. The underlying claims
ratio improved by 0.8 percentage points for the
group, driven by profitability initiatives in the
Commercial and Corporate segments offsetting
a modestly negative development (0.3%) in the
Private segment driven primarily by higher travel
insurance claims.
Expenses
The reported expense ratio was 14.3 (14.6).
Various initiatives aimed at lowering distribution
costs are being implemented, and some of the
savings from these initiatives are being invested
in new digital solutions and partnerships. RSA
Scandinavia related synergies have had an addi-
tional positive impact and this is being used for
investments especially in the Swedish business.
At the Capital Markets Day in November 2021,
Tryg reiterated its expense ratio target of around
14%, also for 2024.
Investment activities
The investment return totalled DKK 317m
reversing the trend experienced in the first nine
months of the year. Equities posted good returns
in the last three months of 2022 and interest
rates dropped, helping fixed-income returns.
Properties reported a negative return, primarily
driven by the higher level of interest rates in the
first part of the year. Both the match and the free
portfolio produced good returns in Q4.
Other income and costs
Other income and costs totalled DKK -629m
(DKK -171m) including integration costs of
Trygg-Hansa and Codan Norway of DKK 331m.
The amortisation of customer relations from
RSA Scandinavia of DKK 210m and Alka of DKK
32m is booked against this line together with
other minor items.
Taxes
The total tax expense was DKK 296m (DKK
85m), resulting in a tax rate of 21.5%. The
slightly lower than normal tax rate is primarily
attributable to positive developments in the
equity market during the quarter.
Annual report 2022 | Tryg A/S | 24
Management’s review - Contents
Private
6.3% 3,813m 13.5 83.0
Premium growth
(local currencies)
Based on
pro-forma figures
Technical result
(DKK)
2021: 2,496m
Expense ratio
2021: 13.6
Combined ratio
2021: 83.7
Financial highlights 2022
Results 2022
Private reported a technical result of DKK
3,813m (DKK 2,496m in 2021) and a com-
bined ratio of 83.0 (83.7). The higher result was
pre-dominantly impacted by the inclusion of the
RSA Scandinavia businesses for nine months,
but was also supported by high premium
growth, particularly in Denmark. The result was
characterised by a modest deterioration in the
underlying claims ratio primarily driven by high-
er claims costs in the travel insurance segment.
Premiums
Gross premium income was 6.3% (4.9% ex-
cluding bonuses and premium rebates) based
on pro-forma figures for 2021. Private is the
most profitable area and has the lowest capital
requirement. Strong growth in this area is a
structurally positive development for the group.
In Denmark, Private maintained a high level of
premium growth and was positively impacted by
a lower level of bonuses and premium rebates.
Additionally, the development was positively
impacted by further growth driven by partner
agreements, cross-selling to existing customers
and price adjustments to mitigate inflation. In
Norway, Private reported an increased premium
growth due to strong sales via partner agree-
ments and further price adjusting initiatives to
mitigate inflation and despite a higher churn
for transferred Codan Norway customers. In
Sweden, Trygg-Hansa saw improved premium
growth compared to recent years, driven by
higher sales across all channels and an improve-
ment in partner agreements. The lower level
of new cars sales continued to have a negative
impact on premium growth, particularly in
Denmark and Norway, while Sweden reported
positive developments as a result of new partner
agreements. The retention rate for Denmark
was 90.3 (90.5), slightly deteriorated at the end
of the year impacted primarily by single product
customers (in partner agreements) reaction to
price adjustments. Retention rate for Norway
was 88.7 (88.5) and thus positive in a period
with significant price adjustments to mitigate
inflation. Retention rate in Sweden was 87.6.
Claims
The claims ratio, net of ceded business, was
69.5 (70.1). Financial performance was broadly
stable but characterised by higher large claims,
unchanged weather claims and a slightly lower
run-off result. Large claims of 0.7% were booked
in the Danish business driven by a significant fire
in a Copenhagen suburb. Large claims are rather
unusual in the Private segment. The underlying
claims ratio deteriorated slightly due to increased
claims costs in travel insurance and further robust
top-line growth, which initially dampens profitabil-
ity. Travel insurance claims increased throughout
the year as travel activity picked up significantly
following two years of COVID-19. Many house-
holds displayed a changed travel pattern with
fewer but more expensive trips as opposed to
more activity during the year. Inflation continued
to increase throughout the year and Tryg is con-
tinuously monitoring developments and adjusting
prices accordingly. It is important to emphasise
that the full impact of the price adjustments will
only be visible in the P&L after 12-24 months. In
the long term, the price adjustments will match
claims inflation, but there may be some slightly
more volatile developments in the short-term.
The business area accounts for 65% of
the group’s total premium income.
65%
Key gures – Private
DKKm Q4 2022
Q4 pro-
forma 2021
Q4 reported
2021 2022 2021
Gross premium income 5,847 5,622 3,840 21,960 15,386
Gross claims -3,937 -3,829 -2,628 -14,915 -10,518
Gross expenses -768 -724 -464 -2,961 -2,087
Profit/loss on gross business 1,142 1,069 748 4,084 2,781
Profit/loss on ceded business -111 -69 -64 -358 -267
Insurance technical interest, net of
reinsurance 42 -4 -4 86 -18
Technical result 1,073 997 681 3,813 2,496
Run-off gains/losses, net of
reinsurance 58 0 95 338 372
Key ratios
Premium growth in local currencies (%) 7.4
a)
9.0 6.3
a)
9.0
Gross claims ratio 67.3 68.1 68.4 67.9 68.4
Net reinsurance ratio 1.9 1.2 1.7 1.6 1.7
Claims ratio, net of ceded business 69.2 69.3 70.1 69.5 70.1
Gross expense ratio 13.1 12.9 12.1 13.5 13.6
Combined ratio 82.4 82.2 82.2 83.0 83.7
Combined ratio exclusive of run-off 83.4 82.2 84.6 84.6 86.1
Run-off, net of reinsurance (%) -1.0 0.0 -2.5 -1.5 -2.4
Large claims, net of reinsurance (%) 0.3 0.0 0.0 0.7 0.1
Weather claims, net of reinsurance (%) 2.1 1.3 2.5 1.9 2.2
a)
Based on pro-forma figures.
Annual report 2022 | Tryg A/S | 25
Management’s review - Contents
Expenses
The expense ratio was more or less unchanged
with 13.5 (13.6), reflecting tight cost control
relative to a rather high premium growth but
also re-investments in commercial develop-
ment, particularly in Sweden.
Results Q4 2022
In Q4, Private reported a technical result of
DKK 1,073m (DKK 997m) with a combined
ratio of 82.4 (82.2). The higher premium level
had a positive impact on the result together
with the higher level of interest rates. The
underlying claims ratio deteriorated slightly
due to continued growth, while a spike in travel
insurance claims was reported for the quarter.
Additionally, the quarter also witnessed harsh-
er weather conditions, primarily in Denmark
and Norway, compared to an unusually low
level in Q4 2021.
Premiums
Gross premium income increased by 7.4%
(3.4% excluding bonuses and premium
rebates). In Q4, Tryg reported continuing high
levels of premium growth with drivers being
similar to the ones described for the full-year
development.
Claims
The claims ratio, net of reinsurance was 69.2
(69.3). It was positively impacted by a higher
level of run-off gains by 1.0 (0.0) due to a
strong reserving position in the Swedish motor
business, offset by higher weather claims 2.1
(1.3) due to severe rain and snowfall in both
Denmark and Norway. The underlying claims
ratio slightly deteriorated by 0.3, driven by
increased claims costs for travel insurance. In
addition, a robust top-line development also
weighed negatively, as new business displays
lower profitability compared to the back book.
Inflation levels continued to increase during
the quarter, and claims costs in private proper-
ty and motor, in particular, have increased due
to higher building costs and higher prices on
spare parts for cars.
Expenses
The expense ratio was 13.1 (12.9) deteriorated
slightly but the comparison figures for 2021
included a lower expenses ratio from Trygg-
Hansa due to the lack of a periodisation effect.
7.4% 1,073m 13.1 82.4
Premium growth
(local currencies)
Based on
pro-forma figures
Technical result
(DKK)
Q4 2021: 997m
Expense ratio
Q4 2021: 12.9
Combined ratio
Q4 2021: 82.2
Q4 Financial highlights 2022
Annual report 2022 | Tryg A/S | 26
Management’s review - Contents
Commercial
Results 2022
Commercial posted a technical result of DKK
1,670m (DKK 850m in 2021) and a combined
ratio of 80.5 (83.8). The higher technical result
was mainly driven by the inclusion of Codan
Norway and Trygg-Hansa creating a larger Com-
mercial business segment. The result was also
supported by a growth in the Commercial area,
particularly in Denmark and Sweden, for the new
enlarged group and a strong improvement in the
underlying claims ratio.
Premiums
Gross premium income totalled DKK 8,350m
(DKK 5,294m), representing a 5.1% increase
when measured in local currencies and compa-
rable figures. Commercial Denmark reported
growth of 9.1%, driven by both organic growth
and price adjustments to mitigate inflation. In
Sweden, Trygg–Hansa reported a growth of
more than 13%, driven by strong sales and price
adjustments. In Norway, premiums decreased
by 8.1% due to transfer of business from the
Codan Norway portfolio to Corporate Norway.
Adjusted for this transfer, Tryg saw a growth
in Commercial Norway of 3.1%, driven by
price hikes for larger commercial customers.
In general, Tryg reported strong development
in Denmark, with a net inflow of customers
supported by many initiatives, such as high level
of sales of tailored packages. In Norway, growth
was primarily based on high acceptance of price
adjustments and sale of packages. The retention
rate for Denmark was 88.0 (88.6) and relatively
stable during the year, but slightly impacted
from customer reaction to price adjustments to
mitigate inflation. In Norway, the retention rate
was relatively stable at 89.0 (89.4), which was
positive in a period with significant initiative to
improve profitability and mitigate inflation. In
Sweden retention remained stable at 88.5 (89.0).
Claims
The claims ratio, net of ceded business, was
64.3 (66.6). Tryg registered a higher level of
large and weather claims overall compared to
2021 and what is expected in an average year.
The run-off level was somewhat higher at 6.7%
(5.8%), reflecting a strong reserving position.
The underlying claims level improved and was
particularly helped by price initiatives in Norway
targeting Commercial customers and also a gen-
eral focus in all countries on smaller commercial
customers. Inflation increased significantly
during 2022 to levels not experienced in more
than four decades, but this has been mitigated
through procurement agreements and price
adjustments. The claims ratio was also impacted
by much higher discounting that was driven by
the significantly higher level of interest rates in
2022.
Expenses
The expense ratio was 16.3 (17.2). The lower
expense ratio level was impacted by the strong
growth in recent years supporting economies
of scale. Tryg’s initiative is aimed at improving
expense levels in Commercial Denmark through
the independent sales agents and high sales
of product packages positively affecting the
5.1% 1,670m 16.3 80.5
Premium growth
(local currencies)
Based on
pro-forma figures
Technical result
(DKK)
2021: 850m
Expense ratio
2021: 17.2
Combined ratio
2021: 83.8
Financial highlights 2022
The business area accounts for 25% of
the group’s total premium income.
25%
DKKm Q4 2022
Q4 pro-
forma 2021
Q4 reported
2021 2022 2021
Gross premium income 2,292 2,264 1,352 8,350 5,294
Gross claims -1,506 -1,317 -910 -5,239 -3,334
Gross expenses -384 -440 -267 -1,360 -913
Profit/loss on gross business 402 507 175 1,752 1,048
Profit/loss on ceded business 30 -159 -66 -126 -191
Insurance technical interest, net of
reinsurance 20 -1 -1 44 -7
Technical result 452 347 109 1,670 850
Run-off gains/losses, net of
reinsurance 203 161 77 560 309
Key ratios
Premium growth in local currencies (%) 4.1
a)
5.1 5.1
a)
6.1
Gross claims ratio 65.7 58.2 67.3 62.7 63.0
Net reinsurance ratio -1.3 7.0 4.9 1.5 3.6
Claims ratio, net of ceded business 64.4 65.2 72.2 64.3 66.6
Gross expense ratio 16.7 19.4 19.7 16.3 17.2
Combined ratio 81.1 84.6 91.9 80.5 83.8
Combined ratio exclusive of run-off 90.0 91.7 97.6 87.2 89.6
Run-off, net of reinsurance (%) -8.9 -7.1 -5.7 -6.7 -5.8
Large claims, net of reinsurance (%) 8.8 4.6 5.6 7.2 3.4
Weather claims, net of reinsurance (%) 2.6 0.2 1.1 1.7 1.5
a)
Based on pro-forma figures.
Key gures – Commercial
Annual report 2022 | Tryg A/S | 27
Management’s review - Contents
4.1% 452m 16.7 81.1
Premium growth
(local currencies)
Based on
pro-forma figures
Technical result
(DKK)
Q4 2021: 347m
Expense ratio
Q4 2021: 19.4
Combined ratio
Q4 2021: 84.6
Q4 Financial highlights 2022
expense ratio level. In Sweden, there was a
strong focus on investing in digital solutions
to support customer interactions. In Norway,
as mentioned, pricing initiatives for large
Commercial customers were widely accept-
ed, which also had a positive impact on the
expense ratio level. The integration of Codan
Norway into the Norwegian business had
an additional positive impact on the level of
expenses.
Results Q4 2022
The technical result was DKK 452m (DKK
347m) with a combined ratio of 81.1 (84.6).
The result was positively impacted by an
underlying improvement, especially in Norway,
and negatively impacted by a higher level
of weather claims at 2.6% (0.2%) and an
increased level of run-offs at 8.9% (7.1%). Pre-
miums increased by 4.1% but were impacted
by the transfer of business from Commercial
Norway to Corporate Norway. Adjusting for
this transfer the growth rate was at 7.4%
Premiums
Gross premiums increased by 4.1% in local
currencies, primarily due to increased cus-
tomer numbers in Denmark, organic growth in
Norway and price adjustments in Norway. As
mentioned, growth was negatively impacted
by the transfer of Customers from Commercial
Norway to Corporate Norway. Excluding this,
growth in Commercial Norway was 7.4%.
Claims
The gross claims ratio was 65.7 (58.2) with
a claims ratio, net of ceded business, of 64.4
(65.2). The claims ratio was impacted by a
higher level of weather claims and a more or
less unchanged level of run-offs compared to
the prior-year period.
Expenses
The expense ratio was 16.7 and hence much
lower than the comparison figure of 19.4. It
was positively impacted by economies of scale
and synergy initiatives connected to the RSA
Scandinavia transaction particularly those
related to the integration of Codan Norway.
Annual report 2022 | Tryg A/S | 28
Management’s review - Contents
Corporate
5.4% 694m 12.7 81.4
Premium growth
(local currencies)
Based on
pro-forma figures
Technical result
(DKK)
2021: 361m
Expense ratio
2021: 11.4
Combined ratio
2021: 89.4
Financial highlights 2022
Results 2022
The technical result amounted to DKK 694m
(DKK 361m in 2021) with a combined ratio of
81.4 (89.4). The much higher technical result
is primarily due to positive developments in
the underlying claims ratio, primarily due to
significant profitability initiatives in all countries
combined with a rebalancing of the portfolio
with lower level of international high-risk expo-
sure. Furthermore the result was impacted by
a much higher level of run-off at 13.3% (8.2%)
partly offsetting a higher level of large claims
at 10.8% (6.6%). Premium growth was 5.4%
(0.3%), impacted by the transfer from Commer-
cial Norway to Corporate Norway. Excluding
this transfer, premium growth was negative at
approximately 1%.
Premiums
Gross premium income totalled DKK 3,628m
(DKK 3,457m), representing an increase of 5.4%
when measured in local currencies. Adjusted for
the transfer from Commercial Norway, growth
was negative at approximately 1%, as men-
tioned. Tryg has a strong focus on rebalancing
its portfolio to reduce large claim exposure by
reducing international exposure to property and
liability.
Claims
The claims ratio, net of ceded business, was
68.7 (78.0). The level of large claims was 10.8%
(6.6%), weather claims were 1.0% (1.1%) and
the run-off level was higher at 13.3% (8.2%).
Tryg continued to see an improved underlying
claims level driven by profitability initiatives in
current and previous years in all countries. In
2022, there has been a strong focus on reducing
volatility by reducing international exposure to
international property and US liability. Going for-
ward, these initiatives will going forward improve
profitability and reduce the capital requirement.
Expenses
The expense ratio of 12.7 (11.4) was slightly
higher than the prior-year period, but still at a
satisfactory level.
The business area accounts for 10% of
the group’s total premium income.
10%
Key figures – Corporate
DKKm Q4 2022
Q4 pro-
forma 2021
Q4 reported
2021 2022 2021
Gross premium income 903 850 850 3,628 3,457
Gross claims -531 -691 -691 -2,253 -2,423
Gross expenses -140 -116 -116 -462 -396
Profit/loss on gross business 231 42 42 912 638
Profit/loss on ceded business -75 -5 -5 -239 -273
Insurance technical interest, net of
reinsurance 8 -1 -1 21 -4
Technical result 164 36 36 694 361
Run-off gains/losses, net of
reinsurance 96 60 60 482 282
Key ratios
Premium growth in local currencies (%) 9.2 -2.5 5.4 0.3
Gross claims ratio 58.8 81.4 81.4 62.1 70.1
Net reinsurance ratio 8.3 0.6 0.6 6.6 7.9
Claims ratio, net of ceded business 67.1 82.0 82.0 68.7 78.0
Gross expense ratio 15.5 13.7 13.7 12.7 11.4
Combined ratio 82.7 95.7 95.7 81.4 89.4
Combined ratio exclusive of run-off 93.3 102.8 102.8 94.7 97.6
Run-off, net of reinsurance (%) -10.6 -7.1 -7.1 -13.3 -8.2
Large claims, net of reinsurance (%) 7.4 10.3 10.3 10.8 6.6
Weather claims, net of reinsurance (%) 2.8 1.3 1.3 1.0 1.1
Annual report 2022 | Tryg A/S | 29
Management’s review - Contents
Results Q4 2022
The technical result was DKK 164m (DKK
36m) with a combined ratio of 82.7 (95.7).
The results were positively impacted by an im-
proved underlying claims ratio and a reduced
level of large claims as well as a higher run-off
level. Premium growth, adjusted for the trans-
fer in Norway, was negative and impacted by
the mentioned de-risking initiatives and price
increases to improve profitability and mitigate
inflation.
Premiums
Gross premiums were flat after adjusting for
the transfer of business from Commercial Nor-
way that was related to former Codan Norway
customers. This was due to a continued focus
on reducing exposure to property and liability
related to international customers as well as
price initiatives in all countries to improve
profitability and mitigate inflation. Corporate
Denmark saw a growth but only due to a
adjustment in premiums for Q4 2021 resulting
in lower comparable figures. Adjusting for this,
the growth for the Corporate segment would
be flat.
Claims
The gross claims ratio was 58.8 (81.4) and the
claims ratio, net of ceded business, was 67.1
(82.0). The lower claims ratio was impacted by
profitability initiatives, reduced international
exposure, the lower level of large claims and
a much higher level of run-off. The underlying
claims ratio improved as a result of the above
initiatives in Norway, Denmark and Sweden.
Expenses
The expense ratio was 15.5 (13.7) and some-
what higher than in Q4 2021, which did not,
however, represent a trend, but rather some
volatility in expenses for this quarter.
9.2% 164m 15.5 82.7
Premium growth
(local currencies)
Based on
pro-forma figures
Technical result
(DKK)
Q4 2021: 36m
Expense ratio
Q4 2021: 13.7
Combined ratio
Q4 2021: 95.7
Q4 Financial highlights 2022
Annual report 2022 | Tryg A/S | 30
Management’s review - Contents
Investment activities
Capital markets experienced highly challenging
developments in 2022. Geopolitical tensions
were and remain very high following Russia's in-
vasion of Ukraine. The year also saw the return of
inflation to levels not seen for forty years, while
central banks have been rapidly increasing inter-
est rates trying to tame this development. This all
points to a difficult start for 2023, with a majority
of analysts expect some form of economic con-
traction in the most advanced economies.
The total market value of Tryg’s investment
portfolio was DKK 63bn at year-end 2022. The
investment portfolio consists of a match portfolio
(which matches the insurance liabilities and is
constructed to minimise capital consumption)
of DKK 45bn and a free portfolio (the net asset
value of the company) of DKK 18bn.
The full-year figures for investment return are
partly blurred by RSA Scandinavia operations
not being consolidated in Q1 and the net result
for the quarter therefore being included in the
investment result (equity accounting). In addition,
some one-offs related to the net effect of the
demerger and sale of Codan Denmark impacted
the investment figures in the second quarter.
These two items almost offset each other, with a
total positive impact of DKK 34m.
The investment return for the full year was DKK
-1,193m (DKK 870m), which represents the
sum of the company’s investment return of DKK
-1,227m and the aforementioned income from
RSA Scandinavia of DKK 34m. The free portfolio
showed a result of DKK -945m (DKK 869m) after
a year of high volatility and challenging capital
markets conditions across nearly all asset classes
while the match portfolio reported a result of
DKK 58m (DKK 134m), primarily driven by nar-
rowing Nordic covered bond credit spreads and a
decreasing DK-EU yield spread. H1 was primarily
characterised by widening credit spreads and
an increasing DK-EU yield spread, while H2 and
especially Q4 were characterised by more posi-
tive markets and narrowing credit spreads, with
the DK-EU yield spread contributing to a positive
Match portfolio result for the full-year.
Other financial income and expenses totalled
DKK -340m (DKK -304m), the higher level
(compared to full year 2021) primarily driven
by somewhat higher interest expenses on
subordinated loans and the Q3 negative value
adjustment on the Trygg-Hansa inflation swap.
Free portfolio
Financial markets have experienced a highly
challenging year. Geopolitical tensions were
at the highest level in recent memory, with
Russia'a invasion of Ukraine bringing war back
to the doorstep of Europe following two years
characterised by the COVID-19 pandemic.
Supply chain issues prompted by the pandemic
led to bottlenecks in the most advanced econo-
mies, while energy costs increased sharply fol-
lowing the Russian invasion of Ukraine. All this
contributed to a huge spike in inflation to levels
not seen in the last forty years. Central banks
have rapidly and repeatedly increased interest
rates to try to tame the inflation development.
Against this challenging backdrop, equity valu-
ations have fallen, interest rates have increased
Financial highlights 2022
-945m
Free portfolio
(DKK)
58m
Match portfolio
(DKK)
-1,193m
Total investment return
(DKK)
Key figures - investments
DKKm Q4 2022 Q4 2021 2022 2021
Free portfolio, gross return 205 275 -945 869
Match portfolio, regulatory deviation and
performance 168 30 58 134
Other financial income and expenses -37 -70 -340 -304
Income from RSA Scandinavia -19 568 34 1,206
Currency hedge related to RSA Scandinavia 0 0 0 -1,035
Total investment return 317 803 -1,193 870
Return - match portfolio
DKKm Q4 2022 Q4 2021 2022 2021
Return, match portfolio 438 -47 -2,433 -332
Value adjustments, changed discount rate 90 104 3,419 528
Transferred to insurance technical interest -360 -27 -928 -62
Match, regulatory deviation and performance 168 30 58 134
Hereof:
Match, regulatory deviation 77 16 218 78
Match, performance 91 14 -160 56
Annual report 2022 | Tryg A/S | 31
Management’s review - Contents
Q4 Financial highlights 2022
317m
Total investment return
(DKK)
205m
Free portfolio
(DKK)
168m
Match portfolio
(DKK)
and property markets have started to weaken.
Tryg’s free portfolio produced a total result of
DKK -945m (DKK 869m), all main asset classes
but properties produced negative returns. Tryg’s
equity portfolio reported a return of -15.7%
(18.9%), corporate bonds (a small asset class
for Tryg) reported a –15.4% (0.3%) return, while
properties reported a 10.4% (12.5%) return. The
free portfolio totalled DKK 18bn at the end of
2022.
Match portfolio
The match portfolio of DKK 45bn is primarily
made up primarily by Nordic covered bonds for
the purpose of matching insurance liabilities
while keeping capital consumption low. The result
of the match portfolio is the difference between
the match portfolio and the amount transferred
to the technical result. The result can be split
into a “regulatory deviation” and a “performance
result”. The “regulatory deviation” reported a
positive contribution of DKK 218m (DKK 78m)
due to a smaller difference between Danish and
European yields. For example, the 10-year swap
yield spread between DK and EU has decreased
from 22 basis points to 11 basis points. The
“performance” result was DKK -160m (DKK 56m)
despite a positive contribution in Q4. This was be-
cause of widening Nordic covered bond spread,
earlier in the year, which hit the performance
negatively.
Other financial income and expenses
Other financial income and expenses mainly
include interest expenses related to outstanding
subordinated debt, the cost of currency hedges
to protect shareholders’ equity, the cost of run-
ning the investment operations and other general
costs. Other financial income and expenses
totalled DKK -340m (DKK -304m). The higher
level compared to 2021 is primarily driven by
the value adjustment on the Swedish inflation
swap booked in Q3 and a generally higher level of
interest rates that increase the interest expenses
on the subordinated loans (DKK 151m vs DKK
107m).
Investment result in Q4 2022
The final quarter of the year was characterised
by positive developments in the financial mar-
kets, equity markets performed well and interest
rates dropped after a steep increase in the first
nine months of the year.
The free portfolio posted a total income of DKK
205m (DKK 275m), primarily driven by equities
and fixed income securities while properties pro-
duced a negative return. Tryg’s equity portfolio
returned 6.6% (5.9%) for the quarter, helped by
a more stable picture of inflation developments
and a more dovish message from central banks
when it comes to interest rates development
in 2023. Interest rates fell in Q4 2022, driving a
positive performance by covered and corporate
bonds. Properties posted a negative return after
a long period of contributing positively.
The match portfolio returned a positive DKK
168m (DKK 30m) with contributions from both
the regulatory deviation and the performance
result. Danish provisions are discounted by euro
swap rates but hedged by a combination of euro
and Danish assets. A decreasing yield spread
means a positive contribution to the regula-
tory deviation. Nordic covered bond spreads
narrowed in the final quarter of the year, thus
producing a positive performance.
Other financial income and expenses were DKK
-37m (DKK -70m), broadly in line with expecta-
tions.
Return - free portfolio
Investment assets
DKKm Q4 2022 Q4 2022 (%) Q4 2021 Q4 2021 (%) 2022 2022 (%) 2021 2021 (%) 31.12.2022 31.12.2021
Bonds 82 1.4 -7 -0.2 -427 -7.5 -35 -0.9 6,034 3,896
Corporate and Emerging Market Bonds 96 3.3 -11 -0.5 -420 -15.4 5 0.3 2,979 2,154
Investment grade credit 34 3.1 -7 -0.9 -155 -15.4 2 0.3 1,199 784
Emerging market bonds 34 3.5 -5 -0.7 -120 -15.2 -1 0.0 1,039 709
High-yield bonds 28 3.4 1 0.1 -144 -15.4 4 0.7 742 661
Diversifying Alternatives
a)
-64 -5.2 -16 -1.6 -40 -3.3 -10 -1.0 1,239 1,021
Equity 216 6.6 157 5.9 -525 -15.7 506 18.9 3,182 2,710
Real Estate -125 -2.8 152 5.0 467 10.4 403 12.5 4,222 3,233
Total 205 1.2 275 2.2 -945 -5.8 869 7.0 17,656 13,014
a)
Diversifying Alternatives consist of CAT Bonds and hedging instruments.
Annual report 2022 | Tryg A/S | 32
Management’s review - Contents
Capital and risk management
Risk management is a key function at Tryg. The
assessment and management of Tryg’s aggre-
gated risk and associated capital requirement
constitute a core element in the management of
the company.
Tryg’s risk management is based on the targets
and strategy and the risk exposure limits decided
by the Supervisory Board.
Strategic and business risk
Definition Strategy Risk Management Objectives and methods
Financial losses or lost opportu-
nities due to a lack of ability to
carry out business plans and
strategies.
This includes the risk of not
being able to adjust to changing
market conditions in a timely
fashion.
Tryg is one of the most successful non-life insurance com-
panies in Scandinavia.
The current strategy (as presented at the Capital Markets
Day in November 2021) is to a large degree to continue
down this path.
Tryg has chosen to implement a highly decentralised orga-
nisation with a large degree of autonomy for each business
unit. This ensures a timely reaction to changing market
conditions in the separate business units.
The risk management policy adopted by the Supervisory
Board sets out guidelines for risk management.
The strategy process sets out overall strategic objectives.
This is done as a bottom-up process where the individual
business units contribute with concrete business plans.
Risk management carries out ongoing risk identification
and assessment to ensure that all existing and emerging
strategic and business risks are reported to the Supervisory
Board on a semi-annual basis.
Close monitoring of each business unit with regard to their
performance towards the overall strategic objectives.
Tryg’s Supervisory Board defines the framework
for the company’s target risk appetite and there-
by the capital which must be available to cover
any losses. The company’s risk management
is based on four risk categories: Strategic and
business risk, Insurance risk, Investment risk and
Operational risk. A detailed description of these
can be found in the tables below.
Annual report 2022 | Tryg A/S | 33
Management’s review - Contents
Insurance risk
Definition Strategy Risk Management Objectives and methods
The risk that insurance premi-
ums are insufficient to cover the
compensation and other costs
associated with the insurance
business.
The risk of the insurance provisi-
ons being inadequate.
Taking on insurance risk is the cornerstone of Tryg's busi-
ness model. It is therefore naturally the area where Tryg
has the largest risk appetite.
Tryg's main focus is to write primarily non-life insurance
business in Scandinavia. The Private and Commercial busi-
nesses (SMEs) are considered the most attractive seg-
ments.
The insurance portfolio should be well-diversified and pro-
fitable with an overweight on the retail segment. Increased
focus on the retail segment in the coming years will help to
mitigate insurance risk, as this segment is typically less
complex and also drives value creation.
Tryg has a conservative approach to claims provisioning.
The insurance risk policy adopted by the Supervisory Bo-
ard sets out general guidelines for permitted insurance risk.
This includes guidelines for provisioning, general underwri-
ting principles, new products, profitability measuring,
reinsurance, etc.
Capital Markets Day targets for ROOF and UW results set
the overall ambition for profitability versus capital con-
sumption (measure of unexpected risk).
Day-to-day monitoring of developments in the insurance
business (premium growth, underlying profitability, capital
consumption, etc.) is key to ensuring development in line
with desired risk appetite.
Reinsurance is used to reduce the underwriting risk in situ-
ations where this cannot be achieved to a sufficient degree
via ordinary diversification. The retention limit specifies the
maximum loss that Tryg is willing to take on a specific
event. The capacity of the reinsurance programme is set so
that it is very unlikely that a breach will occur. Both the re-
tention limit and the capacity are approved by the Supervi-
sory Board.
The internal model used to calculate the solvency capital
requirements in Solvency II are used to allocate capital
consumption to the business and thereby ensure sufficient
profitability in the insurance business.
The actuary function calculates the technical provision ba-
sed on the guidelines set out in the insurance risk policy.
These are regularly presented to the Supervisory Board.
Investment risk
Definition Strategy Risk Management Objectives and methods
Financial losses due to changes
in the value of financial assets or
liabilities.
Tryg has decided to divide its investment assets into the
free portfolio and the match portfolio.
The strategy for the match portfolio is to mitigate interest
rate risk from provisions.
The strategy for the free portfolio is to achieve the optimal
market return on a medium-term basis taking risk, liquidity,
etc. into account.
The investment risk policy adopted by the Supervisory Bo-
ard sets out general guidelines for permitted investment
risk. This includes specific maximum limits for
• asset classes
• interest rate risk
• currency risk
• credit risk
• counterparty exposure
• SCR market risk
Daily reporting on investment return on all asset classes.
Independent daily control ensures compliance with per-
mitted risk-taking.
Annual report 2022 | Tryg A/S | 34
Management’s review - Contents
Operational risk
Definition Strategy Risk Management Objectives and methods
Risk here relates to errors or
failures in internal procedures,
fraud, breakdown of infrastruc-
ture, IT security and similar fac-
tors.
The Supervisory Board sets out the overall strategy regar-
ding operational risk.
The operational risk policy adopted by the Supervisory Bo-
ard sets out general guidelines for operational risk. This in-
cludes general guidelines for IT security, physical security,
compliance, fraud, money laundering, contingency plan-
ning, and model risk.
Ongoing identification, assessment and reporting on risks
and any incident that has imposed a loss or a near loss on
Tryg.
Capital management
Capital management and capital modelling are
central and key functions of the Finance team at
Tryg. Capital management broadly covers the
company’s current and future capital require-
ments, capital allocation to the different lines
of business and required returns. In addition,
capital management analyses the dividend
outlook and the ability of the company to meet
its return on own funds target (previously return
on equity). Tryg’s solvency ratio is a function of
developments in own funds and the solvency
capital requirement (based on the approved
partial internal model). As mentioned previously,
Tryg has modelled the insurance risk internal-
ly, while all other modules are based on the
standard formula. The capital model is based on
Tryg’s risk profile and takes into consideration
the composition of Tryg’s insurance portfolio,
geographical diversification, its claims reserves
profile, reinsurance programme, investment mix
and overall level of profitability. The solvency
ratio was 201 at year-end 2022 compared to
188 at year-end 2021.
The key components of Tryg’s own funds are
shareholders’ equity, qualifying debt instru-
ments (both Tier 1 and Tier 2 debt) and future
profit, while all intangibles are deducted in the
calculation. Own funds totalled DKK 16,012m at
the end of 2022 vs DKK 18,559m at the end of
2021. The downward movement was primarily
driven by the difference between net result for
the year minus dividends paid and additionally
from the sale of Codan Denmark (as 50% of
Codan Denmark’s own funds were included in
Tryg’s own funds). The net result for the year has
been burdened by challenging capital markets
conditions and also by the planned booking of
integration costs.
The solvency capital requirement (SCR) is
calculated in such a way that Tryg should be
able to honour its obligations in 199 out of 200
years and is regularly stress-tested. At the end of
2022, Tryg’s SCR was DKK 7,966m, down from
DKK 9,866m at the end of 2021. The lower level
is explained by the sale of Codan DK (whose
50% capital requirement corresponding to the
ownership was included in Tryg's SCR) and by
a sharp correction in equity markets during
the year, which resulted in a lower market risk
capital charge.
Tryg’s solvency ratio continues to display low
sensitivity towards movements in the capital
Annual report 2022 | Tryg A/S | 35
Management’s review - Contents
* Calculated excluding Tryg's own shares
markets. Fixed-income securities represent
some 90% of Tryg’s invested assets, so the
highest solvency sensitivity is therefore towards
spread risk, where a widening/tightening of 100
basis points would impact the solvency ratio
by approximately 20 percentage points. Lower
sensitivity is displayed towards equity market
losses and interest rate fluctuations.
Shareholders’ remuneration
The Supervisory Board regularly assesses
the capital structure in light of future internal
earnings forecasts and balance sheet needs.
The projections include initiatives set out in the
company’s strategy for the coming years
and are also based on the most significant risks
identified by the company. Capital adequacy is
measured in relation to Tryg’s strategic targets,
including the new return on own funds target
(ROOF) and the dividend policy. Tryg will pay a
Q4 dividend per share of 1.60 on 31 January
2023 after having paid a dividend for the first
nine months of 4.69 per share bringing the total
for the full year to 6.29 per share. The quarterly
dividend in 2022 has been tailored to cater for
the ongoing reduction in the number of shares
due to the DKK 5bn buyback programme
started at the beginning of May. As per end of
2022 approximately DKK 3.2bn out of the total
DKK 5bn has been bought back. The buyback
was announced following the sale of Codan
Denmark to Alm.Brand and related proceeds.
TryghedsGruppen, Tryg’s largest shareholder,
is not participating in the buyback in order to
facilitate an overall increased ownership of
Tryg following the acquisition of RSA Scandi-
leverage. Moody’s also assigned an “A3” rating
to Tryg’s subordinated debt and a “Baa3” rating
to Tryg’s Tier 1 debt. The ratings were reaffirmed
following the completion of the acquisition by
Tryg and Intact Financial Corporation (Intact) to
acquire RSA Insurance Group Pls (RSA), whereby
Tryg would acquire RSA’s Swedish and Norwe-
gian operations. Moody’s expects the acquisition
to further increase and broaden Tryg’s earnings
base in the long term. Furthermore, Tryg’s lever-
age will reduce materially in the short term.
navia. TryghedsGruppen owns 46.5%* of the
shares with the on-going buyback facilitating an
increased ownership level towards the stated
50% plus target. At the Capital Markets Day
in London in November 2021, Tryg refined its
dividend policy going forward. Tryg continues
to aim to offer a nominally stable and increas-
ing ordinary dividend on an annual basis. The
targeted payout ratio of 60- 90% (based on
operating earnings) is secondary to the aim of
increasing the annual dividend.
Moody’s rating
Tryg has an “A1” (stable outlook) insurance fi-
nancial strength (IFSR) rating from Moody’s. The
rating agency highlights Tryg’s strong position in
the Nordic P&C market, robust profitability, very
good asset quality and relatively low financial
Solvency ratio development
(%)
Q3
2022
198
Q4
2022
201
Q4
2021
188
Q1
2022
184
Q2
2022
195
Solvency Capital Requirement
(DKKm)
Q4 2021 Q4 2022
7,966
9,866
2021 2022
Own funds
(DKKm)
Q4 2021 Q4 2022
18,559
16,012
2021 2022
Shareholder remuneration
(DKK per share)
2018 2019 2020 2021* 2022
in millions
(DKK)
Buyback
Comlpeted Remaning
Ordinary dividend Extraordinary
dividend
1.65
6.8
1.786
5,000
3.214
6.6
7.0
4.28
6.29
* Calculated on the new 654m number of shares
following the DKK 37bn rights issue to fund the
RSA Scandinavia acquisition
Annual report 2022 | Tryg A/S | 36
Management’s review - Contents
This section introduces Tryg’s approach
and work with sustainability & ESG. The
statutory independent and comprehensive
sustainability report is available at tryg.com
Sustainability & ESG
Tryg has changed the name of its Corporate Responsibil-
ity de partment to Sustainability & ESG. This is in line with
the focus on creating a sustainable business that delivers
on financial as well as environmental, social and govern-
ance parameters, and is intended to signal more clearly
to stakeholders that this is an integrated part of how we
operate and conduct the business.
ESG &
Sustainability
Tryg’s Sustainability report composes Tryg’s
Communication on Progress (COP) report and
includes an ESG data overview of Tryg’s key
performance indicators, Tryg’s climate reporting
in line with Insurance & Pension Denmark’s
industry recommendations, Tryg’s reporting on
EU Taxonomy-eligible and non-eligible econom-
ic activities as well as Tryg’s climate-related
disclosure in line with the TCFD (Task Force on
Climate-related Financial Disclosures) recom-
mendations.
Download Sustainability report at www.
tryg.com/en/sustainability/reporting
Strategy, materiality and governance
Tryg’s 2024 Sustainability strategy, ‘Driving sus-
tainable impact’, guides its priorities and targets.
Under three focus areas – Sustainable insurance,
Responsible company, and Green workplace
– the purpose of the strategy is to ensure that
sustainability is integrated across all of Tryg. The
sustainability and KPIs are an integrated part of
Tryg’s corporate strategy. Due to a strong market
position and the nature of the value chain, Tryg
can enable and support its customers and part-
ners on their respective sustainability journeys.
The upstream/downstream value chain is where
most of the impact is, and where Tryg can make
the biggest positive difference by working togeth-
er with the customers and suppliers. Tryg can
have a significant impact in reducing its indi-
rect climate impact by preventing claims from
happening in the first place, and when claims
do happen, together with the suppliers, Tryg is
able to handle them in the most climate-friendly
manner.
Download Sustainability policy at www.
tryg.com/en/dokumenter/trygcom/corpo-
rate-reponsibility-policy
Tryg’s Sustainability & ESG Board drives Tryg’s
strategic direction in the Sustainability and ESG
area. The Board is chaired by the Group CFO
and is composed of Vice Presidents from key
functions to ensure that Sustainability and ESG
are effectively anchored across the organisation.
Download Terms of reference for Sustain-
ability & ESG Board at www.tryg.com/en/
CR/cr-governance
Annual report 2022 | Tryg A/S | 37
Management’s review - Contents
Overview of 2022
The table illustrates targets and performance of Tryg's Sustainability & ESG
strategy and efforts. For specific data, please see extensive ESG data on
pages 42-46 in the Sustainability report.
The table outlines Tryg's Sustainability targets and 2022 performance.
Sustainable insurance Responsible company Green workplace
Sustainable claims handling
page 12
Responsible procurement
page 18
Responsible investment
page 19
Diverse workplace
page 26 page 31
2024 targets 2022 2024 targets 2022 2024 targets 2022 2024 targets 2022
• 80% increase in sustai-
nable spend
1
• 20,000 – 25,000 tonnes
CO2e reduction from
more sustainable claims
handling
59%
15,449
Sustainability screening of
suppliers
• Up to 90% of contract
suppliers
• Up to 100% of contract
suppliers within claims
High supplier performance for
screened suppliers
• Up to 50% of contract
suppliers
• 70% of contract suppliers
within claims
43%
50%
N/A
3
• 41% women in management
positions
• 33% women at top management
level
• 41% women at director level
40.5%
25%
31%
• 35% CO2 reduction
• 58% CO2 reduction from
energy consumption
• 12% CO2 reduction from
waste
• 23% CO2 reduction from
air travel
• 23% CO2 reduction from
car fleet
58%
2
86%
2
31%
34%
-2%
2030 targets 2022 2030 2022
• 50% CO2 intensity reduc-
tion from equity portfolio
• Exclusion of fossil fuel
production companies
with no strategy for green
transition
-16.9%
N/A
• 55% CO2 reduction 58%
2
1
Compared to 2020
2
Market-based
3
Tryg is in the process of developing the critera for supplier performance screening
Strategic focus areaTargets and results
Annual report 2022 | Tryg A/S | 38
Management’s review - Contents
SUSTAINABILITY STRATEGY 2024
Climate and environment – a step change from
within
In 2022, Tryg took an important step towards
making sure that sustainability, climate and the
environment are integrated across the organ-
isation and in all decision-makings, as Tryg in
Denmark was certified according to the ISO
14001 standard and the Eco-Management and
Audit Scheme (EMAS). The certification implies
a highly systematic approach to working with
climate and environment, and will support Tryg
in delivering on the strategy and realising its
ambitions.
Sustainable insurance
Tryg aims to be a proactive peace-of-mind
creator by integrating sustainability elements
into its products and services and enable its cus-
tomers to make more sustainable choices and
push for change. Within sustainable insurance,
Tryg's focus is to further integrate and advance
sustainability in its claims handling process
and ensure that sustainability and prevention
aspects are integrated aspect of its products and
services.
Sustainable products and services
Tryg wants to offer products and services that
can help move society in a climate-friendly and
socially responsible direction.
In Denmark, Tryg has started to introduce
Valified to its Danish commercial customers.
Valified is a platform that, based on usage data,
can provide customers with insights into their
performance across selected ESG (Environ-
mental, Social and Governance) areas. Valified
enables Tryg to support customers in better
understanding and working with their footprint,
and live up to the transparency requirements of
their customers.
In 2022, Trygg-Hansa launched an improved car
insurance product for electrical and hybrid cars
to help customers make sustainable choices
when buying a car. The insurance offers better
machine damage coverage, a deductible dis-
count as well as roadside assistance if their car
runs out of battery.
Another element in building a more sustainable
product portfolio is to further integrate sustain-
ability measures into the underwriting strategy.
During 2022, Tryg has started to assess the
implications of this for specific sectors, while
continuing its focus on impact pricing, preven-
tion, proactive counselling and risk selection.
Further work is required, especially in light of the
EU Taxonomy standards, which will be intensi-
fied during 2023.
Claims prevention
Integrating claims prevention measures into
products and services may prevent claims from
arising in the first place or minimise any damage
or loss that might occur. In addition to the
comfort this provides to customers, it also has
an environmental upside. Claims handling pro-
cesses are often associated with the use of con-
siderable resources and energy. Tryg is working
strategically to prevent claims from arising and
has set a target that a quarter of Tryg’s top-line
growth from new products and services should
be attributed to claims prevention measures by
2024.
Read more on page 16 in Tryg’s
Sustainability report
Sustainable claims handling
With more than 1.5 million claims annually,
integrating sustainability into Tryg’s claims
handling processes is an essential part of the
positive change and contribution to a more
climate-friendly business that Tryg wants to
contribute to. It is also the area where Tryg can
have a significant impact both on customers and
suppliers. Tryg seeks to repair or reuse to the
greatest possible extent in the claims handling
processes. It is not a simple task; it involves
a change of mindset not only in the way Tryg
handles claims, but also in the way suppliers
operate and when it comes to what customers
perceive as valuable. Tryg focus on repairs and
on reducing material usage, while researching
possible ways of reusing or repurposing materi-
als that are reaching the end of their life cycle.
Annual report 2022 | Tryg A/S | 39
Management’s review - Contents
Carbon emission reductions from claims
handling
Tryg’s claims handling activities are the most
carbon-intensive processes across the business.
Replacing broken windshields or car bumpers
might not seem like a carbon-intensive process,
yet, with approximately 97,000 motor-related
claims a year, a significant impact can be made
by thinking in terms of reusing resources. In
2022, Tryg was able to reduce CO emissions by
repairing instead of replacing within motor, by
more than 14,700 tons CO.
In 2022, Tryg assessed the CO emission re-
duction effect of new initiatives such as phone
screen repairs and SWAP options instead of
replacing with new phones, as well as an initia-
tive related to the conservation of foundations
in connection with major building claims instead
of demolition and rebuilding. Across all initia-
tives, Tryg has helped reduce 15,449 tons CO
emissions during 2022 by establishing more
sustainable claims handling processes.
Tryg continues to expand the list of initiatives to
be able to offer a more sustainable solution to a
claim, while maintaining focus on existing initia-
tives. Already identified initiatives include using
spare parts for cars, repairing windshields and
plastic car bumpers instead of replacing them,
phone fix, online support for road assistance,
digital medical or veterinary consultations as
well as remote reviewing of building claims.
Tryg will continue to investigate and implement
more climate-friendly initiatives to support the
target to reduce COe from claims handling
by 20,000–25,000 tonnes in 2024. Critical to
achieving this is collaboration with suppliers to
identify new sustainable initiatives, and to de-
velop new and more climate-friendly solutions
enabling us to expand sustainable business
practices across supply chain.
Classifying claims spend as sustainable
Tryg's supplier spend totals more than DKK
22bn a year. Through specific sustainability
measures, Tryg monitors the supplier-related
spend. For Tryg, it is important to understand
how the spend is used, in order to be able to
act on it and direct it towards more sustainable
practices. Tryg’s ambition is to increase claims
spend classified as sustainable by 80% in 2024
compared to 2020.
By monitoring the suppliers, introducing new
and advancing the existing sustainable initia-
tives, more claims spend will be used towards
sustainable practices. In 2022, Tryg increased its
share of sustainable spend by 59% compared to
base year 2020.
Tryg consistently seeks dialogue and collabora-
tion with the industry to further align reporting
methodologies related to more sustainable
claims handling.
Read more on page 15 in Tryg’s
Sustainability report
Responsible investment
Following the integration of Trygg-Hansa, Tryg’s
investment portfolio is now approximately DKK
63bn, up from approximately DKK 43bn. Tryg
aims to ensure that the portfolio is invested in
a responsible manner and in accordance with
Tryg’s values and ambitions.
Tryg works with responsible investment through
active ownership by voting on shareholder
proposals, engaging with external fund man-
agers, and screening for potential violations of
international conventions.
Download Responsible Investment
Policy at www.tryg.com/en/dokumenter/
trygcom/responsible-investment-policy
Active ownership
Most of Tryg’s investment assets are man-
aged externally and typically held through
commingled fund structures. A key aspect in
ensuring responsible conduct, is therefore via
Tryg’s selection of external funds managers. In
addition to the evaluation performed on external
managers, Tryg emphasize active ownership
as a means to promote shareholder value and
sustainable development whenever possible.
External funds managers are expected to par-
ticipate in and vote at annual general meetings,
and enter into dialogue around ESG topics. Tryg
considers this as key in moving forward on the
agenda. Divestment and exclusion of companies
from the investment portfolio is therefore con-
sidered as a last resort since this will not result in
any positive change.
Tryg’s target is for the external fund managers
to attend and vote at least 90% of the possible
shareholder meetings for the actively managed
equity holdings. In 2022, they actively partici-
pated in 98% of the shareholder meetings. Tryg
continues to monitor and engage in dialogue
with relevant external asset managers on how to
ensure effective practices.
Download Active Ownership Policy at
www.tryg.com/en/dokumenter/trygcom/
active-ownership-policy
Ethical screening process
When investing, Tryg always complies with all
applicable national and international legislation,
international standards and tax code. The com-
pany also seeks to minimise reputational risk,
while maintaining a competitive risk-adjusted
return.
Tryg conducts ethical screenings each year
based on controversial behaviour and controver-
sial weapons. Additionally, an external screening
agency performs regular screenings to make
sure that none of investments have ultimate
parents that are considered unacceptable. If a
violation is identified, there is a formal escalation
process to guide any further steps.
In 2022, the Russian invasion of Ukraine led Tryg
to exclude Russian assets from its investment
universe. The investment managers (equites and
bonds) have divested in line with the Sanction
Regulation.
Download Process for Ethical
Screening at www.tryg.com/en/
dokumenter/trygcom/process- ethical-
screening
The transition to a low-carbon economy
Tryg wants to contribute to the transition to a
low-carbon economy by directing parts of the
portfolio towards investment managers that
focus on reducing carbon emissions by investing
in companies that provide climate change
solutions or that have high potential and clear
commitment to reduce their emissions. The
long-term ambition is to achieve a low-carbon
and fossil-free world by allocating capital where
it makes the biggest impact on current and
future CO emissions. Hence, the strategy is not
Annual report 2022 | Tryg A/S | 40
Management’s review - Contents
to minimize the current level of CO emissions
in the portfolio, but rather to focus on current
and future reduction-potential over time. Tryg
perceives the combination of active ownership
and capital allocation as the most efficient way
to support ambition.
Tryg's target is to reduce the carbon intensity of
the equity portfolio by at least 50% in 2030 com-
pared to prime 2020. While active ownership is
preferred option, Tryg will begin to divest man-
agers with investments in fossil fuel production
companies that have not presented a strategy
for a green transition. This process will begin in
2023 and conclude no later than 2030.
Read more on pages 19 in Tryg’s
Corporate Responsibility report
Climate-related risk and opportunities
The impact of climate change is significant and
a cause of concern for Tryg’s customers and the
society. It is anticipated that physical and tran-
sitional climate-related risks and opportunities
may impact Tryg as a business in both the medi-
um and long terms. Inherent to Tryg’s business
is a strong focus on managing and preventing
claims related to natural events such as flooding
and storms, and there is a continuous focus on
data, methods and practices for managing this.
Extreme weather events such as flooding, cloud-
bursts, storms, rising sea levels and heatwaves
represent physical risks, not only for Tryg, but
also for Private, Commercial and Corporate
customers, and the number of weather-related
claims is increasing within all Tryg’s business
areas. Tryg monitors data available on adverse
climate-related risks and seeks to mitigate such
risks to the greatest possible extent.
Read Tryg’s climate-related disclosure in line
with TCFD (Task Force on Climate-related Finan-
cial Disclosures) reccomendations on page 22 in
Tryg’s Sustainability report
Diverse and inclusive workplace
Tryg is committed to increase the level of diversi-
ty, equality and inclusion across the organisation
and industry. The ambition is to have a diverse
pool of employees and managers with different
backgrounds, skills, age and experience. This is
not only to reflect the society that Tryg is part
of, but also to better understand and match the
changing needs of the diverse customers and
society in general.
Ensuring gender balance in leadership
Tryg has had a strong focus on diversity for sev-
eral years with the aim of increasing the share
of women in management positions to 41%.
The target includes all management levels i.e.,
from team manager to top management4. The
share of women in management positions has
increased slightly from 40.1% in 2021 to 40.5%
in 2022, leaving Tryg very close to the target of
41%. Progress has been driven by a continuous
focus in the recruitment and HR processes, and
in 2022, Tryg has achieved gender balance in
internal and external managerial recruitments,
with 51% female and 49% male.
The financial sector is generally characterised
by low female representation in management
positions, which is a challenge when it comes to
gender diversity. One of the levers to increase
this is through internal talent development and
promotions from the leadership pipeline where
the share of women is higher. Breaking through
the glass ceiling is an important focus area for
Tryg, who is dedicated to creating a better gen-
der balance at the top levels of the organisa tion.
Download Policy for competency and
diversity at www.tryg.com/en/dokument-
er/trygcom/competency-and-diversi-
ty-policy
Engaging employees
Providing a healthy, safe and engaging working
environment and securing the well-being of
employees is critical to creating an attractive
workplace where everyone thrives and can
perform to their full potential.
With the acquisition of Trygg-Hansa in Sweden
and Codan in Norway, the number of employees
in Tryg increased to approximately 7,500. In-
formed, engaged and enabled employees is the
guiding principle for Tryg. To ensure a smooth
transition to new teams, tools and processes,
thorough onboarding processes were put in
place for the new colleagues, and all leaders
were trained in how to support their employees
in the process. Throughout all of these initia-
tives, commitment and engagement from imme-
diate managers have been crucial in keeping
employees engaged and continuously informed
about progress.
In 2022, the overall employee satisfaction score
decreased one point to 79, which is still well
above the average of 75 points for the Nordic
financial sector. In light of the integration, Tryg
is proud to have maintained a high level of satis-
faction across the three countries.
Employee mix
%
Age
>50
years
Age
30-49
years
Age
<30
years
WomenMen
54%
46%
17%
52%
31%
Employee satisfaction
(Index)
Tryg Nordic Nordic nancial
market
73
79
2021 2022
75
73
80
75
Annual report 2022 | Tryg A/S | 41
Management’s review - Contents
* market-based
Read more on page 30 in Tryg’s Sustaina-
bility report
Green workplace
Tryg’s direct carbon footprint is relatively limited.
However, there is an ambition to actively do
what it takes to reduce the climate impact
stemming from offices, waste, company cars
and business travels. To direct efforts, clear
COe reduction targets for all areas have been
defined across the relevant parts of the organi-
sation. Governance and responsibility have been
established to ensure progress on initiatives.
Tryg has furthermore focused on creating aware-
ness across employees, to ensure that everyone
understands how they can contribute. The ISO
14001 and EMAS certifications in Denmark
and the Eco-Lighthouse certification in Nor-
way ensure that Tryg works systematically and
thoroughly with environmental matters across
the organisation.
Download Climate and environmental
policy at www.tryg.com/en/dokumenter/
trygcom/climate-and-environmental-
policy
Carbon footprint
The CO emissions from the direct activities
stem from offices and transportation, i.e.
Tryg is therefor focusing on making its offices
more environmentally friendly through energy
efficiency, waste reduction and segregation, and
on changing transportation habits. Tryg has set
reduction targets of 35% and 55% in 2024 and
2030, respectively, compared to the 2019 base
year. To achieve carbon neutrality in 2023, Tryg
will compensate for the rest of its emissions –
with a clear focus to reduce more and compen-
sate less over time. In 2022, Tryg's total carbon
emissions were reduced by 58%*. Needless to
say that the previous two years' performance
on the CO target have been highly impacted
by COVID-19. In the first quarter of 2022, there
is still an impact of COVID-19 as employees
worked from home and were not able to travel.
However, Tryg's long-time focus on improving
energy efficiency through shifts to LED lighten-
ing and better management of lightning, heating,
cooling and ventilation across our buildings, is
reflected in the performance across the year.
Read more on pages 31-32 in Tryg’s
Sustainability report
Ethics and compliance
It is fundamental that Tryg maintains and
ensures a high level of business and data ethics,
security and good corporate governance at all
times. This is the foundation of the business
and a precondition for succeeding with the
strategy. Tryg promotes responsible business
conduct throughout the value chain and expect
its employees, suppliers, business partners and
external investment managers to comply with
these principles. This is an ongoing process that
involves continuously building knowledge and
capacity throughout the value chain and inter-
nally across the employee base.
Tryg’s Code of Conduct defines the rules that
all employees are required to adhere to. It is
mandatory for employees to complete a recur-
ring e-learning programme on Tryg’s Code of
Conduct.
Download Code of Conduct at www.
tryg.com/en/dokumenter/trygcom/code-
conduct-uk
Data
Tryg deals with personal data daily, including
sensitive data about customers and employees.
The use of data is essential for the business
model, as the primary resource in the develop-
ment of products that meet customer needs.
Data privacy
Ensuring that the customers’ personal data are
stored and handled in a lawful, secure and com-
pliant manner is a high priority for Tryg. Through
the Privacy and Cookies Notice, available at tryg.
com, Tryg seeks to be transparent about how
personal data is collected, processed and used.
The notice describes which data is collected,
from which sources, about whom and how it is
shared and for how long it is stored.
Download Privacy and cookie notice at
www.tryg.com/en/trygs- privacy-and-
cookie-notice
Data ethics and security
The data ethical principles are based on industry
standards stemming from the Danish trade
association Insurance & Pension Denmark’s
Data Ethical Codex, relevant legal requirements
as well as internationally agreed standards, and
outline three main principles: transparency, free
choice, and data security. Tryg's data ethical
principles are anchored within and approved by
Tryg’s GDPR and IT Security Board.
Tryg’s employees must be well-informed
about data ethics, data security as well as the
proper and confidential handling of personal
data. All employees must sign a confidentiality
undertaking. Tryg creates awareness and teach
employees about privacy through e-learning and
training programmes, which all employees must
complete.
Read more on page 33 in Tryg’s Sustaina-
bility report
Annual report 2022 | Tryg A/S | 42
Management’s review - Contents
Investor information
Investor Relations (IR) is responsible for Tryg’s
communication with the capital markets. It is
important that investors, analysts and other
stakeholders can form a true and fair view of
company developments, including Tryg’s finan-
cial results. For this reason, Tryg’s IR team strives
to be as open and transparent as possible to
ensure that stakeholders’ information require-
ments are met at the highest possible level. IR is
in charge of communication with equity inves-
tors, fixed income investors and rating agencies.
After the publication of quarterly and annual
reports, Tryg’s management and IR team ordi-
narily travel extensively to meet with sharehold-
ers and potential investors. Quarterly analyst
presentations are typically held in Copenhagen
and London. Tryg also attends investor meetings
and various financial conferences at a local and
global level. Because of COVID-19, many analyst
and investor meetings were held virtually at the
beginning of 2022 (as in 2021 and 2020). From
Q2 onwards, the majority of analyst and investor
meetings and conferences were held in-person
across Europe, the USA and Canada.
The Tryg share is currently covered by 19 an-
alysts, who continuously update their recom-
mendations and earnings forecasts. Tryg hosts
an annual Analyst Day focusing on selected
aspects of the business, while a more in-depth
Capital Markets Day, where new financial targets
is hosted every three years. At the latest Capital
Markets Day in November 2021, the 2024 finan-
cial targets were disclosed for the new enlarged
group. Hence, Tryg targets a technical result of
between DKK 7.0 and DKK 7.4bn, a combined
ratio at or below 82, an expense ratio around 14
and a return on own funds at or above 25% in
2024.
The Tryg share
The Tryg share is listed on the NASDAQ Copen-
hagen exchange. Company announcements
and trading announcements are published in
English - and in Danish on an optional basis.
Interim reports and annual reports are published
in English only.
The Tryg share started the year at a price of
DKK 161.8 and ended 2022 at DKK 161.5. Total
return (price and dividends) on the share was a
positive 6%. The Tryg share performed relatively
well in 2022 against a very challenging macroe-
conomic backdrop. Russia's invasion of Ukraine
increased geopolitical tensions dramatically. In
addition, inflation has accelerated rapidly and
is currently at levels not seen in the past forty
years. Central banks have been increasing inter-
est rates at a swift pace to try and tame this de-
velopment, and the economic outlook for 2023
looks challenging. Tryg is a relatively defensive
stock, as the company’s top-line performance
is not particularly sensitive to macroeconomic
developments, while investment operations are
relatively low risk and the business is considered
stable and produces a strong cash flow. Tryg’s
total shareholder return was 6% compared to
the European Insurers' sector at 3% and the
OMX C 25 in Denmark at -11%. Equity markets
generally performed very poorly during the first
nine months of the year before partly recovering
in the last three months. More cyclical sectors
have been sold off while defensive stocks have
performed better.
Share capital and ownership
Tryg’s share capital totalled DKK 3,273,269,900
on 31 December 2022. There is one share class
(654,653,980 shares with a nominal value of
DKK 5), and all shares rank pari passu. The larg-
est shareholder, TryghedsGruppen smba, owns
46.5%* of the shares and is the only shareholder
holding more than 5% of the share capital.
TryghedsGruppen supports peace of mind and
healthcare activities in the Nordic region.
Quarterly dividends
Tryg started paying quarterly dividends in 2017.
The Tryg share has a distinct income profile
due to the business generally growing in line
with GDP, thus producing high margins that are
mostly returned to shareholders. Due to the
prolonged period of very low interest rates in the
wake of the financial crisis, investors attach even
greater importance to dividends than in a more
normal environment, all else being equal.
This is particularly true for insurance investors,
as insurance is one of the sectors offering the
highest dividend yield. From an investment per-
spective, a quarterly dividend is a clear reminder
of the high profitability of Tryg’s business and
the company’s focus on returning capital to
shareholders. Tryg’s dividend policy is based on
the following premises:
TryghedsGruppen
In 2022, and for the seventh
year running, Tryg’s largest
shareholder, TryghedsGruppen,
paid out DKK 1.2bn in member
bonuses to Tryg in Denmark,
corresponding to 8% of the
annual premiums paid in 2021.
TryghedsGruppen owns 46.5%*
of the shares in Tryg.
TrygFonden
TrygFonden is the leading and
best-known peace-of-mind
promoter in Denmark, sup-
porting around 800 activities
that contribute to creating
peace of mind, such as coastal
lifeguards, cuddle bears for
children in hospital and defibril-
lators. TrygFonden contributes
around DKK 650m annually to
projects that create peace of
mind in all parts of Denmark.
*Calculated excluding Tryg's own shares
Annual report 2022 | Tryg A/S | 43
Management’s review - Contents
• An aspiration to distribute a steadily increasing
dividend in nominal terms on a full-year basis.
• A general objective of creating long-term value
for the company’s shareholders.
• A competitive dividend policy in comparison
with the policies of Tryg's Nordic competitors.
• Annual distribution of 60-90% of operating
earnings.
• The capital level must at all times reflect Tryg's
targets for return on own funds and statutory
capital requirements.
• The capital level may be adjusted via extraor-
dinary dividends.
Annual general meeting
Tryg’s annual general meeting will be held on
30 March 2023 at 15:00 CET. The notice will be
advertised in the daily press in February 2023
and will be sent to shareholders upon request.
Shareholder distribution
DKKm 2022 2021 2020 2019 2018
Dividend 4,118 2,802 2,115 2,056 1,994
Dividend per share (DKK) 6.29 4.28 7.0 6.8 6.6
Payout ratio 183% 89% 76% 72% 115%
Extraordinary share buy back 5,000
Extraordinary dividend 500
Extraordinary dividend per share (DKK) 1.65
Financial calendar 2023*
27 Jan. 2023 Tryg shares are traded ex-dividend
31 Jan. 2023 Payment of Q4 dividend
30 Mar. 2023 Annual general meeting
20 Apr. 2023 Interim report Q1
21 Apr. 2023 Tryg shares are traded ex-dividend
25 Apr. 2023 Payment of Q1 dividend
11 July 2023 Interim report Q2 and H1
12 July 2023 Tryg shares are traded ex-dividend
14 July 2023 Payment of Q2 dividend
13 Oct. 2023 Interim report Q1-Q3
16 Oct. 2023 Tryg shares are traded ex-dividend
18 Oct. 2023 Payment of Q3 dividend
* Depending of the approval of the Supervisory Board
TryghedsGruppen
Small shareholders
Large Danish
shareholders*
Large international
shareholders*
Shareholders
at 31 December 2022
46,5%
15%
33,5%
5%
*Shareholders holding more than 10.000 shares.
Source: CMi2i
Denmark
UK
USA
Others
Free oat - geographical distribution
at 31 December 2022
36%
18%
18%
21%
Free oat is exclusive of TryghedsGruppen.
Source: CMi2i
Annual report 2022 | Tryg A/S | 44
Management’s review - Contents
Corporate governance
Tryg focuses on managing the company in
accordance with the principles of good corpo-
rate governance and generally complies with
the Danish recommendations prepared by the
Committee on Corporate Governance. The
Recommendations on Corporate Governance
are available at corporategovernance.dk. At tryg.
com, Tryg has published its statutory corporate
governance report based on the ‘comply-or-ex-
plain’ principle for each individual recommenda-
tion. This section on corporate governance is an
excerpt of the corporate governance report.
Download Tryg’s Statutory Corporate
Govern ance Report at www.tryg.com/en/
downloads-2022
Dialogue between Tryg, its shareholders and
other stakeholders
Tryg’s Investor Relations (IR) department main-
tains regular contact with analysts and investors.
Together with the Executive Board, the Investor
Relations team organises investor meetings,
conference calls and participates in conferences
in Denmark and abroad.
The Supervisory Board is regularly informed
about the dialogue with investors and other
stakeholders. Tryg has an IR policy which states
that all company announcements may be
published in English only. Tryg publishes quar-
terly interim reports in English. Furthermore,
Tryg publishes an annual profile in Danish and
Norwegian. The profile is addressed to Tryg’s
private shareholders, customers, employees and
other stakeholders and will be published on 26
January 2023.
Tryg also prepares quarterly investor presenta-
tions which are used in the dialogue with inves-
tors and analysts. Additionally, Tryg also regularly
publishes IR newsletters on relevant topics. All
announcements, financial reports, presenta-
tions and newsletters are available at tryg.com.
This material provides all stakeholders with a
comprehensive picture of Tryg’s position and
performance. Finally, IR also communicates with
stakeholders on social media via Twitter
@
TrygIR.
The consolidated financial statements are
presented in accordance with IFRS. At tryg.com,
stakeholders are invited to subscribe to press
releases, company announcements as well
as insider trading announcements. A number
of internal guidelines ensure that the disclo-
sure of price-sensitive information complies
with legislation and stock exchange codes of
conduct. Tryg has adopted a number of policies
describing the relationship between different
stakeholders.
See the IR Policy at www.tryg.com/en/
governance/policies
Annual General Meeting
Tryg holds an Annual General Meeting (AGM)
every year. As required by the Danish Compa-
nies Act and Tryg’s Articles of Association, the
AGM is convened via a company announcement
and at tryg.com subject to at least three weeks’
notice. Shareholders may also opt to receive
the notice by post or email. The notice contains
in- formation about the time and venue, or tech-
nical requirements for attending the meeting
virtually, as well as an agenda for the meeting.
All shareholders are encouraged to attend the
general meeting. The AGM is held by physical
attendance as the Supervisory Board values
personal contact with the Group’s sharehold-
ers. Tryg has decided to livestream the general
meeting and encouraged all shareholders to
participate in the general meeting by physical
attendance or via livestream.
Shareholders may propose items to be included
on the agenda for the AGM and may ask ques-
tions before and at the meeting. Shareholders
may vote at the AGM, by post, or appoint the
Supervisory Board or a third party as their proxy.
Shareholders may consider each item on the
agenda. The proxy form and form for voting by
post are available at tryg.com before the AGM.
Furthermore, prior to the general meeting, Tryg
invites shareholders to submit written questions
to be considered at the general meeting. Infor-
mation on how to exercise shareholders’ rights
at the general meeting is clearly communicated
to shareholders and published at tryg.com.
Share and capital structure
Tryg’s share capital comprises a single share
class, and all shares rank pari passu. The largest
shareholder, TryghedsGruppen smba, owns
46.5%* of the shares and is the only shareholder
owning more than 5% of the company’s shares.
The Supervisory Board ensures that Tryg’s capital
structure is aligned with the needs of the Group
and the interests of its shareholders and that it
complies with the requirements applicable to Tryg
as a financial undertaking. Tryg has adopted a
capital plan and a contingency capital plan, which
are reviewed annually by the Supervisory Board.
Depending on the financial results, each year the
Supervisory Board proposes the distribution of
quarterly dividends, and possibly an extraordinary
annual dividend if a further adjustment of the
capital structure is required.
Duties, responsibilities and composition of the
Supervisory Board
The Supervisory Board is responsible for the
central strategic management and financial con-
trol of Tryg and for ensuring that Tryg’s business
setup is robust. This is achieved by monitoring
targets and frameworks based on regular and
systematic reviews of strategy and risks.
The Executive Board reports to the Supervisory
Board on strategies and action plans, market
developments and Group performance, funding
issues, capital resources and special risks.
The Supervisory Board holds one annual
strategy seminar to decide on and/or adjust the
Group’s strategy to sustain value creation in the
company. The Executive Board works with the
Supervisory Board to ensure that the Group’s
strategy is developed and monitored. The Super-
* Calculated excluding Tryg's own shares
Annual report 2022 | Tryg A/S | 45
Management’s review - Contents
visory Board ensures that the necessary skills
and financial resources are available for Tryg to
achieve its strategic targets. The Supervisory
Board specifies its activities in a set of rules of
procedure and an annual cycle for its work.
The current nine external members of the Su-
pervisory Board were elected by the annual gen-
eral meeting for a term of one year. Of the nine
members elected at the annual general meeting,
six, and thus the majority, are independent
persons, thus complying with recommendation
3.2.1. in the Recommendations on Corporate
Governance. The other three members are
dependent persons as they are appointed by
Tryg’s largest shareholder, TryghedsGruppen.
See pages 45-48 for information on when the in-
dividual members joined the Supervisory Board,
were re-elected, and when their current election
period ends. To ensure the integration of new
talent onto the Supervisory Board, members
elected by the annual general meeting may hold
office for a maximum of twelve years.
The Supervisory Board has 14 members in total,
with an equal gender representation, as the
board currently comprises seven women and
seven men (including one male and four female
employee representatives). This complies with
legislation as well as Tryg’s policy. The Super-
visory Board has members from Denmark,
Sweden and Norway.
See details about the independent
board mem bers in the section
Supervisory Board on pages 49-52
and at www.tryg.com/en/governance/
management/supervisory-board
The Supervisory Board performs an annual
evaluation of its work and skills to ensure that it
possesses the expertise required to perform its
duties in the best possible way. In addition to the
annual self-evaluation, an assessment is
facilitated with external assistance at least every
three years to ensure objectivity in the evalua-
tion process. The Supervisory Board focuses pri-
marily on the following qualifications and skills:
business judgement, problem solving, network-
ing, risk management, succession management,
general management, CFO/audit, people and
organisation, business development, financial
services, risk and regulatory compliance, insur-
ance – commercial and product insurance –
technical/financial modelling, IT & digitalisation,
value chain optimisation and customer journey.
As part of the evaluation, the Supervisory Board
also focuses on other executive positions and
board memberships held by the members of
the Supervisory Board, including the level of
commitment and workload associated with
each position to prevent potential overboarding.
The evaluation is based on the individual board
member’s ability to devote the necessary time
for preparation, their performance, attendance
and participation at committee and board meet-
ings in Tryg. In 2022, the Chair, Jukka Pertola,
held four board seats in publicly listed compa-
nies. As a professional board member with more
than 25 years of relevant international experi-
ence combined with a unique set of competen-
cies, the Chair, with his role as an independent
chair at Tryg, is a very valuable presence at board
and committee meetings. He has had a 100%
attendance record at all board and committee
meetings since he was elected as Chair of the
Supervisory Board in 2018. In line with good
corporate governance, the Chair has reduced his
obligations in listed and non-listed companies in
2022 and is continuously assessing his capabili-
ty to allocate the required time and energy to his
current Board positions.
In early 2022, an externally assisted evalua-
tion was conducted of all board members and
members of the executive management based
on a questionnaire focusing on board compe-
tencies and performance. The overall conclusion
was that Tryg has a very good, value-adding
and professional Supervisory Board that works
efficiently and in accordance with sound
governance principles. The evaluation resulted
in a continued strong focus on Trygg-Hansa
integration, long-term strategy, digitalisation,
ESG and succession. Further, the Supervisory
Board decided to arrange a board training day on
relevant matters.
See CVs and descriptions of skills in the
section Supervisory Board on pages 49-
52 and at www.tryg.com/en/governance/
management/supervisory-board
Duties and composition of the Executive Board
Each year, the Supervisory Board reviews and
adopts the rules of procedure of the Superviso-
ry Board and the Executive Board, comprising
relevant policies, guidelines and instructions
describing reporting requirements and require-
ments for communication with the Executive
Board. Financial legislation also requires the
Executive Board to disclose all relevant infor-
mation to the Supervisory Board and report on
compliance with limits defined by the Superviso-
ry Board and in legislation.
The Supervisory Board considers the composi-
tion, development, risk and succession plans of
the Executive Board in connection with the an-
nual evaluation of the Executive Board, and reg-
ularly in connection with board meetings. Each
year, the Supervisory Board discusses Tryg’s
activities to guarantee diversity at management
levels. Tryg attaches great importance to diver-
sity at all management levels. Tryg has prepared
an action plan that sets out specific targets to
ensure diversity and equal opportunities and
access to management positions for qualified
men and women. For several years, Tryg has had
a strong focus on diversity and has been aiming
to increase the number of women in manage-
ment positions to 41%. The number of women
in management positions increased from 38%
in 2020 to 40% in 2021, just short of the target.
Progress has been driven through continuous
focus in the recruitment and HR processes.
See the General action plan for diversity
including women in management at
www.tryg.com/en/governance/policies
Board committees
Tryg has an Audit Committee, a Risk Commit-
tee, a Nomination Committee, a Remuneration
Committee and an IT-Data Committee. The
frameworks for the committees’ work are de-
fined in their terms of reference.
The board committees’ terms of refer-
ence can be found at www.tryg.com/en/
governance/management/ supervisory-
board/board-committees including
descriptions of members, meeting
frequency, responsibilities and activities
during the year.
Annual report 2022 | Tryg A/S | 46
Management’s review - Contents
See the tasks of the Board Committees
in 2022 at www.tryg.com/en/govern-
ance/management/supervisory-board/
board-committees
All members of the Audit Committee and three
out of four members of the Risk Committee,
including the committee chair, are independent
persons. Three out of the five members of the
Remuneration Committee are independent
persons, including the committee chair. Two out
of three members of the Nomination Committee
are independent, including the committee chair.
Three out of five members of the IT-Data Com-
mittee are independent persons, including the
committee chair. Board committee members are
elected primarily on the basis of their specialist
skills considered important by the Supervisory
Board. The involvement of the employee repre-
sentatives in the committees is also considered
important. The committees exclusively prepare
matters for decision by the entire Supervisory
Board.
The specialist skills of all members are
also described at www.tryg.com/en/
governance/management/superviso-
ry-board/about-board
Remuneration of management
Tryg has adopted a remuneration policy for
Tryg in general that includes specific schemes
for the Supervisory Board, the Executive Board
and other employees in Tryg whose activities
have a material impact on the risk profile of the
company - risk-takers. The remuneration policy
for 2022 was adopted by the Supervisory Board
in January 2022 and approved by the annual
general meeting on 31 March 2022.
The Chair of the Supervisory Board reports on
Tryg’s remuneration policy each year in connec-
tion with the review of the annual report at the
annual general meeting. The Board’s proposal
for the remuneration of Supervisory Board for
the current financial year is also submitted for
approval by the shareholders at the annual
general meeting.
Remuneration of the Supervisory Board
Members of Tryg’s Supervisory Board receive
a fixed fee and are not covered by any form of
incentive or severance programme or pension
scheme. Their remuneration is based on trends
in peer companies and benchmarked against
C25, taking into account the required skills and
efforts and the scope of the Supervisory Board’s
work, including the number of meetings held.
The remuneration received by the Chair of the
Supervisory Board is three times that received
by ordinary members, while the Deputy Chair’s
remuneration is twice that received by ordinary
members of the Supervisory Board.
Remuneration of the Executive Board
Members of the Executive Board are employed
on a contractual basis, and all terms of their
remuneration are established by the Supervisory
Board within the framework of the approved
remuneration policy.
Tryg wants to strike an appropriate balance
between management remuneration, predict-
able risk and value creation for the company’s
shareholders in the short and long term.
The Executive Board’s remuneration consists
of a fixed basic salary, a pension contribution of
25% of the base salary and other benefits. The
base salary must be competitive and appro-
priate for the market and provide sufficient
motivation for all members of the Executive
Board to do their best to realise the company’s
defined targets.
The Supervisory Board can decide that the basic
salary should be supplemented with a variable
pay element of up to 50% of the fixed salary
including pension.
The variable pay is set out in an incentive pro-
gramme for the Executive Board. The allocation
of the variable salary components under the
incentive programme is based on a result and
performance assessment for the performance
year (financial year) in accordance with specific
weighted financial and non-financial targets de-
cided at the beginning of the performance year.
The principal purpose of the incentive pro-
gramme is to ensure the congruence of the finan-
cial interest of the participants and the company’s
shareholders and to create a correlation between
remuneration and performance results. Secondly,
the programme should contribute to retaining the
participants in the programme at Tryg.
For the performance year 2022, the variable
pay element was in January 2023 allotted as a
combination of cash and conditional shares.
The allotted conditional shares are deferred for
four years from the time of allotment. After the
end of the deferral period, the participant will
receive free shares in Tryg A/S corresponding
to the numbers of conditional shares allotted.
The granting of free shares is conditional upon
the fulfilment of additional conditions such as
continued employment and back-testing (testing
prior to granting to ensure that the criteria on
which the variable salary is based are still met at
the time of the granting of free shares).
Read more about remuneration at Tryg
in the Remuneration policy and in the
Remunera tion Report at www.tryg.com/
en/governance/remuneration
Independent and internal audit
The Supervisory Board ensures monitoring
by competent and independent auditors. The
group’s internal auditor attends all board meet-
ings as well as meetings in the audit committee
and risk committee. The independent auditor
attends the annual board meeting where the
annual report is presented as well as meetings in
the audit committee and risk committee.
The annual general meeting appoints an inde-
pendent auditor recommended by the Super-
visory Board. At least once a year, the auditors
meet with the Audit Committee without the
presence of the Executive Board.
The Audit Committee chair deals with any mat-
ters that need to be reported to the Supervisory
Board.
The deviations are explained in Tryg’s
Statutory Corporate Governance report,
which is available at www.tryg.com/en/
downloads-2022
Annual report 2022 | Tryg A/S | 47
Management’s review - Contents
Tryg’s internal audit department regularly re-
views the quality of the Group’s internal control
systems and business procedures. It is respon-
sible for planning, performing and reporting on
the audit work to the Supervisory Board.
Deviations and explanations
Tryg complies with the Recommendations on
Corporate Governance except with regards to
the number of independent members of board
committees, with which Tryg complies partially;
see recommendation 3.4.2. of the Recommen-
dations on Corporate Governance.
Annual report 2022 | Tryg A/S | 48
Management’s review - Contents
Supervisory Board
Jukka Pertola
a)
Born in 1960. Joined the Supervisory Board in 2017.
Finnish citizen.
Career Professional board member. Former CEO of Sie-
mens Denmark
Education MSc in Electrical Engineering
Board seats, Chair Tryg A/S and Tryg Forsikring A/S,
Siemens Gamesa Renewable Energy A/S, Asetek A/S and
COWI Holding A/S
Board seats, Deputy Chair Gomspace Group AB incl.
Gomspace A/S, GN Store Nord A/S incl. GN Audio A/S and
GN Hearing A/S
Committee memberships Remuneration Committee
(Chair), Nomination Committee (Chair) and IT-Data Com-
mittee in Tryg A/S, Nomination Committee in COWI Hold-
ing A/S (Chair), Remuneration Committee (Chair) Asetek
A/S, Nomination Committee Asetek A/S, Remuneration
Committee, Nomination Committee and Strategy in GN
Store Nord A/S
Experience More than 25 years of top management ex-
perience in the IT and telecommunication industry and
electrical engineering. The latest position being CEO of
Siemens Denmark from 2002 to 2017. Broad international
experience with global and regional business responsibili-
ties in both BtC and BtB
Competencies Solid technological background in tel-
ecommunication, IT, digitalisation, business models,
strategy and business development. Understanding of risk
management, M&A, business know-how and judgement
as well as insurance
Number of shares held 13,000
Change in portfolio since 2021 0
Torben Nielsen
a)
Born in 1947. Joined the Supervisory Board in 2011.
Danish citizen.
Career Professional board member, former Adjunct Pro-
fessor at Copenhagen Business School. Former Governor
of Danmark’s Nationalbank (Danish Central Bank)
Education Savings bank training, Graduate Diplomas in
Organisation, Work Sociology, Credit and Financing
Board seats, Chair Ny Holmegaard Værk Fund, Invester-
ingsforeningen Sparinvest, Vordingborg Borg Fund, Muse-
um of Southeast Denmark, Borgring Fonden, Tryg Invest
A/S and KTIF (Kapitalforeningen Tryg Invest Funds)
Board seats, Deputy Chair Tryg A/S and Tryg Forsikring
A/S
Board member Sampension KP Livsforsikring A/S and a
member of the Executive Management of Bombebøssen
Committee memberships Audit Committee (Chair) and
Risk Committee (Chair), Nomination Committee and
Remuneration Committee in Tryg A/S, Audit Committee
(Chair) and Risk Committee (Chair) in Sampension KP
Livsforsikring
Experience General experience at executive level in bank-
ing. Micro and macro knowledge from membership of the
board of governors in the Danish Central Bank. Knowledge
of chairmanship from non-executive boards
Competencies General top management experience from
the financial sector as well as experience of risk manage-
ment and regulatory requirements, business know-how
and judgement
Number of shares 53,000
Change in portfolio since 2021 1,000
Mari Thjømøe
a)
Born in 1962. Joined the Supervisory Board in 2012.
Norwegian citizen.
Career Professional board member and independent ad-
visor. Former CFO of KLP
Education MSc in Economics and Business Administra-
tion, Chartered Financial Analyst (CFA), the Senior Execu-
tive Programme from London Business School and Effec-
tive Board Management from Harvard Business School
Board seats, Chair Seilsport Maritimt Forlag A/S and
ThjømøeKranen A/S
Board member Tryg A/S and Tryg Forsikring A/S, TF Bank
AB, FCG Fonder AB, Hafslund ASA, Deezer SA, Norconsult
A/S and Norconsult Holding, Varme og Bad AS
Committee memberships Audit Committee and Risk
Committee in Tryg A/S, Audit Committee (Chair) in
Norconsult A/S, Audit Committee (Chair) in Deezer SA,
Risk Committee in TF Bank AB and Audit Committee in
Hafslund AS
Experience Senior management experience from large-
cap companies, insurance and real estate. Extensive
experience from board of directors within finance, energy
and renewables and is engaged in developing sustainable
businesses and good governance. Headed the Norwegian
IR associations for a number of years and received the
Women’s Board Award for Norway
Competencies Business know-how from experience with
the financial sector and energy as well as risk manage-
ment, strategy, restructuring, business development, M&A,
IR and financial communication and working with regula-
tory authorities
Number of shares 16,817
Change in portfolio since 2021 2,500
Carl-Viggo Östlund
a)
Born in 1955. Joined the Supervisory Board in 2015.
Swedish citizen.
Career Former CEO of Swedish banks SBAB and Nordnet
and the insurance company SalusAnsvar. At present entre-
preneur, professional board member and investor
Education BSc in International Business and Finance &
Accounting, Stockholm School of Economics
Board seats, Chair Fondo Solutions AB, Gladsheim Fas-
tigheter AB, Hemdel AB, Juvinum Food&Beverage AB,
Picsmart AB, Ponture AB, Ywonn Media Group Sweden AB
and Nedvi Fastigheter AB
Board member Tryg A/S and Tryg Forsikring A/S, Allert
Östlund AB, Delimport Ltd, Goobit Group AB, Havsgaard
AB
Committee memberships IT-Data Committee (Chair) and
Remuneration Committee in Tryg A/S
Experience More than 30 years as CEO and Managing
Director in local and international environments in both
listed and privately held companies as well as banks.
Experience from the following industries: manufacturing,
logistics, insurance, finance and banking
Competencies Solid background from the insurance
industry, non-life as well as life. Business know-how and
judgement, banking and finance know-how, understand-
ing of digitalisation and risk management
Number of shares 7,788
Change in portfolio since 2021 0
Annual report 2022 | Tryg A/S | 49
Management’s review - Contents
Supervisory Board
Thomas Hofman-Bang
a)
Born in 1964. Joined the Supervisory Board in 2022.
Danish citizen.
Career CEO of the Danish Industry Foundation
Education Certified Public Accountant
Board seats, Chair CBS Academic Housing, K Alternativ
Private Equity 2019 K/S, K Alternativ Private Equity 2020
K/S, K Alternativ Private Equity 2021 K/S, K Alternativ Pri-
vate Equity 2022 K/S, K Alternativ Private Equity 2023 K/S
and Half Double Institute fmba
Board seats, Deputy Chair Bikubenfonden
Board member Tryg A/S and Tryg Forsikring A/S and
Tranes Fond
Experience Extensive global experience in the B2B envi-
ronment and within the professional services industry in
various roles as CEO, CFO, COB, non-executive director
and advisor for world class and market leading compa-
nies, including positions as CEO KPMG Denmark (5 years),
President and Group CEO NKT (8 years) and Group CFO
NKT (6 years)
Competencies Key competencies include leadership, de-
velopment and execution of ambitious growth strategies
focused on value creation, performance culture, trans-
parency, integrity, strong team performance and great
communication skills
Number of shares 4,830
Mengmeng Du
a)
Born in 1980. Joined the Supervisory Board in 2022.
Swedish citizen.
Career Independent advisor to tech startups and profes-
sional board member. Former leading positions at Spotify
and Acast
Education MSc in Economics and Business Administra-
tion from Stockholm School of Economics, MSc in Com-
puter Science from Royal Institute of Technology (KTH)
Board member Tryg A/S and Tryg Forsikring A/S, Dometic
Group AB, Swappie Oy and Clas Ohlson AB
Committee memberships People and Renumeration
Committee in Swappie Oy
Experience 10+ years of top management experience and
as board member. Thorough knowledge of the Tech start-
up space as well as international experience from leading
positions within Marketing and Operations at Spotify and
COO at Acast. Extensive board experience from Retail, Life
Insurance and Aviation. Member of Sweden’s National
Innovation Council
Competencies BGeneral top management experience
from the Tech industry. Extensive experience in the areas
of IT & digitalisation, transformation, marketing, organisa-
tion, strategy and business development
Number of shares 0
Ida Sofie Jensen
b)
Born in 1958. Joined the Supervisory Board in 2013.
Danish citizen.
Career CEO of Lif (Medicine and Healthcare Industry),
CEO of the subsidiary DLI A/S (Danish Medicine Informa-
tion) and the subsidiary ENLI ApS (Ethical Board for the
Pharmaceutical Industry)
Education MSc in Political Science (cand.scient.pol.), Eu-
ropean Health Leadership Programme INSEAD, Executive
Management Programme INSEAD, Executive Program
Columbia Business School, Executive Program Singularity
University
Board seats, Chair TryghedsGruppen smba, Dansk
Medicin Verifikation Organisation Aps
Board member Tryg A/S and Tryg Forsikring A/S
Committee memberships Remuneration Committee,
Nomination Committee and IT-Data Committee in Tryg A/S
Experience General top management experience as CEO
of Lif since 2004 and former CEO of Herlev University
Hospital. Representative in TryghedsGruppen since 2010.
Deputy Chair 2014-2019 and Chair since 2019
Competencies Solid business know-how and judgement,
analytical approach to problem-solving and strategy, net-
working, ability and skills to evaluate succession scenarios
as well as understanding of digitalisation
Number of shares 5,616
Change in portfolio since 2021 0
Claus Wistoft
b)
Born in 1959. Joined the Supervisory Board in 2019.
Danish citizen.
Career 1st Deputy Mayor, Municipality of Syddjurs and
member of the finance committee. Agriculturalist, wind
energy production, tenanted properties and project devel-
opment of building sites. CEO in Demex Holding A/S and
C.W. Holding A/S
Education Agricultural education at Bygholm Agricultural
College and various business courses
Board member Tryg A/S and Tryg Forsikring A/S,
TryghedsGruppen smba, Seidelmann Holding ApS,
Houmarken A/S, Lyngfeldt A/S, Lyngfeldt Finansiering A/S,
Lyngfeldt Maskinudlejning ApS, K/S Prinz Carl Anlage and
Ejendomsfonden - Maltfabrikken
Experience Top management experience from operating
his own business for 35 years
Competencies Analytical approach to problem-solving,
solid business know-how and business development,
understanding of risk management and succession
Number of shares 8,716
Change in portfolio since 2021 0
Annual report 2022 | Tryg A/S | 50
Management’s review - Contents
Supervisory Board
Jørn Rise Andersen
b)
Born in 1956. Joined the Supervisory Board in 2022.
Danish citizen.
Career Union Chairman of Dansk Told og Skatteforbund
(the Danish Customs and Tax Union)
Education 3-year education in the Danish Customs Au-
thorities. Various accounting courses (business diploma
level), such as internal and external accountancy, organi-
sation and tax law
Board seats, Chair Tjenestemændenes Laaneforening,
Dansk Told- og Skatteforbunds Fælleslegat and TJM Bolig
A/S
Board seats, Deputy Chair TryghedsGruppen SMBA
Board member Tryg A/S and Tryg Forsikring A/S, TJM
Forsikring, Interesseforeningen, Lån og Spar Bank A/S,
Fondet af 1844, Fagbevægelsens Hovedorganisation (the
Trade Union Central Organisation), CO10 (The Central
Organisation of 2010), Administrationsaktieselskabet
Forenede Gruppeliv and Stats- og Kommunalansattes
Forhandlingsfællesskab
Committee memberships Risk Committee in Trygheds-
Gruppen (Chair), Audit Committee in Lån og Spar Bank
A/S (Chair), Risk Committee and Remuneration Commit-
tee in Lån og Spar Bank A/S
Experience Many years of experience from top manage-
ment positions in Danish trade unions as well as board
seats in financial companies
Competencies Understanding of the financial sector,
finance and risk management, member loyalty and care,
investments and capital management, political flair
Number of shares 0
Charlotte Dietzer
b)
Born in 1974. Joined the Supervisory Board in 2020.
Danish citizen.
Employed since 1998
Career Manager advisor in Claims Denmark, Tryg A/S
Education Insurance education at Forsikringsakademiet
(level 5) as well as various management and communica-
tion courses. Supervisory Board education at Forsikring-
sakademiet
Board member Tryg A/S and Tryg Forsikring A/S
Experience Division partner in Tryg A/S and examiner at
Forsikringsakademiet
Competencies Solid knowledge and experience of the
insurance industry. Excellent interpersonal and verbal
communication skills
Number of shares 706
Change in portfolio since 2021 156
Tina Snejbjerg
b)
Born in 1962. Joined the Supervisory Board in 2010.
Danish citizen.
Employed since 1987
Career Officer of Tryg’s Personnel Department
Education Insurance training
Board member The Central Board of Forsikringsforbundet,
Tryg A/S and Tryg Forsikring A/S
Committee memberships Risk and Remuneration Com-
mittees in Tryg A/S
Experience From 1987 to 2001, Tina Snejbjerg worked
with insurance sales to both private and commercial
customers as well as providing insurance advice to cus-
tomers. From 2001-2009, Tina Snejbjerg was the deputy
chair of the local branch of Forsikringsforbundet and since
2009 she has been the chair, working with operations,
strategy, negotiating agreements and engaged in recruit-
ing and retaining members
Competencies Many years of experience mean Tina
Snejbjerg has acquired solid business know-how and
judgement, problem-solving abilities, and has worked with
management and HR-related issues in the financial sector,
specifically the insurance industry
Number of shares 2,657
Change in portfolio since 2021 156
Elias Bakk
b)
Born in 1975. Joined the Supervisory Board in 2017.
Swedish citizen.
Employed since 2006
Career Product & Strategic Engagement Manager in Tryg
A/S
Education Norra Real Gymnasium, financial services &
insurance at Företagsekonomiska Institut Stockholm. Pro-
gramme at Forsikringsakademiet for new board members
Board member Tryg A/S and Tryg Forsikring A/S
Committee memberships IT-Data Committee in Tryg A/S
Experience Team Manager in Moderna Affinity for 12
years, Business development in Moderna and Affinity for
4.5 years
Competencies Solid insurance knowledge from his years
in the industry, business know-how and judgement, expe-
rience with organisation development, business develop-
ment, customer handling and interaction
Number of shares 3,000
Change in portfolio since 2021 250
Annual report 2022 | Tryg A/S | 51
Management’s review - Contents
Supervisory Board
Name
Supervisory
Board
Audit
Committee
Risk
Committee
Nomination
Committee
Remuneration
Committee
IT-Data
Committee
Jukka Pertola 11/11 6/6 7/7 4/4
Torben Nielsen 11/11 8/8 8/8 6/6 7/7
Ida Sofie Jensen 11/11 6/6 7/7 4/4
Carl-Viggo Östlund 11/11 7/7 4/4
Claus Wistoft 11/11
Mari Thjømøe 11/11 6/8 5/8
Thomas Hofman-Bang
a)
7/11 8/8 8/8
Mengmeng Du
a)
6/11 4/4
Jørn Rise Andersen
a)
6/11
Tina Snejbjerg 10/11 8/8 7/7
Charlotte Dietzer 11/11
Elias Bakk 11/11 4/4
Lena Darin
b)
4/11
Mette Osvold
b)
4/11
a)
Joined the Board in March 2022
b)
Joined the Board in July 2022
Commitee meeting
overview 2022
Members of the Supervisory Board are elected for a term of one year. Employee representatives are, however,
elected for a term of four years.
a)
Independent member of the Supervisory Board, as per the definition in Recommendations on Corporate Governance
b)
Dependent member of the Supervisory Board.
Mette Osvold
b)
Born in 1978. Joined the Supervisory Board in 2022.
Norwegian citizen.
Employed since 2003
Career Chair in Finansforbundet in Tryg
Education BA in Business and Finance for Managers from
Oxford Brookes University, Executive programme from
Norwegian School of Economics, Executive management
programme from Norwegian Business School, Executive
programme from Høyskolen Kristiania
Board seats, Chair Finansforbundet in Tryg
Board member Tryg A/S and Tryg Forsikring A/S
Experience Since 2003, Mette Osvold has held various
positions in Tryg, including as process and business devel-
oper, project manager, competence manager and most
recently as Chair of Finansforbundet in Tryg
Competencies Solid knowledge and experience of the
insurance industry
Number of shares 853
Lena Darin
b)
Born in 1961. Joined the Supervisory Board in 2022.
Swedish citizen.
Employed since 1989
Career Claims handler
Education Cand.jur/LLM
Board seats, Chair Chair of Akademikerföreningen of
Trygg-Hansa since 2012
Board member Tryg A/S and Tryg Forsikring
Experience Since 1989, Lena Darin has worked as a
claims handler in the insurance industry. Former Board
Employee representative at Trygg-Hansa (2012-2015)
Competencies Solid knowledge and experience of the
insurance industry
Number of shares 0
Annual report 2022 | Tryg A/S | 52
Management’s review - Contents
Morten Hübbe
Group CEO*
Born in 1972. Joined Tryg in 2002.
Joined the Executive Board in 2003.
Education: BSc in International Business and Modern Lan-
guages and MSc in Finance and Accounting, Copenhagen
Business School as well as management programme, The
Wharton School
Board seats, Chair: Siteimprove (including two holding
companies) and Conscia A/S (including four holding com-
panies)
Board seats, Deputy Chair: Simcorp A/S
Experience: Morten Hübbe is an experienced senior exec-
utive with a holistic and approach to strategic leadership.
Morten has 25+ years of insurance experience, of which
nearly 20 years have been at top executive level - 8 years
as Group CFO and 10 years as Group CEO. In addition,
Morten has Supervisory Board experience in banking,
software and real estate development
Competencies: Morten Hübbe has specific strengths
within strategy, finance, communication and leadership.
He also has solid know-how within the fields of investor
relations, M&A and financial regulation
Number of shares held: 321,061
Number of shares held at the start of 2022: 289,921
Change in portfolio: +31,140
* Other Directorships in the following non-financial holding companies
CGH Invest ApS, Gusta Invest ApS and Moccau Holding ApS (including
one subsidiary). The investment companies are established for the bene-
fit of Morten Hübbe and his related family.
Barbara Plucnar Jensen
Group CFO
Born in 1971. Joined Tryg in 2019.
Joined the Executive Board in 2019.
Education: MSc in Economics, University of Copenhagen
Board seats, Deputy Chair: KTIF (Kapitalforeningen
Tryg Invest Funds)
Board member: Nordsøenheden and Scandi JV Co 2 A/S
Experience: Barbara Plucnar Jensen has extensive senior
management experience in the financial and service sec-
tor. Before joining Tryg, she held the position of CFO with-
in ISS' largest market, the UK & Ireland, and several senior
positions within group treasury and risk management with
ISS. Furthermore, she has comprehensive experience of
the banking industry, as she has held several senior posi-
tions within the largest financial institution in Denmark,
Danske Bank
Competencies: Barbara Plucnar Jensen is an execu-
tion-oriented executive with an international and strategic
mindset focused on making an impact. She has a passion
for understanding the day-to-day business and the ability
to grasp complex issues quickly and generate results
through strong leadership capabilities. She has a strong
financial profile and extensive experience within finance
and investments, risk management and governance,
financial regulation & compliance, group treasury, M&A,
IT & outsourcing, use of technology and data as well as
sustainability
Number of shares held: 29,319
Number of shares held at the start of 2022: 29,319
Change in portfolio: 0
Lars Bonde
Group COO
Born in 1965. Joined Tryg in 1998.
Joined the Executive Board in 2006.
Education: Insurance training, LL.M., University of
Copenhagen
Board seats, Chair: P/F Betri Trygging, Tryg Livsforsikring
A/S and Forsikringsakademiet A/S
Board member: Danish Employers’ Association for the
Financial Sector and Scandi JV Co 2 A/S
Experience: With more than 35 years' experience in the
insurance industry, of which more than 15 years have
been as a top executive, Lars Bonde has extensive industry
knowledge. Throughout his tenure, he has held consec-
utive positions as leader and business-responsible for
claims and all Tryg's business units, some of which were
alongside his role as a member of the Executive Board.
Lars Bonde has over 10 years of international experience
from board positions.
Competencies: Comprehensive experience from the
insurance industry. Experienced in strategy, business
development, digitalisation, innovation, legal and M&A.
Management and leadership experience, including inter-
national experience. Extensive board experience across
several countries
Number of shares held: 122,692
Number of shares held at the start of 2022: 105,885
Change in portfolio: +16,807
Johan Kirstein Brammer
Group CCO
Born in 1976. Joined Tryg in 2016.
Joined the Executive Board in 2018.
Education: LL.M., University of Copenhagen, MBA Aus-
tralian Graduate School of Management, and Graduate
Diploma (HD-Finance) Copenhagen Business School
Board member: Insurance & Pension Denmark (IPD)
Experience: Johan Kirstein Brammer has extensive top
management experience from a range of industries. Prior
to joining Tryg’s Executive Board, Johan headed Tryg’s
Private Lines business in Denmark. Before joining Tryg, Jo-
han held numerous executive roles with TDC before join-
ing the company’s Board as Head of Consumer and Group
Chief Marketing Officer. Prior to this, Johan was with
McKinsey & Co as a strategy consultant based in Australia
and the UK. Before joining McKinsey & Co, Johan was an
attorney with Kromann Reumert in Denmark. This range
of experience has provided Johan with a broad, diverse
toolbox, having held strategic and P&L responsibilities
across multiple industries in an international setting
Competencies: Johan Kirstein Brammer has an interna-
tional and strategic mindset developed from his time as a
management consultant as well as a number of strategic
roles across several industries. He couples this with a
strong commercial sense and a desire to grow the busi-
ness and improve the customer experience through inno-
vation and digitalisation. Johan has extensive experience
within transformative M&A across borders and sectors
Number of shares held: 55,287
Number of shares held at the start of 2022: 49,663
Change in portfolio: +5,624
Executive Board
Annual report 2022 | Tryg A/S | 53
Management’s review - Contents
Notes
Tryg Group
Note
Statement by the Supervisory Board
and the Executive Board 55
Independent Auditor’s Reports 56
Financial highlights 60
Income statement 61
Statement of comprehensive income 62
Statement of financial position 63
Statement of changes in equity 64
Cash flow statement 65
1 Risk and capital management 66
2 Operating segments 78
2 Geographical segments 80
3 Premium income, net of reinsurance 84
4 Insurance technical interest, net of
reinsurance 84
5 Claims, net of reinsurance 84
6 Insurance operating costs, net of reinsurance 84
6 Share-based payment - Matching shares 86
6 Share-based payment - Conditional shares 87
7 Interest and dividends 88
8 Value adjustments 88
9 Other income and costs 88
10 Tax 88
Note
11 Intangible assets 89
12 Property, plant and equipment 92
13 Investment property 93
14 Equity investments in associates 93
15 Financial assets 94
16 Reinsurer’s share 98
17 Current tax 98
18 Equity 99
19 Premium provisions 100
19 Claims provisions 100
20 Pensions and similar obligations 101
21 Deferred tax 102
22 Other provisions 103
23 Other debt and debt to group undertakings 103
24 Earnings per share 104
25 Contractual obligations, collateral
and contingent liabilities 105
26 Equity investments in associates 106
27 Related parties 107
28 Financial highlights 108
29 Accounting policies 109
30 Transition to IFRS 9 & IFRS 17
at 1 January 2023 117
Tryg A/S (parent company)
Income statement for Tryg A/S 118
Statement of financial position for Tryg A/S 119
Statement of changes in equity 120
Notes 121
Reporting for Q4
Q4 2022 Quarterly outline 124
Q4 2022 Geographical segments 126
Information
Other key figures 127
Group chart 128
Glossary, key ratios and
alternative performance measures 129
Product overview 131
Disclaimer 132
Contents – Financial statements 2022
Tryg’s Group consolidated financial statements are prepared in accordance with IFRS
Annual report 2022 | Tryg A/S | 54
Financial statements - Contents
54Annual report 2022 | Tryg A/S |
Financial statements - Contents
Ballerup, 26 January 2023
Executive Board
Morten Hübbe Barbara Plucnar Jensen Lars Bonde Johan Kirstein Brammer
Group CEO Group CFO Group COO Group CCO
Supervisory Board
Jukka Pertola Torben Nielsen Mari Thjømøe Thomas Hofman-Bang Carl-Viggo Östlund Mengmeng Du Claus Wistoft
Chairman Deputy Chairman
Ida Sofie Jensen Jørn Rise Andersen Tina Snejbjerg Charlotte Dietzer Elias Bakk Mette Osvold Lena Darin
The Supervisory Board and the Executive Board
have today considered and adopted the annual
report for 2022 of Tryg A/S and the Tryg Group.
The consolidated financial statements are
prepared in accordance with the International
Financial Reporting Standards (IFRS) as adopted
by the EU and the additional Danish disclosure
requirements of the Danish Financial Business
Act on annual reports prepared by listed financial
services companies and the requirements of
NASDAQ Copenhagen for the presentation of the
financial statements of listed companies. The an-
nual report of the parent company is prepared in
accordance with the executive order on financial
reports presented by insurance companies and
lateral pension funds issued by the Danish FSA.
In our opinion, the accounting policies applied
are appropriate, and the annual report gives a
true and fair view of the Group’s and the parent
company’s assets, liabilities and financial posi-
tion at 31 December 2022 and of the results of
the Group’s and the parent company’s opera-
tions and the cash flows of the Group for the
financial year 1 January 2022 - 31 December
2022.
Furthermore, in our opinion the management’s
review gives a true and fair view of developments
in the activities and financial position of the
Group and the parent company, the results for
the year and of the Group’s and the parent com-
pany’s financial position in general and describes
significant risk and uncertainty factors that may
affect the Group and the parent company.
In our opinion, the annual report of Tryg A/S for
the financial year 1 January to 31 December
2022 with the file name TRYG-2022-12-31-en.
zip is prepared, in all material respects, in com-
pliance with the ESEF Regulation.
We recommend that the annual report be adopt-
ed by the shareholders at the annual general
meeting.
Statement by the Supervisory
Board and the Executive Board
Annual report 2022 | Tryg A/S | 55
Financial statements - Contents
What we have audited
The Consolidated Financial Statements of
Tryg A/S for the financial year 1 January to 31
December 2022 comprise the consolidated
income statement and statement of other com-
prehensive income, the consolidated balance
sheet, the consolidated statement of changes
in equity, the consolidated cash flow statement
and notes, including summary of significant
accounting policies.
The parent company Financial Statements of
Tryg A/S for the financial year 1 January to 31
December 2022 comprise the income state-
ment and statement of other comprehensive
income, the balance sheet, the statement of
changes in equity and notes, including summary
of significant accounting policies.
Collectively referred to as the “Financial State-
ments”.
Basis for opinion
We conducted our audit in accordance with In-
ternational Standards on Auditing (ISAs) and the
additional requirements applicable in Denmark.
Our responsibilities under those standards and
requirements are further described in the Audi-
tor’s responsibilities for the audit of the Financial
Statements section of our report.
To the shareholders of Tryg A/S
Report on the audit of the
Financial Statements
Our opinion
In our opinion, the Consolidated Financial
Statements give a true and fair view of the
Group’s financial position at 31 December 2022
and of the results of the Group’s operations and
cash flows for the financial year 1 January to 31
December 2022 in accordance with Internation-
al Financial Reporting Standards as adopted by
the EU and further requirements in the Danish
Financial Business Act.
Moreover, in our opinion, the parent company
Financial Statements give a true and fair view of
the parent company’s financial position at 31
December 2022 and of the results of the parent
company’s operations for the financial year 1
January to 31 December 2022 in accordance
with the Danish Financial Business Act.
Our opinion is consistent with our Auditor’s
Long-form Report to the Audit Committee and
the Board of Directors.
Independent
Auditor’s Reports
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the Financial Statements for 2022. These matters were addressed in the context of our audit of the Financial State-
ments as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter How our audit addressed the key audit matter
Measurement of provisions for insurance
contracts
The Group’s provisions for insurance contracts total
DKK 48,770m, which constitutes 43% of the balance
sheet total. Provisions for insurance contracts primarily
comprise premium and claims provisions.
Premium provisions are calculated as the net present
value of a best estimate of expected future cash-flows
relating to insurance events after the balance sheet date
on insurance contracts entered into on this date, includ-
ing direct and indirect costs relating to these contracts.
Claims provisions are calculated as the present value
of a best estimate of expected payments relating to
insurance events incurred at the balance sheet date in
addition to payments already made in connection with
these events. The estimate includes direct and indirect
costs relating to the settlement of claims.
Accounting estimates in respect of provisions for
insurance contracts is an experience-based estimate
involving use of historic claims data and complex
actuarial methods and models, which involve significant
assumptions on the frequency and extent of insurance
events relating to the insurance contracts.
We focused on the measurement of provisions for insur-
ance contracts, as the accounting estimate is by nature
complex and influenced by subjectivity and thus to a
large extent associated with estimation uncertainty.
Reference is made to the description in the Financial
Statements of “Risk and capital management” in Note 1
and in “Accounting policies” in Note 29.
We performed risk assessment procedures with the
purpose of achieving an understanding of it-systems,
procedures and relevant controls relating to claims
processing and insurance provisioning. In respect of
controls, we assessed whether these were designed
and implemented effectively to address the risk of
material misstatement. For selected controls, on which
we planned to rely on, we tested whether these controls
had been performed on a consistent basis.
We used our own actuaries in the evaluation of the
actuarial methods and models applied by the Group as
well as assumptions applied, and calculations made.
For a sample of provisions for insurance contracts, we
tested the calculation and the data used to underlying
documentation.
We assessed and challenged the methods and models
and significant assumptions applied based on our ex-
perience and industry knowledge with a view to ensure
that these are in line with regulatory and accounting
requirements. This comprised an assessment of the
continuity in the basis for the calculation of provisions
for insurance contracts.
We tested the calculation of provisions for insurance
contracts on a sample basis.
We assessed whether the disclosures on provisions for
insurance contracts were adequate.
Annual report 2022 | Tryg A/S | 56
Financial statements - Contents
Key audit matter How our audit addressed the key audit matter
Trygg-Hansa and Codan Norway Purchase
Price Allocation
RSA Scandinavia was acquired with accounting
effect as at 1 June 2021 comprising RSA’s Swedish
(Trygg-Hansa) and Norwegian (Codan Norway)
businesses and a co-share of RSA’s Danish business.
Collectively referred to as RSA Scandinavia.
According to the shareholders’ agreement, Tryg A/S
did not have control of RSA Scandinavia but did have
significant influence. Tryg A/S’ access to informa-
tion was restricted to ensure compliance with the
competition law. Accordingly, the investment was
classified as an investment in associates until 31
March 2022.
On 1 April 2022, the demerger separating Codan
Denmark from Trygg-Hansa in Sweden and Codan in
Norway was completed. Tryg A/S obtained control
over the Swedish and Norwegian businesses and
started full consolidation in the Group’s Financial
Statements on a line-by-line basis.
Management prepared a purchase price allocation
(’PPA’) for the acquisition of Trygg-Hansa and Codan
Norway, resulting in assets and liabilities being
separately recognised and valued at fair value in the
opening balance sheet.
When performing the PPA, Management used
the Group’s valuation methodologies. In order to
determine the fair value of the separately identified
assets and liabilities in a business combination, the
valuation methodologies require input based on
assumptions about the applied cash flow forecasts
- based on, amongst others, customer churn rates
and claims ratios - and determination of the WACC.
The significant judgements and estimates involved
in the PPA and opening balance mainly relate
to assessing the fair value of acquired customer
relationships, brands and other acquired assets
and liabilities including provisions for insurance
contracts at the opening balance sheet date.
We focused on this area because the PPA, which
includes identification of the acquired assets and
liabilities and their respective fair values, requires
complex judgements and significant estimates by
Management.
Reference is made to the Financial Statements
“Intangible assets” and “Equity investments in
associates” in Note 11, 14 and 26 and “Accounting
policies” section “Business Combinations” and
“Measurement of Goodwill, Trademarks and Cus-
tomer relations” in note 29.
We assessed whether the acquisitions met the
criteria of a business combination.
We audited the opening balance sheet and the PPA
adjustments and assessed the completeness of
assets and liabilities.
Further, we involved our internal valuation spe-
cialists in assessing the valuation methodologies
used by Management and the fair valuation of the
acquired assets and liabilities.
We challenged key judgements and the significant
assumptions used to determine the fair value of
the acquired assets and liabilities in the business
combination, including the fair value of the acquired
customer relations, brands and provisions for
insurance contracts.
Finally, we assessed the adequacy of disclosures
relating to the business combination.
We believe that the audit evidence we have
obtained is sufficient and appropriate to provide
a basis for our opinion.
Independence
We are independent of the Group in accordance
with the International Ethics Standards Board
for Accountants’ International Code of Ethics
for Professional Accountants (IESBA Code) and
the additional ethical requirements applicable
in Denmark. We have also fulfilled our other
ethical responsibilities in accordance with these
requirements and the IESBA Code.
To the best of our knowledge and belief, pro-
hibited non-audit services referred to in Article
5(1) of Regulation (EU) No 537/2014 were not
provided.
Appointment
We were first appointed auditors of Tryg A/S on
26 March 2021 for the financial year ending 31
December 2021. We have been reappointed
annually by shareholder resolution for a total pe-
riod of uninterrupted engagement of two years
including the financial year 2022.
Statement on Management’s Review
Management is responsible for Management’s
Review.
Our opinion on the Financial Statements does
not cover Management’s Review, and we do
not express any form of assurance conclusion
thereon.
In connection with our audit of the Financial
Statements, our responsibility is to read Man-
agement’s Review and, in doing so, consider
whether Management’s Review is materially in-
consistent with the Financial Statements or our
knowledge obtained in the audit, or otherwise
appears to be materially misstated.
Moreover, we considered whether Manage-
ment’s Review includes the disclosures required
by the Danish Financial Business Act.
Based on the work we have performed, in our
view, Management’s Review is in accordance
with the Consolidated Financial Statements
and the parent company Financial Statements
and has been prepared in accordance with the
requirements of the Danish Financial Business
Act. We did not identify any material misstate-
ment in Management’s Review.
Management’s responsibilities for the Financial
Statements
Management is responsible for the preparation
of consolidated financial statements that give
a true and fair view in accordance with Interna-
tional Financial Reporting Standards as adopted
by the EU and further requirements in the Dan-
ish Financial Business Act, and for the prepa-
ration of parent company financial statements
that give a true and fair view in accordance with
the Danish Financial Business Act, and for such
internal control as Management determines is
necessary to enable the preparation of financial
statements that are free from material misstate-
ment, whether due to fraud or error.
Annual report 2022 | Tryg A/S | 57
Financial statements - Contents
In preparing the Financial Statements, Manage-
ment is responsible for assessing the Group’s
and the parent company’s ability to continue
as a going concern, disclosing, as applicable,
matters related to going concern and using the
going concern basis of accounting unless Man-
agement either intends to liquidate the Group or
the parent company or to cease operations, or
has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the
Financial Statements
Our objectives are to obtain reasonable assur-
ance about whether the Financial Statements
as a whole are free from material misstatement,
whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Rea
-
sonable assurance is a high level of assurance
but is not a guarantee that an audit conducted
in accordance with ISAs and the additional
requirements applicable in Denmark will always
detect a material misstatement when it exists.
Misstatements can arise from fraud or error and
are considered material if, individually or in the
aggregate, they could reasonably be expected to
influence the economic decisions of users taken
on the basis of these Financial Statements.
As part of an audit in accordance with ISAs and
the additional requirements applicable in Den
-
mark, we exercise professional judgement and
maintain professional scepticism throughout the
audit. We also:
• Identify and assess the risks of material
misstatement of the Financial Statements,
whether due to fraud or error, design and
perform audit procedures responsive to
those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a
material misstatement resulting from fraud
is higher than for one resulting from error, as
fraud may involve collusion, forgery, inten-
tional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal con-
trol relevant to the audit in order to design
audit procedures that are appropriate in the
circumstances, but not for the purpose of
expressing an opinion on the effectiveness
of the Group’s and the parent company’s
internal control.
• Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related disclosures
made by Management.
• Conclude on the appropriateness of Man-
agement’s use of the going concern basis of
accounting and based on the audit evidence
obtained, whether a material uncertainty exists
related to events or conditions that may cast
significant doubt on the Group’s and the parent
company’s ability to continue as a going con-
cern. If we conclude that a material uncertainty
exists, we are required to draw attention in our
auditor’s report to the related disclosures in
the Financial Statements or, if such disclosures
are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence
obtained up to the date of our auditor’s report.
However, future events or conditions may
cause the Group or the parent company to
cease to continue as a going concern.
• Evaluate the overall presentation, structure
and content of the Financial Statements,
including the disclosures, and whether the
Financial Statements represent the underly-
ing transactions and events in a manner that
gives a true and fair view.
• Obtain sufficient appropriate audit evidence
regarding the financial information of the en-
tities or business activities within the Group
to express an opinion on the Consolidated
Financial Statements. We are responsible for
the direction, supervision and performance
of the group audit. We remain solely respon-
sible for our audit opinion.
We communicate with those charged with
governance regarding, among other matters, the
planned scope and timing of the audit and sig-
nificant audit findings, including any significant
deficiencies in internal control that we identify
during our audit.
We also provide those charged with govern-
ance with a statement that we have complied
with relevant ethical requirements regarding
independence, and to communicate with them
all relationships and other matters that may
reasonably be thought to bear on our independ-
ence and, where applicable, actions taken to
eliminate threats or safeguards applied.
From the matters communicated with those
charged with governance, we determine those
matters that were of most significance in the
audit of the Financial Statements of the current
period and are therefore the key audit matters.
We describe these matters in our auditor’s
report unless law or regulation precludes public
disclosure about the matter.
Report on compliance with the
ESEF Regulation
As part of our audit of the Financial Statements,
we performed procedures to express an opinion
on whether the annual report of Tryg A/S for the
financial year 1 January to 31 December 2022
with the filename TRYG-2022-12-31-en.zip is
prepared, in all material respects, in compliance
with the Commission Delegated Regulation
(EU) 2019/815 on the European Single Elec-
tronic Format (ESEF Regulation) which includes
requirements related to the preparation of the
annual report in XHTML format and iXBRL tag-
ging of the Consolidated Financial Statements
including notes.
Management is responsible for preparing an
annual report that complies with the ESEF Regu-
lation. This responsibility includes:
• The preparing of the annual report in XHTML
format;
• The selection and application of appropri-
ate iXBRL tags, including extensions to the
ESEF taxonomy and the anchoring thereof
to elements in the taxonomy, for all financial
information required to be tagged using
judgement where necessary;
• Ensuring consistency between iXBRL tagged
data and the Consolidated Financial State-
ments presented in human-readable format;
and
• For such internal control as Management de-
termines necessary to enable the preparation
of an annual report that is compliant with the
ESEF Regulation.
Annual report 2022 | Tryg A/S | 58
Financial statements - Contents
Our responsibility is to obtain reasonable assur-
ance on whether the annual report is prepared,
in all material respects, in compliance with the
ESEF Regulation based on the evidence we have
obtained, and to issue a report that includes
our opinion. The nature, timing and extent of
procedures selected depend on the auditor’s
judgement, including the assessment of the risks
of material departures from the requirements
set out in the ESEF Regulation, whether due to
fraud or error. The procedures include:
• Testing whether the annual report is pre-
pared in XHTML format;
• Obtaining an understanding of the compa-
ny’s iXBRL tagging process and of internal
control over the tagging process;
• Evaluating the completeness of the iXBRL
tagging of the Consolidated Financial State-
ments including notes;
• Evaluating the appropriateness of the com-
pany’s use of iXBRL elements selected from
the ESEF taxonomy and the creation of exten-
sion elements where no suitable element in
the ESEF taxonomy has been identified;
• Evaluating the use of anchoring of extension
elements to elements in the ESEF taxonomy;
and
• Reconciling the iXBRL tagged data with the
audited Consolidated Financial Statements.
In our opinion, the annual report of Tryg A/S for
the financial year 1 January to 31 December
2022 with the file name TRYG-2022-12-31-en.
zip is prepared, in all material respects, in com-
pliance with the ESEF Regulation.
Hellerup, 26 January 2023
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR No 3377 1231
Christian Fredensborg Jakobsen
State Authorised Public Accountant
mne16539
Per Rolf Larssen
State Authorised Public Accountant
mne24822
Annual report 2022 | Tryg A/S | 59
Financial statements - Contents
Financial highlights
DKKm 2022 2021 2020 2019 2018
NOK/DKK, average rate for the period 73.95 72.92 69.63 75.80 77.53
SEK/DKK, average rate for the period 70.33 73.39 70.95 70.62 72.67
Gross premium income 33,938 24,137 22,653 21,741 18,740
Gross claims -22,407 -16,275 -15,437 -14,857 -12,636
Total insurance operating costs -4,783 -3,394 -3,202 -3,081 -2,704
Profit/loss on gross business 6,748 4,468 4,014 3,803 3,400
Profit/loss on ceded business -723 -731 -499 -566 -624
Insurance technical interest, net of reinsurance 152 -29 -20 1 -10
Technical result 6,177 3,709 3,495 3,237 2,766
Investment return after insurance technical interest
a)
-1,193 870 311 579 -332
Other income and costs -1,933 -624 -265 -188 -172
Profit/loss before tax 3,051 3,956 3,541 3,628 2,262
Tax -804 -795 -768 -783 -529
Profit/loss on continuing business 2,247 3,161 2,773 2,845 1,733
Profit/loss on discontinued and divested business after tax 0 -3 0 -2 -2
Profit/loss for the period 2,247 3,158 2,773 2,843 1,731
Run-off gains/losses, net of reinsurance 1,380 963 1,145 1,194 1,221
Run-off gains/losses, Gross 1,449 949 1,130 1,173 1,236
Statement of financial position
Total provisions for insurance contracts 48,770 33,588 32,488 32,224 31,948
Total reinsurers' share of provisions for insurance contracts 1,851 1,494 1,377 1,501 1,415
Total equity 42,504 49,008 12,264 12,085 11,334
Total assets 114,113 100,392 60,916 59,059 56,545
Key ratios
Gross claims ratio 66.0 67.4 68.1 68.3 67.4
Net reinsurance ratio 2.1 3.0 2.2 2.6 3.3
Claims ratio, net of ceded business 68.2 70.5 70.3 70.9 70.7
Gross expense ratio 14.1 14.1 14.1 14.2 14.4
Combined ratio 82.2 84.5 84.5 85.1 85.1
Operating ratio 81.9 84.6 84.6 85.1 85.2
Relative run-off gains/losses 5.7 4.0 4.9 5.1 5.4
Return on equity after tax (%) 4.9 7.8 22.5 24.6 14.9
Note: Tryg’s acquisition of the activicies in Trygg-Hansa and Codan Norway were fully consolidated in the Financial Statements from the 1 April 2022.
a) Tryg’s acquisition of RSA Scandinavia affects the Financial Statement from closing the 1 June 2021.
The investment return includes income from RSA Scandinavia of DKK 34m (2021: DKK 1,206m) and includes net effect from demerger and
sale of Codan DK in 2022. Following demerger 1 April, Tryg has started fully consolidation of Codan Norway and Trygg-Hansa.
Please see the income overview in Management’s review for further details.
Annual report 2022 | Tryg A/S | 60
Financial statements - Contents
DKKm 2022 2021
Note Investment activities
14 Profit/Loss from associates -19 1,161
Income from investment property 48 41
7 Interest income and dividends 918 538
8 Value adjustments -913 -472
7 Interest expenses -154 -182
Administration expenses in connection with investment activities -145 -153
Total investment return -265 932
Return on insurance provisions -928 -62
Total investment return after insurance technical interest -1,193 870
Other income 150 139
9 Other costs -2,083 -763
Profit/loss before tax 3,051 3,955
10 Tax -804 -795
Profit/loss on continuing business 2,247 3,161
Profit/loss on discontinued and divested business 0 -3
Profit/loss for the year 2,247 3,158
24 Earnings per share 3.47 5.51
DKKm 2022 2021
Note General insurance
Gross premiums written 34,658 25,413
Ceded insurance premiums -1,673 -1,564
Change in premium provisions 157 -44
Change in reinsurers' share of premium provisions -3 -37
3 Premium income, net of reinsurance 33,139 23,768
4 Insurance technical interest, net of reinsurance 152 -29
Claims paid -22,046 -15,497
Reinsurance cover received 398 471
Change in claims provisions -361 -778
Change in the reinsurers' share of claims provisions 325 141
5 Claims, net of reinsurance -21,683 -15,663
Bonus and premium discounts -877 -1,232
Acquisition costs -3,695 -2,655
Administration expenses -1,088 -739
Acquisition costs and administration expenses -4,783 -3,394
Reinsurance commissions and profit participation from reinsu-
rers 229 257
6 Insurance operating costs, net of reinsurance -4,554 -3,137
2 Technical result 6,177 3,709
Income statement
Annual report 2022 | Tryg A/S | 61
Financial statements - Contents
DKKm 2022 2021
Note Profit/loss for the year 2,247 3,158
Other comprehensive income
Other comprehensive income which cannot subsequently be
reclassified as profit or loss
Actuarial gains/losses on defined-benefit pension plans -2 0
Tax on actuarial gains/losses on defined-benefit pension plans 1 0
-2 0
Other comprehensive income which can subsequently
be reclassified as profit or loss
Deferred tax related to receivable balance -50 0
Exchange rate adjustments of foreign entities -2,217 93
Exchange rate adjustments of foreign material associates 52 -52
Hedging of currency risk in foreign entities 496 -99
Tax on hedging of currency risk in foreign entities -109 22
-1,828 -36
Total other comprehensive income -1,830 -36
Comprehensive income 417 3,122
Statement of comprehensive income
Annual report 2022 | Tryg A/S | 62
Financial statements - Contents
DKKm 2022 2021
Note Equity and liabilities
18 Equity 42,504 49,008
1 Subordinated loan capital 4,154 4,442
19 Premium provisions 7,700 6,183
19 Claims provisions 39,227 25,587
Provisions for bonuses and premium discounts 1,843 1,818
Total provisions for insurance contracts 48,770 33,588
20 Pensions and similar obligations 85 108
21 Deferred tax liability 3,542 806
22 Other provisions 94 40
Total provisions 3,721 954
Debt relating to direct insurance 895 819
Debt relating to reinsurance 123 77
Amounts owed to credit institutions 1,305 835
Debt relating to repos 4,287 2,417
15 Derivative financial instruments 2,398 879
17 Current tax liabilities 83 218
23 Other debt 5,820 7,084
Total debt 14,911 12,329
Accruals and deferred income 52 71
Total equity and liabilities 114,113 100,392
1 Risk and capital management
25 Contractual obligations, collateral and contingent liabilities
26 Acquisition of activities
27 Related parties
28 Financial highlights
29 Accounting policies
30 Transition to IFRS 9 & IFRS 17 at 1 January 2023
DKKm 2022 2021
Note Assets
11 Intangible assets 32,716 7,025
Operating equipment 178 158
Owner-occupied property 693 604
12 Total property, plant and equipment 871 762
13 Investment property 1,017 1,040
14 Equity investments in associates 222 37,067
Total investments in associates 222 37,067
Equity investments 4,647 3,487
Unit trust units 8,330 8,231
Bonds 55,800 35,611
Other lending 75 75
Derivative financial instruments 1,340 913
Reverse repurchase lending 194 460
Total other financial investment assets 70,387 48,778
15 Total investment assets 71,626 86,885
Reinsurers' share of premium provisions 264 262
19 Reinsurers' share of claims provisions 1,587 1,232
16 Total reinsurers' share of provisions for insurance contracts 1,851 1,494
Receivables from policyholders 1,621 1,678
Total receivables in connection with direct insurance contracts 1,621 1,678
Receivables from insurance enterprises 498 407
Other receivables 414 485
15 Total receivables 2,534 2,570
17 Current tax assets 854 265
Cash at bank and in hand 2,662 802
Other 1 1
Total other assets 3,516 1,068
Interest and rent receivable 231 134
Other prepayments and accrued income 769 453
Total prepayments and accrued income 1,000 588
Total assets 114,113 100,392
Statement of financial position
Annual report 2022 | Tryg A/S | 63
Financial statements - Contents
Proposed dividend per share is calculated as the total
dividend proposed by the Supervisory Board after the
end of the financial year divided by the total number of
shares at the end of the year (654,653,980 shares).
The possible payment of dividend from Tryg Forsikring
A/S to Tryg A/S is influenced by contingency fund
provisions of DKK 4,724m (DKK 1,735m in 2021).
The contingency fund provisions can be used to cover
losses in connection with the settlement of insurance
provisions or otherwise for the benefit of the insured.
a) 352,505,989 new shares of nominal DKK 5 at a
price of 105 per share were issued. Costs related to
the issue of new shares are deducted in proceeds
recognised in retained earnings with DKK 694m.
DKKm
Share
capital
Reserve for
exchange rate
adjustment
Other
reserves
Retained
earnings
Proposed
dividend
Non-
controlling
interest Total
Equity at 31 December 2021 3,273 -11 1,735 43,309 700 1 49,008
2022
Profit/loss for the year 2,989 -4,860 4,118 0 2,247
Other comprehensive income -1,778 -52 0 -1,830
Total comprehensive income 0 -1,778 2,989 -4,912 4,118 0 417
Dividend paid -3,771 0 -3,771
Dividend own shares 38 0 38
Purchase and sale of own shares -3,253 0 -3,253
Share based payments 65 0 65
Total changes in equity in 2022 0 -1,778 2,989 -8,062 347 0 -6,504
Equity at 31 December 2022 3,273 -1,789 4,724 35,247 1,047 1 42,504
Equity at 31 December 2020 1,511 25 1,706 8,492 529 1 12,264
2021
Profit/loss for the year 29 327 2,802 3,158
Other comprehensive income -36 0 -36
Total comprehensive income 0 -36 29 327 2,802 0 3,122
Dividend paid -2,630 -2,630
Dividend own shares 3 3
Purchase and sale of own shares -137 -137
Issue of new shares
a)
1,763 34,557 36,320
Share based payments 66 66
Total changes in equity in 2021 1,763 -36 29 34,817 172 0 36,744
Equity at 31 December 2021 3,273 -11 1,735 43,309 700 1 49,008
Statement of changes in equity
Annual report 2022 | Tryg A/S | 64
Financial statements - Contents
Liabilities arising from financing activities
2022
Subordinated
loans
Amounts owed
to credit
institutions Total
Carrying amount at 1 January 4,442 835 5,277
Exchange rate adjustments -290 0 -290
Amortisation 2 0 2
Cash flow 0 471 471
Carrying amount at 31 December 4,154 1,305 5,459
2021
Carrying amount at 1 January 2,801 1,191 3,992
Exchange rate adjustments -658 0 -658
Amortisation 2 0 2
Cash flow 2,297 -356 1,941
Carrying amount at 31 December 4,442 835 5,277
DKKm 2022 2021
Note Cash flow from operating activities
Premiums 32,590 24,605
Claims -26,366 -14,597
Ceded business -1,126 -906
Costs -3,415 -3,296
Change in other debt and other amounts receivable 177 -686
Cash flow from insurance activities 1,859 5,120
Interest income 567 311
Interest expenses -149 -182
Dividend received 152 112
Taxes -1,039 -1,200
Other income and costs -1,147 -490
Total cash flow from operating activities 243 3,670
Cash flow from investment activities
Sale of property 0 160
Purchase/sale of equity investments and unit trust units (net) -222 -891
Purchase/sale of bonds (net) 1,810 -2,501
Purchase/sale of operating equipment (net) -50 -22
Acquisition/sale of associate 6,340 -36,357
Hedging of currency risk 496 -36
Total cash flow from investment activities 8,374 -39,647
Cash flow from financing activities
Issue of new shares 0 36,320
Purchase and sale of own shares (net) -3,253 -137
Subordinated loan capital 0 2,297
Dividend paid -3,771 -2,630
Change in lease liabilities -194 -137
Change in amounts owed to credit institutions 471 -356
Total cash flow from financing activities -6,747 35,357
DKKm 2022 2021
Change in cash and cash equivalents, net 1,870 -620
Exchange rate adjustment of cash and cash
equivalents, 1 January -11 32
Change in cash and cash equivalents, gross 1,860 -588
Cash and cash equivalents at 1 january 802 1,390
Cash and cash equivalents at 31 December 2,662 802
Cash flow statement
Annual report 2022 | Tryg A/S | 65
Financial statements - Contents
Notes
• Risk appetite
• Capital
• Strategy
• Crisis
management
Supervisory Board’s
Risk Committee
• Contingency
• Control
• Risk
identication
• Risk
management
Executive Board
Systematic risk
assessment
reporting
Risk reporting
recommen-
dations
Policies
Policies
and guidelines
Supervisory
Board
Business areasRisk management environment
Insurance
risk
Model
risk
Market
risk
Compliance
risk
Operational
risk
Risk Committee
• Compliance function
• Actuarial function
• Risk management
function
2nd line of defence
• Internal audit
• Internal audit function
3rd line of defence External audit
Reporting
Right to be heard,
cf. dra for
Executive order
on Management
• Business Management
1st line of defence
Supervisory Board’s
Risk Committee
Supervisory Board’s
Audit Committee
Executive Board
Supervisory Board
Lines of defence
Tryg’s risk management environment
What risk profile does Tryg want?
- Business model
- Strategy
- Policies
How is the actual risk profile meas-
ured?
Tactically
- Risk reports
- Internal controls
- Capital model
- Stress tests
How is this supported?
Tactically
- Policies
- Capital plan
- Contingency plan
Operationally
- Frameworks
- Limitations
- Instructions
- Allocated capital
- Contingency plans
1 Risk and capital management
Risk management in Tryg
The Supervisory Board defines the basis for the risk
appetite through the business model and the current
strategy. The Supervisory Board has regulated the
management of risk activities through policies and
guidelines to the business supported by underlying
business processes and a power of attorney structure.
The company’s risk management forms the basis for
the risk profile being in line with the specified risk
appetite at all times. Tryg’s risk profile is continuously
measured, quantified and reported to the manage-
ment and the Supervisory Board.
In Tryg, we have adopted a three lines of defence
governance model across the organisation. This is to
ensure robust governance and effective communica-
tion between the business areas, key functions and
internal audit as well as reporting to the Supervisory
Board and the Supervisory Board’s Risk Committee.
1st line of defence is the Business Management
2nd line of defence is Compliance-, Actuarial- and Risk
Management function
3rd line of defence is Internal Audit and Internal Audit
function
The 1st line consists of the Business Management:
The business areas are responsible for the daily risk
management and for carrying out every day work
based on Tryg’s policies and instructions regarding the
management of risks and are responsible for being
compliant with both internal and external require-
ments. This means that there must be procedures and
guidelines in place for vital areas, and that internal
controls are carried out in such a way that risks are
identified in a timely manner and necessary risk miti-
gation activities are implemented.
The 2nd line consists of the Compliance, Actuarial
and Risk Management function: The compliance
function has the overall responsibility for overseeing
and monitoring compliance with applicable laws and
legislation as well as internal policies and guidelines.
The key responsibility of the actuarial function is to
ensure and assess the adequacy of the provisions. The
risk management function is responsible for the facil-
itation, monitoring and implementation of effective
risk management practices and reporting of adequate
risk-related information throughout the organisation.
The risk management function ensures a consistent
approach to risk identification across the organisation,
risk assessment of the most significant risks at Group
level and reporting to the Supervisory Board.
Annual report 2022 | Tryg A/S | 66
Financial statements - Contents
Notes
Furthermore, the function prepares specific rec-
ommendations in relation to capital management,
reinsurance, investment risk management and more.
Tryg’s risk management function is also responsi-
ble for determining the company’s solvency capital
requirement.
The functions in the second line of defence must have
an overview of business processes and risks across the
organisation.
The 3rd line consists of internal audit: The third line
must ensure an independent and objective audit of
the organization’s internal controls, risk management
and governance processes. Internal audit reports
independently to the Supervisory Board and to its
Audit Committee.
The Supervisory Board has organised their own Risk
Committee consisting of 4 members of the Supervi-
sory Board. In addition to these 4 members, the Chief
Financial Officer, Chief Risk Officer and the General
Counsel (in Capacity as overseeing the Compliance
function) are part of the Committee. The Supervisory
Board’s Risk Committee was established to ensure
that all risk and capital related topics are discussed
thoroughly before discussed in the Supervisory Board.
The Supervisory Board meets minimum 4 times
annually.
Capital management
Tryg’s capital management is based on the key busi-
ness objectives:
• A solid capital base, supporting both the statutory
requirements and a single ‘A’ rating from Moody’s.
• Support of a steadily increasing nominal dividend
per share, with a payout ratio in the interval 60-90%
(of operating earnings)
Tryg’s capital base currently consist of Tier 1 and 2
capital, such as shareholders’ equity and subordinated
loans.
The capital base is continuously measured against
the capital requirement calculated on the basis of
Tryg’s partial internal model, where insurance risks are
modelled using an internal model, while other risks are
described using the standard formula.
The model calculates Tryg’s capital requirement with
99.5% solvency level with a 1-year horizon, which
means that Tryg will be able to fulfil its obligations in
199 out of 200 years. The partial internal model has
been used for a number of years, and was approved
by the Danish Financial Supervisory Authority (DFSA)
in December 2015. A major model change was last
approved by DFSA in April 2020.
Monitoring of the capital base also involves capital
projections based on expected business plans within
the strategic planning period and selected stress
scenarios.
Company’s Own Risk and
Solvency Assessment (ORSA)
ORSA is the company’s own risk assessment based
on the Solvency II principles, which implies that Tryg
must assess all material risks that the company is or
may be exposed to. The ORSA report also contains an
assessment of whether the calculation of solvency
capital requirement is reasonable and is reflecting
Tryg’s actual risk profile.
Tryg’s risk activities are implemented via continuous
risk management processes, where the main results
are reported to the Supervisory Board and its Risk
Committee during the year. Therefore, the ORSA
report is an annual summary document assessing all
these processes.
Insurance risk
Insurance risk comprises two main types of risks:
Underwriting risk and reserving risk.
Underwriting risk
Underwriting risk is the risk that insurance premiums
will not be sufficient to cover the compensations and
other costs associated with the insurance business.
Underwriting risk is managed primarily through the
company’s insurance policy defined by the Super-
visory Board, and administered through business
procedures, underwriting guidelines etc. Underwriting
risk is assessed in Tryg’s capital model, determining
the capital impact from insurance products.
Reinsurance is used to reduce the underwriting risk
in situations where this cannot be achieved to a
sufficient degree via ordinary diversification. The main
components of the reinsurance programme as of
January 1, 2023 are:
• In case of major events involving damage to build-
ings and contents, Tryg’s reinsurance programme
provides sufficient protection to cover a loss
defined by the Solvency II Standard Scenario which
corresponds to a 1 in 200 year event.
Retention for such events is DKK 300m.
• In addition Tryg has bought a specific cover for
aggregation of natural disasters with a retention of
DKK 500m.
• Tryg has also taken out reinsurance on a per risk ba-
sis for large claims occurring in business lines with
very high sums insured. Retention for large claims is
DKK 150m, gradually dropping to DKK 50m.
• Tryg has a reinsurance cover of other lines with
retention of DKK 100m for the first claim and DKK
25m for subsequent claims. For the individual sec-
tors, individual cover has subsequently been taken
out as needed.
The use of reinsurance creates a natural counterparty
risk. This risk is handled by applying a wide range of
reinsurers with a suitable rating and adequate capital
level as defined by the Supervisory Board.
Reserving risk
Reserving risk relates to the risk of Tryg’s insurance
provisions being inadequate. The Supervisory Board
lays down the overall framework for the handling of
reserving risk in the insurance policy, while the overall
risk is measured in the capital model. The uncertainty
associated with the calculation of claims reserves
affects Tryg’s results through the run-off on reserves.
Long-tailed reserves in particular are subject to inter-
est rate and inflation risk. Interest rate risk is hedged
by means of Tryg’s match portfolio which corresponds
to the discounted claims reserves. In order to manage
the inflation risk of claims reserves, Tryg has bought
zero coupon inflation swaps. After Trygs acquisition
of Trygg-Hansa, Tryg’s portfolio of long tailed Swedish
motor third party liability and personal accident has
increased significantly. Tryg determines the claims
reserves via statistical methods as well as individual
assessments.
At the end of 2022, Tryg’s claims reserves net of
reinsurance totalled DKK 37,639m with an average
discounted duration of approximately 5.2 years (aver-
age duration undiscounted 7.2 years).
Investment risk
The overall framework for managing investment risk is
defined by the Supervisory Board in Tryg’s investment
policy. In overall terms, Tryg’s investment portfolio is
divided into a match portfolio and a free portfolio. The
match portfolio corresponds to the value of the dis-
counted claims reserves and is designed to hedge the
interest rate sensitivity of these as closely as possible.
Tryg carries out daily monitoring, follow-up and risk
management of the Group’s interest rate risk.
The free portfolio is subject to the framework defined
by the Supervisory Board through the investment pol-
icy. The purpose of the free portfolio is to achieve the
highest possible return relative to risk. Tryg’s property
portfolio constitutes the company’s largest invest-
ment risk. The Property portfolio comprises primarily
well-diversified and liquid property investment funds,
but also a small proportion of directly held investment
properties, the value of which is adjusted based on the
conditions on the property market through internal
valuations backed by external valuations. At the end
of 2022, investment properties accounted for 6.7%
(including property funds) and Tryg’s equity portfolio
accounted for 5.1% of the total investment assets.
Tryg does not want to speculate in foreign currency,
but since Tryg invests and operates its insurance busi-
ness in other currencies than Danish kroner, Tryg is
Annual report 2022 | Tryg A/S | 67
Financial statements - Contents
Notes
exposed to currency risk. Tryg is primarily exposed to
fluctuations in the other Scandinavian currencies due
to its ongoing insurance activities. Premiums earned
and claims paid in other currencies create a natural
currency hedge, for which reason other risk mitigation
measures are not required in this area. However, the
part of equity held in other currencies than Danish kro-
ner will be exposed to currency risk. This risk is hedged
on an ongoing basis using currency swaps.
In addition to the above-mentioned risks, Tryg is ex-
posed to credit, counterparty and concentration risk.
These risks primarily relate to exposures in high-yield
bonds, emerging market debt exposures as well as
Tryg’s investments in AAA-rated Nordic and European
government and mortgage bonds. These risks are
also managed through the investment policy and the
framework for reinsurance defined in the insurance
policy.
For a non-life insurance company like Tryg, liquidity
risk is practically non-existent, as premium payments
fall due before claims payments. The only significant
assets on Tryg’s balance sheet, which by nature is
somewhat illiquid, are the property portfolio.
Operational risk
Operational risk relates to errors or failures in internal
procedures, fraud, breakdown of infrastructure, IT secu-
rity and similar factors. As operational risks are mainly
internal, Tryg focuses on an adequate control environ-
ment for its operations. In practice, this work is organ-
ised by means of procedures, controls and guidelines
covering the various aspects of the Group’s operations.
The Supervisory Board defines the overall framework
for managing operational risk in Tryg’s Operational risk
policy and in the Information Security Policy.
A special crisis management structure is set up to deal
with the eventuality that Tryg is hit by major crises.
This comprises a Crisis Management Team at Group
level, national contingency teams at country level
and finally business continuity teams in the individual
areas. Tryg has prepared contingency plans to address
the most important areas among these ensuring
servicing of customers. In addition, comprehensive IT
contingency plans have been established, primarily
focusing on the business critical systems.
Other risks
Strategic risk
The strategic risk is the risk of loss as a result of Tryg’s
chosen strategic position. The strategic position
covers both business transactions, IT strategy, choice
of business partners and changed market conditions.
Tryg’s strategic position is determined by Tryg’s Super-
visory Board in close collaboration with the Executive
Board. Before determining the strategic position, the
strategic decisions are subject to a risk assessment,
explaining the risk of the chosen strategy to Tryg’s
Supervisory Board and Executive Board.
Compliance risk
Compliance risk means the risk of Tryg being subject
to legal sanctions , authority sanctions, suffering
financial losses or deterioration of reputation due to
non compliance with legislation, market standards or
internal regulations. The Compliance function must
control assess and report whether Tryg’s methods and
procedures for complying with the legislation are relia-
ble and function effectively. The compliance functions
conducts a risk assessment annually and identifies the
areas to be reviewed in the coming year. Compliance
continuously deals with the identified compliance risks
until they are mitigated and monitors and assesses
whether any new risks are being handled. In addition,
the Compliance Function also provides ongoing
training in compliance matters, e.g. Code of conduct
and GDPR training as part of our mandatory
compliance training courses. In 2022, 99% of our
employee completed and passed the training on time.
Sensitivity analysis
DKKm 2022 2021
Insurance risk
Effect of 1% change in:
Combined ratio (1 percentage point) +/-339 +/-241
Large single loss -150 -150
Catastrophe event -200 -200
Reserving risk
1% change in inflation on person-related lines of business
a)
+/- 1.240 +/- 400
10% error in the assessment of long-tailed lines of business
(workers' compensation, motor liability, liability, accident) +/- 2.780 +/- 1,745
Investment risk
Interest rate market
Effect of 1 % increase in interest curve:
NOK:
Impact of interest-bearing securities -252 -183
Higher discounting of claims provisions 173 178
Net effect of interest rate rise -79 -5
SEK:
Impact of interest-bearing securities -936 -152
Higher discounting of claims provisions 1,164 192
Net effect of interest rate rise 228 40
DKK, EUR and Other:
Impact of interest-bearing securities -723 -813
Higher discounting of claims provisions 596 734
Net effect of interest rate rise -128 -78
Equity market
15 % decline in equity market -505 -516
Impact of derivatives and related thereto 32 18
Real estate market
15 % decline in real estate markets -694 -508
Currency market
Equity:
15 % decline in exposed currency (exclusive of EUR) relative to DKK -3,177 -1,237
Impact of derivatives 2,904 1,226
Net impact of exchange rate decline -273 -11
Technical result per year:
Impact of 15% change in NOK and SEK exchange rates relative to DKK +/- 524 +/- 183
a) Including the effect of the zero coupon inflation swap
Annual report 2022 | Tryg A/S | 68
Financial statements - Contents
Notes
Emerging risk
Emerging risk covers both new risks and already
known risks, with changing characteristics. The man-
agement of this type of risk is handled in a strategic
level by the Supervisory Board and Executive Board,
and also at an operational level by the individual
business areas, which monitor the market and adapt
the products as the conditions change. In the event of
a change in insurance terms, it is ensured that Tryg’s
reinsurance cover is consistent with the new condi-
tions. Emerging risk is also a part of the systematically
implemented risk identification process in Tryg.
Liquidity risk
Liquidity risk is the risk of loss as a result of not
being able to meet payments when they fall due. In
insurance companies the liquidity risk is very limited
as premiums are paid prior to the beginning of the risk
period. The majority of Tryg’s investment portfolio are
placed in AAA or AA rated bonds which can be either
sold or repoed in a short time span.
Provisions for claims
Gross (DKKm) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Estimated accumulated claims
End of year 12,953 13,359 12,206 14,192 12,380 12,209 13,182 14,068 16,497 16,953 25,475
1 year later 12,946 13,632 12,522 14,131 12,256 12,283 13,188 15,730 16,311 20,577
2 year later 12,976 13,294 12,350 14,090 12,168 12,220 14,972 15,693 17,217
3 year later 12,796 13,132 12,249 14,015 12,174 13,745 14,982 16,613
4 year later 12,546 13,109 12,166 13,967 13,663 13,738 15,783
5 year later 12,466 12,982 12,021 15,380 13,632 14,407
6 year later 12,368 12,781 13,164 15,344 14,076
7 year later 12,301 14,070 13,097 15,734
8 year later 13,478 14,034 13,373
9 year later 13,422 14,176
10 year later 15,191
15,191 14,176 13,373 15,734 14,076 14,407 15,783 16,613 17,217 20,577 25,475 182,622
Cumulative payments to date -12,780 -13,312 -12,468 -14,595 -12,777 -12,812 -13,687 -13,727 -13,372 -13,445 -13,108 -146,083
Provisions before discounting,
end of year 2,411 864 905 1,139 1,299 1,595 2,097 2,886 3,844 7,132 12,367 36,539
Discounting -853 -178 -196 -230 -252 -304 -389 -475 -586 -869 -902 -5,235
Reserves from 2011 and prior years 7,923
Gross provisions for claims, end of year 39,227
Estimated accumulated claims regarding
Trygg-Hansa and Codan Norway 1,879 306 449 526 572 732 862 1,032 1,557 3,011 6,605 17,530
The amounts in foreign currency in the table are translated to Danish kroner using the exchange rate at 31 December 2022 to prevent the impact of exchange rate fluctuations.
Annual report 2022 | Tryg A/S | 69
Financial statements - Contents
Notes
Provisions for claims (continued)
Ceded business (DKKm) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Estimated accumulated claims
End of year 210 535 260 2,053 195 275 594 351 717 524 754
1 year later 238 1,464 293 1,859 244 376 638 431 778 557
2 year later 274 1,247 288 1,891 237 371 665 452 705
3 year later 268 1,241 284 1,868 236 382 675 448
4 year later 256 1,257 305 1,898 232 353 683
5 year later 246 1,285 302 1,911 232 383
6 year later 259 1,334 304 1,903 230
7 year later 258 1,294 304 1,899
8 year later 325 1,292 306
9 year later 325 1,285
10 year later 332
332 1,285 306 1,899 230 383 683 448 705 557 754 7,581
Cumulative payments to date -256 -1,244 -293 -1,883 -227 -342 -631 -334 -516 -231 -94 -6,051
Provisions before discounting,
end of year 76 41 14 16 3 41 51 114 189 326 661 1,530
Discounting -3 -1 0 -1 0 -2 -2 -6 -8 -12 -25 -61
Reserves from 2011 and prior years 118
Provisions for claims, end of year 1,587
Estimated accumulated claims regarding
Trygg-Hansa and Codan Norway 0 0 3 0 0 11 1 0 2 8 39 63
The amounts in foreign currency in the table are translated to Danish kroner using the exchange rate at 31 December 2022 to prevent the impact of exchange rate fluctuations.
Annual report 2022 | Tryg A/S | 70
Financial statements - Contents
Notes
Provisions for claims (continued)
Net of reinsurance (DKKm) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Estimated accumulated claims
End of year 12,744 12,824 11,946 12,139 12,185 11,935 12,588 13,716 15,780 16,429 24,721
1 year later 12,708 12,168 12,229 12,272 12,012 11,907 12,550 15,299 15,534 20,020
2 year later 12,702 12,047 12,062 12,199 11,931 11,849 14,307 15,241 16,511
3 year later 12,529 11,891 11,964 12,147 11,938 13,363 14,307 16,165
4 year later 12,290 11,852 11,861 12,070 13,431 13,385 15,101
5 year later 12,220 11,697 11,719 13,468 13,400 14,024
6 year later 12,109 11,447 12,860 13,441 13,846
7 year later 12,043 12,776 12,793 13,835
8 year later 13,153 12,742 13,067
9 year later 13,097 12,891
10 year later 14,859
14,859 12,891 13,067 13,835 13,846 14,024 15,101 16,165 16,511 20,020 24,721 175,040
Cumulative payments to date -12,524 -12,068 -12,175 -12,712 -12,550 -12,470 -13,056 -13,393 -12,856 -13,214 -13,015 -140,032
Provisions before discounting,
end of year 2,335 823 891 1,123 1,296 1,554 2,045 2,772 3,655 6,806 11,707 35,009
Discounting -850 -177 -196 -229 -252 -302 -387 -469 -578 -857 -877 -5,174
Reserves from 2011 and prior years 7,805
Provisions for claims, net of reinsurance, end of the year 37,639
Estimated accumulated claims regarding
Trygg-Hansa and Codan Norway 1,879 306 446 526 572 721 861 1,031 1,555 3,003 6,566 17,467
The amounts in foreign currency in the table are translated to Danish kroner using the exchange rate at 31 December 2022 to prevent the impact of exchange rate fluctuations.
Annual report 2022 | Tryg A/S | 71
Financial statements - Contents
Notes
Expected cash flow, not discounted
DKKm 0-1 year 1-2 years 2-3 years > 3 years Total
2022
Claims provisions, gross 13,458 6,287 4,057 23,527 47,329
Claims provisions, ceded -980 -345 -155 -180 -1,659
12,478 5,942 3,903 23,348 45,670
2021
Claims provisions, gross 8,950 4,227 2,645 10,714 26,537
Claims provisions, ceded -700 -272 -130 -137 -1,239
8,251 3,955 2,516 10,578 25,299
Annual report 2022 | Tryg A/S | 72
Financial statements - Contents
Notes
DKKm 2022 2021
Investment risk
The notes below are based on Tryg's investment portfolio without the external customers share
Bond portfolio including interest derivatives
Duration 1 year or less 20,494 17,152
Duration 1 - 5 years 20,459 11,364
Duration 5 - 10 years 10,350 5,352
Duration more than 10 years 4,513 3,698
Total 55,816 37,566
Duration 3.8 3.1
The option adjusted duration is used to measure duration. The option adjustment relates primarily to Danish
mortgage bonds and reflects the expected duration-shortening effect of the borrower's option to cause the
bond to be redeemed through the mortgage institution at any point in time.
Shares
Nordic countries 193 73
Europe ex. Nordic contries 240 442
North America 1,752 1,684
Others 1,642 1,108
Total 3,827 3,307
Tryg’s share exposure includes exposure from share derivatives of DKK -214m (DKK -117m in 2021) and exclud-
ing shares related to propertiy exposure. Unlisted equity investments are based on an estimated market price.
Exposure to exchange rate risk
2022 2021
Assets
and debt Hedge Exposure
Assets
and debt Hedge Exposure
USD 7,271 -7,106 166 5,114 -5,041 74
EUR
a)
2,257 -973 1,284 2,105 -709 1,396
GBP 292 -274 18 308 -300 8
NOK 5,033 -5,066 33 2,711 -2,703 7
SEK 4,941 -4,862 80 -495 484 11
Other 1,113 -854 259 637 -616 21
Total 1,840 1,516
a) Due to correlation between DKK and EUR the exposure limit is higher than all other currencies.
DKKm
Credit risk 2022 2021
Bond portfolio by ratings DKKm % DKKm %
AAA 53,343 90.0 33,323 89.1
AA 2,502 4.2 764 2.0
A 725 1.2 1,036 2.8
BBB 1,016 1.7 736 2.0
BB 606 1.0 424 1.1
B or lower 1,098 1.9 1,121 3.0
Total 59,291 100.0 37,403 100.0
Reinsurance balances
AAA to A 1,548 90.3 1,207 86.8
Not rated 167 9.7 183 13.2
Total 1,715 100.0 1,390 100.0
Liquidity risk
Maturity of the Group’s financial obligations including interest
2022 0-1 year 1-5 years > 5 years Total
Subordinated loan capital 152 607 5,250 6,009
Amounts owed to credit institutions 1,305 0 0 1,305
Debt relating to unsettled funds transactions and
repos 4,287 0 0 4,287
Other debt 7,021 0 0 7,021
Total 12,765 607 5,250 18,622
2021 0-1 year 1-5 years > 5 years Total
Subordinate loan capital 110 439 5,172 5,720
Amounts owed to credit institutions 835 0 0 835
Debt relating to unsettled funds transactions and
repos 2,417 0 0 2,417
Other debt 8,248 0 0 8,248
Total 11,609 439 5,172 17,220
Interest on loans for a perpetual term has been recognised for the first fifteen years.
Annual report 2022 | Tryg A/S | 73
Financial statements - Contents
Notes
Subordinated loan capital
Bond loan
NOK 800m
b)
Bond loan
NOK 1,400m
Bond loan
SEK 1,000m
DKKm 2022 2021 2022 2021 2022 2021
a)
Amortised cost value of the loan recognised in
statement of financial position 566 596 989 1,042 - -
The fair value of the loan at the statement of finan-
cial position date 567 616 990 1,103 - -
The fair value of the loan at the statement of finan-
cial position date is based on a price of 100 103 100 106 - -
Total capital losses and costs at the statement of
the financial position date 0 1 1 2 - -
Interest expenses for the year 32 25 46 33 - 8
Effective interest rate 5.7% 4.1% 4.7% 3.2% - 6.9%
Loan terms:
Lender Listed bonds Listed bonds Listed bonds
Principal NOK 800m NOK 1,400m SEK 1,000m
Issue price 100 100 100
Issue date March 2013 November 2015 May 2016
Maturity year Perpetual 2045 2046
Loan may be called by lender as from 2023 2025 2021
Repayment profile Interest-only Interest-only Interest-only
Interest structure 3.75 % above NIBOR 3M (until 2023) 2.75 % above NIBOR 3M (until 2025) 2.75 % above STIBOR 3M (until 2026)
4.75 % above NIBOR 3M (from 2023) 3.75 % above NIBOR 3M (from 2025) 3.75 % above STIBOR 3M (from 2026)
a) Cancelled in 2021
The share of subordinated loan capital included in
Own Funds totals DKK 4,163m (DKK 4,453m in 2021).
The loans are initially recognised at fair value on the
date on which a loan is entered and subsequently
measured at amortised cost.
The loans are taken by Tryg Forsikring A/S. The credi-
tors have no option to call the loans before maturity or
otherwise terminate the loan agreements. The loans
are automatically accelerated upon the liquidation or
bankruptcy of Tryg Forsikring A/S.
Prices used for determination of fair value in respect
of the loans are based on actual traded prices from
Bloomberg.
b) Interest on the Notes is due and payable only at the
sole and absolute discretion of Tryg. Accordingly, Tryg
may at any time in its sole and absolute discretion
elect to cancel any interest payment (or any part the-
reof) which would otherwise be payable on any inte-
rest payment date. Will become payable only in the
event of Tryg Forsikring A/S’s bankruptcy.
Annual report 2022 | Tryg A/S | 74
Financial statements - Contents
Notes
Subordinated loan capital (continued)
Bond loan
NOK 850m
Bond loan
SEK 1,300m
Bond loan
SEK 700m
b)
DKKm 2022 2021 2022 2021 2022 2021
Amortised cost value of the loan recognised in
statement of financial position 600 633 867 942 466 506
The fair value of the loan at the statement of finan-
cial position date 563 631 830 944 463 515
The fair value of the loan at the statement of finan-
cial position date is based on a price of 94 100 95 100 99 101
Total capital losses and costs at the statement of
the financial position date 1 1 2 2 2 2
Interest expenses for the year 19 7 18 7 16 13
Effective interest rate 3.1% 1.7% 2.0% 1.1% 3.4% 2.5%
Loan terms:
Lender Listed bonds Listed bonds Listed bonds
Principal NOK 850m SEK 1,300m SEK 700m
Issue price 100 100 100
Issue date May 2021 May 2021 April 2018
Maturity year May 2051 May 2051 Perpetual
Loan may be called by lender as from 2027 2026 2023
Repayment profile Interest-only Interest-only Interest-only
Interest structure 1.25 % above NIBOR 3M (until 2031) 1.15 % above STIBOR 3M (until 2031) 2.5 % above STIBOR 3M
2.25 % above NIBOR 3M (from 2031) 2.15% above STIBOR 3M (from 2031)
b) Interest on the Notes is due and payable only at the
sole and absolute discretion of Tryg. Accordingly, Tryg
may at any time in its sole and absolute discretion
elect to cancel any interest payment (or any part the-
reof) which would otherwise be payable on any inte-
rest payment date. Will become payable only in the
event of Tryg Forsikring A/S’s bankruptcy.
Annual report 2022 | Tryg A/S | 75
Financial statements - Contents
Notes
Subordinated loan capital (continued)
Bond loan
SEK 1,000m
b)
DKKm 2022 2021
Amortised cost value of the loan recognised in statement of financial position
statement of financial position 666 723
The fair value of the loan at the statement of financial position date 638 740
The fair value of the loan at the statement of financial position date is based on a price of 95 102
Total capital losses and costs at the statement of the financial position date 3 3
Interest expenses for the year 21 15
Effective interest rate 3.2% 2.4%
Loan terms:
Lender Listed bonds
Principal SEK 1,000m
Issue price 100
Issue date February 2021
Maturity year Perpetual
Loan may be called by lender as from 2026
Repayment profile Interest-only
Interest structure 2.4 % above STIBOR 3M
2022 2021
Amortised cost value of the loan recognised in statement of financial position
Bond loan NOK 800m 566 596
Bond loan NOK 1,400m 989 1.042
Bond loan NOK 850m 600 633
Bond loan SEK 1,300m 867 942
Bond loan SEK 700m 466 506
Bond loan SEK 1,000m 666 723
Total amortised cost value of the loan recognised in statement of financial position 4,154 4,442
b) Interest on the Notes is due and payable only at the
sole and absolute discretion of Tryg. Accordingly, Tryg
may at any time in its sole and absolute discretion
elect to cancel any interest payment (or any part the-
reof) which would otherwise be payable on any inte-
rest payment date. Will become payable only in the
event of Tryg Forsikring A/S’s bankruptcy.
Annual report 2022 | Tryg A/S | 76
Financial statements - Contents
Notes
Situation in Ukraine
International tensions have increased since the
beginning of 2022 and escalated dramatically
after mid-February following Russia’s invasion
of Ukraine. These events have created some
turmoil and heigtened volatility in capital
markets. Tryg has a very modest (i.e. negligible)
exposure to the region both in terms of assets
and liabilities.
The exposure to Russia/Ukraine equities or
bonds is extremely low while also the business
exposure is insignificant. Financial impact on
Trygs result is expected to be isolated to the
effect on investment results following from the
general turmoil in financial markets.
Valuation of investments assets
The valuation of the investment assets can be
distributed in the fair value hierarchy model,
which is determined in accordance with IFRS 13.
The model distributes the total investments as-
sets based on the price at which the investment
assets are set. Reference is made to note 15, for
further description of the fair value hierarchy.
The main part of Tryg’s investment assets are
classified as level 1 and 2 and are valuated based
on listed prices. This involves the bond portfolio,
the main part of shares and unit trust units as
well as the statement of financial instruments.
Assets, which can be classified as level 3, can be
attributed to unlisted assets, specific unlisted
unit trusts and investment property.
As these investment assets are not valued based
on observable input, there will be a
discretionary element in this hierarchy.
On 31 December 2022, the value amounts to
DKK 1,145m (DKK 1,114m on 31 December
2021).
Annual report 2022 | Tryg A/S | 77
Financial statements - Contents
Notes
Description of segments
Please refer to the accounting policies for a descrip-
tion of operating segments.
a) From H1 2022 Tryg’s Operating segments are
reduced from four to three operating segments,
with the segment previous reported as “Sweden” is
moved to the Segment “Private” and comparative
figures are restated accordingly.
DKKm Private
a)
Commercial Corporate Other Group
2 Operating segments
2022
Gross premium income 21,960 8,350 3,628 0 33,938
Gross claims -14,915 -5,239 -2,253 0 -22,407
Gross operating expenses -2,961 -1,360 -462 0 -4,783
Profit/loss on ceded business -358 -126 -239 0 -723
Insurance technical interest, net of reinsurance 86 44 21 0 152
Technical result 3,813 1,670 694 0 6,177
Investment return and Other income and costs -3,127
Profit/loss before tax 3,051
Tax and other items -804
Profit/loss 2,247
Run-off gains/losses, net of reinsurance 338 560 482 0 1,380
Intangible assets 28,793 2,809 0 1,114 32,716
Equity investments in associates 0 0 0 222 222
Reinsurers' share of premium provisions 55 61 147 0 264
Reinsurers' share of claims provisions 13 630 944 0 1,587
Other assets 0 79,324
Total assets 114,113
Premium provisions 4,764 2,072 863 0 7,700
Claims provisions 22,094 9,992 7,141 0 39,227
Provisions for bonuses and premium discounts 1,723 120 0 0 1,843
Other liabilities 0 22,839
Total liabilities 71,609
Annual report 2022 | Tryg A/S | 78
Financial statements - Contents
Notes
Description of segments
Please refer to the accounting policies for a descrip-
tion of operating segments.
a) From H1 2022 Tryg’s Operating segments are
reduced from four to three operating segments,
with the segment previous reported as “Sweden” is
moved to the Segment “Private” and comparative
figures are restated accordingly.
DKKm Private
a)
Commercial Corporate Other Group
2 Operating segments (continued)
2021
Gross premium income 15,386 5,294 3,457 0 24,137
Gross claims -10,518 -3,334 -2,423 1 -16,275
Gross operating expenses -2,087 -913 -396 1 -3,394
Profit/loss on ceded business -267 -191 -273 0 -731
Insurance technical interest, net of reinsurance -18 -7 -4 0 -29
Technical result 2,496 850 361 2 3,709
Investment return and Other income and costs 247
Profit/loss before tax 3,956
Tax and other items -798
Profit/loss 3,158
Run-off gains/losses, net of reinsurance 372 309 282 1 963
Intangible assets 6,070 60 0 895 7,025
Equity investments in associates 37,067 37,067
Reinsurers' share of premium provisions 55 33 174 0 262
Reinsurers' share of claims provisions 48 377 806 0 1,232
Other assets 0 54,805
Total assets 100,392
Premium provisions 3,743 1,451 990 0 6,183
Claims provisions 9,766 7,573 8,249 0 25,587
Provisions for bonuses and premium discounts 1,712 102 4 0 1,818
Other liabilities 0 17,796
Total liabilities 51,384
Non-current assets by country 2022 2021
Denmark 6,817 6,785
Norway 25,075 462
Sweden 1,685 539
Other 10 1
Total 33,587 7,787
Annual report 2022 | Tryg A/S | 79
Financial statements - Contents
Notes
DKKm 2022 2021 2020 2019 2018
2 Geographical segments
Danish general insurance
Gross premium income 15,612 14,326 13,902 13,126 10,375
Technical result 2,685 2,448 2,694 2,595 1,986
Run-off gains/losses, net of reinsurance 752 644 639 717 714
Key ratios
Gross claims ratio 67.2 66.2 65.5 64.9 61.4
Net reinsurance ratio 1.7 2.0 1.1 1.5 5.4
Claims ratio, net of ceded business 68.8 68.2 66.6 66.4 66.8
Gross expense ratio 14.2 14.4 13.9 13.6 13.9
Combined ratio 83.1 82.7 80.4 80.0 80.7
Run-off, net of reinsurance (%) -4.8 -4.5 -4.6 -5.5 -6.9
Number of full-time employees, end of period 3,345 3,062 2,826 2,622 2,501
Norwegian general insurance
NOK/DKK, average rate for the period 73.95 72.92 69.63 75.80 77.53
Gross premium income 8,386 7,263 6,411 6,472 6,302
Technical result 1,267 938 473 469 791
Run-off gains/losses, net of reinsurance 319 215 247 283 520
Key ratios
Gross claims ratio 66.9 69.1 75.3 73.7 72.6
Net reinsurance ratio 4.9 5.0 3.4 5.1 1.2
Claims ratio, net of ceded business 71.8 74.1 78.7 78.8 73.8
Gross expense ratio 13.6 13.1 14.1 14.4 13.9
Combined ratio 85.5 87.2 92.7 93.1 87.7
Run-off, net of reinsurance (%) -3.8 -3.0 -3.9 -4.4 -8.3
Number of full-time employees, end of period 1,344 1,139 1,099 1,083 1,105
Annual report 2022 | Tryg A/S | 80
Financial statements - Contents
Notes
DKKm 2022 2021 2020 2019 2018
2 Geographical segments
Swedish general insurance
SEK/DKK, average rate for the period 70.33 73.39 70.95 70.62 72.67
Gross premium income 9,730 2,390 2,234 2,120 2,073
Technical result 2,227 279 331 169 94
Run-off gains/losses, net of reinsurance 289 113 274 205 -9
Key ratios
Gross claims ratio 63.1 71.4 65.8 74.0 82.3
Net reinsurance ratio 0.5 2.2 4.0 2.0 -1.7
Claims ratio, net of ceded business 63.6 73.6 69.9 75.9 80.6
Gross expense ratio 14.1 14.6 15.3 16.1 14.6
Combined ratio 77.7 88.3 85.1 92.0 95.2
Run-off, net of reinsurance (%) -3.0 -4.7 -12.3 -9.7 0.4
Number of full-time employees, end of period 1,781 431 441 419 402
Other
a)
Gross premium income 211 159 105 24 -10
Technical result -2 43 -3 4 -105
Run-off gains/losses, net of reinsurance 20 -8 -15 -12 -4
Number of full-time employees, end of period 49 42 33 28 19
Tryg (total)
Gross premium income 33,938 24,137 22,653 21,741 18,740
Technical result 6,177 3,709 3,495 3,237 2,766
Investment return -1,193 1,008 311 579 -332
Other income and costs -1,933 -624 -265 -188 -172
Profit/loss before tax 3,051 4,093 3,541 3,628 2,262
Run-off gains/losses, net of reinsurance 1,380 963 1,145 1,194 1,221
Key ratios
Gross claims ratio 66.0 67.4 68.1 68.3 67.4
Net reinsurance ratio 2.1 3.0 2.2 2.6 3.3
Claims ratio, net of ceded business 68.2 70.5 70.3 70.9 70.7
Gross expense ratio 14.1 14.1 14.1 14.2 14.4
Combined ratio 82.2 84.5 84.5 85.1 85.1
Run-off, net of reinsurance (%) -4.1 -4.0 -5.1 -5.5 -6.5
Number of full-time employees, end of period 6,518 4,674 4,400 4,151 4,027
a) Comprises credit & surety insurance (Tryg Garanti)
in Finland, Netherlands, Austria, Switzerland, Belgium,
Germany and amounts relating to one-off items.
Annual report 2022 | Tryg A/S | 81
Financial statements - Contents
Notes
2 Technical result, net of reinsurance, by line of business
DKKm Accident and health Health care
Worker's
compensation Motor TPL
Motor comprehensive
insurance
Marine, aviation and
cargo insurance
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Gross premiums written 5,454 2,989 773 633 1,065 954 2,911 2,033 8,375 5,748 281 234
Gross premium income 5,122 2,751 753 637 1,045 933 2,953 2,010 7,954 5,458 275 228
Gross claims - 3,042 - 1,844 - 583 - 506 - 241 - 681 - 1,348 - 1,251 - 5,714 - 3,616 - 136 - 94
Gross operating expenses - 681 - 409 - 111 - 75 - 123 - 116 - 445 - 291 - 975 - 747 - 48 - 34
Profit/loss on ceded business - 10 - 11 0 0 - 4 - 14 - 41 - 29 - 93 - 88 - 31 - 33
Insurance technical interest,
net of reinsurance 24 - 3 2 - 1 5 8 13 2 31 - 6 1 0
Technical result 1,413 484 61 55 682 130 1,132 441 1,203 1,001 61 67
Gross claims ratio 59.4 67.0 77.4 79.4 23.1 73.0 45.6 62.2 71.8 66.3 49.5 41.2
Combined ratio 72.9 82.3 92.2 91.2 35.2 86.9 62.1 78.2 85.3 81.6 78.2 70.6
Claims frequency
a)
6.9% 4.4% 33.0% 63.2% 15.9% 16.3% 6.7% 5.7% 27.4% 23.4% 27.0% 16.6%
Average claims DKK
b)
11,990 21,155 5,786 5,332 77,362 96,143 10,313 19,677 7,968 8,634 21,721 50,844
Total claims 274,306 89,800 109,839 103,853 11,618 10,238 158,615 87,435 709,220 423,792 6,259 2,147
DKKm
Fire and contents
(Private)
Fire and contents
(Commercial)
Change of
ownership
Liability
insurance
Credit and surety
insurance
Tourist assistance
insurance
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Gross premiums written 7,901 6,150 3,578 2,903 0 0 1,677 1,356 739 651 1,067 1,006
Gross premium income 7,805 5,875 3,865 2,874 12 21 1,711 1,298 738 647 1,041 844
Gross claims - 5,457 - 4,195 - 2,704 - 1,930 - 2 2 - 926 - 1,006 - 559 - 308 - 1,041 - 360
Gross operating expenses - 1,214 - 759 - 594 - 465 - 4 - 6 - 285 - 212 - 114 - 96 - 116 - 120
Profit/loss on ceded business - 247 - 238 - 271 - 256 0 0 - 26 - 6 61 - 60 - 59 3
Insurance technical interest,
net of reinsurance 28 - 21 26 - 5 0 0 12 - 1 1 - 1 4 - 2
Technical result 915 662 322 218 6 17 486 73 127 182 - 171 365
Gross claims ratio 69.9 71.4 70.0 67.2 16.7 -9.5 54.1 77.5 75.7 47.6 100.0 42.7
Combined ratio 88.6 88.4 92.3 92.2 50.0 19.0 72.3 94.3 82.9 71.7 116.8 56.5
Claims frequency
a)
10.4% 9.9% 8.0% 16.9% 2.9% 3.7% 6.4% 10.9% 0.3% 0.0% 22.5% 9.4%
Average claims DKK
b)
9,690 9,697 64,195 49,458 24,374 29,369 65,281 83,708 1,024,542 4,923,206 6,412 6,901
Total claims 568,677 445,872 41,024 35,556 310 521 15,790 11,533 709 63 163,672 63,963
a) The claims frequency is calculated as the number of claims incurred in the year in proportion to the average number of insurance contracts in the year.
b) Average claims are total claims before run-off in the year relative to the number of claims in the year.
Annual report 2022 | Tryg A/S | 82
Financial statements - Contents
Notes
a) Group Life, one-year policies related to Norwegian
Group Life and Alka Group Life.
2 Technical result, net of reinsurance, by line of business (continued)
DKKm
Total exclusive of
Group Life
Group Life,
one-year policies
a)
Total
2022 2021 2022 2021 2022 2021
Gross premiums written 33,821 24,657 837 756 34,658 25,413
Gross premium income 33,274 23,576 664 561 33,938 24,137
Gross claims - 21,753 - 15,789 - 654 - 486 - 22,407 - 16,275
Gross operating expenses - 4,710 - 3,330 - 73 - 64 - 4,783 - 3,394
Profit/loss on ceded business - 721 - 732 - 2 1 - 723 - 731
Insurance technical interest, net of reinsurance 147 - 30 4 1 152 - 29
Technical result 6,237 3,695 - 61 13 6,177 3,709
Gross claims ratio 65.4 67.0 98.5 86.6 66.0 67.4
Combined ratio 81.7 84.2 109.8 97.9 82.2 84.5
Annual report 2022 | Tryg A/S | 83
Financial statements - Contents
Notes
DKKm 2022 2021
6 Insurance operating costs, net of reinsurance
Commissions regarding direct insurance contracts -420 -223
Other acquisition costs -3,275 -2,432
Total acquisition costs -3,695 -2,655
Administration expenses -1,088 -739
Insurance operating costs, gross -4,783 -3,394
Commission from reinsurers 229 257
-4,554 -3,137
Fees to the auditors appointed by the annual general meeting:
PwC, included in administrative expenses -8 -7
-8 -7
The fee is divided into:
Statutory audit -6 -4
Other audit assignments 0 -1
Other services -2 -2
-8 -7
Expenses for the Group´s Internal Audit Department. -14 -9
Fees for non-audit services provided by PricewaterhouseCoopers to the Group amount to DKK 2m
(DKK 3m in 2021) and consist of general tax and accounting advice and consulting services.
DKKm 2022 2021
3 Premium income, net of reinsurance
Direct insurance 34,744 25,304
Indirect insurance 72 65
34,816 25,369
Unexpired risk provision -1 0
34,815 25,369
Ceded direct insurance -1,676 -1,601
33,139 23,768
Direct insurance, by location of risk 2022 2021
Gross Ceded Gross Ceded
Denmark 16,381 -757 15,404 -762
Other EU countries
b)
9,913 -384 2,572 -281
Other countries
a)
8,449 -535 7,328 -558
34,743 -1,676 25,304 -1,601
a) Primarily Norway
b) Primarily Sweden
2022 2021
4 Insurance technical interest, net of reinsurance
Return on insurance provisions 928 62
Discounting transferred from claims provisions -776 -91
152 -29
5 Claims, net of reinsurance
Claims -23,855 -17,224
Run-off previous years, gross 1,449 949
-22,407 -16,275
Reinsurance cover received 792 598
Run-off previous years, reinsurers' share -68 14
-21,683 -15,663
Annual report 2022 | Tryg A/S | 84
Financial statements - Contents
Notes
DKKm 2022 2021
6 Insurance operating costs, gross, classified by type (continued)
Commissions -421 -223
Staff expenses -2,677 -2,212
Other staff expenses -199 -126
Office expenses, fees and headquarter expenses -1,357 -798
IT operating and maintenance costs, software expenses -318 -247
Depreciation, amortisation and impairment losses and write-downs -118 -107
Other income 305 318
-4,783 -3,395
Please refer to note 12 and 23 for leases recognised according to IFRS 16.
Total staff expenses recognized in income statement:
Salaries and wages -3,866 -3,167
Commision -5 -7
Allocated conditional and matching shares -64 -55
Pension plans -530 -427
Other social security costs -8 -7
Payroll tax -828 -623
-5,301 -4,286
Please refer to note 27 for specification of Remuneration for the Supervisory Board and
Executive Board.
Average number of full-time employees during the year
(continuing business) 5,944 4,544
Annual report 2022 | Tryg A/S | 85
Financial statements - Contents
Notes
Matching shares
In accordance with the Group’s remuneration policy
Tryg has on agreed terms allocated matching shares
for some employees.
Executive Board, Risk-takers and Other employees are
allocated one share in Tryg A/S for each share they
acquire in Tryg A/S at market rate for liquid cash at a
contractually agreed sum over deferral period of up to
4 years.
In 2022, the recognised fair value of matching shares
for the Group amounted to DKK 18m (DKK 15m
in 2021). At 31 December 2022, total fair value for
matching shares amounted to DKK 38m. The fair val-
ue is adjusted for dividend paid, no expected dividend
is included.
DKKm
6 Share-based payment
Matching shares Total Numbers Fair Value
2022
Executive
Board Risk-takers Other Total
Average value
per matching
share at grant
date DKK
Total value at
time of alloca-
tion DKKm
Value per
matching
share at 31
December
DKK
Total fair
value at 31
December
DKKm
Matching shares allocated in
2022 0 6,695 62,494 69,189 172 12 165 11
Allocated in 2011-2021 295,068 93,636 287,096 675,800 134 91 165 112
Category changes and addition 0 7,788 -7,788 0 134 0 165 0
Cancelled -14,328 -7,476 -47,272 -69,076 134 -9 165 -11
Exercised -196,558 -72,467 -173,163 -442,188 134 -59 165 -73
Total 31.12.22 84,182 21,481 58,874 164,536 134 22 165 27
2021
Executive
Board Risk-takers Other Total
Average value
per matching
share at grant
date DKK
Total value at
time of alloca-
tion DKKm
Value per
matching
share at 31
December
DKK
Total fair
value at 31
December
DKKm
Matching shares allocated in
2021 0 2,680 74,216 76,896 149 11 162 12
Allocated in 2011-2020 295,068 89,859 206,880 591,807 133 78 162 96
Category changes and addition 0 1,097 6,000 7,097 133 1 162 1
Cancelled -14,328 -7,476 -40,572 -62,376 133 -8 162 -10
Exercised -112,806 -45,487 -139,235 -297,528 133 -39 162 -48
Total 31.12.21 167,934 37,993 33,073 239,000 133 32 162 39
Annual report 2022 | Tryg A/S | 86
Financial statements - Contents
Notes
DKKm
6 Share-based payment
Conditional shares Total Numbers Fair Value
2022
Executive
Board Risk-takers Other Total
Average value
per condi-
tional share at
grant date
DKK
Total value at
time of alloca-
tion DKKm
Value per con-
ditional share
at 31 Decem-
ber DKK
Total fair
value at 31
December
DKKm
Conditional shares allocated
in 2022 70,169 30,973 4,314 105,456 162 17 165 17
Allocated in 2018-2021 135,949 405,078 212,088 753,115 172 130 165 125
Category changes and addition 0 54,674 10,594 65,268 172 11 165 11
Cancelled 0 0 -8,231 -8,231 172 -1 165 -1
Exercised -10,077 -106,742 -139,496 -256,315 172 -44 165 -42
Total 31.12.22 125,872 353,010 74,955 553,837 172 95 165 92
2021
Executive
Board Risk-takers Other Total
Average value
per condi-
tional share at
grant date
DKK
Total value at
time of alloca-
tion DKKm
Value per con-
ditional share
at 31 Decem-
ber DKK
Total fair
value at 31
December
DKKm
Conditional shares allocated
in 2021 98,776 158,233 89,662 346,671 167 58 162 56
Allocated in 2018-2020 37,173 242,856 91,775 371,804 176 66 162 60
Category changes and addition 0 3,989 30,651 34,640 176 6 162 6
Cancelled 0 0 -8,231 -8,231 176 -1 162 -1
Exercised -5,613 -33,230 -56,105 -94,948 176 -17 162 -15
Total 31.12.21 31,560 213,615 58,090 303,265 176 53 162 49
Conditional shares
In accordance with the Group’s remuneration policy
Tryg has on agreed terms allocated conditional shares
for some employees.
Executive Board, Risk-takers and Other employees are
allocated shares in Tryg A/S if certain conditions are
fulfilled over a period of up to 4 years.
In 2022, the recognised fair value of conditional shares
for the Group amounted to DKK 46m (DKK 40m in
2021). At 31 December 2022, total fair value of condi-
tional shares amounted to DKK 109m.
Annual report 2022 | Tryg A/S | 87
Financial statements - Contents
Notes
DKKm 2022 2021
9 Other income and costs
Include income and costs which cannot be directly ascribed to
the insurance portfolio or investment assets.
Other income
Income related to the sale of pension products and car care 126 108
Other income 24 31
150 139
Other costs
Costs related to the sale of pension products and car care -100 -102
Depreciations of customer relations and trademarks -786 -136
Integration and restructuring costs related to RSA acquisition
a)
-949 -349
Other costs -248 -176
-2,083 -763
-1,933 -624
a) Integration and restructuring costs primarily relates to it integration, fees to advisors
and staff expenses.
10 Tax
Tax on accounting profit/loss -671 -763
Difference between Danish and foreign tax rates -21 -156
Tax adjustment, previous years -11 105
Adjustment of non-taxable income and costs -90 35
Change in valuation of tax assets 19 -1
Change in tax rate -30 0
Other taxes 0 -15
-804 -795
Effective tax rate % %
Tax on accounting profit/loss 22.0 22.0
Difference between Danish and foreign tax rates 1.0 3.5
Tax adjustment, previous years 0.5 -2.5
Adjustment of non-taxable income and costs 3.0 -1.0
Change in valuation of tax assets -1.0 0.0
Change in tax rate 1.0 0.0
Other taxes 0.0 0.5
26.5 22.5
DKKm 2022 2021
7 Interest and dividends
Interest income and dividends
Dividends 152
112
Interest income, bonds 763
422
Interest income, other 2
4
918
538
Interest expenses
Interest expenses subordinated loan capital, credit institutions
and cash at bank -152
-107
Interest expenses, other
a)
-3
-75
-154
-182
763
356
a) Hereof DKK 33m in 2021 related to the RSA acquisition, please refer to note 26
for specification of the acquisition.
8 Value adjustments
Value adjustments concerning financial assets or liabilities at
fair value with value adjustment in the income statement:
Equity investments 704
269
Unit trust units -1,481
1,095
Bonds -2,117
-312
Derivatives (Equity and Interest)
a)
-1,343
-1,750
-4,236
-698
Value adjustments concerning assets or liabilities that cannot
be attributed to IAS 39:
Investment property 9
64
Discounting 3,418
527
Other statement of financial position items -103
-365
3,324
226
-913
-472
Exchange rate adjustments concerning financial assets or liabilities which cannot be stated at fair value
total DKK 247m (DKK -336m in 2021)
a) Hereof value adjustment of currency hedge in 2021 DKK 1,035m related to RSA acquisition, which
consists of the premium paid and exchange rate adjustments which cannot be attributed to hedge ac-
counting.
Annual report 2022 | Tryg A/S | 88
Financial statements - Contents
Notes
DKKm
11 Intangible assets
Goodwill
Trademarks
and
customer
relations Software
a)
Assets
under con-
struction
a)
Total
2022
Cost
Cost at 1 January 4,880 1,863 2,267 267 9,276
Exchange rate adjustments -34 -16 -29 -4 -84
Transferred from assets
under construction 215 -215 0
Additions for the year 77 281 358
Additions, demerger of
Trygg-Hansa, Codan Norway 15,827 10,441 74 40 26,382
Disposals for the year -7 -7
Cost at 31 December 20,673 12,287 2,597 369 35,926
Amortisation and write-downs
Amortisation and write-downs
at 1 January -104 -510 -1,637 0 -2,251
Exchange rate adjustments 0 12 19 0 31
Amortisation for the year 0 -756 -233 0 -988
Impairment losses and
write-downs for the year 0 0 -7 0 -7
Reversed amortisation 0 0 7 0 7
Amortisation and write-downs
at 31 December -104 -1,254 -1,851 0 -3,209
Carrying amount at 31 December 20,569 11,033 746 369 32,716
Material intangible assets
Trygg-Hansa Brand DKK 2,557m not depreciated
Trygg-Hansa Customer relations Private customers DKK 6,425m depreciated over 10 years
Trygg-Hansa Customer relations Commercial customers DKK 815m depreciated over 7 years
DKKm
11 Intangible assets (continued)
Goodwill
Trademarks
and
customer
relations Software
a)
Assets
under con-
struction
a)
Total
2021
Cost
Cost at 1 January 4,885 1,865 2,154 222 9,127
Exchange rate adjustments -5 -2 22 4 18
Transferred from asset under
construction 0 0 208 -208 0
Additions for the year 0 0 72 249 321
Additions, demerger of
Trygg-Hansa, Codan Norway
Disposals for the year 0 0 -190 0 -190
Cost at 31 December 4,880 1,863 2,267 267 9,276
Amortisation and write-downs
Amortisation and write-downs
at 1 January -104 -375 -1,523 0 -2,002
Exchange rate adjustments 0 1 -12 0 -11
Amortisation for the year 0 -136 -212 0 -348
Impairment losses and
write-downs for the year 0 0 -79 0 -79
Reversed amortisation 0 0 188 0 188
Amortisation and write-downs
at 31 December -104 -510 -1,637 0 -2,251
Carrying amount at 31 December 4,776 1,353 630 267 7,025
a) Hereof proprietary software and assets under construction DKK 445m (DKK 377m at 31 December
2021).
Annual report 2022 | Tryg A/S | 89
Financial statements - Contents
Notes
DKKm
11 Intangible assets (continued)
Impairment test
Goodwill
The Value-in-use method is used when testing the Goodwill for impairment.
Primary assumptions for impairment test:
When assessing the cash flow management has based its estimates of premiums earned on the insurance
portfolio adjusted to reflect the expected effect of business decisions and market development from past
experiences. The portfolio is indexed with the wage and salary index. Claims incurred are based on expect-
ed claims ratios, which corresponds to normalised large- and weather claims. Reinsurance is taken into
account when looking at the overall technical result together with the expected expense ratio. Required
returns are based on management’s requirements for returns of the individual cash generation units and
are not expected to change significantly in the near future.
Alka
In 2018, Tryg acquired Forsikrings-Aktieselskabet Alka. The insurance activities were incorporated into the
Tryg Group’s business structure from 8 November 2018.
Comprises the sale of insurance products to customers under the ‘Alka’ brand.
At 31 December 2022, management performed an impairment test of the carrying amount of goodwill
based on the allocation of the cost of goodwill to the cash-generating unit.
The cash flows appearing from the latest prognosis approved by management for the next 6 quarters are
used when calculating the value in use of Private DK. The cash flows in the latest prognosis period have
been extrapolated for financial years after the prognosis periods (terminal period) and adjusted for expect-
ed growth rates determined on the basis of expectations for the general economic growth. The required
return is based on an assessment of the risk profile of the tested business activities compared with the
market’s expectations for the Group.
The impairment test shows a calculated value in use of approximately DKK 26.9bn (DKK 36.5bn) relative
to the value of the CGU of DKK 13.7.bn (DKK 12.7bn) and does not indicate any impairment in 2022.
Goodwill amounts to DKK 4.2bn (DKK 4.2bn).
According to the sensitivity information below a change in the required return rate will have the highest ef-
fect on the equity. An increase in the required return of approx. 3.3% will result in a write down of goodwill.
DKKm 2022 2021
11 Intangible assets (continued)
- Earned premium assumed CAGR 0 - 10 years 3% 4%
- Earned premium assumed CAGR > 10 years (terminal period) 2% 2%
- Required return before tax 9% 6%
- Expected level of combined ratio 82% 81%
Sensitivity information
Impact on the calculated present value from the following
changes:
CAGR +1.0 percentage point (0 - 10 years) 1.1bn 1.7bn
CAGR -1.0 percentage point (0 - 10 years) -1.1bn -1.6bn
Required return +1.0 percentage point -4.1bn -7.1bn
Required return -1.0 percentage point 5.9bn 11.6bn
Combined ratio +1.0 percentage point -1.4bn -1.8bn
Combined ratio -1.0 percentage point 1.4bn 1.8bn
The above changes have no impact on equity.
Norway
In 2022, Tryg acquired the Norwigian branch Codan Norway. See note 26. The insurance activities were
incorporated into the Tryg Group’s business structure from 1 April 2022 and distributed under the Tryg
Brand.
In 2017, Tryg acquired Obos’ insurance portfolio. The insurance activities were incorporated into the
Tryg Group’s business structure from 1 June 2017.
At 31 December 2022, management performed an impairment test of the carrying amount of goodwill
based on the allocation of the cost of goodwill to the cash-generating unit.
The cash flows appearing from the latest prognosis approved by management for the next 6 quarters
are used when calculating the value in use of private Norway. The cash flows in the prognosis period
have been extrapolated for financial years after the prognosis periods (terminal period) and adjusted for
expected growth rates determined on the basis of expectations for the general economic growth. The
required return is based on an assessment of the risk profile of the tested business activities compared
with the market’s expectations for the Group.
The impairment test shows a calculated value in use of approximately DKK 9.6bn (DKK 0.5bn) relative
to the value of the CGU of DKK 3,3.bn (DKK 159m) and does not indicate any impairment in 2022
Goodwill amounts to DKK 1.2bn (DKK 48m).
According to the sensitivity information below a change in the required return rate will have the highest ef-
fect on the equity. An increase in the required return of approx. 4.4% will result in a write down of goodwill.
Annual report 2022 | Tryg A/S | 90
Financial statements - Contents
Notes
DKKm 2022 2021
11 Intangible assets (continued)
- Earned premium assumed CAGR 0 - 10 years 2% 2%
- Earned premium assumed CAGR > 10 years (terminal period) 2% 2%
- Required return before tax 10% 10%
- Expected level of combined ratio 78% 88%
Sensitivity information
Impact on the calculated present value from the following
changes:
CAGR +1.0 percentage point (0 - 10 years) 1.5bn 92
CAGR -1.0 percentage point (0 - 10 years) -1.4bn -87
Required return +1.0 percentage point -5.0bn -354
Required return -1.0 percentage point 7.1bn 498
Combined ratio +1.0 percentage point -1.5bn -199
Combined ratio -1.0 percentage point 1.5bn 199
The above changes have no impact on equity.
Trademarks and customer relations
As at 31 December 2022 management performed an assessment of the carrying amounts of customer
relations as an integral part of the Sweden, Norway and Alka portfolio goodwill test.
Software and assets under construction
As at 31 December 2022 management performed a test of the carrying amounts of software and assets
under construction.
The impairment test compares the carrying amount with the estimated present value of furture cash
flows. The test did indicate an impairment of DKK 7m (DKK 79m) of it systems, due to higher related
costs and some lower expected systems benefits, a write-down has been recognized. The cost is recog-
nised as write-downs under depreciations in the income statement.
Assets under construction are not depreciated but tested once a year for impairment or when there is
any indication of a decrease in value.
Amortised software is assessed for impairment at the balance sheet date or when there are indications
that the future cash flow cannot justify the carrying amount.
If the recoverable amount is lower than the carrying amount, the difference is recognised in the income
statement.
The recoverable amount is the higher of fair value less sales costs and value in use.
DKKm 2022 2021
11 Intangible assets (continued)
- Earned premium assumed CAGR 0 - 10 years 3% 4%
- Earned premium assumed CAGR > 10 years (terminal period) 2% 2%
- Required return before tax 9% 10%
- Expected level of combined ratio 88% 87%
Sensitivity information
Impact on the calculated present value from the following
changes:
CAGR +1.0 percentage point (0 - 10 years) 0.3bn 25
CAGR -1.0 percentage point (0 - 10 years) -0.3bn -23
Required return +1.0 percentage point -1.4bn -88
Required return -1.0 percentage point 2.0bn 123
Combined ratio +1.0 percentage point -1.0bn -50
Combined ratio -1.0 percentage point 1.0bn 50
The above changes have no impact on equity.
Sweden
In 2022, Tryg acquired the Swedish branch Trygg-Hansa. See note 26. The insurance activities were incorporat-
ed into the Tryg Group’s business structure from 1 April 2022 and distributed under the Trygg-Hansa Brand.
In 2016, Tryg acquired Skandia’s child and adult accident insurance portfolio. The insurance activities
were incorporated into the Tryg Group’s business structure from 1 September 2016.
At 31 December 2022, management performed an impairment test of the carrying amount of goodwill
based on the allocation of the cost of goodwill to the cash-generating unit. Trygg-Hansa portfolio consists
from 1 April 2022 of Trygg-Hansa, Moderna, Securator and Skandia, considered a cash-generating unit.
The reason behind the the single cash-generating unit, is that they are all managed together as part of the
Swedish private business and reported as part of the operating segment “Private”
Comprises the sale of insurance products to private customers under the ‘Trygg-Hansa’ and ‘Moderna’
brand. Moreover, insurance is sold under the brands Atlantica, Bilsport & MC and Moderna Djurförsäkrin-
gar. Sales take place through its own sales force, call centres and online.
The cash flows appearing from the latest prognosis approved by management for the next 6 quarters
are used when calculating the value in use of “Sweden”. The cash flows in the latest prognosis period
have been extrapolated for financial years after the prognosis periods (terminal period) and adjusted for
expected growth rates determined on the basis of expectations for the general economic growth. The
required return is based on an assessment of the risk profile of the tested business activities compared
with the market’s expectations for the Group.
The impairment test shows a calculated value in use of approximately DKK 30.5bn (DKK 2.5bn) relative
to the value of the CGU of DKK 26.3bn (DKK 0.7bn) and does not indicate any impairment in 2022. Good-
will amount to DKK 15.1bn (0.5bn).
According to the sensitivity information below a change in the required return rate will have the highest
effect on the equity. An increase in the required return of approx. 0.9% will result in a write down of goodwill.
Annual report 2022 | Tryg A/S | 91
Financial statements - Contents
Notes
a) Lease assets (Right of use-assets (ROU)) equipment
only consists of leases of vehicles with a lease
term of three to four years. The monthly amounts
are fixed and there is no option for purchase or
extension. Short term leases are not recognised as
Right of use-assets.
b) Lease assets (Right of use-assets), Group occupied
property consists of leases of offices buildings.
Contract terms are from 1 to 14 years and with
yearly rent adjustments. Tryg has no lease contracts
with variable lease payments based on sale or
similar.
12 Property, plant and equipment
DKKm
Operating
equipment
Leases ROU
equipment
a)
Leases ROU
Group-occupied
property
b)
Total
2022
Cost
Cost at 1 January 251 103 983 1,337
Exchange rate adjustments -3 0 -19 -22
Additions for the year 28 0 95 123
Additions, demerger of Trygg-Hansa, Codan Norway 20 2 144 166
Disposals for the year -1 0 0 -1
Cost at 31 December 295 105 1,203 1,603
Accumulated depreciation and value adjustments
Accumulated depreciation and value adjustments at 1 January -121 -75 -379 -575
Exchange rate adjustments 2 0 10 12
Depreciation for the year -15 -14 -141 -170
Reversed depreciation and value adjustments 1 0 0 1
Accumulated depreciation and value adjustments at 31 December -133 -89 -510 -732
Carrying amount at 31 December 162 16 693 871
2021
Cost
Cost at 1 January 246 88 904 1,239
Exchange rate adjustments 2 0 11 13
Additions for the year 23 17 87 126
Disposals for the year -19 -1 -19 -40
Cost at 31 December 251 103 983 1,337
Accumulated depreciation and value adjustments
Accumulated depreciation and value adjustments at 1 January -126 -62 -274 -462
Exchange rate adjustments -1 0 -4 -5
Depreciation for the year -11 -14 -101 -125
Reversed depreciation and value adjustments 17 0 0 17
Accumulated depreciation and value adjustments at 31 December -121 -75 -379 -575
Carrying amount at 31 December 130 28 604 762
Annual report 2022 | Tryg A/S | 92
Financial statements - Contents
Notes
DKKm 2022 2021
13 Investment property
Fair value at 1 January 1,040 1,117
Exchange rate adjustments -26 25
Additions for the year 1 3
Disposals for the year -6 -166
Value adjustments for the year 7 66
Reversed on sale 0 -4
Fair value at 31 December 1,017 1,040
Total rental income amounts to DKK 57m (DKK 64m in 2021).
Total expenses amounts to DKK 12m (DKK 20m in 2021). External experts were involved in valuing the
majority of the investment properties.
Return percentages, weighted average 2022 2021
Business property 5.1 4.6
Office property 5.5 5.1
Residential property 4.0 4.2
Total 5.4 5.0
Sensitivity
Tryg’s property valuations are based on the market-based rental income and operating expenses of the
individual property relative to the required rate of return. The most important factors impacting the va-
luations are the applied rates of return, annual net rental income and occupancy rates. The average ra-
tes of return applied are stated above.
Impacts on the fair value of properties 2022 2021
Increase in applied rate of return of 0.25% -34 -39
Decrease in applied rate of return of 0.25% 36 42
Decrease in net rental income of 3% -30 -31
Decrease in occupancy rate of 3% -7 -6
DKKm 2022 2021
14 Equity investments in associates
Cost
Cost at 1 January 36,035 96
Additions for the year 56 35,939
Additions, demerger of Trygg-Hansa, Codan Norway 19 0
Disposals for the year* -35,713 0
Cost at 31 December 396 36,035
Revaluations at net asset value
Revaluations at 1 January 1,032 -81
Reversed on sale -1,188 0
Value adjustments for the year -19 1,112
Revaluations at 31 December -175 1,032
Carrying amount at 31 December 222 37,067
Tryg no longer has any associates material to the Group.
In relation to the full year figures for 2021, Tryg had the following associates that were material to the Group:
Scandi JV Co A/S Scandi JV Co A/S
Nature of relationship with the Group
Financial Holding company which sole
purpose is to own Codan A/S
Principal place of business / Country of incorporation Denmark
Ownership interest / Voting rights held 89.3% / 50%
Annual report 2022 | Tryg A/S | 93
Financial statements - Contents
Notes
DKKm
14 Equity investments in associates (continued)
The following is summarised financial information based on the interim report for Q3 2021 prepared in
accordance with the Danish Financial Business Act, including the Danish Financial Supervisory Authori-
ty's Executive Order on Financial Reports for Insurance Companies and Multi-Employer Occupational
Pension Funds.
The disclosed figures show the entire Scandi JV Co Group. The full-year figures for 2021 were not avai-
lable when this report was published. The company had no activities in 2020.
The holdings in Codan A/S are classified as held for sale according to IFRS 5. Consequently the holdings
are measured at the lower of its carrying amount and fair value less cost to distribute. Consequently, no
amortization on intangible assets is performed.
Total comprehensive income reported is attributable to discontinued operations.
Please refer to note 26 regarding Acquisitions of activities.
DKKm 30 Sep 2021
Assets
Other investment assets 570
Assets classified as held for sale 77,058
Other assets 140
Total assets 77,768
Equity and liabilities
Equity 41,665
Liabilities directly associated with assets classified as held for sale 36,099
Other liabilities 4
Total equity and liabilities 77,768
01 Jun 2021 - 30 Sep 2021
Income statement
Investment return -2
Income from discontinued operations 905
Other expenses -4
Profit before tax 899
Tax 12
Profit for the period 911
Other comprehensive income -7
Total comprehensive income 904
Tryg’s interest in net assets of investee at 30 Sep 2021 37,207
Value adjustments in Q4 2021 -155
Carrying amount of interest in investee at 31 Dec 2021 37,052
DKKm 2022 2021
15 Financial assets
Financial assets held for trading 20,643 19,231
Financial assets designated at fair value 49,472 29,054
Derivative financial instruments at fair value used for hedge ac-
counting with value adjustment in other comprehensive in-
come 78 32
Loans and receivables measured at amortised cost 6,244 4,098
Total financial assets 76,437 52,415
Financial assets at amortised cost only deviate to a minor
extent from fair value,
Financial liabilities
Derivative financial instruments at fair value with value adjust-
ments in the income statement 2,394 879
Derivative financial instruments at fair value with value adjust-
ments in other comprehensive income 3 0
Financial liabilities at amortised cost 16,668 15,892
Total financial liabilities 19,065 16,771
Please refer to note 1 for valuation of subordinate loan capital at fair value. Other financial liabilities
measured at amortised cost only deviate to a minor extent from fair value.
Annual report 2022 | Tryg A/S | 94
Financial statements - Contents
Notes
15 Financial assets (continued)
The Fair value hierarchy
"Quoted market prices and consolidated reference prices" (level 1) consists of financial instruments
that are quoted and traded in a principal and active market (markets generally accessible and with
substantial volume and trade frequency).
Valuation based on observable input (level 2) consists of financial instruments that are valued sub-
stantially on the basis of observable input other than quoted price or consolidated reference price
for the instrument itself. If a financial instrument is quoted in a market that is not active, Tryg bases
its measurement on the most recent transaction price.
Adjustment is made for subsequent changes to market conditions, for instance, by including transa-
ctions in similar financial instruments that are assumed to be motivated by normal business consi-
derations. For a number of financial assets and liabilities, no market exists.
In such cases, Tryg uses recent transactions in similar instruments and discounted cash flows or
other generally accepted estimation and valuation techniques based on market conditions at the
balance sheet date to calculate an estimated value. This category covers instruments such as deri-
vatives valued on the basis of observable yield curves and exchange rates and illiquid mortgage
bonds valued by reference to the value of similar liquid bonds. Equity investments includes private
equity with underlying real estate.
Valuation based on significant non-observable input (level 3) consists of certain financial instru-
ments based substantially on non-observable input. Such instruments primarily includes unlisted
shares and some unlisted bonds. The fair value of Investment property is also based on non-obser-
vable input. Please refer to note 13 and accounting policies section Investment property.
If, at the balance sheet date, a financial instrument’s classification differs from its classification at
the beginning of the year, the classification of the instrument changes. Changes are considered to
have taken place at the balance sheet date. Developments in the financial markets can result in re-
classifications between the categories. Some bonds have become illiquid and have therefore been
moved from ”Quoted prices or consolidated reference prices” to the ”Observable input” category,
while other bonds have become liquid and have been moved from ”Observable input” to the ”Quo-
ted prices or consolidated reference prices” category.
DKKm
15 Financial assets (continued)
Fair value hierarchy for financial instruments and investment property
measured at fair value in the statement of financial position
Quoted market prices
or consolidated
reference prices
a)
Observable
input
Non-
observable
input Total
2022
Investment property 0 0 1,017 1,017
Equity investments 0 4,554 92 4,647
Unit trust units 6,917 1,377 36 8,330
Bonds 55,372 428 0 55,800
Derivative financial instruments, assets 15 1,325 0 1,340
Derivative financial instruments, debt 0 -2,398 0 -2,398
62,304 5,287 1,145 68,737
a) Consolidated reference prices mean Nasdaq consolidated reference prices
2021
Investment property 0 0 1,040 1,040
Equity investments 308 3,142 38 3,487
Unit trust units 7,259 935 36 8,231
Bonds 35,326 285 0 35,611
Derivative financial instruments, assets 9 904 0 913
Derivative financial instruments, debt 0 -879 0 -879
42,903 4,387 1,114 48,403
Bonds measured on the basis of observable inputs consist of Norwegian and Swedish bonds issued by
banks and to some extent Danish semi-liquid bonds, where no quoted prices or consolidated reference
prices based on actual trades are available.
DKKm 2022 2021
Financial instruments transferred from "Quoted market prices or con-
solidated reference prices" to "Observable input" 0 138
Financial instruments transferred from "Non-observable input" to "Ob-
servable input" 0 1,142
Annual report 2022 | Tryg A/S | 95
Financial statements - Contents
Notes
DKKm 2022 2021
15 Financial assets (continued)
Financial instruments measured at fair value in the statement of finan-
cial position on the basis of non-observable input:
Carrying amount at 1 January 1,114 1,186
Exchange rate adjustments -25 24
Additions, demerger of Trygg-Hansa, Codan Norway 50 0
Gains/losses in the income statement 6 66
Purchases 9 14
Sales -8 -170
Transfers to/from the group 'non-observable input' 0 -5
Carrying amount at 31 December 1,145 1,114
Gains/losses in the income statement for assets held at the statement
of financial position date recognised in value adjustments -1 -1
DKKm 2022 2021
15 Financial assets (continued)
Reconciliation of Tryg's Investment portfolio
Investment assets according to balance sheet 71,626 86,885
Investment assets according to investment activities
Other, hereof financial instrument in liabilities
a)
-6,964 -2,634
External customers
b)
-1,972 -4,052
Tryg's investment portfolio
b)
62,689 80,200
Match portfolio -45,032 -29,674
RSA Scandinavia 0 -37,052
Free portfolio 17,656 13,475
a) Primarily debt relating to repos and derivatives.
b) The setup of Tryg invest is impacting Tryg’s balance sheet as external customers investments are
booked under “Total other financial investments” with opposing liabilities entries as “other debt”.
Annual report 2022 | Tryg A/S | 96
Financial statements - Contents
Notes
DKKm
15 Financial assets (continued)
Derivative financial instruments used in connection with hedging of foreign entities for
accounting purposes
Gains and losses on hedges charged to other comprehensive income:
2022 2021
Gains Losses Net Gains Losses Net
Gains and losses at 1 January 3,986 -3,767 219 3,753 -3,435 318
Value adjustments for the year 889 -393 496 233 -333 -99
Gains and losses at
31 December 4,876 -4,160 715 3,986 -3,767 219
Value adjustments
Value adjustments of foreign entities recognised in other comprehensive income in the amount of:
2022 2021
Value adjustments at 1 January -183 -225
Value adjustment for the year -2,217 42
Exchange rate adjustment for the year recognized in profit/loss 52 0
Value adjustments at 31 December -2,348 -183
Receivables
Total receivables in connection with direct insurance contracts 1,621 1,678
Receivables from insurance enterprises 498 407
Unsettled transactions 136 0
Other receivables 278 485
2,534 2,570
Specification of write-downs on receivables from insurance contracts:
Write-downs at 1 January 112 118
Exchange rate adjustments -3 3
Write-downs and reversed write-downs for the year 15 -9
Additions, demerger of Trygg-Hansa, Codan Norway 29 0
Write-downs at 31 December 153 112
Receivables are written down in full when submitted for debt collection. The write-down is reversed if
payment is subsequently received from debt collection and amounts to DKK 34m (DKK 32m in 2021).
Other receivables do not contain overdue receivables.
DKKm
15 Financial assets (continued)
Derivative financial instruments
Derivatives with value adjustments in the income statement at fair value:
2022 2021
DKKm Nominal
Fair value in
statement of
financial
position Nominal
Fair value in
statement of
financial
position
Interest derivatives 58,339 -1,548 36,333 224
Share derivatives 221 44 150 19
Exchange rate derivatives* 19,359 270 9,094 -209
Inflation derivatives 4,588 591 4,140 -181
Total derivative financial instru-
ments 82,507 -643 49,717 -147
Due after less than 1 year 27,304 103 32,350 -6,292
Due within 1 to 5 years 22,404 -894 6,682 111
Due after more than 5 years 32,799 148 10,686 6,034
Derivatives are used continuously as part of the cash and risk management carried out by Tryg and its
portfolio managers.
*hereof used for hedging of foreign entities nom. SEK 6.1bn (2021: SEK 0.6bn) and NOK 3.6bn (2021:
NOK 2.5bn)
Annual report 2022 | Tryg A/S | 97
Financial statements - Contents
Notes
16 Reinsurer's share
Impairment test
As at 31 December 2022, management performed a test of the carrying amount of total reinsurers’
share of provisions for insurance contracts and receivables. The impairment test resulted in impairment
write-down totalling DKK 4m (DKK 3m in 2021).
The use of reinsurance creates a natural counterparty risk. The Risk will be handled by applying a wide
range of reinsurers with at least an ’A’ rating.
17 Current tax
Tryg recognizes the role that taxes play in society and we acknowledge that business must have a re-
sponsible approach to handling tax matters in order to ensure sustainable societies. Our tax policy is
inspired by the GRI Sustainability Reporting standard #207 regarding tax.
Tax matters are handled on a daily basis by the tax team in Tryg but is overseen by the Group CFO.
The Tryg Tax Policy is ultimately the responsibility of Tryg’s Executive Board and is approved and re-
viewed annually by the Executive Board and the Supervisory Board of Tryg.
Tryg has established a Corporate Responsibility Board with management representatives from key
departments within Tryg with Tryg’s Group CFO as chair. The adherence to the tax policy is secured
as part of the ongoing work and the existing practices of the Tryg tax team.
The Tryg Tax Policy applies to all entities within the Tryg Group and, to the extent possible, also to in-
vestments made by Tryg. For further information on the Tryg Tax Policy reference is made to our
webpage www.Tryg.com.
DKKm
2022 2021
17 Current tax (continued)
Current tax
Net current tax at 1 January 47 -306
Exchange rate adjustments 12 -15
Current tax for the year -385 -874
Current tax on equity entries -109 20
Adjustment of current tax in respect of previous years 8 22
Additions, demerger of Trygg-Hansa, Codan Norway 159 0
Tax paid for the year 1,039 1,200
Net current tax at 31 December 770 47
Current tax is recognised in the statement of financial position as follows:
Under assets, current tax 854 265
Under liabilities, current tax -83 -218
Net current tax 770 47
Due to IFRIC 23, uncertain tax positions should be valuated and recognized in the tax balance.
Tryg Forsikring A/S has asked the Danish tax authorities for a repayment of tax for unused tax loss in the
closed Finnish branch in 2012. 80% of the expected tax repayment has been included in the balance of
current tax.
The figures below show result before tax compared to actual tax payments.
7
66
OtherDenmark Norway Sweden
2021
(DKKm)
2,363
910
1,287
1,287
224
1,130
262
59
172
43
Denmark Norway Sweden Other
2022
(DKKm)
1,187
617
1,252
925
195
1,422
943
216
476
-4
11
75
Result before tax Corporate tax paid Other taxes Result before tax Corporate tax paid Other taxes
Annual report 2022 | Tryg A/S | 98
Financial statements - Contents
Notes
The figures below show result before tax compared to actual tax payments for other countries.
DKKm
18 Equity
Number of shares (1,000)
Shares outstanding Own shares
Number of shares of DKK 5 2022 2021 2022 2021
Number of shares at 1 January 653,447 301,750 1,207 398
Bought during the year -20,669 -1,399 20,669 1,399
Rights issue 0 352,506 0 0
Exercise of incentive programme 932 590 -932 -590
Number of shares at 31 December 633,710 653,447 20,944 1,207
Number of shares as a percentage of
issued shares at 31 December 96.80 99.82 3.20 0.18
Nominal value at 31 December (DKKm) 3,169 3,267 105 6
Pursuant to the authorisation granted by the shareholders, Tryg may acquire up to a total face value DKK
327m of the share capital in the period up until 31 December 2023.
Own shares are acquired for writing down the share capital and for use in the Group’s incentive programme.
Due to local tax regulations, there may be variations in the timing of tax payment between the coun-
tries. Corporate tax payment for the year is the actual payments during the year made to the respective
countries. This can be payment for current year as well as payments for previous years.
Therefore, there may be a difference in the periodization of the result before tax for the year and the
actual tax paid. Beside corporate tax, Tryg Group also pays other taxes consisting of employer/social taxes,
insurance premium taxes and consumption taxes, such as VAT. These are specified in the figures below.
DKKm
17 Current tax (continued)
DKKm 2022 2021
Employer
Tax
Insur-
ance
duties VAT Total
Employer
Tax
Insur-
ance
duties VAT Total
Denmark 411 716 125 1,252 380 734 173 1,287
Norway 257 1,126 39 1,422 141 958 32 1,130
Sweden 177 211 89 476 69 79 24 172
Other
countries 5 28 42 75 5 23 38 66
Total 850 2,081 295 3,225 595 1,794 267 2,656
2022 2021
18 Equity (continued)
Solvency II - Own funds
Equity according to annual report 42,504 49,008
Proposed dividend -1,047 -700
Share buyback -1,786 0
Intangible assets -32,717 -7,025
Not eligible shares in associate 0 -37,052
Eligible Own funds from shares in associate 0 8,283
Profit margin, solvency purpose 3,000 1,408
Taxes 1,896 185
Subordinated loan capital 4,162 4,453
Solvency II - Own funds 16,012 18,559
18
11
58
6
0
0
0
0
0
0
0
9
6
-10
-11
-6
-1
1
Finland Germany Netherlands Austria Schwitzerland Belgium
Other Countries: 2022
Other Countries: 2021
38
7
59
19
0
0
0
0
0 0 0
1
5
-5
-8
0
-1
1
Result before tax Corporate tax paid Other taxes
Finland Germany Netherlands Austria Schwitzerland Belgium
Annual report 2022 | Tryg A/S | 99
Financial statements - Contents
Notes
DKKm
19 Claims provisions (continued)
2021 Gross Ceded
Net of
reinsurance
Claims provisions at 1 January 24,957 -1,087 23,871
Exchange rate adjustments 320 -22 299
25,278 -1,108 24,170
Paid in the financial year in respect of the current year -8,935 91 -8,844
Paid in the financial year in respect of prior years -6,592 386 -6,205
-15,527 478 -15,049
Change in claims in the financial year
in respect of the current year 17,184 -535 16,649
Change in claims in the financial year
in respect of prior years -883 -78 -961
16,301 -613 15,688
Discounting and exchange rate adjustment -465 12 -453
Claims provisions at 31 December 25,587 -1,232 24,355
DKKm 2022 2021
19 Premium provisions
Premium provision at 1 January 6,183 6,036
Additions, demerger of Trygg-Hansa, Codan
Norway 1,980 0
Exchange rate adjustments -157 48
Paid in the financial year 33,805 25,705
Change in premiums in the financial year -34,118 -25,614
Exchange rate adjustments 6 8
Premium provisions at 31 December 7,700 6,183
19 Claims provisions
2022 Gross Ceded
Net of
reinsurance
Claims provisions at 1 January 25,587 -1,232 24,355
Additions, demerger of Trygg-Hansa, Codan
Norway 16,539 -86 16,453
Exchange rate adjustments -626 36 -589
41,500 -1,281 40,219
Paid in the financial year in respect of the current year -13,313 299 -13,014
Paid in the financial year in respect of prior years -8,435 297 -8,137
-21,748 597 -21,151
Change in claims in the financial year
in respect of the current year 23,454 -925 22,528
Change in claims in the financial year
in respect of prior years -1,381 11 -1,370
22,073 -915 21,158
Discounting and exchange rate adjustments -2,598 12 -2,586
Claims provisions at 31 December 39,227 -1,587 37,639
Annual report 2022 | Tryg A/S | 100
Financial statements - Contents
Notes
DKKm 2022 2021
20 Pensions and similar obligations
Jubilees 37 41
Compensation liability 24 38
Recognised liability 61 79
Defined-benefit pension plans:
Present value of pension obligations funded through operations 24 29
Specification of change in recognised pension obligations:
Recognised pension obligation at 1 January 29 34
Exchange rate adjustments -1 2
Capital cost of previously earned pensions 1 0
Actuarial gains/losses 2 -1
Paid during the period -7 -7
Recognised pension obligation at 31 December 24 29
Total pensions and similar obligations at 31 December 24 29
Total recognised obligation at 31 December 85 108
Specification of pension cost for the year:
Present value of pensions earned during the year 1 0
Total year's cost of defined-benefit plans 1 0
DKKm 2022 2021
20 Pensions and similar obligations (continued)
The premium for the following financial years is estimated at 1 0
Number of pensioners 110 116
Assumptions used % %
Discount rate 2.7 1.1
Salary adjustments 3.8 2.5
Pension adjustments 1.7 0
G adjustments 3.5 2.3
Turnover 7.0 7.0
Employer contributions 19.1 19.1
Mortality table K2013 K2013
Description of the Swedish plan
Trygg-Hansa, a branch of Tryg Forsikring A/S, complies with the Swedish industry pension agreement,
the FTP plan, which is insured with Försäkringsbranschens Pensionskassa - FPK.
Under the terms of the agreement, the Group’s Swedish branch has undertaken, along with the other
businesses in the collaboration, to pay the pensions of the individual employees in accordance with the
applicable rules.
The FTP plan is primarily a defined-benefit plan in terms of the future pension benefits. FPK is unable to
provide sufficient information for the Group to use defined-benefit accounting. For this reason, the
Group has accounted for the plan as if it were a defined-contribution plan in accordance with IAS 19.30.
This year premium paid to FPK amounted to DKK 21m (DKK 5m in 2021), which is about 4.2 % of the
annual premium in FPK (2021). FPK writes in its annual report for 2021 that it had a solvency ratio of
139 at 31 December 2021 (Solvency ratio of 141 at 31 December 2020).
The Solvency Ratio is defined as the own funds relative to the solvency capital requirement.
Annual report 2022 | Tryg A/S | 101
Financial statements - Contents
Notes
DKKm 2022 2021
21 Deferred tax
Tax asset
Operating equipment 21 10
Bonds 17 73
Capitalised tax loss 137 0
175 83
Tax liability
Intangible rights 2,368 319
Land and buildings 80 -43
Debt and provisions 97 130
Contingency funds 1,173 483
3,718 889
Deferred tax 3,542 806
Development in deferred tax
Deferred tax at 1 January 806 851
Exchange rate adjustments -32 24
Change in deferred tax relating to change in tax rate 30 0
Change in deferred tax previous years 19 -86
Additions, demerger of Trygg-Hansa, Codan Norway 2,367 0
Change in capitalised tax loss 24 0
Change in deferred tax recognised in income statement 347 17
Change in deferred tax taken to equity -17 0
Deferred tax at 31 December 3,542 806
DKKm 2022 2022 2021 2021
Loss Tax value Loss Tax value
Tax value of non-capitalised tax loss
Denmark - - 72 16
Sweden - - - -
Norway - - - -
Finland - - - -
Germany - - - -
England 1 0 - -
Schwitzerland 19 3 8 1
The Netherlands 26 5 17 3
Austria 6 2 4 1
Belgium 6 2 1 0
Total 58 12 102 22
Loss determined according to Finnish, German, Belgian and Austrian rules can be carried forward inde-
finitely.
In Netherlands tax losses can be carried forward 6 years
In Switzerland tax losses can be carried forward 7 years.
The losses are not recognised as tax assets until it has been substantiated that the company can gene-
rate sufficient future taxable income to offset the tax loss.
The total current and deferred tax relating to items recognised in equity is recognised in the statement
of financial position in the amount of DKK -109m (DKK 27m at 31 December 2021).
Annual report 2022 | Tryg A/S | 102
Financial statements - Contents
Notes
DKKm 2022 2021
22 Other provisions
Other provisions at 1 January 40 57
Exchange rate adjustments -1 1
Change in provisions 55 -18
Other provisions 31 December 94 40
Other provisions relate to provisions for the Group’s own insurance claims, restructuring costs and in
2022 DKK 50m related to bankruptcy of Gefion. Additions to the provision for restructuring costs and
own insurance claims during the year amounts to DKK 81m (DKK 18m at December 2021) and use of
existing restructuring provisions amounts to DKK 28m (DKK 36m at December 2021)
The balance as at 31 December 2022 excluding own insurances amounts to DKK 88m (DKK 35m at 31
December 2021).
23 Other debt and debt to group undertakings
Other debt amounts to DKK 5,820m (DKK 7,084m at 31 December 2021) and mainly consists of debt
related to external customers’ investments in Tryg Invest, leasing and accrued costs. Debt related to
external customers invesments in Tryg Invest investments funds amounts to DKK 1,972m. (DKK
4,052m at 31 December 2021).
DKKm 2022 2021
23 Other debt
Maturity of undiscounted lease liabilities
Due 1 year or less 181 138
Due 2 - 5 years 399 331
Due more than 5 years 359 402
Total Lease liabilities 31 December 939 871
Lease liabilities included in the statement of financial position
Hereof future cashflow options 44 11
Amounts recognised in statement of cash flow
Total cash out-flow for leases 194 137
Amounts recognised in income statement
Interest on lease liabilities -38 -32
There are no short team-leases recognised in the financial statement. Debt related to Leasing are inclu-
ded in Other debt. Please refer to note 12 for specification of ROU assets.
Annual report 2022 | Tryg A/S | 103
Financial statements - Contents
Notes
a)
Calculated as operating profit/loss for the year divided by average num
ber of shares in the period.
25 Contractual obligations, collateral and contingent liabilities
Contractual obligations Obligations due by period
2022 <1 year 1-3 years 3-5 years > 5 years Total
Other contractual obligations
a)
748 755 424 11 1,938
748 755 424 11 1,938
2021 <1 year 1-3 years 3-5 years > 5 years Total
Other contractual obligations
a)
695 587 181 14 1,478
695 587 181 14 1,478
a) Other contractual obligations mainly consists of investment commitments, IT and outsourcing agre-
ements. Please refer to note 12 for lease agreements recognised as ROU.
DKKm 2022 2021
24 Earnings per share
Profit/loss from continuing business 2,247 3,161
Profit/loss on discontinued and divested business 0 -3
Profit/loss for the year 2,247 3,158
Depreciation on intangible assets related to Brands and Custo-
mer relations after tax 622 106
Operating Profit/loss for the year 2,870 3,263
Average number of shares (1,000) 646,977 572,688
Diluted number of shares (1,000) 646,977 572,688
Earnings per share, continuing business 3.47 5.52
Diluted earnings per share, continuing business 3.47 5.52
Earnings per share 3.47 5.51
Diluted earnings per share 3.47 5.51
Operating earings per share
a)
4.43 5.70
DKKm
25 Contractual obligations, collateral and contingent liabilities (continued)
2022
Tryg has signed the following contracts above DKK 50m:
Tryg is committed to invest in some investment funds. The commitment amounts to DKK 1.196m. DKK
363m are expected called during 2023 and additionally DKK 833m within 5 years.
Tryg has signed IT infrastructure agreements with commitments amounting to DKK 416m within 5
years.
2021
Tryg is comitted to invest in some investment funds. The commitment amounts to DKK 910m.
DKK 450m are expected called during 2022 and additionally DKK 450m within 5 years. Tryg has signed
IT infrastructure agreements with commitments amounting to DKK 361m within 5 years.
The Danish companies in the Tryg Group are jointly taxed with TryghedsGruppen smba. The companies
and the other jointly taxed companies are liable for any obligations to withhold taxes at source on inte-
rest, royalties, dividends and income taxes etc. in respect of the jointly taxed companies.
2022 2021
Tryg Livsforsikring A/S, Forsikrings-Aktieselskabet Alka Liv II and Holmia
Livförsäkring AB have registered the following assets as having been held as secu-
rity for the insurance provisions:
Equity investments 313 175
Bonds 748 1,029
Interest and rent receivable 2 5
Total 1,063 1,209
Annual report 2022 | Tryg A/S | 104
Financial statements - Contents
Notes
DKKm
25 Contractual obligations, collateral and contingent liabilities (continued)
Offsetting and collateral in relation to financial assets and obligations
Collateral which is not offset in
the statement of financial position
Gross
amount
before
offsetting Offsetting
According to
the statement
of financial
position
Further
offsetting,
master netting
agreements Collateral Net amount
2022
Assets
Reverse repos 194 0 194 0 -194 0
Derivative financial instruments
a)
2,114 -350 1,763 -1,255 -456 52
2,308 -350 1,958 -1,255 -651 52
Liabilities
Repo debt 4,287 0 4,287 0 -4,287 0
Derivative financial instruments
a)
2,748 -350 2,398 -1,255 -1,052 91
7,035 -350 6,684 -1,255 -5,339 91
a) Of which inflation derivatives, recognised in claims provisions:
Assets 423 0 423
Liabilities 0 0 0
2021
Assets
Reverse repos 460 0 460 0 460 0
Derivative financial instruments
a)
1,072 -8 1,064 -800 -239 24
1,532 -8 1,524 -800 221 24
Liabilities
Repo debt 2,417 0 2,417 0 -2,417 0
Derivative financial instruments
a)
1,220 -8 1,211 -800 -336 75
3,637 -8 3,628 -800 -2,753 75
a) Of which inflation derivatives, recognised in claims provisions:
Assets 151 0 151
Liabilities 332 0 332
Financial assets and liabilities are offset and the net amount reported
when the Group and the counterparty have a legally enforceable right
of set-off and have agreed to settle on a net basis or to realise the asset
and settle the liability.
Positive and negative fair values of derivative financial instruments
with the same counterparty are offset if it has been agreed to settle
contractual payments on a net basis when cash payments are made
or collateral is provided on a daily basis in case of fair value changes.
The Group’s netting of positive and negative fair values of derivative
financial instruments may be cleared through LCH (CCP clearing).
Furthermore, netting is carried out in accordance with enforceable
master netting agreements. Master netting agreements and similar
agreements entitle parties to offset in the event of default, which
further reduces the exposure to a defaulting counterparty but does not
meet the conditions for accounting offsetting in the balance sheet.
Contingent liabilities
Price adjustments 2016-2020
At the end of October (2020) Tryg received the Forbrugerombuds-
mand’s (FO or Consumer Ombudsman) assessment of the case. In
FO’s opinion Tryg was not complying with regulations on price adjust-
ments for residential customers when increasing prices above index-
ation between March 2016 and February 2020. The case is related to
a part of the private portfolio in Denmark. Based on this assessment
the FO is concluding that certain customers may have a recovery claim
against Tryg. Tryg does not agree with the FO’s assessment as the
company believes it has followed the guidelines stated by the Danish
FSA in terms of price increases. The FO has now decided that the case
should be decided in court. Management has decided not to disclose
an estimated amount but this is deemed immaterial.
Other
Companies in the Tryg Group are party to a number of other disputes
in Denmark, Norway and Sweden, which management believes will
not affect the Group’s financial position significantly beyond the
obligations recognized in the statement of financial position at 31
December 2022.
Annual report 2022 | Tryg A/S | 105
Financial statements - Contents
Notes
26 Equity investments in associates
RSA Scandinavia (Trygg-Hansa and Codan Norway)
1 June 2021 Investment in associate
On 1 June 2021, all regulatory and legal approvals regarding the acquisition of RSA Insurance Group
plc were obtained. Tryg acquired RSA’s Swedish and Norwegian businesses (Trygg-Hansa and Codan
Norway), and a 50%-stake in RSA’s Danish business (Codan Denmark). Hence the insurance portfolio
in Sweden and Norway was by way of agreement managed by Tryg in coorporation with Codan. The
transaction was conducted together with Intact Financial Corporation.
Tryg did not have control of any of the businesses until the separation became effective on 1 April
2022, but the company had significant influence over the entire Scandinavian business. Accordingly,
the investment was classified as an investment in associates and accounted for by applying the equity
method, whereby Trygs shares of the current profit/loss was recognised in the investment activities as
profit/loss from associates from 1 June 2021 until 1 April 2022.
Tryg’s purchase price amounted to £4.2 billion and did not include any contingent elements. The
Group has incurred transaction and advisory costs of DKK 780m in connection with the investment.
1 April 2022 Demerger
Upon separation of the businesses, which came effective through a demerger on 1 April 2022, Tryg
obtained control of the Swedish and Norwegian businesses and started full consolidation in the
Group’s financial statements on a line-byline basis from 1 April 2022.
A preliminary estimate of the fair value of the assets and liabilities of the acquired activities in Sweden
and Norway is outlined below.
Tryg is currently working on the system integration of the acquired activities. The system integration
has not yet been concluded. IFRS 3 furthermore stipulates that the pre-acquisition balance sheet in
some instances may be adjusted for a period of up to 12 months after the date of acquisition. At the
date of presentation of the Annual Report, no areas have been identified that may significantly affect
the balance sheet.
26 Equity investments in associates (continued)
Net assets acquired (DKKbn)
Assets 31 December 2022
Intangible assets 11,3
Tangible assets 0,2
Financial assets 23,9
Total reinsurance of provisions 0,1
Receivables 3,7
Other assets and accrued income 0,9
Liabilities
Total provisions for insurance contracts 19,8
Debt and accruals and deferred income 7,4
Total identifiable net assets acquired 12,9
Purchase price (Shares in Tryg Forsikring A/S) 29,9
Goodwill 17,0
The measurement at fair value of identifiable acquired assets and liabilities at the acquisition date, in-
cluding intangible assets (customer relations and brands) and provisions for insurance contracts, re-
sults in a goodwill of DKK 17.0bn. This goodwill relates to expected synergies between the acquired
activities and the Group’s existing activities. The goodwill acquired is not tax deductible.
The fair value measurements have been based on the actual purchase price paid to the shareholders
of RSA on 1 June 2021. The purchase price have been adjusted for the income from RSA Scandinavia
from 1 June 2021 until demerger 1 April 2022 and the sale of Codan DK to Alm. Brand. The fair value
of the shares as at 1 April 2022 is considered to eqaul thier carrying amount based on the asessment
that the business case and the required rate of return are largely unchanged. The fair value measure-
ment is considered a level 2 measurement. The fair value of assets and liabilities acquired is for the Fi-
nancial assets and liabilities primarily level 1 and some level 3. All other assets and liabilities are based
on current value or amortisized costs as a proxy for fair value and will as such be level 3.
As the acquisition date was April 1, 2022, the acquired businesses have not impacted the Group’s pre-
mium income or net income for the first quarter of 2022 as the profit/loss was recognised in the in-
vestment result. Due to the ongoing system integration of the acquired activities including migration
of the policy administration systems it is not possible to publish the full year premium income and net
income for the acquired business separately. If the acquisition date was January 1, 2022 the premium
income of the Group would have been DKK 36.5bn and net income of the Group would have been
DKK 2.2bn. The determination of these pro forma amounts for premium income and net income for
the period to the acquisition is based on the following significant assumptions:
• Premiums and claims have been calculated on the basis of the fair values determined in the acquisi-
tion balance sheets for premium and claims provisions, rather than the original carrying amounts.
• Other costs, including amortisation of intangible assets, have been calculated on the basis of the fair
values determined in the acquisition balance sheets, rather than the original carrying amounts.
On June 11 2021, it was announced that Codan DK was acquired by Alm. Brand for a total cash consi-
deration of DKK 12.6bn. Tryg receives 50% of the sales proceeds amounting to approximately DKK
6.3bn. The sale was completed on 2 May 2022. Following the demerger of Trygg-Hansa and Codan
Norway and the sale of Codan DK to Alm. Brand Tryg has recorded a net profit of 0.2bn.
Annual report 2022 | Tryg A/S | 106
Financial statements - Contents
Notes
DKKm 2022 2021
27 Related parties
The group has no related parties with a controlling influence
other than the parent company, TryghedsGruppen smba and
the subsidiaries of TryghedsGruppen smba (other related par-
ties). Related parties include the Supervisory Board, the
Executive Board (which is considered Key Management) and
their members’ family.
Premium income
- Parent company (TryghedsGruppen smba) 0.6 0.5
- Key management 0.6 0.5
- Other related parties 2.3 2.1
Claims payments
- Parent company (TryghedsGruppen smba) 0.1 0.0
- Key management 0.2 0.1
- Other related parties 0.3 0.3
Specification of remuneration
2022
Number
of
persons
Base
salary
incl, car
allowance
Share-
based
variable
salary
a)
Cash
variable
salary Pension Total
Supervisory Board 18 11 0 0 0 11
Executive Board 4 31 16 0 8 55
Risk-takers investment functions 11 15 1 2 2 20
Risk-takers staff functions 23 39 7 6 7 59
Risk-takers independent
control functions 4 8 0 0 1 10
Risk-takers other functions 31 68 15 11 12 107
91 172 40 19 29 261
a) Total expenses recognised in 2022 for matching shares and conditional shares allocated in 2022 and
previous year.
DKKm
27 Related parties (continued)
Of which retired
Number of
persons
Severance
pay
Supervisory Board 4 0
Executive Board 0 0
Risk-takers 2 0
6 0
2021
Number
of
persons
Base
salary
incl, car
allowance
Share-
based
variable
salary
b)
Cash
variable
salary Pension Total
Supervisory Board 13 10 0 0 0 10
Executive Board 4 30 12 0 7 50
Risk-takers investment functions 12 16 2 2 2 22
Risk-takers staff functions 19 38 7 7 6 59
Risk-takers independent
control functions 5 9 0 0 1 11
Risk-takers other functions 18 44 11 7 7 69
71 147 32 16 25 220
b) Total expenses in 2021 for matching shares and conditional shares allocated in 2021 and previous
year.
Of which retired
Number of
persons
Severance
pay
Supervisory Board 0 0
Executive Board 0 0
Risk-takers 0 0
0 0
Annual report 2022 | Tryg A/S | 107
Financial statements - Contents
Notes
27 Related parties (continued)
2022
In 2022 Tryg A/S paid TryghedsGruppen smba dividends of DKK 1,697m.
The transactions between TryghedsGruppen smba and Tryg A/S is conducted on an arm’s length basis.
Intra-group transactions with TryghedsGruppen smba from Tryg Forsikring A/S consists of administra-
tive services, IT and data deliveries.
The transactions amounts to DKK 4.2m. Investment management delivered from Tryg Invest A/S
amounts to DKK 0.5m.
All transactions are conducted on an arm´s length basis.
2021
In 2021 Tryg A/S paid TryghedsGruppen smba dividends of DKK 1,224m.
TryghedsGruppen smba has exercised pre-empitive rights and subscribed for new shares in Tryg A/S to-
talling DKK 14.0bn during the subscribtion period in Q1 2021.
The transactions between TryghedsGruppen smba and Tryg A/S is conducted on an arm’s length basis.
Intra-group transactions with TryghedsGruppen smba from Tryg Forsikring A/S consists of call center
and customer support, marketing services, IT and data deliveries. The transactions amounts to DKK
4.5m. Investment management delivered from Tryg Invest A/S amounts to DKK 0.5m. All transactions
are conducted on an arm´s length basis.
The companies in the Tryg Group have entered into reinsurance contracts on market terms.
Transactions with Group undertakings have been eliminated in the consolidated financial statements in
accordance with the accounting policies.
27 Related parties (continued)
Base salary are charges incurred during the financial year. Variable salary includes the charges for
matching shares and conditional shares, which are recognised over a deferral period up to 4 years.
The Executive Board and risk-takers are included in incentive programmes. Please refer to note 6 for
more informations.
The members of the Supervisory Board in Tryg A/S are paid with a fixed remuneration and are not cove-
red by the incentive schemes.
The members of the Executive Board are paid a fixed remuneration, car allowance, pension etc.
The variable salary is awarded in the form of share-based remuneration and cash.
Each member of the Executive Board is entitled to 12 months’ notice and severance pay equal to 12
months’ salary plus pension contribution except Group CEO who is entitled to severance pay equal to
18 months’ salary. If a change of control clause is actioned Group CEO and Group COO are entitled to
severance pay equal to 36 months´salary.
Risk-takers are defined as employees whose activities have a significant influence on the company’s
risk profile. The Supervisory Board decides which employees should be considered to be risk-takers.
Parent company
TryghedsGruppen smba
TryghedsGruppen smba controls 45% (2021: 45%) of the total shares in Tryg A/S. This amounts to Tryg-
hedsGruppen smba controlling 46.5% of the shares outstanding in Tryg A/S as at 31 December 2022.
28 Financial highlights
Please refer to page 60.
Annual report 2022 | Tryg A/S | 108
Financial statements - Contents
Notes
29 Accounting policies
The consolidated financial statements are prepared in
accordance with the International Financial Reporting
Standards (IFRS) as adopted by the EU on 31 Decem-
ber 2022 and the additional Danish disclosure require-
ments of the Danish Financial Business Act on annual
reports prepared by listed financial services compa-
nies. The annual report of the parent company is pre-
pared in accordance with the executive order on finan-
cial reports presented by insurance companies and
lateral pension funds issued by the Danish FSA. The
deviations from the recognition and measurement re-
quirements of IFRS are:
The Danish FSA’s executive order does not allow provi-
sions for deferred tax of contingency reserves alloca-
ted from untaxed funds. Deferred tax and the other
comprehensive income of the parent company have
been adjusted accordingly on the transition to IFRS.
Change in accounting policies
Tryg has not implemented any new significant accoun-
ting policies or IFRS standards in 2022.
The accounting policies have been applied consi-
stently with last year.
Classification error
A classification error has been found in the annual re-
port 2021. The classification error does not affect pro-
fit for the year or Equity. It affects the line item “Tax”
which should have been less negative with DKK 138m
and the line item “Value adjustment” which is part of
“Total investment return” should have been lower with
the same amount. The comparative figures for 2021
have been restated accordingly.
Accounting regulation
Implementation of changes to accounting standards
and interpretation in 2022
The International Accounting Standards Board (IASB)
has issued several changes to the international ac-
counting standards, and the International Financial Re-
porting Interpretations Committee (IFRIC) has also is-
sued a number of interpretations. No standards have
been implemented for the first time for the accounting
year that began on 1 January 2022 that will have a sig-
nificant impact on the group. See below regarding IFRS
9 ‘Financial instruments’.
There has not been implemented any new or amended
standards and interpretations that have affected the
group significantly.
Future orders, standards and interpretations that the
group has not implemented, and which have still not en-
tered into force but could affect the group significantly:
• IFRS 9 ‘Financial Instruments’
1
• IFRS 17 ‘Insurance Contracts’
2
1
Enters into force for the accounting year commencing
1 January 2018 - Insurance companies are allowed to
postpone the implementation to 1 January 2023 if certain
criteria are met.
2
Expected to enter into force for the accounting year com-
mencing 1 January 2023.
The implementation of IFRS 9 ‘financial instruments’ is
not expected to significantly change the group’s finan-
cial position.
Regarding IFRS 9, the assessment of no significant im-
pact on the statement of financial position or profit and
loss is based on the assumption that Tryg already carry
all financial instruments at fair value through profit and
loss. The implementation of IFRS 9 will not affect Tryg’s
recognition and measurement. Tryg has postponed the
implementation of IFRS 9 to 1 January 2023, when
IFRS 17 Insurance Contracts will be applicable. Tryg
can postpone IFRS 9 due to the fact that our activities
are predominantly connected with insurance and that
our liabilities connected with insurance is relatively
greater than 80 per cent of the total liabilities. The
impact of IFRS 17 (Insurance Contracts) is currently
being assessed in a structured and formal manner and
is expected to be concluded in due course ahead of the
implementation date. Whilst the Tryg Group anticipates
minor changes in certain of its key figures, such as pre-
miums growth and claims ratio as a result of changes
to the definitions of premiums and costs under IFRS
17 (Insurance Contracts), Tryg Group currently expects
that the implementation of IFRS (Insurance Contracts)
will not significantly change the Tryg Group’s financial
position, including in relation to its technical result or
profit/loss after tax. The standars and their impact as
at 1 January 2023 are described in note 30, which is a
supplement to the accounting policies.
The changes will be implemented going forward from
the effective date.
Significant accounting estimates and assess-
ments
The preparation of financial statements under IFRS
requires the use of certain critical accounting estima-
tes and requires management to exercise its judge-
ment in the process of applying the Group’s accoun-
ting policies. The areas involving more judgement or
complexity, or areas where assumptions and estimates
are significant to the consolidated financial statements
are:
• Liabilities under insurance contracts
• Fair value of financial assets and liabilities
• Valuation of property
• Business Combinations
• Measurement of Goodwill, Trademarks and
Customer relations
• Control of subsidiaries
Liabilities under insurance contracts
Estimates of provisions for insurance contracts repre-
sent the Group’s most critical accounting estimates, as
these provisions involve several uncertainty factors.
Claims provisions are management’s best estimate
based on actuarial and statistical projections of claims
and administration of claims, including a margin incor-
porating the uncertainty related to the range of actua-
rial scenarios and other short and long-term risks not
reflected in standard actuarial models. The projections
are based on Tryg’s knowledge of historical develop-
ments, payment patterns, reporting delays, duration of
the claims settlement process and other factors that
might influence future developments in the liabilities.
The Group makes claims provisions, in addition to pro-
visions for known claims, which cover estimated com-
pensation for losses that have been incurred but are
not yet reported to the Group (known as IBNR reser-
ves) and future developments in claims which are
known to the Group but are not finally settled. Claims
provisions also include direct and indirect claims sett-
lement costs or loss adjustment expenses that arise
from events that have occurred up to the statement of
financial position date, even if they have not yet been
reported to Tryg.
The calculation of the claims provisions is therefore in-
herently uncertain and, by necessity, relies upon the
making of certain assumptions about factors such as
court decisions, amendments to legislation, social in-
flation and other economic trends, including inflation.
The Group’s actual liability for losses may be subject
to material positive or negative deviations relative to
the initially estimated claims provisions.
Claims provisions are discounted. As a result, initial
changes in discount rates or changes in the duration of
the claims provisions could have positive or negative
effects on earnings. Discounting affects the motor
third-party liability, general third-party liability, wor-
kers’ compensation classes, including sickness and
personal accidents, in particular.
The Financial Supervisory Authority’s discount curve,
which is based on EIOPA’s yield curves, is used to
discount Danish, Norwegian and Swedish claims pro-
visions in relation to the relevant functional currencies.
Several assumptions and estimates underlying the
calculation of the claims provisions are mutually de-
pendent. This has the greatest impact on assumptions
regarding interest rates and inflation.
Annual report 2022 | Tryg A/S | 109
Financial statements - Contents
Notes
Fair value of financial assets and liabilities
Measurements of financial assets and liabilities for
which prices are quoted in an active market or which
are based on generally accepted models with obser-
vable market data are not subject to material estima-
tes. For securities that are not listed on a stock ex-
change, or for which no stock exchange price is
quoted that reflects the fair value of the instrument,
the fair value is determined using a current OTC price
of a similar financial instrument or using a model
calculation. The valuation models include the discoun-
ting of the instrument cash flow using an appropriate
market interest rate with due consideration for credit
and liquidity premiums. The fair value of deal contin-
gent derivatives (DCF) that Tryg has entered into in con-
nection with a recommended cash offer together with
Intact (a leading Canadian Insurer), to acquire RSA
Insurance Group plc is further explained in note 26.
Valuation of property
The fair value is calculated based on a market-deter-
mined rental income, as well as operating expenses in
proportion to the property’s required rate of return in
per cent. Investment property is recognised at fair va-
lue. The calculation of fair value is based on market
prices, considering the type of property, location and
maintenance standard, and based on a market-deter-
mined rental income and operating expenses in pro-
portion to the property’s required rate of return.
Cf. note 12, 13 and 15.
Business Combinations
In Business Combinations, significant assessments are
made when considering the fair value of the assets re-
quired and liabilities assumed and when identifying
intangible assets, such as Trademarks, Customer rela-
tions and goodwill as part of the transactions.
Measurement of Goodwill, Trademarks and Customer
relations
Goodwill, Trademarks and Customer relations was
acquired in connection with the acquisition of busines-
ses. Goodwill is allocated to the cash-generating units
under which management manages the investment.
The carrying amount is tested for impairment at least
annually. Impairment testing involves estimates of fu-
ture cash flows and is affected by several factors, in-
cluding discount rates and other circumstances de-
pendent on economic trends, such as customer
behaviour and competition. Cf. note 11.
Control of subsidiaries
Control of subsidiaries is assessed yearly. Hence,
whether a subsidiary should still be part of the consoli-
dation on line by line basis or as a single line item in
the balance sheet.
Description of accounting policies
Recognition and measurement
The annual report has been prepared under the histo-
rical cost convention, as modified by the revaluation of
owner-occupied property, where increases are recog-
nised in other comprehensive income, and revaluation
of investment property, financial assets held for tra-
ding and financial assets and financial liabilities (inclu-
ding derivative instruments) at fair value are recogni-
sed in the income statement.
Assets are recognised in the statement of financial po-
sition when it is probable that future economic bene-
fits will flow to the Group, and the value of such assets
can be measured reliably. Liabilities are recognised in
the statement of financial position when the Group
has a legal or constructive obligation as a result of a
prior event, and it is probable that future economic be-
nefits will flow out of the Group, and the value of such
liabilities can be measured reliably.
On initial recognition, assets and liabilities are mea-
sured at cost, with the exception of financial assets,
which are recognised at fair value. Measurement after
initial recognition is affected as described below for
each item. Anticipated risks and losses that arise be-
fore the time of presentation of the annual report and
that confirm or invalidate affairs and conditions
existing at the statement of financial position date are
considered at recognition and measurement.
Income is recognised in the income statement as ear-
ned, whereas costs are recognised by the amounts at-
tributable to this financial year. Value adjustments of
financial assets and liabilities are recognised in the in-
come statement unless otherwise described below.
All amounts in the notes are shown in millions of DKK
unless otherwise stated.
Consolidation
Consolidated financial statements
The consolidated financial statements comprise the fi-
nancial statements of Tryg A/S (the parent company)
and the enterprises (subsidiaries) controlled by the pa-
rent company. The parent company is regarded as
controlling an enterprise when it
i) exercises a controlling influence over the relevant
activities in the enterprise in question,
ii) is exposed to or has the right to a variable return
on its investment, and
iii) can exercise its controlling influence to affect the
variable return.
Enterprises in which the Group directly or indirectly
holds between 20% and 50% of the voting rights and
exercises significant influence but no controlling influ-
ence are classified as associates.
Basis of consolidation
The consolidated financial statements are prepared ba-
sed on the financial statements of Tryg A/S and its subsi-
diaries. The consolidated financial statements are prepa-
red by combining items of a uniform nature. The financial
statements used for the consolidation are prepared in
accordance with the Group’s accounting policies.
On consolidation, intra-group income and costs, in-
tra-group accounts and dividends, and gains and los-
ses arising on transactions between the consolidated
enterprises are eliminated.
Items of subsidiaries are fully recognised in the conso-
lidated financial statements.
Business combinations
Newly acquired or newly established enterprises are re-
cognised in the consolidated financial statements from
the date of acquisition and the date of formation, respe-
ctively. The date of acquisition is the date on which con-
trol of the acquired enterprise actually passes to Tryg.
Divested or discontinued enterprises are recognised in
the consolidated statement of comprehensive income
up to the date of disposal or the settlement date. The
date of disposal is the date on which control of the dive-
sted enterprise actually passes to a third party.
The purchase method is applied for new acquisitions if
the Group gains control of the acquired enterprise.
Subsequently, identifiable assets, liabilities and contin-
gent liabilities in the acquired enterprises are mea-
sured at fair value at the date of acquisition. Non-cur-
rent assets which are acquired with the intention of
selling them are, however, measured at fair value less
expected selling costs. Restructuring costs are recog-
nised in the pre-acquisition balance sheet only if they
constitute an obligation for the acquired enterprise.
The tax effect of revaluations is taken into account.
The acquisition price of an enterprise consists of the
fair value of the price paid for the acquired enterprise.
If the final determination of the price is conditional
upon one or more future events, such events are re-
cognised at their fair values at the date of acquisition.
Costs relating to the acquisition are recognised in the
income statement as incurred.
Any positive balances (goodwill) between the acquisi-
tion price of the acquired enterprise, the value of mino-
rity interests in the acquired enterprise and the fair va-
lue of previously acquired equity investments, on the
one hand, and the fair value of the acquired assets, lia-
bilities and contingent liabilities, on the other hand, is
recognised as an asset under intangible assets, and are
tested for impairment at least once a year. If the carry-
ing amount of the asset exceeds its recoverable
amount, it is impaired to the lower recoverable amount.
If at the date of acquisition, there is uncertainty as to
the identification or measurement of acquired assets,
liabilities or contingent liabilities or the determination
of the acquisition price, initial recognition is based on a
preliminary determination of values. The preliminarily
determined values may be adjusted, or additional as-
Annual report 2022 | Tryg A/S | 110
Financial statements - Contents
Notes
sets or liabilities may be recognised up to 12 months
after the acquisition, provided that new information
has come to light regarding matters existing at the date
of acquisition which would have affected the determi-
nation of the values at the date of acquisition, had
such information been known.
Generally, subsequent changes in estimates of conditi-
onal acquisition prices are recognised directly in the
income statement.
Currency translation
A functional currency is determined for each of the re-
porting entities in the Group. The functional currency
is the currency used in the primary economic environ-
ment in which the reporting entity operates. Transacti-
ons in currencies other than the functional currency
are transactions in foreign currencies.
On initial recognition, transactions in foreign curren-
cies are translated into the functional currency using
the exchange rate applicable at the transaction date.
Assets and liabilities denominated in foreign curren-
cies are translated using the exchange rates applicable
at the statement of financial position date. Translation
differences are recognised in the income statement
under price adjustments.
On consolidation, the assets and liabilities of the
Group’s foreign operations are translated using the ex-
change rates applicable at the statement of financial
position date. Income and expense items are transla-
ted using the average exchange rates for the period.
Exchange rate differences arising on translation are
classified as other comprehensive income and trans-
ferred to the Group’s translation reserve. Such transla-
tion differences are recognised as income or as expen-
ses in the period in which the activities are divested. All
other foreign currency translation gains and losses are
recognised in the income statement.
The presentation currency in the annual report is DKK.
Segment reporting
Segment information is based on the Group’s manage-
ment and internal financial reporting system and sup-
ports the management decisions on allocation of re-
sources and assessment of the Group’s results divided
into segments. Execute Board is considered Key ope-
rating dicision makers.
The operational business segments in the Tryg are Pri-
vate, Commercial and Corporate.. Private encompas-
ses the sale of insurances to private individuals in Den-
mark, Sweden and Norway. Commercial encompasses
the sale of insurances to small and medium sized busi-
nesses, in Denmark, Sweden and Norway. Corporate
sells insurances to industrial clients primarily in Den-
mark, Norway and Sweden. In addition, Corporate
handles all business involving brokers.
Geographical information is presented based on the
economic environment in which the Tryg Group opera-
tes. The geographical areas are Denmark, Norway and
Sweden.
Segment income and segment costs as well as seg-
ment assets and liabilities comprise those items that
can be directly attributed to each individual segment
and those items that can be allocated to the individual
segments on a reliable basis. Unallocated items prima-
rily comprise assets and liabilities concerning invest-
ment activity managed at Group level.
Key ratios
Earnings per share (EPS) are calculated according to
IAS 33. This and other key ratios are calculated in ac-
cordance with Recommendations and Ratios issued by
the The Danish Finance Society and the Executive Or-
der on Financial Reports for Insurance Companies and
Multi-Employer Occupational Pension Funds issued by
the Danish Financial Supervisory Authority.
Income statement
Premiums
Premium income represents gross premiums written
during the year, net of reinsurance premiums and ad-
justed for changes in premium provisions, correspon-
ding to an accrual of premiums to the risk period of the
policies, and in the reinsurers’ share of the premium
provisions.
Premiums are calculated as premium income in accor-
dance with the risk exposure over the cover period,
calculated separately for each individual insurance
contract. The calculation is generally based on the pro
rata method, although this is adjusted for an unevenly
divided risk between lines of business with strong sea-
sonal variations or for policies lasting many years.
The portion of premiums received on contracts that
relate to unexpired risks at the statement of financial
position date is reported under premium provisions.
The portion of premiums paid to reinsurers that relate
to unexpired risks at the statement of financial posi-
tion date is reported as the reinsurers’ share of pre-
mium provisions.
Technical interest
Technical interest is presented as a calculated return
on the year’s average insurance liability provisions, net
of reinsurance. The calculated interest return for grou-
ped classes of risks is calculated as the monthly
average provision plus an actual interest from the pre-
sent yield curve for each individual group of risks. The
interest is applied according to the expected run-off
pattern of the provisions.
Insurance technical interest is reduced by the portion
of the increase in net provisions that relates to unwin-
ding.
Claims
Claims are claims paid during the year adjusted for
changes in claims provisions less the reinsurers’ share.
In addition, the item includes run-off gains/losses in
respect of previous years. The portion of the increase
in provisions which can be ascribed to unwinding is
transferred to insurance technical interest.
Claims are shown inclusive of direct and indirect
claims handling costs, including costs of inspecting
and assessing claims, costs to prevent, combat and
mitigate damage and other direct and indirect costs
associated with the handling of claims incurred.
Claims prevention expenses are defined in accordance
with Executive Order no. 1592 of 9/11 2020 § 37 para.
1 of the Executive Order.
Changes in claims provisions due to changes in yield
curve and exchange rates are recognised as a price ad-
justment.
Tryg hedges the risk of changes in future pay and price
figures for provisions for workers’ compensation. Tryg
uses zero coupon inflation swaps acquired with a view
to hedging the inflation risk. Value adjustments of
these swaps are included in claims, thereby reducing
the effect of changes to inflation expectations under
claims.
Bonus and premium discounts
Bonuses and premium discounts represent anticipa-
ted and refunded premiums to policyholders, where
the amount refunded depends on the claims record,
and for which the criteria for payment have been defi-
ned prior to the financial year or when the insurance
was taken out.
Insurance operating costs
Insurance operating costs represent acquisition costs
and administration expenses less reinsurance com-
missions received. Expenses relating to acquiring and
renewing the insurance portfolio are recognised at the
time of writing the business. Underwriting commission
is recognised when a legal obligation occurs. Admini-
stration expenses are all other expenses attributable to
the administration of the insurance portfolio. Admini-
stration expenses are accrued to match the financial
year.
Share-based payment
The Tryg Group’s incentive programmes comprise an
employee bonus scheme and incentive programmes
for Executive Board, risk takers and other employees.
Annual report 2022 | Tryg A/S | 111
Financial statements - Contents
Notes
Employee bonus scheme
According to the remuneration policy, the Group’s
employees can be granted a bonus in the form of free
shares. When the bonus is granted, employees can
choose between receiving shares or cash. The expec-
ted value of the shares will be expensed over the per-
formance period. The scheme will be treated as a
financial instrument, consisting of the right to cash
settlement and the right to request delivery of shares.
The difference between the value of shares and the
cash payment is recognised in equity and is not reme-
asured. The remainder is treated as a liability and is re-
measured until the time of exercise, such that the total
recognition is based on the actual number of shares or
the actual cash amount.
Conditional shares
Conditional shares have been allocated to some
employees in accordance with the incentive pro-
gramme.
Equity-settled conditional shares are measured at the
fair value at the allotment date and recognised under
staff costs over the period from the allotment date un-
til the end of the deferral period (the transfer date),
where the holder receive free shares.
The shares are recognised at market value and are ac-
crued from up to four years.
Matching shares
Matching shares have been allocated to some emplo-
yees in accordance with the incentive programme.
As part of the matching shares-program, employees
have bought investment shares in Tryg A/S at market
price, using taxed funds, for up to the amount decided.
The purchase of investment shares entitles the holder
to a number of matching shares, corresponding to the
number of investment shares which the holder has
bought. The shares (matching shares) are provided free
of charge, four or three years after the time of purchase
of the investment shares. The holder may not sell the
shares until six months after the matching date.
The shares are recognised at market value and are ac-
crued over the four and tree year maturation period,
based on the market price at the time of acquisition.
Recognition is from the end of the month of acquisi-
tion under staff expenses with a balancing entry direc-
tly in equity. If the holder retires during the maturation
period but remains entitled to shares, the remaining
expense is recognised in the current accounting year.
Investment activities
Income from associates includes the Group’s share of
the associates’ net profit.
Income from investment properties before fair value
adjustment represents the profit from property opera-
tions less property management expenses.
Interest and dividends represent interest earned and
dividends received during the financial year. Realised
and unrealised investment gains and losses, including
gains and losses on derivative financial instruments,
value adjustment of investment property, foreign cur-
rency translation adjustments and the effect of move-
ments in the yield curve used for discounting, are re-
cognised as value adjustments.
Investment management charges represent expenses
relating to the management of investments including
salary and management fees on the investment area.
The external investors share of the result in Kapitalfor-
eningen Tryg Invest Funds and Tryg Invest Real Estate
are either deducted (in case of a profit) from or added
(in case of a loss) to the investment result.
Other income and costs
Other income and costs include income and expenses
which cannot be ascribed to the Group´s insurance
portfolio or investment assets, including the sale of
products for Velliv, Pension & Livsforsikring A/S, Dan-
ske Bank and depreciations of intangibles assets iden-
tified in Business combinations.
Discontinued and divested business
Discontinued and divested business is consolidated in
one item in the income statement. Discontinued and
divested business includes gross premiums, gross
claims, gross costs, profit/loss on ceded business, in-
surance technical interest net of reinsurance, invest-
ment return after insurance technical interest, other
income and costs and tax in respect of the disconti-
nued business. Any reversal of earlier impairment is
recognised under other income and costs.
The statement of financial position items concerning
discontinued activities are reported unchanged under
the respective entries whereas assets and liabilities
concerning divested activities are consolidated under
one item as assets held for sale and liabilities held for
sale.
Statement of financial position
Intangible assets
Goodwill
Goodwill is acquired in connection with acquisition of
business. Goodwill is calculated as the difference bet-
ween the cost of the undertaking and the fair value of
acquired identifiable assets, liabilities and contingent
liabilities at the time of acquisition. Goodwill is alloca-
ted to the cash-generating units under which manage-
ment manages the investment and is recognised under
intangible assets. Goodwill is not amortised but is te-
sted for impairment at least once per year.
Trademarks and customer relations
Trademarks and customer relations have been identi-
fied as intangible assets on acquisition. The intangible
assets are recognised at fair value at the time of acqui-
sition and amortised on a straight-line basis over the
expected economic lifetime of 5–15 years.
Software
Acquired computer software licences are capitalised
on the basis of the costs incidental to acquiring and
bringing to use the specific software. The costs are
amortised based on an estimated economic lifetime of
up to 8 years.
Costs for group developed software that are directly
connected with the production of identifiable and
unique software products, where there is sufficient
certainty that future earnings will exceed the costs in
more than one year, are reported as intangible assets.
Direct costs include personnel costs for software de-
velopment and directly attributable relevant fixed
costs. All other costs connected with the development
or maintenance of software are continuously charged
as expenses.
After completion of the development work, the asset is
amortised according to the straight-line method over
the assessed economic lifetime, though over a maxi-
mum of 8 years. The amortisation basis is reduced by
any impairment and write-downs.
Assets under construction
Group-developed intangibles are recorded under the
entry “Assets under construction” until they are put
into use, whereupon they are reclassified as software
and are amortized in accordance with the amortization
periods stated above.
Fixed assets
Operating equipment
Fixtures and operating equipment are measured at
cost less accumulated depreciation and any accumu-
lated impairment losses. Cost encompasses the pur-
chase price and costs directly attributable to the acqu-
isition of the relevant assets until the time when such
assets are ready to be brought into use.
Depreciation of operating equipment is calculated
using the straight-line method over its estimated eco-
nomic lifetime as follows:
• IT, 4 years
• Vehicles, 5 years
• Furniture, fittings and equipment, 5-10 years
Leasehold improvements are depreciated over the
expected economic lifetime, however maximally the
term of the lease.
Gains and losses on disposals and retired assets are
determined by comparing proceeds with carrying
amounts. Gains and losses are recognised in the in-
Annual report 2022 | Tryg A/S | 112
Financial statements - Contents
Notes
come statement. When revalued assets are sold, the
amounts included in the revaluation reserves are
transferred to retained earnings.
Leasing
Right-of-use assets
At inception of a contract, Tryg assesses whether a
contract is, or contains, a lease. It has the following
prerequisites:
• The underlying asset is identifiable
• The group has the right to obtain substantially all
the economic benefits from use of the asset th-
roughout the period of use
• The group has the right to direct the use of the asset
Tryg recognises a right-of-use asset and a correspon-
ding lease liability with respect to all lease agreements
in which it is the lessee, excluding short-term leases
(defined as leases with a lease term of 12 months or
less) and leases of low value assets.
At inception or on reassessment of a contract that
contains lease components, Tryg allocates the consi-
deration in the contract to each lease component ba-
sed on their relative stand-alone prices.
Right-of-use asset (ROU asset) and lease liability are re-
cognised at the lease commencement date. The ROU
asset is initially measured the cost, which comprises
the initial amount of the lease liability adjusted for
• lease payments made at or before the commence-
ment date
• any initial direct cost incurred
• estimate of costs to dismantle and remove the un-
derlying asset or to restore the underlying asset
• lease incentives received
ROU assets are tested for impairment.
Lease liability
The lease liability is initially measured at the present va-
lue of the lease payments that are not paid at the com-
mencement date, discounted by using the rate implicit
in the lease. If this rate cannot be readily determined,
Tryg uses its incremental borrowing rate. Subsequently,
the lease liability is measured at amortised cost using
the effective interest method and is presented as part of
other debt. It is remeasured when there is a change in
future lease payments. A corresponding adjustment is
made to the carrying amount of the ROU asset.
Land and buildings
Land and buildings are divided into owner-occupied
property and investment property. The Group sold the
owner-occupied property in Høje Taastrup and have
no longer any owner-occupied properties. All remai-
ning properties are classified as investment property.
Investment property
Properties held for renting yields that are not occupied
by the Group are classified as investment properties.
Investment property is recognised at fair value. Fair va-
lue is based on transaction prices for similar proper-
ties, adjusted for any differences in the nature, location
or maintenance condition of specific assets. If this in-
formation is not available, the Group uses alternative
valuation methods such as discounted cash flow pro-
jections and recent prices in the market.
The fair value is calculated on the basis of market-speci-
fic rental income per property and typical operating
expenses for the coming year. The resulting operating
income is divided by the required return on the property
in per cent, which is adjusted to reflect market interest
rates and property characteristics, corresponding to the
present value of a perpetual annuity. The value is subse-
quently adjusted with the capitalised value of the return
on prepayments and deposits and adjustments for spe-
cific property issues such as vacant premises or special
tenant terms and conditions. Cf. note 15.
Changes in fair values are recorded in the income sta-
tement.
Impairment test for intangible assets, property and
operating equipment
Operating equipment and intangible assets are asses-
sed at least once per year to ensure that the deprecia-
tion method and the depreciation period that is used
are connected to the expected economic lifetime. This
also applies to the salvage value. Write-down is perfor-
med if impairment has been demonstrated.
Goodwill is tested annually for impairment, or more of-
ten if there are indications of impairment, and impair-
ment testing is performed for each cash-generating
unit to which the asset belongs. The present value is
normally established using budgeted cash flows based
on business plans. The business plans are based on
past experience and expected market developments.
Equity investments in Group undertakings
The parent company’s equity investments in subsidia-
ries are recognised and measured using the equity
method. The parent company’s share of the enterpri-
ses’ profits or losses after elimination of unrealised in-
tra-group profits and losses is recognised in the in-
come statement. In the statement of financial position,
equity investments are measured at the pro rata share
of the enterprises’ equity.
Subsidiaries with a negative net asset value are recog-
nised at zero value. Any receivables from these enter-
prises are written down by the parent company’s share
of such negative net asset value where the receivables
are deemed irrecoverable. If the negative net asset va-
lue exceeds the amount receivable, the remaining
amount is recognised under provisions if the parent
company has a legal or constructive obligation to
cover the liabilities of the relevant enterprise.
Net revaluation of equity investments in subsidiaries is
taken to reserve for net revaluation under equity if the
carrying amount exceeds cost.
The results of foreign subsidiaries are based on trans-
lation of the items in the income statement using
average exchange rates for the period unless they devi-
ate significantly from the transaction day exchange ra-
tes. Income and costs in domestic enterprises denomi-
nated in foreign currencies are translated using the
exchange rates applicable on the transaction date.
Statement of financial position items of foreign subsi-
diaries are translated using the exchange rates appli-
cable at the statement of financial position date.
When it is assessed that the parent company no longer
has control over the subsidiary, it will be transferred to
either assets held for sale or unquoted shares and
when sold, it will be derecognised.
Equity investments in associates
Associates are enterprises in which the Group has sig-
nificant influence but not control, generally in the form
of an ownership interest of between 20% and 50% of
the voting rights. Equity investments in associates are
measured using the equity method and the carrying
amount of the investment represents the Group’s pro-
portionate share of the enterprises’ net assets. Signifi-
cant transaction costs are recognised as part of the
acquisition price.
Profit after tax from equity investments in associates is
included as a separate line in the income statement.
Income is made up after elimination of unrealised in-
tra-group profits and losses.
Associates with a negative net asset value are mea-
sured at zero value. If the Group has a legal or con-
structive obligation to cover the associate’s negative
balance, such obligation is recognised under liabilities.
Investments
Investments include financial assets at fair value which
are recognised in the income statement. The classifi-
cation depends on the purpose for which the invest-
ments were acquired. Management determines the
classification of its investments on initial recognition
and re-evaluates this at every reporting date.
Financial assets measured at fair value with recogni-
tion of value adjustments in the income statement
comprise assets that form part of a trading portfolio
Annual report 2022 | Tryg A/S | 113
Financial statements - Contents
Notes
and financial assets designated at fair value with value
adjustment via the income statement.
The investment portfolio is divided into a match port-
folio corresponding to the technical provisions, and a
free portfolio. The objective for the return on the
match portfolio is to approximately offset the capital
gains and losses on the assets with the corresponding
developments on the insurance provisions. The free
portfolio is invested in different asset classes with a
view to obtaining the best risk-adjusted return.
To avoid an accounting mismatch fixed income finan-
cial assets in the match portfolio are designated as
measured at fair value through profit or loss.
Financial assets at fair value recognised in income
statement
Financial assets are recognised at fair value on initial
recognition if they are entered in a portfolio that is ma-
naged in accordance with fair value. Derivative finan-
cial instruments are similarly classified as financial as-
sets held for sale, unless they are classified as hedging
instruments.
Realised and unrealised profits and losses that may
arise because of changes in the fair value for the cate-
gory financial assets at fair value are recognised in the
income statement in the period in which they arise.
Financial assets are derecognised when the rights to
receive cash flows from the financial assets have expi-
red, or if they have been transferred, and the Group
has also transferred substantially all risks and rewards
of ownership. Financial assets are recognised and
derecognised on a trade date basis, the date on which
the Group commits to purchase or sell the asset.
The fair values of quoted securities are based on stock
exchange prices at the statement of financial position
date. For securities that are not listed on a stock ex-
change, or for which no stock exchange price is quo-
ted that reflects the fair value of the instrument, the
fair value is determined using valuation techniques.
These include the use of similar recent arm’s length
transactions, reference to other similar instruments or
discounted cash flow analysis.
Derivative financial instruments and hedge accounting
The Group’s activities expose it to financial risks, inclu-
ding changes in share prices, foreign exchange rates,
interest rates and inflation. Forward exchange contra-
cts and currency swaps are used for currency hedging
of portfolios of shares, bonds, hedging of foreign enti-
ties and insurance statement of financial position
items. Interest rate derivatives in the form of futures,
forward contracts, swaps and FRAs are used to ma-
nage cash flows and interest rate risks related to the
portfolio of bonds and insurance provisions. Share
derivatives in the form of futures and options are used
from time to time to adjust share exposures.
Derivative financial instruments are reported from the
trading date and are measured in the statement of fi-
nancial position at fair value. Positive fair values of
derivatives are recognised as derivative financial in-
struments under assets. Negative fair values of deriva-
tives are recognised under derivative financial instru-
ments under liabilities. Positive and negative values
are only offset when the company is entitled or in-
tends to make net settlement of more financial instru-
ments.
Discounting based on market interest rates is applied
in the case of derivative financial instruments involving
an expected future cash flow.
Recognition of the resulting gain or loss depends on
whether the derivative is designated as a hedging in-
strument and, if so, the nature of the item being
hedged. The Group designates certain derivatives as
hedges of investments in foreign entities. Changes in
the fair value of derivatives that are designated and qu-
alify as net investment hedges in foreign entities and
which provide effective currency hedging of the net in-
vestment are recognised in other comprehensive in-
come. The net asset value of the foreign entities esti-
mated at the beginning of the financial year is hedged
90-100% by entering into short-term forward ex-
change contracts according to the requirements of
hedge accounting. Changes in the fair value relating to
the ineffective portion are recognised in the income
statement. Gains and losses accumulated in equity are
included in the income statement on disposal of the
foreign entity.
Reinsurers’ share of provisions for insurance contracts
Contracts entered into by the Group with reinsurers
under which the Group is compensated for losses on
one or more contracts issued by the Group and that
meet the classification requirements for insurance
contracts are classified as reinsurers’ share of provisi-
ons for insurance contracts. Contracts that do not
meet these classification requirements are classified
as financial assets.
The benefits to which the Group is entitled under its
reinsurance contracts held are recognised as assets
and reported as reinsurers’ share of provisions for in-
surance contracts.
Amounts receivable from reinsurers are measured
consistently with the amounts associated with the
reinsured insurance contracts and in accordance with
the terms of each reinsurance contract.
Changes due to unwinding are recognised in insurance
technical interest. Changes due to changes in the yield
curve or foreign exchange rates are recognised as
price adjustments.
The Group continuously assesses its reinsurance as-
sets for impairment. If there is objective evidence that
the reinsurance asset is impaired, the Group reduces
the carrying amount of the reinsurance asset to its re-
coverable amount. Impairment losses are recognised
in the income statement.
Receivables
Total receivables comprise accounts receivable from
policyholders and insurance companies as well as other
accounts receivable. Other receivables primarily contain
accounts receivable in connection with property.
Receivables that arise because of insurance contracts
are classified in this category and are reviewed for im-
pairment as a part of the impairment test of accounts
receivable.
Receivables are recognised initially at fair value and
are subsequently assessed at amortised cost. The in-
come statement includes an estimated reservation for
expected unobtainable sums when an objective evi-
dence of the asset impairment is observed. The reser-
vation entered is assessed as the difference between
the carrying amount of an asset and the present value
of expected future cash flows.
Other assets
Other assets include current tax assets and cash at
bank and in hand. Current tax assets are receivables
concerning tax for the year adjusted for on-account
payments and any prior-year adjustments. Cash at
bank and in hand is recognised at nominal value at the
statement of financial position date. Reverse repur-
chase lending to credit institutions are recognised and
measured at amortised cost, and the return is recogni-
sed as interest income in the income statement.
Prepayments and accrued income
Prepayments include expenses paid in respect of sub-
sequent financial years and interest receivable. Ac-
crued underwriting commission relating to the sale of
insurance products is also included.
Equity
Share capital
Shares are classified as equity when there is no obliga-
tion to transfer cash or other assets. Costs directly at-
tributable to the issue of equity instruments are shown
in equity as a deduction from the proceeds, net of tax.
Revaluation reserves
Revaluation of owner-occupied property is recognised
in other comprehensive income unless the revaluation
offsets a previous impairment loss.
Annual report 2022 | Tryg A/S | 114
Financial statements - Contents
Notes
Foreign currency translation reserve
Assets and liabilities of foreign entities are recognised
using the exchange rate applicable at the statement of
financial position date. Income and expense items are
recognised using the average monthly exchange rates
for the period. Any resulting differences are recognised
in Other comprehensive income. When an entity is
wound up or sold, the balance is transferred to the in-
come statement. The hedging of the currency risk in
respect of foreign entities is also offset in other com-
prehensive income in respect of the part that concerns
the hedge.
Contingency fund reserves
Contingency fund reserves are recognised as part of
retained earnings under equity. The reserves may only
be used when so permitted by the Danish Financial
Supervisory Authority and when it is for the benefit of
the policyholders. The Norwegian contingency fund
reserves include provisions for the Norwegian Natural
Perils Pool and security reserve. The Danish and Swe-
dish provisions comprise contingency fund provisions.
Deferred tax on the Norwegian and Swedish contin-
gency fund reserves is allocated.
Dividends
Proposed dividend is recognised as a liability at the
time of adoption by the shareholders at the annual ge-
neral meeting (date of declaration).
Own shares
The purchase and sale sums of own shares and divi-
dends thereon are taken directly to retained earnings
under equity. Own shares include shares acquired for
incentive programmes and share buyback pro-
gramme.
Proceeds from the sale of own shares in connection
with the or matching shares are taken directly to
equity.
Subordinate loan capital
Subordinate loan capital is recognised initially at fair
value, net of transaction costs incurred. Subordinate
loan capital is subsequently stated at amortised cost;
any difference between the proceeds (net of transac-
tion costs) and the redemption value is recognised in
the income statement over the borrowing period using
the effective interest method.
Interest on the Notes is due and payable only at the
sole and absolute discretion of Tryg. Accordingly, Tryg
may at any time in its sole and absolute discretion
elect to cancel any interest payment (or any part the-
reof) which would otherwise be payable on any inte-
rest payment date.
In case interest payments are cancelled Tryg shall, in
general, solicit interest from new investors for the pur-
chase and subscription of replacement securities and
redeem the original notes at a price equal to their
outstanding principal amount together with any ac-
crued interest and accrued and unpaid interest. Accor-
dingly, perpetual additional capital with discretionary
payment of interest and principal is recognised as
debt.
Provisions for insurance contracts
Premiums written are recognised in the income state-
ment (premium income) proportionally over the pe-
riod of coverage and, where necessary, adjusted to re-
flect any time variation of the risk. The portion of
premiums written on in-force contracts that relates to
unexpired risks at the statement of financial position
date is reported as premium provisions. Premium pro-
visions are generally calculated according to a best
estimate of expected payments throughout the agreed
risk period; however, as a minimum as the part of the
premium calculated using the pro rata temporis prin-
ciple until the next payment date. Adjustments are
made to reflect any risk variations. This applies to
gross as well as ceded business.
Claims and claims handling costs are expensed in the
income statement as incurred based on the estimated
liability for compensation owed to policyholders or
third parties sustaining losses at the hands of the poli-
cyholders. They include direct and indirect claims
handling costs that arise from events that have occur-
red up to the statement of financial position date even
if they have not yet been reported to the Group. Claims
provisions are estimated using the input of assess-
ments for individual cases reported to the Group and
statistical analyses for the claims incurred but not re-
ported and the expected ultimate cost of more com-
plex claims that may be affected by external factors
(such as court decisions). The provisions include
claims handling costs.
Claims provisions are discounted. Discounting is ba-
sed on a yield curve reflecting duration applied to the
expected future payments from the provision.
Discounting affects the motor liability, professional lia-
bility, workers’ compensation and personal accident
and health insurance classes, in particular.
Provisions for bonuses and premium discounts etc. re-
present amounts expected to be paid to policyholders
in view of the claims experience during the financial
year.
Claims provisions are determined for each line of busi-
ness based on actuarial methods. Where such busi-
ness lines encompass more than one business area,
short-tailed claims provisions are distributed based on
number of claims reported while long-tailed claims
provisions are distributed based on premiums earned.
The models currently used are Chain-Ladder, Bornhu-
etter-Ferguson, the Loss Ratio method. Chain-Ladder
techniques are used for lines of business with a stable
run-off pattern. The Bornhuetter-Ferguson method,
and sometimes the Loss Ratio method, are used for
claims years in which the previous run-off provides in-
sufficient information about the future run-off perfor-
mance.
The provision for annuities under workers’ compensa-
tion insurance is calculated on the basis of a mortality
corresponding to the G82 calculation basis (official
mortality table).
In some instances, the historic data used in the actua-
rial models is not necessarily predictive of the expec-
ted future development of claims. For example, this is
the case with legislative changes where an a priori
estimate is used for premium increases related to the
expected increase in claims. In connection with legi-
slative changes, the same estimate is used for deter-
mining the change in the level of claims. Subsequently,
this estimate is maintained until new loss history ma-
terialises which can be used for re-estimation.
Several assumptions and estimates underlying the
calculation of the claims provisions are mutually de-
pendent. Most importantly, this can be expected to be
the case for assumptions relating to interest rates and
inflation.
Workers’ compensation is an area in which explicit in-
flation assumptions are used, with annuities for the in-
sured being indexed based on the workers’ compensa-
tion index. An inflation curve that reflects the market’s
inflation expectations plus a real wage spread is used
as an approximation to the workers’ compensation in-
dex.
For other lines of business, the inflation assumptions,
because present only implicitly in the actuarial mo-
dels, will cause a certain lag in predicting the level of
future losses when a change in inflation occurs. On the
other hand, the effect of discounting will show imme-
diately as a consequence of inflation changes to the
extent that such changes affect the interest rate.
Other correlations are not deemed to be significant.
Liability adequacy test
Tests are continuously performed to ensure the ade-
quacy of the insurance provisions. In performing these
tests, current best estimates of future cash flows of
claims, gains and direct and indirect claims handling
costs are used. Any deficiency results in an increase in
the relevant provision, and the adjustment is recogni-
sed in the income statement.
Employee benefits
Pension obligations
The Group operates various pension schemes. The
schemes are funded through contributions to in-
surance companies or trustee-administered funds. In
Annual report 2022 | Tryg A/S | 115
Financial statements - Contents
Notes
Norway, the Group operated a defined-benefit plan
which was closed at 01 January 20. In Denmark, the
Group operates a defined-contribution plan. A defi-
ned-contribution plan is a pension plan under which
the Group pays fixed contributions into a separate en-
tity (a fund) and will have no legal or constructive obli-
gation to pay further contributions. In Sweden, the
Group complies with the industry pension agreement,
FTP-Planen. FTP-Planen is primarily a defined-benefit
plan as regards the future pension benefits. Försäk-
ringsbranschens Pensionskassa (FPK) is unable to pro-
vide sufficient information for the Group to use defi-
ned-benefit accounting. The plan is on that basis
accounted for as a defined-contribution plan. As part
of the termination of the defined-benefit plan in
Norway, an agreement of compensation to the emplo-
yees covered by the plan was agreed. A liability has
been established to cover the expected compensation
to be paid to the employees upon retirement from the
company. If the employee leaves before retirement
only a part of the compensation is paid. There is no fu-
ture actuarial assumptions related to the liability, only
uncertainty is whether the employees stays to retire-
ment or not.
Other employee benefits
Employees of the Group are entitled to a fixed pay-
ment when they reach retirement and when they have
been employed with the Group for 25 and for 40 years.
The Group recognises this liability at the time of sig-
ning the contract of employment.
In special instances, the employee can enter into a
contract with the Group to receive compensation for
loss of pension benefits caused by reduced working
hours. The Group recognises this liability based on sta-
tistical models.
Income tax and deferred tax
The Group expenses current tax according to the tax
laws of the jurisdictions in which it operates. Current
tax liabilities and current tax receivables are recogni-
sed in the statement of financial position as estimated
tax on the taxable income for the year, adjusted for
change in tax on prior years’ taxable income and for
tax paid under the on-account tax scheme.
Deferred tax is measured according to the statement
of financial position liability method on all timing diffe-
rences between the tax and accounting value of assets
and liabilities. Deferred income tax is measured using
the tax rules and tax rates that apply in the relevant
countries on the statement of financial position date
when the deferred tax asset is realised, or the deferred
income tax liability is settled.
Deferred income tax assets, including the tax value of
tax losses carried forward, are recognised to the extent
that it is probable that future taxable profit will be rea-
lised against which the temporary differences can be
offset.
Deferred income tax is provided on temporary diffe-
rences concerning investments, except where Tryg
controls when the temporary difference will be reali-
sed, and it is probable that the temporary difference
will not be realised in the foreseeable future.
Other provisions
Provisions are recognised when the Group has a legal
or constructive obligation because of an event prior to
or at the statement of financial position date, and it is
probable that future economic benefits will flow out of
the Group. Provisions are measured at the best esti-
mate by management of the expenditure required to
settle the present obligation.
Provisions for restructurings are recognised as obliga-
tions when a detailed formal restructuring plan has
been announced prior to or at the statement of finan-
cial position date at the latest to the persons affected
by the plan.
Own insurance is included under other provisions. The
provisions apply to the Group’s own insurance claims
and are reported when the damage occurs according
to the same principle as the Group’s other claims pro-
visions.
Debt
Debt comprises debt in connection with direct in-
surance and reinsurance, amounts owed to credit in-
stitutions, current tax obligations, debt to group under-
takings and other debt. Other liabilities are assessed at
amortised cost based on the effective interest method.
Debt related to leasing and the external investors
share of Kapitalforeningen Tryg Invest Funds and Kapi-
talforeningen Tryg Invest are included in other debt.
The external investors share of Kapitalforeningen Tryg
Invest relates to shares, bonds and investment proper-
ties.
Repo deposits from credit institutions are recognised
and measured at amortised cost, and the return is re-
cognised as interest expenses in the income state-
ment.
Cash flow statement
The consolidated cash flow statement is presented
using the direct method and shows cash flows from
operating, investing and financing activities as well as
the Group’s cash and cash equivalents at the begin-
ning and end of the financial year. No separate cash
flow statement has been prepared for the parent com-
pany because it is included in the consolidated cash
flow statement.
Cash flows from operating activities are calculated
whereby major classes of gross cash receipts and
gross cash payments are disclosed.
Cash flows from investing activities comprise pay-
ments in connection with the purchase and sale of int-
angible assets, property, plant and equipment as well
as financial assets and deposits with credit institutions.
Cash flows from financing activities comprise changes
in the size or composition of Tryg’s share capital and re-
lated costs as well as the raising of loans, repayments
of interest-bearing debt and the payment of dividends.
Cash and cash equivalents comprise cash and de-
mand deposits.
Other
The amounts in the report are disclosed in whole num-
bers of DKKm, unless otherwise stated. The amounts
have been rounded and consequently the sum of the
rounded amounts and totals may differ slightly.
Annual report 2022 | Tryg A/S | 116
Financial statements - Contents
Notes
30 Transition to IFRS 9 & IFRS 17 at 1 January 2023
The description below is a supplement to note 29,
accounting policies.
Accounting regulation applicable 1 January
2023
IFRS 9 / IFRS 17
In July 2014, the IASB issued the final IFRS 9 “Financial
Instruments”.
The standard includes new provisions governing “clas-
sification and measurement of financial assets”, im-
pairment of financial assets and “hedge accounting”.
IFRS 9 entered into force for the accounting year com-
mencing 1 January 2018
• Insurance companies are allowed to postpone the
implementation to 1 January 2023.
The implementation of IFRS 9 “financial instruments”
is not expected to significantly change the Tryg
Group’s financial position.
Regarding IFRS 9 the assessment of no significant im-
pact on the statement of financial position or profit
and loss is based on the assumption that Tryg already
carry substantially all financial instruments at fair va-
lue through profit and loss. The implementation of
IFRS 9, will not affect Tryg’s recognition and measure-
ment. Tryg has postponed the implementation of IFRS
9 to 1 January 2023 when IFRS 17 Insurance Contra-
cts will be applicable.
Tryg can postpone IFRS 9 due to the fact that our acti-
vities are predominantly connected with insurance
and that our liabilities connected with insurance is re-
latively greater than 80 per cent of the total liabilities.
Classification and measurement
The general principles for measurement of financial as-
sets and liabilities will generally change following im-
plementation of IFRS 9. But for the Tryg Group the im-
plementation has not given rise to significant changes.
After initial recognition, financial assets must still be
measured at amortised cost, fair value through other
comprehensive income or fair value through profit or
loss. Going forward, classification of financial instru-
ments will be based on the following business models:
The asset is held to collect cash flows from payments
of principal and interest (Hold to Collect model).
Measured at amortised cost.
The asset is held to collect cash flows from payments
of principal and interest and selling the asset (Hold to
Collect and Sell business model). Measured at fair va-
lue with changes recognised through other compre-
hensive income with reclassification to the income
statement on realisation of the assets.
Other financial assets value adjusted through profit or
loss (fair value)
Relative to the first two categories, the business model
should be based on collection of cash flows from pay-
ment of interest and principal combined with limited
sales activity.
If the business model is not founded on these assump-
tions, the financial assets will be placed in a category,
which is subject to value adjustment through profit or
loss. Financial assets, which, if measured at amortised
cost or at fair value through other comprehensive in-
come would result in measuring inconsistencies, are
also recognised in this category.
Having reviewed the Group’s business models in rela-
tion to assessing the significance of collecting cash
flows, current classification and measurement are lar-
gely unchanged compared with current practice. In
particular, it should be noted that Tryg does not have a
business model that implies recognising fair value ad-
justments in other comprehensive income.
Thus, bank loans and deposits are essentially still mea-
sured at amortised cost.
IFRS 17 replaces IFRS 4 Insurance Contracts for repor-
ting periods beginning on or after 1 January 2023.
The adoption of IFRS 17 will not change the classifica-
tion of the Company’s insurance contracts.
The impact of IFRS 17 (Insurance Contracts) is cur-
rently being assessed in a structured and formal man-
ner and is expected to be concluded in due course
ahead of the implementation date.
Tryg Group currently expects that the implementation
of IFRS 17 (Insurance Contracts) will not significantly
change the Tryg Group’s financial position.
Under IFRS 17 the Group’s insurance contracts issued
and re-insurance contracts held are eligible to be mea-
sured using the simplification, Premium Allocation
Approach (PAA).
As the current accounting principles apply PAA, the
major changes will predominantly be presentational.
The only consequential changes that will have an im-
pact on the technical result will be the reclassification
of education and development costs to “Other income
and costs” and the reclassification of the effects of the
inflation swap which will be included in “Investment
activities”.
IFRS 17 will introduce a new vocabulary that will affect
the look of the statement of profit or loss:
• ”Insurance revenue” will replace ”Gross pre-
mium income” as the topline figure
• ”Insurance service expense” will be a single line
comprising both claims and expenses including
“Bonus and premium discounts”
• The result of reinsurance contracts will be repor-
ted in a single line, ”Net expenses from
reinsurance contracts”
• “Insurance service result” will replace “Technical
result”
These presentational changes will not affect the tech-
nical result or the profit/loss for the year.
The changes will be implemented from the effective
date.
Annual report 2022 | Tryg A/S | 117
Financial statements - Contents
DKKm 2022 2021
Note Investment activities
1 Income from Group undertakings 2,570 3,120
Income from associates 34 1,206
10 Interest income 5 1
2 Value adjustments -18 -1,015
10 Interest expenses -365 -34
Administration expenses in connection with investment activities -5 -5
Total investment return 2,222 3,272
3 Other expenses -96 -82
Profit/loss before tax 2,126 3,190
4 Tax 121 -33
Profit/loss for the year 2,247 3,158
Proposed distribution for the year:
Dividend 4,118 2,802
Transferred to reserve for net revaluation according to the
equity method 163 1,696
Transferred to retained earnings -2,033 -1,340
2,247 3,158
DKKm 2022 2021
Statement of comprehensive income
Profit/loss for the year 2,247 3,158
Other comprehensive income
Other comprehensive income which cannot subsequently be
reclassified as profit or loss
Actuarial gains/losses on defined-benefit pension plans -2 0
Tax on actuarial gains/losses on defined-benefit pension plans 1 0
-2 0
Other comprehensive income which can subsequently be re-
classified as profit or loss
Deferred tax related to receivable balance -50 0
Exchange rate adjustments of foreign entities -2,217 93
Exchange rate adjustments of foreign material associates 52 -52
Hedging of currency risk in foreign entities 496 -99
Tax on hedging of currency risk in foreign entities -109 22
-1,828 -36
Total other comprehensive income -1,830 -36
Comprehensive income 417 3,122
Income statement for Tryg A/S (parent company)
Annual report 2022 | Tryg A/S | 118
Financial statements - Contents
DKKm 2022 2021
Note Assets
5 Equity investments in Group undertakings 72,524 13,029
6 Equity investments in associates 185 37,052
Total investments in associates and Group undertakings 72,709 50,081
Total investment assets 72,709 50,081
Receivables from subsidiaries 65 0
Total other assets 65 0
7 Current tax assets 106 0
Other 1 1
Total other assets 107 1
Total prepayments and accrued income 34 55
Total assets 72,915 50,137
DKKm 2022 2021
Note Equity and liabilities
Equity 42,504 49,008
Debt to Group undertakings 30,331 1,092
Tax liabilities 0 33
Other debt 81 4
Total debt 30,412 1,129
Total equity and liabilities 72,915 50,137
8 Deferred tax assets
9 Contractual obligations, contingent liabilities and collateral
10 Related parties
11 Reconciliation of profit/loss and equity
12 Accounting policies
Statement of financial position for Tryg A/S
(parent company)
Annual report 2022 | Tryg A/S | 119
Financial statements - Contents
Proposed dividend per share is calculated as the total
dividend proposed by the Supervisory Board after the
end of the financial year divided by the total number
of shares at the end of the year (654,653,980 shares).
a) 352,505,989 new shares of nominal DKK 5 at a
price of 105 per share were issued. Cost related to
the issue of new shares are deducted in proceeds
recognised in retained earnings with DKK 694m.
Total changes in equity in DKKm
Share
capital
Revaluation
reserves
Retained
earnings
Proposed
dividend
Non-controlling
interest Total
3,273 5,119 39,915 700 1 49,008
Equity at 31 December 2021
2022
Profit/loss for the year 163 -2,033 4,118 2,247
Other comprehensive income -1,830 -1,830
Total comprehensive income 0 -1,667 -2,033 4,118 0 417
Dividend paid -3,771 -3,771
Dividend own shares 38 38
Purchase and sale of own shares -3,253 -3,253
Share-based payments 65 65
Total changes in equity in 2022 0 -1,667 -5,183 347 0 -6,504
Equity at 31 December 2022 3,273 3,451 34,731 1,047 1 42,504
Equity at 31 December 2020 1,511 3,458 6,765 529 1 12,264
2021
Profit/loss for the year 1,696 -1,340 2,802 0 3,158
Other comprehensive income -36 -36
Total comprehensive income 0 1,660 -1,340 2,802 0 3,122
Dividend paid -2,630 -2,630
Dividend own shares 3 3
Purchase and sale of own shares -137 -137
Issue of new shares
a)
1,763 34,557 36,320
Share-based payments 66 66
Total changes in equity in 2021 1,763 1,660 33,150 172 0 36,744
Equity at 31 December 2021 3,273 5,119 39,915 700 1 49,008
Statement of changes in equity (parent company)
Annual report 2022 | Tryg A/S | 120
Financial statements - Contents
Notes
(parent company)
DKKm 2022 2021
1 Income from Group undertakings
Tryg Invest A/S 20 8
Alka Fordele A/S -23 -25
Scandi JV Co A/S 285 0
Tryg Forsikring A/S 2,287 3,137
2,570 3,120
2 Value adjustments
In 2022 consists only of currency adjustments. In 2021 primarily value adjustment of currency hedge
DKK -1,035m related to RSA acquisition which consists of the premium paid and exchange rate adjust-
ments which cannot be attributed to hedge accounting.
3 Other expenses
Administration expenses -96 -82
-96 -82
Remuneration for the Executive Board is paid partly by Tryg A/S and partly by Tryg Forsikring A/S and is
charged to Tryg A/S via the cost allocation. Refer to Note 6 in the Tryg Group for a specification of the
audit fee.
Average number of full-time employees for the year 9 8
4 Tax
Reconciliation of tax costs
Tax on profit/loss for the year 106 -16
Tax adjustments, previous years 16 0
Adjustment of non-taxable income and costs 0 -18
121 -33
Tax on profit/loss for the year in the parent company is calculated exclusive of profit/loss and tax in
Group undertakings.
Effective tax rate %
Tax on profit/loss for the year 22 22
Tax adjustment, previous years 3 0
Adjustment of non-taxable income and costs 0 24.5
25.0 46.5
DKKm 2022 2021
5 Equity investments in Group undertakings
Cost
Cost at 1 January 9,053 9,005
Additions for the year 60,008 48
Cost at 31 December 69,061 9,053
Revaluation and impairment to net asset value
Revaluation and impairment at 1 January 3,976 3,470
Revaluations for the year 686 3,137
Dividend paid -1,200 -2,630
Revaluation and impairment at 31 December 3,463 3,976
Carrying amount at 31 December 72,524 13,029
Name, registered office and activity
Ownership
share in % Profit/loss Equity
2022
Tryg Invest A/S, Ballerup 100 20 60
Alka Fordele A/S, Ballerup 100 -23 28
Scandi JV Co A/S (Under voluntary liquida-
tion) 100 285 30,255
Tryg Forsikring A/S, Ballerup 100 2,287 42,182
2021
Tryg Invest A/S, Ballerup 100 8 39
Alka Fordele A/S, Ballerup 100 -25 28
Tryg Forsikring A/S, Ballerup 100 3,137 12,962
6 Equity investments in associates
Please refer to note 14 Equity investments
in associates in Tryg Group.
Annual report 2022 | Tryg A/S | 121
Financial statements - Contents
Notes
(parent company)
DKKm 2022 2021
7 Current tax assets
Tax receivable at 1 January -33 20
Adjustment to previous years 16 0
Current tax for the year 106 -33
Tax paid for the year 17 -20
Tax receivable at 31 December 106 -33
8 Deferred tax assets
Capitalised tax losses
Tryg A/S 0 72
Tax value of non-capitalised tax losses
Tryg A/S 0 16
9 Contractual obligations, contingent liabilities and collateral
The Danish companies in the Tryg Group are jointly taxed with TryghedsGruppen smba. The companies
and the other jointly taxed companies are liable for any obligations to withhold taxes at source on inte-
rest, royalties, dividends and income taxes etc. in respect of the jointly taxed companies.
Companies in the Tryg Group are party to a number of disputes in Denmark, Norway and Sweden.
Management believes that the outcome of these disputes will not affect the Group’s financial position
over and above the receivables and liabilities recognised in the statement of financial position at 31 De-
cember 2022.
DKKm
10 Related parties
Tryg A/S has no related parties with a controlling influence other than the parent company, Trygheds-
Gruppen smba. Related parties with a significant influence include the Supervisory Board, the Executive
Board (which is considered Key Management) and their members’ related family.
Specification of remuneration
2022
Number of
persons
Base salary
incl. car al-
lowance
Share-based
variable
salary
a)
Cash
variable
salary Pension Total
Supervisory Board 18 11 0 0 0 11
Executive Board 4 31 16 0 8 55
Risk-takers
b)
1 0 0 0 0 0
23 42 16 0 8 66
a) Total expenses recognised in 2022 for matching shares and conditional shares allocated in 2022 and
previous years.
b) Risk-takers in Tryg A/S includes only one employee, wherefore salary and pension is not presented.
The amounts are included in note 27 for Tryg Group.
Of which retired
Number of
persons
Severance
pay
Supervisory Board 4 0
Executive Board 0 0
Risk-takers 0 0
4 0
Annual report 2022 | Tryg A/S | 122
Financial statements - Contents
Notes
(parent company)
DKKm
10 Related parties (continued)
Each member of the Executive Board is entitled to 12 months’ notice and severance pay equal to 12
months’ salary plus pension contribution (Group CEO is entitled to severance pay equal to 18 months’
salary). If a change of control clause is actioned CEO and COO are instead entitled to Severance pay
equal to 36 months’ salary.
Risk-takers are defined as employees whose activities have a significant influence on the company’s risk
profile. The Supervisory Board decides which employees should be considered to be risk-takers.
Parent company
TryghedsGruppen smba
TryghedsGruppen smba controls 45% (45%) of the total shares in Tryg A/S. This amounts to Trygheds-
Gruppen smba controlling 46.5% of the shares outstanding in Tryg A/S as at 31 December 2022.
Transactions with Group undertakings and associates
Tryg A/S exercises full control over Tryg Forsikring A/S, Scandi JV Co A/S, Scandi Co 3 A/S, Alka Fordele
A/S and Tryg Invest A/S.
In 2022 Tryg Forsikring A/S paid Tryg A/S DKK 1,200m and Tryg A/S paid TryghedsGruppen smba DKK
1,697m in dividends.
Intra-group trading involved 2022 2021
- Providing and receiving services 1 11
- Intra-group accounts -30,265 1,092
- Interest -359 0
The intra-group trading is primarily against Tryg Forsikring A/S.
Administration fee, etc. is settled on a cost-recovery basis.
Intra-group accounts are offset and carry interest on market terms.
11 Reconciliation of profit/loss and equity
The executive order on application of International Financial Reporting Standards for companies subject
to the Danish Financial Business Act issued by the Danish FSA requires disclosure of differences
between the format of the annual report under International Financial Reporting Standards and the
rules issued by the Danish FSA.
There is no difference in profit/loss or equity recognised after Danish FSA and IFRS.
12 Accounting policies
Please refer to Tryg Group's accounting policies.
DKKm
10 Related parties (continued)
2021
Number of
persons Base salary
Share-based
variable
salary
a)
Cash
variable
salary Pension Total
Supervisory Board 13 10 0 0 0 10
Executive Board 4 30 12 0 7 50
Risk-takers
b)
1 0 0 0 0 0
18 40 12 0 7 60
a) Total expenses recognised in 2021 for matching shares and conditional shares allocated in 2021 and
previous year.
b) Risk-takers in Tryg A/S includes only one employee, wherefore salary and pension is not presented.
The amounts are included in note 27 for Tryg Group.
Of which retired
Number of
persons
Severance
pay
Supervisory Board 0 0
Executive Board 0 0
Risk-takers 0 0
0 0
Base salary are charges incurred during the financial year. Variable salary includes the charges for
matching shares and conditional shares, which are recognised over 4 years.
The Executive Board and risk-takers are included in incentive programmes. Please refer to note 6 for
more information.
The members of the Supervisory Board in Tryg A/S are paid with a fixed remuneration and are not cove-
red by the incentive schemes.
The members of the Executive Board are paid a fixed remuneration, car allowance, pension etc.
The variable salary is awarded in the form of share-based remuneration and cash. see ’Corporate gover-
nance’.
Annual report 2022 | Tryg A/S | 123
Financial statements - Contents
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3
DKKm 2022 2022 2022 2022 2021 2021 2021 2021 2020 2020
Private
Gross premium income 5,847 6,107 6,020 3,985 3,840 3,927 3,877 3,743 3,638 3,610
Technical result 1,073 1,203 1,200 336 681 607 729 479 633 657
Key ratios
Gross claims ratio 67.3 65.8 65.5 75.7 68.4 68.5 65.1 71.5 67.3 66.9
Net reinsurance ratio 1.9 1.4 1.4 2.0 1.7 1.8 1.9 1.5 2.2 0.4
Claims ratio, net of reinsurance 69.2 67.1 66.9 77.7 70.1 70.3 67.0 73.1 69.6 67.3
Gross expense ratio 13.1 13.7 13.4 13.8 12.1 14.1 14.1 14.0 12.9 14.4
Combined ratio 82.4 80.9 80.3 91.5 82.2 84.4 81.1 87.1 82.5 81.7
Combined ratio exclusive of run-off 83.4 82.9 81.9 93.0 84.6 86.6 83.3 90.0 85.1 84.1
Commercial
Gross premium income 2,292 2,339 2,305 1,415 1,352 1,338 1,316 1,288 1,261 1,248
Technical result 452 501 435 281 109 278 241 222 179 253
Key ratios
Gross claims ratio 65.7 60.3 66.7 55.5 67.3 56.4 65.7 62.4 61.9 55.5
Net reinsurance ratio -1.3 3.6 -1.6 7.9 4.9 7.0 -0.8 3.2 5.4 7.9
Claims ratio, net of reinsurance 64.4 63.8 65.1 63.4 72.2 63.4 64.9 65.6 67.3 63.4
Gross expense ratio 16.7 15.5 16.4 16.7 19.7 15.7 16.6 16.9 18.4 16.1
Combined ratio 81.1 79.3 81.4 80.1 91.9 79.1 81.5 82.5 85.7 79.6
Combined ratio exclusive of run-off 90.0 84.7 86.6 87.8 97.6 86.7 87.3 86.6 96.6 85.3
Corporate
Gross premium income 903 917 932 876 850 869 864 875 844 860
Technical result 164 127 266 136 36 103 174 47 -32 70
Key ratios
Gross claims ratio 58.8 66.6 53.1 70.4 81.4 68.5 55.1 75.6 86.7 59.8
Net reinsurance ratio 8.3 7.8 7.4 2.6 0.6 8.1 14.1 8.5 4.5 21.9
Claims ratio, net of reinsurance 67.1 74.4 60.5 73.0 82.0 76.6 69.2 84.2 91.2 81.7
Gross expense ratio 15.5 12.7 11.4 11.4 13.7 11.5 10.5 10.2 12.5 10.0
Combined ratio 82.7 87.1 71.9 84.4 95.7 88.0 79.7 94.4 103.7 91.7
Combined ratio exclusive of run-off 93.3 99.7 85.3 101.1 102.8 93.5 89.0 105.1 113.1 104.7
A further detailed version of the
presentation can be downloaded
from tryg.com/uk>investor>
Downloads>tables
Q4 2022 Quarterly outline
Annual report 2022 | Tryg A/S | 124
Financial statements - Contents
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3
DKKm 2022 2022 2022 2022 2021 2021 2021 2021 2020 2020
Other
a)
Gross premium income 0 0 0 0 0 0 0 0 0 0
Technical result 0 0 0 0 0 0 0 2 0 0
Tryg total
Gross premium income 9,042 9,363 9,257 6,276 6,041 6,133 6,057 5,906 5,744 5,719
Technical result 1,689 1,832 1,902 754 826 988 1,144 751 780 980
Investment return 317 -348 -878 -284 941 481 -757 343 513 237
Other income and costs -629 -521 -517 -266 -171 -267 -113 -72 -70 -67
Profit/loss before tax 1,377 964 508 204 1,596 1,201 274 1,022 1,223 1,150
Profit/loss 1,081 628 430 109 1,370 1,037 -63 814 1,038 930
Key ratios
Gross claims ratio 66.1 64.5 64.5 70.4 70.0 65.8 63.8 70.1 69.0 63.4
Net reinsurance ratio 1.7 2.5 1.3 3.4 2.2 3.9 3.1 2.9 3.3 5.2
Claims ratio, net of reinsurance 67.8 67.0 65.8 73.8 72.2 69.7 66.9 73.1 72.3 68.6
Gross expense ratio 14.3 14.1 13.9 14.1 14.0 14.1 14.1 14.1 14.0 14.1
Combined ratio 82.1 81.1 79.7 87.9 86.2 83.8 81.0 87.1 86.3 82.7
Combined ratio exclusive of run-off 86.1 85.0 83.4 93.0 90.1 87.6 85.0 91.5 91.8 87.4
a) Amounts relating to eliminations
and one-off items are included under
'Other'.
A further detailed version of the
presentation can be downloaded
from tryg.com/uk>investor>
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Q4 2022 Quarterly outline
Annual report 2022 | Tryg A/S | 125
Financial statements - Contents
DKKm Q4 2022 Q4 2021 2022 2021
Danish general insurance
Gross premium income 3,950 3,522 15,612 14,326
Technical result 745 500 2,685 2,448
Run-off gains/losses, net of reinsurance 217 133 752 644
Key ratios
Gross claims ratio 66.7 67.9 67.2 66.2
Net reinsurance ratio 1.7 3.1 1.7 2.0
Claims ratio, net of ceded business 68.4 71.0 68.8 68.2
Gross expense ratio 13.6 14.5 14.2 14.4
Combined ratio 81.9 85.6 83.1 82.7
Run-off, net of reinsurance (%) -5.5 -3.8 -4.8 -4.5
Number of full-time employees, end of period 3,345 3,062
Norwegian general insurance
NOK/DKK, average rate for the period 71.66 73.94 73.95 72.92
Gross premium income 2,115 1,889 8,386 7,263
Technical result 273 179 1,267 938
Run-off gains/losses, net of reinsurance 95 29 319 215
Key ratios
Gross claims ratio 66.5 75.4 66.9 69.1
Net reinsurance ratio 6.0 2.6 4.9 5.0
Claims ratio, net of ceded business 72.5 78.0 71.8 74.1
Gross expense ratio 15.2 12.7 13.6 13.1
Combined ratio 87.7 90.7 85.5 87.2
Run-off, net of reinsurance (%) -4.5 -1.6 -3.8 -3.0
Number of full-time employees, end of period 1,344 1,139
DKKm Q4 2022 Q4 2021 2022 2021
Swedish general insurance
SEK/DKK, average rate for the period 68.18 73.45 70.33 73.39
Gross premium income 2,920 584 9,730 2,390
Technical result 682 110 2,227 279
Run-off gains/losses, net of reinsurance 55 72 289 113
Key ratios
Gross claims ratio 62.4 67.6 63.1 71.4
Net reinsurance ratio 0.5 -1.2 0.5 2.2
Claims ratio, net of ceded business 62.9 66.4 63.6 73.6
Gross expense ratio 14.6 14.7 14.1 14.6
Combined ratio 77.5 81.1 77.7 88.3
Run-off, net of reinsurance (%) -1.9 -12.2 -3.0 -4.7
Number of full-time employees, end of period 1,781 431
Other
a)
Gross premium income 57 46 211 159
Technical result -11 36 -2 43
Run-off gains/losses, net of reinsurance -4 -2 20 -8
Number of full-time employees, end of period 49 42
Tryg (total)
Gross premium income 9,042 6,041 33,938 24,137
Technical result 1,689 826 6,177 3,709
Investment return 317 941 -1,193 870
Other income and costs -629 -171 -1,933 -624
Profit/loss before tax 1,377 1,596 3,051 3,956
Run-off gains/losses, net of reinsurance 362 232 1,380 963
Key ratios
Gross claims ratio 66.1 70.0 66.0 67.4
Net reinsurance ratio 1.7 2.2 2.1 3.0
Claims ratio, net of ceded business 67.8 72.2 68.2 70.5
Gross expense ratio 14.3 14.0 14.1 14.1
Combined ratio 82.1 86.2 82.2 84.5
Run-off, net of reinsurance (%) -4.0 -3.8 -4.1 -4.0
Number of full-time employees, end of period 6,518 4,674
a) Comprises credit & surety insurance (Tryg Garanti) in Finland, Netherlands, Austria, Switzerland, Belgium,
Germany and amounts relating to one-off items.
Q4 2022 Geographical segments
Annual report 2022 | Tryg A/S | 126
Financial statements - Contents
Key ratios are calculated in accordance with ’’Recom-
mendations & Financial Ratios’’ issued by the Danish
Society of Financial Analysts.
2022 2021 2020 2019 2018
Share performance
Earnings per share (DKK) 3.47 5.51 9.19 9.42 5.73
Diluted earnings per share (DKK) 3.47 5.51 9.19 9.42 5.73
Earnings per share of continuing business (DKK) 3.47 5.52 9.19 9.42 5.74
Operating earnings per share (DKK) 4.43 5.70 9.54 9.82 5.84
Number of shares (1,000) 633,710 653,447 301,750 301,700 301,743
Average number of shares (1,000) 646,977 572,688 301,678 301,954 302,043
Diluted average number of shares (1,000) 646,977 572,688 301,678 301,954 302,043
Share price (DKK) 165.35 161.50 192.10 197.50 163.90
Net asset value per share (DKK) 67.07 75.00 40.64 40.05 37.56
Market price/net asset value 2.5 2.2 4.7 4.9 4.4
Ordinary dividend per share (DKK) 6.29 4.28 7.00 6.80 6.60
Extraordinary dividend per share (DKK) 0.00 0.00 0.00 1.65 0.00
Price/Earnings 47.6 29.3 20.9 21.0 28.6
Number of full-time employess, continued business, at 31 December 6,518 4,674 4,400 4,151 4,027
Other key figures
Annual report 2022 | Tryg A/S | 127
Financial statements - Contents
Group chart at 1 January 2023. Companies and branches are wholly owned
by Danish owners and domiciled in Denmark, unless otherwise stated.
Company Branch
Group chart
Tryg A/S
TryghedsGruppen smba
(45%)
Other shareholders
(55%)
Tryg Forsikring A/S
Trygg-Hansa
Försäkring
(Branch Sweden)
Tryg Forsikring
(Branch Finland)
Tryg Forsikring
(Branch Germany)
Tryg Forsikring
incl. Enter
(Branch Norway)
Tryg
Livsforsikring A/S
Forsikrings-
Aktieselskabet
Alka Liv II
Respons
Inkasso AS
(Norway)
Tryg Forsikring
(Branch Austria)
Tryg Forsikring
(Branch
The Netherlands)
Tryg Forsikring
(Branch Switzerland)
Tryg
Ejendomme A/S
Kapitalforeningen
Tryg Invest Funds
(82%)
Holmia
Livsförsäkring AB
(Sweden)
Tryg
Invest A/S
Scandi Co 3 A/S
Under voluntary
liquidation
Scandi JV Co 2 A/S
(50%)
Alka Fordele A/S
Scandi JV Co A/S
Under voluntary
liquidation
Tryg Forsikring
(Branch Belgium)
Annual report 2022 | Tryg A/S | 128
Financial statements - Contents
Claims ratio, net of ceded business
Gross claims ratio + net reinsurance ratio.
Combined ratio
The sum of the gross claims ratio, the net reinsurance
ratio and the gross expense ratio.
Danish general insurance
Comprises the legal entities Tryg Forsikring A/S, Tryg
Livsforsikring A/S, Forsikrings-Aktieselskabet Liv II and
excluding the Norwegian and Swedish branches.
Diluted average number of shares
Average number of shares adjusted for number of
share options which may potentially dilute.
Discounting
Expresses recognition in the financial statements of
expected future payments at a value below the nomi-
nal amount, as the recognised amount carries interest
until payment. The size of the discount depends on the
market-based discount rate applied and the expected
time to payment.
Dividend per share
Proposed dividend
Number of shares at year-end
Earnings per share
Profit or loss for the year
Average number of shares
Earnings per share of continuing business
Diluted earnings from continuing business after tax
Diluted average number of shares
Gross claims ratio
Gross claims x 100
Gross premium income
Gross expense ratio without adjustment
Gross insurance operating costs x 100
Gross premium income
Gross premium income
Calculated as gross premium income adjusted for
change in gross premium provisions, less bonus and
premium discounts.
Market price/net asset value
Share price
Net asset value per share
Net asset value per share
Equity at year-end
Number of shares at year-end
Net reinsurance ratio
Profit or loss from reinsurance x 100
Gross premium income
Norwegian general insurance
Comprises Tryg Forsikring A/S, Norwegian branch.
Operating ratio
Calculated as the combined ratio plus insurance tech-
nical interest in the denominator.
Claims + insurance operating costs +
profit or loss from reinsurance x 100
Gross premium income + insurance technical interest
Other insurance
Comprises Finnish, Dutch, Austrian, Swiss, Belgium
and German credit & surety insurance and amounts
relating to one-off items.
Own funds
Equity plus share of qualifying solvency debt and profit
margin (solvency purpose), less intangible
assets, tax asset and proposed dividend.
Price/Earnings
Share price
Earnings per share
Relative run-off result
Run-off gains/losses net of reinsurance divided by
claims provisions net of reinsurance beginning of year.
Return on equity after tax (%)
Profit or loss for the year after tax
Weighted average equity
Run-off gains/losses
The difference between the claims provisions at the
beginning of the financial year (adjusted for foreign
currency translation adjustments and discounting
effects) and the sum of the claims paid during the
financial year and the part of the claims provisions at
the end of the financial year pertaining to injuries and
damage occurring in earlier financial years.
Glossary, Key Ratios and
alternative performance measures
The financial highlights and key ratios of Tryg have been prepared in accordance with the executive order issued by the
Danish Financial Supervisory Authority on the financial reports for insurance companies and multi-employer occupa-
tional pension funds, and also comply with ‘Recommendations & Ratios’ issued by the CFA Society Denmark.
Annual report 2022 | Tryg A/S | 129
Financial statements - Contents
Solvency II
Solvency requirements for insurance companies
issued by the EU Commission.
Solvency ratio
Ratio between own funds and capital requirement.
Swedish general insurance
Comprises Tryg Forsikring A/S, Swedish branch.
Total reserve ratio
Reserve ratio, claims provisions + premium provisions
divided by premium income.
Unwinding
Unwinding of discounting takes place with the passage
of time as the expected time to payment is reduced.
The closer the time of payment, the smaller the
discount. This gradual increase of the provision is not
recognised under claims, but under technical interest
in the income statement.
Alternative performance measures
The following financial measures included in this
annual report are not measures of financial perfor-
mance or liquidity under IFRS, as adopted by the EU or
in accordance with the executive order issued by the
Danish Financial Supervisory Authority on the financial
reports for insurance companies and multi-employer
occupational pension funds but are defined by man-
agement as follows:
Large claims, net of reinsurance
Large claims, net of reinsurance, as calculated by the
Tryg Group, represents
Large claims, net of reinsurance is defined as single
claims or claims events gross above 10m in local
currencies adjusted for reinsurance.
Large claims, net of reinsurance
Gross Premium income
Weather claims, net of reinsurance
Weather claims, net of reinsurance, as calculated by
the Tryg Group, represents:
Weather claims, net of reinsurance, is defined as
claims related to storm, cloudbursts, natural perils and
winter, adjusted for reinsurance.
Weather claims, net of reinsurance
Gross Premium income.
Run-off, net of reinsurance
Run-off, net of reinsurance, as calculated by the Tryg
Group, represents
Run-off, net of reinsurance
Gross Premium income.
Premium proforma growth in local currencies
Premium proforma growth in local currencies is
based on proforma figures that includes Trygg-Hansa
and Codan Norway. As calculated by the Tryg Group,
represents:
(Premium income including Trygg-Hansa and Codan
Norway pro-forma in year X - Premium income
including Trygg-Hansa and Codan Norway pro-forma
in year X-1)
Premium income including Trygg-Hansa and Codan
Norway pro-forma in year X-1
Return On Own Funds (ROOF)
Profit for the year after tax x 100
(Own Funds Primo + Own Funds Ultimo)/2
Return On Tangible Equity (ROTE)
Profit for the year after tax x 100
(Tangible Equity primo + Tangible Equity Ultimo)/2
Tangible Equity
Tangible Equity is defined as weighted average equity
excluding intangible assets and deferred tax related to
intangible assets
Annual report 2022 | Tryg A/S | 130
Financial statements - Contents
Motor insurance
Motor insurance accounts for 32% of total premium income and comprises
mandatory third-party liability insurance providing cover for injuries to a third
party or damage to a third party’s property, and a voluntary comprehensive
insurance policy that provides cover for damage to the customer’s own vehicle
from collision, fire or theft.
In Denmark, motor insurance taken out by concept customers includes
Tryg’s roadside assistance, such as towing and battery jump-start.
Fire and contents – Private
Fire and contents insurance for private customers represents 23% of total
premium income and includes, for example, house and contents insurance.
House insurance covers damage to properties caused by, for example, fire,
storm or water, legal assistance and the customer’s liability as owner of the
property.
The contents insurance covers loss of or damage to private household con-
tents and covers in and outside of the home. Moreover, the insurance includes
liability and legal assistance, to which can be added a number of supplemen-
tary covers, for example cover of sudden damage and damage to electronic
equipment.
Personal accident insurance
Personal accident insurance accounts for 15% of total premium income and
covers accidental bodily injury and death resulting from accidents.
Compensation takes the form of a lump sum intended to help the customer
cope with the financial consequences of an accident, thereby making their
daily lives easier. The insurance can include a number of supplementary
covers, including treatment by a physiotherapist or chiropractor.
Fire and contents – Commercial
Commercial fire and contents insurance, which includes building insurance,
represents 11% of total premium income and covers the loss of or damage to
the buildings, stock or equipment of commercial customers. Moreover, Tryg
provides cover for operating losses in connection with covered claims.
Workers’ compensation insurance
Workers’ compensation insurance accounts for 3% of total premium income
and covers employees against bodily injury sustained at work (in Norway, also
occupational diseases). Workers’ compensation insurance is mandatory and
covers a company’s employees (except for public sector employees and
persons working for sole proprietors).
General third-party liability insurance
General third-party liability insurance represents 5% of total premium income
and covers various types of liability, including claims incurred by a company
arising from the conduct of its business or in connection with its products,
and third-party liability for professionals.
Health insurance
Health insurance represents 2% of total premium income. The insurance cov-
ers the costs of examinations, treatment, medicine, surgery and rehabilitation
at a private health facility.
Being the largest insurance company in
Scandinavia, Tryg offers a broad range of
insurance products to both private individuals
and businesses. Tryg continuously develops
new products and adapts existing peace of
mind solutions to customer requirements and
developments in society. Also, Tryg focuses
strongly at all times on striking a better balance
between price and risk.
Tryg sells its products primarily via its own sales
channels such as call centres, the Internet, tied
agents, franchisees (Norway), interest organisa-
tions, car dealers, real estate agents, insurance
brokers and Nordea branches. Moreover, Tryg
engages in international cooperation with the
AXA Group. It is an important element of Tryg’s
distribution strategy to be available in places
where customers want it and that most
distribution takes place via the company’s own
sales channels.
Product overview
Annual report 2022 | Tryg A/S | 131
Financial statements - Contents
Certain statements in this annual report are
based on the beliefs of our management as
well as assumptions made by and information
currently available to management. Statements
regarding Tryg’s future operating results, finan-
cial position, cash flows, business strategy, plans
and future objectives other than statements
of historical fact can generally be identified by
the use of words such as ‘targets’, ‘believes’,
‘expects’, ‘aims’, ‘intends’, ‘plans’, ‘seeks’, ‘will’,
‘may’, ‘anticipates’, ‘would’, ‘could’, ‘continues’ or
similar expressions.
A number of different factors may cause the
actual performance to deviate significantly
from the forward-looking statements in this
annual report, including but not limited to
general economic developments, changes in the
competitive environment, developments in the
financial markets, extraordinary events such as
natural disasters or terrorist attacks, changes in
legislation or case law and reinsurance.
Should one or more of these risks or uncer-
tainties materialise, or should any underlying
assumptions prove to be incorrect, Tryg’s actual
financial condition or results of operations could
materially differ from that described herein as
anticipated, believed, estimated or expected.
Tryg is not under any duty to update any of the
forward-looking statements or to conform such
statements to actual results, except as may be
required by law.
Read more in the chapter Capital and risk man-
agement and in Note 1 Risk and capital man-
agement for a description of some of the factors
which may affect the Group’s performance or
the insurance industry.
Disclaimer
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