Annual report 2023
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 2023
Tryg at a glance
Business areas
Income overview
Introduction by Chairman and Group CEO
Events in 2023
Financial outlook
Targets and strategy 2024
Strategic initiatives
Business initiatives
Tryg’s results
Private
Commercial
Corporate
Investment activities
Capital and risk management
Tax overview
Sustainability statement
Investor information
Corporate governance
Supervisory Board
Executive Board
Financial statements
Financial statements
Statement by the Supervisory Board and the
Executive Board
Independent Auditor’s Reports
Group chart
Glossary
3
4
5
6
7
9
11
14
16
17
19
23
25
27
29
32
36
37
84
86
89
93
95
96
97
187
188
Management’s review - Contents
04
Tryg at
a glance
Shareholder renumeration
(DKK per share)
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 renumeration
(Dividend per share and total share buy-back)
*2021 DPS impacted by the higher number of shares at 653m (301m
end of 2020) following the DKK 37bn rights issue to fund the
acquisition of RSA Scandinavia
84
Investor information
07
Introduction by
Chairman and
Group CEO
11
Financial
outlook
Annual report 2023 | Tryg A/S | 2
6.66.87.04.36.37.41.7Ordinary dividendExtraordinary dividend2018201920202021*202220235,0001,000Buy-back DKKm2022/20232023/2024 Highlights 2023
Financial 2023
Financial Q4 2023
Management’s review - Contents
4.8%
*
Revenue growth
in local currencies
13.4
Expense ratio
82.8
Combined Ratio
2022
*
: 13.6
2022
*
: 83.2
6.3%
Revenue growth
in local currencies
0.5
Group underlying claims
ratio improvements
percentage points
a
: 0.8
Q4 2022
13.5
Expense ratio
Q4 2022: 13.8
6,399m
Insurance service result
(DKK)
2022
*
: 6,292m
631m
5,029m
Total investment return
(DKK)
Profit before tax
(DKK)
82.4
Combined Ratio
1,654m
Insurance service result
(DKK)
146m
Total investment return
(DKK)
2022: -441m
2022: 3,051m
Q4 2022: 84.0
Q4 2022: 1,472m
Q4 2022: 549m
7.4
197
1,389m
1.85
197
Dividend per share (DKK)
Solvency ratio
Profit before tax (DKK)
Dividend per share (DKK)
Solvency ratio
2022: 6.3
2022: 201
Q4 2022: 1,377m
Q4 2022: 1.55
Q4 2022: 201
*) FY 2023 insurance related figures are measured against comparative proforma 2022 figures as the RSA Scandinavia business was fully consolidated only from Q2 2022
a) Underlying claims ratio improvement Q4 2022 is measured against proforma 2021 figures
Annual report 2023 | Tryg A/S | 3
Tryg at a glance
As the world changes, we
make it easier to be tryg*
Leading market position
More than 5 million customers
Tryg is the leading non-life insurer in
Scandinavia. We are the largest player in
Denmark and the third-largest in Sweden, and
fourth-largest company in Norway.
Our 6,800 employees provide peace of mind
for over 5 million customers and handle
approximately 1.7 million claims on a yearly
basis.
Attractive
dividend policy
Tryg aims to distribute a
stable, nominal increase
in dividends and to pay
out 60-90% of operating
earnings.
Balanced
geographical
footprint, revenue
split
Trygheds-
Gruppen
TryghedsGruppen owns
47.5%** of Tryg and
contributes to projects that
create peace of mind via
TrygFonden. In 2023, Tryg
Fonden has contributed up
to DKK 650m and
TryghedsGruppen has paid
a member bonus of 950m
to Danish customers in
Tryg.
Read more about our history at tryg.com
* ‘Tryg’ means feeling protected and cared for in Danish.
** Calculated excluding Tryg's own shares
Management’s review - Contents
4
1
3
Market position
Market position
Market position
13.5%
Market share
22.5% 16.8%
Market share
Market share
Annual report 2023 | Tryg A/S | 4
Business areas
Management’s review - Contents
Private
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,
motorcycle, pet and health.
Commercial
Corporate
Commercial provides insurance products to
small and medium-sized commercial customers
in Denmark, Sweden and Norway. Commercial
offers a range of insurance products including
motor, property, liability, workers’
compensation, travel and health.
Corporate provides insurance products to large
corporate customers in Denmark, Sweden and
Norway. Corporate offers a range of insurance
products including motor, property, liability,
workers’ compensation, travel and health.
65%
of insurance revenue
25%
of insurance revenue
Distribution channels
Distribution channels
Own sales agents • Call centres • Real
estate agents • Online • Bancassurance •
Car dealers • Franchises • Partner
Call centres • Online • Bancassurance •
Own sales agents • Franchises •
Partner
10%
of insurance revenue
Distribution channels
Own sales agents •
Insurance brokers
Brands
Brands
Brands
Annual report 2023 | Tryg A/S | 5
Income overview
Management’s review - Contents
DKKm
All figures restated to IFRS 17
Insurance revenue
Gross claims
Total insurance operating costs
Insurance service expense
Profit/loss on gross business
Net expense from reinsurance contracts
Insurance service result
Investment return a)
Other income and costs
Profit/loss before tax
Tax
Profit/loss
Run-off gains/losses, net of reinsurance
Key ratios
Shareholders' equity
Return on equity after tax (%)
Return on Own Funds (%)
Return on Tangible Equity (%)
Number of shares 31 December (1,000)
Earnings per share (DKK)
Operating earnings per share (DKK) b)
Ordinary dividend per share (DKK)
Extraordinary dividend per share (DKK)
Revenue growth in local currencies (%) c)
Gross claims ratio
Net reinsurance ratio
Claims ratio, net of reinsurance
Gross expense ratio
Combined ratio
Run-off, net of reinsurance (%)
Large claims, net of reinsurance (%)
Weather claims, net of reinsurance (%)
Discounting (%)
COVID-19 claims, net of reinsurance (%)
Combined ratio by business areas
Private
Commercial
Corporate
Q4
2023
9,396
-6,241
-1,272
-7,513
1,883
-229
1,654
146
-411
1,389
-258
1,129
281
40,351
11.0
30.3
42.1
617,455
1.82
2.12
1.85
6.3
66.4
2.4
68.9
13.5
82.4
-3.0
1.5
3.4
2.6
n/a
84.0
73.1
95.4
Q4
2022
9,220
-6,361
-1,269
-7,630
1,590
-118
1,472
549
-644
1,377
-296
1,081
192
42,504
9.5
27.0
30.8
633,710
1.69
2.00
1.60
4.0
69.0
1.3
70.3
13.8
84.0
-2.1
3.1
2.2
2.9
n/a
82.9
82.0
96.6
2022
2023
pro-forma
2022
2021
2020
2019
37,135
-25,270
-4,959
-30,229
6,906
-507
6,399
631
-2,001
5,029
-1,178
3,851
1,099
40,351
9.4
24.8
34.3
617,455
6.08
7.26
7.40
4.8
68.0
1.4
69.4
13.4
82.8
-3.0
2.7
3.4
3.0
n/a
84.5
78.1
83.2
37,379
-25,407
-5,077
-30,484
6,897
-606
6,292
1,115
68.0
1.6
69.6
13.6
83.2
-3.0
3.3
1.7
2.1
n/a
82.3
81.9
92.3
34,814
-23,904
-4,701
-28,605
6,212
-576
5,636
-441
-2,143
3,051
-804
2,247
759
42,504
4.9
13.0
7.8
633,710
3.47
4.43
6.29
5.9
68.7
1.7
70.3
13.5
83.8
-2.2
3.3
1.7
2.1
n/a
82.9
82.7
92.3
25,369
-17,988
-3,316
-21,304
4,065
-727
3,338
1,369
-752
3,956
-795
3,158
435
49,008
7.8
23.0
16.1
653,447
5.51
5.70
4.28
6.4
70.9
2.9
73.8
13.1
86.8
-1.7
1.7
1.8
0.4
-0.5
84.1
88.4
97.4
23,442
-16,150
-3,126
-19,276
4,167
-480
3,687
241
-387
3,541
-768
2,773
1,194
12,264
22.5
32.6
55.4
301,750
9.19
9.54
7.00
7.4
68.9
2.0
70.9
13.3
84.3
-5.1
2.1
1.6
0.2
-0.8
83.9
82.9
87.6
22,405
-15,370
-3,004
-18,375
4,030
-538
3,492
441
-305
3,628
-783
2,843
1,332
12,085
24.6
35.1
62.5
301,700
9.42
9.82
6.80
1.65
18.6
68.6
2.4
71.0
13.4
84.4
-5.9
2.0
1.9
0.7
n/a
83.8
82.5
89.4
a) Income from RSA Scandinavia includes net effect from demerger and sale of Codan DK for 01/06-2021 to 31/03-2022
b) Adjusted for depreciation on intangible assets related to Brands and Customer relations after tax
c) Insurance revenue growth in FY 2023 is measured against comparative proforma 2022 figures
Annual report 2023 | Tryg A/S | 6
Solid results despite
a year with a
challenging external
environment and
numerous weather
events, Tryg
delivered further
dividend growth and
announced a new
buyback
programme
Management’s review - Contents
Annual report 2023 | Tryg A/S | 7
A year with a challenging external environment
2023 was a year characterised by challenging
geopolitical developments and a difficult
macroeconomic environment. Inflation levels
remained very high in the first part of the year
only to fall somewhat during the autumn, risky
assets displayed volatility, and the Swedish and
Norwegian kroner fell to all-time lows against
the Danish kroner. The summer of 2023 will be
remembered for the very high amount of
weather claims, with storms in Scandinavia and
multiple weather events in Southern Europe that
hit our customers. Following the complete re-
opening of societies (after the Covid-19
outbreak), our customers started travelling
more frequently and to more distant
destinations, this also impacted our financial
results in the first part of 2023.
New CEO and organisational changes
Johan Kirstein Brammer took over as the new
CEO in June 2023, taking the helm from Morten
Hübbe, who left Tryg after 20 years as CEO and
previously CFO. Johan Kirstein Brammer has
been the CCO and a member of the Executive
Board of Tryg for four years. In September, Tryg
announced some strategic and organisational
changes. Tryg decided to merge its Commercial
and Corporate Lines in Denmark and Norway,
aligning the organisations to the successful
operating model towards Commercial
customers that Trygg-Hansa has adopted for
some time. The merging of the Commercial &
Corporate segments in Denmark and Norway is
also in line with Tryg's strategy to increase focus
on SME customers and reducing exposure
towards large non-Scandinavian customers.
With synergies from the RSA Scandinavia
integration being delivered slightly ahead of
schedule, it was a natural next step to align the
organisational design of the Group’s Swedish
business, Trygg-Hansa, with the organisational
structure of the Tryg Group, where the heads of
the business areas report directly to the
Executive Board. Following these changes,
approximately 4% of employees have been laid
off. The organisational changes reinforce Tryg's
commitment to deliver on the 2024 targets in a
challenging macroeconomic environment.
Improved customer satisfaction
Customer satisfaction remains one of the key
parameters for Tryg. It is noteworthy to see
customer satisfaction improving from 85 in
2022 to 86 in 2023 despite a year with
numerous weather events affecting Tryg's
customers.
Growth primarily driven by price adjustments
to mitigate inflation
Tryg reported good growth in the Private and
Commercial business of approximately 5%.
Growth was primarily driven by price
adjustments to offset the high level of claims
inflation. In the Corporate business there was an
reduction in revenues, driven by initiatives to
rebalance the portfolio towards smaller local
customers in our core market and reduce
exposure to US liability and to property outside
the Nordics.
Weather-related claims at a high level
2023 was impacted by many different weather
events. Across Scandinavia, weather events
primarily related to heavy rain, flooding and
storms. Weather events in Southern Europe also
impacted Tryg's result. As an example, hail
storms in Italy caused extensive damage to
approximately 400 cars of Danish customers. It
is important to stress that weather claims levels
in 2023 are not deemed "the new normal", and
the DKK 800m annual expectation for weather
claims stands. However, as the largest insurance
company in Scandinavia, Tryg wants to support
society in adapting to climate change and give
customers peace of mind.
Solid results and improved underlying
development
Tryg reported an improved underlying
performance in 2023 driven primarily by the
realisation of the RSA Scandinavia synergies and
continued profitability initiatives in the
Commercial and Corporate businesses.
Inflation remained at a high level, especially in
the first half of 2023, but has been mitigated via
strong procurement agreements and various
price adjustments across the portfolio.
Strong focus on full integration of the acquired
RSA Scandinavia businesses
Tryg is very focused on delivering the synergies
of DKK 900m in 2024 as communicated in
connection with the acquisition of the Swedish
and Norwegian business of RSA Scandinavia. At
the end of 2023, Tryg realised accumulated
synergies of DKK 711m and is well on track to
deliver the total synergies of DKK 900m in 2024.
Sharp currency devaluations (NOK & SEK
against DKK) have caused some headwinds, as
most of the synergies come from Norway &
Sweden, but the overall target is firmly
maintained.
Increased dividend and new buybacks
On 15 June, Tryg concluded the DKK 5 billion
share buyback programme that was initiated in
June 2022 as a result of the sale of Codan
Denmark to Alm. Brand. Tryg started a new
buyback programme of DKK 1 billion following
the publication of the Q3 results. This
programme is set to end no later than 31
January 2024. Tryg has paid a quarterly
dividend for all quarters of DKK 1.85 amounting
to DKK 7.40 for 2023. The buyback
programmes and increasing dividend illustrate
Tryg’s strong commitment to shareholder
remuneration.
Management’s review - Contents
Adapting products to climate change
As of 2023, Tryg offers customers in Denmark,
Norway and Sweden insurance to help them
adapt to climate change. Specifically, house and
property insurance have been EU Taxonomy-
aligned to ensure that customers are covered
for climate-related damage and are incentivised
to take measures to prevent climate-related
damage. Predicting risk is an important part of
the business of insurance companies, and Tryg
is making significant efforts to become even
better at understanding and predicting future
extreme climate and weather-related events for
the benefit of society and Tryg's customers.
Thanks to all employees
2023 has been a very busy year for Tryg
employees. It was a year with continued work
on the integration of RSA’s Scandinavia
activities and a year where we helped many of
our customers with claims stemming from to
weather-related events. The Supervisory Board
and the Executive Board would like to thank all
employees for their great efforts.
JUKKA PERTOLA
Chairman
JOHAN KIRSTEIN BRAMMER
Group CEO
Annual report 2023 | Tryg A/S | 8
Management’s review - Contents
Events in 2023
Group
Johan Kirstein Brammer appointed new Group
Chief Executive Officer (CEO)
Morten Hübbe, Executive Board member for more
than 20 years, with 12 years as Group CEO, stepped
down in June. Johan Kirstein Brammer was
appointed as the new Tryg Group CEO. Subsequent
to the appointment of the new Group CEO, Tryg also
announced the appointment of 2 new members to
the Executive Board to ensure the right mix of
competences going forward. Mikael Kärrsten has
been appointed Chief Technical Officer (CTO) and
Alexandra Bastkær Winther has been appointed
Chief Commercial Officer (CCO), both are internal
promotions.
Strategic and organisational changes
Tryg announced a number of strategic and structural
changes that will enhance the company's resilience
and competitiveness in both the short and long term
while building a strong foundation for the next
strategy period.
Drawing on inspiration from Trygg-Hansa's
successful operating model towards Commercial
Customers, Tryg merged its Commercial and
Corporate Lines in Denmark and Norway.
Furthermore, a new national management team,
with joint responsibility for operations in Trygg-
Hansa, was formed. The operating model in Trygg-
Hansa is now similar to the rest of Tryg, moving
mandates and financial responsibility even closer to
the business and thus closer to customers. To ensure
that size and scale are used in the optimal way,
around 250-270 positions were decommissioned,
which is equivalent to approximately 4% of the total
workforce.
New Chief Financial Officer (CFO)
Tryg's Senior Vice President of Group Finance for the
past 5 years, Allan Kragh Thaysen, was appointed as
the new Group Chief Financial Officer and member
of the Executive Board.
The storm 'Hans'
2023 was characterised by numerous unrelated
weather events throughout Scandinavia, but Storm
Hans was the single most devastating weather event
in a decade, causing havoc across several countries.
The storm caused billions in damages and led to
thousands having to be evacuated from their homes.
Tryg responded immediately to the emergency and
reached out to customers who were affected by the
storm. Tryg's customers across all countries were
extremely satisfied with the aid and guidance they
received in the aftermath of the storm.
Rebalancing of Corporate portfolio
Corporate reached its CMD target of reducing
exposure one year earlier than anticipated, as the
business area managed to reduce its exposure to
international property by 50% and reduced US
liabilities by 70%. It is worth mentioning that Tryg’s
exposure to these segments was already limited
prior to the CMD.
Denmark Embracing hidden disabilities - creating
peace-of-mind for employees and customers
Tryg joined the international Sunflower programme
- making invisible disabilities visible –to ensure
necessary considerations are shown. Internally,
sunflower lanyards are available for employees and
guests who wish to visualise special attention or
support of the programme. Externally, a Sunflower
telephone line is available for Tryg's customers to
meet the needs of those with invisible disabilities.
SMART repair benefits customers and the
environment
Tryg initiated a SMART repair concept - Small to
Medium Auto Repair Technology. The new initiative
reduces the claims handling process from 3-5 days
to 1 day. With SMART repair, small dents, paintwork
scratches and other minor cosmetic claims are
repaired at one location in one day instead of several
locations. By minimising the repair process, Tryg
reduces the CO2 footprint and improves the
customer experience.
Tryg as you are
Tryg partnered with Copenhagen Pride (and Bergen
Pride) and partook in their respective Pride parades.
Tryg arranged several internal events focusing on
being "Tryg as you are".
TryghedsGruppen’s member bonus
For the eighth consecutive year, TryghedsGruppen,
Tryg’s largest shareholder, paid out a member bonus
of DKK 950m, equivalent to 6% of premiums paid for
2022. The bonus was paid to 1.5m Tryg customers in
Denmark, amounting to every fourth Dane.
Annual report 2023 | Tryg A/S | 9
Management’s review - Contents
Events in 2023
Norway
Excellent claims handling
Tryg renewed its claims processing system, ensuring
that customer claims are now resolved in a faster
and more efficient manner. The claims process has
been digitised, providing an improved and more
customer-friendly experience. One third of the
claims are processed automatically, with settlement
in minutes. The system has been developed in
collaboration with the American company
Guidewire, propelling Tryg into an absolute excellent
position in terms of claims management.
Sustainable collaboration
The Environmental Certification Foundation
(Miljøfyrtårn) and Tryg have entered a collaboration
to assist small and medium-sized enterprises with
their sustainability efforts. The collaboration
provides Tryg's customers with tools and expertise
they can use in their sustainability initiatives. This
collaboration is the first of its kind, with the goal of
encouraging Norwegian small businesses to actively
reduce their impact on the climate and the
environment through an environmental certification
process.
Codan conversion completed
In 2023, Tryg completed the conversion of Codan
Norway's portfolio onto Tryg's books. The
completion of the conversion also enabled Tryg to
terminate various Codan Norway IT contracts
related to processes and systems, which is in line
with the synergy plan.
Sweden
First full year as one Trygg-Hansa
2023 was the first full year as one Trygg-Hansa after
the merger between Trygg-Hansa and Moderna
Försäkringar. The main focus of the year was
integration, both of processes and systems and,
more importantly, of people and culture. Two of the
highlights worth mentioning are the opening of the
new office in Malmö, and cross-selling and upselling
in the Swedish business
Making life easier for our clients
Several new initiatives were launched supporting
our mission of making life easier for customers.
Trygg-Hansa launched the option for customers to
use a digital power of attorney and started using the
digital mailbox, thus reducing costs as well as
environmental impact.
Strong and lasting partnerships
Trygg-Hansa and SEB's long and successful
partnership was renewed. The collaboration gives
Trygg-Hansa the opportunity to offer insurance
products to SEB's customers. The motor segment
was further strengthened by several new
partnerships, among them Opel, NIO and other
partnerships supporting a number of other segments
as well.
Annual report 2023 | Tryg A/S | 10
Financial outlook
Global geopolitical tensions continued to run high in 2023, causing
macroeconomic volatility. Inflation levels remained elevated in the
first half of 2023, but declined in most advanced economies in the
second half of the year. The Scandinavian economies continued to
perform well, while the non-life insurance markets remained broadly
stable with all listed players adjusting prices to protect margins and
fight inflationary pressures.
Global geopolitical tensions remained high in
2023 on multiple fronts: Russia's invasion of
Ukraine, US/China tensions on the future of
Taiwan, Israel and Palestine at war, and a
number of other flashpoints around the world.
These geopolitical tensions are reflected in a
complex macroeconomic environment
characterised by persistently high inflation and
high interest rates, especially in the first half of
the year. Inflation levels (as measured by CPI)
and general inflation expectations eased in the
last few months of 2023, driving interest rates
slightly lower. Financial markets have been
volatile with risk assets coming under pressure,
especially during the summer and early autumn.
Most assets classes, with the noticeable
exception of real estate, generally produced a
good return during the year. Equities moved
higher, but returns were driven by the
performances of certain specific sectors/
companies.
Despite the complex macroeconomic
environment, Scandinavian countries continue
to perform relatively well. A high level of trust in
public authorities, solid overall public finances
with low levels of Government debt and
relatively low unemployment rates remain
strong competitive advantages, especially
during periods of volatility.
Scandinavian non-life insurance markets remain
generally stable. The region is characterised by
relatively high product penetration, with ratios
of non-life premiums as a percentage of GDP
being some of the highest in the world. Product
offerings are broader and more diverse
compared to larger European countries. Motor,
Property, and Accident & Health are the most
important business lines, but smaller products
like contents insurance and travel insurance are
also widely sold. Households usually cover their
insurance needs well and trust in insurance
companies is generally high. Retention levels are
very high in Scandinavia compared to
everywhere else in the world. This is a key
profitability driver, as it helps insurers keep their
overall expenses low. Retention rates hover
around 90% in the Private and Commercial
(SMEs) segments, which together represent
close to 90% of Tryg's total business. Direct
distribution also contributes significantly to the
very efficient business model. The expense ratio
was 13.4% (13.6%) at the end of 2023.
Management’s review - Contents
Property insurance, inflation (index)
Motor insurance, inflation (index)
Annual report 2023 | Tryg A/S | 11
DKNOSE2020202120222023100110120DKNOSE2020202120222023100110120 Tryg's reserves position remains strong. Tryg's
systematic claims reserving approach still
includes a margin of approximately 3% on best
estimates. Run-off gains are expected to be
between 3% and 5% in 2024 as disclosed at the
November 2021 CMD (Capital Markets Day).
Weather claims and large claims (both on a net
basis) are expected to be DKK 800m annualised
post the RSA Scandinavia integration. This is
meant as a normal annualised guidance, there
will always be fluctuations, positive and
negative, around this level.
Investment activities (DKK 64bn as per end of
2023) are managed taking into consideration
the specifics of the non-life insurance business.
Invested assets are split into a match portfolio
(DKK 46bn) and a free portfolio (DKK 18bn). The
match portfolio is primarily made up of
Scandinavian covered bonds (rated AAA)
matching the insurance liabilities. The objective
is for the return on the portfolio to be as close as
possible to zero, as capital gains or losses
driven by interest rate movements should
result in similar, but opposite, movements
(gains or losses) on assets and liabilities. The
free portfolio is a diversified mix of assets
where the goal is to seek the best risk-adjusted
return. Riskier asset classes like equities, real
estate and corporate bonds should offer higher
normalised returns compared to safer assets
classes like covered bonds.
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. The targets have been
updated following the introduction of a new
accounting standard, IFRS 17, at the start of
2023. Tryg is targeting an insurance service
result between DKK 7.2 and 7.6bn, driven by a
combined ratio at or below 82 and an expense
ratio at approximately 13.5%.
Management’s review - Contents
Large claims, net of reinsurance (DKKm)
Tryg stand-alone
Enlarged
Tryg b)
Weather claims, net of reinsurance (DKKm)a)
Financial targets 2024
Tryg stand-alone
Enlarged
Tryg b)
7.2-7.6bn
Insurance service
result (DKK)
≤82.0
Combined
ratio
13.5%
Expense ratio
(reaffirmed)
≥25.0%
Return on
own funds
Customer targets
88
Customer
satisfaction
20-25,000
Sustainability & ESG
(tonnes CO2e reduction)
≥40%
Digitalisation
(% growth in value-
creating actions
upon login)
a) Weather claims include storms and cloudbursts, and normal weather events
b) Tryg and RSA Scandinavia consolidated
The overall insurance service result is
underpinned by DKK 900m in synergies from
the Codan Norway and Trygg-Hansa acquisition,
these are targeted to be DKK 650m in 2023
(DKK 350m in 2022) and DKK 900m in 2024.
Tryg is also targeting a ROOF (Return on Own
Funds) at or above 25%. The ROOF target has
replaced the old ROE target, as it is more
meaningful in a Solvency II world and more
appropriate following a very large rights issue to
fund the RSA Scandinavia acquisition.
Interest rates are approximately 200 basis
points higher compared to the 2021 Capital
Markets Day period, which has a clear positive
impact on Tryg earnings, but on the contrary
currencies (SEK and NOK) have moved
unfavourably. Tryg is maintaining all financial
targets for 2024 including the insurance service
result between DKK 7.2-7.6bn and the
combined ratio target at or below 82.
Tryg continues to expect positive top-line
growth in 2024, primarily driven by the Private
and Commercial segments, while the Corporate
Annual report 2023 | Tryg A/S | 12
Large claims, net of reinsuranceTryg stand-alone, guidanceEnlarged Tryg, guidance20092010201120122013201420152016201720182019202020212022202305001,0001,500Weather claims, net of reinsuranceTryg stand-alone, guidanceEnlarged Tryg, guidance20092010201120122013201420152016201720182019202020212022202305001,0001,500 segment is expected to remain broadly stable.
Most growth currently stems from price
adjustments enacted to protect margins during
a period of relatively high inflation.
The overall tax rate for full-year 2024 is
expected to be approximately 24%. Higher
Swedish earnings in the enlarged Group will help
lower the tax rate due to a lower corporate tax
rate in Sweden, while a new Danish financial tax
(so-called "Arne skat") will tend to increase the
corporate tax rate. The investment result may
also weigh positively or negatively on the tax
rate.
IFRS 17 came into effect on 1 January 2023
A new accounting standard for the insurance
sector, IFRS 17, came into effect on 1 January
2023. The new accounting standard had very
limited implications for Tryg, as the company
had been reporting the entire balance sheet at
mark to market for many years.
Tryg published an Investor Update in March
2023 on the introduction of IFRS 17 containing
extensive information and comparison figures
for the Group and various business segments.
The update can be found here.
Management’s review - Contents
Annual report 2023 | Tryg A/S | 13
Targets and
strategy 2024
Tryg hosted a Capital Markets Day on 16 November 2021,
unveiling its 2024 financial and strategic targets.
Financial targets
Tryg hosted a Capital Markets Day in November
2021 when the 2024 financial targets were
published. Tryg targets an insurance service
result of between DKK 7.0bn and 7.4bn, driven
by a combined ratio at or below 82 and an
expense ratio around 14% under the IFRS 4
accounting standard. The new accounting
standard, IFRS 17, came into effect in 2023 and
resulted in Tryg revising its financial targets for
2024. It now targets an insurance service result
of between DKK 7.2bn and 7.6bn, driven by a
reiterated combined ratio at or below 82 and a
revised expense ratio of around 13.5%. In
addition to the three financial targets, Tryg
reiterates the profitability target, return on own
funds (ROOF), which is set at or above 25% by
2024.
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 claims
handling and relation processes. In 2023, Tryg
reported a customer satisfaction score of 86 (on
a scale from 0-100), and the target is to reach 88
by 2024.
Management’s review - Contents
Our purpose
As the world changes,
we make it easier to be tryg*
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
as Tryg’s stakeholders. Via
TryghedsGruppen’s 47,5%**
ownership of Tryg, part of
the company’s profit is
returned to customers, who
are also members of
TryghedsGruppen. Tryg’s
purpose applies to all
stakeholders – our
customers, our employees
and our shareholders.
* ‘Tryg’ means feeling protected and cared for in Danish.
** Calculated excluding Tryg's own shares
Annual report 2023 | Tryg A/S | 14
As the world changes,
we make it easier to be tryg*
Secondly, Tryg has set a target to grow ‘value-
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
2023, Tryg increased the level of value-creating
actions by 53% exceeding the target. This was
achieved by, for example, using “My page” for all
communication instead of emails and also as a
result of customers preferring to use self-service
to a greater extent.
Tryg also introduced a new target related to
sustainability. By 2024, Tryg aims to avoid
carbon emissions by 20,000-25,000 tonnes in
claims handling, equivalent to approximately
1,000 annual household emissions by focusing
on repairs, reuse and recycling. Sustainable
claims handling, with initiatives within motor,
property and content claims, etc., is expected to
be the main driver for reaching the sustainability
target. In 2023, Tryg reduced its carbon
emissions by 21,208 tonnes through the above-
mentioned initiatives. Read more about Tryg’s
latest sustainability initiatives on page 37.
Management’s review - Contents
Tryg 2024 financial targets
Full speed ahead in
a successful core
Change the
way to win in B2B
Shape
the future
DKK ~1,050m
increase in insurance
service result
DKK ~600m
increase in insurance
service result
DKK ~1.5bn premiums
in 2024 across
product types
Trygg-Hansa
and Codan NO
synergies
DKK ~900m in
synergies
Advanced approach
to claims
Grow among smaller SMEs
in Commercial
Expand the market
of today
Leverage scale to
realise cost synergies
Sales and customer
excellence
Improve profitability
in Corporate
Build the market of
tomorrow
Share best practices
to realise commercial
synergies
Customer experience
Sustainability & ESG
Key enablers
Data and analytics
IT capabilities
HR - people, organisation
and culture
* As presented as the Capital Markets Day 2021
Annual report 2023 | Tryg A/S | 15
utilisation of lowest price contracts and an
intensified focus on repairing plastic and glass
car parts in Sweden. Synergies of DKK 88m
were linked to claims costs, supported by
natural attrition and the ongoing effect of
improving processes in areas like fraud and
recourse. Synergies of DKK 127m were
supported by commercial initiatives driven by
the cross-selling of Moderna’s niche products to
Trygg-Hansa’s customers and the upselling of
Trygg-Hansa’s products and coverages to
Moderna’s customers. Synergies were
negatively impacted by weaker currencies,
especially the SEK.
Strategic initiatives
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
insurance service 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. To
further support this strategic pillar, DKK ~400m
will be reached through sales and customer
excellence, including partnerships as lead
generators, cross and upselling as well as pricing
and analytics.
Change the way to win in B2B*
This strategic pillar aims to increase the
insurance service result by DKK ~600m in 2024.
Small customers 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)
for Commercial 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
segmentation 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 improvement in the Group's
underlying claims ratio both via a continued
focus on growing the SME segment and by
rebalancing and reducing risk exposure for
international property and US liability.
Shape the future
This strategic pillar aims to grow insurance
revenue 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 businesses have developed
strongly in this area. Tryg has generally seen
strong development in the health area for both
Private and Commercial. Tryg does not see any
value in defining a specific growth target, as
profitability remains the key focus.
Trygg-Hansa and Codan Norway synergies
In connection with the acquisition of RSA
Scandinavia, Tryg communicated expected
synergies of DKK 900m to be delivered by 2024.
In 2023, synergies of DKK 305m were realised,
thus amounting to DKK 711m for 2021, 2022
and 2023 accumulated. The main synergy
drivers continue to be cost initiatives, with
administration & distribution and procurement
driving the largest effects. The accumulated
synergies of DKK 348m related to
administration and distribution were
predominantly driven by the termination of
Codan Norway’s IT contracts and the reduction
in IT FTE staff. Synergies of DKK 147m
associated with procurement were driven by
* 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.
Management’s review - Contents
Annual report 2023 | Tryg A/S | 16
Business initiatives
2023 marks the second year of Tryg’s new
strategy period, presented at its Capital Markets
Day (CMD) on 21 November 2021, that includes
the acquisition of Trygg-Hansa and Codan
Norway. Tryg has set new ambitious targets for
2024 under the headline “Growing a successful
core while shaping the future”. Tryg will
continue to grow its successful Private and SME
segments by building on its foundation for
customers and sales excellence while initiating
structural changes in the Corporate segment. In
2023, Tryg enhanced its focus on the B2B
segment, implementing initiatives to further
grow the SME segment while increasing
profitability in the Corporate business.
Moreover, in 2023, Tryg announced strategic
and organisational changes encompassing the
merging of the Commercial and Corporate lines.
Private
In Private, Tryg continued to build on its strong
foundation of innovative capabilities to deliver
excellent customer experiences and new
propositions to meet customer expectations as
well as support profitability. In Private Denmark,
Tryg has been marketing its new pregnancy
product, which is aimed at assisting women
during pregnancy and which is inspired by a
product offered by Trygg-Hansa in Sweden -
thus leveraging knowledge-sharing and
experience and creating synergies. In Private
Norway, Tryg embarked on a new partnership
with the independent agency BuySure, the
largest provider of ‘change of ownership
insurance’ in Norway. The partnership aims to
provide customers with ‘tryghed’ (peace of
mind) when buying or selling their home. The
partnership with BuySure is a great opportunity,
as the agency operates in a niche market, thus
giving Tryg access and the opportunity to
capitalise on a new customer base. In Private
Norway, Tryg also embarked on a partnership
with Golfforbundet, which is the Norwegian golf
federation. In Sweden, Trygg-Hansa continued
its strategic collaboration with SEB, the largest
bank in Sweden. The main objectives are to
increase customer value for SEB and Trygg-
Hansa customers, offer SEB’s customers a wide
range of Trygg-Hansa products and to further
deepen, develop and strengthen the
partnership. Trygg-Hansa also expanded its
collaboration with car brands by engaging in a
new partnership with Opel (Vauxhall), NIO as
well as other partnerships supporting a number
of segments.
Business-to-business (B2B)
At Tryg, a key priority has been to grow the
attractive and profitable SME segment while
finding the right balance between risk and price
among large Corporate customers.
In Commercial Denmark, Tryg launched its third
product package tailored to the retail segment.
Packaged products seek to reduce complexity
by bundling the most relevant insurance
products for a particular segment. The previous
two packaged products have already been well
received. Commercial Denmark also initiated a
partnership with GoMore, which is the largest
car rental, car leasing and carpooling platform in
Denmark. Tryg will act as an insurance provider
for carpoolers and offer insurance to car renters.
In Commercial Norway, Tryg embarked on a
new partnership with Mestergruppen.
Mestergruppen is one of the largest
construction companies in Scandinavia and is
involved in the distribution of building materials,
housing administration and construction. The
partnership gives Tryg the opportunity to offer
insurance products to Mestergruppen's
members and partners.
In the Corporate business, focus has been on
improving profitability, as presented at the
CMD. To achieve that objective, the segment
aimed to rebalance the portfolio towards
smaller, local customers and to reduce risk
exposure to international property and US
liability. Corporate reached its CMD target of
reducing exposure one year earlier than
anticipated, as the business area managed to
reduce its exposure to international property by
50% and reduced US liabilities by 70%. It is
worth mentioning that Tryg’s exposure to these
segments was already limited prior to the CMD.
Claims
Implementation of Guidewire (a new and more
effective and efficient claims handling system)
entered its final stage. The new claims handling
system boosts the quality of the claims handling
process by ensuring that all the correct
information is collected and that the customer
receives payment as quickly as possible. Simple
claims, such as travel claims, are handled fully
automated. Other, more complex claim types
are automated to the extent it is possible. By
digitalising the claim's process, the customer
can access the claim status at any given time
and communicate with a claim's handler for
more complicated enquiries.
In Norway, the Claims organisation completed
the implementation of Guidewire, as 100%, or
Management’s review - Contents
more than 300 thousand, of all claims are now
handled by the system, with approx. 80% of all
claims handled digitally and approx. 45% of
these handled automatically. In Denmark, the
Claims organisation entered the final stage of
the integration of Guidewire, as 80%, or more
than 650 thousand, of all claims are handled in
the system, with approx. 75% of all claims being
handled digitally and approx. 50% of these
handled automatically. In Sweden, the Claims
organisation expanded the scope for
automating claims handling, thus improving
process efficiency and the customer experience
through simplicity and speed. Also, a new fraud
identification system was developed in Sweden.
The new fraud system displayed improved
results by identifying more fraud cases
compared to previous years.
Sustainability and ESG
In Corporate Denmark, Tryg launched a new
preventive product. The product is offered as an
add-on to Workers compensation insurance,
with the aim of preventing and reducing injuries
by monitoring and analysing the movements of
workers undertaking manual labour.
In Claims Denmark, the organisation initiated a
SMART repair concept - Small to Medium Auto
Repair Technology. The new initiative reduces
the claims handling process from 3-5 days to 1
day. With SMART repair, small dents, paintwork
scratches and other minor cosmetic claims are
repaired at one location in one day instead of
several locations. Hence, by minimising the
repair process, Tryg reduces the CO2 footprint
and improves the customer experience. Also in
Claims Denmark, the organisation introduced a
Annual report 2023 | Tryg A/S | 17
Guidewire overview
Smart water controller to prevent water damage
in private homes. Tryg offered home insurance
customers a Grohe Sense Guard as part of its
efforts to prevent water damage and reduce
insurance claims. The Grohe Sense Guard is a
smart water controller that can detect leaks and
automatically disconnect the water supply to
prevent further damage. The initiative is an
excellent way to help homeowners protect their
properties from water damage and reduce the
risk of insurance claims as well as making our
customers feel safe and protected.
In Private Norway, Tryg launched 'Tryg Vei App'
to help reduce the risk of accidents among
younger drivers. The Norwegian Highway
Authority recommends 2,000 kilometres driving
practice. The app supports the national
recommendation, and once the 2,000
kilometres are registered, the young driver is
offered cheaper car insurance as well as a start-
up bonus. The app has been well-received, and
more than 4,600 Norwegians have downloaded
the app within the first couple of months. To
increase the societal impact, Tryg offers the app
not only to customers, but to all Norwegians
below 23 years of age.
Management’s review - Contents
Guidewire overview
Step-by-step Guidewire integration
Travel
Accident &
Property
Health
Content,
Liability & Auto
(1/2)
Pet
Auto (2/2)
Guidewire in numbers
Number of claims
Digitally
Automated
85%
80%
50%
Approx 85% of all claims handled in
Guidewire ...
… approx 80% of these are
handled digitally ...
… approx 50% of these are
handled automatically (STP)
Number of claims (2022): 60%
Digitally (2022): 45%
Automated (2022): 15%
Annual report 2023 | Tryg A/S | 18
9%12%23%29%5%7%15%100%AccomplishedRemaining2019/20202021 H22022 H12022 H22023 H12023 H2RemainingTotal integration Tryg’s results
Tryg reported an insurance service result of DKK 6,399m (DKK 6,292m) in 2023. The result was impacted
by revenue growth of 4.8% in local currencies, driven primarily by price adjustments to mitigate inflation
and a significantly higher than normal level of weather claims of just below DKK 1.3bn due to cloudbursts,
storms and heavy rain hitting all geographies. The underlying claims ratio for the Group improved by 0.5
percentage points, while the delivery of RSA Scandinavia-related synergies reached DKK 711m against a
target of DKK 650m for 2023. The Investment result was DKK 631m, predominantly driven by positive
returns from the equity and fixed income asset classes. The pre-tax result was DKK 5,029m. Tryg is paying
a dividend for the full year of DKK 7.4 per share and has, in addition, launched a share buyback programme
of DKK 1bn following the Q3 results. The solvency ratio at the end of the year is 197, demonstrating
resilience in challenging times.
Results 2023*
Tryg reported an insurance service result of DKK
6,399m (DKK 6,292m) and a combined ratio of
82.8 (83.2). The result was impacted by
insurance revenue growth of 4.8% measured in
local currencies and predominantly driven by
premium growth in the Private and Commercial
segments to mitigate increased inflation costs.
The insurance service result was negatively
impacted by significantly higher weather claims
compared to 2022 and the normalised level.
Numerous weather claims related to
cloudbursts and heavy rain were recorded in all
markets together with a powerful storm. Total
weather claims amounted to approximately
DKK 1.3bn (annual normalised expected level of
DKK 800m). Higher inflation levels drove
interest rates up, hitting the Swedish and
Norwegian kroner in particular. Currency
movement had a negative impact of
approximately DKK 360m in 2023. The
insurance service result was positively impacted
by an improvement in the Group's underlying
claims ratio (adjusted for reported volatile items
such as weather claims, large claims, run-offs
and discounting) of approximately 50 basis
points, primarily driven by profitability initiatives
in the Commercial and the Corporate segments.
The underlying claims ratio in Private
deteriorated slightly, mainly driven by the motor
segment due to increased spare parts costs,
especially in Norway and Sweden as a result of
adverse currency movements, and a slight
increase in motor claims frequencies across
countries. The result was supported by the
realisation of synergies related to the RSA
Scandinavia acquisition of DKK 305m for 2023
and a total of DKK 711m since the beginning of
the integration. DKK 348m of the synergies
relates to administration and distribution, DKK
147m relates to procurement, DKK 88m comes
from claims costs, and DKK 127m relates to
commercial initiatives.
Financial performance in general was helped by
higher interest rates (a higher discounting rate
reduces the value of claims in the income
statement), weather claims were significantly
worse than in 2022 (and also a normal year),
large claims were lower than in 2022 (but still
somewhat worse than a normal year), while the
run-off result was in line with 2022 and also in
line with the 3% to 5% guidance for 2024.
A customer satisfaction score of 86 was
achieved in 2023, an increase from 85 in 2022.
Tryg had a strong focus on improving customer
satisfaction. Different events in 2023 called for
extraordinary assistance, as many customers
were affected by the numerous weather-related
claim events in both Scandinavia and abroad.
Total investment return amounted to DKK
631m, predominantly driven by good returns
from the equity and fixed income asset classes.
Equity markets returned a positive result in
2023 with some volatility during the year. Tryg
*) FY 2023 insurance related figures are measured against comparative proforma 2022 figures as the RSA Scandinavia business was fully consolidated only from Q2 2022
Management’s review - Contents
Financial highlights 2023
6,399m
Insurance service result (DKK)
2022
*
: 6,292m
5,029m
Profit before tax
2022: 3,051m
69.4
Claims ratio, net of reinsurance
*
: 69.6
2022
13.4
Gross expense ratio
*
: 13.6
2022
82.8
Combined ratio
*
: 83.2
2022
Annual report 2023 | Tryg A/S | 19
reduced its equity exposure by some 25%,
equivalent to DKK 900m, in H2, reflecting Tryg's
continued pursuance of a relatively low-risk
investment strategy with limited exposure to
risky assets and a conservative fixed income
profile (more than 90% of fixed income
securities are Nordic covered bonds). It should
be remembered that Tryg marks to market both
assets and liabilities, resulting in heightened P&L
volatility in turbulent times.
Total invested assets amounted to
approximately DKK 64bn, with the free portfolio
accounting for approximately DKK 18bn of this
amount.
Insurance revenue
Insurance revenue amounted to DKK 37,135m
(DKK 37,379m), corresponding to growth of
4.8% in local currencies. Growth was impacted
by the conversion of the Codan portfolio in
Norway and the repricing of the Moderna
portfolio in Trygg-Hansa in Sweden in 2023, and
technical partner agreements in Denmark.
Excluding the conversion, repricing and
technical adjustments, growth was
approximately 5.5%. The impact of the
conversion and repricing on premium growth
was in line with expectations. The Private
segment reported revenue growth of 5.5% and
approximately 6.5% after adjusting for technical
adjustments, repricing and conversions related
to the RSA Scandinavia transaction. Insurance
revenue growth in Private was predominantly
driven by pricing initiatives to mitigate inflation,
but also further cross-selling to existing
customers, strong sales via partner agreements
and an enhanced focus on direct customers.
Growth in the Private segment was negatively
impacted by a slight deterioration in retention
rates, especially in Denmark and Norway, and
particularly for customer with a lower lifetime.
Inflation, interest rates and currencies
Inflation
Management’s review - Contents
Initial signs of higher inflation
growth in the second half of 2021
Non-life insurers are exposed to higher
inflation via higher claims costs
Interest rates¹
Tryg is mitigating higher inflation growth
via its strong procurement agreements,
while at the same time adjusting prices
to reflect the higher inflation level
Interest rates have started to increase
following many years of very low levels
Due to full discounting of claims reserves,
increased interest rates will have a positive
impact on the claims ratio (all else being equal)
and will help lower claims costs
An increase of one percentage point
in the average interest rate used for
discounting claims will reduce the
claims ratio by ~1 p.p.
Currencies
Due to the unstable macroeconomic
environment, currency movements
have been highly unfavourable, as the
SEK and NOK are trading close to
20-year lows
After the acquisition of Codan Norway &
Trygg-Hansa, more than 50% of the
Group's business now stems from outside
Denmark.
A one percentage point fluctuation in the
exchange rate will effect the Group's
insurance service result by ~DKK 50-75m
annually.
¹ Tryg has published a newsletter on the sensitivity of earnings to interest rate movements. Read more on tryg.com/newsletters
Annual report 2023 | Tryg A/S | 20
The commercial segment reported insurance
revenue growth of 3.9%, and approximately 5%
after adjusting for the transfer between
Commercial and Corporate in the Norwegian
business in 2023. Growth in the Commercial
segment was predominantly driven by pricing
initiatives to mitigate inflation, an enhanced
focus on smaller commercial customers
supported by increased sales of packaged
products and strong sales through our own
sales force and online channels, but was
negatively impacted by a deterioration in
retention rates following a period of continuous
price adjustments. The Corporate segment
continued its efforts to improve profitability
through price adjustments and by reducing
exposure to property and liabilities outside
Scandinavia. Corporate reported modest growth
of 2.3%, or slightly negative after adjusting for
the transfer from Commercial to Corporate,
which is in line with expectations. The
Corporate segment reached its target for the
current CMD period of reducing exposure to
international property by 50% and US liabilities
by 70%. Tryg's exposure to these segments was
already relatively low prior to the CMD.
Claims
The claims ratio, net of reinsurance, was 69.4
(69.6) and characterised by higher weather
claims at 3.4 (1.7) impacted by numerous
cloudbursts across Scandinavia, storm "Hans" in
August, and hailstorms and wildfires in Southern
Europe that affected Scandinavian travellers.
The multiple weather events were below Tryg's
own retention of DKK 300m, hence the total
amount of weather claims in 2023 was very high
and there was little help from reinsurance
protection. Despite an unusually high level of
weather claims in 2023, Tryg does not consider
the recent development as a new trend and is
therefore reiterating the guidance for annual
weather claims at DKK 800m. The claims ratio
was positively impacted by a lower level of large
claims at 2.7 (3.3), including a single large claim
event in Q2 related to Tryg's Scandinavian
exposure. Large claims were approximately
DKK 1,000m, higher than the DKK 800m for a
normalised year, but lower than in 2022, when
large claims totalled DKK 1,250m.
The run-off level was 3.0 (3.0), in line with the
2022 level and at the low end of the 3% to 5%
guidance for 2024 published in November
2021. The run-off result was impacted by
multiple factors including the increased inflation
levels in 2022 and 2023 compared to previous
years. Discounting of claims reserves was
higher at 3.0 (2.1), predominantly reflecting the
higher level of interest rates. The underlying
claims ratio for the Group improved by 50 basis
points compared to 2022. The underlying claims
ratio for the Private segment deteriorated
marginally compared to 2022, primarily driven
by a higher claims level for travel insurance in
the first half of 2023 and a higher level of motor
comprehensive claims in the second half of
2023. Automobile spare parts costs were higher
in Norway and Sweden following the weakening
of the currencies (SEK & NOK), plus a slight
increase in motor claims frequencies was
recorded across countries.
Profitability initiatives in the Commercial &
Corporate segments, including a rebalancing of
the Corporate portfolio, supported the
improvement in the Group's underlying claims
ratio.
Reinsurance prices increased from the
beginning of 2023 and price initiatives were
initiated to mitigate the impact for both the large
claims and weather reinsurance contracts.
Tryg has been working actively with
procurement agreements to contain claims
inflation. The company is in continuous dialogue
with suppliers and updates selected agreements
to reflect the current market situation. Most
agreements extend beyond one year and have
fixed prices.
Inflation remained high during most of 2023,
and worth mentioning is that wage growth is the
main driver for claims inflation. Moreover, the
Swedish and Norwegian businesses are affected
by their respective currencies weakening, which
in particular has impacted automobile spare
parts. 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, price adjustments will match claims
inflation, but there may be some slightly more
volatile developments in the short term.
Expenses
The expense ratio was 13.4 (13.6) for 2023,
impacted by strong cost control. Tryg targets an
expense ratio of around 13.5% in 2024 - a very
efficient set-up is considered a key competitive
advantage. In 2023, synergies from the RSA
Scandinavia acquisition had a positive impact on
the overall expense level and supported the low
expense ratio.
Investment activities
Investment income was DKK 631m, primarily
driven by positive returns from the equity and
fixed income asset classes. The free portfolio
reported an overall result of DKK 622m (DKK
-945m), the match portfolio reported an overall
result of DKK 468m (DKK 207m), while other
financial income and expenses amounted to
DKK -459m (DKK 263m), including a value
adjustment from the inflation swap of DKK
-246m.
*) Please find more information on Gefion on oage 7 of the Q1 2022 report
Management’s review - Contents
Other income and costs
Other income and costs amounted to DKK
-2,001m (DKK -2,143m). The remaining DKK
300m of integration costs from the acquisition
of RSA Scandinavia was booked in 2023 (H1).
This accounting item primarily comprises
intangibles amortisation (customer relations) of
DKK 968m from the RSA Scandinavia
acquisition and the Alka acquisition. Finally,
other general costs (primarily costs related to
the holding company, bancassurance-related
commissions and general costs) and
educational and development costs are also
booked against this line. Tryg also booked DKK
180m in 2023 in costs related to the
redundancies of 250-270 employees
communicated in Q3 2023 as well as a DKK
50m charge related to the bankruptcy of Gefion
Finans A/S* (a Danish insurance company). An
initial charge of DKK 50m for the bankruptcy of
Gefion was booked in Q1 2022, but based on an
updated view of the company’s financial
position, Tryg has updated the total cost to DKK
100m.
Profit before and after tax
Profit before tax was DKK 5,029m, while profit
after tax and discontinued activities was DKK
3,851m. Total tax amounted to DKK -1,178m,
equating to a tax rate of approximately 23.4%.
Dividend and solvency
Own funds totalled DKK 14,998m at the end of
2023, while the SCR was DKK 7,633m. Tryg will
be paying a dividend of DKK 4,734m, or DKK 7,4
per share for the full year, and announced a
share buyback programme of DKK 1bn
following the Q3 results. Tryg reports a year-end
solvency ratio of 197.
Annual report 2023 | Tryg A/S | 21
Results Q4 2023
Tryg reported revenue growth of 6.3%
measured in local currencies, which was mainly
driven by growth in the Private and Commercial
segments. The insurance service result was DKK
1,654m (1,472m). The Group underlying claims
ratio improved by 50 basis points, driven by the
Commercial and Corporate businesses, whilst
Private displayed a deterioration of 30 basis
points, impacted by higher claims for motor
spare parts, particularly in Sweden and Norway
due to weakened currencies, and by slightly
higher claims frequencies for motor in all
markets. Weather claims had a negative impact
at 3.4 (2.2). A lower level of discounting at 2.6
(2.9) was reported following a drop in interest
rates in the last three months of the year, whilst
a lower large claims level at 1.5 (3.1) had a
positive impact versus Q4 2022. Adverse
movements in the Swedish and Norwegian
currencies had a negative impact of
approximately DKK -60m in Q4 2023. Tryg will
pay dividends of DKK1.85 per share in Q4 2023,
in line with previous quarters, and will continue
to execute the buyback programme published in
connection with the Q3 2023 results.
Management’s review - Contents
Annual report 2023 | Tryg A/S | 22
Private
Results 2023*
Private reported an insurance service result of
DKK 3,800m (DKK 4,331m) and a combined
ratio of 84.5 (82.3). The lower insurance service
result was impacted by numerous weather-
related claims and a modest deterioration in the
underlying claims ratio due to travel insurance
claims in the first half of 2023 and a slightly
higher claims level for motor comprehensive in
the second half of 2023. Insurance revenue
growth was mainly driven by price adjustments
to mitigate inflation.
Insurance revenue
Insurance revenue amounted to DKK 24,455m
(DKK 24,453m), corresponding to growth of
5.5% in local currencies. Growth was impacted
by the conversion and repricing of the Moderna
portfolio in Sweden and Codan Norway in
Norway, and technical adjustments of partner
agreements. Adjusted for this, growth was 6.5%.
Growth was generated across all countries, and
as Private is the most profitable segment in Tryg
with the lowest capital requirement, growth in
this segment is structurally positive for the
Group. In Denmark, Tryg reported top-line
growth impacted by price adjustments, an
enhanced focus on direct customers, strong
sales in partner channels and cross-selling to
existing customers, and technical adjustments
of partner agreements. In Norway, Tryg
reported top-line growth impacted by price
adjustments, strong performance across
multiple sales channels and increased sales of
insurance to new electric cars. In Sweden,
Trygg-Hansa reported top-line growth impacted
by organic growth across multiple sales
channels and cross-selling to existing
customers. Growth was also supported by good
sales via Trygg-Hansa’s new automobile
partnerships. All geographical areas in the
Private segment continued to adjust prices to
mitigate inflation and saw a high level of
acceptance, as retention rates in all countries
showed only a modest deterioration. In
Denmark, the retention rate remained high but
decreased to 89.7 (90.3), impacted by
customers with a lower lifetime. In Norway, the
retention rate decreased slightly to 87.4 (88.7)
following a period of continuous price
adjustments. In Sweden, the retention rate was
flat at 87.8 (87.8) despite a period of significant
price adjustments.
Claims
The claims ratio, net of reinsurance, was 71.9
(69.4), impacted by higher weather claims at 3.8
(1.8) due to numerous unrelated cloudbursts
across several countries, hailstorms and
wildfires in southern Europe that affected
Scandinavian travellers, landslides impacting
Tryg through the Natural Perils Pool in Norway,
and storm "Hans" causing havoc throughout the
region. The run-off result was lower at 1.1 (2.3)
and was impacted by inflationary pressure,
whilst large claims were lower at 0.3 (0.6). The
underlying claims ratio deteriorated slightly,
driven somewhat by motor insurance due to
higher costs for spare car parts, particularly in
Norway and Sweden following significant
adverse currency movements (SEK & NOK), and
also a slight increase in claims frequency across
countries. Motor comprehensive is a
*) FY 2023 figures are measured against comparative proforma 2022 figures, as the RSA Scandinavia business was fully
consolidated only from Q2 2022.
Key figures - Private
DKKm
All figures restated to IFRS 17
Insurance revenue
Gross claims
Total insurance operating costs
Insurance service expense
Profit/loss on gross business
Net expense from reinsurance contracts
Insurance service result
Run-off gains/losses, net of reinsurance
Key ratios
Revenue growth in local currencies (%)
Gross claims ratio
Net reinsurance ratio
Claims ratio, net of reinsurance
Gross expense ratio
Combined ratio
Combined ratio exclusive of run-off
Run-off, net of reinsurance (%)
Large claims, net of reinsurance (%)
Weather claims, net of reinsurance (%)
Management’s review - Contents
Q4
2023
6,203
-4,339
-775
-5,114
1,089
-98
991
87
7.7
70.0
1.6
71.5
12.5
84.0
85.4
-1.4
-0.2
3.8
Q4
2022
6,010
-4,060
-756
2022
2023
pro-forma
2022
24,455
-17,305
-3,074
24,453
-16,634
-3,141
22,776
-15,625
-2,913
-4,816
-20,379
-19,775
-18,538
1,194
-167
1,027
73
3.4
67.6
2.8
70.3
12.6
82.9
84.1
-1.2
0.3
2.0
4,076
-276
3,800
268
5.5
70.8
1.1
71.9
12.6
84.5
85.6
-1.1
0.3
3.8
4,678
-347
4,331
567
68.0
1.4
69.4
12.8
82.3
84.6
-2.3
0.6
1.8
4,238
-332
3,906
357
4.9
68.6
1.5
70.1
12.8
82.9
84.4
-1.6
0.6
1.8
65% The business area accounts for 65% of
the Group’s total insurance revenue.
Financial highlights 2023
5.5% 3,800m 12.6
84.5
Revenue growth
(local currencies)
Insurance service result
(DKK)
Expense ratio
Combined ratio
Based on
pro-forma figures
2022: 4,331m
2022: 12.8
2022: 82.3
Annual report 2023 | Tryg A/S | 23
short-tailed line of business that Tryg is
currently monitoring and increasing prices to
offset the negative impact of rising inflation.
Additionally, claims related to travel insurance
were high, as travel activity increased and many
households displayed a changed travel pattern
with fewer but more expensive trips in the first
half of the year. Also, Tryg observed a further
increase in the number of smaller travel claims
associated with card agreements with major
banks in Scandinavia.
Expenses
The expense ratio was lower at 12.6 (12.8) and
was supported by synergies related to the
acquisition of RSA Scandinavia’s Swedish and
Norwegian businesses.
Results Q4 2023
Private reported an insurance service result of
DKK 991m (DKK 1,027m) and a combined ratio
of 84.0 (82.9). The lower insurance service
result was impacted by a high level of weather-
related claims and a modest deterioration in the
underlying claims ratio due to a slightly higher
claims level for motor comprehensive, but was
supported by revenue growth driven by organic
growth and price adjustments to mitigate
inflation.
Insurance revenue
Insurance revenue amounted to DKK 6,203m
(DKK 6,010m), corresponding to growth of 7.7%
in local currencies. Growth was impacted by the
conversion and repricing of the Moderna
portfolio in Sweden and Codan Norway in
Norway, and technical adjustments of partner
agreements. Adjusted for this, growth would
have been approximately 7%. In Q4, growth was
mainly driven by price adjustments.
Management’s review - Contents
Claims
The claims ratio, net of reinsurance, was 71.5
(70.3), characterised by higher weather claims
at 3.8 (2.0). The run-off result was higher at 1.4
(1.2), whilst large claims improved at -0.2 (0.3).
The underlying claims ratio deteriorated slightly,
driven by motor insurance due to higher costs
for spare car parts, particularly in Norway and
Sweden following significant adverse currency
movements (SEK & NOK), and also a slight
increase in claims frequency across countries.
Motor comprehensive is a short-tailed line of
business that Tryg is currently monitoring and
increasing prices to offset the negative impact
of rising inflation.
Expenses
The expense ratio was lower at 12.5 (12.6) and
was supported by synergies related to the
acquisition of RSA Scandinavia’s Swedish and
Norwegian businesses.
Financial highlights Q4 2023
7.7% 991m 12.5
84.0
Revenue growth
(local currencies)
Insurance service result
(DKK)
Expense ratio
Combined ratio
Q4 2022: 1,027m
Q4 2022: 12.6
Q4 2022: 82.9
Annual report 2023 | Tryg A/S | 24
Commercial
Results 2023*
Commercial reported an insurance service
result of DKK 2,010m (DKK 1,684m) and a
combined ratio of 78.1 (81.9). The higher
insurance service result was supported by a
lower level of large claims. The underlying
claims ratio improved due to a continued focus
on smaller commercial customers. Insurance
revenue growth was mainly driven by price
adjustments to mitigate inflation but was also
impacted positively by organic growth.
Insurance revenue
Insurance revenue amounted to DKK 9,178m
(DKK 9,295m), corresponding to growth of 3.9%
measured in local currencies. Growth was
mainly impacted by price adjustments and a
portfolio transfer from Commercial Norway to
Corporate Norway. Note that while the
conversion had been finalised, it still had an
impact on insurance revenue. Adjusted for the
transfer, growth for the segment was
approximately 5%. In Denmark, Tryg reported
growth impacted by price adjustments and a
positive net inflow of new customers. The
business unit continued to focus on smaller
commercial customers. In Norway, Tryg
reported negative growth impacted by the
portfolio transfer from Commercial to
Corporate, as a high proportion of the
customers in Codan Norway are labelled as
Corporate customers according to Tryg’s
definition. Adjusting for this, Commercial
Norway reported growth predominantly driven
by price adjustments. In Sweden, Trygg-Hansa
reported growth impacted by organic growth
in the small customer segment on the back of a
strong business performance by Trygg-Hansa’s
own sales force and online sales, whilst price
adjustments also had an impact. Tryg also
reported growth in the credit and surety
business (Tryg Garanti). All geographical areas in
the Commercial segment continued to adjust
prices to mitigate inflation with a high level of
acceptance. Retention rates remained high but
deteriorated slightly, primarily due to customer
reaction to price adjustments. In Denmark, the
retention rate deteriorated to 87.6 (88.0)
following a period of continuous price
adjustments. In Norway, the retention rate
improved to 89.5 (89.0) following a period of
continuous price adjustments. In Sweden, the
retention rate improved slightly to 88.6 (88.5).
Claims
The claims ratio, net of reinsurance, was 62.3
(65.9), characterised by a lower level of large
claims at 3.8 (7.3). Weather claims were higher
at 3.1 (1.5), impacted by numerous unrelated
cloudbursts in Scandinavia, whilst the run-off
level was lower at 3.4 (4.4). The underlying
claims ratio improved, driven by price
adjustments and by focusing on growing the
smaller commercial customer segment, as this
segment displays higher profitability. The
increase in claims costs was highest for the
property line of business and for motor
comprehensive. The increase in the motor
segment was mainly driven by higher costs for
spare parts following currency weakness (SEK &
NOK). Motor comprehensive is a short-tailed
line of business where Tryg is increasing prices
to offset the negative impact of rising inflation.
*) FY 2023 figures are measured against comparative 2022 figures, as the RSA Scandinavia business was fully consolidated
only from Q2 2022
Management’s review - Contents
2022
2023
pro-forma
2022
9,178
-5,517
-1,454
-6,972
2,207
-197
2,010
315
3.9
60.1
2.1
62.3
15.8
78.1
81.5
-3.4
3.8
3.1
9,295
-6,045
-1,485
-7,530
1,765
-81
1,684
411
65.0
0.9
65.9
16.0
81.9
86.3
-4.4
7.3
1.5
8,408
-5,551
-1,337
-6,889
1,519
-66
1,453
264
8.6
66.0
0.8
66.8
15.9
82.7
85.9
-3.1
7.2
1.6
Key figures - Commercial
DKKm
All figures restated to IFRS 17
Insurance revenue
Gross claims
Total insurance operating costs
Insurance service expense
Profit/loss on gross business
Net expense from reinsurance contracts
Insurance service result
Run-off gains/losses, net of reinsurance
Key ratios
Revenue growth in local currencies (%)
Gross claims ratio
Net reinsurance ratio
Claims ratio, net of reinsurance
Gross expense ratio
Combined ratio
Combined ratio exclusive of run-off
Run-off, net of reinsurance (%)
Large claims, net of reinsurance (%)
Weather claims, net of reinsurance (%)
Q4
2023
2,315
-1,296
-390
-1,686
629
-6
623
102
4.2
56.0
0.3
56.2
16.9
73.1
77.5
-4.4
2.0
3.0
Q4
2022
2,306
-1,623
-377
-2,000
306
108
414
126
3.9
70.4
-4.7
65.6
16.4
82.0
87.5
-5.5
8.8
2.6
25% The business area accounts for 25% of
the Group’s total insurance revenue
Financial highlights 2023
3.9% 2,010m 15.8
78.1
Revenue growth
(local currencies)
Insurance service result
(DKK)
Expense ratio
Combined ratio
Based on
pro-forma figures
2022: 1,684m
2022: 16.0
2022: 81.9
Annual report 2023 | Tryg A/S | 25
Expenses
The expense ratio was lower at 15.8 (16.0). The
segment is generally focused on lowering
distribution costs through the use of more
efficient sales channels. The expense ratio was
also supported by synergies related to the
acquisition of RSA Scandinavia’s Swedish and
Norwegian businesses. Furthermore, pricing
adjustments were widely accepted, which also
helped lower the expense ratio.
Results Q4 2023
Commercial reported an insurance service
result of DKK 623m (DKK 414m) and a
combined ratio of 73.1 (82.0). The higher
insurance service result was characterised by a
lower level of large claims and an improved
underlying claims ratio, whilst insurance
revenue growth was driven by price
adjustments to mitigate inflation.
Insurance revenue
Insurance revenue amounted to DKK 2,315m
(2,306m), corresponding to growth of 4.2% in
local currencies. The development was mainly
driven by price adjustments.
Management’s review - Contents
Claims
The claims ratio, net of reinsurance was 56.2
(65.6), characterised by lower large claims at 2.0
(8.8). Weather claims were higher at 3.0 (2.6),
whilst the run-off result was also lower at 4.4
(5.5). The underlying claims ratio improved, but
was dampened by higher costs for spare car
parts in Norway and Sweden following
significant adverse currency movements (SEK &
NOK), and also a slight increase in claims
frequency across countries. Motor
comprehensive is a short-tailed line of business
that Tryg is currently monitoring and increasing
prices to offset the negative impact of rising
inflation.
Expenses
The expense ratio was higher at 16.9 (16.4). The
segment is generally focused on lowering
distribution costs through the use of more
efficient sales channels. The expense ratio was
also supported by synergies related to the
acquisition of RSA Scandinavia’s Swedish and
Norwegian businesses.
Financial highlights Q4 2023
4.2% 623m 16.9
73.1
Revenue growth
(local currencies)
Insurance service result
(DKK)
Expense ratio
Combined ratio
Q4 2022: 414m
Q4 2022: 16.4
Q4 2022: 82.0
Annual report 2023 | Tryg A/S | 26
Management’s review - Contents
2022
2023
pro-forma
2022
3,502
-2,448
-430
-2,878
624
-34
590
517
2.3
69.9
1.0
70.9
12.3
83.2
97.9
-14.7
16.6
1.7
3,631
-2,724
-451
-3,175
456
-177
278
137
75.0
4.9
79.9
12.4
92.3
96.1
-3.8
10.7
1.0
3,631
-2,724
-451
-3,175
456
-177
278
137
-0.8
75.0
4.9
79.9
12.4
92.3
96.1
-3.8
10.7
1.0
Q4
2023
879
-606
-107
-713
166
-125
41
92
2.5
69.0
14.3
83.3
12.1
95.4
105.9
-10.5
12.6
1.7
Q4
2022
904
-678
-136
-814
90
-59
30
-7
8.9
75.0
6.6
81.5
15.1
96.6
95.9
0.8
7.4
2.7
Key figures - Corporate
DKKm
All figures restated to IFRS 17
earlier than anticipated, as the business area
managed to reduce its exposure to international
property by 50% and reduced US liabilities by
70%. Note that Tryg’s exposure to these
segments was already limited prior to the CMD.
Insurance revenue
Gross claims
Total insurance operating costs
Insurance service expense
Profit/loss on gross business
Net expense from reinsurance contracts
Insurance service result
Run-off gains/losses, net of reinsurance
Key ratios
Revenue growth in local currencies (%)
Gross claims ratio
Net reinsurance ratio
Claims ratio, net of reinsurance
Gross expense ratio
Combined ratio
Combined ratio exclusive of run-off
Run-off, net of reinsurance (%)
Large claims, net of reinsurance (%)
Weather claims, net of reinsurance (%)
Claims
The claims ratio, net of reinsurance, was 70.9
(79.9), characterised by a higher run-off result
and a higher level of large claims. The claims
ratio, net of reinsurance, was supported by a
higher run-off result at 14.7 (3.8), but dampened
by a higher level of large claims at 16.6 (10.7) on
the back of various large claims below Tryg’s
retention level and a large claims event related
to Tryg's Scandinavia exposure. Weather claims
were higher at 1.7 (1.0). The underlying claims
ratio improved, mainly driven by profitability
initiatives across countries and the segment's
continued focus on rebalancing the portfolio
and reducing volatility by cutting exposure to
international property and US liability.
Expenses
The expense ratio was higher at 12.3 (12.4). In
general, a lower expense ratio should be
expected for the Corporate segment, as
acquisition costs in the broker channel are paid
for by customers via a commission to brokers.
Corporate
Results 2023*
Corporate reported an insurance service result
of 590m (278m) and a combined ratio of 83.2
(92.3). The higher insurance service result was
supported by a higher run-off result, but
dampened by a higher level of large claims. The
higher result was driven by a continued focus on
rebalancing the portfolio and price adjustments.
The corporate segment is on track to deliver the
CMD Combined ratio target of less than 90,
driven by run-off results of between 3% and 5%.
Insurance revenue
Insurance revenue amounted to DKK 3,502m
(3,631m), corresponding to growth of 2.3% in
local currencies. Growth was mainly impacted
by price adjustments and a portfolio transfer
from Commercial Norway to Corporate Norway.
Note that while the conversion had been
finalised, it still had an impact on insurance
revenue. Adjusted for the transfer, growth for
the segment was negative. In Denmark, Tryg
reported negative growth as the business unit
continued to rebalance its portfolio and reduce
volatility and exposure. In Norway, Tryg
reported positive growth impacted by the
transfer of customers from Commercial to
Corporate, as a high proportion of the
customers in Codan Norway are labelled as
Corporate customers according to Tryg's
definition. Adjusted for the transfer, growth was
negative. In Sweden, Trygg-Hansa reported
growth driven by price adjustments to offset
rising inflation. Corporate reached its CMD
target of reducing exposure one year
10% The business area accounts for 10% of
the Group’s total insurance revenue
Financial highlights 2023
2.3% 590m 12.3
83.2
Revenue growth
(local currencies)
Insurance service result
(DKK)
Expense ratio
Combined ratio
2022: 278m
2022: 12.4
2022: 92.3
*) FY 2023 figures are measured against comparative proforma 2022 figures, as the RSA Scandinavia business was fully
consolidated only from Q2 2022
Annual report 2023 | Tryg A/S | 27
Results Q4 2023
Corporate reported an insurance service result
of DKK 41m (DKK 30m) and a combined ratio of
95.4 (96.6). The higher insurance service result
was supported by a higher run-off result, but
dampened by a higher level of large claims. The
result was also impacted by a continued focus
on rebalancing the portfolio and price
adjustments.
Insurance revenue
Insurance revenue amounted to DKK 879m
(DKK 904m), corresponding to negative growth
of 2.5% in local currencies. Growth was mainly
impacted by price adjustments
Management’s review - Contents
Claims
The claims ratio, net of reinsurance, was 83.3
(81.5), characterised by a higher run-off result
and a higher level of large claims. The claims
ratio, net of reinsurance, was supported by a
lower run-off result at 10.5 (0.8) but dampened
by a higher level of large claims at 12.6 (7.4). The
underlying claims ratio improved, mainly driven
by profitability initiatives across countries as
well as the segment's continued focus on
rebalancing the portfolio and reducing volatility
by cutting exposure to international property
and US liability.
Expenses
The expense ratio was lower at 12.1 (15.1). In
general, a lower expense ratio should be
expected for the Corporate segment, as
acquisition costs in the broker channel are paid
for by customers via a commission to brokers.
Financial highlights Q4 2023
2.5% 41m
Revenue growth
(local currencies)
Insurance service result
(DKK)
12.1
Expense ratio
95.4
Combined ratio
Q4 2022: 30m
Q4 2022: 15.1
Q4 2022: 96.6
Annual report 2023 | Tryg A/S | 28
Management’s review - Contents
Investment activities
Investment result 2023
Capital markets experienced challenging
developments in 2023. Geopolitical tensions
remained very high following Russia's invasion
of Ukraine, US/China tensions on Taiwan and,
later in the year, the Israel/Palestine war.
Interest rates remained elevated following a
spike in inflation during the first half of 2022 as
central banks in all the world's advanced
economies attempted to carefully balance
tightening monetary conditions without creating
a severe recession. Interest rates started to fall
again in the final quarter of the year after
inflation slowed in most advanced economies.
The total market value of Tryg’s investment
portfolio was approximately DKK 64bn at 2023
year-end. The investment portfolio consists of a
match portfolio (which matches the insurance
liabilities and is constructed to minimise capital
consumption) of DKK 46bn and a free portfolio
(the net asset value of the company) of DKK
18bn.
Tryg maintained a low risk approach to its
investment activities while further reducing the
allocation to equities in Q3 2023.
The investment return for the full year was DKK
631m (DKK -441m), which represents the sum
of the free and the match portfolio returns and
other financial income and expenses. The free
portfolio reported a result of DKK 622m (DKK
-945m), with most of the performance coming
in the final quarter of the year after data clearly
pointed to lower inflation expectations. Equities
are approaching record levels while real estate
returns were challenging in a higher interest rate
environment.
The match portfolio reported a result of DKK
468m (DKK 207m). An increasing DK-EU yield
spread provided a negative regulatory deviation,
whereas Nordic covered bond spreads traded
sideways during the year. Finally, positive
interest on premium provisions (previously
booked as technical interest under IFRS 4)
helped the match portfolio result in its
performance component. Other financial
income and expenses totalled DKK -459m (DKK
263m), the higher level (compared to full year
2022) primarily driven by somewhat higher
interest expenses on subordinated loans and
especially the Q4 negative value adjustment on
the inflation swap (DKK -222m) driven by
sharply lower future inflation expectations in the
final three months of the year.
Free portfolio
Financial markets experienced a challenging and
volatile year. Geopolitical tensions remained
high in multiple areas of the world. Against this
unsettled backdrop, equity markets developed
positively overall, but with significant
differences driven by single stock performances
and varying quarterly returns. Interest rates
remained at a high level, while real estate as an
asset class found conditions challenging. Tryg’s
free portfolio produced a total result of DKK
622m (DKK -945m), with all main asset classes
except properties producing positive returns.
Tryg’s equity portfolio reported a return of
11.1% (-15.7%), corporate bonds (a relatively
small asset class for Tryg) reported a 8.2%
Financial highlights 2023
622m
Free portfolio
(DKK)
468m
Match portfolio
(DKK)
631m
Total investment return
(DKK)
Return - Investments
DKKm
Free portfolio, gross return
Match portfolio, regulatory deviation and performance
Other financial income and expenses
Income from RSA Scandinavia
Total investment return
Q4 2023
Q4 2022
2023
2022
DKKm
Q4 2023
Q4 2022
2023
2022
Return - Match portfolio
397
34
-285
0
146
205
232
130
-18
549
622
468
-459
0
631
-945
207
263
34
-441
Return, match portfolio
Value adjustments, changed discount rate
Transferred to insurance technical interest
Match, regulatory deviation and performance
Hereof:
Match, regulatory deviation
Match, performance
1,863
-1,548
-281
34
-190
224
438
90
-295
232
197
35
2,580
-905
-1,207
468
-2,433
3,419
-779
207
-7
475
142
65
Annual report 2023 | Tryg A/S | 29
(–15.4%) return, while real estate reported a
-8.5% (10.4%) return. The free portfolio totalled
DKK 18bn at the end of 2023.
Match portfolio
The match portfolio of DKK 46bn primarily
consists of Nordic covered bonds for the
purpose of matching insurance liabilities while
keeping capital consumption low. The result can
be split into a “regulatory deviation” and a
“performance result”.The “regulatory deviation”
reported a slightly negative contribution of DKK
-7m (DKK 142m) due to a slightly increased DK-
EU yield spread. The “performance” result was
DKK 475m (DKK 65m), primarily driven by
interest on premium provisions (the old
technical interest, which was previously booked
under the technical result in IFRS 4), whereas
Nordic covered bond spreads traded sideways
during the year.
Other financial income and expenses
Other financial income and expenses include
interest expenses related to outstanding
subordinated debt, the cost of currency hedges
to protect own funds, the value change on the
inflation swap, the cost of running the
investment operations and other general costs.
Other financial income and expenses totalled
DKK -459m (DKK 263m). The higher level
compared to normalised expectations is
primarily driven by the negative value
adjustment on the inflation swap of DKK -222m
booked in Q4 due to sharply lower inflation.
Investment result in Q4 2023
The final quarter of the year was characterised
by positive developments in the financial
markets, equity markets performed well and
interest rates fell, driven by lower inflation
expectations moving into 2024.
The free portfolio reported a result of DKK
397m (DKK 205m), primarily driven by the
equity and fixed income asset classes, while real
estate produced a negative return. Tryg’s equity
portfolio returned 4.7% (6.6%) for Q4.
The match portfolio returned a positive DKK
34m (DKK 232m), with a small contribution
from the performance component offsetting a
negative regulatory contribution component.
Return - free portfolio
Danish provisions are discounted by euro swap
rates but hedged by a combination of euro and
Danish assets. An increasing yield spread
therefore means a negative contribution to the
regulatory deviation. The positive performance
in the final quarter of 2023 stems from the
positive interest return on premium provisions
together with narrowing Nordic covered bond
spreads, which produced a positive
performance overall.
Other financial income and expenses were DKK
-285m (DKK 130m), clearly more negative than
the normalised level of approximately DKK
-90m. A negative inflation swap value change of
DKK -222m was booked as inflation
expectations fell sharply in the last three months
of the year. Interest expenses on outstanding
subordinated loans were DKK 48m, in line with
previous quarters.
Management’s review - Contents
Financial highlights Q4 2023
397m
Free portfolio
(DKK)
34m
Match portfolio
(DKK)
146m
Total investment return
(DKK)
DKKm
Q4 2023
Q4 2023 (%)
Q4 2022
Q4 2022 (%)
2023
2023 (%)
2022
2022 (%)
31/12/2023
31/12/2022
Investment assets
Government and Covered Bonds
Corporate and Emerging Markets Bonds
Investment grade credit
Emerging markets bonds
High-yield bonds
Diversifying Alternatives
Equity
Real Estate
Total
131
199
74
78
48
8
150
-91
397
2.2
6.9
6.7
7.0
7.0
0.7
4.7
-2.6
2.4
82
96
34
34
28
-64
216
-125
205
1.4
3.3
3.1
3.5
3.4
-5.2
6.6
-2.8
1.2
240
254
97
97
61
77
377
-326
622
4.2
8.2
8.2
8.3
8.2
6.4
11.1
-8.5
3.6
-427
-420
-155
-120
-144
-40
-525
467
-945
-7.5
-15.4
-15.4
-15.2
-15.4
-3.3
-15.7
10.4
-5.8
7,198
2,969
1,113
1,157
699
1,456
2,418
3,465
6,034
2,979
1,199
1,039
742
1,239
3,182
4,222
17,506
17,656
Annual report 2023 | Tryg A/S | 30
Follow Tryg’s free portfolio at tryg.com
Tryg publishes the percentage return of the
most volatile part of its investment income,
the so-called free portfolio (the NAV of the
company), daily at Tryg.com. Tryg has
previously published a newsletter detailing
the different building blocks of the
investment result. At the end of Q4 2023,
the free portfolio totalled approximately
DKK 18bn and the amount is broadly
stable. The match portfolio is made up
primarily of Nordic covered bonds and
structured to report a result close to zero.
Since the switch to IFRS 17, an item
previously called "technical interest", and
booked under the old technical result
( insurance service result), is now part of
the overall investment result. Moving into
2024, a change to the ultimate forward rate
(UFR), or the curve used to discount
liabilities, will also be included in the match
result. The overall match portfolio result is
expected to be between DKK 250m and
DKK 300m for FY 2024, capturing the UFR
change and also the lower level of interest
rates in Q4 (vs Q3)
The match portfolio has been built to
minimise capital consumption. Finally, the
line “other financial income and expenses”
is expected to be approximately DKK -90m
per quarter, but it can be a volatile item.
The main component of "Other financial
income and expenses" is the interest
expenses on Tier 1 and Tier 2 loans, which
are estimated at DKK -50m quarterly.
Significant changes in inflation going
forward may impact the value of the
inflation swap (as per Q4 2023) and thus
impact the overall "other financial income
and expenses" line.
Tryg strives to increase transparency
across its financial reporting, so in
challenging financial markets it is worth
remembering that the most volatile part of
the investment result is observable on a
daily basis.
Forward-looking inflation expectations, Q1-Q4 2023
Management’s review - Contents
Source: Bloomberg , EUSWI2 INDEX & EUSWI10 INDEX
Annual report 2023 | Tryg A/S | 31
Traded inflation 2 yearsTraded inflation 10 yearsQ1Q2Q3Q41.5%1.8%2.0%2.3%2.5%2.8%3.0%3.3%3.5%3.8% Capital and risk management
Risk management is a key function at Tryg. The
assessment and management of Tryg’s
aggregated 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
determined by the Supervisory Board.
Tryg’s Supervisory Board defines the framework
for the company’s target risk appetite and
thereby 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.
Management’s review - Contents
Strategic and business risk
Definition
Strategy
Risk Management
Objectives and methods
Financial losses or lost opportunities due to
a lack of ability to carry out business plans
and strategies.
Tryg is one of the most successful non-life
insurance companies in Scandinavia.
The risk management policy adopted by the
Supervisory Board sets out tolerance limits
and guidelines for risk management.
This includes the risk of not being able to
adjust to changing market conditions in a
timely fashion.
Tryg has chosen to implement a
decentralised organisation 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 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 quarterly basis - thus providing
close monitoring of each business unit with
regard to their performance towards the
overall strategic objectives.
Annual report 2023 | Tryg A/S | 32
Management’s review - Contents
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 Board 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 permitted risk-taking.
Operational risk
Definition
Strategy
Risk Management
Objectives and methods
Operational risk is understood as the risk of
loss due to inadequate or failed internal
processes, people and/or system errors, or
as a result of external events.
The Supervisory Board sets out the overall
strategy regarding operational risk.
The operational risk policy adopted by the
Supervisory Board sets out tolerance limits
and general guidelines for operational risk.
This includes general guidelines for IT
security, physical security, compliance, fraud,
money laundering, contingency planning, and
model risk.
Ongoing identification, measurement,
management, monitoring and reporting on
risks and incidents potentially resulting in a
loss or a near loss for Tryg.
This is ensured by implemented methods
covering incident management, operational
risk self-assessments and internal controls
and through business continuity
management.
Annual report 2023 | Tryg A/S | 33
Management’s review - Contents
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
requirements, 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.
Tryg’s solvency ratio is a function of
developments in own funds and the solvency
capital requirement (based on the approved
partial internal model). Tryg has modelled the
insurance risk internally, 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,
reinsurance programme, investment mix and
overall level of profitability. The solvency ratio
was 197 at year-end 2023 compared to 201 at
year-end 2022.
The key components of Tryg’s own funds are
shareholders’ tangible equity, qualifying debt
instruments (both Tier 1 and Tier 2 debt) and
future profit. Own funds totalled DKK 14,998m
at the end of 2023 vs DKK 16,012m at the end
of 2022. The decrease was primarily driven by
an extraordinary share buyback of DKK 1,000m
announced in October in connection with the
Q3 report and fully deducted from own funds.
The decrease in own funds was partly offset by a
decrease in the solvency capital requirement
(SCR) which mitigated the net effect on the
solvency ratio.
Annual report 2023 | Tryg A/S | 34
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
2023, Tryg’s SCR was DKK 7,633m, down from
DKK 7,966m at the end of 2022. The lower level
is mainly explained by weakening NOK and SEK
exchange rates and a reduced equity exposure.
Tryg’s solvency ratio continues to display low
sensitivity towards movements in the capital
markets. Fixed-income securities represent
some 90% of Tryg’s invested assets, therefore
the highest sensitivity is towards spread risk,
where a widening/tightening of 100 basis points
would impact the solvency ratio by
approximately 12 percentage points. Lower
sensitivity is displayed towards equity market
losses and interest rate fluctuations.
Shareholders’ remuneration
The Supervisory Board regularly assesses Tryg's
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 return on own funds target (ROOF)
and the dividend policy. Tryg will pay a Q4
dividend per share of DKK 1.85 on 30 January
2023 after having paid a dividend for the first
nine months of DKK 5.55 per share, bringing the
total for the full year to DKK 7.40 per share.
In October 2023, Tryg announced a share
buyback of DKK 1.0bn. As per end of 2023,
approximately DKK 700m out of the total DKK
1bn has been bought back as per end of 2023.
TryghedsGruppen, Tryg’s largest shareholder, is
not participating in the buyback in order to
facilitate an overall increase in ownership of
Tryg following the acquisition of RSA
Scandinavia.
TryghedsGruppen owns 47,5%** of the shares,
with the ongoing 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 increasing
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.
Management’s review - Contents
Moody’s rating
Tryg has an “A1” (stable outlook) insurance
financial 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 leverage. Moody’s also
assigned an “A3” rating to Tryg’s Tier 2 debt and
a “Baa3” rating to Tryg’s Tier 1 debt. Moody’s
reconfirmed Tryg's rating in November 2023.
Own funds
(DKKm)
Solvency Capital Requirement
(DKKm)
Shareholder renumeration
(DKK per share)
Solvency ratio development
(%)
** Calculated excluding Tryg's own shares
*2021 DPS impacted by the higher number of shares at 653m (301m
end of 2020) following the DKK 37bn rights issue to fund the acquisition
of RSA Scandinavia.
Annual report 2023 | Tryg A/S | 35
7,9667,633Q4 2022Q4 202316,01214,998Q4 2022Q4 2023201200199194197Q4 2022Q1 2023Q2 2023Q3 2023Q4 20236.66.87.04.36.37.41.7OrdinaryExtraordinary2018201920202021*202220235,0001,000Buy-back DKKm2022/20232023/2024 Although Pillar II legislation is not effective until
2024 from a current tax
perspective, Tryg applies the exception to
recognising and disclosing information
about deferred tax assets and liabilities related
thereto.
An assessment based on the most recent tax
filings, country-by-country reporting and
financial statements for the constituent entities
in Tryg, i.e. financial year 2022, has been
prepared.
For information on Pillar II, reference is made to
the Financial Statement below.
Tryg Tax Universe
Taxes paid by Tryg do not only originate from
the core business. They arise during all parts of
our business cycle. Some are collected by us
and then paid to the local tax authorities. Others
are a direct result of our business or
investments.
Tax overview
Tax Policy
Tryg recognises the role that taxes play in
society and acknowledges that business must
have a responsible approach to handling tax
matters in order to ensure sustainable societies.
Tryg's tax policy is inspired by the GRI
Sustainability Reporting standard #207
regarding tax.
The Tryg Tax Policy governs all taxes paid by
Tryg including corporate income tax,
withholding taxes, insurance premium taxes and
consumption taxes, such as VAT.
The Tryg Tax Policy applies to all entities within
the Tryg Group and, to the extent possible, also
to investments made by Tryg.
For information on the Tryg Tax Policy, please
refer to our website at www.tryg.com
Income tax
The total tax bill was DKK 1,178m (DKK 804m),
corresponding to an effective tax rate of
approximately 23.4%. The tax rate is driven
primarily by tax-free investments in Norway and
non-deductible costs in across countries.
The effective tax rate for 2024 is expected to be
approx. 24% due to full implementation of the
new financial tax in Denmark and the weakened
currencies in Sweden and Norway.
Global minimum tax regime
Tryg is within scope of the OECD global
minimum tax regime rules, also known as Pillar
II.
All in all, Tryg paid a total tax contribution to
local Tax authorities of DKK 5,023m in 2023.
People
For further information on taxes, reference is
made to the Financial Statement below.
Vendors
VAT
Investments
Withholding tax
Transaction tax
Tryg Tax Universe
Insurance revenue tax
Stamp duties
Customers
Natural hazard tax
Road traffic insurance tax
Business
Guarantee fund tax
Corporate tax
Tax collected by Tryg
VAT
Natural perils pool
Payroll tax
Social changes
Management’s review - Contents
Taxes collected
are indirect taxes based on
the insurance premiums.
They are collected and paid
to the authorities by Tryg
Taxes paid
are taxes paid by Tryg
directly to the local tax
authorities.
T
a
x
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l
l
e
c
t
e
d
b
y
T
r
y
g
T
a
x
p
a
i
d
b
y
T
r
y
g
Tax authorities
Annual report 2023 | Tryg A/S | 36
Sustainability
statement
Table of contents
About the statement
Sustainability strategy and governance
Overview of 2023
Double materiality assessment
Environment
Climate impact
EU Taxonomy-aligned insurance and investment activities
Prevention and claims handling
Social
Creating an engaging and inclusive workplace
Responsible procurement
Protecting customers’ data
Governance
Responsible business conduct
Responsible investments
Task Force on Climate-related Financial Disclosures
Environmental, Social and Governance data
EU Taxonomy-aligned investments, breakdown of denominator
Accounting principles
Independent limited assurance report on ESG data
Reader's guide cf. sections 143, 144 and 146
38
39
41
42
43
47
50
52
56
58
60
62
64
65
72
76
81
83
Management’s review - Sustainability statement contents
Annual report 2023 | Tryg A/S | 37
About the statement
The sustainability statement
describes how Tryg is progressing
on its sustainability strategy and
targets, and how impacts, risks and
opportunities are managed.
Tryg has initiated the preparations for reporting
according to CSRD, and ESRS, by for example,
conducting a double materiality assessment.
The process and results are described in detail
on page 42.
This statement represents Tryg’s statutory
statement on sustainability, gender diversity and
data ethics in accordance with Sections 144,
143 and 146 of the Danish Executive Order on
Financial Reports for Insurance Companies and
Lateral Pension Funds. It comprises information
for communicating on progress to the UN
Global Compact and thus underlines Tryg's
ongoing commitment the Ten Principles on
human and labour rights, environment and anti-
corruption.
As of financial year 2024, Tryg is obliged to
report according to the EU’s Corporate
Sustainability Reporting Directive (CSRD) and
the European Sustainability Reporting Standards
(ESRS). The standards bring forward a number
of changes and new requirements to
sustainability reporting.
Management’s review - Sustainability statement contents
Annual report 2023 | Tryg A/S | 38
Sustainability strategy and governance
Management’s review - Sustainability statement contents
As the world changes, we make it easier
to be tryg1
Tryg has an ambition to be a proactive peace-of-
mind creator for its customers. Through its
insurance products, Tryg can help protect
customers against uncertainties related to e.g.
property damage, sickness or pregnancy.
Through prevention services and advice, Tryg
can help customers protect themselves better
against damage or injury. All claims are
inconvenient and stressful for our customers,
whether they relate to their car, home or
personal health. Resolving claims is,
furthermore, associated with high resource and
energy use. The most sustainable claim is the
one that does not occur. Prevention is therefore
a strategic priority for Tryg, who aims to
integrate prevention services or products into its
insurance offers. This way, Tryg is not only
creating peace-of-mind for customers but also
contributing positively to the environment and
society.
As the largest non-life insurer in Scandinavia,
Tryg provides insurance products, efficient
claims handling and advice and services for
preventing claims from arising in the first place
to its more than 5 million private and
commercial customers across Denmark,
Norway and Sweden.
Driving sustainable impact
Tryg’s 2024 sustainability strategy, ‘Driving
Sustainable Impact’, underlines the importance
of integrating sustainability into decision-
making throughout the organisation. Through its
three pillars: Responsible company, Green
workplace and Sustainable insurance, specific
1 'tryg' means feeling protected and cared for in Danish.
targets and initiatives are defined across every
aspect of Tryg’s activities. From practices
around sourcing, investments and claims
handling, to the climate impact of offices, the
impact on employees, to the type of products
and services delivered.
Specifically for products, this includes, but is not
limited to, activities around aligning products
with the criteria in the EU Taxonomy. Such
criteria cover the inclusion of sustainability
parameters in product design processes,
services and engagement with customers and
suppliers, all with the purpose of adapting
products to climate change. The alignment with
the EU Taxonomy builds on Tryg’s existing
sustainability efforts within prevention and
claims handling.
Sustainability policy [link]
Governance
The Corporate Governance section of this
report describes Tryg’s approach to Good
Corporate Governance. Read more on page 86.
Supervisory Board
The Supervisory Board is responsible for the
central strategic management and financial
control 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 composition and experience of the
Supervisory Board is described in the Corporate
Governance section on page 89.
Annual report 2023 | Tryg A/S | 39
To ensure that the capabilities in the
Supervisory Board correspond to the increased
focus on sustainability matters, specific
educational sessions have been conducted for
the Board in recent years. Matters such as the
EU Taxonomy, CSRD and climate ambitions
have been presented and discussed by the
Board.
The Supervisory Board has set up committees to
support the Board within specific areas, and to
ensure proper oversight. The committees
prepare matters for decision by the entire
Supervisory Board and report directly to the
Board. ESG is an integrated part of the work
performed by the committees and the
Supervisory Board.
Read about the composition and experience of
Tryg's Executive Board on page 93.
Sustainability & ESG Board
Tryg’s Sustainability & ESG Board drives Tryg’s
strategic direction on the sustainability and ESG
agenda.
The Board is chaired by Tryg's CFO, and is
composed of Vice Presidents from central
functions such as HR, Investments, Compliance,
Risk management, Supply chain, etc. to ensure
that the agenda is effectively anchored across
the organisation.
At quarterly meetings, the Board discusses
Tryg’s direction and specific initiatives and
recommendations. Furthermore, the
Sustainability & ESG Board approves the annual
sustainability reporting and projects prior to
final approval by the Executive Board and/or the
Supervisory Board.
The Executive Board is informed on a quarterly
basis about performance and progress on
targets and relevant initiatives. Tryg’s
Supervisory Board is kept informed about
strategy, risk, opportunities, initiatives and
progress on sustainability-related targets and
thus monitors and oversees the implementation
of the strategy and progress against targets.
Management’s review - Sustainability statement contents
Sustainability and ESG Board
Private
Commercial
Claims
Chair - CFO
Supervisory Board
Executive Board
Sustainability & ESG team
Communications
Procurement
HR
Legal /
Compliance
Facilities
Investments
Investor
relations
Risk
management
In 2023, the Sustainability & ESG Board has
addressed a wide range of issues such as the EU
taxonomy, integration of sustainability and ESG
into the business areas, ESG ratings and
reporting, ISO14001 certification and climate
action.
The quantitative targets are assessed on a linear
scale from 1 to 7. Most of the targets are
strategic for Tryg and are thus part of Tryg's
Capital Markets Day targets for the period up to
2024. For most of the targets, no external
benchmark exists.
Additionally, the Sustainability & ESG Board
receives a quarterly update on strategic KPIs
related to diversity, CO2e emissions and avoided
CO2e emissions from claims handling.
The sustainability & ESG target is composed of
avoided CO2e emissions from claims handling,
CO2e reduction from Tryg's own operations,
top-line growth from prevention initiatives,
diversity & inclusion, and employee satisfaction.
Integration of sustainability related
performance into incentive schemes
The Executive Board and a number of other
employees (depending on position in the
organisation) are covered by a variable salary
incentive programme (INP).
Performance is based on specific milestones
and thresholds within each of the categories.
The sustainability element of the total variable
salary constituted 15% in 2023.
Supervisory Board committees' oversight of ESG themes
Audit committee
Nomination committee
Remuneration committee
Risk committee
• Compliance with CSRD.
• Approval of double materiality analysis,
• Composition and size of Supervisory and
Executive Boards.
• Remuneration policy.
• Recommendations to variable salary
• Climate-related risks
• Monitor risk management system and assess
process and outcome.
• Non-financial assurance.
• Defines qualifications required for boards.
programme (INP) for Executive Board.
effectiveness.
Annual report 2023 | Tryg A/S | 40
Overview of 2023
The table outlines Tryg's Sustainability targets and 2023 performance.
Management’s review - Sustainability statement contents
a
e
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Sustainable insurance
Responsible company
Green workplace
Prevention and claims handling
page 50
Responsible procurement
page 56
Responsible investment
page 62
Diverse workplace
page 52
Climate impact
page 43
2024 targets
2023
2024 targets
2023
2024 targets
2023
2024 targets
• 80% increase in sustainable
29%
spend
Sustainability screening of
suppliers
• Up to 90% of contract
• 20,000–25,000 tonnes CO2e
of avoided emissions from
more sustainable claims
handling
21,208
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
66%
73%
50%
48%
2023
55%1
• 33% women at other
29%
• 35% CO2e reduction
management level (2026
target)
• 33% women at top
management level
27%
• 41% women at director level
26%
• 58% CO2e reduction from
89%2
energy consumption
• 12% CO2e reduction from
5%
waste
• 23% CO2e reduction from air
20%
• 41% women in management
41%
travel
positions
• 23% CO2e reduction from car
3%
fleet
2030
• 55% CO2e reduction
2023
55%1
2023
51.9%
2030 targets
• 50% CO2e intensity
reduction from equity
portfolio
• Exclusion of fossil fuel
production companies
with no strategy for
green transition
1 Market-based
2 Market-based and scope 2 only
Annual report 2023 | Tryg A/S | 41
Double materiality assessment
Tryg has performed a double materiality
assessment (DMA) to identify and assess
material ESG impacts, risks and opportunities.
In a DMA, materiality is assessed from both an
impact and a financial perspective.
A group of internal stakeholders has been
involved throughout the process to inform,
validate and assess the analysis. Where relevant,
some stakeholder groups have acted as proxies
for external stakeholders. Representatives from
the Finance and Risk management departments
have played central roles in helping to inform
the mapping of the value chain, the assessment
criteria and the anticipated financial effect of
identified risks and opportunities.
Understanding Phase I: Business model and
value chain
Based on a review of the organisational
structure, it was confirmed that the main activity
of Tryg is to provide insurance. This was valid for
all key aspects of the value chain. Impacts, risks
and opportunities are therefore only identified
under the insurance activity.
For investments, governance around
responsible investment practices was assessed.
This is primarily due to the fact that Tryg’s
investment activities are handled by external
managers, and because of the inherent
responsibility to select the right external
managers who can act in accordance with
Tryg’s guidelines and ambitions for returns and
ESG impact.
Claims handling is one of the central functions in
Tryg’s delivery to customers. For claims
suppliers, the analysis deep-dives on suppliers
within the largest types of claims, namely motor
and building.
Identification Phase II: Identifying impacts,
risks and opportunities
Impacts, risks and opportunities were identified
across ESRS topics, sub-topics and sub-sub
topics based on existing internal information.
Interviews with internal subject matter experts
were performed across relevant staff functions,
business areas and management. The identified
long-list was validated by a cross-functional
team of subject matter experts in a workshop.
The outcome was a final list determined valid for
the assessment phase.
Phase III: Assessing impacts,
risks and opportunities
To assess the materiality of the identified
impacts, risks and opportunities, initial
workshops were conducted to determine the
assessment methodology and to set initial
thresholds for, respectively, impact and financial
materiality. For both perspectives, the
Understanding
Identification
Assessment
DMA results &
reporting scope
Business model outline
Business model outline
Desktop research, peers,
Desktop research, peers,
stakeholders
stakeholders
Assessment of risks and
Assessment of risks and
opportunities
opportunities
Reporting requirements on
Reporting requirements on
mandatory disclosures
mandatory disclosures
Identification of impacts
Identification of impacts
Value chain mapping
Value chain mapping
Identification of risks and
Identification of risks and
opportunities
opportunities
Assessment of impacts
Assessment of impacts
Reporting requirements on
Reporting requirements on
material disclosures
material disclosures
Management’s review - Sustainability statement contents
methodology was aligned with the methodology
used by Tryg's Risk management.
Through bilateral engagements, subject matter
experts were consulted on the actual
assessment, which was finally validated at a
workshop with a cross-functional team.
Methodology
Impact materiality: Impacts have been assessed
according to severity (scale, scope and
irremediability) and likelihood – each on a 4-
point scale. For positive impacts, irremediability
was not considered, and similarly for actual
impacts, likelihood was not scored.
Financial materiality: Risks and opportunities
were considered in terms of their potential
effect on, respectively, cash flow, development,
performance, position, cost of capital and
access to finance. The expected financial effect
was assessed on a 4-point scale. Threshold was
set in line with the Risk management
procedures in Tryg. The anticipated financial
effect is estimated based on various sources of
input such as current targets, estimates and
assumptions.
Phase IV: Final validation and
senior level approval
To ensure senior level approval, the process and
analysis were reviewed by the Sustainability &
ESG Board, and hereafter the Audit Committee.
Both factions approved the process and the final
result.
The material impacts, risks and opportunities
are disclosed under the relevant topic
throughout the Sustainability statement.
Annual report 2023 | Tryg A/S | 42
Environment
Climate impact
Material impacts, risks and opportunities
Material negative and positive impacts and
opportunities related to climate and
environment have been identified in the double
materiality assessment (read more about the
process on page 42).
These impacts and opportunities relate to
prevention measures, claims handling,
customer portfolio and products. Each of these
are closely linked to the core of Tryg’s insurance
business: To reduce the number and size of
claims and to resolve claims using a minimum of
resources. An opportunity is identified in terms
of developing new products that can help
customers mitigate their respective climate risk.
Tryg’s current climate-related targets cover
emissions from direct activities as well as waste
and business travel by air. Additionally, Tryg
accounts for the footprint of its investment
portfolio and avoided emissions from more
circular handling of claims.
Management’s review - Sustainability statement contents
Commitment to minimise direct and indirect
negative climate impact
The Climate and Environmental policy outlines
Tryg’s commitment to ensure protection of the
climate and environment, including biodiversity.
The policy applies to all legal entities and
business areas in Tryg. It is reviewed annually
and approved by the Supervisory Board, and
builds on the principles of the UN Global
Compact, UN Sustainable Development Goals
and, for investments, the UN Principles for
Responsible Investment.
Tryg is committed to minimising both its direct
and indirect negative climate impact.
Recognising that the direct impact is limited,
Tryg remains committed to actively contributing
to climate change mitigation, energy efficiency
and renewable energy deployment through a
focus on minimising and managing energy
consumption, waste generation and employee
transportation.
In 2024, Tryg will continue its current work to
map and understand its full climate impact,
including scope 3 CO2e emissions, as defined by
the GHG Protocol. Establishing a baseline is key
for being able to monitor emission reductions
from external partners and for formalising an
ambitious target.
Climate and Environmental policy [link]
Annual report 2023 | Tryg A/S | 43
The climate
partnership of the
Danish Financial
sector
In 2019, the Danish government set
up thirteen climate partnerships
divided into industries that will
contribute to the government's
ambition of reducing Denmark’s
carbon emissions by 70% in 2030
compared with 1990.
The financial sector’s own emissions
are estimated to account for less than
0.1% of total Danish emissions. As a
result, the sector wants to contribute
to the Danish reduction target in four
areas:
1. Setting targets and monitoring the
reduction in customers’ carbon
footprints
2. Actively engaging with customers
3.
Integrating sustainability into
business models; and
4. Reducing emissions from the
financial sector itself
This information is available in the
Environmental sections on page
43, as well as in the ESG data tables
from page 65.
Embedding climate and environment across
the organisation
With around 7,9001 colleagues at more than 30
locations, Tryg is committed to contributing to
changing mindsets, actions and habits for
reducing its direct carbon footprint. This means
that Tryg works to make its offices more
environmentally friendly by focusing on energy
efficiency, waste reduction and segregation, and
changing employees’ transportation habits.
One important step towards this is making sure
that sustainability, climate and environment are
integrated across the organisation and in all
decisions taken. In 2023, Sweden and Norway
were certified according to the ISO 14001
standard. Denmark was certified in 2022.
Additionally, Tryg Norway maintained its
certification under the national Eco-Lighthouse
certification scheme, which focuses on the
environment and a safe working environment
for employees.
The certifications imply a highly systematic
approach to working with climate and
environment and will support Tryg in delivering
on strategy and ambitions while paving the way
for future climate considerations.
1 Headcount
Management’s review - Sustainability statement contents
Targets for reducing climate impact
Tryg has defined CO2e targets for its direct
emissions and emissions from waste and
business travel. By 2024 and 2030, Tryg has an
ambition to reduce emissions by 35% and 55%,
respectively, compared to the 2019 base year.
In 2023, Tryg emitted 4,180 tonnes CO2e
corresponding to a reduction of 55% relative to
the base year.
Since 2019, Tryg has covered 100% of its
electricity consumption through Renewable
Energy Certificates – RECs. Thanks to these
measures, combined with the move to more
energy-efficient locations and initiatives such as
the replacing of light sources with LED lighting
and other energy-saving activities, Tryg has
reached its target for 2024. Nonetheless, Tryg
continues its efforts to reduce its footprint.
Tryg’s operations can never become completely
carbon neutral through Tryg’s efforts alone due
to the mechanisms in the market, e.g., the
energy mix in district heating. In 2023, Tryg
compensated for the remaining unavoidable
carbon emissions through a carbon credit
project related to wind power in India, verified to
a Gold standard. The project is installing a
20MW wind farm composed of 25 windmills.
Expected annual production is approx. 34,000
MWh.
By investing in carbon credits, Tryg also
supports the local community, as the project
also supports Sustainable Development Goals
no. 3, 7, 8 and 13 through training of
employees, local safeguards, job creation and
health & education related activities for the local
communities.
Total CO2e reductions
Annual report 2023 | Tryg A/S | 44
58%55%35%202220232024 target The share of electric cars increased especially in
the second half of 2023.
increasing the number of charging stations at its
locations.
Management’s review - Sustainability statement contents
Tryg is also working to promote the use of more
climate-friendly cars among employees by
Focus on energy-efficiency and charging
stations
Energy consumption (scope 2) from offices
constituted approximately 12% of Tryg’s own
CO2e emissions in 2023. During the year, total
emissions from energy consumption (scope 2)
were reduced by 89% relative to the base year.
The primary reason for the decline is the move
to new and more space- and energy-efficient
locations in Malmö and Stockholm. Focus on
space- and energy-efficiency are central criteria
when Tryg scouts new locations. For instance,
Tryg's new state-of-the-art building in Malmö is
certified to Miljöbyggnad Gold, a Swedish
certification system where only the most
ambitious buildings meet gold level
requirements. Furthermore, the building is also
certified according to SGBC:s certification for
buildings with net zero climate impact, NollCO2.
locations in order to better sort the waste into
the different fragments and in that way reuse
more of our waste.
The relocations affected waste levels negatively,
yet as a result of the various initiatives, CO2e
from waste was reduced by 5% compared to the
base year.
Transportation
Transportation includes air travel and Tryg’s
Danish car fleet. Air travel accounts for 63% of
Tryg’s total emissions in 2023. Since the 2019
base year, emissions from air travel have been
reduced by 20%. Tryg remains focused on
keeping air travel to the absolute minimum, and
with improved collaboration platforms and
options for online meetings, it has become
easier to collaborate and connect across
national borders.
Waste management still needs attention
Waste generated at Tryg’s sites only accounts
for 3% of total emissions. However, Tryg
remains focused on the disposal and recycling
of the waste generated. As an example, in 2023,
following the major relocations in Malmö and
Stockholm, Tryg sold and donated a large
number of used desks, cabinets and bookcases
to charities such as Red Cross and Pentecostal
church. At the end of 2023, Tryg invested in new
waste handling equipment for its Danish
Relative to the baseline, there has been a
decrease of 3% in emissions from the car fleet.
In recent years, Tryg has had a granted increase
in the total cost of ownership (TCO) for
employees who selected an A+++ classified car.
In spring 2023, the car policy was updated so
the granted increase in TCO now only applies to
employees who select electric vehicles. The
results are already visible in the car fleet, where
93% of new cars are A+++ and approximately
half of these are electric.
CO2e reduction from energy (scope 2)
CO2e reduction from waste
CO2e reductions from air travel
CO2e reduction from car fleet
CO2e reductions relative to base year 2019
Annual report 2023 | Tryg A/S | 45
-2%
1%3%23%202220232024 target86%89%58%202220232024 target31%5%12%202220232024 target34%20%23%202220232024 target
Climate-related risks
The impact of climate change is significant and a
cause of concern for Tryg’s customers and for
society. It is anticipated that physical and
transitional climate-related risks and
opportunities may impact Tryg as a business in
both the medium and long terms. Inherent to
the insurance business is a strong focus on
managing and preventing claims related to
natural events such as flooding and storms.
Tryg monitors the potential effect of climate
change on the underwriting risk for its main
insurance products based on consensus UN
scenarios for future CO2e emissions and
increases in temperature. The forward looking
scenario-based approach is incorporated into
the pricing of products where relevant (notably
house insurance).
Climate-related risks are identified, measured,
managed, monitored and reported as part of
Tryg’s overall risk management system.
Tryg reports according to the recommendations
of the Task Force for Climate-related Financial
disclosures. See more on page 64.
Physical risks and opportunities
Extreme weather events such as flooding,
cloudbursts, storms, rising sea levels and
heatwaves represent physical risks, not only for
Tryg, but also for private households and
commercial companies, and there has been an
increase in the number of weather-related
claims across all of Tryg’s business areas. Tryg
monitors available data on adverse climate-
related risks and seeks to mitigate such risks to
the greatest possible extent.
Climate and weather-related claims
In 2023, Tryg’s expenditure for weather-related
claims amounted to DKK 1.274bn, which is an
increase from DKK 591m in 2022. Throughout
the year, there have been record-breaking
weather events at regular intervals e.g., Storm
'Hans', which caused severe flooding in Norway
and Sweden, hail storms in Northern Italy, the
once in a 100 years flooding in Denmark in the
autumn, and many more. More extreme
weather conditions can cause an increase in the
frequency of weather-related claims from all our
customers. This is accounted for in our financial
planning regarding e.g. underwriting risks and
reinsurance. Reinsurance is used to reduce the
underwriting risk in situations where this cannot
be achieved to a sufficient degree via ordinary
diversification – thereby capping the cost of
large and weather-related claims.
To prevent or minimise claims, Tryg advises its
customers on how to protect their assets from
environmental and climate-related damage.
Tryg works closely with local authorities to
prevent damage to buildings and assets, e.g., by
sharing data on areas that are most exposed to
weather-related claims.
In Norway, Tryg is partnering with UNI Research
AS on seasonal weather warnings. Based on last
year’s seasonal weather warnings and the
amount of snow on the mountains, Tryg warns
customers about increased flooding risks and
advises them on how to prevent damage caused
by flooding.
Tryg is also a partner in Climate Futures, a
Norwegian initiative aimed at co-producing new
solutions for predicting and managing climate
risks from ten days to ten years into the future
together with a cluster of partners in climate and
weather-sensitive sectors. By participating in
this project, Tryg gains knowledge that can
improve the value and relevance of its claims
prevention advice and actions for customers.
Transitional risks and opportunities
Climate-related issues are also associated with
the transition to a global low-carbon economy,
including regulatory, technological and societal
developments, which represent a range of risks
and opportunities for Tryg as a business.
Regulation
One of the main transitional risks is associated
with developments in climate-related policies
and regulation. This includes the
implementation of national carbon taxes or the
tightening of energy efficiency standards.
Despite having a relatively limited direct
footprint, the introduction of regulation and
policies on climate-related matters, e.g., carbon
tax or increased compliance and reporting
requirements, will have implications for Tryg.
Adaptations, training and controls are needed to
stay compliant and competitive.
Claims handling
From an opportunity side, the transition to a
low-carbon economy will enable Tryg to
implement a more circular approach to
resolving claims. As an insurance company, a
large share of our indirect carbon emissions
derive from claims handling. More circular
Management’s review - Sustainability statement contents
thinking in terms of using used spare parts or
repairing instead of replacing, enables Tryg to
contribute to a low-carbon economy while
solving customers' claims using fewer
resources.
Read more about Tryg’s circular mindset in
claims handling on page 50.
Products and services
Similarly, continuous technological
developments, more advanced knowledge and
more sophisticated data enable Tryg to improve
its claims prevention measures and develop
better climate adaptation, resilience and
insurance risk solutions. By contributing to the
prevention of climate and weather-related
claims, Tryg can offer relevant products and
services to customers. Tryg has established an
approval process for new products involving
relevant Group functions such as Legal,
Compliance, Risk and Sustainability in
evaluating, among other perspectives, climate
risks and opportunities.
Investments
To mitigate the risks associated with our
investment portfolio, Tryg monitors the carbon
footprint and climate-related risks associated
with its investments. The equity portfolio is
characterised by low exposure to climate-
related transitional risks. Going forward, Tryg
will seek to further expand monitoring of
climate-related risks and include a larger portion
of our investment assets in the analyses.
Read more about responsible investment
practices at page 62.
Annual report 2023 | Tryg A/S | 46
Environment
EU Taxonomy-aligned insurance and
investment activities
Management’s review - Sustainability statement contents
For the first time, Tryg is reporting on the share
of ‘taxonomy-aligned’ insurance and investment
activities.
The EU Taxonomy is considered a lever for
future-proofing Tryg's business by enabling and
protecting customers against climate-related
risks.
In 2023, work has been done to establish a solid
foundation for being able to develop and adapt
products, as well as measure and report on the
Taxonomy-aligned insurance and investment
activities in Tryg .
This reporting is based on Tryg’s best
understanding of the requirements set out in the
legislation and associated guidance at the time
of preparing the reporting. Tryg will continue to
follow the regulatory developments closely.
Norway and Sweden.
Preparing customers for climate change
Substantial progress was achieved in 2023,
when Tryg’s different business areas and
relevant staff functions were actively engaged in
a Group-wide project pursuing efforts to align
eligible insurance activities in Denmark,
As of 31 December 2023, 83% of Tryg’s
insurance activities are Taxonomy-eligible but
not aligned – confirming that Tryg has
significant opportunities to substantially
contribute to the EU’s environmental objective
for climate change adaptation going forward.
EU Taxonomy - Insurance activities
Substantial contribution to climate
change adaptation
2023
2022
DNSH
(Do No Significant Harm)
tDKK
Economic activities
A.1 Non-life insurance and reinsurance underwriting
Taxonomy-aligned activities (environmentally sustainable)
A.1.1 Of which reinsured
A.1.2. Of which stemming from reinsurance activity
A.1.2.1 Of which reinsured (retrocession)
A.2 Non-life insurance and reinsurance underwriting
Taxonomy-eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities)
B. Non-life insurance and reinsurance underwriting
Taxonomy-non-eligible activities
Total A.1 + A.2 + B)
Absolute
premiums
Proportion of
premiums
Proportion of
premiums 2022
Climate change
mitigation
Water and
marine
resources
Circular
economy
Pollution
Biodiversity
and
ecosystems
Minimum
safeguards
Currency
%
%
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
3,572,278
220,250
9.8 %
0.6 %
Y
Y
Y
Y
30,436,547
83 %
90 %
2,645,281
36,654,106
7 %
100 %
10 %
100 %
Data sources for the Taxonomy-eligible, non-eligible and aligned insurance activities are accounting data, retrieved from Tryg's registers in accordance with requirements set out in the Solvency II regulation and external data sources such as the NACE-code
classification.
A1: GWP for Taxonomy-aligned activities within a given product group has been used for the calculation at the end of the financial year 2023. The GWP data from Taxonomy-aligned activities is included in
the alignment ratio once the Taxonomy-aligned product is available for customers.
A2: Tryg's economic activities are segmented according to the categories defined in the Climate Delegated Act to assess taxonomy eligibility. For each product category, it is examined whether the insurance products provide cover for climate-related risks as defined
by the EU Taxonomy. Once an insurance policy does not explicitly exempt all climate-related events from coverage, it is concluded that the insurance product encompasses climate-related cover, and the full gross written premium of the product category is reported
as taxonomy eligible.
Annual report 2023 | Tryg A/S | 47
Going forward, alignment with the Taxonomy
will be considered as part of Tryg’s product
development processes. Tryg expects to align
more insurance activities with the EU Taxonomy
and to explore and pursue any commercial
opportunities within climate change adaptation
over the coming years.
change scenarios adopted by the UN’s
Intergovernmental Panel on Climate
Change (IPCC). Tryg will continuously
work with the data and techniques to
maintain the state-of-the-art standard
going forward.
Substantially contribute to climate change
adaptation
In 2023, Tryg adapted its first insurance
products to be aligned with the EU Taxonomy.
Specifically, this covered house insurance and
property insurance activities in Denmark,
Norway and Sweden. Additionally, Norway also
included boat insurance.
Taxonomy-aligned activities are the share of
Tryg’s insurance activities that meet the
technical screening criteria outlined in the
Taxonomy regulation, i.e. activities that
substantially contribute to climate change
adaptation, do no significant harm to climate
change mitigation, and comply with the
minimum social safeguards.
DKK 3.57bn, corresponding to
9.8% of total insurance activities,
are aligned with the
EU Taxonomy as of
31 December 2023.
State-of-the-art modelling techniques
In Tryg’s risk modelling, climate risks are
modelled separately from other risks in the
product and each cover is priced separately. To
assess the impact of climate change on pricing
and future claims, Tryg incorporates historical
internal data sources in combination with
external weather sources and climate
projections on the forward-looking RCP1 climate
Incentives for customers to prevent
climate related damage
For 2023 alignment, Tryg has ensured
that each Taxonomy-aligned product
includes a risk-based incentive for
preventative actions to encourage customers to
reduce the risk of water-related damage to their
house or property following extreme weather-
related events, such as cloudbursts. Specifically,
customers are offered a reduced premium or
can avoid the deductible if they install specific
devices that prevent water-related damage. In
Norway, boat insurance customers are offered a
reduced premium if the boat is protected during
the winter season, e.g., stored inside.
Tryg communicates to customers about the
importance of preventative measures and
informs about incentives and the impact that
preventing climate-related damage can have on
their insurance coverage via various
communication channels e.g. SMS, email or
through the claims handling processes.
As part of the ongoing work with the EU
Taxonomy, Tryg will seek to identify any
potential new and appropriate preventive
measures and integrate these into the pricing
and product design as well as customer
communication.
Coverage of relevant climate-related risks
Tryg has reviewed the coverage of the relevant
climate-related perils and documented the
customers’ demands and needs of coverage in
Management’s review - Sustainability statement contents
products related to house, property and boat
insurance across Denmark, Norway and
Sweden.
The analyses have been carried out based on an
evaluation of climate-related damage covered
by Tryg or by other relevant insurance pools
such as Naturskaderådet in Denmark and the
Norwegian Natural Perils Pool, as well as an
assessment of customers’ actual and stated
needs and concerns.
The analyses have included relevant claims
data, scenarios on climate change risks,
interviews with claims handlers and sales
departments as well as customer surveys. To
ensure that Tryg is also able to meet customers'
future needs and demands, Tryg expects to take
relevant customer insights into consideration.
Sharing climate-related claims data
Tryg’s focus on prevention includes improving
data quality to understand and provide the
authorities with better tools for identifying risks
and vulnerabilities, developing adaptation
strategies and planning relevant measures to
help both customers and public authorities. Tryg
has prepared for sharing such claims data, and
will upon request and free of charge share
claims data with public authorities for the
purpose of analytical research.
Helping customers through large-scale
climate events
Various contingency plans are in place across all
countries and business units and ready to be
activated in case of a large-scale climate or
weather-related event. Claims handlers
regularly go through an internal training
programme that enables them to always handle
claims in accordance with applicable laws,
including after large-scale natural disasters.
Recently, Tryg’s contingency plans were
activated in connection with storm Hans in
Sweden and Norway in the late summer of
2023, confirming that Tryg provides a high level
of service in post-disaster situations.
Do no significant harm
Taxonomy-aligned activities must not cover
insurance of the extraction, storage, transport or
manufacture of fossil fuels (coal, oil and gas), or
insurance of vehicles, property or other assets
dedicated to such purposes. Tryg has used
applicable NACE codes relevant for this criteria
to identify these activities. Based on data
available, Tryg has excluded the relevant
activities from the numerator in the calculation
of its Taxonomy aligned activities.
1 The IPCC has defined several representative concentration scenarios, the RCP scenarios (Representative Concentration Pathways),
which are a measure of how much the climate is affected by an increased concentration of greenhouse gases in the atmosphere.
Annual report 2023 | Tryg A/S | 48
Comply with minimum social safeguards
Tryg's compliance with the OECD Guidelines for
Multinational Enterprises and the UN Guiding
Principles on Business and Human Rights is
embodied in Tryg’s Code of Conduct, Supplier
Code of Conduct as well as Tryg’s Human and
labour rights policy.
Tryg has established human rights due diligence
processes, which are carried out in relation to
own workforce, customers and suppliers.
Read more about how Tryg works with human
and labour rights due diligence across its value
chain on page 60.
Finally, Tryg has anti-corruption processes in
place, a governance setup on taxation, and
screens commercial customers and suppliers
for compliance with international standards.
Furthermore, Tryg promotes employee
awareness and trains senior management in the
importance of compliance with applicable
regulation. Tryg has a whistleblower scheme in
place for both external parties and employees to
raise concerns regarding unlawful or unethical
behaviour.
Taxonomy-aligned investments
As the largest non-life insurance company in
Scandinavia, Tryg manages a large amount of
investment assets. Most of Tryg’s assets are
invested by external managers. At fund level,
Tryg seeks to select funds that are either SFDR
Article 8 or 9 whenever possible – or funds that
can demonstrate an equivalent level of ESG-
integration (especially relevant for non-EU
funds). Other ESG features are also evaluated,
including Taxonomy alignment.
Total Taxonomy-alignment - Investment activities
The weighted average value of all the investments of insurance or reinsurance undertakings that are directed
at funding, or are associated with Taxonomy-aligned economic activities relative to the value of total assets
covered by the KPI, with following weights for investments in undertakings per below:
Turnover-based:
0.13 % (of assets covered by the KPI)
Turnover-based:
76,586,090 DKK
Capital expenditures-based:
0.17 % (of assets covered by the KPI)
Capital expenditures-based:
100,885,395 DKK
Assets covered by the KPI relative to total investments of insurance or reinsurance undertakings (total
AuM). Excluding investments in sovereign entities.
Coverage ratio:
93.59 % (of total AuM)
Coverage:
59,571,978,828 DKK
A variety of data sources have been used for the calculation of Taxonomy-aligned assets under management. Data sources
depend on the asset class, and methodological differences may arise across these sources. For listed equity and corporate
bonds, a dataset containing reported EU Taxonomy data from the companies is used. For unlisted assets held via funds,
external manager reporting is used as a basis.
Assets for assessment
The economic activities concerning the total
investment assets of Tryg have been
categorised pursuant to the Climate Delegated
Act – including Annexes 1 and 2, as such
activities could be related to climate change
mitigation and/or climate change adaptation.
Tryg performs investments in a variety of asset
classes, and a description of data and
calculation method is described in the text box.
Disclosures are based on available data
obtained from Sustainalytics for the purpose.
Management’s review - Sustainability statement contents
Listed equities, REITS and corporate bonds: Most
of these asset class exposures are held through
funds. The underlying holding of the funds are
aggregated, and the third-party data set is applied
to the underlying holdings. Only reported data
from the companies is used. Currently, very few
companies have reported on the EU Taxonomy.
Covered Bonds: EU taxonomy eligibility is
evaluated using NACE codes provided by the EU
Taxonomy Compass. Currently, Tryg does not
have data available to evaluate Taxonomy
alignment, and eligible exposures are considered
non-aligned as a precautionary assumption. Part
of the holdings are invested in green bonds, but
Tryg only considers a green bond Taxonomy-
aligned, if the bond is considered eligible (in NACE
code screening). This is a precautionary
assumption until data quality is considered high
enough.
Sovereign, supranational and agency bonds:
These assets are not included in the calculations
of the KPIs. Part of the holdings are invested in
green bonds but are also considered non-aligned
as a precautionary assumption until data quality is
considered high enough.
Derivatives: Holdings include primarily fixed-
income derivatives, and equity derivatives to a
lesser extent. These assets are not included in the
calculation of the KPIs.
Real Estate: Most of these asset class exposures
are held through funds, while a minor portion is
held directly. All exposures have been determined
to be fully Taxonomy-eligible. Fund reporting data
is used to calculate the relevant KPIs (alignment).
For directly held real estate, Taxonomy alignment
data is currently not available and is assumed
non-aligned in the reporting.
Other unlisted exposures: The exposures include
unlisted infrastructure, unlisted credit and private
equity held through funds and directly held
unlisted equity positions. Fund reporting data is
used to calculate the relevant KPIs. For directly
held equity positions, Taxonomy alignment data is
not currently available.
Annual report 2023 | Tryg A/S | 49
Environment
Prevention and
claims handling
Tryg has an ambition to be a proactive peace-of-
mind creator for our customers by for example
integrating claims prevention measures into our
products and services. This is a way of
preventing claims from arising in the first place
or minimising any damage or loss that might
occur. In addition to the comfort this provides to
our customers, it also has both an
environmental and social upside.
With more than 1.7 million claims per year, the
financial, social and environmental impact of
claims is significant. Particularly in terms of the
use of resources for replacing broken items
with new ones, or in terms of the impact on the
healthcare system in the case of an injury.
Claims handling is the core of Tryg’s delivery to
customers and – from a sustainability
perspective – among the most resource-
intensive activities in the value chain.
Central to Tryg’s business model is therefore a
focus on prevention. By preventing claims from
happening in the first place, by reducing the
apparent risk or putting in place monitoring
mechanisms for early detection, Tryg can
positively impact the number and size of claims
and thereby the climate impact and resource
use from replacing broken or stolen items.
Prevention initiatives are integrated across
numerous products today.
As part of the house insurance
for homes specifically classified
as high risk, an automatic water
switch is offered to detect water
leaks and avoid water damage
from broken pipes.
Prevention is identified as a material positive
impact and opportunity for Tryg, a key focus
area across the business lines, and one of the
technical criteria for classifying a product as EU
Taxonomy aligned. As part of Tryg’s corporate
strategy, claims prevention in products and
services should make up a quarter of Tryg’s
sales from new products and services.
Claims handling
When claims do occur, Tryg is committed to
making sure they are handled in the most
sustainable way possible. Tryg aims to integrate
circularity principles in the claims handling
process by preserving what can be preserved,
repairing what can be repaired, and reusing
what can be reused, thereby leaving the least
possible strain on the planet's resources.
Another key aspect is to integrate a social
principle through continuous capacity building
and knowledge sharing across the supply chain.
Pushing for a shift away from the traditional
replace-with-new towards a repair- and reuse-
mindset can take time, and ensuring that
customers follow this journey is critical. Tryg has
set a target for customer satisfaction covering
the processes from onboarding to claims
handling. Making sure that customers are well
informed and understand the rationale and
impact of working with claims from a more
circular mindset is one of the success criteria for
this.
Circular mindset around claims handling
The largest group of claims suppliers to Tryg is
in the categories Motor and Building. Especially
within these categories there is a great potential
for more circular thinking about how claims are
managed and to push for a greater focus on
repairing and reusing.
Even small improvements in the way individual
claims are handled can have a significant impact
if applied across the category over the course of
a year. As a result, a circular mindset is
integrated into the claims process, and Tryg is
working to reduce material usage and to prolong
the life cycle of materials in general. The focus is
on repairs and on reducing material usage while
researching possible ways of reusing or
repurposing materials that are reaching the end
of their life cycle.
The task is not simple, as it involves a change of
mindset not only in the way Tryg handles claims,
but also in the way suppliers operate, and in
terms of customers’ perception of value. In this
sense, Tryg is on a mission to convey the
benefits of working in a more circular way with
materials and product life cycles.
Management’s review - Sustainability statement contents
Proactively partnering with claims suppliers
Tryg has assumed the role of a proactive partner
who, in close collaboration with suppliers and
partners, seeks to take the most sustainable
approach to claims handling. This implies
continuous investigation and implementation of
more climate-friendly initiatives. Tryg’s
procurement team engages in dialogue with
suppliers on sustainability on a regular basis and
is currently in the process of finalising a
catalogue covering a wide range of sustainable
claims handling projects, which can serve as a
common language for sustainability and
innovation when engaging with suppliers.
During the year, the internal process for
qualifying initiatives as ‘sustainable’ was further
strengthened with the launch of a Sustainable
Initiative Platform (SIP), a gate model process
flow to ensure a structured gate signing process.
This enables Tryg to quality check the potential
and data of any new circular initiatives. To
understand the avoided CO2e emissions from
claims handling, the qualified initiatives are
assessed based on life cycle principles.
Annual report 2023 | Tryg A/S | 50
Avoided emissions from claims handling project
Motor
Used spare parts
Repairing of windshields
Road assistance by phone-fix service
Electrical rental cars (Leiebil)
Repairing of plastic car bumpers
Repair of headlights
Repair of rims
Repair of car bodyparts
Use of biofuels in marine services
Repair of caravans
SMART-repair
Paint inhouse
Photo inspection
Health & Pet
Online medical consultations (Tryg Lægehjælp -DK and Helsetelefonen - NO)
Online veterinarian consultations (firstVet)
Online physiotherapy help (1)
Online psychological help (Videobehandling Psykolog Norge)
Building
Remote monitoring of building claims
Reduction of transport related to inspection activities
Conservation of building foundations & building materials
Repair of windows & doors
Reuse of tiles
Partiel repairs of parquet floors
Reduce the use of building materials
Smart-repair of pipes
Multiseal
Content
Repairing phone screens
Refurbished options (2)
2023
tCO2e
9,266
3,591
97
1,305
1,425
189
390
3,700
1
56
5
8
74
260
36
0
4
14
40
161
54
87
71
33
2
12
264
63
Total CO2e reduction from claims handling process
21,208
(1) This is a newly established project, and no cases have been closed in 2023.
(2) Formerly called SWAP options.
Progress on CO2e claims emissions target
Tryg has a target to avoid CO2e from claims
handling by 20,000 – 25,000 tonnes by the end
of 2024.
Motor claims are currently where Tryg is seeing
a real impact from its efforts to push towards
circularity, as windshields, car bumpers, rims
and headlights can be repaired with good
results. Additionally, the auto repair shops that
Tryg collaborates with are increasingly using
recycled spare parts to repair the cars. There
has been an explicit focus on repair techniques
in 2023. This has resulted in an increase in the
number of repairs of parts like rims, bumpers
and headlights on cars. Next year, Tryg will
focus on building capacity and training suppliers
on sustainability topics.
In 2023, Tryg assessed avoided emissions on
new initiatives such as online services that
provides digital physiotherapy and
psychological help, collaboration with
multiservice suppliers as well as online tools for
claims inspection activities. This is a means to
avoiding transport-related emissions when
possible. Additionally, Tryg has collaborated
with suppliers on providing electric instead of
fossil fuel vehicles as loan cars for a claims
handling process.
As a result of these efforts, Tryg has avoided
21,208 tCO2e emissions in 2023
Sustainable spend
Closely connected to solving claims from a
more circular mindset, is the classification of
spend used on more sustainable practices. This
requires working towards the use of more
sustainable solutions available in the market, as
well as more ways of handling claims using
fewer resources.
Management’s review - Sustainability statement contents
Our ambition is to increase claims spend
classified as sustainable by 80% in 2024
compared to 2020. The evaluation and
classification of sustainable spend is based on
the performance of our sustainable claims
handling initiatives.
In a field that is continuously developing, Tryg
has updated the methodology for the
calculation of sustainable spend as a result of
more sophisticated and accurate
methodologies. Read more in the Accounting
principles on page 76. The update has affected
performance negatively, and the share of spend
classified as sustainable in 2023 was 29%. Tryg
does therefore not expect to be able to reach
the 2024 target but will, regardless, continue its
efforts to work for more sustainable claims
handling processes.
17,839t
21,208t
25,000t
Avoided CO2e emissions (tonnes)
Sustainable spend (%)
- volume adjusted results
Annual report 2023 | Tryg A/S | 51
17%21%25%202220232024 target22%29%80%202220232024 target Social
Creating an engaging
and inclusive workplace
Management’s review - Sustainability statement contents
Material impacts, risks and opportunities
Potential negative material impacts are
identified in terms of employee data handling,
gender pay gap, harassment, diversity and
work/life balance. Each of these can potentially
impact Tryg’s ability to attract and retain
employees, and to deliver on targets – and all
areas are central elements of Tryg’s existing HR
focus. On the positive side, Tryg can have a
positive impact on employees by creating a
workspace where purpose, flexibility and
influence are key words. Diversity & inclusion
are also considered material as a central
strategic priority for Tryg.
Tryg as you are
Tryg is committed to providing a healthy and
engaging working environment. Securing the
well-being of employees is critical for creating
an attractive workplace where people thrive and
can perform at their full potential.
Under the tagline ‘Tryg as you are’, Tryg strives
for a company culture where everyone feels
equally included. A diverse pool of employees
and managers with different backgrounds, skills
and experiences that reflect the society we live
in is assumed to better understand and match
the changing needs of Tryg’s diverse customers.
Moreover, this is also a prerequisite for Tryg
being able to attract and retain the full pool of
talent.
Tryg’s Human and Labour rights policy guides
the overall commitment to creating a company
culture where everyone is treated with equal
dignity and respect. All employees must comply
with Tryg’s Code of Conduct (CoC), which,
among other themes, describes the
commitment to respect human and labour
rights, and the expectations for employees in
this regard. Regular training is conducted to
ensure that employees know and understand
the different themes of the CoC.
Tryg’s policy for the underrepresented gender
describes its commitments and efforts tor be an
including workplace offering equal
opportunities for all genders. The long-term
objectives include:
•
to promote awareness of and attention to
equal treatment and equal opportunities for
women and men;
to achieve a representation of women in
management at all levels that reflects the
overall distribution of women and men in
Tryg, and;
to promote equal pay and equal
opportunities for women and men
performing the same job or a job of the
same value.
•
•
Human and labour rights policy [link]
Policy for the underrepresented gender
[link]
Sustainability policy [link]
Tryg Code of Conduct [link]
Annual report 2023 | Tryg A/S | 52
be seen. Invisible disabilities can for example be
mental illness, chronic pain or anxiety, or visual,
voice or hearing impairment.
As the first insurance company in the Nordics,
Tryg has implemented the programme as an
offer to Tryg’s employees and customers. For
customers, a special hidden disabilities
sunflower phone line has been created to
support customers with special needs. All
customer-facing employees have been trained
to answer ‘sunflower’ calls, where patience,
extended explanations or emotional support
might be needed.
Employees and guests visiting Tryg’s Danish
offices can choose to wear the hidden
disabilities sunflower lanyard to signal that they
might need help, support, patience or more
time.
A Tryg sunflower network enables employees to
engage in the area and discuss how Tryg can
create the most suitable conditions for all. It can
be difficult to fully understand the challenges
that colleagues with invisible disabilities face,
which can lead to structures or behaviour that
are not inclusive or where people do not feel
safe. The network can help Tryg identify blind
spots where further action is needed to ensure
optimal conditions and well-being for all
employees. The network meets every other
month.
Dedicated strategy to advance on diversity
and inclusion
To create a diverse and inclusive organisation,
Tryg has a dedicated strategy that works on a
number of parameters.
Creating an inclusive workplace
In order to create an inclusive workplace with a
diverse representation of ethnic origin, gender,
age, sexual orientation, health status,
disabilities, political opinion, religious beliefs or
other needs, understanding is key.
In 2023, Tryg entered into a partnership with the
Pride organisations in Copenhagen and Bergen.
Across the two locations, approximately 500
Tryg employees, families and friends
participated in the Pride parades.
Tryg’s LGBT+ network works to further advance
inclusion by creating a forum for discussing and
engaging around LGBT+ employees’ conditions
and well-being. The network meets every
quarter to discuss specific conditions, barriers,
and other issues around being an LGBT+ person
in order to ensure the each has the abilities to
explore their full potential in Tryg. In connection
with the Pride parade, the network and Tryg
hosted events to further shed light, educate and
involve colleagues in the agenda.
Making the invisible visible
With the purpose of making the invisible visible,
Tryg has introduced the Hidden Disabilities
programme in Denmark. The Hidden Disabilities
Programme is an international programme with
the purpose of ensuring inclusion of people with
invisible disabilities and special needs.
Living with an invisible disability can make
everyday life demanding, and other people can
have difficulties understanding and
accommodating the challenges, as they cannot
Management’s review - Sustainability statement contents
91%
At Tryg, I can be who I am
92%
At Tryg, there are equal opportunities
for all (despite gender identity,
age, ethnicity, sexual orientation,
religion, disability etc.)
90%
My direct manager makes sure
everyone in the team is being heard
and feels included
Strong feeling of inclusion
among employees
The annual employee engagement survey
includes specific questions about inclusion.
Similar to last year, these questions receive the
highest scores across all categories, which is a
strong signal that employees feel safe being
their true self at work and that they experience
equal opportunities for all. The employee survey
is conducted ones a year in August/September.
Annual report 2023 | Tryg A/S | 53
Management’s review - Sustainability statement contents
Mandatory by law
Strategic internal targets
Women in management
To increase the share of women in management
positions, Tryg has defined targets for different
levels of management (see definitions in the
Accounting Principles). This also includes the
lower levels of management as a means for
building up the talent pool.
For both top and other management levels, Tryg
has a target to increase the share of women to
33% by respectively 2024 and 2026. In 2023,
the share of women in top management
increased from 25% in 2022 to 27%. At other
management levels the share of women
decreased from 31% to 29%. The decrease is
considered a result of general employee
turnover and a slight overweight of male in new
recruitments. Tryg remains confident to reach
the 2026 target.
At director level, the target is that women make
up 41% . In 2023, women constituted 26% in
2023, down from 31% in 2022.
Tryg will continue its focus on increasing the
gender balance in senior leadership to ensure
that we progress on our ambitions and are on
track towards the target.
Across all managers, Tryg has reached its target,
with 41% women in leadership.
Tryg’s Supervisory Board has a gender
distribution that is considered equal under
Danish legislation, with three of nine (33%) non-
employee elected members being women.
No specific target is therefore defined.
Annual report 2023 | Tryg A/S | 54
Ensuring diversity in leadership
Tryg works actively to promote diversity in
management teams. A management team is
considered diverse when it has a minimum of
two out of the following three parameters:
Gender, age and experience. The latter means
that Tryg distinguishes between and values
experience from a combination of insurance
and other industries.
In 2023, Tryg continues its focus on identifying
and developing a strong pipeline of female
leaders and managers for the upper levels of
management, where female representation is
lower. Among the initiatives are talent reviews
and succession plans, equal conditions of
maternity/paternity leave for women, men and
co-parents, flexible working hours and
alternating career choices, annual gender-
segregated statistics of earnings and quarterly
reporting on gender diversity across all
management levels.
Tryg promotes diversity through a consistent
focus in the recruitment process. Among the
initiatives are external candidate searches for
management positions in cases where the level
of diversity in the pool of applicants is too
limited. In Denmark and Norway, Tryg has a
stringent recruitment and approval process in
place when recruiting for leadership positions to
ensure a gender-balanced population. All
recruitment partners are trained in ensuring
inclusion and minimising bias in the recruitment
process.
Tryg has a gender-neutral remuneration policy
and strives for equal pay. However, it is
acknowledged that Tryg has not yet
accomplished a complete gender pay balance.
Tryg works purposefully to improve data and
analyses to better understand where there are
differences as well as their respective root
causes. To reduce inequality, Tryg regularly
launches initiatives with that aim to minimise
structural differences. Tryg has recently
introduced equal parental opportunities for men
and women, which is expected to have a
positive impact on equality in Tryg.
31%29%33%Other management levels202220232026 target25%27%33%Top management 202220232024 target31%26%41%Directors 202220232024 target41%41%41%All management positions 202220232024 target Engaging with employees
Employee engagement survey
Tryg wants to ensure close alignment and
understanding of the motivation, engagement,
and well-being of employees in order to be able
to create the best possible workplace. During
the year, Tryg completes employee engagement
surveys to enable employee feedback and
dialogues around issues that can be improved.
The survey is an important tool for Tryg to be
able to deliver its financial results, but also for
individual employees to ensure they have the
best possible conditions for fulfilling their work.
The annual survey is conducted in the autumn,
and a short pulse survey mid-year. The survey is
performed by an external provider and covers
themes such as engagement, motivation,
management, team collaboration, working
conditions, payment and terms of employment,
training and development, harassment and
psychological working environment.
The result of the 2023 survey showed a
continuous high level of engagement at 79 out
of a maximum of 100, well above the Nordic
industry benchmark of 75. The high level of
engagement is consistent across business
areas, gender, age and seniority.
Engagement with trade unions
To facilitate dialogues across trade unions and
employee organisations, works and
communication committees are established at
regional and Nordic level, respectively. The
purpose of the committees is to promote
mutual understanding and acceptance through
open dialogue and information exchange across
the organisation.
The committees are composed of members of
the leadership, HR leadership, employee and
union representatives. Among topics discussed
Management’s review - Sustainability statement contents
and/or negotiated in 2023 are: Organisational
changes, terms and conditions related to
workforce reduction, changes to employee-
related policies, employee engagement, career
development, and diversity and inclusion
initiatives.
Employees can raise concerns
Employees in Tryg can at any time raise
concerns with their direct manager, staff
representative, occupational health and safety
representative, HR, or use Tryg’s anonymous
whistleblower hotline.
Read more about the whistleblower hotline on
page 60.
In 2023, 14 cases regarding harassment were
reported to and investigated by HR. Three cases
led to resignations, eight to a warning, two were
dismissed and one is still being investigated.
Tryg has zero tolerance for harassment, as
expressed in its Code of Conduct. Avoiding
harassment is a priority and has the full
attention of management. Great effort is
invested in preventing cases occurring in the
first place through, for example, leader
communication and internal meetings. If it
occurs, the HR team is determined to ensure
proper process and clear consequences for
inappropriate behaviour.
79
79
75
Annual report 2023 | Tryg A/S | 55
Employee engagement 20222023Nordicindustrybenchmark Social
Responsible procurement
Material impacts, risks and opportunities
Tryg has a positive impact by pushing for and
teaching suppliers about more circular practices
for solving claims - i.e., by repairing and reusing.
Potential negative impacts are identified in
terms of working conditions and health and
safety procedures at claims suppliers. The
scope of workers in the value chain is limited to
workers in the two largest groups of claims
suppliers – namely workers in auto repair shops
and workers in construction or craftsmen. The
potential negative impacts are considered
widespread in the industries.
Read more about how Tryg push for change in
its claims handling processes on page 50.
A responsible purchaser
Tryg is a large buyer with an annual total spend
of more than DKK 27bn. A large spend can
create a high impact, so sustainability is
therefore an integrated part of the procurement
processes. Tryg aims to be a responsible
purchaser and live up to the highest standards
of responsible procurement as expressed in
Tryg’s Supplier Code of Conduct (Supplier CoC).
The Supplier CoC expresses the requirements to
suppliers and partners for sustainable and
responsible business conduct. It is based on the
UN Global Compact’s ten principles and
specifically outlines requirements within
business ethics, environment, working
conditions and employment practices, human
rights and health and safety. Repeated or
serious violations of the requirements in the
Supplier CoC may constitute a breach of
contract with Tryg, in which case Tryg reserves
the right to terminate any agreement with the
supplier.
Tryg’s Human and labour rights policy describes
the company’s commitment to respect human
and labour rights across its value chains. It
includes a commitment to proactively
collaborate with suppliers to help them increase
their sustainability performance and achieve
higher standards for human and labour rights –
thereby mitigating risks.
Claims suppliers screened
50%
2022
73%
100%
2023
2024 target
Management’s review - Sustainability statement contents
The commitment to human and labour rights
includes a commitment to conduct regular due
diligence to ensure that Tryg is able to identify,
prevent and mitigate adverse human rights from
occurring in the value chain operations.
Read more about how Tryg works with human
rights due diligence across different stakeholder
groups on page 60.
Supplier Code of Conduct [link]
Human and labour rights policy [link]
Sustainability policy [link]
Supplier screening
To enable an evaluation of suppliers’
compliance with the Supplier CoC, Tryg
systematically screens suppliers through an
evaluation platform. The guiding target is that all
of Tryg’s contracted suppliers within claims
handling are screened in 2024. Through the
platform, Tryg can screen and evaluate
suppliers’ ESG risks and their adherence to the
ten principles of the UN Global Compact. Based
on information provided by suppliers, Tryg
evaluates sustainability performance and
compliance on an ongoing basis. The
information is obtained via questionnaires.
In 2023, the scope was expanded, and 1,600
suppliers received questionnaires covering ESG
topics.
Based on the responses in the ESG
questionnaires, Tryg assesses whether further
action is needed and engages in dialogue with
suppliers. This allows Tryg to identify any
Annual report 2023 | Tryg A/S | 56
potential or actual risk areas where supplier
collaboration should be advanced as a means of
improving performance. In 2023, 73% of
suppliers were screened through the supplier
evaluation platform.
As expressed in the Supplier CoC, Tryg expects
suppliers to have a grievance mechanism or
similar procedure in place to ensure their
employees have the ability to file complaints
regarding breaches of responsible business
conduct or poor working conditions
anonymously and without fear of retaliation.
If a supplier has accepted Tryg’s Supplier CoC
and has a policy or certificate within areas of
sustainability, they are characterised as high-
performing. Alternatively for smaller suppliers
(1-5 employees), they can also be classified as
high-performing by accepting the Supplier CoC
and having a documented positive contribution
within a selected area.
Tryg has a target of ensuring at least 70% of
screened claims suppliers achieve a high-
performance rating. In 2023, 48% of these were
categorised as high-performing.
In 2023, Tryg defined its criteria for
sustainability high-performing suppliers. The
classification takes into consideration the size of
the supplier to ensure that Tryg inspires and
motivates its supply chain to increase focus on
sustainability and at the same time leaves no
one behind or excludes any potential positive
contribution among smaller suppliers.
Engaging suppliers and improving practices
in the industries
Tryg’s procurement team engages in dialogue
with suppliers on sustainability on a regular
basis. To ensure that material impacts are
addressed, supplier performance is closely
monitored through the supplier screening
process.
High performing suppliers
48%
Supplier workshops or meetings are some of the
means for engaging and collaborating with
suppliers. This allows Tryg to share its
sustainability ambitions and strategy and to
learn more about the focus areas of the
suppliers – and potentially help them further
advance it. An initial workshop was hosted in the
autumn, and more are expected over the
coming years.
70%
For the coming year, Tryg will focus on building
capacity and training suppliers on sustainability
topics.
Management’s review - Sustainability statement contents
Annual report 2023 | Tryg A/S | 57
2023 .2024 target Social
Protecting customers' data
Management’s review - Sustainability statement contents
Material impacts, risks and opportunities
As an insurance company, Tryg handles
personal data on daily basis, including sensitive
data about customers and employees.
Responsible and ethical use of data is key for
Tryg to be able to protect its most important
resource and to safeguard its business model.
Through Data Protection Officers and GDPR
partners across business areas and central
functions,Tryg has a strong governance for
securing data privacy. This involves continuous
awareness training and monitoring of
compliance risks around GDPR. If data is not
processed and stored adequately, it can
potentially be leaked or misused, which can
have adverse personal or economic
consequences for the individual.
Policies for data privacy and data ethics
Ensuring that customers’ personal data is stored
and processed in a lawful, secure and compliant
manner, is the foundation of Tryg’s approach to
data.
To track GDPR compliance across the
organisation, Tryg works with different GDPR
key performance indicators. In 2023, this
included focus on vendor compliance.
To facilitate more transparency and security
towards customers and to support their right to
be in control of their own personal data, Tryg
strives to improve digital customer solutions.
Among other things, Tryg in Denmark has
introduced a digital consent solution for
Annual report 2023 | Tryg A/S | 58
customers to verify their identity and consents.
Tryg continues to increase the use of secure
customer portals in our customer dialogue.
Employee behaviour is central to ensure proper
and confidential handling of personal data. Tryg
raises awareness and teaches employees about
privacy and cyber security through e-learning
and training programmes, which all employees
must complete. The training focuses, among
other topics, on GDPR issues, including data
processing principles, GDPR roles and
responsibilities, data subjects’ rights to privacy
by design and by default.
Tryg’s internal procedures for handling data
breaches enable all employees to report any
data breaches via a digital platform.
Data ethics
Tryg follows the Data Ethical Codex from the
Danish trade association Insurance & Pension
Denmark, as well as relevant legal requirements
and internationally agreed standards. Data
ethical practices are based on three main
principles: Transparency, free choice and data
security.
Data Ethical Codex, Insurance & Pension
Denmark [link]
Transparency: It is important for Tryg to openly
communicate about the use of data. This
includes being transparent about when data is
used to influence customers’ behaviour in order
to avoid or prevent claims.
Personalisation and prevention: Tryg uses data
to offer tailor-made solutions that can meet
customers’ need and facilitate a good customer
experience. Based on customers’ personal
behaviour, Tryg can design the best possible
offer or user experience. When using data to
personalise products and experiences, it is
critical to ensure that it is in the best interest of
customers.
Data security: Protecting the data of customers,
suppliers, employees and other stakeholders is
based on best practices and standards. Tryg
collaborates and shares experiences on data
security with the industry and authorities as part
of its memberships in the respective Trade
Associations in Denmark, Norway and Sweden.
To the extent possible, Tryg shares threat
intelligence to support a high level of
information security in the insurance industry
and in society. Any data breach is carefully
analysed to prevent future breaches.
The human factor and employee behaviour is
central to ensuring proper and confidential
processing of personal data and avoidance of
cyber incidents. Tryg raises awareness and
teaches employees about privacy and cyber
security through annual e-learning and training
programmes, which all employees must
complete.
Cybersecurity and functioning IT systems are
prerequisites for Tryg to run its business. Tryg’s
information security rules are built on the
principles of the ISO27001 standard on
information security management. Tryg is
continuously monitoring the evolution of the
surrounding cyber-threat landscape while
Management’s review - Sustainability statement contents
adapting technical and organisational cyber
controls to ensure proper cyber resilience.
Insurance fraud
Insurance fraud can have adverse impacts and
implications for Tryg and its customers.
Insurance fraud leads to increasing expenses for
claims, which may lead to price increases. As a
result, the honest customers end up paying for
customers who commit fraud. It is therefore
critical for Tryg to continuously improve its
efforts to prevent and mitigate insurance fraud.
Every year, cases of suspected insurance fraud
are investigated by Tryg’s special investigation
unit.
In 2023, 12,098 notifications of potential fraud
were passed on to the unit in Denmark. This is
an increase of more than 27% compared to
2022. 50% of these cases were classified as
fraud.
Fraud investigation is a delicate issue, and
making sure that customers are treated with
respect in the process is of greatest importance.
All investigations of individual persons must be
approved by the Executive Board before
initiated and performed with respect for the
guidelines defined by the trade associations.
Customers will be informed during the
investigation or when it is finalized. They are
assigned a personal contact, so they can easily
provide the information needed to settle their
claim. This way, honest customers will receive
the compensation they are entitled to, while
fewer fraudsters will succeed in their
endeavours.
Annual report 2023 | Tryg A/S | 59
Governance
Responsible business conduct
Management’s review - Sustainability statement contents
Responsible business conduct is fundamental
for Tryg's business, for its credibility and its
ability to succeed with its strategy. It is a
responsibility that Tryg promotes throughout its
value chain, and expects employees, suppliers,
business partners and external investment
managers to comply with.
Tryg’s Code of Conduct (CoC) describes
expectations and guidelines applicable to all
employees and other parties acting on behalf of
Tryg. It covers themes such as accountability,
good business conduct, effective and free
competition, duty of confidentiality, sensitive
data, and security and economic crime.
To support the CoC, specific standard
operational procedures are established to
explain how Tryg will ensure that employees
understand the rules around, for example,
preventing corruption, money laundering,
financing of terrorism, breach of financial
sanctions, tax evasion and bribery.
The CoC is based on the rules applicable to Tryg
as an insurance company as well as
internationally agreed standards, in particular
the ten principles of the United Nations Global
Compact.
Tryg’s Supplier Code of Conduct clearly
describes expectations to suppliers. Read more
about Tryg's supplier management on page 56.
shareholders and members of the Executive
Board, the Supervisory Board and the like, who
wish to report a violation or potential violation of
legislation and other issues, for example
harassment. Reporting can be done
anonymously, and whistleblowers have special
protection under the Whistleblower Act. Reports
are handled by the Whistleblower unit in Tryg,
which is composed of the chairman of the Risk
Committee and the Audit Committee, the Head
of Group Compliance and the Vice President for
Legal.
In 2023, 43 cases were reported through the
hotline. Cases are still under investigation but
the vast majority has been closed without any
sanctions. It is a slight increase compared to last
year, where 37 cases were reported.
Tryg Code of Conduct [link]
Supplier Code of Conduct [link]
Prevention and detection of
corruption and bribery
An overall risk assessment of Tryg's risk
exposure to corruption and bribery has been
carried out across activities in Denmark, Norway
and Sweden. It is based on the general risk areas
highlighted for the insurance sector, such as
claims handling, procurement and distribution.
The result indicates that the overall risk
exposure to corruption and bribery in Tryg is at a
satisfactory level.
Whistleblower hotline
Tryg’s anonymous whistleblower hotline is open
to employees (current, former and coming),
other people affiliated with employment, and
Corruption and bribery are themes that will
continue to be monitored to ensure that
unethical behaviour does not occur.
Regular training on Tryg’s CoC is required to
ensure that employees know and understand
Tryg's position. Anti-corruption and bribery are
separate modules, and a final test must be
completed to ensure company-wide
compliance.
Human and labour rights due diligence
Tryg’s commitment to responsible business
conduct extends beyond compliance and risk
mitigation. The company has high ambitions to
foster a diverse culture and push for more
sustainable solutions both internally for
employees, through collaboration with
suppliers, and through investments.
As expressed in Tryg’s Human and labour rights
policy, Tryg is fully committed to respecting
fundamental human rights and decent working
conditions as expressed in, for example, the
International Bill of Human Rights and the ILO’s
core conventions on fundamental rights and
principles in working life.
Human and labour rights policy [link]
Annual report 2023 | Tryg A/S | 60
As part of Tryg’s commitment, a human rights
due diligence risk assessment was conducted in
2023, across Tryg’s own operations, customers
and suppliers.
list was validated across different functions in
Tryg. Each risk scenario was further assessed in
terms of its potential or actual impact and
likelihood.
The purpose of the assessment was to highlight
areas of highest potential or actual risk to
human rights, which should be further
monitored.
Potential adverse risk scenarios were identified
across the respective value chain activities and
rightsholder groups. The completeness of the
To help guide the assessment of the supplier
and customer base, which covers a wide range
of sectors, Tryg applied the framework of the
Principles for Sustainable Insurance from the
UN Environmental Programme. The guide
suggests a classification of potential risks,
including risks to human rights, across different
industries.
By combining Tryg’s customer portfolio and
supplier base with the guide, different sector
risk categories were defined to enable an
assessment across the wide-ranging supplier
and customer base. Specific potential or actual
adverse human rights impacts were thereafter
identified and assessed across each sector risk
group.
For suppliers, input was furthermore gathered
through a specific and newly developed due
diligence questionnaire.
The result of the assessment highlighted areas
of further attention or investigation. Among the
means for monitoring performance is the
employee engagement survey, the
whistleblower hotline, ESG customer and
supplier screenings.
Read more about supplier screenings on page
56.
Screening customers for ESG performance
To ensure that the commercial customers
Tryg underwrites operate in compliance with
responsible business practices, specific ESG
screening of larger commercial customers are
performed. The ESG screenings are performed
by an external supplier and are based on input
from various sources such as global news, legal
& government data, certifications, third parties
or NGO data. It is a complex task to factor all
data across the many ESG-related themes into
one score. In the case of poor performance,
Tryg will always investigate the underlying
reason and enter into a dialogue with the
customer.
Management’s review - Sustainability statement contents
Norwegian
Transparency
Act
Tryg’s Norwegian branch is subject to
the Norwegian Transparency Act and
reports annually on the performed due
diligence processes.
In January 2023, Tryg Norway
performed a due diligence focusing on
mapping risks across the organisation,
including suppliers and partners.
Risks of negatively impacting human
rights were mapped across functions
and scored according to impact and
likelihood. The result of the assessment
shows that the risk of breaching or
negatively impacting human rights is
assessed to be low in most areas of
Tryg’s operations. The highest risks lie
in Tryg’s supply chain due to the
inherent risks of certain industries and
the likelihood of certain geographies.
Declaration on human rights and
decent working conditions,
Norway [link]
Annual report 2023 | Tryg A/S | 61
Governance
Responsible investment
Management’s review - Sustainability statement contents
Tryg has DKK 64bn of investment assets. The
underlying economic activities of these assets
can lead to material social or environmental
impacts. A strong governance setup for ensuring
responsible investment practices is therefore
key.
Tryg’s investment portfolio is split into two
portfolios: a match portfolio and a free portfolio.
The match portfolio, which comprises Nordic
government and mortgage bonds, makes up
72%. The free portfolio, comprising various
bonds, funds, investment properties or equities,
constitutes 28%. Tryg’s internally managed
funds have been classified as Article 8 funds
under the Sustainable Finance Disclosure
Regulation (SFDR), meaning that the funds
promote certain sustainability characteristics.
28%
72%
The match portfolio consist of covered bonds.
The free portfolio is composed of government and
covered bonds, investment grade credit, emerging market
bonds, high yield bonds, diversifying alternatives, equity
and real estate.
Policies for governing responsible
investment practices
Tryg’s responsible investment practices are
governed by two policies: the Responsible
investment policy and the Active ownership
policy. Furthermore, a process for ethical
screening details how screening of the portfolio
is conducted.
The purpose of the Responsible investment
policy is to ensure that Tryg’s investment
activities are managed with due consideration to
sustainability related risks and their potential
adverse impact on society, that they promote
environmental and social characteristics and
meet sustainable investment objectives.
Responsible investment policy [link]
The Active Ownership Policy covers active
ownership practices across Tryg’s investments,
but is especially relevant for the free portfolio,
where part of the portfolio is invested in equity
holdings. Active ownership is defined as the use
of rights and position of ownership to influence
the activities or behaviour of investee
companies based on financial and/or climate,
environmental and societal impact
considerations. The vast majority of Tryg’s
equity holdings consists of exchange-listed
equities held via mutual funds, where external
asset managers have direct influence over
active ownership activities (denoted ‘externally
managed assets’).
Active ownership policy [link]
Tryg’s external investment managers are UN PRI
signatories and have a natural inclination
towards an ethical mindset. Ethical screening is
used as a supplemental tool to ensure that an
investment manager does not invest in
unethical companies. In such cases, Tryg
engages in dialogue with the investment
manager to get an explanation.
Process for ethical screening [link]
Annual report 2023 | Tryg A/S | 62
Portfolio split MatchFree External manager selection and monitoring
Most of Tryg’s investment assets are managed
externally and typically held through
commingled fund structures. The most
important work regarding the implementation of
responsible investment is therefore via the
selection of external managers and the specific
investment funds. Tryg evaluates investment
funds on (a) the external fund managers’
governance and commitment to responsible
investment and (b) the specific fund’s
integration of ESG considerations while taking
specific asset class characteristics into
considerations.
Tryg qualifies all external managers through a
comprehensive due diligence process followed
by ongoing monitoring to ensure that the
individual manager has the capacity to manage
sustainability related risks, promote
environmental and social impacts and meet
sustainable investment objectives when applied.
Tryg’s external managers are generally
members of responsible investment
organisations, and all of them are UN PRI
signatories, and on average score well on UN
PRI assessments. Furthermore, the vast
majority have explicit net-zero commitments
and have joined relevant coalitions.
As part of the ongoing monitoring of asset
managers, their responsible investment
practices are continuously reviewed. In addition
to regular dialogues, meetings and ad-hoc
questions, thematic ESG-related questions are
asked of external asset managers to ensure that
the overall ethical intent remains aligned with
Tryg.
safeguard the investment’s value and/or to
reduce negative externalities on society. Active
ownership usually takes the form of
engagements with investees and voting at
shareholder meetings. Tryg’s initiatives are
primarily directed towards managing and
monitoring that the external managers apply
active ownership to individual holdings. In 2023,
the external managers continued to exercise
active ownership on Tryg’s behalf. The
managers’ voting share remains high and above
the ambition of 90% on the aggregated equity
portfolio. The primary focus for engagements in
2023 has been on remuneration and climate
change impact, while there has also been a
growing number of dialogues revolve around
biodiversity impacts.
Tryg believes that active dialogue on ESG topics
is central to moving forward and creating an
actual impact. Divestment and exclusion of
companies from the investment portfolio is
considered as a last resort.
Ethical screening process
To ensure that the individual holdings are
aligned to Tryg’s values, ethical screenings are
conducted annually against controversial
behaviour and controversial weapons.
Controversial behaviour covers violation of the
ten principles of the UN Global Compact.
The screening is carried out using data from an
external ESG research provider and considers
compliance with UN and EU council regulations.
If a violation is identified, a formal escalation
process guides the further process. See the
relevant process document for further
information.
Exercising active ownership
The aim of active ownership is to encourage
investees to improve practices in order to
The transition to a low-carbon economy
The long-term ambition is to support the
transition to a low-carbon and fossil-free world
Management’s review - Sustainability statement contents
by allocating capital where it makes the biggest
impact on current and future CO2e emissions
within the limits of the investment model. Tryg
does this by directing investments towards
external managers who have an ambitious
integration of ESG into the investment process
and investment strategies that promote
sustainability characteristics. Within listed
equities, Tryg favours collaborating with
external managers who conduct active
ownership on its behalf, which can, for example,
motivate investees to reduce their emissions
over time.
Tryg’s target is to reduce the carbon intensity of
its equity portfolio by at least 50% by 2030
compared to base year 2019. Tryg currently
monitor its equity and parts of its credit bond
portfolio and focuses especially on risks and
opportunities that arise from the transition to a
low-carbon economy.
In 2023, the CO2e intensity of the equity
portfolio improved by 51.9% compared to base
year 2019. This change is primarily driven by
higher allocation to lower impact sectors such
as information technology.
Hence, the strategy is not to minimise the
current level of CO2e emissions in the portfolio,
but to focus on current and future reduction
potential over time. The combination of active
ownership and capital allocation are considered
as the most efficient way to support that
ambition.
Tryg is committed to phasing out investments in
fossil fuel production companies that do not
have a credible 2030 plan for a sustainable
transition in line with the Paris Agreement.
Currently, Tryg has a very limited exposure to
fossil fuel production in its portfolio (<1%).
External managers are continuously encouraged
to engage with fossil fuel companies to motivate
them to commit to a sustainable transition.
Although this is a positive development towards
Tryg's 2030 target, it is important to highlight
that the input data for these figures are highly
volatile, and actual impact should be considered
over a longer period of time. Tryg is confident
that the portfolio is on a good path, and will
continue its efforts to show continued progress
on the CO2e intensity.
Holdings of green bonds are steadily
increasingly and on track to reach DKK 5bn by
2030. This is being driven by a combination of
larger issuances and lower “greeniums” on the
bond prices. Tryg’s capital commitment of DKK
100m to renewable energy infrastructure funds
focusing on building capacity in Africa is
gradually being deployed.
Weighted Average Carbon Intensity
Current value
of investment
Current portfolio
value
x
Issuer’s Scope 1&
2 carbon emissions
Issuer’s USDM
revenue
=
Weighted
Average Carbon
Intensity (WACI)
(tCO2e / USDm revenue,
Scopes 1 and 2)
Annual report 2023 | Tryg A/S | 63
Task Force on Climate-related Financial
Disclosures
Tryg supports the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
Management’s review - Sustainability statement contents
Theme
Governance
Strategy
Risk Management
Metrics and targets
Recommended disclosures
Read more at
Page
a) Describe the board’s oversight of climate-related risks and opportunities
Sustainability strategy & Governance
b) Describe management’s role in assessing and managing climate-related risks and opportunities.
Sustainability strategy & Governance
a) Describe the climate-related risks and opportunities the organisation has identified over the short, medium,
and long term.
Climate impact
b) Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy,
and financial planning.
Climate impact
c) Describe the resilience of the organisation’s strategy, taking into consideration different climate-related
scenarios, including a 2 °C or lower scenario.
Climate impact
a) Describe the organisation’s processes for identifying and assessing climate-related risk
b) Describe the organisation’s processes for managing climate-related risks
Climate-related risks / Risk and capital
management
Climate-related risks / Risk and capital
management
c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into
the organisation’s overall risk management.
Climate-related risks / Risk and capital
management
a) Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with
its strategy and risk management process
ESG data tables
b) Disclose scope 1, scope 2, and, if appropriate, scope 3 greenhouse gas (GHG) emissions and the related
risks
ESG data tables
39
39
43
43
43
43 / 108
43 / 108
43 / 108
65
65
c) Describe the targets used by the organisation to manage climate-related risks and opportunities and
performance against targets
Overview of 2023
41 and related
references
Annual report 2023 | Tryg A/S | 64
Environmental, Social and Governance data
Management’s review - Sustainability statement contents
Climate and environmental
Note
3.1
3.1.1
3.2.2
CO2e emissions
Scope 1 (direct emissions)
Emissions from fossil fuel consumption, company cars
Stationary combustion
Heating oil, total
Natural gas, total
Total Scope 1 carbon emissions
3.2
Scope 2 (indirect emissions)
Electricity consumption, total (location-based)
Electricity consumption, total (market-based)
District heating, total
Total Scope 2 carbon emissions (location-based)
Total Scope 2 carbon emissions (market-based)
3.3
3.3.1
3.3.2
Scope 3 (indirect emissions)
C5. Waste generated in operations
C6. Business travel, Air
Total Scope 3 carbon emissions
Total direct and indirect carbon emissions (location-based)
3.4
Total direct and indirect carbon emissions per employee (location-based) (1)
Total direct and indirect carbon emissions (market-based)
3.4
Total direct and indirect carbon emissions per employee (market-based) (1)
Resource consumption
3.5.1
Energy consumption, total (scope 1 and 2)
3.5.1
Renewable energy share
(1) Based on total Number of Employees (Headcount).
Unit
2023
2022
[blank] = Internal assurance
n = Limited assurance
Assurance level
2023 data
2019
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
MWh
%
858
0
40
898
625
0
520
1,145
520
133
2,629
2,762
4,805
0.6
4,180
0.5
898
0
55
953
720
106
595
1,315
701
97
2,175
2,272
4,540
0.7
3,926
0.6
880
20
93
993
1,212
4,152
792
2,004
4,944
140
3,299
3,439
6,436
1.6
9,376
2.3
17,848
46
20,437
41
26,779
N/A
n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
Annual report 2023 | Tryg A/S | 65
Environmental, Social and Governance data
Management’s review - Sustainability statement contents
Climate impact: Claims handling
Note
Unit
2023
2022
Avoided CO2e emissions
Motor
Used spare parts
Repairing of windshields
Road assistance by phone-fix service
Electrical rental cars (Leiebil)
Repairing of plastic car bumpers
Repair of headlights
Repair of rims
Repair of car bodyparts
Use of biofuels in marine services
Repair of caravans
SMART-repair
Paint inhouse
Photo inspection
Health & Pet
Online medical consultations (Tryg Lægehjælp -DK and Helsetelefonen - NO)
Online veterinarian consultations (firstVet)
Online physiotherapy help (2)
Online psychological help (Videobehandling Psykolog Norge)
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
9,266
3,591
97
1,305
1,425
189
390
3,700
1
56
5
8
74
260
36
0
4
7,967
3,508
107
427
1,211
168
260
3,147
N/A
43
N/A
12
73
211
33
N/A
N/A
[blank] = Internal assurance
n = Limited assurance
Assurance level
2023 data (1)
2020
5,416
2,775
28
19
863
101
227
1,491
N/A
23
N/A
12
0
127
28
N/A
N/A
n
n
n
n
n
n
n
n
n
(1) As preparation for future requirements for obtaining limited assurance from an independent third party, Tryg has asked PwC to review some of
the KPI's regarding claims in the 2023 ESG reporting. Regardless of whether being assured or not by PwC, every project has been through the same
internal quality requirements and controls to ensure data completeness and accuracy. Trustworthy and robust data are of highest priority as the total
CO2e emissions from claims handling are one of Tryg’s strategic targets, and one of the indicators in the incentive schemes for the Executive Board.
(2) This is a newly established project, and no cases have been closed in 2023.
Annual report 2023 | Tryg A/S | 66
Environmental, Social and Governance data
Management’s review - Sustainability statement contents
Climate impact: Claims handling
Note
Avoided CO2e emissions
Building
Remote monitoring of building claims
Reduction of transport related to inspection activities
Conservation of building foundations & building materials
Repair of windows & doors
Reuse of tiles
Partiel repairs of parquet floors
Reduce the use of building materials
Smart-repair of pipes
Multiseal
Content
Repairing phone screens
Refurbished options (2)
4.1
4.2
Total CO2e reduction from claims handling process
Sustainable Spend - volume adjusted results
4.3
Payments to claims prevention
Unit
2023
2022
2020
n = Limited assurance
Assurance level
2023 data (1)
[blank] = Internal assurance
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
%
%
14
40
161
54
87
71
33
2
12
264
63
19
N/A
52
60
85
53
N/A
N/A
1
337
65
21,208
17,839
29
1
21
1
n
n
n
n
n
n
n
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
353
31
11,493
0
N/A
(1) As preparation for future requirements for obtaining limited assurance from an independent third party, Tryg has asked PwC to review some of
the KPI's regarding claims in the 2023 ESG reporting. Regardless of whether being assured or not by PwC, every project has been through the same
internal quality requirements and controls to ensure data completeness and accuracy. Trustworthy and robust data are of highest priority as the total
CO2e emissions from claims handling are one of Tryg’s strategic targets, and one of the indicators in the incentive schemes for the Executive Board.
(2) Formerly called SWAP options.
Annual report 2023 | Tryg A/S | 67
Environmental, Social and Governance data
Management’s review - Sustainability statement contents
Climate impact: Investments
Equity portfolio
Note
5.1.1
5.1.2
5.1.3
External manager statistics
Percentage of UN PRI Signatories
Average external manager score for Investment & Stewardship Policy
Average external manager score for voting for relevant listed equity strategies
Active ownership
5.2.1
Voting percentage for equity portfolio
Weighted Average Carbon Intensity (WACI)
5.3.1 WACI for listed equities
5.3.2 WACI for listed equities (coverage ratio)
5.3.3 WACI for benchmark
5.3.4 WACI for benchmark (coverage ratio)
5.3.5
5.3.6
5.4.1
5.4.2
5.4.3
5.4.4
Percentage difference
CO2e intensity reduction of equity portfolio
Carbon footprint
Carbon footprint for Listed equity
Carbon footprint for Listed equity (coverage ratio)
Carbon footprint for Corporate bonds (coverage ratio)
Carbon footprint for Corporate bonds (coverage ratio)
Unit
2023
2022
2019
n = Limited assurance
Assurance level
2023 data
[blank] = Internal assurance
%
score
score
%
tCO2e / USDm revenue, Scopes 1 and 2
%
tCO2e / USDm revenue, Scopes 1 and 2
%
%
%
tCO2e / USDm invested, Scopes 1 and 2
tCO2e / USDm invested, Scopes 1 and 2
%
%
100
85
77
97
76
91.7
98
88
-22
51.9
80
91
20
53.2
100
86
77
97.7
184.9
94.3
189.2
95.7
-2.3
-16.9
108.8
94.3
149.1
76.2
N/A
N/A
N/A
N/A
158
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Annual report 2023 | Tryg A/S | 68
Environmental, Social and Governance data
Management’s review - Sustainability statement contents
Social
Note
Characteristics of Employee
6.1.1
Total number of employees (Headcount)
Permanent employees (headcount)
Temporary employees (headcount)
Non-guaranteed hourly paid employees (headcount)
6.1.2.
Employees age groups
Employees (total by headcount), <30 years
Employees (total by headcount), 30-49 years
Employees (total by headcount), 50 years and above
6.1.3.
Total gender distribution
Total gender distribution
Total gender distribution
Gender distribution at management levels
6.2.1
Gender distribution, all management levels (headcount)
Gender distribution, all management levels (headcount) (1)
6.2.2
Gender distribution, top management level
Gender distribution, top management level
6.2.3
Gender distribution, director level
Gender distribution, director level
6.2.4
Gender distribution, the other level of management
Gender distribution, the other level of management
f=Female
m=Male
n=Not reported
(1) Formerly called "Total share of women in management positions.
Unit
2023
2022
2019
n = Limited assurance
Assurance level
2023 data
[blank] = Internal assurance
Number
Number
Number
Number
%
%
%
7,943
7,076
301
566
28
47
24
20
53
28
16
53
31
Number f/m/n
3,591 / 4,350 / 2
% f/m/n
45 / 55 / 0
46 / 54 / N/A
46 / 54 / N/A
Number f/m/n
339 / 480 / 0
% f/m/n
Number f/m/n
% f/m/n
Number f/m/n
% f/m/n
Number f/m/n
% f/m/n
41 / 59 / 0
15 / 40 / 0
27 / 73 / 0
24 / 69 / 0
26 / 74 / 0
22 / 53 / 0
29 / 71 / 0
41 / N/A / N/A
35 / N/A / N/A
25 / 75 / N/A
31 / 69 / N/A
24 / 54 / 0
31 / 35 / 0
n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
Annual report 2023 | Tryg A/S | 69
Environmental, Social and Governance data
Management’s review - Sustainability statement contents
Social
Note
6.3.1
6.3.2
6.3.2
6.4.1
6.4.2
Employee turnover
Employee turnover (headcount) (1)
Total leavers (1)
Share of voluntary leavers (turnover rate)
Share of involuntary leavers (turnover rate)
Pay ratio
Gender pay ratio
Ratio of annual total compensation ratio
Training and skills development
6.5.2
Total employee training hours (2)
Average employee training hours (2)
Unit
2023
2022
2019
Assurance level
2023 data
[blank] = Internal assurance
n = Limited assurance
%
Number
%
%
Times f/m
%
14
877
10
3
1.2
32
12
529
7
5
1.2
26
18
1,405
11
7
1.1
21
66
n
n
n
n
n
n
n
n
n
n
Average number of training hours per
person (Hours)
Hours
8,235
88,321
86,476
1
79
17
79
20
78
Annual report 2023 | Tryg A/S | 70
6.5.1
Employees that participated in regular performance and career development
%
Employees that participated in regular performance and career development by
gender
Number f/m/n
2,282 / 2,557 /0
6.6
Employee engagement (3)
Index point
f=Female
m=Male
n=Not reported
(1) The figure is not comparable with those from previous years. As of 2023, the number includes all employees, including temporary and non-guaranteed hourly paid
employees. The previous year numbers, only included permanent.
(2) The figure is not compatible with those from previous years. As of 2023, training hours only include compliance training
(3) Formerly called "Employee satisfaction"
Environmental, Social and Governance data
Management’s review - Sustainability statement contents
Governance
Note
7.1.1
7.1.2
7.1.3
7.1.4
Size of the Supervisory Board excl. employee representatives
Size of the Supervisory Board
Average ratio of female to male board members (1)
Number of employee representatives
Number of executive and non-executive members
7.1.4
Board members age group, <30 years
Board members age group, 30-49 years
Board members age group, 50 years and above
7.1.5
Board meetings
Attendance rate
7.1.6
Independent supervisory board members
Independent supervisory board members in percentage
Incentive schemes and remuneration
ESG-linked pay, Executive Board
Remuneration of the Executive Board (2)
Remuneration of the Supervisory Board (2)
Whistleblower cases
Harassment cases
7.2.1
7.2.2
7.2.2
7.3
7.4
Management of relationships with suppliers
7.5.1
Suppliers screened
Contract suppliers
Suppliers w/ claims
7.5.2
High-performance suppliers
Contract suppliers
Suppliers w/ claims
Insurance fraud
7.6.1
7.6.2
Notifications of potential fraud
Cases classified as fraud
(1) Formerly called "Share of women, incl. employee representatives
(2 ) See Tryg's Remuneration report 2023
Unit
2023
2022
[blank] = Internal assurance
n = Limited assurance
Assurance level 2023
data
2019
Number
%
Number
Number (exe/non-exe)
Number
Number
Number
Number
%
Number
%
%
Reference
Reference
Number
Number
%
%
%
%
9
33
5
0/9
0
4
10
15
100
6
67
15
43
14
66
73
50
48
Number
%
12,098
50
9
50
5
0/9
0
4
10
11
98
6
67
6.3
37
6
43
50
N/A
N/A
9,526
46
8
50
4
0/8
0
1
11
8
100
5
63
N/A
3
N/A
N/A
N/A
N/A
N/A
5,798
43
Annual report 2023 | Tryg A/S | 71
Management’s review - Sustainability statement contents
EU Taxonomy-alignment investments
Additional, complementary disclosures
Breakdown of denominator
The percentage of derivatives relative to total assets covered by the KPI.
The value in monetary amounts of derivatives
0.00 %
The proportion of exposures to financial and non-financial undertakings not subject to Articles
19a and 29a of Directive 2013/34/EU over total assets covered by the KPI.
0
Value of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of
Directive 2013/34/EU.
For non-financial undertakings:
12.5%
For financial undertakings:
87.0%
For non-financial undertakings:
7,431,239,262
For financial undertakings:
51,823,757,169
The proportion of exposures to financial and non-financial undertakings from non-EU countries
not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI.
Value of exposures to financial and non-financial undertakings from non-EU countries not subject to
Articles 19a and 29a of Directive 2013/34/EU.
For non-financial undertakings:
8.3%
For financial undertakings:
15.8%
For non-financial undertakings:
4,931,737,682
For financial undertakings:
9,403,746,391
The proportion of exposures to financial and non-financial undertakings subject to Articles 19a
and 29a of Directive 2013/34/EU over total assets covered by the KPI.
Value of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive
2013/34/EU.
Non-financial undertakings:
0.5%
Financial undertakings:
0.03%
Non-financial undertakings:
301,118,151
Financial undertakings:
15,864,245
The proportion of exposures to other counterparties and assets over total assets covered by the
KPI.
Value of exposures to other counterparties and assets.
0%
0
Annual report 2023 | Tryg A/S | 72
Management’s review - Sustainability statement contents
EU Taxonomy-alignment investments
Additional, complementary disclosures
Breakdown of denominator
The proportion of the insurance or reinsurance undertaking’s investments other than investments
held in respect of life insurance contracts where the investment risk is borne by the policy holders,
that are directed at funding, or are associated with, Taxonomy-aligned economic activities.
Value of the insurance or reinsurance undertaking’s investments other than investments held in respect of
life insurance contracts where the investment risk is borne by the policy holders, that are directed at
funding, or are associated with, Taxonomy-aligned economic activities.
0.13%
76,177,610
The value of all the investments that are funding economic activities that are not Taxonomy-
eligible relative to the value of total assets covered by the KPI.
Value of all the investments that are funding economic activities that are not Taxonomy-eligible.
92.83%
53,301,354,485
The value of all the investments that are funding Taxonomy-eligible economic activities, but not
Taxonomy-aligned relative to the value of total assets covered by the KPI.
Value of all the investments that are funding Taxonomy-eligible economic activities, but not Taxonomy-
aligned.
7.04%
4,194,038,253
Annual report 2023 | Tryg A/S | 73
EU Taxonomy-alignment investments
Additional, complementary disclosures
Breakdown of denominator
The proportion of Taxonomy-aligned exposures to financial and non-financial undertakings
subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the
KPI.
Value of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a
and 29a of Directive 2013/34/EU.
Management’s review - Sustainability statement contents
For non-financial undertakings:
Turnover-based:
0.04%
Capital expenditures-based:
0.08%
For financial undertakings:
Turnover-based:
0.00%
Capital expenditures-based:
0.01%
For non-financial undertakings:
Turnover-based:
25,696,103
Capital expenditures-based:
45,286,034
For financial undertakings:
Turnover-based:
2,483,867
Capital expenditures-based:
6,352,310
The proportion of the insurance or reinsurance undertaking’s investments other than
investments held in respect of life insurance contracts where the investment risk is borne
by the policy holders, that are directed at funding, or are associated with, Taxonomy-
aligned.
Value of insurance or reinsurance undertaking’s investments other than investments held in respect of life
insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are
associated with, Taxonomy-aligned.
Turnover-based:
0.13%
Turnover-based:
76,177,610
Capital expenditure-based:
0.17%
The proportion of Taxonomy-aligned exposures to other counterparties and assets in over
total assets covered by the KPI.
Capital expenditure-based:
100,187,177
Value of Taxonomy-aligned exposures to other counterparties and assets in over total assets covered by the
KPI.
Turnover-based:
0.00%
Capital expenditure-based:
0.00%
Turnover-based:
0
Capital expenditure-based:
0
Annual report 2023 | Tryg A/S | 74
EU Taxonomy-alignment investments
Management’s review - Sustainability statement contents
Breakdown of the numerator of the KPI per environmental objective
Taxonomy-aligned activities
Provided 'do-no-significant-harm (DNSH) and social safeguards positive assessment
(1) Climate change mitigation
(2) Climate change adaptation
Turnover:
0.13%
CapEx:
0.17%
Turnover:
0.08%
CapEx:
0.08%
Transitional activites:
0.08%; 0.08%
Enabling activities:
0.03%; 0.05%
Enabling activities:
0.00%; 0.00%
Annual report 2023 | Tryg A/S | 75
Accounting principles
1 Basis of ESG reporting
The accounting principles describe the base
principles for Tryg’s material environment,
social and governance (ESG) indicators.
As of 2024, Tryg is obligated to report according
to the EU's Corporate Sustainability Reporting
Directive (CSRD) and the European
Sustainability Reporting Standards (ESRS). In the
process of aligning our business and ESG
reporting to the directive, we have decided to
prepare a number of indicators herein 2023 so
they are adjusted to the requirement in ESRS.
This has also included the engagement of our
financial auditors to provide limited assurance
on a selected number of our ESG data readouts
for the period 1 January – 31 December 2023.
The indicators that are assured are marked with
a n in the ESG tables.
2 Reporting boundaries
The organisational scope for the reporting
includes all operations for Tryg A/S and
subsidiaries, and is aligned with the scope of the
consolidated financial report. See Group chart at
page 187. There are a few exceptions, which are
stated under the specific indicators.
2.1 Business changes impacting ESG data
There have been no business changes
impacting the ESG data in 2023. In 2022, all
consumption data from Trygg-Hansa and Codan
Norway is included as of 1 April 2022, when the
acquisition was completed.
2.2 Reporting period
The basis of ESG reporting is prepared in
alignment with Tryg’s consolidated financial
statement that follows the fiscal year 1 January
2023 to 31 December 2023.
Introduction of a number new ESG indicators to
align with ESRS.
Most of the ESG figures are reported for 2023
and 2022 plus the 2019 baseline. Only
exception is the climate impact indicator Claims
handling, which operates with a 2020 base line.
Environmental
• GHG emissions intensity based on net
revenue.
As of 1 April 2022, figures include the full
organisational scope including Tryg-Hansa and
Codan Norway. Tryg’s strategy baseline, 2019,
has also been updated to include figures from
the two acquisitions.
2.3 ESG data selection and reporting
frameworks
The selection and reporting scope of ESG
disclosures are in the process of being aligned
with CSRD and the result of the double
materiality assessment. In the alignment
process, new indicators have been introduced
and some have been re-defined. This is going to
be our first step in meeting the ESRS
requirements.
2.4 ESG data reporting quality and assurance
To ensure high ESG data quality, completeness
and accuracy of the data collection processes
and controls are aligned and documented and
the use of IT solutions optimised.
The ESG reporting has been submitted to
auditors at the same time as the financial
figures. Both internal and external audits have
been conducted on selected indicators.
2.5 New ESG indicators in 2023
Claims
• Payments to claims prevention. Previously
presented in the table: The climate
partnership of the Danish financial sector.
Social
•
Total number of employees (headcount)
Permanent employees (headcount)
◦
Temporary employees (headcount)
◦
◦ Non-guaranteed hourly paid employees
(headcount).
• Gender distribution, other levels of
management; which aligns with Danish
legislation.
Governance
• Number of employee representatives
• Number of executive and non-executive
•
members
Independent supervisory board members
(number/percentage)
• Management of relationships with supplier
indicators
Insurance fraud indicators.
•
2.6 Revised ESG data
Environmental
•
The indicator; Emissions from fossil fuel
consumption, company cars changed name
from Car travel, total.
Management’s review - Sustainability statement contents
•
The indicator; energy consumption, total
unit has been changed from GJ to Mwh to
align with ESRS and the Green House Gas
protocol (GHG protocol). Data has been
converted for 2022 and baseline 2019.
• Change in calculation method of Renewable
energy share.
Social
•
Total gender distribution (female/male/not
rep) in numbers and with new categories
"not reported"
•
• Gender distribution at top management
level (Average headcount) in numbers
Employee turnover (headcount): number
includes all employees, including temporary
employees and non-guaranteed hourly paid
employees.
•
• Average ratio of female to male board
members: adjusted so it is exclusive
employee representatives.
Employees participated in regular
performance and career development by
gender
Total employee training hours and average
employee training hours: Revised to no
longer include external courses, as the
calculation was based on estimates.
•
Investment
• Weighted Average Carbon Intensity (WACI)
is used to clarify the indicator Carbon
intensity.
Governance
• Ratio of annual total remuneration replaces
the indicator CEO pay ratio
Annual report 2023 | Tryg A/S | 76
•
Sustainability-related performance replaces
the indicator ESG-linked pay, Executive
Board.
2.7 Cancelled ESG indicators
•
The indicator Sick leave is discontinued due
to different definitions across countries.
3 Climate and environment
The carbon footprint provides a general
overview of Tryg’s greenhouse gas emissions
converted into CO2 equivalents. It is based on
reported data from internal and external
systems. The carbon footprint analysis is based
on the international standard: A Corporate
Accounting and Reporting Standard, by the
Greenhouse Gas Protocol Initiative (GHG
Protocol) and developed by the World
Resources Institute (WRI) and World Business
Council for Sustainable Development (WBCSD,
2021).
The reporting considers the following
greenhouse gases, all converted into Carbon
Dioxide Equivalents (CO2e): CO2 (Carbon
dioxide), CH4 (methane), N2O (Nitrous oxide),
SF6 (Sulfur hexafluoride), HFCs
(Hydrofluorocarbons) and PFCs
(Perfluorocarbons) and NF3 (Nitrogen
trifluoride). The methodology is based on the
Greenhouse Gas Protocol. The calculation is
based on the operational control aspect that
defines what should be included in the carbon
inventory, as well as in the different scopes.
The key external sources used as a basis for the
calculations in this report are World Resource
Institute (WRI/US), International Energy Agency
(IEA/OECD), Intergovernmental Accounting
principles for selected indicators Panel on
Climate Change (IPCC), Department of Energy
and Climate Change (DECC/UK), EcoInvent LCI
Database.
Facility data is provided by external suppliers
with a delay compared to the time of
consumption. Because of the rapid year-end
closing in Tryg, the fourth quarter is an estimate
based on relevant data from the corresponding
period including adjustment for any known
changes. When actual data is available, an
update is made in the next external reporting if
the figures are above the material limit.
3.1 Scope 1
3.1.1 Emissions from fossil fuel consumption,
company cars: Fossil fuel consumption covers
all transportation in fossil fuel company vehicles
in Denmark. Driving consumption is based on
invoices handled by our leasing partner. All
figures are controlled and stored in Cemasys.
3.1.2 Stationary combustion: The indicators for
Heating oil and Natural gas include all direct
emission sources from all locations with above
50 employees. This includes all use of fossil
fuels for stationary combustion including
heating oil and natural gas. Consumption data is
based on meter readings and documentation
from suppliers and all calculations are done in
Tryg’s Cemasys Solution.
3.2 Scope 2
This includes indirect emissions related to
purchased energy; electricity and heating/
cooling where Tryg has operational control from
locations with above 50 employees. According
to the GHG protocol, scope 2 emissions are
calculated as both location-based and market-
based.
3.3 Scope 3
Scope 3 includes indirect emissions from Tryg's
waste production (C5) and business travel (C6)
activities. This is incomplete according to our
business model, and we are in process
preparing reporting on other relevant scope 3
categories, and figures will be included in the
YE2024 report.
3.3.1 C5. Waste generated in operations: Data is
based on invoices from waste management
facility or supplier. It is calculated based on
DEFRA1 emission factors 2022 for waste type
and treatment.
3.3.2 C6. Business travel, Air: Business travel
covers transportation of employees in business-
related air travel. Data is sourced from an
external business travel management system,
and reported into Cemasys. Tryg plans to
include other transportation forms in the
reporting year 2024.
3.4 Total direct and indirect carbon emissions
per employee (location- and market-based)
These indicators are the sum of Scope 1, 2 and 3
for, respectively, location-based and marked-
based) divided by the total Number of
Employees (Headcount). See definition under
"Total number of employees (Headcount)".
3.5 Resource consumption
3.5.1 Energy consumption, total (scope 1 and
2): The energy consumption unit has been
changed from GJ to Mwh to align with ESRS and
the GHG protocol. Data has also been converted
for 2022 and baseline year 2019.
3.5.2 Renewable energy share: The consumed
energy also contain energy from renewable
sources. The indicator of renewable energy
share include how much of the total consumed
energy comes from renewables energy sources.
All of Tryg's electricity consumption is based on
renewable energy sources through the purchase
of certificates of guarantee of origin from wind
turbines and solar cells. According to FSR
Danish Auditors, CFA Society Denmark and
Management’s review - Sustainability statement contents
Nasdaq’s suggestions on standardised ESG key
figures.
In 2023, Tryg has purchased and secured
cancelled certified renewable electricity
corresponding to all of our electricity
consumption.
4 Claims handling and sustainable spend
4.1 Claims handling
Organisational scope: Claims handling covers
both private and commercial claims.
The CO2e reduction effect is based on Life-cycle
assessment (LCA) principles. From a life cycle
perspective, the CO2e emissions from a
baseline/conventional claims handling is
compared to an alternative sustainable claims
handling. The calculations are mainly performed
by the use of the LCA software SimaPro
including the environmental databases
ecoinvent and exiobase as well as other relevant
sources such as DEFRA and EPDs
(Environmental Product Declaration).
2022 data has been restated due to the
improvement of calculation methods and
updating of CO2e factors, and has been updated
continuously throughout the year. It is the
factors at end-year that are used in the external
reporting. Additionally, data from Trygg-Hansa
and Codan Norway are now fully included,
which also affects the numbers.
4.2 Sustainable spend
Organisational scope: Sustainable spend limited
to supplier payments.
Sustainable spend refers to our claims
payments that can be documented as payments
to more sustainable solutions and are referred
to as more sustainable claims handling.
1 DEFRA: Department for Environment, Food and Rural Affairs. Emission conversion factors are use by UK and international organisations to report on greenhouse gas emissions.
Annual report 2023 | Tryg A/S | 77
There has been a restatement of the sustainable
spend because of improvements in the
methodology, including new initiatives in
calculations and an update of the 2020 baseline.
4.3 Payments to claims prevention: Claims
prevention expenses are defined in accordance
with Section 37(1) in BEK no. 460 of
02/05/2023. Claims prevention expenses
comprise internal and external costs to mitigate
expected future claims.
5 Investments
5.1 External manager statistics
5.1.1 Percentage of UN PRI signatories: The
percentage of external managers that are UN
PRI signatories. The score is an equal-weighted
average of the external managers used within
the investment portfolios. External managers
that are not part of the regular investment
management operations are not included. Data
is collected from UN PRI [link].
5.1.2 Average external manager score for
Investment & Stewardship Policy: The average
score of the external fund managers is based on
their respective UNPRI assessment scores for
“Investment & Stewardship Policy”. The score is
an equal-weighted average of the external
managers used within the investment portfolios.
External managers that are not part of the
regular investment management operations are
not included. Some external managers have not
received an assessment, and these are excluded
from the calculation. Scores of 1-100 are given,
where 100 is best. Data is collected from the
individual external managers by Tryg Invest. The
underlying data is from 2021 Assessment
Reports, which is the most recent at the time of
calculation cut-off.
5.1.3 Average external manager score for voting
for relevant listed equity strategies: The average
score of the external fund managers is based on
their respective UNPRI assessment scores for
“Direct - Listed equity - Active fundamental -
voting” and “Direct - Listed equity - Active
quantitative - voting”. The score is an equal-
weighted average of the external managers that
are managing listed equity strategies in Tryg
Invest Global Equities Fund. Depending on the
strategy type, the relevant variable score will be
used. Data is collected from the individual
external managers by Tryg Invest. The
underlying data is from 2021 Assessment
Reports, which is the most recent at the time of
calculation cut-off.
5.2 Active ownership
5.2.1 Voting percentage for equity portfolio: The
aggregated percentage of participation in
shareholder meetings relative to total number of
shareholder meetings available for participation.
The percentage is calculated by adding the
number of shareholder meetings participated in
by the individual funds and divided by the total
number of shareholder meetings available for
participation. The KPI covers actively managed
equity funds in Tryg Invest Global Equities. Data
is collected from the individual external
managers managing equity funds for Tryg
Invest. The calculation period covers the 12-
month period 30 September 2022 to 30
September 2023.
5.3 Weighted Average Carbon Intensity (WACI)
The weighted average carbon intensity figures
are calculated in tonnes of CO2e (Scope 1 and 2)
relative to revenue (million dollars) and
weighted relative to the portfolio holdings. The
calculation follows the methodology of the
“Weighted Average Carbon Intensity” metric in
the TCFD framework. The calculation methods
have not been changed, the name has just been
aligned with the TCFD framework. .
5.3.1 WACI for listed equities: This indicator is
calculated using holdings data from Tryg
Invest's Global Equities Fund. The numbers are
weighted relative to the portfolio holdings’
weight. Carbon data is based on data from
Sustainalytics.
5.3.2 WACI for listed equities (coverage ratio):
The indicator states the percentage of assets
covered by the “5.3.1 WACI for listed equities"
calculation, measured by Assets under
Management (AuM) weight. Holdings data from
Tryg Invest's Global Equities Fund is used. For
2022, there has been an adjustment in the
figure due to a rounding error.
5.3.3 WACI for benchmark: Calculation of the
indicator is done by using holdings data from
MSCI All Countries World Index. The numbers
are weighted relative to the benchmark
holdings’ weight.
5.3.4 WACI for benchmark (coverage ratio): The
indicator states the percentage of assets
covered by “5.3.3 WACI for benchmark"
measured by Assets under Management (AuM)
weight. Holdings data from MSCI All Countries
World Index is used.
5.3.5 Percentage difference: The indicator
states the percentage difference between the
carbon intensity for listed equities and for the
benchmark. Calculated as carbon intensity for
listed equities divided by carbon intensity for
benchmark – 1.
5.3.6 CO2e intensity reduction of equity
portfolio: The indicator states the percentage
difference between the carbon intensity for
listed equities and the baseline at end-2019.
For 2022, there has been an adjustment in the
figure due to a minor calculation error.
Management’s review - Sustainability statement contents
5.4 Carbon footprint
The Carbon footprint is calculated in tonnes of
CO2e (Scope 1 and 2) relative to investment
(million dollars), based of the issuer’s market
capitalisation. Carbon data based on data from
Sustainalytics. The calculation follows the
methodology of the “Carbon Footprint” metric
in the TCFD framework.
5.4.1 Carbon footprint for Listed equity: The
indicator is calculated using holdings data from
Tryg Invest's Global Equities Fund.
5.4.2 Carbon footprint for Listed equity
(coverage ratio): The KPI states the percentage
of assets covered by the “5.4.1 Carbon footprint
for listed equities”, measured by Assets under
Management (AuM) weight. Holdings data from
Tryg Invest's Global Equities Fund is used.
5.4.3 Carbon footprint for corporate bonds: The
KPI is calculated using holdings data from Tryg
Invest's Credit Fund. Only holdings from High
Yield and Investment Grade Corporate funds are
used in the calculation.
5.4.4 Carbon footprint for corporate bonds
(coverage ratio): The KPI states the percentage
of assets covered by “5.4.3 Carbon footprint for
corporate bonds” measured by AuM weight.
Holdings data from Tryg Invests Credit Fund is
used.
6 Social
All figures regarding Tryg's employees, gender
distribution, management, turnover and pay gap
are managed in Tryg's global HR system SAP
Successfactors
6.1 Characteristics of Tryg's employees
6.1.1 Total number of employees (headcount):
The headcount represents the number of
employees with employment status "active". It
Annual report 2023 | Tryg A/S | 78
includes the employment types; permanent,
temporary, and non-guaranteed hourly paid
employees. The employees are divided by
gender and age. All figures are an average of
headcounts during each month of the reporting
period, with the figures determined at the end of
each month.
6.1.2 Employee age groups
The age groups are calculated at the end of the
reporting period and include all headcounts in
Tryg. The age groups are >30, 30-49 and 50+
years.
6.1.3 Total gender distribution
Total headcounts are split into male, female, not
reported. To ensure inclusion, we will in 2024
introduce the category "‘others" in the
organisation.
6.2 Gender distribution at management levels
6.2.1 Gender distribution, all management
levels: Formerly called "Total share of women in
management positions". The number of
employees at management level is the year-end
headcounts who are employed in a
management position during the last month of
the reporting period.
A manager includes only "active" employments
and must have the employment types of either
"permanent" or "temporary". The indicator
includes Tryg’s four levels of management.
6.2.2 Gender distribution, top management
level: Gender distribution based on job level/
role. This is the upper level in Tryg called ‘Top
management’, which consists of ‘Senior Vice
President’, ‘Vice president’ and ‘Executive board
(EB)’.
6.2.3 Gender distribution, director level: Gender
distribution on the second management level,
the director level, is based on job level/role .
6.2.4 Gender distribution, the other level of
management: This indicator is defined
according to BEK no. 460 Section 143 (2). It is
the two management levels below the
Supervisory Board. The first level is the
Executive Board and persons who are
organisationally on the same level as the
Executive Board. The second level is mangers
with staff responsibilities reporting directly to
members of the Executive Board.
6.3 Employee turnover
6.3.1 Employee turnover (headcount): The
turnover rate is based on the total share of
employees leaving within the year divided by the
average headcount during the financial year.
The number includes all employees, including
temporary employees and non-guaranteed
hourly paid employees. Previous years have
only considered Permanent employees.
6.3.2 Total leavers and share of voluntary and
involuntary leavers (turnover rate): Total leavers
include both voluntary and involuntary leavers.
The share of leavers within the year is calculated
by dividing the number of, respectively,
voluntary and involuntary leavers by the average
total headcount. The number for 2023 covers all
employees, including temporary employees and
non-guaranteed hourly paid employees.
6.4 Pay gap
6.4.1 Gender pay gap: This indicator measures
female-male pay gap by calculating the
difference between average gross monthly
earnings of males and females that are included
in the headcount figure.
6.4.2 Annual total remuneration ratio: Total
annual remuneration ratio of the highest paid
employees to the median annual total
remuneration for all employees excl. the highest
paid employee. This indicator replaces the CEO
pay ratio.
employee-elected representatives.
Management’s review - Sustainability statement contents
6.5 Training and skills development
6.5.1 Employees who participated in regular
performance and career development: Training
reported to or registered by the HR department.
The figure includes only mandatory compliance
training. The figure is reported as a percentage
and total hours split by gender. Figures are
managed in Tryg’s global HR system SAP
Successfactors.
6.5.2 Total and average employee training
hours: The total and average employee training
hours based on headcount of "Permanent" and
"Management" employment types.
The total employee and average employee
training hours differs from previous figures
because the 2023 figures only include internal
compliance training.
The figures are based on Tryg’s three leaning
platforms: Microsoft LMS 360learning, Grow
Learning Lab and SAP SuccessFactors.
6.6 Employee engagement
Annual survey for all Tryg employees
(permanent and temporary) with a minimum of
three months seniority, working at least 40% full
time. It includes questions covering job
satisfaction, management, inclusion, job
content and learning and development.
Conducted by an external supplier. This
indicator was previously called: Employee
satisfaction.
7 Governance
7.1 Size of the Supervisory Board excl.
employee representatives
7.1.1 Size of the Supervisory Board excl.
employee representatives: The total number of
members in the supervisory Board excluding
7.1.2 Average ratio of female to male board
members: The average ratio of female to male
board members is calculated at the end of the
reporting period. The 2023 figures are exclusive
employee representatives. This indicator was
formerly called "Share of women, incl. employee
representatives".
7.1.3 Number of employee representatives: The
employee representatives are elected for a term
of four years, whereas members of the
Supervisory Board are elected for a term of one
year.
7.1.4 Number of executive and non-executive
members: Tryg’s Supervisory Board consists of
only non-executive directors, who are not
members of the Executive Board and who do
not have management responsibilities.
7.1.5 Board members age groups: The age
groups are calculated at the end of the reporting
period and includes all board members. The age
groups are <30, 30-49 and 50+ years.
7.1.6 Board meetings and attendance rate:
Board meetings include both ordinary and
extraordinary meetings. The attendance rate is
calculated by taking the sum of regular board
meetings attended per board member and
dividing by the total possible attendance.
7.1.7 Independent Supervisory board members
(numbers/%): Information about board
members and their independence is published
on Tryg's website [link] or see CVs on page 89 -
92. Independent members are calculated based
on their relation to Trygheds Gruppen. See also
the definition in Recommendations on
Corporate Governance.
7.2 Incentive schemes and Remuneration
Annual report 2023 | Tryg A/S | 79
sustainability they are high-performance
suppliers. The tracking is done for both Contract
suppliers and Suppliers with claims. Small
suppliers (size 1-5 employees) are classified by
accepting the Supplier Code of Conduct and
having a documented positive contribution
within a selected sustainability area.
7.6 Insurance fraud
The fraud figures only cover Denmark, but will in
2024 also include Sweden and Norway.
7.6.1 Notifications of potential fraud: Number of
notifications where there is suspected insurance
fraud and which is investigated by Tryg’s special
investigation unit.
7.6.2 Cases classified as fraud: Identification
and handling of cases follows the guidelines
defined by the trade associations. All
investigations of individual persons must be
approved by the Executive Board before being
initiated. Customers are always informed when
they have been selected for investigation and
are treated with respect in the process.
7.2.1 Sustainability-related performance,
Executive Board: Changed name from ESG-
linked pay, Executive Board. The percentage of
the Executive Board's variable salary that is
based on selected ESG KPIs. The target is based
on indicators related to CO2e reductions from
respectively claims handling processes and
Tryg's direct and indirect emissions, as well as
the share of top-line growth coming from
prevention initiatives, employee engagement
targets, and diversity and inclusion initiatives
and targets.
7.2.2 Remuneration of the Executive Board and
Supervisory Board: Tryg has a remuneration
policy for the Executive Board and Supervisory
Board. See definition and accounting principles
in Tryg's Remuneration report 2023.
7.3 Whistleblower cases
Number of cases reported via Tryg's
anonymous whistleblower hotline that is
available at tryg.com and via Tryg's intranet.
7.4 Harassment cases
Harassment is a collective term for cases of
discrimination, bullying, sexual harassment and
other types of harassment that can occur at the
workplace. Cases are reported to the HR
department through leaders, union or employee
representatives or through the Whistleblower
hotline.
7.5 Management of relationships with suppliers
7.5.1 Suppliers screened: Tryg systematically
screen Contract and Claims suppliers through
an evaluation platform to evaluate suppliers’
compliance with Tryg’s Supplier Code of
Conduct and sustainability performance.
7.5.2 High-performance suppliers: If a supplier
has accepted Tryg’s Supplier Code of Conduct
and has a policy or certificate within areas of
Management’s review - Sustainability statement contents
Annual report 2023 | Tryg A/S | 80
Management’s review - Sustainability statement contents
Independent limited assurance report on
ESG data
To the stakeholders of Tryg A/S
Tryg A/S engaged us to provide limited
assurance on the selected data described below
and marked with black dots in the reporting and
included in the annual report on pages 65-67
and 69-70 for the period 1 January – 31
December 2023.
Our Conclusion
Based on the procedures we performed and the
evidence we obtained, nothing has come to our
attention that causes us to believe that the
selected data in scope for our limited assurance
engagement included in the annual report on
pages 65-67 and 69-70 for the period 1 January
- 31 December 2023 has not been prepared, in
all material respects, in accordance with the
accounting policies developed by Tryg A/S, as
stated on pages 76-80. This conclusion is to be
read in the context of what we say in the
remainder of our report.
We are assuring
The scope of our work was limited to assurance
over selected sustainability data included in the
section Sustainability statement on pages 65-67
and 69-70 of the management review of the
annual report for 2023. This includes selected
environmental and social data, and selected
CO2e emissions data from claims handling,
marked with black dots in the reporting.
We express limited assurance in our conclusion.
Corresponding information
With effect from the current financial year, the
selected sustainability data included in the
section Sustainability statement on pages 65-67
and 69-70 of the management review of the
annual report for 2023 has become subject to
limited assurance engagement. Please note that
the comparative information stated in the
selected sustainability data included in the
section Sustainability statement on pages 65-67
and 69-70 has not been subject to assurance,
which also appears from the selected
sustainability data included in the section
Sustainability statement on pages 65-67 and
69-70.
Professional standards applied and level of
assurance
We performed our limited assurance
engagement in accordance with the
International Standard on Assurance
Engagements 3000 (Revised), ‘Assurance
Engagements other than Audits and Reviews of
Historical Financial Information’ and, in respect
of the greenhouse gas emissions stated on
pages 65-67, in accordance with International
Standard on Assurance Engagements 3410
‘Assurance engagements on greenhouse gas
statements’, issued by the International Auditing
and Assurance Standards Board. Greenhouse
Gas emissions quantification is subject to
inherent uncertainty as a result of incomplete
scientific knowledge used to determine
emission factors and the values and methods
needed to combine emissions of different gases.
professional standards, and applicable legal and
regulatory requirements.
A limited assurance engagement is substantially
less in scope than a reasonable assurance
engagement, in relation to both the risk
assessment procedures, including an
understanding of internal controls, and the
procedures performed in response to the
assessed risks; consequently, the level of
assurance obtained in a limited assurance
engagement is substantially lower than the
assurance that would have been obtained had a
reasonable assurance engagement been
performed.
Our independence and quality of control
We have complied with the independence
requirements and other ethical requirements in
the International Ethics Standards Board for
Accountants’ International Code of Ethics for
Professional Accountants (IESBA Code), which
is founded on fundamental principles of
integrity, objectivity, professional competence
and due care, confidentiality and professional
behaviour and ethical requirements applicable
in Denmark.
PricewaterhouseCoopers is subject to the
International Standard on Quality Management
1, ISMQ 1, and accordingly maintains a
comprehensive system of quality control,
including documented policies and procedures
regarding compliance with ethical requirements,
Our work was carried out by an independent,
multidisciplinary team with experience in
sustainability reporting and assurance.
Understanding reporting and measurement
methodologies
The ESG data and information need to be read,
and understood, together with the ESG
accounting policies, which Management is
solely responsible for selecting and applying.
The absence of a significant body of established
practice on which to draw on, to evaluate and
measure non-financial information allows for
different, but acceptable, measurement
techniques and can affect comparability
between entities over time.
Work performed
We are required to plan and perform our work in
order to consider the risk of material
misstatement of the ESG data. In doing so, and
based on our professional judgement, we:
• Made inquiries and conducted interviews
with Group functions to assess
consolidation processes, use of company-
wide systems, and controls performed at
Group level,
• Checked ESG data on a sample basis to
underlying documentation, and evaluated
the appropriateness of quantification
methods and compliance with the
Annual report 2023 | Tryg A/S | 81
Management’s review - Sustainability statement contents
accounting policies for preparing the
consolidated ESG data,
• Conducted an analytical review of the ESG
data and trend explanations submitted by all
business units for consolidation at Group
level,
• Considered the disclosure and presentation
of the ESG data statement, and
Evaluated the obtained evidence.
•
•
Statement on other sustainability information
mentioned in the report
Management is responsible for other
sustainability information communicated in the
2023 management review of the annual report.
•
Our responsibilities
We are responsible for:
•
planning and performing the engagement to
obtain limited assurance about whether
selected data in the 2023 annual report is
free from material misstatement, and has
been prepared, in all material respects, in
accordance with the accounting policies
developed by Tryg A/S.
forming an independent conclusion, based
on the procedures we have performed and
the evidence we have obtained; and
reporting our conclusion to the stakeholders
of Tryg A/S.
Our conclusion on the ESG data on pages 65-67
and 69-70 does not cover other sustainability
information and we do not express an
assurance conclusion thereon. In connection
with our review of the ESG data, we read the
other ESG and sustainability information and, in
doing so, considered whether the other ESG or
sustainability information is materially
inconsistent with the ESG data or our knowledge
obtained in the limited assurance engagement
or otherwise appear to be materially misstated.
We have nothing to report in this regard.
Hellerup, 25 January 2024
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no. 33771231
Per Rolf Larssen
State Authorised Public Accountant
mne24822
Management responsibilities
Management of Tryg A/S is responsible for:
•
designing, implementing and maintaining
internal controls over information relevant
to the preparation of data in the annual
report that is free from material
misstatement, whether due to fraud or error;
establishing objective accounting policies
for preparing data;
•
Stefan Vastrup
State Authorised Public Accountant
mne32126
• measuring and reporting data in the annual
•
report based on the accounting policies; and
the content of the annual report for the
period 1 January – 31 December 2023.
Annual report 2023 | Tryg A/S | 82
Management’s review - Sustainability statement contents
Reader's guide cf. sections 143, 144 and 146
Tryg reports according to the provisions of BEK no. 360 of 02/05/2023 the Danish Executive Order on Financial Reports for Insurance Companies and Lateral Pension Funds (Nationwide Occupational
Pension Funds).
Section 143
Reader's guide
Status and target for the Supervisory Board for increasing the share of the
underrepresented gender:
Section 143 subs. 1 (1) and subs. 5
Status, target, action plan and policy for increasing the share of the
underrepresented gender other management levels:
Section 143 subs. 1 (2), subs. 2 (2) and subs. 4 (1)(2)(3)
According to Danish law, the gender distribution of Tryg's Supervisory Board is considered equal and no target is required.
See description on page 54 and data table on page 71.
Policy, target, action plan and results for increasing the share of the underrepresented gender at other management levels are available
on pages 52 - 54 and in the tables on page 69.
Section 144
Business model
Section 144, subs. 2 (1)
Policies for sustainability
Section 144, subs. 2 (2)
Reader's guide
Tryg's business model is described on pages 4-5
A description of policies for sustainability and specifically for topics such as climate & environment, human and labour rights and
diversity, code of conduct, suppliers and investments are included across the relevant chapters. See pages 43, 52, 56, 60 and 62.
Actions, systems and due diligence processes and key risks
Section 144, subs. 2 (3)(4)
A description of actions for sustainability and specifically for topics such as climate & environment, human and labour rights and
diversity, code of conduct, suppliers and investments are included across the relevant chapters. See pages 43-46, 50-57, 60-63.
KPIs and results
Section 144, subs. 2 (5)(6)
Section 146
Data ethics policy
Section 146, subs. 1 and 2
See targets overview on page 41, results and progress described in the relevant chapters pages 45, 51, 54-57, 63 and in the ESG data
tables on pages 65-71. Description of accounting principles on pages 76-80.
Reader's guide
Tryg's data ethics policy is described on pages 58-59.
Annual report 2023 | Tryg A/S | 83
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
financial results. For this reason, Tryg’s IR team
strives to be as open and transparent as
possible to ensure that stakeholders’
information requirements are met at the highest
possible level. IR is in charge of communication
with equity investors, fixed income investors
and rating agencies.
After the publication of quarterly and annual
reports, Tryg’s management and IR team
ordinarily travel extensively to meet with
shareholders 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. 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
analysts, who continuously update their
recommendations 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 are unveiled, is hosted every
three years. At the latest Capital Markets Day in
November 2021, financial targets for 2024 were
disclosed. Tryg targets an insurance service
result of between DKK 7.2bn and DKK 7.6bn, a
combined ratio at or below 82, an expense ratio
around 13.5 and a return on own funds at or
above 25%. In 2024, all targets have been
updated following the introduction of the new
accounting standard, IFRS 17.
The Tryg share
The Tryg share is listed on the NASDAQ
Copenhagen 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
167.7 and ended 2023 at DKK 146.9. Total
return (price and dividends) on the share was a
negative -8%. The Tryg share was under
pressure in the first half of the year as inflation
worries hit non-life insurance stocks,
particularly those with a high valuation. The
second half of the year and especially the
autumn have been positive for share price
performance given also lower inflation
expectations. 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 -8%,
underperforming the European Insurers' sector,
which produced a return of 13%. Equity market
performance during the year was mixed.
Volatility has been high, with positive periods
followed by corrections and performance
generally driven by a few selected shares as
opposed to a broad-based trend.
Share capital and ownership
Tryg’s share capital totalled DKK 3,174,174,900
on 31 December 2023. There is one share class
(634,834,980 shares with a nominal value of
DKK 5), and all shares rank pari passu. The
largest shareholder, TryghedsGruppen smba,
owns 47,5%* 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.
Insurance is one of the sectors offering the
highest dividend yield. From an investment
perspective, 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:
• 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 compared to 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.
Management’s review - Contents
TryghedsGruppen
In 2023, and for the eighth year
running, Tryg’s largest
shareholder,
TryghedsGruppen, paid out
DKK 950m in member
bonuses to Tryg in Denmark,
corresponding to 6% of the
annual premiums paid in 2022.
TryghedsGruppen owns
47,5%* of the shares in Tryg.
TrygFonden
TrygFonden is the leading and
best-known peace-of-mind
promoter in Denmark,
supporting around 800
activities that contribute to
creating peace of mind, such
as coastal lifeguards, cuddle
bears for children in hospital
and defibrillators. 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 2023 | Tryg A/S | 84
• The capital level may be adjusted via
extraordinary dividends or share buybacks
Annual general meeting
Tryg’s annual general meeting will be held on 21
March 2024 at 15:00 CET. The notice will be
advertised in the daily press in February 2024
and will be sent to shareholders upon request.
Management’s review - Contents
Financial calendar 2024*
26 Jan. 2024 Tryg shares are traded ex-dividend
30 Jan. 2024 Payment of Q4 dividend
21 Mar. 2024 Annual general meeting
17 Apr. 2024 Interim report Q1
18 Apr. 2024 Tryg shares are traded ex-dividend
22 Apr. 2024 Payment of Q1 dividend
11 July 2024 Interim report Q2 and H1
12 July 2024 Tryg shares are traded ex-dividend
16 July 2024 Payment of Q2 dividend
11 Oct. 2024 Interim report Q1-Q3
14 Oct. 2024 Tryg shares are traded ex-dividend
16 Oct. 2024 Payment of Q3 dividend
Shareholders
at 31 December 2023
Free float - geographical distribution
at 31 December 2023
* Supervisory Board's approval required
*Shareholders holding more than 10,000 shares. Source:
CMi2i
*Free float is exclusive of TryghedsGruppen. Source:
CMi2i
Shareholder distribution
DKKm
Dividend
Dividend per share (DKK)
Payout ratio
Extraordinary share buyback programme
Extraordinary dividend
Extraordinary dividend per share (DKK)
2023
2022
2021
2020
2019
4,734
7.40
123 %
1,000
4,118
6.29
183 %
5,000
2,802
4.28
89 %
2,115
2,056
7.0
76 %
6.8
72 %
500
1.65
Annual report 2023 | Tryg A/S | 85
37%16%18%21%DenmarkUKUSAOthers47%21%28%4%TryghedsgruppenLarge Danish shareholders*Large international shareholders*Small shareholders
Management’s review - Contents
Corporate governance
Tryg focuses on managing the company in
accordance with the principles of good
corporate 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-explain’ principle for each individual
recommendation. This section on corporate
governance is an excerpt of the corporate
governance report.
Download Tryg’s Statutory Corporate
Governance Report at www.tryg.com/en/
downloads-2023
Dialogue between Tryg, its shareholders and
other stakeholders
Tryg’s Investor Relations (IR) department
maintains 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
quarterly interim reports in English.
Furthermore, Tryg publishes an annual profile in
Danish. The profile is addressed to Tryg’s private
shareholders, customers, employees and other
* Calculated excluding Tryg's own shares
stakeholders and will be published on 25
January 2024.
Tryg also prepares quarterly investor
presentations which are used in the dialogue
with investors and analysts. Additionally, Tryg
also regularly publishes IR newsletters on
relevant topics. All announcements, financial
reports, presentations 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 https://dk.linkedin.com/company/
tryg
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 disclosure 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
Shareholders may also opt to receive the notice
by post or email. The notice contains
information about the time and venue, or
technical requirements for attending the
meeting virtually, as well as an agenda for the
meeting.
All shareholders are encouraged to attend the
general meeting. If the Supervisory Board
decides to hold general meetings exclusively
through electronic means, detailed information
concerning registration and procedures for
virtual attendance including how to ask
questions and submit comments and cast votes
will be made available at Tryg’s website and in
the notice convening such electronic general
meetings. Thus, there will be clear instructions
and feedback channels ensuring sufficient
safeguards for shareholders' participation rights
at potential future virtual-only meetings.
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
47,5%* 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.
Shareholders may propose items to be included
on the agenda for the AGM and may ask
questions 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.
Duties, responsibilities and composition of the
Supervisory Board
The Supervisory Board is responsible for the
central strategic management and financial
control 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.
Annual General Meeting
Tryg holds an Annual General Meeting (AGM)
every year. As required by the Danish
Companies 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.
Furthermore, prior to the general meeting, Tryg
invites shareholders to submit written questions
to be considered at the general meeting.
Information on how to exercise shareholders’
rights at the general meeting is clearly
communicated to shareholders and published
at tryg.com.
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
Annual report 2023 | Tryg A/S | 86
company. The Executive Board works with the
Supervisory Board to ensure that the Group’s
strategy is developed and monitored. The
Supervisory 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
Supervisory Board were elected by the annual
general 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
89-92 for information on when the individual
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
Supervisory Board has members from Denmark,
Sweden and Norway.
See details about the independent board
members in the section Supervisory Board
on pages 89-92 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
evaluation process. The Supervisory Board
focuses primarily on the following qualifications
and skills: business judgement, problem solving,
networking, risk management, succession
management, general management, CFO/audit,
people and organisation, ESG, business
development, financial services, risk and
regulatory compliance, insurance – 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
meetings in Tryg.
In 2023, an externally assisted evaluation was
conducted of all board members and members
of the executive management based on a
questionnaire focusing on board competencies
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 ESG, Diversity
and Digitalisation.
Management’s review - Contents
See CVs and descriptions of skills in the
section Supervisory Board on pages 89-92
and at www.tryg.com/en/governance/
management/supervisory-board
See the General action plan for diversity
including women in management at
www.tryg.com/en/governance/policies
Duties and composition of the Executive Board
Each year, the Supervisory Board reviews and
adopts the rules of procedure of the Supervisory
Board and the Executive Board, comprising
relevant policies, guidelines and instructions
describing reporting requirements and
requirements for communication with the
Executive Board. Financial legislation also
requires the Executive Board to disclose all
relevant information to the Supervisory Board
and report on compliance with limits defined by
the Supervisory Board and in legislation.
The Supervisory Board considers the
composition, development, risk and succession
plans of the Executive Board in connection with
the annual evaluation of the Executive Board,
and regularly 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 diversity at all management
levels. Tryg has adopted policy and target
figures for the underrepresented gender that set
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 management positions to
41%. The number of women in management
positions increased from 40.55% in 2022 to
42.35% in 2023, exceeding the initial target.
Progress has been driven through continuous
focus in the recruitment and HR processes.
Board committees
Tryg has an Audit Committee, a Risk Committee,
a Nomination Committee, a Remuneration
Committee and an IT Data Committee. The
frameworks for the committees’ work are
defined in their terms of reference.
The board committees’ terms of reference
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.
See the tasks of the Board Committees in
2023 at www.tryg.com/en/governance/
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 Committee 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 representatives in
the committees is also considered important.
The committees exclusively prepare matters for
decision by the entire Supervisory Board.
Annual report 2023 | Tryg A/S | 87
The specialist skills of all members are
also described at www.tryg.com/en/
governance/management/supervisory-
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 2023 was adopted by the Supervisory Board
in January 2023 and approved by the annual
general meeting on 30 March 2023.
The Chair of the Supervisory Board reports on
Tryg’s remuneration policy each year in
connection with the review of the annual report
at the annual general meeting. The Board’s
proposal for the remuneration of the
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.
For the performance year 2023, the variable pay
element was in January 2024 allotted as a
combination of cash and conditional shares.
Deviations and explanations
Tryg complies with all the Recommendations on
Corporate Governance.
Management’s review - Contents
Tryg wants to strike an appropriate balance
between management remuneration,
predictable 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
appropriate 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 base
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
programme 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 decided at the beginning of the
performance year.
The principal purpose of the incentive
programme is to ensure the congruence of the
financial 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.
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
Remuneration 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
meetings 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
independent auditor recommended by the
Supervisory 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
matters that need to be reported to the
Supervisory Board.
Annual report 2023 | Tryg A/S | 88
Supervisory Board
Charlotte Dietzer (1974)
Board member, Employee representative
Manager advisor in Claims Denmark,
Tryg A/S. Has solid knowledge and
experience within the insurance industry.
Tina Snejbjerg (1962)
Board member, Employee representative
Officer of Tryg’s Personnel Department.
Employed since 1987.
Lena Darin (1961)
Board member, Employee representative
Since 1989, Lena Darin has worked as a
claims handler in the insurance industry.
Management’s review - Contents
Jukka Pertola (1960)
Chairman
More than 25 years of top
management experience in the IT
and telecommunication industry and
electrical engineering, the latest
position being the CEO of Siemens
Denmark from 2002 to 2017.
Elias Bakk (1975)
Board member, Employee representative
Product & Strategic Engagement Manager
in Tryg A/S. Solid insurance knowledge
from his years in the industry, business
know-how and judgement.
Mengmeng Du (1980)
Jørn Rise Andersen (1956)
Board member
Thorough knowledge of the Tech startup
space as well as international experience
from leading positions within Marketing
and Operations at Spotify and COO
at Acast.
Board member
Many years of experience from top
management positions in Danish trade
unions as well as board seats
in financial companies.
Anne Kaltoft (1961)
Board member
CEO of Hjerteforeningen.
Many years of leadership
experience at a high level.
Thomas Hofman-Bang (1964)
Carl-Viggo Östlund (1955)
Mari Thjømøe (1962)
Steffen Kragh (1964)
Claus Wistoft (1959)
Mette Osvold (1978)
Board member
CEO in the Danish Industry
Foundation. Extensive global
experience in the B2B environment
and within the professional
services industry.
Board member
Has experience from insurance,
logistics, finance and banking, from
leading positions in listed and
non-listed companies. Carl-Viggo
Östlund has specialist knowledge of
Swedish market conditions.
Board member
Business know-how from experience with
the financial sector and energy.
Understanding of risk management, strategy,
restructuring, business development, M&A,
IR and financial communication and working
with regularity authorities.
Deputy Chairman
22 years’ experience heading an
international company with 6,000
employees within the consumer
space where technology, data,
subscription, and user experience
are key elements.
Board member
Top management experience from
operating his own business for 38 years.
Analytical approach to problem-solving,
solid business know-how and business
development, understanding of risk
management and succession.
Board member, Employee representative
Since 2003, Mette Osvold has held various
positions in Tryg, including as process and
business developer, project manager,
competence manager and most recently
as Chair of Finansforbundet in Tryg.
Annual report 2023 | Tryg A/S | 89
Management’s review - Contents
Supervisory Board
Jukka Pertolaa)
Steffen Kragha)
Mari Thjømøea)
Carl-Viggo Östlunda)
Born in 1960. Joined the Supervisory Board in 2017.
Finnish citizen.
Born in 1964. Joined the Supervisory Board in 2023.
Danish citizen.
Born in 1962. Joined the Supervisory Board in 2012.
Norwegian citizen.
Born in 1955. Joined the Supervisory Board in 2015.
Swedish citizen.
Career Professional board member. Former CEO of
Siemens Denmark
Education MSc in Electrical Engineering
Board seats, Chair Tryg A/S and Tryg Forsikring A/S,
Siemens Gamesa Renewable Energy A/S, COWI Holding
A/S, GN Store Nord A/S incl. GN Audio A/S and GN
Hearing A/S
Board member Asetek A/S
Committee memberships Remuneration Committee
(Chair), Nomination Committee (Chair) and IT Data
Committee in Tryg A/S, Nomination and Remuneration
Committee in COWI Holding A/S (Chair), Remuneration
Committee (Chair) Asetek A/S, Remuneration Committee,
Nomination Committee and Strategy (Chair) in GN Store
Nord A/S
Experience More than 25 years of top management
experience in the IT and telecommunication industry and
electrical engineering. The latest position being the CEO
of Siemens Denmark from 2002 to 2017. Broad
international experience with global and regional business
responsibilities in both BtC and BtB
Competencies Solid technological background in
telecommunication, IT, digitalisation, business models,
strategy and business development. Understanding and
experience of risk management, M&A, ESG, business
know-how and judgement as well as insurance
Number of shares 13,000
Change in portfolio since the start of 2023 0
Career President & CEO of Egmont Fonden and Egmont
International Holding A/S since 2001 (as well as
management positions in 12 Egmont daughter
companies). Previously CEO of Egmont subsidiaries,
employment in insurance and banking group Hafnia
Holding A/S and stockbroker Erik Møllers Efterfølgere A/S.
Education MSc in Economics and MBA
Board seats, Chair Lundbeckfonden (including
Lundbeckfond Invest A/S). Various Egmont companies
Board seats, Deputy Chair Tryg A/S and Tryg Forsikring A/
S, Lundbeckfonden (including Lundbeckfond Invest A/S).
Board member: Various Egmont companies
Director: NKB Invest 103 ApS
Committee memberships Lundbeckfonden (Investment
committee)
Experience 22 years’ experience heading an international
company with 6,000 employees within the consumer
space where technology, data, subscription, and user
experience are key elements.
Former chairman of Nykredit, including roles in Audit,
Risk, Remuneration and Nomination Committee
Competencies Experience within strategy, economics,
finance and accounting, capital markets, securities and
funding, legal and regulatory matters of importance to
financial business, and corporate management including
data, technology and ESG.
Number of shares 6,500
Change in portfolio since the start of 2023 -
Career Former CEO of Swedish banks SBAB and Nordnet
and the insurance company SalusAnsvar. At present
entrepreneur, professional board member and investor
Education BSc in International Business and Finance &
Accounting, Stockholm School of Economics
Board seats, Chair Coeli Finans AB, Fondo Solutions AB,
Gladsheim Fastigheter AB, Juvinum Food & Beverage AB,
Nedvi Fastigheter AB, Picsmart AB and Ponture AB
Board member Tryg A/S and Tryg Forsikring A/S, Allert
Östlund AB, Goobit Group AB including Goobit AB, Goobit
Exchange AB and Goobit Blocktech AB, Havsgaard AB,
Ywonne Media Group AB, Wonderbox AB, Hemdel AB,
Umbrella Finans 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,
understanding of digitalisation and risk management, ESG
Number of shares 7,788
Change in portfolio since the start of 2023 0
Career Professional board member and independent
advisor. Former CFO of KLP and CFO/CEO of Norwegian
Property
Education MSc in Economics and Business
Administration, Chartered Financial Analyst (CFA), the
Senior Executive Programme from London Business
School and Effective Board Management from Harvard
Business School
Board seats, Chair Seilsport Maritimt Forlag A/S and
ThjømøeKranen A/S
Board seats, Deputy Chair Norconsult ASA, Norconsult
Norge AS
Board member Tryg A/S and Tryg Forsikring A/S, Hafslund
AS, Deezer SA, Varme og Bad AS, SINTEF Eiendom Holding
AS, FCG Fonder AB
Committee memberships Audit Committee and Risk
Committee in Tryg A/S, Audit Committee (Chair) in
Norconsult A/S, Audit Committee (Chair) in Deezer SA 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 ten 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
management, strategy, restructuring, business
development, M&A, IR and financial communication and
working with regulatory authorities
Number of shares 16,817
Change in portfolio since the start of 2023 0
Annual report 2023 | Tryg A/S | 90
Supervisory Board
Thomas Hofman-Banga)
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
Private Equity 2022 K/S, K Alternativ Private Equity 2023,
K Alternativ Private Equity 2024, K/S, Half Double
Institute fmba
Board seats, Deputy Chair Bikubenfonden
Board member Tryg A/S and Tryg Forsikring A/S and
Tranes Fond, Foreningen Roskilde Festival
Committee memberships Audit Committee (Chair) and
Risk Committee (Chair) in Tryg A/S
Experience Extensive global experience in the B2B
environment and within the professional services industry
in various roles as CEO, CFO, COB, non-executive director
and advisor for world class and market leading
companies, 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,
development and execution of ambitious growth
strategies focused on value creation, performance
culture, transparency, integrity, strong team performance
and sustainability
Number of shares 12,233
Change in portfolio since the start of 2023 +7,403
Mengmeng Dua)
Born in 1980. Joined the Supervisory Board in 2022.
Swedish citizen.
Career Independent advisor to tech startups and
professional board member. Former leading positions at
Spotify and Acast
Education MSc in Economics and Business Administration
from Stockholm School of Economics, MSc in Computer
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 IT Data Committee in Tryg A/S,
People and Remuneration Committee in Swappie Oy
Experience 10+ years of top management experience and
as board member. Thorough knowledge of the Tech
startup 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 General top management experience from
the Tech industry. Extensive experience in the areas of IT
& digitalisation, transformation, marketing, organisation,
strategy and business development
Number of shares 3000
Change in portfolio since the start of 2023 +3,000
Anne Kaltoftb)
Born in 1961. Joined the Supervisory Board in 2023.
Danish citizen.
Career Managing Director of the Danish Heart
Foundation.
Education MSc in Medicine, Medical Specialist in
cardiology, PhD in cardiology, Master of Public
Management. Pathfinder (a leadership development
programme).
Board seats, Chair Tjenestemændenes Laaneforening,
Dansk Told og Skatteforbunds Fælleslegat,
TryghedsGruppen SMBA
Board member Tryg A/S, Tryg Forsikring A/S,
TryghedsGruppen smba
Committee memberships TrygFondens bevillingsudvalg
Experience Many years’ experience from top
management positions within the Danish healthcare
system, and as Managing Director of the Danish Heart
Foundation
Competencies Competencies within management,
strategy and business development, communication and
governance, optimisation of structure and processes,
financial management and social development within
health
Number of shares 0
Change in portfolio since the start of 2023 -
Claus Wistoftb)
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
development 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, I/S Torntoft jf, Seidelmann
Holding ApS, Houmarken A/S, Lyngfeldt A/S, Lyngfeldt
Finansiering A/S, Lyngfeldt Maskinudlejning ApS,
Komplementarselskabet Prinz Carl Anlage I ApS, K/S Prinz
Carl Anlage I and Ejendomsfonden - Maltfabrikken
Experience Top management experience from operating
his own business for 38 years
Competencies Analytical approach to problem-solving,
solid business know-how and business development,
understanding of risk management and succession
Number of shares 5,416
Change in portfolio since the start of 2023 0
Jørn Rise Andersenb)
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
Authorities. Various accounting courses (business
diploma level), such as internal and external accountancy,
organisation and tax law
Board seats, Chair Dansk Told og Skatteforbunds
Fælleslegat, TryghedsGruppen SMBA
Board member Tryg A/S and Tryg Forsikring A/S,TJM
Forsikring, Lån og Spar Bank A/S, Interesseforeningen,
Fondet af 1844, Fagbevægelsens Hovedorganisation (the
Trade Union Central Organisation), CO10 (The Central
Organisation of 2010) and Forenede Gruppeliv
Committee memberships Remuneration committee and
nomination committee in Tryg A/S, Chairman of the Audit
Committee in Lån og Spar Bank A/S, member of the Risk
Management’s review - Contents
Committee and Remuneration Committee in Lån og Spar
Bank A/S
Experience Many years of experience from top
management 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
Change in portfolio since the start of 2023 0
Charlotte Dietzerb)
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
communication educations. Supervisory Board education
at Forsikringsakademiet
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 the start of 2023 0
Annual report 2023 | Tryg A/S | 91
Supervisory Board
Tina Snejbjergb)
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
Committees 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
customers. 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 recruiting 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 held 2,657
Change in portfolio since the start of 2023 0
Elias Bakkb)
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.
Programme 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,
experience with organisation development, business
development, customer handling and interaction
Number of shares 4,000
Change in portfolio since the start of 2023 +1,000
Mette Osvoldb)
Born in 1978. Joined the Supervisory Board in 2022.
Norwegian citizen.
Employed since 2003
Career Chair of 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
developer, project manager, competence manager and
most recently as Chair of Finansforbundet in Tryg
Competencies High competencies and experience within
the insurance industry, management, strategy and
business development, negotiations, processes and
organisation optimisation.
Number of shares held 853
Change in portfolio since the start of 2023 0
Lena Darinb)
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 held 0
Management’s review - Contents
Change in portfolio the start of 2023 0
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.
Committee meeting overview 2023
Name
Supervisory
Board
Audit
Committee
Risk
Committee
Nomination
Committee
Remuneration
Committee
IT Data
Committee
Jukka Pertola
Steffen Kragha)
Mari Thjømøe
Carl-Viggo Östlund
Thomas Hofman-Bang
Mengmeng Du
Anne Kaltoftb)
Claus Wistoft
Jørn Rise Andersen
Charlotte Dietzerc)
Tina Snejbjerg
Elias Bakk
Mette Osvold
Lena Darin
15/15
10/15
15/15
15/15
15/15
15/15
10/15
15/15
15/15
15/15
15/15
15/15
15/15
15/15
5/6
6/6
6/6
8/8
7/8
8/8
5/6
6/6
6/6
5/6
6/6
4/6
6/6
6/6
6/6
6/6
6/6
6/6
5/6
6/6
a) Joined the Board 30 March 2023. Please note that 5 board meetings were held prior to 30 March 2023, and 10 were
held after 30 March 2023. As for the Audit Committee, 5 meetings were held after 30 March 2023. As for the Risk
Committee, 5 meetings were held after 30 March 2023. As for the Nomination Committee, 7 meetings were held after 30
March 2023. As for the Remuneration Committee, 4 meetings were held after 30 March 2023.
b) Joined the Board 30 March 2023. Please note that 5 board meetings were held prior to 30 March 2023, and 10 meetings
were held after 30 March 2023.
c) Joined the IT-Data Committee 30 March 2023. Please note that 1 IT-Data Committee meeting was held before 30 March
2023, and 5 IT-Data committee meetings were held after 30 March 2023.
Annual report 2023 | Tryg A/S | 92
Executive Board
Allan Kragh Thaysen (1977)
Group CFO
Key competencies include
management, accounting, tax,
external and internal reporting,
Financial Planning & Analysis,
reserving, risk management and
capital modelling. He is a
commercially oriented finance
executive with a strong strategic,
technical and commercial focus
and understanding of the
business.
Alexandra Bastkær Winther (1985)
Group CCO
Key competencies include experience in
strategy development & execution, M&A and
large-scale transformations. She has an
innovative and commercial mindset with a
continuous focus on identifying potential for
further improvement.
Management’s review - Contents
Johan Kirstein Brammer (1976)
Group CEO
Has an international 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 business and improve the
customer experience through innovation and
digitalisation.
Mikael Kärrsten (1975)
Group CTO
Key competencies include management, case
underwriting, pricing, profitability, analytics,
portfolio management and product
development.
Lars Bonde (1965)
Group COO
Comprehensive experience from the insurance
industry. Experienced in strategy, business
development, digitalisation, innovation, legal
and M&A. Management and leadership
experience, including international experience.
Annual report 2023 | Tryg A/S | 93
Executive Board
Johan Kirstein Brammer Group CEO
Born in 1976. Joined Tryg in 2016.
Joined the Executive Board in 2018.
Education: LL.M., University of Copenhagen, MBA
Australian Graduate School of Management, and
Graduate Diploma (HD-Finance) Copenhagen Business
School
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,
Johan held numerous executive roles with TDC before
joining 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
international 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
business and improve the customer experience through
innovation and digitalisation. Johan has extensive
experience within transformative M&A across borders
and sectors
Number of shares held: 74,854
Number of shares held at the start of 2023: 55,287
Change in portfolio: +19,567
Allan Kragh Thaysen Group CFO
Born in 1977. Joined Tryg in 2018.
Joined the Executive Board in 2023.
Education: Graduate Diploma (HD/R) in Accounting and
an MSc in Business Economics and Auditing (CMA) from
Copenhagen Business School
Experience: Since May 2018, Allan Kragh Thaysen has
been SVP of Group Finance in Tryg. Before then he held
several positions in the Norwegian company Gjensidige
from 2005 to 2018, where he became Financial Director
for the Danish and Swedish operation of the business
from 2010 to 2018. He started his career as an
accountant at Deloitte from 1998 to 2005.
Allan Kragh Thaysen is deeply rooted in the insurance
sector and has extensive experience from finance
management within non-life insurance. He has for many
years been in management positions within the core
finance areas: accounting, tax, external and internal
reporting, Financial Planning and Analysis, reserving, risk
management and capital modelling.
Throughout his career he has been part of several M&A
transactions and integration cases, and he played a
pivotal role for Tryg in the acquisition of RSA’s
Scandinavian businesses, Trygg-Hansa and Codan
Norway.
Competencies: Allan Kragh Thaysen’s key competencies
include management, accounting, tax, external and
internal reporting, FP&A, reserving, risk management and
capital modelling. Allan Kragh Thaysen is a commercially
oriented finance executive with a strong strategic,
technical and commercial focus and understanding of the
business.
Number of shares held: 504
Number of shares held at the start of 2023: -
Change in portfolio: -
Alexandra Bastkær Winther Group
CCO
Born in 1985. Joined Tryg in 2020.
Joined the Executive Board in 2023.
Education: Mphil in Finance, University of Cambridge MSc
Economics, University of Copenhagen
Board seats: Forsikring og Pension, Scandi JV Co 2 A/S
Experience: Alexandra Bastkær Winther is an
accomplished executive leader with experience spanning
across multiple industries and geographies. At Tryg,
Alexandra initially led the transformative acquisition of
Trygg-Hansa and Codan NO. Subsequently, she headed
up Alka Forsikring, acting as ‘CEO’. Here, she was a board
member of Alka Liv II and Alka Fordele. Prior to Tryg,
Alexandra was with Boston Consulting Group (BCG) for
almost a decade working as a management consultant
across more than 20 countries and numerous industries,
before she specialised in Financial Institutions, M&A, and
Transformation. Prior to BCG, Alexandra was with J.P.
Morgan Chase & Co. in London where she worked in
capital markets, focusing on equity derivates for
institutional investors.
Competencies: Alexandra Bastkær Winther comes with
deep experience in strategy development & execution,
M&A and large-scale transformations. She has an
innovative and commercial mindset with a continuous
focus on identifying potential for further improvement.
This is supported by a strong implementation capacity,
focus on leadership & change management, ultimately
driving better outcomes for customers and employees.
Number of shares held: 235
Number of shares held at the start of 2023: -
Change in portfolio: -
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,
Forsikringsakademiet and F&P Arbejdsgiver
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
consecutive 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
international experience. Extensive board experience
across several countries
Number of shares held: 142,707
Number of shares held at the start of 2023: 122,692
Change in portfolio: 20,015
Management’s review - Contents
Mikael Kärrsten Group CTO
Born in 1975. Joined Tryg in 2022.
Joined the Executive Board in 2023.
Education: Master in Business Economics
Board seats, Chair: Tryg Livsforsikring A/S
Board member: Trafikförsäkringsföreningen
Experience: Mikael Kärrsten has extensive experience
from insurance management, particularly within the
technical field, including portfolio management, case
underwriting, pricing and product management. Over the
past 15+ years he has held management positions within
underwriting, both in commercial and personal lines.
Before joining Tryg as part of the acquisition of Trygg-
Hansa and Codan Norway in April 2022, he held positions
as Underwriting Director for Trygg-Hansa (2016-2018)
and Chief UW Officer for RSA Scandinavia (2018-2022).
In RSA Scandinavia, Mikael was one of the key architects
of the insurance technical excellence programme that
gained RSA Scandinavia in general and Trygg-Hansa in
particular a competitive edge through in-depth portfolio
understanding and proactive action management. This
experience was brought into Tryg when Mikael joined the
company as PPU (price, product and underwriting)
Director, and in 2023 Mikael join the Executive Board of
Tryg.
Competencies: Mikael Kärrsten’s key competencies
include management, case underwriting, pricing,
profitability, analytics, portfolio management and product
development.
Mikael Kärrsten is a commercially oriented, technical
insurance executive with a strong strategic focus as well
as focus on setting and achieving ambitious goals. Having
spent two decades within insurance, he has an
understanding of most insurance activities and has the
ability to connect dots and simplify complex issues and
generate results through proactive leadership.
Number of shares held: 2,880
Number of shares held at the start of 2023: -
Change in portfolio: -
Annual report 2023 | Tryg A/S | 94
Contents – Financial statements 2023
Financial statements - Contents
Tryg's Group consoildated financial statements are prepared in accordance with IFRS
Tryg Group
Note
Statement by the Supervisory Board and the
Executive Board
Independent Auditor’s Reports
Financial highlights
Income statement
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Cash flow statement
1 Risk and capital management
2 Operating segments
2 Insurance service result by geography
3 Insurance revenue
4 Insurance service result
5 Insurance service expenses
6 Interest and dividends
7 Value adjustments
8
8
9
9
Net finance income/expenses from insurance
contracts
Net finance income/expenses from reinsurance
contracts
10 Other income and costs
11 Tax
96
97
101
102
103
104
105
107
108
121
127
127
127
131
131
131
131
131
132
Note
12 Intangible assets
13 Property plant and equipment
14 Investment property
15 Equity investments in associates
16 Financial assets
17 Assets from reinsurance contracts
18 Cash at bank and in hand
19 Current tax
20 Equity
21 Provisions for insurance contracts
22 Pensions and similar obligations
23 Deferred tax
24 Other provisions
25 Earnings per share
26 Other debt
27
27
Contractual obligations, collateral and contingent
liabilities
28 Acquisition activities
29 Related parties
30 Financial highlight
31 Accounting policies
32 Transition to IFRS 9 & IFRS 17 at 1 January 2023
133
137
138
138
139
142
144
144
147
148
150
151
152
152
153
154
157
158
160
161
174
Tryg A/S (parent company)
Income and comprehensive income statement
Statement of financial position
Statement of changes of equity
Notes
Reporting for Q4
Q4 2023 Quaterly outline
Information
Group chart
Glossary, key rations and alternative performance
meassures
Disclaimer
176
177
178
179
183
187
188
190
Annual report 2023 | Tryg A/S | 95
Financial statements - Contents
Statement by the Supervisory Board
and the Executive Board
The Supervisory Board and the Executive Board
have today considered and adopted the annual
report for 2023 of Tryg A/S and the Tryg Group.
The consolidated financial statements are
prepared in accordance with IFRS Accounting
Standards 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.
Management’s Review has been prepared in
accordance with the Danish Financial Business
Act and Article 8 of Regulation (EU) 2020/852
(EU Taxonomy Regulation). The annual 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
position at 31 December 2023 and of the
results of the Group and the parent company’s
operations and the cash flows of the Group for
the financial year 1 January 2023 - 31
December 2023.
We are furthermore of the opinion that the
management’s review includes a fair review of
the 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 company’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
2023 with the file name TRYG-2023-12-31-
en.zip is prepared, in all material respects, in
compliance with the ESEF Regulation.
We recommend that the annual report be
adopted by the shareholders at the annual
general meeting.
Ballerup, 25 January 2024
Executive Board
Johan Kirstein Brammer
Group CEO
Allan Kragh Thaysen
Group CFO
Lars Bonde
Group COO
Alexandra Bastkær Winther
Group CCO
Mikael Kärrsten
Group CTO
Supervisory Board
Jukka Pertola
Chairman
Steffen Kragh
Deputy Chairman
Mari Thjømøe
Carl-Viggo Östlund
Thomas Hofman-Bang
Mengmeng Du
Anne Kaltoft
Claus Wistoft
Jørn Rise Andersen
Charlotte Dietzer
Tina Snejbjerg
Elias Bakk
Mette Osvold
Lena Darin
Annual report 2023 | Tryg A/S | 96
Independent
Auditor’s Reports
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 2023
and of the results of the Group’s operations and
cash flows for the financial year 1 January to 31
December 2023 in accordance with IFRS
Accounting 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 2023 and of the results of the Parent
Company’s operations for the financial year
1 January to 31 December 2023 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.
What we have audited
The Consolidated Financial Statements of
Tryg A/S for the financial year 1 January to
31 December 2023 comprise the consolidated
income statement and statement of other
comprehensive income, the consolidated
statement of financial position, the consolidated
statement of changes in equity, the consolidated
cash flow statement and notes, including
material accounting policy information.
The Parent Company Financial Statements of
Tryg A/S for the financial year 1 January to
31 December 2023 comprise the income
statement and statement of other
comprehensive income, the statement of
financial position, the statement of changes in
equity and notes, including material accounting
policy information.
Collectively referred to as the “Financial
Statements”.
Basis for opinion
We conducted our audit in accordance with
International Standards on Auditing (ISAs) and
the additional requirements applicable in
Denmark. Our responsibilities under those
standards and requirements are further
described in the Auditor’s responsibilities for
the audit of the Financial Statements section
of our report.
Financial statements - Contents
We believe that the audit evidence we have
obtained is sufficient and appropriate to provide
a basis for our opinion.
Statement on Management’s Review
Management is responsible for Management’s
Review.
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,
prohibited 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
period of uninterrupted engagement of three
years including the financial year 2023.
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
Management’s Review and, in doing so, consider
whether Management’s Review is materially
inconsistent with the Financial Statements or
our knowledge obtained in the audit, or
otherwise appears to be materially misstated.
Moreover, we considered whether
Management’s Review includes the disclosures
required by the Danish Financial Business Act
and Article 8 of Regulation (EU) 2020/852 (EU
Taxonomy Regulation).
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 and Article 8 of Regulation (EU) 2020/852
(EU Taxonomy Regulation). We did not identify
any material misstatement in Management’s
Review.
Annual report 2023 | Tryg A/S | 97
Financial statements - Contents
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 2023. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.
Reference is made to the description in the Financial
Statements of “Risk and capital management” in Note 1 and in
“Accounting policies” sections “Significant accounting
estimates and assessments“ and “Insurance and reinsurance
contracts” in Note 31 .
Recoverability of the carrying amount of goodwill,
trademarks and customer relations
The Group's goodwill, trademarks and customer relations
total DKK 30,674 million, which constitutes 27% of the
statement of financial position total.
The principal risks are in relation to Management’s
assessment of the future timing and amount of projected
cash flows that are used to assess the recoverability of the
carrying amount of goodwill, trademark and customer
relations. There are specific risks related to the impact on
future earnings from intensified competition and receding
economic conditions in key markets. Bearing in mind the
generally long-lived nature of the assets, the significant
assumptions are Management’s view of expected premium
growth rates, claims ratio, reinsurance ratio, gross cost ratio,
discount rate and inflation.
We focused on this, as there is a high level of subjectivity
exercised by Management in estimating future cash flows and
the models used are complex.
The key assumptions and accounting treatment are described
in Note 12 “Intangible assets” in the Financial Statements and
in “Accounting policies” sections “Significant accounting
estimates and assessments“ and “Measurement of Goodwill,
Trademarks and Customer relations” in Note 31.
How our audit addressed the key audit matter
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 in the underlying
documentation.
We assessed and challenged the methods and models and
significant assumptions applied based on our experience and
industry knowledge with a view to ensure that these are in
line with regulatory and accounting requirements, including
IFRS 17. 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.
How our audit addressed the key audit matter
We performed risk assessment procedures to obtain an
understanding of IT systems, business processes and relevant
controls related to the assessment of the carrying amount of
goodwill, trademarks and customer relations. In respect of
controls, we assessed whether these were designed and
implemented effectively to address the risk of material
misstatement.
We considered the appropriateness of Management’s defined
CGUs within the business. We examined the methodology
used by Management to assess the carrying amount of
goodwill, trademarks and customer relations and the process
for identifying CGUs that require impairment testing to
determine compliance with IFRS.
We performed detailed testing for the assets where an
impairment review was required and evaluated whether there
were any indications of impairment related to the assets. For
those assets, we analysed the reasonableness of significant
assumptions in relation to the ongoing operation of the
assets.
We evaluated and challenged the assumptions used by
Management, including assessment of expected premium
growth rates, claims ratio, reinsurance ratio, gross cost ratio,
discount rate and inflation and tested the mathematical
accuracy of the relevant value-in-use models prepared by
Management.
Further, we assessed the appropriateness of disclosures,
including sensitivity analyses prepared for the significant
assumptions.
Measurement of provisions for
insurance contracts
The Group's provisions for insurance contracts total DKK
49,463 million, which constitutes 44% of the statement of
financial position total. Provisions for insurance contracts
primarily comprise premium provisions (liability for remaining
coverage, LRC) and claims provisions (liability for incurred
claims, LIC).
The IFRS 17 premium allocation approach (PAA) is applied for
measurement of groups of insurance contracts.
Premium provisions (LRC) are recognised at the premiums
received on initial recognition as the carrying amount.
Subsequently, the carrying amount of the LRC is increased by
any premiums received and decreased by the amount
recognised as insurance revenue for services provided.
Services are primarily provided based on passage of time. The
estimate covers direct and indirect costs relating to the
remaining service period. Insurance acquisition costs are
expensed as incurred.
Claims provisions (LIC) are measured as the total of the
expected fulfilment cash flows relating to insurance events
occurred at the statement of financial position date, which
comprise estimates of future cash flows, adjusted to reflect
the time value of money and the associated financial risks,
and a risk adjustment for non-financial risks. The estimate
includes direct and indirect claims handling costs that arise
from events occurring up to the statement of financial
position date.
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 insurance
contracts, as the accounting estimate is by nature complex
and influenced by subjectivity and thus to a large extent
associated with estimation uncertainty.
Annual report 2023 | Tryg A/S | 98
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 IFRS
Accounting Standards as adopted by the EU and
further requirements in the Danish Financial
Business Act, and for the preparation 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
misstatement, whether due to fraud or error.
In preparing the Financial Statements,
Management 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 Management 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
assurance 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. Reasonable 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
Denmark, 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,
intentional omissions, misrepresentations,
or the override of internal control.
• Obtain an understanding of internal control
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
Management’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 concern. 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
underlying transactions and events in a
manner that gives a true and fair view.
Financial statements - Contents
• Obtain sufficient appropriate audit evidence
regarding the financial information of the
entities 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 responsible for our audit opinion.
We communicate with those charged with
governance regarding, among other matters, the
planned scope and timing of the audit and
significant audit findings, including any
significant deficiencies in internal control that
we identify during our audit.
We also provide those charged with governance
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
independence 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.
Annual report 2023 | Tryg A/S | 99
Our responsibility is to obtain reasonable
assurance 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
prepared in XHTML format;
• Obtaining an understanding of the
company’s iXBRL tagging process and of
internal control over the tagging process;
• Evaluating the completeness of the iXBRL
tagging of the Consolidated Financial
Statements including notes;
• Evaluating the appropriateness of the
company’s use of iXBRL elements selected
from the ESEF taxonomy and the creation of
extension 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.
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 2023
with the filename TRYG-2023-12-31-en.zip is
prepared, in all material respects, in compliance
with the Commission Delegated Regulation (EU)
2019/815 on the European Single Electronic
Format (ESEF Regulation) which includes
requirements related to the preparation of the
annual report in XHTML format and iXBRL
tagging of the Consolidated Financial
Statements including notes.
Management is responsible for preparing an
annual report that complies with the ESEF
Regulation. This responsibility includes:
• The preparing of the annual report in XHTML
format;
• The selection and application of appropriate
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
Statements presented in human-readable
format; and
• For such internal control as Management
determines necessary to enable the
preparation of an annual report that is
compliant with the ESEF Regulation.
In our opinion, the annual report of Tryg A/S
for the financial year 1 January to 31 December
2023 with the file name TRYG-2023-12-31-
en.zip is prepared, in all material respects,
in compliance with the ESEF Regulation.
Hellerup, 25 January 2024
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR No 3377 1231
Per Rolf Larssen
State Authorised Public Accountant
mne24822
Stefan Vastrup
State Authorised Public Accountant
mne32126
Financial statements - Contents
Annual report 2023 | Tryg A/S | 100
Financial highlights
DKKm
Insurance revenue
Insurance service expenses
Net expense from reinsurance contracts
Insurance service result
Total Investment return a)
Other income and costs
Profit/loss before tax
Tax
Profit/loss on continuing business
Profit/loss on discontinued and divested business
Profit/loss for the period
Other comprehensive income
Other comprehensive income which cannot subsequently be reclassified as profit or loss
Other comprehensive income which can subsequently be reclassified as profit or loss
Other comprehensive income
Comprehensive income
Run-off gains/losses, net of reinsurance
Run-off gains/losses, Gross
Statement of financial position
Total provisions for insurance contracts
Assets from reinsurance contracts
Total equity
Total assets
Key ratios
Gross claims ratio
Net reinsurance ratio
Claims ratio, net of reinsurance
Gross expense ratio
Combined ratio
Operating ratio
Relative run-off gains/losses
Return on equity after tax (%)
Share price (DKK)
Net asset value per share (DKK)
Market price/Net asset value
Price/Earnings
2023
39,126
-32,219
-507
6,399
631
-2,001
5,029
-1,178
3,851
0
3,851
-1
-8
-9
3,842
1,099
1,735
49,463
3,060
40,351
112,940
68.0
1.4
69.4
13.4
82.8
82.8
2.7
9.4
146.90
65.35
2.2
24.2
2022
38,365
-32,156
-576
5,636
-441
-2,143
3,051
-804
2,247
0
2,247
-2
-1,828
-1,830
417
759
1,120
49,063
2,823
42,504
113,387
68.7
1.7
70.3
13.5
83.8
83.8
2.9
4.9
165.35
67.07
2.5
47.6
2021
25,369
-21,304
-727
3,338
1,369
-752
3,956
-795
3,161
-3
3,158
0
-36
-36
3,122
435
421
32,968
2,244
49,008
99,245
70.9
2.9
73.8
13.1
86.8
86.8
1.8
7.8
161.50
75.00
2.2
29.3
2020
23,442
-19,276
-480
3,687
241
-387
3,541
-768
2,773
0
2,773
-62
48
-14
2,759
1,194
1,179
31,081
2,052
12,264
59,647
68.9
2.1
70.9
13.3
84.3
84.3
4.9
22.5
192.10
40.64
4.7
20.9
Financial statements - Contents
2019
22,405
-18,375
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.
Note: Tryg’s acquisition of
the activities in Trygg-Hansa
and Codan Norway were
fully consolidated in the
Financial Statements from
the 1 April 2022.
Please see the income
overview in Management’s
review for further details.
-538
3,492
441
-305
3,628
-783
2,845
-2
2,843
-57
18
-39
2,804
1,332
1,312
30,884
1,959
12,085
57,549
68.6
2.4
71.0
13.4
84.4
84.4
5.4
24.6
197.50
40.50
4.9
21.0
Annual report 2023 | Tryg A/S | 101
Income statement
DKKm
Note
3
Insurance revenue
Insurance service expenses
Net expense from reinsurance contracts
2, 4
Insurance service result
Investment activities
Profit/loss from associates
Income from investment property
Interest income and dividends
Value adjustments
Interest expenses
Administration expenses in connection with investment activities
Investment return
Net finance income/expense from insurance contracts
Net finance income/expense from reinsurance contracts
Total Investment return
Other income
Other costs
Profit/loss before tax
Tax
Profit/loss for the period
6
7
6
8
9
10
10
11
25
Earnings per share basic and diluted
Financial statements - Contents
2023
2022
39,126
-32,219
-507
6,399
-75
35
1,624
1,674
-344
-176
2,738
-2,190
84
631
145
-2,147
5,029
-1,178
3,851
6.08
38,365
-32,156
-576
5,636
-19
48
918
-3,675
-154
-145
-3,028
2,621
-34
-441
150
-2,293
3,051
-804
2,247
3.47
Annual report 2023 | Tryg A/S | 102
Statement of comprehensive income
DKKm
Note
Profit/loss for the period
Other comprehensive income which cannot subsequently be reclassified as profit or loss
Actuarial gains/losses on defined-benefit pension plans
Tax on actuarial gains/losses on defined-benefit pension plans
Other comprehensive income which can subsequently be reclassified as profit or loss
Deferred tax related to receivable balance
Exchange rate adjustments of foreign entities
Exchange rate adjustments of foreign material associates
Hedging of currency risk in foreign entities
Tax on hedging of currency risk in foreign entities
Total other comprehensive income
Comprehensive income
Financial statements - Contents
2023
3,851
-2
0
-1
0
-105
0
130
-33
-8
-9
3,842
2022
2,247
-2
1
-2
-50
-2,217
52
496
-109
-1,828
-1,830
417
Annual report 2023 | Tryg A/S | 103
Statement of financial position
Financial statements - Contents
2023
2022
DKKm
2023
2022
Note Equity and liabilities
DKKm
Note Assets
12
Intangible assets
Operating Equipment
Group-occupied property
13
Total property, plant and equipment
14
15
Investment property
Equity investments in associates
Total investments in associates
Equity investments
Unit trust units
Bonds
Other lending
Derivative financial instruments
Reverse repurchase lending
Total other financial investment assets
31,987
191
935
1,125
498
54
54
3,939
8,192
57,065
0
2,038
59
71,293
32,716
178
693
871
1,017
222
222
4,647
8,330
55,800
75
1,763
194
70,810
16
Total investment assets
71,844
72,049
17
Assets from reinsurance contracts
19
18
Other receivables
Total receivables
Current tax assets
Cash at bank and in hand
Other
Total other assets
Interest and rent receivable
Other prepayments and accrued income
Total prepayments and accrued income
3,060
233
233
197
3,132
5
3,334
418
938
1,357
2,823
414
414
854
2,662
1
3,516
231
769
1,000
Total assets
112,940
113,387
20
1
21
22
23
24
16
19
26
1
27
28
29
30
31
32
Equity
Subordinated loan capital
Total provisions for insurance contracts
Pensions and similar obligations
Deferred tax liability
Other provisions
Total provisions
Amounts owed to credit institutions
Debt relating to repos
Derivative financial instruments
Current tax liabilities
Other debt
Total debt
Accruals and deferred income
40,351
3,031
49,463
77
3,367
223
3,666
2,028
4,645
1,779
389
7,551
16,391
38
42,504
4,154
49,063
85
3,542
94
3,721
1,305
4,287
2,398
83
5,820
13,893
52
Total equity and liabilities
112,940
113,387
Risk and capital management
Contractual obligations, collateral and contingent liabilities
Acquisition activities
Related parties
Financial highlights
Accounting policies
Transition to IFRS 9 & IFRS 17 at 1 January 2023
Annual report 2023 | Tryg A/S | 104
Statement of changes in equity
DKKm
Reserve for
exchange
rate
adjustment
Share
capital
Other
reserves
Retained
earnings
Proposed
dividend
Non-
controlling
interest
Share-
holders of
Tryg
Additional
Tier 1
capital Total equity
Equity at 31 December 2022
3,273
-1,789
4,724
35,247
1,047
1
42,504
0
42,504
Changes in impairment owing to
implementation of IFRS 9
Changes in taxes due owing to implementation
of IFRS 9
-2
1
-2
1
-2
1
Equity at 1 January 2023
3,273
-1,789
4,724
35,245
1,047
1
42,502
0
42,502
2023
Profit/loss for the period
Other comprehensive income
Total comprehensive income
Nullification of own shares
Dividend paid
Dividend, own shares
Interest paid on additional Tier 1 capital
Purchase and sale of own shares
Issue of additional Tier 1 capital
Share-based payment
Total changes in equity in 2023
Equity at 31 December 2023
-8
-8
-178
-178
0
-99
-99
3,174
-8
-1,796
-178
4,547
-763
-1
-765
99
135
-2,531
79
-2,982
32,263
4,734
4,734
-4,607
127
1,174
3,794
-9
3,785
0
-4,607
135
0
-2,531
0
79
-3,138
39,364
0
0
1
57
57
-57
987
987
987
3,851
-9
3,842
0
-4,607
135
-57
-2,531
987
79
-2,151
40,351
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
(634,834,980 shares).
The possible payment of dividend from
Tryg Forsikring A/S to Tryg A/S is
influenced by contingency fund
provisions of DKK 4,547m (DKK 4,724m
in 2022). 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.
Annual report 2023 | Tryg A/S | 105
Statement of changes in equity
Financial statements - Contents
DKKm
Equity at 31 December 2021
2022
Profit/loss for the period
Other comprehensive income
Total comprehensive income
Dividend paid
Dividend, own shares
Purchase and sale of own shares
Share-based payment
Total changes in equity in 2022
Equity at 31 December 2022
Reserve for
exchange
rate
adjustment
Other
reserves
Retained
earnings
Proposed
dividend
Non-
controlling
interest
Share-
holders of
Tryg
-11
1,735
43,309
700
1
49,008
Share
capital
3,273
-1,778
-1,778
0
2,989
2,989
0
3,273
-1,778
-1,789
2,989
4,724
-4,860
-52
-4,912
38
-3,253
65
-8,062
35,247
4,118
4,118
-3,771
347
1,047
2,247
-1,830
417
-3,771
38
-3,253
65
-6,504
42,504
0
0
1
Annual report 2023 | Tryg A/S | 106
Financial statements - Contents
Liabilities arising from financing activities
2023
Carrying amount at 1 January
Exchange rate adjustments
Amortisation
Cash flow*
Carrying amount at 31 December
*hereof DKK 987m part of equity
2022
Carrying amount at 1 January
Exchange rate adjustments
Amortisation
Cash flow
Carrying amount at 31 December
Subordinated
loans*
Amounts owed to
credit institutions
4,154
-94
3
-45
4,018
4,442
-290
2
0
4,154
1,305
1
0
722
2,028
835
0
0
471
1,305
Total
5,459
-93
3
677
6,045
5,277
-290
2
471
5,459
Cash flow statement
DKKm
2023
2022
DKKm
Cash flow from operating activities
Insurance revenue received
Insurance service expenses paid
Net expenses from reinsurance contracts
Cash flow from insurance activities
Interest income
Interest expenses
Dividend received
Taxes
Other income and costs
Total cash flow from operating activities
Cash flow from investment activities
Purchase/sale of equity investments and unit trust units
Purchase/sale of bonds (net)
Purchase/sale of operating equipment (net)
Acquisition/sale of associate
Sale of investment property
Hedging of currency risk
Total cash flow from investment activities
Cash flow from financing activities
Purchase and sale of own shares (net)
Subordinated loan capital
Dividend paid
Change in lease liabilities
Change in amounts owed to credit institutions
Total cash flow from financing activities
Change in cash and cash equivalents, net
Exchange rate adjustment of cash and cash equivalents, 1
January
Change in cash and cash equivalents, gross
Cash and cash equivalents at 1 January
Cash and cash equivalents at end of period
36,905
-29,562
-876
6,468
1,145
-344
149
-318
-1,034
6,067
883
-523
-69
165
502
130
1,087
-2,531
-45
-4,607
-211
722
-6,672
482
-12
470
2,662
3,132
33,433
-30,235
-1,126
2,071
567
-149
152
-1,039
-1,359
243
-222
1,810
-50
6,340
0
496
8,375
-3,253
0
-3,771
-194
471
-6,747
1,871
-11
1,860
802
2,662
Annual report 2023 | Tryg A/S | 107
Notes
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 management and the Supervisory Board.
In Tryg, we have adopted a three lines governance
model across the organisation. This is to ensure
robust governance and effective communication
between the business areas, key function and internal
audit as well as reporting to the Supervisory Board
and the Supervisory Board’s Risk Committee.
• 1st line is the Business Management
• 2nd line is Compliance-, Actuarial- and
Risk Management function
• 3rd line is Internal Audit and Internal
Audit function
The 1st line consists of the Business Management:
The business areas and group functions 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 requirements. 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 mitigation 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
facilitation and, monitoring 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.
What risk profile does Tryg want?
- Business model
- Strategy
- Policies
How is this supported?
Tactically
- Policies
- Capital plan
- Contingency plan
Operationally
- Frameworks
- Limitations
- Instructions
- Allocated capital
- Contingency plans
How is the actual risk profile measured?
Tactically
- Risk reports
- Internal controls
- Capital model
- Stress tests
Financial statements - Contents
Governance model
Tryg’s risk management environment
Annual report 2023 | Tryg A/S | 108
Notes
Furthermore, the function prepares specific
recommendations in relation to capital
management, reinsurance, investment risk
management and more.
Tryg’s capital base currently consist of Tier 1
and 2 capital, such as shareholders’ equity and
subordinated loans.
The functions in the second line must have an
overview of business processes and risks
across the organisation.
The 3rd line consists of Internal Audit and
Internal Audit function: The third line must
ensure an independent and objective audit of
the organisation’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
Supervisory 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. .
Capital management
Tryg’s capital management is based on the key
business 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)
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 October 2023.
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.
Financial statements - Contents
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.
• Tryg has also taken out reinsurance on a per
risk basis for large claims occurring in
business lines with very high sums insured.
Retention for large claims is DKK 200m,
gradually dropping to DKK 135m.
Insurance risk
Insurance risk comprises two main types of
risks: Underwriting risk and reserving risk.
• Tryg has a reinsurance cover of other lines
with retention of DKK 100m for the first
claim and gradually dropping to DKK 46m.
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 Supervisory
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 1 January 2024
are:
• In case of major events involving damage to
buildings 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.
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
interest rate and inflation risk. Interest rate risk
is hedged by means of Tryg’s match portfolio
which is aligned to the discounted claims
reserves. In order to manage the inflation risk of
claims reserves, Tryg has bought zero coupon
inflation swaps. Tryg determines the claims
reserves via statistical methods as well as
assessments of individual claims.
Tryg’s risk activities are implemented via
continuous risk management processes, where
• Retention for such events is DKK 300m.
Annual report 2023 | Tryg A/S | 109
Notes
At the end of 2023, Tryg’s claims reserves net of
reinsurance totalled DKK 40,705m with an
average discounted duration of approximately
5.4 years (average duration undiscounted 7.9
years).
in other currencies than Danish kroner will be
exposed to currency risk. This risk is to a large
degree hedged on an ongoing basis using
currency swaps.
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
discounted provisions for insurance contracts
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 policy. The purpose of the free
portfolio is to achieve the highest possible
return relative to risk. At the end of 2023,
investment properties accounted for 1.7%
(including property funds) and Tryg’s equity
portfolio accounted for 5.5% of the total
investment assets.
Tryg operates its insurance business in other
currencies than Danish kroner, Tryg is therefore
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 tangible equity held
In addition to the above-mentioned risks, Tryg
is exposed 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 security and similar factors.
Tryg focuses on an adequate control
environment for its operations to mitigate
operational risk. In practice, this work is
organised 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.
Sensitivity analysis
DKKm
Insurance risk
Effect of 1% change in:
Combined ratio (1 percentage point)
Large single loss
Catastrophe event
Reserving risk
1% change in inflation on person-related lines of business
10% error in the assessment of long-tailed lines of business
(workers' compensation, motor liability, liability, accident)
Investment risk
Interest rate market
Effect of 1 % increase in interest curve:
NOK:
Impact of interest-bearing securities
Higher discounting of claims provisions
Net effect of interest rate rise
SEK:
Impact of interest-bearing securities
Higher discounting of claims provisions
Net effect of interest rate rise
DKK, EUR and Other:
Impact of interest-bearing securities
Higher discounting of claims provisions
Net effect of interest rate rise
Equity market
15 % decline in equity market
Impact of derivatives and related thereto
Real estate market
15 % decline in real estate markets
Currrency market
Equity:
15 % decline in exposed currency (exclusive of EUR) relative to DKK
Impact of derivatives
Net impact of exchange rate decline
Insurance service result per year:
Impact of 15% change in NOK and SEK exchange rates relative to DKK
Financial statements - Contents
2023
2022
+/- 391
+/- 339
-150
-300
-150
-200
+/- 1,325
+/- 1,240
+/- 2,853
+/- 2,780
-201
136
-66
-990
1,301
312
-735
620
-115
-357
31
-252
173
-79
-936
1,164
228
-723
596
-128
-505
32
-575
-694
-2,357
1,610
-747
-3,177
2,904
-273
+/- 476
+/- 524
Annual report 2023 | Tryg A/S | 110
Notes
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 Supervisory
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.
Financial statements - Contents
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 controls
assess and report whether Tryg’s methods and
procedures for complying with the legislation
are reliable 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.
Emerging risk
Emerging risk covers both new risks and
already known risks, with changing
characteristics. The management 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.
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.
Annual report 2023 | Tryg A/S | 111
Notes
Liability for incurred claims (LIC)
Gross (DKKm)
Estimated accumulated claims
End of year
1 year later
2 year later
3 year later
4 year later
5 year later
6 year later
7 year later
8 year later
9 year later
10 year later
Cumulative payments to date
Provisions before discounting, end of year
Discounting
Reserves from 2012 and prior years
Gross provisions for claims, end of year
Debt related to Liability for incurred claims (LIC) and other
insurance liabilities
Financial statements - Contents
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Total
13,110
13,380
13,043
12,885
12,868
12,735
12,593
12,462
12,427
12,729
14,011
14,011
-11,870
2,141
-371
11,961
12,279
12,113
12,031
11,929
11,850
11,599
11,533
11,827
11,769
11,769
-10,987
783
-160
13,947
13,882
13,847
13,768
13,798
13,780
13,745
14,155
14,081
12,137
11,985
11,911
12,041
12,015
11,984
12,452
12,520
11,999
12,079
12,286
12,192
12,186
12,837
12,724
12,936
13,640
13,610
13,622
14,422
14,300
15,403
15,432
15,397
16,341
16,175
16,184
15,995
16,929
17,321
16,640
20,317
18,651
25,493
24,784
27,865
14,081
-13,112
969
-168
12,520
-11,334
1,186
-212
12,724
-11,515
1,210
-227
14,300
-12,722
1,578
-273
16,175
-13,953
2,221
-356
17,321
-13,989
3,332
-470
18,651
-14,978
3,672
-496
24,784
-19,203
5,582
-550
27,865
184,201
-14,174
-147,836
13,691
-841
36,365
-4,124
8,943
41,185
2,544
The amounts in foreign currency in the table are translated to Danish kroner using the exchange rate 31 December 2023 to prevent the impact of exchange rate fluctuations.
Annual report 2023 | Tryg A/S | 112
Notes
Asset for incurred claims (AIC)
Ceded business (DKKm)
Estimated accumulated claims
End of year
1 year later
2 year later
3 year later
4 year later
5 year later
6 year later
7 year later
8 year later
9 year later
10 year later
Cumulative payments to date
Provisions before discounting, end of year
Discounting
Reserves from 2012 and prior years
Provisions for claims, end of year
Receivables related to Asset for incurred claims (AIC)
Financial statements - Contents
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Total
528
1,452
1,237
1,230
1,247
1,147
1,194
1,154
1,152
1,280
1,401
1,401
-1,161
240
-10
249
281
278
273
280
276
277
277
279
277
277
-266
11
0
2,032
1,839
1,870
1,851
1,861
1,874
1,866
1,862
1,858
1,858
-1,849
9
0
189
235
230
224
220
220
221
221
221
-216
5
0
267
364
358
368
339
332
261
261
-327
-67
4
553
605
630
640
616
584
584
-598
-14
1
342
417
437
428
367
687
763
683
628
517
596
479
1,255
816
1,953
367
-351
16
-1
628
-569
60
-5
479
-380
100
-4
816
-453
363
-14
1,953
-189
1,764
-50
8,844
-6,358
2,486
-79
206
2,614
410
The amounts in foreign currency in the table are translated to Danish kroner using the exchange rate at 31 December 2023 to prevent the impact of exchange rate fluations.
Annual report 2023 | Tryg A/S | 113
Notes
LIC and AIC
Net of reinsurance (DKKm)
Estimated accumulated claims
End of year
1 year later
2 year later
3 year later
4 year later
5 year later
6 year later
7 year later
8 year later
9 year later
10 year later
Cumulative payments to date
Provisions before discounting, end of year
Discounting
Reserves from 2012 and prior years
Provisions for claims, net of reinsurance, end of the year
Financial statements - Contents
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Total
12,582
11,928
11,807
11,655
11,622
11,587
11,399
11,308
11,276
11,449
12,610
12,610
-10,709
1,901
-361
11,712
11,998
11,835
11,758
11,649
11,575
11,322
11,256
11,548
11,492
11,492
-10,720
772
-159
11,915
12,044
11,977
11,917
11,937
11,906
11,879
12,293
12,223
11,948
11,750
11,682
11,817
11,794
11,764
12,230
12,300
11,732
11,715
11,928
11,825
11,847
12,504
12,464
12,383
13,035
12,980
12,981
13,806
13,716
15,061
15,016
14,959
15,914
15,808
15,497
15,231
16,246
16,693
16,123
19,721
18,171
24,238
23,969
25,912
12,223
-11,262
961
-167
12,300
-11,119
1,181
-212
12,464
-11,187
1,276
-232
13,716
-12,124
1,592
-275
15,808
-13,603
2,205
-355
16,693
-13,421
3,273
-465
18,171
-14,599
3,573
-491
23,969
-18,750
5,219
-536
25,912
175,357
-13,986
-141,478
11,927
-791
33,879
-4,045
8,737
38,571
The amounts in foreign currency in the table are translated to Danish kroner using the exchange rate at 31 December 2023 to prevent the impact of exchange rate fluations.
Eiopa yield curves used on all contracts measured under PAA
2023
2022
Currency
DKK
SEK
NOK
1 year
3.34 %
3.04 %
3.99 %
5 years
10 years
20 years
30 years
2.31 %
2.25 %
3.31 %
2.38 %
2.25 %
3.21 %
2.41 %
2.76 %
3.26 %
2.55 %
2.99 %
3.30 %
1 year
3.16 %
3.46 %
3.46 %
5 years
10 years
20 years
30 years
3.12 %
3.16 %
3.15 %
3.09 %
3.02 %
3.19 %
2.75 %
3.18 %
3.28 %
2.72 %
3.27 %
3.32 %
Annual report 2023 | Tryg A/S | 114
Notes
Financial statements - Contents
DKKm
0-1 year
1-2 years
2-3 years
3-4 years
4-5 years
>5 years
Total
Expected cash flow, not discounted
2023
Liabilities for incurred claims
Assets for incurred claims
2022
Liabilities for incurred claims
Assets for incurred claims
17,089
-2,122
14,968
16,539
-1,817
14,721
6,386
-687
5,698
6,397
-449
5,948
3,850
-108
3,742
4,239
-327
3,912
2,909
-75
2,834
3,048
-77
2,970
2,271
-24
2,247
2,378
-33
2,345
18,621
-112
18,509
18,511
-81
18,431
Concentration of underwriting risk
Reinsurance is ceded across all geographic regions in which Tryg operates, Tryg does not have a significant concentration of credit risk with any single reinsurer.
The geographical concentration of the Group´s liabilities for incurred claims is noted below. The disclosure is based on the countries where the business is written.
DKKm
DKKm
Income protection
Motor
Property
Liability
Other
Total
Income protection
Motor
Property
Liability
Other
Total
Denmark
8,608
1,717
2,514
1,553
2,091
16,483
Denmark
8,780
1,595
2,531
1,413
2,238
16,556
Sweden
8,595
7,340
2,750
810
359
19,853
Sweden
7,420
6,966
1,848
1,092
1,011
18,338
2023
Norway
Other
3,193
755
1,836
693
713
7,189
0
0
0
0
203
203
2022
Norway
Other
3,812
1,035
1,531
714
753
7,845
0
0
0
0
244
244
51,127
-3,127
47,999
51,111
-2,783
48,328
Total
20,395
9,812
7,100
3,056
3,365
43,728
Total
20,012
9,596
5,910
3,218
4,247
42,983
Annual report 2023 | Tryg A/S | 115
Notes
DKKm
Investment risk
2023
2022
DKKm
Credit risk
Bond portfolio by ratings
The notes below are based on Tryg's investment portfolio without the external customers share
Bonds portfolio including interest derivatives
Duration 1 year or less
Duration 1 - 5 years
Duration 5 - 10 years
Duration more than 10 years
Total
Duration
24,674
17,904
12,532
1,909
57,019
3.1
20,494
20,459
10,350
4,513
55,816
3.8
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.
AAA
AA
A
BBB
BB
B or lower
Total
Reinsurance balances
AAA to A
Not rated
Total
Financial statements - Contents
2023
DKKm
54,887
1,710
1,055
1,007
550
2,046
%
89.6
2.8
1.7
1.6
0.9
3.3
2022
DKKm
53,343
2,502
725
1,016
606
1,098
%
90.0
4.2
1.2
1.7
1.0
1.9
61,256
100.0
59,291
100.0
2,922
102
3,024
96.6 %
3.4 %
100.0 %
2,515
167
2,682
93.8 %
6.2 %
100.0 %
Shares
Nordic countries
European countries ex. Nordic countries
North America
Others
Total
179
204
1,339
624
2,345
193
240
1,752
1,642
3,827
At 31 December 2023, the maximum exposure to credit risk from insurance contracts is DKK 1,800m ( DKK 1,621m in 2022),
which primarily relates to premiums receivable for services that the Group has already provided. In 2023 management
performed impairment test of the receivables from Insurance contracts. The total write-down and reversed write-down for 2023
amount to DKK 3m (DKK 15m) totalling write-down at 31 December 2023 of DKK 152m (DKK 153m). The reversed write-down
in 2023 amount to DKK 41m (DKK 34m in 2022). The maximum exposure to credit risk from reinsurance contracts is DKK 410m
(DKK 498m in 2022).
Share exposure includes exposure from share derivatives of DKK -206m (DKK -214m in 2022) and excluding shares
related to property exposure. Unlisted equity investments are based on an estimated market price.
Exposure to exchange rate risk
DKKm
USD
EURa)
GBP
NOK
SEK
Other
Total
2023
Assets and
debt
6,610
2,094
437
2,716
3,213
994
2022
Assets and
debt
7,271
2,257
292
5,033
4,941
1,113
Hedge
-6,462
115
-410
-2,646
-3,197
-777
Exposure
148
2,209
27
70
15
217
2,686
Hedge
-7,106
-973
-274
-5,066
-4,862
-854
Exposure
166
1,284
18
33
80
259
1,840
a) Due to correlation between DKK and EUR the exposure limit is higher than all other currencies.
Liquidity risk
Maturity of the Group’s financial obligations including interest
2023
0-1 year
1-5 years
> 5 years
Subordinated loan capital
Amounts owed to credit institutions
Debt relating to unsettled funds transactions
and repos
Other debt
Total
2022
169
2,028
4,645
7,551
14,392
676
4,721
0
0
0
0
0
0
676
4,721
0-1 year
1-5 years
> 5 years
Subordinated loan capital
Amounts owed to credit institutions
Debt relating to unsettled funds transactions
and repos
Other debt
Total
152
1,305
4,287
5,820
11,564
607
0
0
0
607
5,250
0
0
0
5,250
Interest on loans for a perpetual term has been disclosed for the first fifteen years.
Total
5,566
2,028
4,645
7,551
19,789
Total
6,009
1,305
4,287
5,820
17,421
Annual report 2023 | Tryg A/S | 116
Notes
Subordinated loan capital
DKKm
2023a)
2022
2023
2022
2023
2022
Bond loan NOK 800m
Bond loan NOK 1,400m
Bond loan SEK 1,000m
Amortised cost value of the loan recognised in
statement of financial position
The fair value of the loan at the statement of
financial position date
The fair value of the loan at the statement of
financial position date is based on a price of
Total capital losses and costs at the statement of
the financial position date
Interest expenses for the year
Effective interest rate
0
0
0
0
8
6.8 %
Loan terms:
Lender
Principal
Issue price
Issue date
Maturity year
Loan may be called by lender as from
566
567
100
0
32
5.7 %
Listed bonds
NOK 800m
100
March 2013
Perpetual
2023
927
967
104
1
61
6.6 %
989
990
100
1
46
4.7 %
669
660
98
2
39
666
638
95
3
21
5.8 %
3.2 %
Listed bonds
NOK 1,400m
100
November 2015
2045
2025
Listed bonds
SEK 1,000m
100
February 2021
Perpetual
2026
Repayment profile
Interest structure
3.75 % above NIBOR 3M (until 2023)
2.75 % above NIBOR 3M (until 2025)
2.4 % above STIBOR 3M
Interest-only
Interest-only
Interest-only
4.75 % above NIBOR 3M (from 2023) 3.75 % above NIBOR 3M (from 2025)
Financial statements - Contents
The share of subordinated loan capital included in
own funds totals DKK 3,052m (DKK 4,162m in
2022 )
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
creditors 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.
a) Cancelled in 2023
Annual report 2023 | Tryg A/S | 117
Notes
Subordinated loan capital (continued)
DKKm
2023
2022
2023
2022
2023a)
2022
Bond loan NOK 850m
Bond loan SEK 1,300m
Bond loan SEK 700m
Amortised cost value of the loan recognised in statement of
financial position
The fair value of the loan at the statement of financial
position date
The fair value of the loan at the statement of financial
position date is based on a price of
Total capital losses and costs at the statement of the
financial position date
Interest expenses for the year
Effective interest rate
562
564
100
1
29
600
563
94
1
19
872
854
98
2
40
867
830
95
2
18
5.1 %
3.1 %
4.6 %
2.0 %
0
0
0
0
12
5.8 %
Loan terms:
Lender
Principal
Issue price
Issue date
Maturity year
Loan may be called by lender as from
Repayment profile
Interest structure
Listed bonds
NOK 850m
100
May 2021
2051
2027
Listed bonds
SEK 1,300m
100
May 2021
2051
2026
1.25 % above NIBOR 3M (until 2031) 1.15 % above STIBOR 3M (until 2031)
2.5 % above STIBOR 3M
Interest-only
Interest-only
Interest-only
2.25 % above NIBOR 3M (from 2031) 2.15% above STIBOR 3M (from 2031)
466
463
99
2
16
3.4 %
Listed bonds
SEK 700m
100
April 2018
Perpetual
2023
Financial statements - Contents
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
creditors 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.
a) Cancelled in 2023
Annual report 2023 | Tryg A/S | 118
Notes
Subordinated loan capital (continued)
DKKm
Amortised cost value of the loan recognised in statement of financial position
Bond loan NOK 800m
Bond loan NOK 1,400m
Bond loan NOK 850m
Bond loan SEK 1,300m
Bond loan SEK 700m
Bond loan SEK 1,000m
Total amortised cost value of the loan recognised in statement of financial position
Financial statements - Contents
2023
2022
0
927
562
872
0
669
3,031
566
989
600
867
466
666
4,154
Annual report 2023 | Tryg A/S | 119
Notes
Subordinated loan capital recognised as equity for accounting purposes
DKKm
Carrying amount of the loan recognised in statement of financial position
The fair value of the loan at the statement of financial position date
The fair value of the loan at the statement of financial position date is based on a price of
Total capital losses and costs at the statement of the financial position date
Interest expenses for the year
Effective interest rate
Loan terms:
Lender
Principal
Issue price
Issue date
Maturity year
Loan may be called by lender as from
Repayment profile
Interest structure
Financial statements - Contents
a) 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 thereof) which would
otherwise be payable on any interest payment date.
Will become payable only in the event of Tryg
Forsikring A/S’s bankruptcy.
Bond loan SEK
900ma)
Bond loan NOK
600ma)
2023
2023
596
604
100
0
33
7.1 %
391
401
101
0
23
7.5 %
Listed bonds
SEK 900m
100
March 2023
Perpetual
2028
Listed bonds
NOK 600m
100
March 2023
Perpetual
2028
Interest-only
Interest-only
3.5 % above
STIBOR 3M
3.45 % above
NiBOR 3M
Annual report 2023 | Tryg A/S | 120
Notes
DKKm
2
Operating segments
2023
Insurance revenue
Gross claims
Insurance operating costs
Insurance service expenses
Net expense from reinsurance contracts
Insurance service result
Investment return
Other income and costs
Profit/loss before tax
Tax
Profit/loss for the period
Run-off gains/losses, net of reinsurance
Intangible assets
Equity investments in associates
Assets from reinsurance contracts
Other assets
Total assets
Private
Commercial
Corporate
Othera)
Group
24,455
-17,305
-3,074
-20,379
-276
3,800
268
28,089
239
9,178
-5,517
-1,454
-6,972
-197
2,010
315
2,584
946
3,502
-2,448
-430
-2,878
-34
590
517
0
1,575
1,990
-1,990
0
-1,990
0
0
0
1,314
300
Total provision for insurance contracts
29,595
11,999
8,898
-1,029
Other liabilities
Total liabilities
Non-current assets by country
Denmark
Norway
Sweden
Other
Total
2023
6,806
1,642
24,657
8
33,112
Financial statements - Contents
Description of segments
Please refer to the accounting policies for a
description of operating segments.
a) The other segment in the profit/loss includes
insurance revenue and gross claims arising from the
Trygg-Hansa and Codan Norway acquisition. Please
refer to note 4 and Accounting policies for further
description. The assets from reinsurance contracts
and provisions for insurance contracts allocated to
the segment pertain to debts and receivables from
insurance contracts.
Other assets and liabilities are managed at Group
level and are not allocated to the individual
segments but are included under 'Other'.
Annual report 2023 | Tryg A/S | 121
39,126
-27,261
-4,959
-32,219
-507
6,399
631
-2,001
5,029
-1,178
3,851
1,099
31,987
54
3,060
77,839
112,940
49,463
23,126
72,589
2022
6,817
1,685
25,075
10
33,587
Notes
Financial statements - Contents
DKKm
Private
Commercial
Corporate
Othera)
Group
2
Operating segments (continued)
2022
Insurance revenue
Gross claims
Insurance operating costs
Insurance service expenses
Net expense from reinsurance contracts
Insurance service result
Investment return
Other income and costs
Profit/loss before tax
Tax
Profit/loss for the period
Run-off gains/losses, net of reinsurance
Intangible assets
Equity investments in associates
Assets from reinsurance contracts
Other assets
Total assets
22,776
-15,625
-2,913
-18,538
-332
3,906
357
28,793
164
8,408
-5,551
-1,337
-6,889
-66
1,453
264
2,809
967
3,631
-2,724
-451
-3,175
-177
278
137
0
1,320
3,551
-3,551
0
-3,551
0
0
0
1,114
372
Total provision for insurance contracts
28,678
12,682
8,428
-724
Other liabilities
Total liabilities
38,365
-27,451
-4,702
-32,156
-576
5,636
-441
-2,143
3,051
-804
2,247
759
32,716
222
2,823
77,626
113,387
49,063
21,820
70,883
Annual report 2023 | Tryg A/S | 122
Notes
Financial statements - Contents
DKKm
2023
2022
DKKm
2023
2022
2
Insurance service result by geography
2
Insurance service result by geography (continued)
Danish general insurance
Insurance revenue
Insurance service results
Run-off gains/losses, net of reinsurance
Key ratios
Gross claims ratio
Net reinsurance ratio
Claims ratio, net of reinsurance
Gross expense ratio
Combined ratio
Run-off, net of reinsurance (%)
Swedish general insurance
17,396
16,430
SEK/DKK, average rate for the period
3,200
631
2,110
109
Insurance revenue
Insurance service results
Run-off gains/losses, net of reinsurance
66.5
1.8
68.3
13.3
81.6
-3.6
72.5
1.3
73.8
13.3
87.2
-0.7
Key ratios
Gross claims ratio
Net reinsurance ratio
Claims ratio, net of reinsurance
Gross expense ratio
Combined ratio
Number of full-time employees, end of period
3,423
3,345
Run-off, net of reinsurance (%)
64.88
11,512
2,511
266
67.2
-2.3
64.9
13.3
78.2
-2.3
70.33
9,730
2,219
298
62.8
0.6
63.4
13.8
77.2
-3.1
Norwegian general insurance
NOK/DKK, average rate for the period
Insurance revenue
Insurance service results
Run-off gains/losses, net of reinsurance
Key ratios
Gross claims ratio
Net reinsurance ratio
Claims ratio, net of reinsurance
Gross expense ratio
Combined ratio
Run-off, net of reinsurance (%)
Number of full-time employees, end of period
1,973
1,781
65.37
7,962
662
188
73.8
4.6
78.4
13.3
91.7
-2.4
73.95
8,445
1,266
324
67.6
4.1
71.7
13.3
85.0
-3.8
Other European countries a)
Insurance revenue
Insurance service results
Run-off gains/losses, net of reinsurance
Number of full-time employees, end of period
Other b)
Insurance revenue
Insurance service expenses
Insurance service result
265
27
14
59
209
41
27
49
1,990
-1,990
0
3,551
-3,551
0
Number of full-time employees, end of period
1,350
1,344
Annual report 2023 | Tryg A/S | 123
Notes
DKKm
2023
2022
2
Insurance service result by geography (continued)
Tryg (total)
Insurance revenue
Insurance service result
Investment return
Other income and costs
Profit/loss before tax
Run-off gains/losses, net of reinsurance
Key ratios
Gross claims ratio
Net reinsurance ratio
Claims ratio, net of reinsurance
Gross expense ratio
Combined ratio
Run-off, net of reinsurance (%)
39,126
38,365
6,399
631
-2,001
5,029
1,099
68.0
1.4
69.4
13.4
82.8
-3.0
5,636
-441
-2,143
3,051
759
68.7
1.7
70.3
13.5
83.8
-2.2
Number of full-time employees, end of period
6,805
6,518
a) Comprises credit & surety insurance (Tryg Garanti) in European countries besides Denmark, Norway and Sweden.
b) Reclassification relating to claims provisions from the Trygg-Hansa and Codan Norway acquisition. Please refer to note 4 and
Accounting policies for further description.
Financial statements - Contents
Annual report 2023 | Tryg A/S | 124
Notes
Financial statements - Contents
2
Insurance service result, net of reinsurance, by line of business
DKKm
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
Accident and health
Health care
Worker's compensation c)
Motor TPL
Motor comprehensive
insurance
Marine, aviation and cargo
insurance
Gross premiums written
Insurance revenue
Gross claims
Insurance operating costs
Net expense from reinsurance
Insurance service result
Gross claims ratio
Combined ratio
Claims frequency a)
Average claims DKK b)
Total claims
6,223
6,171
-3,499
-787
-13
1,872
56.7
69.7
5,454
5,337
-3,167
-650
-11
1,509
59.3
71.7
905
880
-561
-109
0
209
63.8
76.2
773
755
-563
-91
0
102
74.5
86.5
1,034
1,040
5
-144
-9
892
-0.5
14.2
1,065
1,056
-882
-131
-5
38
83.5
96.4
2,910
2,885
-1,775
-405
-30
676
61.5
76.6
2,911
2,903
-1,334
-459
-29
1,173
45.9
62.7
8,611
8,699
-6,601
-1,237
-88
772
75.9
91.1
8,375
8,257
-6,052
-1,014
-69
1,032
73.3
86.4
199
252
-217
-30
31
35
86.3
86.1
281
276
-138
-45
-30
62
50.2
77.3
6.8 %
6.9 %
12,517
252,439
11,549
274,306
37.0 %
5,058
33.0 %
5,703
132,998
109,839
13.7 %
15.9 %
5.9 %
6.7 %
66,231
9,509
77,412
11,618
13,033
148,916
10,597
158,615
32.0 %
8,025
27.4 %
7,861
814,423
709,220
27.4 %
27.0 %
33,525
6,411
26,354
6,259
DKKm
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
Fire and contents (Private)
Fire and contents
(Commercial)
Change of ownership
Liability insurance
Credit and guarantee
insurance
Tourist assistance
insurance
Gross premiums written
Insurance revenue
Gross claims
Insurance operating costs
Net expense from reinsurance
Insurance service result
Gross claims ratio
Combined ratio
Claims frequency a)
Average claims DKK b)
Total claims
8,116
8,195
-6,192
-1,081
-221
701
75.6
91.4
7,901
7,915
-5,555
-1,121
-227
1,012
70.2
87.2
4,501
4,438
-3,545
-605
15
303
79.9
93.2
3,578
3,936
-2,728
-605
-261
342
69.3
91.3
8.0 %
11,060
569,227
10.4 %
10,130
568,677
10.7 %
69,622
50,804
8.0 %
56,679
41,024
3
7
-1
-3
0
3
14.9
59.3
2.8 %
21,979
202
0
12
-2
-5
0
5
14.9
58.6
2.9 %
24,406
310
1,804
1,762
-778
-260
-70
653
44.2
62.9
1,677
1,717
-964
-266
-6
482
56.1
71.9
807
809
-429
-121
-109
150
53.0
81.4
739
738
-622
-111
125
131
84.2
82.3
1,123
1,140
-947
-127
-1
65
83.1
94.3
1,067
1,067
-1,073
-127
-59
-193
100.6
118.0
5.7 %
65,556
15,216
6.4 %
65,902
15,790
0.3 %
0.3 %
931,454
1,187,668
23.5 %
5,611
22.5 %
6,453
834
709
179,864
163,672
a) The claims frequency is calculated as the number of claims insured 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
c) Under IFRS 17, the inflation swap from Danish Worker's compensation is moved out of Insurance service result and into the investment result. This explains a rise in Gross claims compared with the former reported figure from 2022.
Annual report 2023 | Tryg A/S | 125
Notes
2
Insurance service result, net of reinsurance, by line of business (continued)
Financial statements - Contents
DKKm
2023
2022
2023
2022
2023
2022
2023
2022
Other insurance d)
Total exclusive of Group
Life f)
Group Life, one-year
policies e)
Total f)
Gross premiums written
Insurance revenue
Gross claims
Insurance operating costs
Net expense from reinsurance contracts
Insurance service result
Gross claims ratio
Combined ratio
0
1,990
-1,990
0
0
0
0
3,551
36,236
38,267
-3,551
-26,530
0
0
0
-4,911
-495
6,330
33,821
37,522
-26,629
-4,625
-573
5,695
890
859
-730
-48
-11
69
837
844
-826
-76
-2
-61
37,126
39,126
-27,261
-4,959
-507
6,399
34,658
38,365
-27,455
-4,701
-576
5,636
67.6 %
82.6 %
67.9 %
83.2 %
85.0 %
91.9 %
97.9 %
107.2 %
68.0 %
82.8 %
68.7 %
83.8 %
d) Please refer to note 4 regarding other insurance
e) Group Life one-year policies related to Norwegian
Group Life and Alka Group Life
f) Key ratios are calculated based on the figures used
in “Management’s Review”. Excluded are amounts
under "Other insurance".
Annual report 2023 | Tryg A/S | 126
Notes
Financial statements - Contents
DKKm
2023
2022
DKKm 2022
Review Reclassification a)
Insurance service
result in
Management´s
3
Insurance revenue
Direct insurance
Indirect insurance
Insurance revenue total
Direct insurance, by location of risk
Denmark
Other EU countriesb)
Other countriesa)
a) Primarily Norway
b) Primarily Sweden
Insurance service
result in
Management´s
DKKm 2023
Review Reclassification a)
4
Insurance service result
Insurance revenue
Gross claims
Insurance operating costs
Total Insurance service expenses
Expenses from reinsurance contracts held
Income from reinsurance contracts held
Net expense from reinsurance contracts
Insurance service result
37,135
-25,270
-4,959
-30,229
-1,729
1,222
-507
6,399
1,990
-1,990
0
-1,990
0
0
0
0
Income
statement
39,126
-27,261
-4,959
-32,219
-1,729
1,222
-507
6,399
39,045
38,294
4
Insurance service result (Continued)
Insurance revenue
81
72
Gross claims
39,126
38,365
Insurance operating costs
17,347
13,591
8,107
16,381
13,464
8,449
39,045
38,294
Total Insurance service expenses
Expenses from reinsurance contracts held
Income from reinsurance contracts held
Net expense from reinsurance contracts
Insurance service result
34,814
-23,904
-4,701
-28,605
-1,447
871
-576
5,636
3,551
-3,551
0
-3,551
0
0
0
0
Income
statement
38,365
-27,455
-4,701
-32,156
-1,447
871
-576
5,636
a) IFRS 17 requires that claims provisions acquired shall be presented as Insurance revenue. The reclassification refers to
Insurance revenue and Gross claims relating to Claims provisions from the Trygg-Hansa and Codan Norway acquisition. The
presentation would have resulted in an artificial high insurance revenue and Gross claims with no impact on the Insurance
service result. Therefore Tryg presents Insurance revenue and Gross claims in "Management´s review" without the above
reclassification as it gives a fair view of Insurance revenue, Gross claims and Insurance service result as well as key ratios. This
explains the difference between "Management’s review" and the Financial statements. Key ratios are calculated on the basis of
the figures used in "Management's Review".
Annual report 2023 | Tryg A/S | 127
Notes
Financial statements - Contents
DKKm
2023
2022
DKKm
2023
2022
5
Insurance service expenses
Insurance operating costs
Commissions regarding direct insurance contracts
Other acquisition costs
Total acquisition costs
Administration expenses
Insurance operating costs, gross
Fees to the auditors recognized in insurance service expenses
PwC appointed by the annual general meeting
The fee is divided into:
Statutory audit
Other audit assignments
Tax advice
Other services
-410
-2,957
-3,367
-1,592
-4,959
-11
-11
-7
-1
-1
-2
-11
-421
-3,276
-3,697
-1,004
-4,701
-8
-8
-6
0
0
-2
-8
Fees for non-audit services provided by PricewaterhouseCoopers to the Group amount to DKK 3m (DKK 2m in 2022)
and consists of general advice related to tax, accounting and ESG matters.
5
Insurance service expenses (Continued)
Insurance operating costs, gross, classified by type
Commissions
Staff expenses
Other staff expenses
Office expenses, fees and headquarter expenses
IT operating and maintenance costs, software expenses
Depreciation, amortisation and impairment losses and
Other income
Please refer to note 13 and note 26 for leases recognised according to IFRS 16.
Total staff expenses recognised in income statement
Salaries and wages
Commision
Recognised expenses related to conditional shares and
Pension plans
Other social security costs
Payroll tax
-410
-2,799
-200
-1,212
-487
-132
281
-4,959
-421
-2,629
-195
-1,333
-312
-118
305
-4,701
-4,039
-3,866
-2
-79
-663
-9
-906
-5
-64
-530
-8
-828
-5,698
-5,301
Please refer to note 29 for specification of Remuneration for the Supervisory Board and Executive Board.
Average number of full-time employees during the year
(continuing business)
6,784
5,944
Annual report 2023 | Tryg A/S | 128
Notes
DKKm
5
Share-based payment
Matching shares
2023
Matching shares allocated in
2023
Allocated in 2011 - 2022
Category changes and addition
Cancelled
Exercised
Total 31.12.23
2022
Matching shares allocated in
2022
Allocated in 2011-2021
Category changes and addition
Cancelled
Exercised
Total 31.12.22
Total Numbers
Fair Value
Executive
Board
Risk-takers
Other
Total
Average value
per matching
share at grant
date DKK
Total value at
time of
allocation
DKKm
Value per
matching
share at 31
December
DKK
Total fair value
at 31
December
DKKm
0
1,670
57,362
59,032
295,068
-32,167
-14,328
108,118
-6,585
-7,476
341,802
38,752
-49,958
744,989
0
-71,762
-248,573
-79,860
-205,400
-533,833
0
14,197
125,196
139,393
163
138
138
138
138
138
10
103
0
-10
-74
19
147
147
147
147
147
147
9
109
0
-11
-78
20
Executive
Board
Risk-takers
Other
Total
Average value
per matching
share at grant
date DKK
Total value at
time of
allocation
DKKm
Value per
matching
share at 31
December
DKK
Total fair value
at 31
December
DKKm
0
6,695
62,494
69,189
172
12
165
295,068
0
-14,328
93,636
7,788
-7,476
287,096
675,800
-7,788
-47,272
0
-69,076
-196,558
-72,467
-173,163
-442,188
84,182
21,481
58,874
164,536
134
134
134
134
134
91
0
-9
-59
22
165
165
165
165
165
11
112
0
-11
-73
27
Financial statements - Contents
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 2023, the recognised fair value of
matching shares for the Group
amounted to DKK 14m (DKK 18m in
2022). At 31 December 2023, total fair
value related to matching shares
amounted to DKK 29m. The number of
shares is adjusted for dividend paid, no
expected dividend is included.
Annual report 2023 | Tryg A/S | 129
Notes
DKKm
5
Share-based payment (continued)
Conditional shares
Total Numbers
Executive
Board
Risk-takers
Other
Total
Fair Value
Average value
per conditional
share at grant
date DKK
Total value at
time of
allocation
DKKm
Value per
conditional
share at 31
December
DKK
Total fair value
at 31
December
DKKm
34,800
163,583
58,829
257,212
206,118
-93,915
0
-10,077
102,126
490,725
127,070
-14,208
-268,152
335,435
226,996
136,904
-12,857
-213,898
137,145
923,839
170,059
-27,065
-492,127
574,706
161
171
171
171
171
171
42
158
29
-5
-84
98
147
147
147
147
147
147
38
136
25
-4
-72
84
Executive
Board
Risk-takers
Other
Total
Average value
per conditional
share at grant
date DKK
Total value at
time of
allocation
DKKm
Value per
conditional
share at 31
December
DKK
Total fair value
at 31
December
DKKm
2023
Conditional shares allocated in
2023
Allocated in 2018-2022
Category changes and addition
Cancelled
Exercised
Total 31.12.23
2022
Conditional shares allocated in
2022
70,169
30,973
4,314
105,456
Allocated in 2018-2021
135,949
Category changes and addition
Cancelled
Exercised
Total 31.12.22
0
0
-10,077
125,872
405,078
54,674
0
-106,742
353,010
212,088
753,115
10,594
-8,231
-139,496
74,955
65,268
-8,231
-256,315
553,837
162
172
172
172
172
172
17
130
11
-1
-44
95
165
165
165
165
165
165
17
125
11
-1
-42
92
Financial statements - Contents
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 2023, the recognised fair value of
conditional shares for the Group
amounted to DKK 65m (DKK 46m in
2022). At 31 December 2023, total fair
value related to conditional shares
amounted to DKK 122m.
Annual report 2023 | Tryg A/S | 130
Notes
Financial statements - Contents
DKKm
2023
2022
DKKm
2023
2022
6
Interest and dividends
Interest income and dividends
Dividends
Interest income, bonds
Interest income, other
Interest expenses
Interest expenses subordinated loan capital, credit
institutions and cash at bank
Interest expenses, other
149
1,427
47
1,624
-195
-149
-344
1,280
8
9
152
763
2
918
-152
-3
-154
763
Net finance income/expenses from insurance
Changed discount rate
Unwinding
Exchange rate adjustment from insurance contracts
Net finance income/expenses from reinsurance
Changed discount rate
Unwinding
Exchange rate adjustment from reinsurance contracts
-912
-1,285
7
-2,190
7
78
-1
84
3,462
-797
-44
2,621
-44
20
-10
-34
7
Value adjustments
Value adjustments concerning financial assets or liabilities at fair value with value adjustment in the
income statement:
10 Other income and costs
Include income and costs which cannot be directly ascribed to the insurance portfolio or investment
assets.
Equity investments
Unit trust units
Bonds
Derivatives (Equity, interest, currency and inflation)
-550
765
642
713
1,571
Value adjustments concerning assets or liabilities that cannot be attributed to IFRS 9:
Investment property
Other statement of financial position items
96
6
103
1,674
704
-1,481
-2,117
-738
-3,632
9
-52
-43
-3,675
Other income
Income related to the sale of non-insurance products
Other income
Other costs
Amortisation of customer relations and trademarks
RSA Scandinavia
Costs related to the sale of non-insurance products
Other costs a)
115
31
145
-968
-300
-162
-717
-2,147
-2,001
126
24
150
-786
-949
-100
-458
-2,293
-2,143
Exchange rate adjustments concerning financial assets or liabilities which cannot be stated at
fair value total DKK 17m ( DKK 5m in 2022)
a) Hereof DKK 180m in Q3 2023 related to restructuring costs and DKK 100m related to bankruptcy of Gefion, hereof DKK 50m
in Q3 2023 and DKK 50m in Q1 2022
Annual report 2023 | Tryg A/S | 131
Notes
DKKm
2023
2022
11
Tax
Tax on accounting profit/ loss
Difference between Danish and foreign tax rates
Tax adjustment, previous years
Adjustment of non-taxable income and costs
Change in valuation of tax assets
Change in tax rate
Effective tax rate
Tax on accounting profit/ loss
Difference between Danish and foreign tax rates
Tax adjustment, previous years
Adjustment of non-taxable income and costs
Change in valuation of tax assets
Change in tax rate
1,268
-56
-64
17
4
8
1,178
%
25.2
-1.1
-1.3
0.3
0.1
0.2
23.4
-671
-21
-11
-90
19
-30
-804
%
22.0
1.0
0.5
3.0
-1.0
1.0
26.5
Financial statements - Contents
Annual report 2023 | Tryg A/S | 132
Notes
DKKm
12
Intangible assets
2023
Cost
Trademarks
and
customer
relations Softwarea)
Goodwill
Assets under
constructiona)
Total
Cost at 1 January
20,673
12,287
Exchange rate adjustments
Transferred from assets under
construction to software
Additions for the year
Disposals for the year
Cost at 31 December
Amortisation and write-downs
Amortisation and write-downs
at 1 January
Exchange rate adjustments
Amortisation for the year
Impairment losses and write-
downs for the year
Reversed amortisation
Amortisation and write-downs
at 31 December
-9
0
29
0
45
0
0
0
2,597
-31
262
45
-12
20,693
12,332
2,861
369
-5
35,926
-1
-262
458
-1
559
0
531
-13
36,445
-104
-1,254
-1,851
4
0
-29
0
-2
-967
18
-274
0
0
-4
6
0
0
0
0
0
-3,209
21
-1,241
-33
6
DKKm
12
Intangible assets
2022
Cost
Cost at 1 January
Exchange rate adjustments
Transferred from assets under
construction to software
Additions for the year
Additions, demerger of Trygg-
Hansa, Codan Norway
Disposals for the year
Cost at 31 December
Amortisation and write-downs
Amortisation and write-downs
at 1 January
Exchange rate adjustments
Amortisation for the year
Impairment losses and write-
downs for the year
Financial statements - Contents
Trademarks
and
customer
relations
Goodwill
Softwarea)
Assets under
constructiona)
4,880
-34
1,863
-16
2,267
-29
0
0
0
0
15,827
10,441
0
0
215
77
74
-7
Total
9,276
-84
0
358
267
-4
-215
281
40
0
26,382
-7
20,673
12,287
2,597
369
35,926
-104
0
0
0
0
-510
12
-756
0
0
-1,637
19
-233
-7
7
0
0
0
0
0
-2,251
31
-988
-7
7
-129
-2,223
-2,106
0
-4,459
Reversed amortisation
Carrying amount at 31
20,564
10,110
755
559
31,987
Amortisation and write-downs
at 31 December
-104
-1,254
-1,851
0
-3,209
Material intangible assets
Trygg-Hansa Trademark DKK 2,569m not depreciated.
Trygg-Hansa Customer relations Private customers DKK 5,757m (DKK 6,425m
at 31 December 2022) depreciated over 10 years. Remaining depreciation 8 years.
Trygg-Hansa Customer relations Commercial customers DKK 688m (DKK 815m
at 31 December 2022) depreciated over 7 years. Remaining depreciation 5 years.
Carrying amount at 31
20,569
11,033
746
369
32,716
a) Hereof proprietary software and assets under construction DKK 522m (DKK 445m at 31 December 2022)
Annual report 2023 | Tryg A/S | 133
Notes
Financial statements - Contents
12
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 insurance revenue 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. Gross
claims are based on expected claims ratios, which corresponds to normalised large- and weather
claims. Reinsurance is taken into account when looking at the overall insurance service 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 2023, 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 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.
DKKm
2023
2022
12
Intangible assets (continued)
— Earned premium assumed CAGR 0-10 years
— Earned premium assumed CAGR > 10 years (terminal
— Required return before tax
— Expected level of combined ratio
Sensitivity information
Impact on the calculated present value from the following
changes:
CAGR + 1.0 percentage point (0-10 years)
CAGR - 1.0 percentage point (0-10 years)
Required return +1.0 percentage point
Required return -1.0 percentage point
Combined ratio +1.0 percentage point
Combined ratio -1.0 percentage point
The above changes have no impact on equity
3 %
2 %
10 %
81 %
1.1bn
-1.0bn
-3.8bn
5.2bn
-1.3bn
1.3bn
3 %
2 %
9 %
82 %
1.1bn
-1.1bn
-4.1bn
5.9bn
-1.4bn
1.4bn
Norway
In 2022, Tryg acquired the Norwegian branch Codan Norway. See note 28. 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 2023, 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 impairment test shows a calculated value in use of approximately DKK 27.2bn (DKK 26.9bn)
relative to the value of the CGU of DKK 15.4bn (DKK 13.7bn) and does not indicate any impairment
in 2023. 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 effect on the equity. An increase in the required return of approx. 3.2% will result in a write
down of goodwill.
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.
Annual report 2023 | Tryg A/S | 134
Notes
Financial statements - Contents
The impairment test shows a calculated value in use of approximately DKK 8.1bn (DKK 9.6bn)
relative to the value of the CGU of DKK 3,8bn (DKK 3.3bn) and does not indicate any impairment in
2023. Goodwill amounts to DKK 1.1bn (DKK 1.2bn).
Sweden
In 2022, Tryg acquired the Swedish branch Trygg-Hansa. See note 28. The insurance activities were
incorporated into the Tryg Group’s business structure from 1 April 2022 and distributed under the
Trygg-Hansa Brand.
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. 6.7% will result in a write
down of goodwill.
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.
DKKm
2023
2022
12
Intangible assets (continued)
— Earned premium assumed CAGR 0-10 years
— Earned premium assumed CAGR > 10 years (terminal
— Requried return before tax
— Expected level of combined ratio
Sensitivity information
Impact on the calculated present value from the following
changes:
CAGR + 1.0 percentage point (0-10 years)
CAGR - 1.0 percentage point (0-10 years)
Required return +1.0 percentage point
Required return -1.0 percentage point
Combined ratio +1.0 percentage point
Combined ratio -1.0 percentage point
The above changes have no impact on equity
3 %
2 %
11 %
88 %
0.2bn
-0.2bn
-1.0bn
1.3bn
-0.8bn
0.8bn
3 %
2 %
9 %
88 %
0.3bn
-0.3bn
-1.4bn
2.0bn
-1.0bn
1.0bn
At 31 December 2023, 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 as
one 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”.
Private SE comprises the sale of insurance products to private customers under the ‘Trygg-Hansa’
brand. Moreover, insurance is sold under the brands Atlantica, Bilsport & MC and Moderna
Djurförsäkringar. 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 35.8bn (DKK 30.5bn)
relative to the value of the CGU of DKK 27.6bn (DKK 26.3bn) and does not indicate any impairment
in 2023. Goodwill amount to DKK 15.1bn (DKK 15.1bn).
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. 2.1% will result in a write
down of goodwill.
Annual report 2023 | Tryg A/S | 135
Notes
DKKm
2023
2022
12
Intangible assets (continued)
— Earned premium assumed CAGR 0-10 years
— Earned premium assumed CAGR > 10 years (terminal
— Requried return before tax
— Expected level of combined ratio
Sensitivity information
Impact on the calculated present value from the following
changes:
CAGR + 1.0 percentage point (0-10 years)
CAGR - 1.0 percentage point (0-10 years)
Required return +1.0 percentage point
Required return -1.0 percentage point
Combined ratio +1.0 percentage point
Combined ratio -1.0 percentage point
The above changes have no impact on equity
3 %
3 %
10 %
79 %
1.6bn
-1.5bn
-5.7bn
8.4bn
-1.7bn
1.7bn
2 %
2 %
10 %
78 %
1.5bn
-1.4bn
-5.0bn
7.1bn
-1.5bn
1.5bn
Financial statements - Contents
Material Goodwill
Goodwill Alka DKK 4,242m
Goodwill Trygg-Hansa and Moderna DKK 15,049m
Goodwill Codan-Norge DKK 1,080m
Trademarks and customer relations
As at 31 December 2023 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 2023 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 future cash
flows. The test did indicate an impairment of DKK 4m (DKK 7m) of it systems, due to higher related
costs and some lower expected systems benefits, a write-down has been recognized. The cost is
recognised as write-downs under insurance service expenses in the income statement.
Assets under construction are not depreciated but tested once a year for impairment or when if 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.
Annual report 2023 | Tryg A/S | 136
Notes
13
Property plant and equipment
DKKm
2023
Cost
Cost at 1 January
Exchange rate adjustments
Additions for the year
Disposals for the year
Cost at 31 December
Accumulated depreciation and value adjustments
Accumulated depreciation and value adjustments at 1 January
Exchange rate adjustments
Depreciation for the year
Reversed depreciation and value adjustments
Accumulated depreciation and value adjustment at 31 December
Carrying amount at 31 December
2022
Cost
Cost at 1 January
Exchange rate adjustments
Additions for the year
Additions, demerger of Trygg-Hansa, Codan Norway
Disposals for the year
Cost at 31 December
Accumulated depreciation and value adjustments
Accumulated depreciation and value adjustments at 1 January
Exchange rate adjustments
Depreciation for the year
Reversed depreciation and value adjustments
Accumulated depreciation and value adjustment at 31 December
Carrying amount at 31 December
Operating
equipment
Leases ROU
equipment a)
Leases ROU 'Group-
occupied property b)
295
-2
56
-25
324
-133
1
-23
15
-141
183
105
0
0
0
105
-89
0
-9
0
-98
7
1,203
-16
424
0
1,611
-510
9
-175
0
-676
935
Operating
equipment
Leases ROU
equipment a)
Leases ROU 'Group-
occupied property b)
251
-3
28
20
-1
295
-121
2
-15
1
-133
162
103
0
0
2
0
105
-75
0
-14
0
-89
16
983
-19
95
144
0
1,203
-379
10
-141
0
-510
693
Total
1,603
-19
481
-25
2,040
-732
10
-207
15
-915
1,125
Total
1,337
-22
123
166
-1
1,603
-575
12
-170
1
-732
871
Financial statements - Contents
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 (ROU), 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.
Annual report 2023 | Tryg A/S | 137
Notes
Financial statements - Contents
DKKm
2023
2022
DKKm
2023
2022
14
Investment property
15
Equity investments in associates
Cost
Cost at 1 January
Additions for the year
Additions, demerger of Trygg-Hansa, Codan Norway
Disposals for the year
Cost at 31 December
Revaluations at net asset value
Revaluations at 1 January
Reversed on sale
Value adjustments for the year
Revaluations at 31 December
396
69
0
-165
300
-175
0
-72
-246
36,035
56
19
-35,713
396
1,032
-1,188
-19
-175
Carrying amount at 31 December
54
222
Fair value at 1 January
Exchange rate adjustments
Additions for the year
Disposals for the year
Value adjustments for the year a)
Fair value at 31 December
1,017
-30
0
-588
99
498
1,040
-26
1
-6
7
1,017
a) Value adjustment in the income statement for property held at the statement of financial position date recognised in
value adjustments amounts DKK -31m
Total rental income amounts to DKK 46m (DKK 57m in 2022 )
Total expenses amounts to DKK 9m (DKK 12m in 2022).
External experts were involved in valuing the majority of the investment properties.
Return percentages, weighted average
Business property
Office property
Residential property
Total
2023
-39.8
4.9
5.0
1.2
2022
5.1
5.5
4.0
5.4
Sensitivity
The Group´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 valuations are the applied rates of return, annual net rental income and occupancy rates. The
average rates of return applied are stated above.
Impacts on the fair value of properties
Increase in applied rate of return of 0.25%
Decrease in applied rate of return of 0.25%
Decrease in net rental income of 3%
Decrease in occupancy rate of 3%
2023
-20
22
-15
-3
2022
-34
36
-30
-7
Annual report 2023 | Tryg A/S | 138
Notes
Financial statements - Contents
DKKm
16
Financial assets
Financial assets held for trading
Financial assets designated at fair value a)
Derivative financial instruments at fair value used for hedge
accounting with value adjustment in other comprehensive
income
Financial assets measured at amortised cost
Total financial assets
Financial assets at amortised cost only deviate to a minor
extent from fair value.
Financial liabilities
Derivative financial instruments at fair value with value
adjustments in the income statement
Derivative financial instruments at fair value with value
adjustments in other comprehensive income
Financial liabilities at amortised cost
Total financial liabilities
a) Financial assets designated at fair value comprise bonds in the match portfolio.
2023
2022
Adjustment is made for subsequent changes to market conditions, for instance, by including
transactions in similar financial instruments that are assumed to be motivated by normal business
considerations. For a number of financial assets and liabilities, no market exists.
20,641
50,593
0
3,626
74,859
20,991
49,472
78
4,199
74,740
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
derivatives 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.
1,431
2,394
348
17,643
19,422
4
15,649
18,047
Valuation based on significant non-observable input (level 3) consists of certain financial instruments
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-observable
input. Please refer to note 14 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
reclassifications between the categories. Some bonds have become illiquid and have therefore been
moved from Quoted prices to the Observable input category, while other bonds have become liquid
and have been moved from Observable input to the Quoted prices category.
Please refer to note 1 for valuation of subordinated loan capital at fair value. Other financial liabilities measured at amortised
cost only deviate to a minor extent from fair value.
Fair value hierarchy for financial instruments and investment property measured at fair value in the
statement of financial position.
The Fair value hierarchy
Quoted market 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
substantially on the basis of observable input other than quoted prices 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. For 2023 Tryg has assessed whether quoted prices does represent fair
value at the measurement date. Thus quoted prices derived from a brokered market are considered
Level 2 input.
2023
Investment property
Equity investments
Unit trust units
Bonds
Derivative financial instruments, assets
Derivative financial instruments, debt
Quoted
prices
Observable
input
Non-
observable
input
0
142
6,966
26,564
9
0
33,681
0
3,699
1,194
30,128
2,029
-1,779
35,271
498
97
32
373
0
0
1,001
Total
498
3,939
8,192
57,065
2,038
-1,779
69,952
Annual report 2023 | Tryg A/S | 139
Notes
DKKm
16
Financial assets (continued)
2022
Investment property
Equity investments
Unit trust units
Bonds
Other lendings
Derivative financial instruments, assets
Derivative financial instruments, debt
Consolidated
references
pricesa)
0
0
6,917
55,372
0
15
0
62,304
Observable
input
0
4,554
1,377
428
0
1,748
-2,398
5,709
Non-
observable
input
1,017
92
36
0
0
0
0
1,145
Total
1,017
4,647
8,330
55,800
0
1,763
-2,398
69,158
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 based on actual
trades are available. External experts were involved in valuing the majority of the investment
properties.
DKKm
Financial instruments transferred from "Quoted prices" to
"Observable input"
2023
11,521
2022
0
Transfers between the categories quoted prices and observable input mainly result from bonds that
are reclassified either due to traded volume or the number of days between last transaction and the
time of determination.
DKKm
16
Financial assets (continued)
Financial instruments measured at fair value in the
statement of financial position on the basis of non-
observable input:
Carrying amount at 1 January
Exchange rate adjustments
Addition, demerger of Trygg-Hansa, Codan Norge
Gains/losses in the income statement
Purchases
Sales
Transfers to/from the group 'non-observable input'
Carrying amount at 31 December
Gains/losses in the income statement for assets held at the
statement of financial position date recognised in value
adjustments
Reconciliation of Tryg's Investment portfolio
Investment assets according to statement of financial
Other, hereof financial instrument in liabilities a)
External customers b)
Tryg's investment portfolio b)
Match portfolio
Free portfolio
a) Primarily debt relating to repos and derivatives.
Financial statements - Contents
2023
2022
1,145
-29
0
101
373
-591
0
1,001
1,114
-25
50
6
9
-8
0
1,145
2
-1
71,844
-6,803
-1,672
63,369
45,863
17,506
72,049
-7,387
-1,972
62,688
45,032
17,656
b) The setup of Tryg Invest is impacting Tryg’s statement of financial position as external customers investments
are booked under “Total other financial investments” with opposing liabilities entries as “other debt”.
Annual report 2023 | Tryg A/S | 140
Notes
DKKm
16
Financial assets (continued)
Derivative financial instruments
Derivatives with value adjustments in the income statement at fair value:
2023
DKKm
Interest derivatives
Share derivatives
Exchange rate derivatives a)
Inflation derivatives
Gross amount before offsetting
Due after less than 1 year
Due within 1 to 5 years
Due after more than 5 years
2022
Interest derivatives
Share derivatives
Exchange rate derivatives a)
Inflation derivatives
Gross amount before offsetting
Due after less than 1 year
Due within 1 to 5 years
Due after more than 5 years
Nominal
64,765
206
13,065
5,918
83,954
13,656
37,029
33,269
58,339
221
19,359
4,588
82,507
27,304
31,393
23,810
Positive
market value
Negative
market value
1,221
-1,694
-5
-597
0
-2,295
-601
-372
-1,321
37
942
354
2,554
979
430
1,145
913
53
519
629
2,113
638
605
870
-8
-249
-38
-2,749
-535
-646
-1,568
44
270
591
-636
103
-41
-698
a) hereof used for hedging of foreign entities nom. DKK 6.8bn (2022 DKK 6.6bn)"
Derivatives are used continuously as part of the cash and risk management carried out by
Tryg and its portfolio managers.
Financial statements - Contents
DKKm
16
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:
2023
2022
Gains
Losses
Net
Gains
Losses
Net
Gains and losses at 1 January
Value adjustments for the year
4,875
1,001
-4,161
-872
715
130
3,986
-3,768
889
-393
Gains and losses at 31
December
Value adjustments
5,877
-5,033
844
4,875
-4,161
Value adjustments of foreign entities recognised in other comprehensive income in the amount of:
219
496
715
Fair value in
statement
of financial
position
-473
32
345
354
258
377
57
-176
-2,453
-1,541
Value adjustments at 1 January
Value adjustment for the year
Exchange rate adjustment for the year recognised in
profit/loss
Value adjustments at 31 December
2023
-2,347
-105
11
-2,441
2022
-184
-2,215
52
-2,347
Derivative financial instruments used in connection with hedging of foreign entities for accounting
purposes consists of FX-forward contracts with a duration of 3 month and have a nominal value of
SEK 6.4bn at a exchange rate of 64.11 and NOK 3.8bn at a exchange rate of 62.42.
Annual report 2023 | Tryg A/S | 141
Notes
DKKm
17
Assets from reinsurance contracts
2023
Balance as at 1 January
Reinsurance expenses
Claims recovered
Run-off previous years adjustments to the AIC
Net income/expenses from reinsurance contracts held
Finance expenses from reinsurance contracts held
Total amounts recognised in income statement
Cash flows
Premiums paid net of ceding commissions and other directly attributable expenses paid a)
Recoveries from reinsurance b)
Total Cash flows
Closing balance assets from reinsurance contracts
Balance as at 31 December
a) Premiums paid include amounts from change in balance sheet and exchange rate adjustments
b) Recoveries from reinsurance contains recoveries, change in balance sheet and exchange rate adjustments
c) No recognised loss components
Financial statements - Contents
Asset for Incurred claims
Asset for
Remaining
Coverage c)
Present value of future cash flows
Risk adjustment
for non-financial
risk
141
1,729
0
0
1,729
-34
1,696
-1,800
0
-1,800
36
36
2,086
0
-2,632
1,182
-1,450
-66
-1,516
0
1,614
1,614
2,184
2,184
596
0
774
-547
228
16
243
0
0
0
840
840
Total
2,823
1,729
-1,858
636
507
-84
423
-1,800
1,614
-186
3,060
3,060
Annual report 2023 | Tryg A/S | 142
Notes
DKKm
17
Assets from reinsurance contracts (continued)
2022
Asset for Incurred claims
Financial statements - Contents
Opening balance re-insurance contract assets
Addition, demerger of Trygg-Hansa, Codan Norway
Balance as at 1 January
Reinsurance expenses
Claims recovered
Run-off previous years adjustments to the AIC
Net income/expenses from reinsurance contracts held
Finance expenses from reinsurance contracts held
Total amounts recognised in income statement
Cash flows
Premiums paid net of ceding commissions and other directly attributable expenses paid a)
Recoveries from reinsurance b)
Total Cash flows
Closing balance assets from reinsurance contracts
Balance as at 31 December
a) Premiums paid include amounts from change in balance sheet and exchange rate adjustments
b) Recoveries from reinsurance contains recoveries, change in balance sheet and exchange rate adjustments
c) No recognised loss components
Asset for Remaining
Coverage c)
Present value of future
cash flows
Risk adjustment for non-
financial risk
185
22
207
1,447
0
0
1,447
-2
1,444
-1,511
0
-1,511
141
141
1,639
50
1,689
0
-731
8
-723
36
-686
0
1,084
1,084
2,086
2,086
420
42
462
0
-501
353
-148
0
-148
0
282
282
596
596
Total
2,244
114
2,358
1,447
-1,232
361
575
34
610
-1,511
1,366
-145
2,823
2,823
Annual report 2023 | Tryg A/S | 143
Notes
Financial statements - Contents
DKKm
2023
2022
18 Cash at bank and in hand
Impairment charges for receivables from credit institutions
Additions
Reversals
Write-offs for the year, not previously written down for
Total impairment charges
0
0
0
0
DKKm
Stage 1
Stage 2
Stage 3
Total
Total impairment IAS 39 provisions 31 December
2022
Effect of IFRS 9 transition
Total impairment provisions, 1 January 2023
Transfer to stage 1
Transfer to stage 2
Transfer to stage 3
Additions
Reversals
Previously written down for impairment, now written
off
Interest on impaired facilities
Total impairment provisions, 31 December 2023
0
2
2
0
0
0
0
0
0
0
2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2
2
0
0
0
0
0
0
0
2
19 Current tax
Tryg recognizes the role that taxes play in society and we acknowledge that business must have a
responsible 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 overseen by the Chairman of Tryg Risk Committee and reviewed and approved
annually by the Executive Board and the Supervisory Board of Tryg.
Tryg has established a Sustainability & ESG Board with management representatives from key
departments within Tryg with Tryg’s Group CFO as chair. This specifically implies that Tryg must
have a high moral and act ethically responsible in pursuance of legislation as well as internal policies,
rules and procedures set by Tryg’s Management.
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 govern all taxes paid by Tryg including corporate income tax,
withholding taxes, insurance premium taxes and consumption taxes, such as VAT.
The Tryg Tax Policy applies to all entities within the Tryg Group and, to the extent possible, also to
investments made by Tryg. For further information on the Tryg Tax Policy reference is made to our
webpage www.Tryg.com.
Annual report 2023 | Tryg A/S | 144
Notes
DKKm
2023
2022
DKKm
The figures below show profit/loss before tax compared to actual tax payments.
19 Current tax (continued)
Net current tax at 1 January
Exchange rate adjustments
Current tax for the year
Current tax on changes in equity
Adjustment of current tax in respect of previous years
Addition, demerger of Trygg-Hansa, Codan Norway
Tax paid for the year
Net current tax at 31 December
Current tax is recognised in the statement of financial
position as follows:
Assets, current tax
Lliabilities, current tax
Net current tax at 31 December
770
10
-1,277
-33
28
0
310
-192
197
-389
-192
47
12
-385
-109
8
159
1,039
770
854
-83
770
Due to IFRIC 23, Tryg Forsikring A/S have previous included 80% of an expected repayment
for unused tax losses in the closed Finnish branch in 2012
Tryg Forsikring A/S has received the decision from the Danish tax authorities. The decision has
been appealed to National tax Tribunal and a new valuation and assessment of the expected
outcome have been made. The expected probability to win the case at the National Tax Tribunal
is less than 50%. The tax asset has therefore been written down in full.
Financial statements - Contents
2022
Corporate
tax paid Other taxes
617
195
216
11
2,318
1,850
708
86
4,963
Profit/loss
before tax
2,575
833
1,597
23
5,029
2023
Corporate
tax paid Other taxes
268
78
-26
-9
310
2,236
1,529
904
44
4,713
Denmark
Norway
Sweden
Other countries
Total
Profit/loss
before tax
1,187
925
943
-4
3,049
1,039
The figures below show result before tax compared to actual tax payments for other countries.
Profit/loss
before tax
2023
Corporate
tax paid Other taxes
Profit/loss
before tax
2022
Corporate
tax paid Other taxes
34
12
-5
2
-6
-5
-8
-1
23
-15
6
0
0
0
0
0
0
-9
21
12
3
3
1
1
2
0
44
18
6
-10
-1
-11
-6
0
0
-4
11
0
0
0
0
0
0
0
11
58
12
12
3
0
1
0
0
86
Finland
Germany
Netherlands
Austria
Schwitzerland
Belgium
UK
Ireland
Total
Activities in these countries mainly consist of Tryg’s Credit & Surety business, under the brand
Tryg Garanti.
Due to local tax regulations, there may be variations in the timing of tax payment between the
countries. 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 profit/loss 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.
Annual report 2023 | Tryg A/S | 145
Notes
DKKm
Denmark
Norway
Sweden
Finland
Germany
Netherlands
Austria
Schwitzerland
Belgium
UK
Ireland
Total
DKKm
Denmark
Norway
Sweden
Finland
Germany
Netherlands
Austria
Schwitzerland
Belgium
UK
Ireland
Total
Employer
Taxes
Employee
Taxes
476
194
252
0
5
0
2
0
0
1
0
967
239
314
3
6
2
2
0
1
1
0
2023
Insurance
premium
taxes
727
1,042
256
18
1
1
0
1
0
0
0
VAT
65
54
82
0
0
0
0
0
0
0
0
Total
2,236
1,529
904
21
12
3
3
1
1
2
0
929
1,537
2,046
202
4,713
2022
Insurance
premium
taxes
716
1,126
211
16
2
9
0
0
0
0
0
Employee
Taxes
1,066
429
232
0
6
2
1
0
1
0
0
Employer Tax
411
257
177
0
3
0
1
0
0
0
0
VAT
125
39
89
42
0
0
0
0
0
0
0
Total
2,318
1,850
708
59
12
12
3
0
1
0
0
850
1,737
2,081
295
4,963
Financial statements - Contents
Global minimum tax regime
The Group is within scope of the OECD global minimum tax regime rules, also known as
Pillar Two.
Pillar Two legislation is enacted in Denmark, the jurisdiction in which Tryg A/S is incorporated,
and will come into effect from 1 January 2024. Since the Pillar Two legislation was not effective
at the reporting date, the Group has no related current tax exposure. The Group applies the
exception to recognising and disclosing information about deferred tax assets and liabilities
related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.
As the Group is in scope of the enacted legislation an assessment of Tryg's potential exposure to
Pillar Two income taxes in pursuant to the transitional safe harbour relief has been made. The
assessment is based on the most recent tax filings, country-by-country reporting and financial
statements for the constituent entities in the Group, i.e. financial year 2022.
Based on the assessment, most of the non-Danish entities complies with at least one of the
requirements set out in the transitional safe harbour relief. However, there are a limited number
of individual entities where the transitional safe harbour relief are not met. The Group does not
expect a material exposure to Pillar Two income taxes in those jurisdictions. Furthermore, the
assessment implies that the activities in Denmark fail the transitional safe harbour relief.
Therefore a top-up tax calculation based on 2022 values has been made.
The result shows a GloBE effective tax rate in Denmark well above the threshold for top-up tax.
The Group is continuing to assess the impact of the Pillar Two income taxes legislation on its
future financial performance.
Annual report 2023 | Tryg A/S | 146
Notes
DKKm
20
Equity
DKKm
20
Equity (continued)
Number of shares (1,000)
Shares outstanding
Own shares
Solvency II - Own funds
Number of shares at 1 January
Acquired own shares during the year
Cancellation in connection with buyback
programme
Exercise of incentive programme
2023
633,710
-16,359
2022
653,447
-20,669
0
105
0
932
Number of shares at 31 December
617,455
633,710
Number of shares as a percentage of issued
shares at 31 December
Nominal value at 31 December (DKKm)
97.26
3,087
96.80
3,169
2023
20,944
16,359
-19,819
-105
17,380
2.74
87
2022
1,207
20,669
0
-932
20,944
3.20
105
Equity according to annual report
Proposed dividend
Share buyback
Intangible assets
Profit margin, solvency purpose
Taxes
Subordinate loan capital
Solvency II - Own funds
All shares have equal rights.
Pursuant to the authorisation granted by the shareholders, Tryg may acquire up to a total face value
DKK 317m of the share capital in the period up until 31 December 2024. Own shares are acquired
for writing down the share capital and for use in the Group's incentive programme.
Financial statements - Contents
2023
2022
40,351
-1,174
-304
42,504
-1,047
-1,786
-31,987
-32,716
3,400
1,660
3,052
3,000
1,896
4,162
14,998
16,012
Annual report 2023 | Tryg A/S | 147
Notes
DKKm
21
Provisions for insurance contracts
2023
Provisions for insurance contracts
Balance as at 1 January
Insurance revenue
Incurred claims and other directly attributable expenses
Insurance acquisition cash flows amortisation
Run-off previous years adjustments to the LIC
Insurance service expenses (gross)
Profit/loss on gross business
Finance expenses from insurance contracts issued
Total income statement (Gross)
Cash flows
Insurance revenue received a)
Claims and other directly attributable expenses paid b)
Insurance acquisition costs cash flows c)
Total Cash flows
Closing insurance contract liabilities
Balance as at 31 December
Financial statements - Contents
Liability for remaining coverage
Liabilities for incurred claims for
contracts under the PAA
Excluding loss
component
Loss component
Present value of
future cash flows
Risk adjustment for
non-financial risk
6,077
-39,126
1,588
3,371
4,959
-34,167
-4
-34,170
38,785
-1,588
-3,371
33,826
5,733
5,733
1
0
0
0
0
0
0
0
0
0
0
0
1
1
40,939
0
27,703
0
-599
27,105
27,105
2,106
29,211
0
-28,711
0
-28,711
41,440
41,440
2,045
0
1,292
0
-1,136
156
156
88
244
0
0
0
0
2,289
2,289
Total
49,063
-39,126
30,584
3,371
-1,735
32,219
-6,906
2,190
-4,716
38,785
-30,298
-3,371
5,116
49,463
49,463
The calculated risk adjustment corresponds to the confidence level of 68.0 at 31 December 2023.
a) Insurance revenue received contains ordinary premiums received, change in liability for remaining coverage from business combinations (Trygg-Hansa), change in debt and receivable and exchange rate adjustment from local currency to group currency.
b) Claims and other directly attributable expenses paid contains claims paid, claims from IFRS 3 business combinations (Trygg-Hansa), change in debt and receivable and exchange rate adjustment from local currency to group currency. Liability for remaining
coverage contains administrations costs related to insurance contracts.
c) Tryg has chosen to expense acquisition cost as they incur.
Annual report 2023 | Tryg A/S | 148
Notes
DKKm
21
Provisions for insurance contracts (continued)
2022
Provisions for insurance contracts
Opening balance
Insurance contract liabilities
Balance as at 1 January
Addition, demerger of Trygg-Hansa, Codan Norway
Net balance
Insurance revenue
Incurred claims and other directly
attributable expenses
Insurance acquisition cash flows amortisation
Run-off previous years adjustments to the LIC
Losses on onerous contracts and reversal of those losses
Insurance service expenses (gross)
Profit/loss on gross business
Finance expenses from insurance contracts issued
Total income statement (Gross)
Cash flows
Insurance revenue received a)
Claims and other directly attributable expenses paid b)
Insurance acquisition costs cash flows c)
Total Cash flows
Closing insurance contract liabilities
Balance as at 31 December
Financial statements - Contents
Liability for remaining coverage
Liabilities for incurred claims for
contracts under the PAA
Excluding loss
component
Loss component
Present value of
future cash flows
Risk adjustment for
non-financial risk
4,506
4,506
1,980
6,486
-38,365
1,833
2,868
0
4,700
-33,668
-8
-33,677
37,969
-1,833
-2,868
33,268
6,077
6,077
0
0
0
0
0
0
0
1
1
1
0
1
0
0
0
0
1
1
26,947
26,947
16,129
43,075
0
27,508
0
-373
0
27,134
27,134
-2,410
24,724
0
-26,860
0
-26,860
40,939
40,939
1,516
1,516
410
1,926
0
1,068
0
-746
0
321
321
-203
119
0
0
0
0
2,045
2,045
Total
32,968
32,968
18,519
51,488
-38,365
30,409
2,868
-1,120
1
32,156
-6,212
-2,621
-8,833
37,969
-28,694
-2,868
6,408
49,063
49,063
The calculated risk adjustment corresponds to the confidence level of 68.0 at 31 December 2022.
a) Insurance revenue received contains ordinary premiums received, change in liability for remaining coverage from business combinations (Trygg-Hansa), change in debt and receivable and exchange rate adjustment from local currency to group currency.
b) Claims and other directly attributable expenses paid contains claims paid, claims from IFRS 3 business combinations (Trygg-Hansa), change in debt and receivable and exchange rate adjustment from local currency to group currency. Liability for remaining
coverage contains administrations costs related to insurance contracts.
c) Tryg has chosen to expense acquisition cost as they incur.
Annual report 2023 | Tryg A/S | 149
Notes
DKKm
2023
2022
22
Pensions and similar obligations
Jubilees, pensions and other obligations
Compensation liability
Recognised liability
Defined-benefit pension plans:
Present value of pension obligations funded through
operations
39
12
51
26
37
24
61
24
DKKm
2023
2022
Specification of change in recognised pension obligations:
Recognised pension obligation at 1 January
Exchange rate adjustments
Capital cost of previously earned pensions
Actuarial gains/losses
Paid during the period
Recognised pension obligation at 31 December
Total pensions and similar obligations at 31 December
Total recognised obligation at 31 December
Specification of pension cost for the year:
Present value of pensions earned during the year
Total year's cost of defined-benefit plans
24
-2
6
2
-4
26
26
77
1
1
29
-1
1
2
-7
24
24
85
1
1
Financial statements - Contents
Annual report 2023 | Tryg A/S | 150
Notes
Financial statements - Contents
DKKm
2023
2022
DKKm
2023
2022
22
Pensions and similar obligations (continued)
The premium for the following financial years is estimated at
Number of pensioners
Assumptions used
Discount rate
Salary adjustments
Pension adjustments
G adjustments
Turnover
Employer contributions
Mortality table
1
102
%
3.0
3.8
2.4
3.5
7.0
1
110
%
2.7
3.8
1.7
3.5
7.0
19.1
K2013
19.1
K2013
23 Deferred tax
Tax asset
Operating equipment
Bonds
Capitalised tax loss
Tax liability
Intangible rights
Land and buildings
Debt and provisions
Contingency funds
Deferred tax
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 years premium paid to FPK amounted to DKK 18m (DKK 21m in 2022), which is about 2.3%
(4.2% in 2022) of the annual premium in FPK (2022). FPK writes in its annual report for 2022 that
it had a solvency ratio of 135 at 31 December 2022 (Solvency ratio 139 for 31 December 2021).
The Solvency Ratio is defined as the own funds relative to the solvency capital requirement.
Development in deferred tax
Deferred tax at 1 January
Exchange rate adjustments
Change in deferred tax relating to change in tax rate
Change in deferred tax previous years
Addition, demerger of Trygg-Hansa, Codan Norway
Change in capitalised tax loss
Change in deferred tax recognised in income statement
Change in valuation of tax asset
Deferred tax at 31 December
1
4
0
5
2,168
0
49
1,156
3,373
3,367
3,542
-14
8
-38
0
179
-314
4
3,367
21
17
137
175
2,368
80
97
1,173
3,718
3,542
806
-32
30
19
2,367
24
347
-17
3,542
Annual report 2023 | Tryg A/S | 151
Notes
DKKm
23 Deferred tax (continued)
Tax value of non-capitalised tax loss
DKKm
2023
2022
Tax value of non-capitalised tax loss
Loss
Tax value
Loss
Tax value
Denmark
Sweden
Norway
Finland
Germany
Ireland
England
Switzerland
The Netherlands
Austria
Belgium
Total
0
0
0
0
0
1
9
26
31
7
11
86
0
0
0
0
0
0
2
4
6
2
3
17
0
0
0
0
0
0
1
19
26
6
6
58
0
0
0
0
0
0
0
3
5
2
2
12
Loss determined according to Swedish and Finnish, German, Belgium, Dutch and Austria rules
can be carried forward indefinitely. 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
generate 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 -37m (DKK -109m at 31 December 2022).
Financial statements - Contents
DKKm
2023
2022
24 Other provisions
Other provisions at 1 January
Exchange rate adjustment
Change in provisions
Other provisions 31 December
94
0
129
223
40
-1
55
94
Other provisions relates to provisions for the Group’s own insurance claims, restructuring costs
and bankruptcy of Gefion. Additions to the provision for restructuring costs and own insurance
claims during the year amounts to DKK 238m (DKK 81m at December 2022) and use of existing
restructuring provisions amounts to DKK 109m (DKK 28m at December 2022).
Other provisions at 31 December 2023 excluding own insurances amounts to DKK 222m (DKK
88m at 31 December 2022).
25
Earnings per share, operating earnings per share
Profit/loss from continuing business to shareholders of Tryg
Profit/loss on discontinued and divested business
Profit/loss for the year
Depreciation on intangible assets related to Brands and
Customer relations after tax
Operating Profit/loss for the year
Average number of shares (1,000)
Diluted number of shares (1,000)
Earnings per share, continuing business
Diluted earnings per share, continuing business
Earnings per share
Diluted earnings per share
Operating earnings per sharea)
2023
2022
3,794
0
3,794
739
4,533
624,507
624,507
6.08
6.08
6.08
6.08
7.26
2,247
0
2,247
622
2,870
646,977
646,977
3.47
3.47
3.47
3.47
4.43
a) Calculated as operating profit/loss for the year divided by average number of shares in the period.
Annual report 2023 | Tryg A/S | 152
Notes
26 Other debt
Other debt amounts to DKK 7,551m (DKK 5,820m at 31 December 2022) and mainly consists of
debt related to external customers'investments in Tryg Invest, unsettled fund transactions, leasing
and accrued costs. Debt related to external customers investments in Tryg Invest investments
funds amounts to amounts to DKK 1,672m (DKK 1,972m at 31 December 2022).
DKKm
26
Other debt
Maturity of undiscounted lease liabilities
Due 1 year or less
Due 2-5 years
Due more than 5 years
Total lease liabilities 31 December
Lease liabilities included in the statement of financial
position
Hereof future cash flow of contract options
Amounts recognised in statement of cash flow
Total cash out-flow for leases
Amounts recognised in income statement
Interest on lease liabilities
2023
2022
202
465
625
1,293
45
211
-51
181
399
359
939
44
194
-38
There are no short team-leases recognised in the financial statement.
Debt related to lease are included in Other debt. Please refer to note 13 for specification of
ROU assets.
Financial statements - Contents
Annual report 2023 | Tryg A/S | 153
Notes
Financial statements - Contents
DKKm
DKKm
27 Contractual obligations, collateral and contingent liabilities
27 Contractual obligations, collateral and contingent liabilities (continued)
Tryg Livsforsikring A/S, Forsikrings-Aktieselskabet Alka Liv II and Holmia Livförsäkring AB have registered
the following assets as having been held as security for the insurance provisions:
Equity investments
Bonds
Interest and rent receivable
Total
2023
2022
463
553
3
313
748
2
1,019
1,063
Contractual obligations
2023
Other contractual obligationsa)
Obligations due by period
<1 year
1-3 years
3-5 years
> 5 years
1,011
1,011
742
742
451
451
11
11
2022
Other contractual obligationsa)
<1 year
1-3 years
3-5 years
> 5 years
748
748
755
755
424
424
11
11
Total
2,216
2,216
Total
1,938
1,938
a) Other contractual obligations mainly consists of investment commitments, IT and outsourcing agreements.
Please refer to note 13 for lease agreements recognised as ROU.
2023
Tryg has signed the following contracts above DKK 50m:
Tryg is committed to invest in some investment funds. The commitment amounts to DKK 909m
of which DKK 284m are expected called during 2023 and additionally DKK 625m within 5 years.
Tryg has signed IT infrastructure agreements with commitments amounting to DKK 737m within
5 years.
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 of which 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.
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 interest, royalties, dividends and income taxes etc. in respect of the jointly taxed
companies.
Annual report 2023 | Tryg A/S | 154
Financial statements - Contents
Notes
DKKm
27 Contractual obligations, collateral and contingent liabilities (continued)
Offsetting and collateral in relation to financial assets and obligations
2023
Assets
Reverse repos
Derivative financial instruments
Liabilities
Repo debt
Derivative financial instruments
2022
Assets
Reverse repos
Derivative financial instruments
Liabilities
Repo debt
Derivative financial instruments
Gross amount before
offsetting
According to the
statement of financial
position
Further offsetting,
master netting
agreements
Offsetting
Collateral
Net amount
Collateral which is not offset in the statement of financial position
59
2,554
2,613
4,645
2,295
6,940
194
2,114
2,308
4,287
2,748
7,035
0
-516
-516
0
-516
-516
0
-350
-350
0
-350
-350
59
2,038
2,096
4,645
1,779
6,424
194
1,763
1,958
4,287
2,398
6,684
0
-1,223
-1,223
0
-1,223
-1,223
0
-1,255
-1,255
0
-1,255
-1,255
-59
-788
-847
-4,645
-434
-5,079
-194
-456
-651
-4,287
-1,052
-5,339
0
27
27
0
123
123
0
52
52
0
91
91
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.
Annual report 2023 | Tryg A/S | 155
Notes
DKKm
27 Contractual obligations, collateral and contingent liabilities (continued)
Contingent liabilities
Price adjustments 2016-2020
The Consumers Ombudsman (FO) has raised doubts about the lawfulness of the price increases in
Denmark between 2016 and 2019 and has therefore mentioned the possibility to pursue a
compensation on behalf of some customers. The case is related to a part of the private portfolio in
Denmark.
The FO has now brought the case to court. 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.
Tryg has given mandate to an external lawyer to produce a legal judgement, this is unchanged from
previous assessments, the probability of winning the case remains higher than the probability of
losing the case. The case is expected to be tried in court in February 2024.
Management has decided not to disclose an estimated amount but this is deemed to be 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 2023.
Financial statements - Contents
Annual report 2023 | Tryg A/S | 156
Notes
28
Acquisition activities
2023
Undo
29 December 2023 Tryg acquired all the outstanding shares in Undo Forsikringsagentur A/S.
Tryg had prior to the acquisition a non-controlling interest in Undo and Undo is now part of the
Tryg Group. The acquisition affects the Financial statement from 29 December 2023:
If the activities were included with a full year, the premium income and the insurance service
result would not be significantly affected.
DKKm
28 Net assets acquired
Assets
Intangible assets
Tangible assets
Financial assets
Total reinsurance of provisions
Receivables
Other assets and accrued income
Liabilities
Total provisions for insurance contracts
Debt and accruals and deferred income
Total identifiable net assets acquired
Purchase price (Shares in Tryg Forsikring A/S)
Goodwill
Undo
RSA Scandinavia
2023 (DKKm)
2022 (DKKbn)
0.0
0.0
62.2
0.0
0.0
15.4
0.0
72.8
4.8
34.0
29.2
11.3
0.2
23.9
0.1
3.7
0.9
19.8
7.4
12.9
29.9
17.0
The Group has not incurred any significant acquisition costs in connection with the closed
acquisition. The purchase price is final. In connection with the acquisition, a sum was paid which
exceeds the fair value of the identifiable acquired assets.
It has not been decided how the activities in Undo will be integrated into Tryg hence the excess
value (Goodwill) will be expensed at the acquisition date.
Financial statements - Contents
28
Acquisition activities (continued)
2022
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
cooperation 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 in the table.
Tryg is currently working on the system integration of the acquired activities. 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."
The measurement at fair value of identifiable acquired assets and liabilities at the acquisition date,
including intangible assets (customer relations and brands) and provisions for insurance contracts,
results 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.
Annual report 2023 | Tryg A/S | 157
Notes
DKKm
28
Acquisition activities (continued)
DKKm
29
Related parties
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 equal their carrying amount
based on the assessment that the business case and the required rate of return are largely
unchanged. The fair value measurement is considered a level 2 measurement. The fair value of
assets and liabilities acquired is for the Financial assets and liabilities primarily level 1 and some
level 3. All other assets and liabilities are based on current value or amortised costs as a proxy for
fair value and will as such be level 3.
As the acquisition date was 1 April 2022, the acquired businesses have not impacted the Group’s
premium income or net income for the first quarter of 2022 as the profit/loss was recognised in
the investment result. Due to the ongoing system integration of the acquired activities, including
the migration of policy administration systems, it is not possible to publish the full year premium
income and net income for the acquired businesses separately. If the acquisition date was 1
January 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 figures are preliminary. 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
acquisition 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."
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)
-Key management
-Other related parties
Claims payments
-Parent company (TryghedsGruppen smba)
-Key management
-Other related parties
Financial statements - Contents
2023
2022
0.5
0.6
2.6
0.3
0.1
0.3
0.6
0.6
2.3
0.1
0.2
0.3
Annual report 2023 | Tryg A/S | 158
Notes
Financial statements - Contents
29
Related parties (continued)
Specification of remuneration
DKKm 2023
Supervisory Board
Executive Board
Risk-takers
Risk-takers staff
functions
Risk-takers
independent
control functions
Risk-takers other
Base
salary incl.
car
allowance
Number of
persons
16
7
12
24
4
28
91
12
30
15
41
8
66
172
Share-
based
variable
salary a)
0
18
2
9
0
18
48
Cash
variable
salary b)
0
10
2
7
0
11
30
Pension
Total
0
8
2
7
1
12
30
12
66
21
65
10
107
280
a) Total expenses recognised in 2023 for matching shares and conditional shares allocated in 2023 and previous year. For
matching shares and conditional shares allocated to Executive Board in 2023, please refer to "Corporate governance" in
Management review.For further details on remunerations of Supervisory Board and Executive Board, please refer to "Corporate
governance" in Management review.
DKKm 2022
Supervisory Board
Executive Board
Risk-takers investment
Risk-takers staff functions
Risk-takers independent
control functions
Risk-takers other functions
Base
salary incl.
car
allowance
Number of
persons
18
4
11
23
4
31
91
11
31
15
39
8
68
172
Share-
based
variable
salary c)
0
16
1
7
0
15
40
Cash
variable
salary
Pension
Total
0
0
2
6
0
11
19
0
8
2
7
1
12
29
11
55
20
59
10
107
261
c) Total expenses in 2022 for matching shares and conditional shares allocated in 2022 and previous year.
b) Including non-competition clause
Of which retired
Supervisory Board
Executive Board d)
Risk-takers
Number of persons
Severance pay
2
2
0
4
0
14
0
14
Of which retired
Supervisory Board
Executive Board
Risk-takers
Number of persons
Severance pay
4
0
2
6
0
0
0
0
d) Severance pay is included in the remuneration table above in all categories, for a splitt please see the Remuneration report
2023 on Tryg.com
Annual report 2023 | Tryg A/S | 159
Notes
29
Related parties (continued)
Financial statements - Contents
2023
In 2023 Tryg A/S paid TryghedsGruppen smba dividends of DKK 2,102m.
Base salary are charges incurred during the financial year. Variable salary includes the charges for
conditional shares, which are recognised over a deferral period up to 4 years. Reference is made
to section 'Corporate governance' of the management's review on the corresponding
disbursements. The Executive Board and risk-takers are included in incentive programmes. Please
refer to note 5 for more information.
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
administrative services, IT and data deliveries.
The members of the Supervisory Board in Tryg A/S are paid with a fixed remuneration and are not
covered by the incentive schemes.
The transactions amounts to DKK 2m.
All transactions are conducted on an arm´s length basis.
The members of the Executive Board is paid a fixed remuneration, pension, car allowance, special
allowances, and staff benefits.
2022
In 2022 Tryg A/S paid TryghedsGruppen smba dividends of DKK 1,697m.
The variable salary is awarded with 40% cash, and 60% conditional shares which are deferred for
4 years. Please refer to 'Corporate governance'.
Each member of the Executive Board is entitled to 12 months' notice and severance pay equal to
12 months’ salary plus pension contribution. If a change of control clause is actioned COO is
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.
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
administrative 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.
Parent company
TryghedsGruppen smba
TryghedsGruppen smba controls 46,3% (2022: 45%) of the total shares in Tryg A/S.
This amounts to TryghedsGruppen smba controlling 47,5% of the shares outstanding in Tryg A/S
as at 31 December 2023.
30
Financial highlight
Please refer to page 101
Annual report 2023 | Tryg A/S | 160
Notes
Financial statements - Contents
31
Accounting policies
The consolidated financial statements are
prepared in accordance with the IFRS
Accounting Standards as adopted by the EU on
31 December 2023 and the additional Danish
disclosure requirements of the Danish Financial
Business Act on annual reports prepared by
listed financial services companies. The annual
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. The deviations from the
recognition and measurement requirements of
IFRS are:
• The Danish FSA’s executive order does not
allow provisions for deferred tax of
contingency reserves allocated 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 following
implementation of IFRS 9 and IFRS 17
This is the first set of the Group’s annual
financial statements in which IFRS 17 Insurance
Contracts and IFRS 9 Financial Instruments
have been applied. As a result, Tryg has restated
comparative amounts and the presentation of
the Profit and loss and the balance sheet as at 1
January 2023. Except for the changes
mentioned; the accounting policies have been
applied consistently for all periods presented in
these consolidated financial statements.
IFRS 17, as adopted by EU, has been
implemented with effect from 1 January 2023.
The standard establishes principles for the
recognition, measurement, presentation and
disclosure of insurance contracts and
reinsurance contracts held. It replaces IFRS 4 –
Insurance contracts.
Changes in accounting policies from the
adoption of IFRS 17 have been applied using a
full retrospective approach at 1 January 2022 to
the extent practicable. Tryg has:
• identified, recognised and measured each
group of insurance and reinsurance
contracts as if IFRS 17 had always been
applied;
• identified, recognised and measured any
assets for insurance acquisition cash flows as
if IFRS 17 had always been applied,
• derecognised previously reported balances
that would not have existed if IFRS 17 had
always been applied; and
• recognised any resulting net difference in
equity. The carrying amount of goodwill from
previous business combinations was not
adjusted.
In IFRS 17 a general measurement model
measures groups of contracts based on the
estimates of the present value of future cash
flows that are expected as the contracts are
fulfilled. The general model is based on present
value of future cash flows, adjusted to reflect the
time value of money, including a risk adjustment
and a contractual service margin. The
contractual service margin represents the
unearned profit to be recognised in the
statement of profit or loss when services are
provided in future periods. At each reporting
date, the fulfilment cash flows are remeasured
using current assumptions.
The main impact will be on presentation of
profit and loss compared to previously:
IFRS 17 requires that a risk margin is estimated.
Tryg uses a cost of capital approach, which is
also prescribed under Solvency II. A cost of
capital approach estimates the capital which a
third party would need to hold, in order to
protect itself from the underlying risks
associated with the insurance contract
liabilities, and which cannot be mitigated in the
market. IFRS 17 requires that the risk margin is
split into both a gross margin and a ceded
margin.
The gross margin does not play a role in Trygs
internal management of capital and reserves,
and is constructed for reporting purposes only.
Tryg’s business is entirely focused on non-life
insurance and it is relatively short-tail. This
makes Tryg eligible to use the premium
allocation approach as simplification for
measurement. In some cases e.g. when Tryg in
the future acquire portfolios the premium
allocation model may not be applied. In these
cases the general model will apply.
The premium allocation model is similar to
Tryg’s previous accounting principles. Tryg has
in line with the current accounting principle
chosen to expense acquisition cost as they
incur. This means that the financial effect of
implementing IFRS 17 is limited.
• Insurance revenue
Insurance revenue is the amount recognised
for services provided in the period.
Predominantly on the basis of the passage of
time. The previous top-line ‘gross earned
premium’ was measured in the same way.
• Insurance service expenses
'Bonus and premium
Insurance service expenses comprise
‘Acquisition costs’, ‘claims costs’ and
‘administration expenses’. Previously,
(i)
discounts’ were off set in ‘Gross earned
premium’. Under IFRS 17 it will be presented
as ‘Claims costs’
‘Onerous contracts’ were off set in
(ii)
‘Gross earned premiums’ as ‘unexpired risk’.
Under IFRS 17 it will be presented as ‘Claims
costs’
(iii) Movement in inflation swaps were
included in ‘claims costs’. Going forward the
movements will be included in ‘Investment
activities’.
• Net expenses from reinsurance contracts
Net expenses from reinsurance contracts
comprise payments to and recoveries from
reinsurance contracts held. Under IFRS 17
these will be presented in profit and loss as a
single net amount including changes in a
specific risk adjustment. Previously, amounts
recovered from reinsurers and reinsurance
expenses were presented separately and off
set in insurance contracts.
Annual report 2023 | Tryg A/S | 161
Notes
• ‘Insurance service result’ is the result of
‘Insurance revenue’, ‘Insurance service
expenses’ and ‘Net expenses from
reinsurance contracts’.
Statement of financial position presentation has
been changed following IFRS 17. The carrying
amount of portfolios of
• reinsurance contracts held that are assets
Comprises reinsurer’s share of premiums
and claims provisions and receivables and
debt relating to reinsurance
• insurance contracts issued that are liabilities
Comprises provisions for premium, claims,
bonuses and premium discounts and
receivables and debt relating to policyholders
Acquired portfolios
The amendment to IFRS 3 Business
Combinations introduced by IFRS 17 that
requires a entity to classify contracts acquired
as insurance contracts based on the contractual
terms and other factors at the date of
acquisition. Claims reserves acquired before the
initial application date 1 January 2023 will be
presented as insurance revenue based on the
expected cash flows as of the acquisition date.
IFRS 9 has been implemented with effect from 1
January 2023. The standard includes new
provisions governing "classification and
measurement of financial assets", "impairment
of financial assets" and "hedge accounting".
Implementation of IFRS 9 has not lead to
reclassifications.
Accounting regulation
Implementation of changes to accounting
standards and interpretation in 2023
The International Accounting Standards Board
(IASB) has issued several changes to the
international accounting standards, and the
International Financial Reporting Interpretations
Committee (IFRIC) has also issued a number of
interpretations.
No standards have been implemented for the
first time for the accounting year that began on
1 January 2023 that will have a significant
impact on the Group except IFRS 9 and IFRS 17.
See below regarding IFRS 9 ‘Financial
instruments’
Significant accounting estimates
and assessments
The preparation of financial statements under
IFRS requires the use of certain critical
accounting estimates and requires management
to exercise its judgement in the process of
applying the Group’s accounting policies. The
areas involving more judgement or complexity,
or areas where assumptions and estimates are
significant to the consolidated financial
statements are:
• Insurance and reinsurance contracts
• Fair value of financial assets and liabilities
• Valuation of property
• Business Combinations
• Measurement of Goodwill, Trademarks and
Customer relations
• Control of subsidiaries
Financial statements - Contents
Insurance and reinsurance contracts
Estimates of insurance contracts liabilities and
especially liability for incurred claims represent
the Group’s most critical accounting estimates,
as these provisions involve several uncertainty
factors. Similarly, the estimation of recoveries
from reinsurers may be significant.
Changes in the following key assumptions may
change the fulfilment cash flows materially:
• assumptions about the contract boundary;
• assumptions about level of aggregation;
• assumptions about claims development; and
• assumptions about discount rates, including
any illiquidity premiums.
Fulfilment cash flows comprise:
• estimates of future cash flows;
• an adjustment to reflect the time value of
money and the financial risks related to
future cash flows, to the extent that the
financial risks are not included in the
estimates of future cash flows; and
• a risk adjustment for non-financial risk.
The expected fulfilment cash flows are similarly
applied to reinsurance contract assets.
The sensitivity of the key assumptions and the
underlying assumptions and development of
discount rates are disclosed in note 1.
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 observable market data are not
subject to material estimates. For securities that
are not listed on a stock exchange, 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
discounting of the instrument cash flow using an
appropriate market interest rate with due
consideration for credit and liquidity premiums.
Valuation of property
The fair value is calculated based on a market-
determined 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 value. The
calculation of fair value is based on market
prices, considering the type of property, location
and maintenance standard, and based on a
market-determined rental income and operating
expenses in proportion to the property’s
required rate of return. Cf. note 13, 14 and 16.
Business Combinations
In Business Combinations, significant
assessments are made when considering the
fair value of the assets required and liabilities
assumed and when identifying intangible assets,
such as Trademarks, Customer relations 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 businesses. 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 future
cash flows and is affected by several factors,
including discount rates and other
circumstances dependent on economic trends,
Annual report 2023 | Tryg A/S | 162
Notes
such as customer behavior and competition. Cf.
note 12.
Control of subsidiaries
Control of subsidiaries is assessed yearly.
Hence, whether a subsidiary should still be part
of the consolidation 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
historical cost convention, as modified by the
revaluation of owner-occupied property, where
increases are recognised in other
comprehensive income, and revaluation of
investment property, financial assets held for
trading and financial assets and financial
liabilities (including derivative instruments) at
fair value are recognised in the income
statement.
Assets are recognised in the statement of
financial position when it is probable that future
economic benefits 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 benefits will flow out of the Group,
and the value of such liabilities can be measured
reliably.
On initial recognition, assets and liabilities are
measured 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 before 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 earned, whereas costs are recognised by the
amounts attributable to this financial year. Value
adjustments of financial assets and liabilities are
recognised in the income 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 financial statements of Tryg A/S (the parent
company) and the enterprises (subsidiaries)
controlled by the parent company. The parent
company is regarded as controlling an
enterprise when it:
1. exercises a controlling influence over the
relevant activities in the enterprise in
question,
is exposed to or has the right to a variable
return on its investment, and
2.
3. 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 influence are classified as
associates.
Basis of consolidation
The consolidated financial statements are
prepared based on the financial statements of
Tryg A/S and its subsidiaries. The consolidated
financial statements are prepared 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,
intra-group accounts and dividends, and gains
and losses arising on transactions between the
consolidated enterprises are eliminated.
Items of subsidiaries are fully recognised in the
consolidated financial statements.
Business combinations
Newly acquired or newly established enterprises
are recognised in the consolidated financial
statements from the date of acquisition and the
date of formation, respectively. The date of
acquisition is the date on which control 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
divested 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 contingent liabilities in the
acquired enterprises are measured at fair value
at the date of acquisition. Non-current assets
which are acquired with the intention of selling
them are, however, measured at fair value less
Financial statements - Contents
expected selling costs. Restructuring costs are
recognised 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 recognised 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
acquisition price of the acquired enterprise, the
value of minority interests in the acquired
enterprise and the fair value of previously
acquired equity investments, on the one hand,
and the fair value of the acquired assets,
liabilities 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 carrying 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 assets 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
Annual report 2023 | Tryg A/S | 163
Notes
the determination of the values at the date of
acquisition, had such information been known.
The presentation currency in the annual report
is DKK.
investment activity managed at Group level.
Generally, subsequent changes in estimates of
conditional acquisition prices are recognised
directly in the income statement.
Currency translation
A functional currency is determined for each of
the reporting entities in the Group. The
functional currency is the currency used in the
primary economic environment in which the
reporting entity operates. Transactions in
currencies other than the functional currency
are transactions in foreign currencies.
On initial recognition, transactions in foreign
currencies are translated into the functional
currency using the exchange rate applicable at
the transaction date. Assets and liabilities
denominated in foreign currencies 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 exchange rates applicable at the statement
of financial position date. Income and expense
items are translated using the average exchange
rates for the period. Exchange rate differences
arising on translation are classified as other
comprehensive income and transferred to the
Group’s translation reserve. Such translation
differences are recognised as income or as
expenses in the period in which the activities are
divested. All other foreign currency translation
gains and losses are recognised in the income
statement.
Segment reporting
Segment information is based on the Group’s
management and internal financial reporting
system and supports the management
decisions on allocation of resources and
assessment of the Group’s results divided into
segments. Execute Board is considered Key
operating decision makers.The segment
reporting is based on the Group Accounting
policy.
The operational business segments in the Group
are Private, Commercial, Corporate and Other.
Private encompasses the sale of insurances to
private individuals in Denmark, Sweden and
Norway. Commercial encompasses the sale of
insurances to small and medium sized
businesses, in Denmark, Sweden and Norway.
Corporate sells insurances to industrial clients
primarily in Denmark, Norway and Sweden. In
addition, Corporate handles all business
involving brokers. Other encompasses Acquired
portfolios. Cf. Acquired portfolios p. 162.
Geographical information is presented based on
the economic environment in which the Tryg
Group operates. The geographical areas are
Denmark, Norway and Sweden.
Segment income and segment costs as well as
segment 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 primarily
comprise assets and liabilities concerning
Key ratios
Earnings per share (EPS) are calculated
according to IAS 33. This and other key ratios
are calculated in accordance with
Recommendations and Ratios issued by The
Danish Finance Society and the Executive Order
on Financial Reports for Insurance Companies
and Multi-Employer Occupational Pension
Funds issued by the Danish Financial
Supervisory Authority.
Income statement
Insurance revenue
The insurance revenue for the period is the
amount of expected premium receipts
(excluding any investment component)
allocated to the period. Tryg allocates the
expected premium receipts to each period of
insurance contract services on the basis of the
passage of time. If the expected pattern of
release of risk during the coverage period differs
significantly from the passage of time, then the
allocation is made on the basis of the expected
timing of incurred insurance service expenses.
Tryg changes the basis of allocation between
the two methods above as necessary, if facts
and circumstances change. The change is
accounted for prospectively as a change in
accounting estimate.
For the periods presented, all revenue has been
recognised on the basis of the passage of time.
Financial statements - Contents
Loss component
Tryg assumes that no contracts are onerous at
initial recognition unless facts and
circumstances indicate otherwise.
Tryg considers facts and circumstances to
identify whether a group of contracts are
onerous based on:
• Pricing information
• Results of similar contracts it has recognised
• Environmental factors, e.g., a change in
market experience or regulations
Where this is not the case, and if at any time
during the coverage period, the facts and
circumstances mentioned indicate that a group
of insurance contracts is onerous, Tryg
establishes a loss component as the excess of
the fulfilment cash flows that relate to the
remaining coverage of the group over the
carrying amount of the liability for remaining
coverage of the group.
Accordingly, by the end of the coverage period
of the group of contracts the loss component
will be nil.
Loss-recovery components
When Tryg recognises a loss on initial
recognition of an onerous group of underlying
insurance contracts, or when further onerous
underlying insurance contracts are added to a
group, Tryg establishes a loss-recovery
component of the asset for remaining coverage
for a group of reinsurance contracts held
depicting the expected recovery of the losses if
relevant.
The loss-recovery component is subsequently
reduced to zero in line with reductions in the
onerous group of underlying insurance
Annual report 2023 | Tryg A/S | 164
Notes
Financial statements - Contents
contracts in order to reflect that the loss-
recovery component shall not exceed the
portion of the carrying amount of the loss
component of the onerous group of underlying
insurance contracts that the entity expects to
recover from the group of reinsurance contracts
held.
Insurance service expenses
Insurance service expenses arising from
insurance contracts are recognised in profit or
loss generally as they are incurred. They exclude
repayments of investment components and
comprise the following items.
• Incurred claims
• Amortisation of insurance acquisition cash
flows:
• Losses on onerous contracts and reversals of
such losses.
• Adjustments to the liabilities for incurred
claims that do not arise from the effects of
the time value of money, financial risk and
changes therein.
• Other insurance service expenses
Incurred claims
Claims are claims incurred during the year.
Incurred claims include run-off gains/losses in
respect of previous years. The portion which
can be ascribed to unwinding and/or change in
discount rates is transferred to Insurance
finance income and expenses.
Incurred claims include direct and indirect
claims handling costs, including costs of
inspecting and assessing claims, costs to
prevent, control and mitigate damage and other
direct and indirect costs associated with the
handling of claims incurred in relation insurance
contracts in force.
Incurred claims comprise bonus and premiums
discounts based on defined claims experience
set prior to the period where the insurance
contract was incepted or sold.
Tryg disaggregates changes in the risk
adjustment for non-financial risk between the
insurance service result and insurance finance
income or expenses. Changes relating to the risk
adjustment for non-financial risk are included in
the insurance service result while discounting
effects are included in Net finance income from
reinsurance contracts.
Insurance acquisition cash flows
Insurance acquisition cash flows Insurance
acquisition cash flows arise from the costs of
selling, underwriting and starting a group of
insurance contracts (issued or expected to be
issued) that are directly attributable to the
portfolio of insurance contracts to which the
group belongs.
Tryg chooses to expense insurance acquisition
cash flows as they occur for contracts measured
under the PAA, if the coverage period for each
contract in a group is one year or less.
Other insurance service expenses
Other insurance service expenses represent
administration expenses to administrate
insurance contracts in force. Administration
expenses are all other incurred expenses
attributable to the administration of existing
contracts. Expenses relating to future contracts
or expenses that cannot be directly attributed to
the portfolio of insurance contracts e.g. some
development and training costs are expensed as
‘Other costs’ as they incur.
The shares are recognised at market value and
are accrued from up to four years.
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.
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 expected value of
the shares will be expensed over the
performance 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 remeasured. The
remainder is treated as a liability and is
remeasured 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
programme.
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 until the end of the
deferral period (the transfer date), where the
holder receive free shares.
Matching shares
Matching shares have been allocated to some
employees 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 accrued 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 acquisition under staff
expenses with a balancing entry directly 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.
Net expense from reinsurance contracts held
Income and expenses from reinsurance
contracts are presented separately from
revenue and expenses from insurance
contracts. Income and expenses from
reinsurance contracts, other than insurance
finance income or expenses, are presented in
Annual report 2023 | Tryg A/S | 165
Notes
one line as ‘net expenses from reinsurance
contracts’ in the insurance service result.
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 operations less property management
expenses.
Interest and dividends represent interest earned
and dividends received during the financial year
and are recognised as a separate line item in the
income statement. Realised and unrealised
investment gains and losses, including gains and
losses on derivative financial instruments, value
adjustment of investment property, foreign
currency translation adjustments and the effect
of movements in the yield curve used for
discounting, are recognised 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 Kapitalforeningen
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.
Insurance finance income and expenses
Insurance finance income and expenses
comprise changes in the carrying amounts of
groups of insurance and reinsurance contracts
and arising from the effects of the time value of
money, financial risk and changes therein.
Moreover, Insurance finance income and
expenses comprise changes in the carrying
amounts risk adjustment for non financial risks
and arising from the effects of the time value of
money, financial risk and changes therein.
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 and depreciations
of intangibles assets identified 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, insurance
technical interest net of reinsurance, investment
return after insurance technical interest, other
income and costs and tax in respect of the
discontinued 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 between the cost of the
undertaking and the fair value of acquired
identifiable assets, liabilities and contingent
liabilities at the time of acquisition. Goodwill is
allocated to the cash-generating units under
which management manages the investment
and is recognised under intangible assets.
Goodwill is not amortised but is tested for
impairment at least once per year.
Trademarks and customer relations
Trademarks and customer relations have been
identified as intangible assets on acquisition.
The intangible assets are recognised at fair value
at the time of acquisition 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
development 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 maximum of 8 years. The
amortisation basis is reduced by any
Financial statements - Contents
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
accumulated impairment losses. Cost
encompasses the purchase price and costs
directly attributable to the acquisition 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 economic 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 income statement. When
revalued assets are sold, the amounts included
in the revaluation reserves are transferred to
retained earnings.
Annual report 2023 | Tryg A/S | 166
Notes
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 throughout 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
corresponding 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 consideration in the contract to each lease
component based on their relative stand-alone
prices.
Right-of-use asset (ROU asset) and lease liability
are recognised 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
commencement date
• any initial direct cost incurred
• estimate of costs to dismantle and remove
the underlying 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 value of the lease payments that are not
paid at the commencement 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. All
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 value is based on transaction prices for
similar properties, adjusted for any differences
in the nature, location or maintenance condition
of specific assets. If this information is not
available, the Group uses alternative valuation
methods such as discounted cash flow
projections and recent prices in the market.
The fair value is calculated on the basis of
market-specific 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 subsequently adjusted with the
capitalised value of the return on prepayments
and deposits and adjustments for specific
property issues such as vacant premises or
special tenant terms and conditions. Cf. note 14.
Changes in fair values are recorded in the
income statement.
Impairment test for intangible assets, property
and operating equipment
Operating equipment and intangible assets are
assessed at least once per year to ensure that
the depreciation 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 performed if
impairment has been demonstrated.
Goodwill is tested annually for impairment, or
more often if there are indications of
impairment, and impairment 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
subsidiaries are recognised and measured using
the equity method. The parent company’s share
of the enterprises’ profits or losses after
elimination of unrealised intra-group profits and
losses is recognised in the income 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 recognised at zero
Financial statements - Contents
value. Any receivables from these enterprises
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 value 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
translation of the items in the income statement
using average exchange rates for the period
unless they deviate significantly from the
transaction day exchange rates. Income and
costs in domestic enterprises denominated in
foreign currencies are translated using the
exchange rates applicable on the transaction
date.
Statement of financial position items of foreign
subsidiaries are translated using the exchange
rates applicable 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 significant 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
Annual report 2023 | Tryg A/S | 167
Notes
Financial statements - Contents
using the equity method and the carrying
amount of the investment represents the
Group’s proportionate share of the enterprises’
net assets. Significant 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 intra-group profits and
losses.
Associates with a negative net asset value are
measured at zero value. If the Group has a legal
or constructive obligation to cover the
associate’s negative balance, such obligation is
recognised under liabilities.
Recognition and classification
of financial instruments
Following implementation of IFRS 9 financial
instruments are classified as follows:
As at 1 January 2023, financial instruments
were classified as follows based on the Group's
business models:
• The asset is held to collect cash flows from
payments of principal and interest (hold to
collect business model). Measured at
amortised cost after initial recognition.
• 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 value with changes
recognised through other comprehensive
income with reclassification to the income
statement on realisation of the assets.
• Other financial assets are measured at fair
value through profit or loss. These include
assets managed on a fair value basis, held in
the trading book or assets, where contractual
cash flows do not solely comprise interest
and principal of the receivable. It is also still
possible to measure financial assets at fair
value with value adjustment through profit or
loss, when such measurement significantly
reduces or eliminates an accounting
mismatch that would otherwise have
occurred on measurement of assets and
liabilities or recognition of losses and gains
on different bases.
• Generally, financial liabilities are measured at
amortised cost after initial recognition.
For the first two categories, financial assets
must be held within a business model whose
objective is to hold assets to collect contractual
cash flows representing payments of principal
and interest etc combined with limited sales
activity.
If this is not the objective of the business model,
the financial assets will be placed in a category,
which is subject to fair value adjustment
through profit or loss. Financial assets, which, if
measured at amortised cost fair fair value with
changes recognised through other
comprehensive income would result in a
accounting mismatch, are also recognised in
this category.
The Group's financial assets and business
models have been reviewed to ensure correct
classification thereof. The review included an
assessment of whether collecting cash flows is a
significant element, including whether the cash
flows represent solely payments of principal and
interest.
Tryg does not have a business model that
implies recognising fair value adjustments in
other comprehensive income. Thus, bank loans
and deposits are essentially still measured at
amortised cost.
Financial assets and liabilities measured at
fair value through profit or loss
A financial asset is attributable to this category
• if the asset is not held within a business
model whose objective is to hold assets to
collect cash flows representing payments of
principal and interest and which has limited
sales activity
• if measurement of the asset at amortised
cost or at fair value through other
comprehensive income would result in an
accounting mismatch.
Equity and bond portfolios are generally
measured at fair value through profit or loss.
The business model behind the bond portfolio is
not intrinsically based on collecting cash flows
from payments of principal and interest but is
based on, for example, short-term trading
activity and investments focused on cost
minimisation, where contractual cash flows do
not constitute a central element but follow
solely from the investment.
Equity instruments are not based on cash flows
which comprise payments of principal and
interest. Therefore, these instruments are
measured at fair value with value adjustment
through profit or loss.
Derivative financial instruments (derivatives),
which are assets or liabilities, are measured at
fair value through profit or loss, unless they are
classified as hedging instruments.
The investment portfolio is divided into a match
portfolio 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 devel
opments on the insurance provisions. The free
portfolio is invested in different asset classes
with a view to obtaining the best risk-adjusted
return.
Realised and unrealised profits and losses that
may arise because of changes in the fair value
for the category 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 expired, 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 exchange, or for which no
stock exchange price is quoted 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
Annual report 2023 | Tryg A/S | 168
Notes
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,
including changes in share prices, foreign
exchange rates, interest rates and inflation.
Forward exchange contracts and currency
swaps are used for currency hedging of
portfolios of shares, bonds, hedging of foreign
entities and insurance statement of financial
position items. Interest rate derivatives in the
form of futures, forward contracts, swaps and
FRAs are used to manage 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 financial position at fair value.
Positive fair values of derivatives are recognised
as derivative financial instruments under assets.
Negative fair values of derivatives are
recognised under derivative financial
instruments under liabilities. Positive and
negative values are only offset when the
company is entitled or intends to make net
settlement of more financial instruments.
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 instrument 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 qualify as
net investment hedges in foreign entities and
which provide effective currency hedging of the
net investment are recognised in other
comprehensive income. The tangible net asset
value of the foreign entities estimated at the
beginning of the financial year is hedged
90-100% by entering into short-term forward
exchange 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.
Reinsurance contract assets
Portfolios of reinsurance contracts that are
assets and those that are liabilities, are
presented separately in the statement of
financial position. Any assets or liabilities
recognised for cash flows arising before the
recognition of the related group of contracts are
included in the carrying amount of the related
portfolios of contracts.
Expected cash flows 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 and changes due to
changes in the yield curve or foreign exchange
rates are recognised as ‘Net finance income
from reinsurance contracts’.
The effect of Changes in expected cash flows
that result from changes in the risk of non-
performance by the issuer of a reinsurance
contract held is recognised separately and
disclosed in note 17.
Receivables
Receivables primarily contain accounts
receivable in connection with property.
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 less impairment
provisions at the statement of financial position
date. Reverse repurchase lending to credit
institutions are recognised and measured at
amortised cost, and the return is recognised as
interest income in the income statement.
Impairment charges for loans, advances
and receivables
Impairments corresponding to expected credit
losses are based on a classification of the
individual loans in stages, reflecting the changes
in credit risk since initial recognition.
Financial statements - Contents
• Stage 1 covers loans and advances etc
without significant increase in credit risk
since initial recognition. For this category,
impairment provisions at initial recognition
are made corresponding to the expected
credit losses over a period of 12 months for
lending at amortised cost. If there is an
insignificant change in credit risk, the
impairment provisions will be adjusted but
the exposure will be kept at stage 1.
• Stage 2 covers loans and advances etc with
significant increase in credit risk since initial
recognition. For this category, impairment
provisions are made corresponding to the
expected credit losses over the time-to-
maturity.
• Stage 3 covers loans and advances that are
credit impaired, and which have been subject
to individual provisioning on the specific
assumption that the customers will default
on their loans. For this category, impairment
provisions are also made corresponding to
the expected credit losses over the time-to-
maturity.
This model is applied to all instruments in the
scope of the impairment of IFRS 9 measured at
amortised cost.
Tryg has applied the methodology used under
Solvency II to derive the expected credit loss on
a single name exposure. Further, determining
the expected credit loss is subject to
management judgement.
At the statement of financial position date Tryg
has no exposures covered by Stage 2 or Stage 3.
Annual report 2023 | Tryg A/S | 169
Notes
Prepayments and accrued income
Prepayments include expenses paid in respect
of subsequent financial years and interest
receivable. Accrued underwriting commission
relating to the sale of insurance products is also
included.
Equity
Share capital
Shares are classified as equity when there is no
obligation to transfer cash or other assets. Costs
directly attributable 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.
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 income statement. The hedging of the
currency risk in respect of foreign entities is also
offset in other comprehensive income in respect
of the part that concerns the hedge.
Contingency fund reserves
Contingency fund reserves are recognised as
part of other reserves 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 Swedish provisions comprise
contingency fund provisions. Deferred tax on
the Norwegian and Swedish contingency fund
reserves is allocated.
Additional Tier 1 capital
Perpetual Additional Tier 1 capital with
discretionary payment of interest and principal
is recognised as equity for accounting purposes.
Correspondingly, interest expenses relating to
the issue are recorded as dividend for
accounting purposes. Interest is deducted from
equity at the time of payment.
Dividends
Proposed dividend is part of equity until
payment.
Own shares
The purchase and sale sums of own shares and
dividends thereon are taken directly to retained
earnings under equity. Own shares include
shares acquired for incentive programmes and
share buyback programme.
Proceeds from the sale of own shares in
connection with the matching shares are taken
directly to equity.
Subordinated loan capital
Subordinated loan capital is recognised initially
at fair value, net of transaction costs incurred.
Subordinated loan capital is subsequently stated
at amortised cost; any difference between the
proceeds (net of transaction 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 thereof) which would
otherwise be payable on any interest payment
date.
In case interest payments are cancelled Tryg
shall, in general, solicit interest from new
investors for the purchase
and subscription of replacement securities and
redeem the original notes at a price equal to
their outstanding principal amount together
with any accrued interest and accrued and
unpaid interest. Accordingly, perpetual
additional capital with discretionary payment of
interest and principal is recognised as debt.
Insurance contracts
Insurance and reinsurance contract
classification
Contracts under which Tryg accepts significant
insurance risk are classified as insurance
contracts. Contracts held by Tryg under which it
transfers significant insurance risk related to
underlying insurance contracts are classified as
reinsurance contracts. Insurance and
reinsurance contracts also expose the Group to
financial risk, but does not include any savings
contracts.
To a limited extend Tryg also issues reinsurance
contracts to compensate other insurers for
Financial statements - Contents
claims arising from one or more insurance
contracts issued by them.
Insurance and reinsurance contracts
accounting treatment
Tryg assesses its non-life insurance and
reinsurance products to determine whether
they contain distinct components which must
be accounted for under another IFRS instead of
under IFRS 17. After separating any distinct
components, Tryg applies IFRS 17 to all
remaining components of the insurance
contract. Currently, Tryg’s products do not
include any distinct components that require
separation.
Some reinsurance contracts issued contain
profit commission arrangements. Under these
arrangements, there is a minimum guaranteed
amount that the policyholder will always receive
– either in the form of profit commission, or as
claims, or another contractual payment
irrespective of the insured event happening. The
minimum guaranteed amounts have been
assessed to be highly interrelated with the
insurance component of the reinsurance
contacts and are, therefore, non-distinct
investment components which are not
accounted for separately.
Aggregation and recognition
Insurance contracts are aggregated into groups
for measurement purposes. Groups of
insurance contracts are determined by
identifying portfolios of insurance contracts,
each comprising contracts subject to similar
risks and managed together, and dividing each
portfolio into annual cohorts (i.e. by year of
Annual report 2023 | Tryg A/S | 170
Notes
issue) and each annual cohort into three groups
based on the profitability of contracts:
• any contracts that are onerous on initial
recognition;
• Tryg recognises an onerous group of
underlying insurance contracts if Tryg
entered into the related reinsurance contract
held at or before that date.
Tryg issues non-life insurance contracts with a
short period of insurance covers. Tryg apply the
premium allocation model to all insurance
contracts issued.
• any contracts that, on initial recognition,
• Reinsurance contracts acquired is
have no significant possibility of becoming
onerous subsequently; and
• any remaining contracts in the annual cohort.
An insurance contract issued is recognised from
the earliest of:
• the beginning of its coverage period;
• when the first payment from the policyholder
becomes due or, if there is no contractual
due date, when it is received from the
policyholder; and
• when facts and circumstances indicate that
the contract is onerous.
An insurance contract acquired in a transfer of
contracts or a business combination is
recognised on the date of acquisition.
Reinsurance contracts
Groups of reinsurance contracts are established
such that each group comprises a single
contract.
A group of reinsurance contracts is recognised
on the following date.
• Reinsurance contracts held that provide
proportionate coverage is recognised at the
date on which any underlying insurance
contract is initially recognised. This applies to
the Group’s quota share reinsurance
contracts.
• Other reinsurance contracts held is
recognised at the beginning of the coverage
period of the group of reinsurance contracts.
recognised at the date of acquisition.
Contract boundary
Contract boundary define the cash flows within
the boundary of each insurance contract.
Cash flows are within the contract boundary if
they arise from substantive rights and
obligations that exist during the reporting period
in which Tryg can compel the policyholder to
pay premiums or has a substantive obligation to
provide services (including insurance coverage
and any investment services).
A substantive obligation to provide services
ends when:
• Tryg has the practical ability to reassess the
risks of the particular policyholder and can
set a price or level of benefits that fully
reflects those reassessed risks; or
• Tryg has the practical ability to reassess the
risks of the portfolio that contains the
contract and can set a price or level of
benefits that fully reflects the risks of that
portfolio, and the pricing of the premiums up
to the reassessment date does not take into
account risks that relate to periods after the
reassessment date.
The reassessment of risks considers only risks
transferred from policyholders to Tryg, which
may include both insurance and financial risks,
but exclude lapse and expense risks.
Cash flows are within the contract boundary of a
reinsurance contract held if they arise from
substantive rights and obligations that exist
during the reporting period in which Tryg is
compelled to pay amounts to the reinsurer or
has a substantive right to receive services from
the reinsurer.
A substantive right to receive services from the
reinsurer ends when the reinsurer:
• has the practical ability to reassess the risks
transferred to it and can set a price or level of
benefits that fully reflects those reassessed
risks; or
• has a substantive right to terminate the
coverage.
The contract boundary is reassessed at each
reporting date to include the effect of changes in
circumstances.
Measurement, insurance contracts
Tryg uses the premium allocation approach to
simplify the measurement of groups of
insurance contracts.
On initial recognition of each group of contracts,
the carrying amount of the liability for remaining
coverage is measured at the premiums received
on initial recognition. Tryg has chosen to
expense insurance acquisition cash flows when
they are incurred.
Financial statements - Contents
The coverage period is defined as the period
when an insured event can occur.
Subsequently, the carrying amount of the
liability for remaining coverage is increased by
any premiums received and decreased by the
amount recognised as insurance revenue for
services provided. Services is usually provided
based on passage of time.
Tryg expects that the time between providing
each part of the services and the related
premium due date is no more than a year.
Accordingly, Tryg has chosen not to adjust the
liability for remaining coverage to reflect the
time value of money and the effect of financial
risk.
If at any time during the coverage period, facts
and circumstances indicate that a group of
contracts is onerous, then the Group recognises
a loss in profit or loss and increases the liability
for remaining coverage to the extent that the
current estimates of the fulfilment cash flows
that relate to remaining coverage exceed the
carrying amount of the liability for remaining
coverage.
The fulfilment cash flows are discounted (at
current rates)(see below).
Claims and claims handling costs are expensed
in the income statement as incurred based on
the estimated future cash flows to policyholders
or third parties to fulfil the obligations toward
policyholders. Cf. section 2.4 above, claims
include direct and indirect claims handling costs
that arise from events that have occurred up to
Annual report 2023 | Tryg A/S | 171
Notes
the statement of financial position date even if
they have not yet been reported to the Group.
external factors (such as court decisions). The
provisions include claims handling costs.
Liability for Incurred claims is measured as the
total of the expected fulfilment cash flows,
which comprise estimates of future cash flows,
adjusted to reflect the time value of money and
the associated financial risks, and a risk
adjustment for non-financial risk. The fulfilment
cash flows of a group of insurance contracts do
not reflect the Group’s non-performance risk.
The risk adjustment for non-financial risk for the
liability for incurred claims is determined
separately from the other estimates and is the
compensation required for bearing uncertainty
about the amount and timing of the cash flows
that arises from non-financial risk. The risk
adjustment is based on statistical methods (cost
of capital) and the disclose of the confidence
level corresponding to the results of that
technique is in note 21.
Tryg disaggregates the change in the risk
adjustment for non-financial risk between the
insurance service result and the effect of
discounting in insurance finance income or
expenses.
Tryg recognises the liability for incurred claims
of a group of insurance contracts at the amount
of the fulfilment cash flows relating to incurred
claims. The future fulfilment cash flows are
discounted (at current rates).
Fulfilment cash flows are estimated using the
assessments of individual cases reported to the
Group and statistical analyses of claims incurred
but not reported and the expected ultimate cost
of more complex claims that may be affected by
Liability for incurred claims is discounted to
reflect the time value of money and the
associated financial risks at the reporting date.
discount rate reflects the yield curve in the
appropriate currency for instruments that
expose the holder to no or negligible credit risk,
adjusted to reflect the liquidity characteristics of
payment of future incurred claims.
Assumptions and interdependencies
Level of aggregation and the evaluation of
contract boundary are significant assumptions
as these define the use of the premium
allocation model’s simplified measurement
model.
Discounting affects in particular long tailed
claims where payments may be made as
annuity payments or where the assessment of
the actual claim takes time. This is the case for
claims in motor liability, professional liability,
workers’ compensation and personal accident
and health insurance classes.
Liability for incurred claims are determined for
each line of business based on actuarial
methods. Where such business 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, Bornhuetter-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 accident years in which the previous run-off
provides insufficient information about the
future run-off performance.
In some instances, historic data used in the
actuarial models is not necessarily predictive for
the expected future development of claims. This
is the case with legislative changes. In this
situation the a priori estimate used for premium
increases is used to reflect the expected
increase in claims based on the new legislation.
This estimate is used for determining the
change in the level of claims. The estimate is
maintained until new loss history materialises
which can be used for re-estimation.
Several assumptions and estimates underlying
the calculation of the liability for incurred claims
are interdependent. 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 inflation assumptions are used, with
annuities for the insured being indexed based on
the workers’ compensation 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
index.
For other lines of business, with implicit inflation
assumptions, the actuarial models 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
immediately as a consequence of inflation
Financial statements - Contents
changes to the extent that such changes affect
the interest rate.
Other correlations are not deemed to be
significant.
Measurement, reinsurance contracts
The Group applies the same accounting policies
to measure a group of reinsurance contracts,
adapted where necessary to reflect features that
differ from those of insurance contracts.
If a loss-recovery component is created for a
group of reinsurance contracts measured under
the PAA, then Tryg adjusts the carrying amount
of the asset for remaining coverage.
Risk adjustment for non-financial risk for
reinsurance contracts are modelled using
similar statistical models as for direct insurance
contract so that it represents the amount of risk
being transferred by the holder of the group of
reinsurance contracts to the issuer of those
contracts.
Presentation
Portfolios of insurance contracts that are assets
and those that are liabilities, and portfolios of
reinsurance contracts that are assets and those
that are liabilities, are presented separately in
the statement of financial position. Any assets or
liabilities recognised for cash flows arising
before the recognition of the related group of
contracts are included in the carrying amount of
the related portfolios of contracts.
Annual report 2023 | Tryg A/S | 172
Notes
Employee benefits
Pension obligations
The Group operates various pension schemes.
The schemes are funded through contributions
to insurance companies or trustee-administered
funds. In Norway, the Group operated a defined-
benefit plan which was closed at 01 January
2020. In Denmark, the Group operates a
defined-contribution plan. A defined-
contribution plan is a pension plan under which
the Group pays fixed contributions into a
separate entity (a fund) and will have no legal or
constructive obligation 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. Försäkringsbranschens Pensionskassa
(FPK) is unable to provide sufficient information
for the Group to use defined-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
employees 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
future actuarial assumptions related to the
liability, only uncertainty is whether the
employees stays to retirement or not.
Other employee benefits
Employees of the Group are entitled to a fixed
payment when they reach retirement and when
they have been employed with the Group for 25
and for 40 years. The Group recognises this
Financial statements - Contents
liability at the time of signing the contract of
employment.
the temporary difference will not be realised in
the foreseeable future.
and the return is recognised as interest
expenses in the income statement.
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 statistical
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 recognised 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 differences 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 realised against
which the temporary differences can be offset.
Deferred income tax is provided on temporary
differences concerning investments, except
where Tryg controls when the temporary
difference will be realised, and it is probable that
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 estimate by
management of the expenditure required to
settle the present obligation.
Provisions for restructuring are recognised as
obligations when a detailed formal restructuring
plan has been announced prior to or at the
statement of financial 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 provisions.
Debt
Debt comprises debt in connection with direct
insurance and reinsurance, amounts owed to
credit institutions, current tax obligations, debt
to group undertakings 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 is included in other debt. The external
investors share of Kapitalforeningen Tryg Invest
Funds relates to shares, bonds and investment
properties.
Repo deposits from credit institutions are
recognised and measured at amortised cost,
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 beginning and end
of the financial year. No separate cash flow
statement has been prepared for the parent
company 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
payments in connection with the purchase and
sale of intangible 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 related 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
demand deposits.
Other
The amounts in the report are disclosed in
whole numbers 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 2023 | Tryg A/S | 173
Notes
Financial statements - Contents
DKKm
DKKm
32
Transition to IFRS 9 & IFRS 17 at 1 January 2023
32
Transition to IFRS 9 & IFRS 17 at 1 January 2023 (Continued)
Changes opening balance 01.01.23 related to IFRS 17 and
IFRS 9
Assets
Total other financial investment assets
Of which held at fair value through profit or loss
Of which held at amortised cost
Assets from reinsurance contracts
Reinsurers' share of premium provisions
Reinsurers' share of claims provisions
Receivables from policyholders
Receivables from insurance enterprises
Cash at banks and in hand (amortised cost)
Other asset positions
Total assets
Equity and liabilities
Equity
Subordinated loan capital (amortised cost)
Total provisions for insurance contracts
Premium provisions
Claims provisions
Provisions for bonuses and premium discounts
Debt relating to direct insurance
Debt relating to reinsurance
Amounts owed to credit institutions (amortised cost)
Debt relating to repos (amortised cost)
Derivative financial instruments (FVTPL)
Other liability positions
Total equity and liabilities
01.01.23
IFRS 17 &
IFRS 9
70,810
70,616
194
2,823
0
0
2,660
37,095
113,387
42,502
4,154
49,063
1,305
4,287
2,398
9,678
31.12.22
IFRS 4 &
IAS 39
70,386
70,192
194
1,851
264
1,587
1,621
498
2,662
37,094
Change
424
424
0
971
-1,621
-498
-2
1
-726
114,113
-2
0
292
-896
-123
0
0
0
3
42,504
4,154
48,770
7,700
39,227
1,843
896
123
1,305
4,287
2,398
9,676
113,387
-726
114,113
Change in income statement due to IFRS 17
Gross premiums written
Change in premium provisions
Insurance revenue a)
31.12.22
IFRS 17 &
IFRS 9
Change
31.12.22
IFRS 4 &
IAS 39
34,658
157
38,365
3,551
34,814
Insurance technical interest, net of reinsurance
-152
152
Claims paid
Change in claims provisions
Bonus and premium discounts
Acquisition costs and administration expenses
Insurance service expenses a)
-32,156
-4,090
Ceded insurance premiums
Change in reinsurers' share of premium provisions
Reinsurance cover received
Change in the reinsurers' share of claims provisions
Reinsurance commissions and profit participation from
reinsurers
Net expense from reinsurance contracts
-576
146
-22,046
-361
-877
-4,783
-28,067
-1,673
-3
399
325
229
-723
Insurance service result/Technical result
5,636
-542
6,177
a) The reclassification of DKK 3,551m refers to Insurance revenue and Gross claims relating to Claims provisions from
the Trygg-Hansa and Codan Norway acquisition. Incurred claims are now presented as Insurance revenue instead of
Claims. Please refer to note 31 Accounting policy section Acquired portfolios.
Annual report 2023 | Tryg A/S | 174
Notes
DKKm
32
Transition to IFRS 9 & IFRS 17 at 1 January 2023 (Continued)
Change in income statement due to IFRS 17
Investment activities
Profit/loss from associates
Income from investment property
Interest income and dividends
Value adjustments
Interest expenses
Administration expenses in connection with investment
activities
Investment return
Return on insurance provisions
Net finance income from reinsurance contracts
Net finance expenses from insurance contracts
Total investment return
Other income
Other costs
Profit/loss before tax
Tax
Profit/loss on continuing business
Profit/loss on discontinued and divested business
Profit/loss for the year
31.12.22
IFRS 17 &
IFRS 9
-19
48
918
-3,675
-154
-145
-3,028
0
2,621
-34
-441
150
-2,293
3,051
-804
2,247
0
2,247
31.12.22
IFRS 4 &
IAS 39
-19
48
918
-913
-154
-145
-265
-928
0
0
-1,193
150
-2,083
3,051
-804
2,247
0
2,247
Change
0
0
0
-2,763
0
0
-2,763
928
2,621
-34
751
0
-209
0
0
0
0
0
Financial statements - Contents
Financial assets and liabilities
Classification of financial assets and financial liabilities on the date of initial application of IFRS 9
The following table shows the original measurement categories with IAS 39 and the new
measurement categories under IFRS 9 for the Group's financial assets and financial liabilities as
at 1 January 2023.
DKKm
32
Transition to IFRS 9 & IFRS 17 at 1 January 2023 (Continued)
Financial assets
Equity investments
Unit trust units
Bonds
Bonds
Other lending
Original
classification under
IAS 39
New classification
under IFRS 9
Original
carrying
amount
under IAS
39
New
carrying
amount
under
IFRS 9
FVTPL
FVTPL (mandatory)
FVTPL
FVTPL (mandatory)
FVTPL
FVTPL (mandatory)
4,647
8,330
6,328
4,647
8,330
6,328
FVTPL (designated)
FVTPL (designated)
49,472
49,472
Loans and
receivables
Amortised cost
75
1,340
75
1,763
Derivative financial instruments
FVTPL
FVTPL (mandatory)
Reverse repurchase lending
Other receivables
Cash at bank and in hand
Current tax assets
Total financial assets
Financial liabilities
Loans and
receivables
Loans and
receivables
Loans and
receivables
Loans and
receivables
Amortised cost
Amortised cost
194
414
194
414
Amortised cost
2,662
2,660
Amortised cost
854
854
74,316
74,737
Subordinated loan capital
Amortised cost
Amortised cost
4,154
4,154
Amounts owed to credit
institutions
Debt relating to repos
Amortised cost
Amortised cost
Amortised cost
Amortised cost
Derivative financial instruments
FVTPL
FVTPL (mandatory)
Total financial liabilities
1,305
4,287
2,398
1,305
4,287
2,398
12,144
12,144
Annual report 2023 | Tryg A/S | 175
Income and comprehensive income statement
Financial statements - Contents
DKKm
Note
Investment activities
1
Income from subsidiaries
Income from associates
10
2
10
Interest income
Value adjustments
Interest expenses
Administration expenses in connection with investment activities
Total Investment return
3
Other expenses
Parent company
2023
2022
DKKm
Parent company
2023
2022
4,415
2,570
Profit/loss for the period
3,851
2,247
Statement of comprehensive income
0
1
9
-563
-6
3,855
34
5
-18
-365
-5
2,222
-155
-96
Other comprehensive income
Other comprehensive income which cannot subsequently be reclassified
as profit or loss
Actuarial gains/losses on defined-benefit pension plans
Tax on actuarial gains/losses on defined-benefit pension plans
Other comprehensive income which can subsequently be reclassified as
profit or loss
Profit/loss before tax
3,700
2,126
Deferred tax related to receivable balance
Exchange rate adjustments of foreign entities
4
Tax
151
121
Exchange rate adjustments of foreign material associates
Profit/loss for the period
3,851
2,247
Tax on hedging of currency risk in foreign entities
Hedging of currency risk in foreign entities
Proposed distribution for the year:
Dividend
Transferred to reserve for net revaluation according to the equity method
Transferred to retained earnings
4,734
-3,271
2,387
3,851
4,118
163
-2,033
2,247
Total other comprehensive income
Comprehensive income
-2
0
-1
0
-105
0
130
-33
-8
-9
3,842
-2
1
-2
-50
-2,217
52
496
-109
-1,828
-1,830
417
Annual report 2023 | Tryg A/S | 176
Statement of financial position
DKKm
Note Assets
5
6
Equity investments in subsidiaries
Equity investments in associates
Parent company
2023
2022
DKKm
40,156
72,524
20
185
Note Equity and Liabilities
Equity
Total investments in associates and subsidiaries
40,176
72,709
Debt to subsidiaries
Total investment assets
40,176
72,709
Other debt
Total debt
Financial statements - Contents
Parent company
2023
2022
40,351
42,504
211
75
30,331
81
286
30,412
Receivables from subsidiaries
Total receivables
7
Current tax assets
Cash at bank and in hand
Other assets
Total other assets
Total prepayments and accrued income
261
261
151
8
0
159
41
65
65
106
0
1
107
34
Total equity and liabilities
40,637
72,915
8
9
10
11
12
Deferred tax assets
Contractual obligations, contingent liabilities and collateral
Related parties
Reconciliation of profit/loss and equity
Accounting policies
Total assets
40,637
72,915
Annual report 2023 | Tryg A/S | 177
Financial statements - Contents
Statement of changes in equity (parent company)
Total changes in equity in DKKm
Share capital
reserves Retained earnings Proposed dividend
Revaluation
Non-controlling
interest
Equity at 31 December 2022
2023
Profit/loss for the period
Other comprehensive income
Total comprehensive income
Nullification of own shares
Dividend paid
Dividend, own shares
Purchase and sale of own shares
Interest paid on additional Tier 1 capital
Issue of additional Tier 1 capital
Share-based payment
Total changes in equity in 2023
Equity at 31 December 2023
Equity at 31 December 2021
2022
Profit/loss for the period
Other comprehensive income
Total comprehensive income
Dividend paid
Dividend, own shares
Purchase and sale of own shares
Share-based payment
Total changes in equity in 2022
Equity at 31 December 2022
3,273
3,451
34,731
1,047
-3,271
-9
-3,280
-57
987
-2,350
1,102
2,387
2,387
99
135
-2,531
79
169
34,900
4,734
4,734
-4,607
127
1,174
0
-99
-99
3,174
3,273
5,119
39,915
700
163
-1,830
-1,667
0
0
3,273
-1,667
3,451
-2,033
-2,033
38
-3,253
65
-5,183
34,731
4,118
4,118
-3,771
347
1,047
1
0
0
1
1
0
0
1
Total
42,504
3,851
-9
3,842
0
-4,607
135
-2,531
-57
987
79
-2,151
40,351
49,008
2,247
-1,830
417
-3,771
38
-3,253
65
-6,504
42,504
Annual report 2023 | Tryg A/S | 178
Notes (parent company)
DKKm
2023
2022
DKKm
2023
2022
Financial statements - Contents
1
Income from Group undertakings
Tryg Invest A/S
Fordelsselskabet A/S
Scandi JV Co A/S
Tryg Forsikring A/S
18
-24
437
3,984
4,415
20
-23
285
2,287
2,570
5
Equity investments in Group undertakings
Cost
Cost at 1 January
Disposals for the year
Additions for the year
Cost at 31 December
2
3
Value adjustments
Value adjustments only consists of currency adjustments both in 2022 and 2023.
Other expenses
Administration expenses
-155
-155
-96
-96
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 5 in the Tryg Group for a specification of the
audit fee.
Revaluation and impairment to net asset value
Revaluation and impairment at 1 January
Revaluations for the year
Dividend paid
Revaluation and impairment at 31 December
Carrying amount at 31 December
Average number of full-time employees for the year
10
9
Name, registered office and activity
4
Tax
Reconciliation of tax costs
Tax on profit/loss for the year
Difference between Danish tax percent and local tax percent
Tax adjustments, previous years
Tax on permanent differences
-180
23
0
7
-151
106
0
16
0
121
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
Difference between Danish tax percent and local tax percent
Tax adjustments, previous years
Tax on permanent differences
%
25.2
-3.2
0.0
-1.0
21.0
%
22.0
0.0
3.0
0.0
25.0
2023
Tryg Invest A/S, Ballerup
Fordelsselskabet A/S, Ballerup
Scandi JV Co A/S
Tryg Forsikring A/S, Ballerup
2022
Tryg Invest A/S, Ballerup
Fordelsselskabet A/S, Ballerup
Scandi JV Co A/S
Tryg Forsikring A/S, Ballerup
69,061
9,053
3
60,008
-30,021
0
39,043
69,061
3,463
4,680
-7,030
1,113
3,976
686
-1,200
3,463
40,156
72,524
Ownership
share in % Profit/loss
Equity
100
100
100
100
100
100
100
100
18
-24
437
77
6
11
3,984
40,062
20
-23
285
2,287
60
28
30,255
42,182
Annual report 2023 | Tryg A/S | 179
Notes (parent company)
DKKm
2023
2022
DKKm
Financial statements - Contents
6
Equity investments in associates
Cost
Cost at 1 January
Disposals for the year
Cost at 31 December
Revaluations at net asset value
Revaluations at 1 January
Reversed on sale
Value adjustments for the year
Revaluations at 31 December
9
Contractual obligations, collateral and contingent liabilities (continued)
Management believes that the outcome of these disputes will not affect the Group’s
financial position significantly beyond the obligations recognised in the statement of
financial position at 31 December 2023.
10
Related parties
Tryg A/S has no related parties with a controlling influence other than the parent company,
TryghedsGruppen smba. Related parties with a significant influence include the Supervisory Board, the
Executive Board (which is considered Key Management) and their members’ related family.
185
35,898
-165
-35,713
20
185
0
0
0
0
1,154
-1,188
34
0
Carrying amount at 31 December
20
185
Specification of remuneration
7
Current tax assets
Tax receivable at 1 January
Adjustments to previous years
Current tax for the year
Tax paid for the year
Tax receivable at 31 December
8
Deferred tax assets
Capitalised tax losses
Tryg A/S
Tax value of non-capitalised tax losses
Tryg A/S
2023
Supervisory Board
Executive Board
Risk-takers c)
Number of
persons
Base salary
incl. car
allowance
Share-
based
variable
16
7
1
24
12
30
0
41
0
18
0
18
Cash
variable
salary b)
0
10
0
10
Pension
Total
0
8
0
8
12
66
0
77
a) Total expenses recognised in 2023 for matching shares and conditional shares allocated in 2023 and
previous year.
b) Including non-competition clause.
c) Risk-takers in Tryg A/S includes only one employee, wherefore salary and pension is not presented.
The amounts are included in Note 29 for Tryg Group.
106
0
151
-106
151
0
0
-33
16
106
17
106
0
0
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 interest, 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.
Of which retired
Supervisory Board
Executive Board
Risk-takers
Number of
persons
Severance
pay
2
2
0
4
0
14
0
14
Annual report 2023 | Tryg A/S | 180
Financial statements - Contents
Notes (parent company)
DKKm
10
Related parties
Specification of
2022
Supervisory
Executive Board
Risk-takers b)
Number of
persons
Base salary
incl. car
allowance
18
4
1
23
11
31
0
42
Share-based
variable
salary b)
0
16
0
16
Cash
variable
salary
0
0
0
0
Pension
Total
0
8
0
8
11
55
0
66
a) Total expenses recognised in 2022 for matching shares and conditional shares allocated in 2022 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 29 for Tryg Group
Of which retired
Supervisory
Executive Board
Risk-takers
Number of
persons
Severance
pay
4
0
0
4
0
0
0
0
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. If a change of control clause is actioned COO is
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 46,3% (45%) of the total shares in Tryg A/S. This amounts to
TryghedsGruppen smba controlling 47.5% of the shares outstanding in Tryg A/S as at 31
December 2023.
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,
Fordelsselskabet A/S and Tryg Invest A/S.
In 2023 Tryg Forsikring A/S paid Tryg A/S DKK 7,030m and Tryg A/S paid TryghedsGruppen
smba DKK 2,102m in dividends.
Base salary are charges incurred during the financial year. Variable salary includes the charges for
conditional shares, which are recognised over 4 years. The Executive Board and risk-takers are
included in incentive programmes. Please refer to note 5 for more information. The members of the
Supervisory Board in Tryg A/S are paid with a fixed remuneration and are not covered by the
incentive schemes.
Intra-group trading involved
- Providing and receiving services
- Intra-group accounts
- Interest
2023
9
50
-562
2022
1
-30,265
-359
The members of the Executive Board are paid a fixed remuneration, pension, car allowance, special
allowances, and staff benefits.
The variable salary is awarded with 40% cash, and 60% conditional shares which are deferred for
4 years. Please refer to ’Corporate governance’.
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.
Annual report 2023 | Tryg A/S | 181
Notes (parent company)
DKKm
11
Reconciliation of profit/loss and equity
The executive order on application of IFRS Accounting 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 IFRS Accounting Standards and
the rules issued by the Danish FSA.
There is no difference in profit/loss or equity recognised after Danish FSA and IFRS
Accounting Standards.
12
Accounting policies
Please refer to Tryg Group's accounting policies.
Financial statements - Contents
Annual report 2023 | Tryg A/S | 182
Q4 2023 Quarterly outline
Financial statements - Contents
DKKm
Private
Insurance revenue
Insurance service result
Key ratios
Gross claims ratio
Net reinsurance ratio
Claims ratio, net of reinsurance
Gross expense ratio
Combined ratio
Combined ratio exclusive of run-off
Commercial
Insurance revenue
Insurance service result
Key ratios
Gross claims ratio
Net reinsurance ratio
Claims ratio, net of reinsurance
Gross expense ratio
Combined ratio
Combined ratio exclusive of run-off
Corporate
Insurance revenue
Insurance service result
Key ratios
Gross claims ratio
Net reinsurance ratio
Claims ratio, net of reinsurance
Gross expense ratio
Combined ratio
Combined ratio exclusive of run-off
A further detailed version of the presentation can be downloaded from
tryg.com/uk>investor> Downloads>tables
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2022
Q3
2022
Q2
2022
Q1
2022
Q4
2021
Q3
2021
6,203
991
6,180
877
6,070
1,104
6,002
828
6,010
1,027
6,274
1,254
6,228
1,255
4,264
370
4,217
709
4,232
641
70.0
1.6
71.5
12.5
84.0
85.4
71.8
1.4
73.2
12.6
85.8
87.4
69.1
0.1
69.2
12.6
81.8
82.2
72.2
1.4
73.6
12.6
86.2
87.2
67.6
2.8
70.3
12.6
82.9
84.1
66.8
0.1
66.9
13.1
80.0
81.9
65.8
1.3
67.2
12.7
79.9
81.5
76.8
1.8
78.6
12.7
91.3
92.8
71.0
1.6
72.5
10.6
83.2
85.4
70.6
1.7
72.3
12.6
84.8
86.8
2,315
623
2,304
463
2,286
523
2,273
401
2,306
414
2,354
481
2,319
477
1,429
1,370
82
40
1,351
211
56.0
0.3
56.2
16.9
73.1
77.5
57.3
7.3
64.6
15.3
79.9
84.0
65.9
-4.0
61.8
15.3
77.2
80.8
61.4
5.1
66.5
15.9
82.3
83.9
70.4
-4.7
65.7
16.4
82.0
87.5
61.1
3.4
64.5
15.1
79.6
83.6
65.2
-1.7
63.5
16.0
79.4
86.0
68.4
9.3
77.8
16.5
94.3
86.7
72.7
5.0
77.7
19.4
97.1
97.4
61.7
7.1
68.9
15.5
84.4
86.6
879
41
865
172
844
131
914
246
904
30
917
54
934
289
876
-95
854
-49
870
20
69.0
14.3
83.3
12.1
95.4
105.9
54.6
12.1
66.8
13.3
80.1
93.9
116.7
-44.8
71.9
12.6
84.4
106.2
42.0
19.9
61.9
11.2
73.1
86.4
75.0
6.6
81.5
15.1
96.6
95.9
74.4
7.4
81.9
12.2
94.1
101.2
51.4
6.5
57.9
11.2
69.1
86.0
100.8
-1.3
99.6
11.3
110.8
101.8
91.6
0.5
92.1
13.7
105.8
102.7
78.4
7.8
86.2
11.5
97.7
93.5
Annual report 2023 | Tryg A/S | 183
Q4 2023 Quarterly outline
Financial statements - Contents
DKKm
Other a)
Insurance revenue
Insurance service result
Tryg total
Insurance revenue
Insurance service result
Investment return
Other income and costs
Profit/loss before tax
Tax
Profit/loss
Key ratios
Gross claims ratio
Net reinsurance ratio
Claims ratio, net of reinsurance
Gross expense ratio
Combined ratio
Combined ratio exclusive of run-off
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2022
Q3
2022
Q2
2022
Q1
2022
Q4
2021
Q3
2021
411
0
447
0
521
0
610
0
749
0
1,010
1,792
0
0
0
0
0
0
0
0
9,808
1,654
146
-411
1,389
-258
1,129
66.4
2.4
68.9
13.5
82.4
85.4
9,797
1,513
265
-553
1,225
-311
914
66.6
3.9
70.5
13.3
83.8
87.1
9,722
1,759
53
-583
1,229
-307
922
72.7
-5.0
67.6
13.3
80.9
84.1
9,799
1,474
167
-455
1,187
-302
885
66.5
4.2
70.7
13.3
84.0
86.2
9,969
1,472
549
-644
1,377
-296
1,081
69.0
1.3
70.3
13.8
84.0
86.1
10,555
11,273
6,569
6,441
6,452
1,785
2,021
-203
-618
964
-336
628
66.2
1.6
67.8
13.5
81.3
84.2
-948
-566
507
-77
430
64.3
1.1
65.4
13.3
78.7
83.0
358
161
-315
204
-95
109
78.2
3.0
81.2
13.3
94.6
92.6
700
958
-200
1,458
-85
1,370
74.1
2.1
76.2
12.9
89.1
90.3
872
630
-301
1,201
-165
1,037
69.8
3.7
73.4
13.0
86.5
87.7
a) Amounts relating to Trygg-Hansa and Codan Norway acquisitions. Please refer to note 4 and Accounting
policies
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Annual report 2023 | Tryg A/S | 184
Q4 2023 Quarterly outline
DKKm
Danish general insurance
Insurance revenue
Insurance service result
Run-off gains/losses, net of reinsurance
Key ratios
Gross claims ratio
Net reinsurance ratio
Claims ratio, net of reinsurance
Gross expense ratio
Combined ratio
Run-off, net of reinsurance (%)
Number of full-time employees, end of period
Q4
2023
Q4
2022
DKKm
Norwegian general insurance
NOK/DKK, average rate for the period
4,434
4,115
Insurance revenue
761
55
69.1
1.1
70.2
12.6
82.8
-1.2
517
25
74.7
0.0
74.6
12.8
87.4
-0.6
Insurance service result
Run-off gains/losses, net of reinsurance
Key ratios
Gross claims ratio
Net reinsurance ratio
Claims ratio, net of reinsurance
Gross expense ratio
Combined ratio
Run-off, net of reinsurance (%)
Financial statements - Contents
Q4
2023
Q4
2022
64.25
2,014
96
56
71.66
2,137
278
96
75.2
6.5
81.7
13.6
95.2
-2.8
63.8
8.3
72.2
14.8
87.0
-4.5
3,423
3,345
Number of full-time employees, end of period
1,350
1,344
Annual report 2023 | Tryg A/S | 185
Q4 2023 Quarterly outline
DKKm
Swedish general insurance
SEK/DKK, average rate for the period
Insurance revenue
Insurance service result
Run-off gains/losses, net of reinsurance
Key ratios
Gross claims ratio
Net reinsurance ratio
Claims ratio, net of reinsurance
Gross expense ratio
Combined ratio
Run-off, net of reinsurance (%)
Number of full-time employees, end of period
Other European countries a)
Insurance revenue
Insurance service result
Run-off gains/losses, net of reinsurance
Number of full-time employees, end of period
Q4
2023
64.33
2,875
790
166
56.9
0.8
57.7
14.8
72.5
-5.8
Q4
2022
68.18
2,911
687
70
61.7
0.4
62.1
14.3
76.4
-2.4
DKKm
Other b)
Insurance revenue
Insurance service expenses
Insurance service result
Tryg (total)
Insurance revenue
Insurance service result
Investment return
Other income and costs
Profit/loss before tax
Run-off gains/losses, net of reinsurance
1,973
1,781
Key ratios
74
7
4
59
56
-10
2
49
Gross claims ratio
Net reinsurance ratio
Claims ratio, net of reinsurance
Gross expense ratio
Combined ratio
Run-off, net of reinsurance (%)
Number of full-time employees, end of period
Financial statements - Contents
Q4
2023
411
-411
0
9,808
1,654
146
-411
1,389
281
66.4
2.4
68.9
13.5
82.4
-3.0
Q4
2022
749
-749
0
9,969
1,472
549
-644
1,377
192
69.0
1.3
70.3
13.8
84.0
-2.1
6,805
6,518
Annual report 2023 | Tryg A/S | 186
Group chart
Financial statements - Contents
TryghedsGruppen smba
(46%)
Other shareholders
(54%)
Fordels-
selskabet A/S
Tryg
Invest A/S
Tryg A/S
Tryg Forsikring A/S
Scandi JV Co A/S
Scandi JV Co 2 A/S
(50%)
Scandi Co 3 A/S
Tryg Forsikring
(Branch Germany)
Tryg Forsikring
(Branch Finland)
Trygg-Hansa
Försäkring
(Branch Sweden)
Tryg Forsikring
inkl. Enter
(Branch Norway)
Tryg
Livsforsikring A/S
Holmia
Livförsäkring AB
(Sweden)
Tryg
Ejendomme A/S
Respons
Inkasso AS
(Norway)
Tryg Forsikring
(Branch Austria)
Tryg Forsikring
(Branch UK)
Tryg Nederland
(Branch The
Netherlands)
Tryg Forsikring
(Branch Belgium)
Tryg Forsikring
(Branch Schweiz)
Tryg Forsikring
(Branch Ïreland)
Forsikrings-
Aktieselskabet
Alka Liv II
Kapitalforeningen
Tryg Invest Funds
(82%)
Undo
Forsikringsagentur
A/S
Group chart at 1 January 2024. Companies and branches are wholly owned
by Danish owners and domiciled in Denmark, unless otherwise stated.
Company
Branch
Annual report 2023 | Tryg A/S | 187
Glossary, key ratios and alternative
performance measures
Financial statements - Contents
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 occupational pension funds,
and also comply with ‘Recommendations & Ratios’ issued by the CFA Society Denmark.
Claims ratio, net of reinsurance
Gross claims ratio + net reinsurance ratio.
Dividend per share
Market price/net asset value
Proposed dividend
Share price
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 nominal 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.
Number of shares at year-end
Net asset value per share
Earnings per share
Net asset value per share
Profit or loss for the year
Average number of shares
Equity at year-end
Number of shares at year-end
Earnings per share of continuing business
Net reinsurance ratio
Diluted earnings from continuing business
after tax
Net expense from reinsurance contracts x 100
Diluted average number of shares
Insurance revenue
Gross claims ratio
Gross claims x 100
Insurance revenue
Gross expense ratio without adjustment
Gross insurance operating costs x 100
Insurance revenue
Insurance revenue
Calculated as insurance revenue adjusted for
change in gross premium provisions.
Norwegian general insurance
Comprises Tryg Forsikring A/S, Norwegian
branch.
Other insurance
Comprises Finnish, Dutch, Austrian, Swiss,
Belgian, German, United Kingdom and credit &
surety insurance and amounts relating to one-
off items and reclassification relating to
business combinations, from RSA Scandinavia
transaction.
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
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.
Annual report 2023 | Tryg A/S | 188
Solvency II
Solvency requirements for insurance companies
issued by the EU Commission is the regulatory
framework that the Group operates under.
Weather claims, net of reinsurance
Weather claims, net of reinsurance, as
calculated by the Tryg Group, represents:
Solvency ratio
Ratio between own funds and capital
requirement.
Weather claims, net of reinsurance, is defined as
claims related to storm, cloudbursts, natural
perils and winter, adjusted for reinsurance.
Swedish general insurance
Comprises Tryg Forsikring A/S, Swedish branch
Weather claims, net of reinsurance
Insurance revenue
Total reserve ratio
Reserve ratio, claims provisions + premium
provisions divided by insurance revenue
Run-off, net of reinsurance
Run-off, net of reinsurance, as calculated by the
Tryg Group, represents
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 investment return in the
income statement.
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
Insurance revenue
Run-off, net of reinsurance
Insurance revenue
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:
(Insurance revenue including Trygg-Hansa
and Codan Norway pro-forma in year X -
Insurance revenue including Trygg-Hansa
and Codan Norway pro-forma in year X-1)
Insurance revenue 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
Financial statements - Contents
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 2023 | Tryg A/S | 189
Disclaimer
Certain statements in this financial 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,
financial 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 financial
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
uncertainties 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 Annual report 2023 in the
chapter of Capital and risk management on
page 32, and in Note 1 on page 108 for a
description of some of the factors which may
affect the Group’s performance or the
insurance industry.
Financial statements - Contents
Annual report 2023 | Tryg A/S | 190