Capital Markets Day

London - 19 June 2012

2

Agenda

09.00-09.30: Registration and coffee

Introduction and welcome

A roadmap to value creation

Expenses

11.00-11.15: Coffee break

Claims costs

Reserves and capital

Combined ratio level

Concluding remarks

13.30-15.00: Lunch

3

Disclaimer

Certain statements in today’s presentations are based on the beliefs of our management as well as assumptions made

by and information currently available to the management. Forward-looking statements (other than statements of

historical fact) regarding our future results of operations, financial condition, cash flows, business strategy, plans and

future objectives can generally be identified by terminology such as “targets”, “believes”, “expects”, “aims”, “intends”,

“plans”, “seeks”, “will”, “may”, ”anticipates”, “continues” or similar expressions.

A number of different factors may cause the actual performance to deviate significantly from the forward-looking

statements in the presentations 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.

We urge you to read our financial reports available on tryg.com for a discussion of some of the factors that could affect

our future performance and the industry in which we operate.

Should one or more of these risks or uncertainties materialise or should any underlying assumptions prove to be

incorrect, our actual financial condition or results of operations could materially differ from that presented as

anticipated, believed, estimated or expected.

We are 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.

4

A roadmap to value creation

5

Growth Profitability

2005-2009

Growth Profitability

2010-

• Financial upswing• High returns • Sweden & Finland growth focus• Acquisition of Moderna

• Financial crisis taking effect• Significant price increases

Profitability, profitability and profitability

Combined ratio

82

86

90

94

98

102

2004 2005 2006 2007 2008 2009 2010 2011 Q1 12

If… Tryg Gjensidige

Premium growth in reporting currency (%)

-4

-1

2

5

8

11

14

2004 2005 2006 2007 2008 2009 2010 2011 Q1 12If Tryg Gjensidige Tryg excl. Moderna

6

CEO

Private Commercial Corporate SE/FI Claims Finance

6

New structure, financial targets, KPIs and incentives

FocusFrom 20 KPI’s to 5

Clear business area and responsibility

structureNew financial targets

Changed incentives for staff and management

Growth Profitability

2012

7

Customer satisfaction in Norway 2011

Private - retention rate

Strong customer satisfaction and high level of retention rates drive value creation

64

66

68

70

72

74

2009 2010 2011Tryg DnBNO R Gjens idige

IF Indus try

Customer satisfaction in Denmark 2011

71

7273

74

7576

77

2009 2010 2011Tryg C odan Topdanmark

A lm. Brand Industry

82%

84%

86%

88%

90%

92%

Q3 05

Q1 06

Q3 06

Q1 07

Q3 07

Q1 08

Q3 08

Q1 09

Q3 09

Q1 10

Q3 10

Q1 11

Q3 11

Q1 12

84%

85%

86%

87%

88%

89%

90%

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Commercial - retention rate

DK

DK

NO

NO

Source: EPSI.

Source: EPSI.

8

Size/influence

Premium increases

2009 2010 2011

Next Level Sourcing

2012

Premium increases

New Nordic Contents

2013 2014 2015

Premium increases

Cost reductions

Premium increases

Cost reductions

Next Level Sourcing

New House Insurance

New House InsuranceCommercial

initiatives

Commercialinitiatives

New value drivers

9

Strategic initiatives - Value creation in mature markets

Increased price differentiation

Commercial back on track

Sweden and Finland in balance

Expenses/claims reductions

10

Changes in the environment create need for new tariffs

98%98%

91%

86%

88%

90%

92%

94%

96%

98%

100%

2009 2010 2011

Claims ratio - House insurance in DK

8,000

8,500

9,000

9,500

10,000

10,500

11,000

11,500

12,000

12,500

Q4-20

07Q2-

2008

Q4-20

08Q2-

2009

Q4-20

09Q2-

2010

Q4-20

10Q2-

2011

Q4-20

11

0

5,000

10,000

15,000

20,000

25,000

2008 2009 2010 2011

Soaring cloudburst level in Denmark

Burglary trend in Danish market

99%

95%

98%

93%

94%

95%

96%

97%

98%

99%

100%

2009 2010 2011

Claims ratio - Contents insurance in DK

Increased price differentiation

11

Reversing a negative trend

Increased price for special itemsImplementation of geomatic data

Tryg was first mover with mileage

as part of the motor tariff in 2005.

It is time to be first mover again:

-New Nordic Contents insurance

represents a game changer.

Personal motor

Product examples

House

Private contents

Increased price differentiation

12

Turnaround of Commercial business

Combined and gross claims ratio

55

65

75

85

95

105

115

2009

2010

2011

2012

Commercial Combined ratio

Commercial premiums and earnings

11,572

445

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Premiums2009-11

Technicalresult 2009-

11

TargetTechnical result of DKK 400m per year

Commercial back on track

13

First time as an independent business area

Distribution

Risk selection

Tariffs

Automation

Commercial focus areas 2012 - 2015

Risk selectionSegmentation

New distribution strategyService setup

Sales process optimisationBack-office automation

Product clean-up

Tariff planTariff reviews

CEO

Private Commercial Corporate SE/FI Claims Finance

Previous structure

CEO

Direct Partner Corporate CB&BC Claims Finance

Selected price increases and pruning

New Structure

Private and Commercial

Denmark 2010 2011 2012

Workers’ comp. 4% 5% 7%

Property 4% 16% 12%

Norway 2010 2011 2012

Workers’ comp. 8% 5% 8%

Property 7% 4% 5%

Commercial back on track

14

0

100

200

300

400

500

600

Q1-

09Q

2-09

Q3-

09Q

4-09

Q1-

10Q

2-10

Q3-

10Q

4-10

Q1-

11Q

2-11

Q3-

11Q

4-11

Q1-

12

0

20

40

60

80

100

120

Private Atlantica Bilsport &MC

Productdirect

2010 2011

Combined ratio in Swedish business segments

Gross premium, SEKm

Challenging growth in Private Sweden

0100200300

400500600

2006

2007

2008

2009

2010

2011

E2012

Nordea Moderna

Reduction in Private sales, SEKm

Sweden in balance

15

12

5055

60

0

10

20

30

40

50

60

70

2009 2010 2011 2012

Cleaning up in unprofitable partner agreements

1

8

13

6

-1

1

3

5

7

9

11

13

15

House  & Contents Motor

2011 2012

Changed risk selection

Focus on profitability

Luxury car development

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

0.90%

1.00%

2007

0120

0704

2007

0720

0710

2008

0120

0804

2008

0720

0810

2009

0120

0904

2009

0720

0910

2010

0120

1004

2010

0720

1010

2012

05

0

100

200

300

400

500

600

700

Share of Portfolio No Luxury Cars

Sweden in balance

Lower level of discounts

Dis

count

in %

Num

ber

of

agre

emen

ts

16

Up for strategic review

Strategic review initiated in early 2012

• Divestment• Partnership• Run-off

Fennia 9.7

Tryg 2.2Other 17.6

If 23.9

Pohjola 28.6

Tapiola 18

Finland

EUR 3.7bn (Q4-11)

Finland in balance

17

Strategic initiatives - Value creation in mature markets

Increased price differentiation

Commercial back on track

Sweden and Finland in balance

Expenses / claims reductions

18

Key messages of today

18

Combined ratio target

Reserves and capital

Expenses

Claims costs

• Reduction in staff functions

• Optimise Business units

• Sourcing

19

Efficiency is a competitive parameter - Low Nordic expense ratios as entry barrier

Efficiency as a barrier to entry

10%

15%

20%

25%

30%

35%

Direct

Lin

eIn

sura

nce

RSA

Genera

li

Alli

anz

AXA

Zurich

Sam

po

Try

g N

O

Adm

iral

Try

g G

roup

Alm

. Bra

nd

Gje

nsi

dig

e

Topdanm

ark

Try

g D

K

The Nordic region is significantly more cost efficient

20

14%

15%

16%

17%

18%

19%

20%

21%

2006 2007 2008 2009 2010 2011

Tryg Gjensidige If Alm. Brand Topdanmark

Expense improvements among Nordic players

• Competitors have improved their expense ratio during the last 5 years.

• Tryg’s expense ratio has remained stable – but with growing nominal expenses.

Expense ratio development

Lack of expense focus

Competitive landscape drives expense focus

16.5%*

16.4%

15.0%

16.5%*

2015 targets

* Based on estimates from external analysts.

21

Premium growth has enabled Tryg to absorb growth in expenses

16,000

17,000

18,000

19,000

20,000

21,000

2007 2008 2009 2010 2011

• Almost unchanged gross expense ratio from 2007 to 2011 - but driven by premium increases.

Gross premiums earned

2,7002,8002,9003,0003,1003,2003,3003,4003,500

2007 2008 2009 2010 2011

Total insurance operating expenses

26% 26%

Unchanged expense ratio

22

Focus on expenses helped finance start-up in SE/FI - Focus behind the scenes

• Investing in SE/FI financed through reduction in FTE in DK/NO

• Strong expense level in DK

• Focus on reduction in expenses e.g. travel in the period

• No real structural cost cutting through the period

3,600

3,650

3,700

3,750

3,800

3,850

2007 2008 2009 2010 2011

0

100

200

300

400

500

600

700

800

Number of full-time employees

14.0

15.0

16.0

17.0

18.0

2004 2005 2006 2007 2008 2009 2010 20110

10

20

30

40

50

60

70

Expense ratio

Travel expenses

SE+FI

NO

DK

SE+FI

DK+NO

50

55

60

65

70

75

80

2007 2008 2009 2010 2011

23

Reductions in expenses and claims costs

• Savings programme will reduce costs by DKK 1bn (excluding inflation).• Split between DKK 400m on expenses and 600m on claims cost.

– After redistributing savings from Business Functions, the split between what effects the cost ratio and the claims ratio will be DKK 300m and DKK 700m.

600

100

300

ClaimsClaims

DKK 600m

Total reduction in expenses DKK 400m

Transfer to Claims / indirect claims

24

Saving initiatives per year 2013–2015

125

125

50

300

Total targetedsavings

2013 2014 2015

25

Major saving initiatives identified per area

Business areas• Efficiency improvements • Automation & optimisation• Benefits from Commercial Programme• Optimisation of distribution and sales channels

Business support functions

• Group Finance project • Other staff functions• Completion of IT projects and IT maintenance setup • Closing of offices

DKK 175m

DKK 125m

Total

26

2,500

2,700

2,900

3,100

3,300

3,500

3,700

3,900

2007 2008 2008 2010 2011 E2012 E2013 E2014 E2015

Flat nominal expense development to reach target of <15 in 15 - requires total savings of approx. DKK 300m in 2015

Forecasted development

DKK300m

Target <15% in 2015

No more 10 in 20

27

Staff functions increased by 25%

Number of full-time employees

700

750

800

850

900

950

1,000

2007 2008 2009 2010 2011

25%

28

Wage drift in Denmark and Norway is stalling

In %

5.95.5

4.6

3.12.5 2.5

7.6

3.94.5

3.9 4.33.5

0123456789

2008 2009 2010 2011 2012 2013

Denmark Norway

29

4. We can source better

1. We can reduce our service level in “lower value areas”11

3. We can realise synergies by centralising activities in DK

5. We can organise ourselves smarter

Optimisation of Group Finance

29

2. We can work more efficiently

30

The pilot: Group Finance

- 7%- 11%

75%

Budget 2012

20132012

-7%

2014 Target

-25%

The pilot and the following steps - Savings of 25% in expenses and 22% in FTEs

100%

30

Group Finance

Strategy&

CorporateIdentity

Group Communi-cation &

HR

Legal &Quality

InternalAudit

IT & Facilities

Next steps 2012-13

31

Number of full-time employees towards 2015 will decrease

Expected number of employees towards 2015

3,900

4,250

4,318

3,700

3,800

3,900

4,000

4,100

4,200

4,300

4,400

2011 Target 2012 2013 2014 Target 2015

Country Age distribution(% of employ. -> age)

DK51% -> 45 and more10% -> 60 and more

NO48% -> 35 – 499% -> 60 and more

FI48% -> 25 – 349% -> 50 and more

SE49% -> 25 – 398% -> 60 and more

Age distribution in Tryg

0

100

200

300

400

500

600

700

800

< 20 20 - 24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 > 64

Age interval

nu

mber

of

em

plo

yees

External turnover (voluntary)

2.0

4.0

6.0

8.0

10.0

12.0

2003 2004 2005 2006 2007 2008 2009 2010 2011

- 10%

32

Key messages of today

32

Combined ratio target

Reserves and capital

Expenses

Claims costs

- <15% in 2015- Reductions of DKK 300m and DKK 100m in claims

2,000

2,200

2,400

2,600

2,800

3,000

3,200

3,400

3,600

3,800

4,000

Expenses 2011 Inflation Savings Expenses 2015

Expenses

3,430 300

DKKm

33

Questions

and coffee break

34

Key messages of today

34

Combined ratio target

Reserves and capital

Expenses

Claims costs

- <15% in 2015- Reductions of DKK 300mand DKK 100m in claims

• Procurement

• Process improvements

• Sourcing

35

Claims area

High quality of claims handling

Low level of complaints

High customer satisfaction

Procurement power

Customer service/differentation

Control of suppliers

Processes and reduce FTEs

Maintain

Improve

36

0

10

20

30

40

50

60

70

Satisfied Very satisfied Satisfied Very satisfied

Would recommend Other

High customer satisfaction in claims handling and low level of complaints

0

5

10

15

20

25

Alka

Alm. B

rand

Codan GF IF

Topd

anm

ark

Tryg

Market share Share of claims complains*

*House, contents, motor etc. 2011Source: Ankenævnet for Forsikring

Claims complaints relative to market share

• 87% of DK customers are satisfied• 80% of NO customers are satisfied

• 70-72 % of very satisfied customers will recommend Tryg

22

65

19

61

72%

23%

70%

28%

Denmark Norway

Customer satisfaction 2011

37

Savings in claims - completion of NLS and other savings

100

250

250

100

700

0

100

200

300

400

500

600

700

800

Total savings onclaims

2012 2013 2014 2015

38

Examples of initiatives

Indirect

Expected saving: DKK 40m p.a.

Motor

Expected saving: DKK 130m p.a.

Building

Expected saving: DKK 180m p.a.

Health

Expected saving: DKK 40m p.a.

Contents

Expected saving: DKK 110m p.a.

3939

Sourcing Factory: eAuctions

Example of successful eAuction

eAuction and outcome

•Claim: 78 sqm wooden floor damaged by water

•5 participating suppliers

•Final price : DKK 73,000

•Savings achieved: DKK 25,000

Higher savings

Faster process

Lower sourcing expenses

More transparent

process

• More automated process• Fewer face-to-face meetings

• Higher visibility of offers

• More objectivity in selection

• Faster negotiation

• More structured process

• Higher number of bids

• Higher competitive pressure

40

Time-lapsed recording of live eAuction

41

Examples of initiatives

Indirect

Expected saving: DKK 40m p.a.

Motor

Expected saving: DKK 130m p.a.

Building

Expected saving: DKK 180m p.a.

Health

Expected saving: DKK 40m p.a.

Contents

Expected saving: DKK 110m p.a.

42

Car crash repair – spendings of approx. DKK 3bn

27

8

65

Crash repairGlass repair Total loss

Distribution of spend in motor hull

Percent

43

Film clip – Handling motor claims

http://www.youtube.com/watch?v=pVfzRTResLg&feature=youtu.be

44

Three beneficiaries in motor claims handling

PartnerBenefits from speedy processes and

higher volume. Payment is quick with incentives for high quality.

TrygBenefits from increased quality, customer

satisfaction and documented lower costs than market.

CustomerBenefits from fast response, high quality and benefits such as courtesy car, cleaning of car

and extended warranty on repair.

45

Repair costs in Denmark are gaining ground

Source: Autotaks statistics.

Development in average repair cost (moving average) Cars and vans excl. glass Other

Development in average repair cost (moving average) Cars and vans excl. glass

10,000

10,200

10,400

10,600

10,800

11,000

11,200

Janu

ary '11

Februa

ry '11

March '

11

April '1

1

May '1

1

June

'11

July

'11Aug

ust '1

1Sep

tembe

r '11

Octobe

r '11

Novembe

r '11

Decembe

r '11

Janu

ary '12

Februa

ry '12

March '

12

April '1

2

May '1

2

In DKK

Tryg

Other

46

Key messages of today

46

Combined ratio target

Reserves and capital

Expenses

Claims costs

- <15% in 2015- Reductions of DKK 300m and DKK 100m in claims

- Reductions of DKK 700m- Claims ratio, net <75%

13,000

13,500

14,000

14,500

15,000

15,500

16,000

16,500

Claims level2011

Inflation Changefreqency/UW

Savings Claims 2015

Claims cost

15,000

750? 700

DKKm

47

Questions

48

Key messages of today

48

Combined ratio target

Reserves and capital

Expenses

Claims costs

- <15% in 2015- Reductions of DKK 300m and DKK 100m in claims

- Reductions of DKK 700m- Claims ratio, net <75%

49

Premium provisions

Case reserves

Technical provisions

0

5

10

15

20

25

30

35

40

Q1 2012

KPMG loss reserve review confirms Tryg’s own view

Status Q1 2012:

• Total reserves of DKK 36.4bn

• Loss reserves DKK 27bn

• Increased duration in Denmark ~ 4 years

• Duration of 2.8 years in Norway

• Premium reserves DKK 9.4bn

Reserves consist to a great extent of Bodily Injury related claims

28%

39%

14%9%11%

72%

Property & other short tail

Workers' comp

Motor TPL

Accident

Composition of provisions

BI – duration >4 years

Other – duration ~1 year

4.9% 4.7%

3.8%

4.6% 4.6%4.2%

2007 2008 2009 2010 2011 Q1 12

Stable run-off development

Effect on combined ratio

MarginActual year

Run-off

50

Gross earned premiums

15,000

16,000

17,000

18,000

19,000

20,000

21,000

2005 2006 2007 2008 2009 2010 2011

Growth consumes capital

Capital

8,000

9,000

10,000

11,000

2005 2006 2007 2008 2009 2010 2011

DKKm

DKKm

51

Payout model - transparent but unstable

Shareholder remuneration

21

33

17

6.54

6.52

15.5

21

12.5

0

5

10

15

20

25

30

35

40

2005 2006 2007 2008 2009 2010 2011

DK

K p

er

sh

are

Cash dividend Share buy back

• Tryg’s payout model has been transparent, but has also been vulnerable to:

• Fluctuations in technical and investment result

• Change in interest rates (effect on Norwegian pension scheme)

Average2006-2011

Payout DKK 1.3bnPayout ratio 76%Per share DKK 20

52

Key messages of today

52

Combined ratio target

Reserves and capital

Expenses

Claims costs

- <15% in 2015- Reductions of DKK 300m and DKK 100m in claims

- Reductions of DKK 700m- Claims ratio, net <75%

External review confirmed

53

Questions

54

Key messages of today

54

Combined ratio target

Reserves and capital

Expenses

Claims costs

- <15% in 2015- Reductions of DKK 300m and DKK 100m in claims

- Reductions of DKK 700m- Claims ratio, net <75%

External review confirmed

55

Combined ratio target

CR stable below 90

from Q3 2013

ROE 20%80

82

84

86

88

90

92

CR ta

rget

Expe

nse/

claim

s in

itiat

ives

Clai

ms

infla

tion

abov

e CP

I

Wea

ther

and

larg

e cla

ims

Legi

slatio

n et

c (W

C, ta

xes.

.)

Inte

rest

CR ta

rget

< 90< 90

Uncertainty

0%

10%

20%

30%

40%

2003

2004

2005

2006

2007

2008

2009

2010

2011

Q1 2

012

2013

2014

ROE target

ROE after tax

Combined ratio

56

Key messages of today

56

Combined ratio target

Reserves and capital

Expenses

Claims costs

- <15% in 2015- Reductions of DKK 300m and DKK 100m in claims

- Reductions of DKK 700m- Claims ratio, net <75%

External review confirmed

Combined ratio at 90 or below from Q3 2013

ROE of 20%

57

Further informationVisit tryg.comFollow us on twitter.com/TrygIR

Questions