Analyst Day19 June 2017 Follow us on Twitter: @TrygIR

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Introduction: Morten Hübbe, CEO

Recent financial development: Christian Baltzer, CFO

Cyber insurance: Ulrik Andersson, Special Risk Director

Innovation/The Camp: Lars Bonde, COO and Christian Visti Larsen, CEO of NewBanking

Tryg Garanti: Mads Løgstrup, Managing Director Tryg Garanti

Concluding remarks: Morten Hübbe, CEO

Agenda

Front page slide

Recent financial developmentChristian Baltzer, CFO

50

60

70

80

90

100

50

60

70

80

90

100

75.5

55

60

65

70

75

80

Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17

Underlying Claims ratio, net

50

55

60

65

70

75

Underlying claims ratio at same level as Q1 2016

4

Claims ratio, net (Commercial DK & NO)

Claims ratio, net (Sweden)

Group

Claims ratio, net (Corporate)

Private (DK & NO)

Underlying development is adjusted for large claims, weather claims, run-off and interest.

Q1-16: 76.4+3.4-0.0-4.5+0.2=75.5 Q1-17: 73.7+4.5-0.0-3.0+0.3=75.5

77.0

60

65

70

75

80

Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17

Underlying Claims ratio, net

77.0

Group underlying Claims ratio at 77.0% in line with Q1 2016

Private underlying Claims ratio at 75.5% also in line with Q1 2016

Corporate & Sweden underlying claims ratio developed favourably

“Expected FY 2017 underlying claims ratio better than FY 2016”

Underlying development is adjusted for run-off, large claims, weather claims and interest.

Q1-16: 72.0+8.6-1.0-3.3+0.7=77.0 Q1-17 72.9+6.4-1.1-2.3+1.1=77.0

75.5

4,076

3,913

3,703

3,599

3,3593,264 3,281

2011 2012 2013 2014 2015 2016 Q1 2017

313

171

9861

305

169107

61

Private Commercial Corporate Sweden

Q1 2017 Q1 2016

On track to meet the 2017 expense ratio target

5

FTE - Development

15.1

14.4

15.6 15.3

14.9

14.8

14.6

15.315.7

2013 2014 2015 2016 Q1 2016 Q1 2017

Expense ratio

Nominal costs in business areas

As reported Adjusted for one-offs

Efficiency programme up until 2017 (DKKm)

100 105150 145

250

45

175

388395

5060

7565

125

25

2012 2013 2014 Target2015

2015 Target2016

2016 Target2017

2017

Expense Claims

10,0379,850

605 -452-2 -49 86

5,800

6,800

7,800

8,800

9,800

10,800

11,800

Ow

n F

unds

Q4 '16

Results

Q1 '17

Cash d

ivid

end

Inta

ngib

le

assets

Subord

inate

d

debt

Mis

cellaneous

Ow

n F

unds

Q1 '17

Solvency position Q1 2017

6

• Solvency ratio based on the Partial Internal Model is 202 (Q4 2016: 194).

• Own Funds (OF) is primarily impacted by

• Result Q1 2017 of DKK 605m

• Dividends of DKK 452m (Q1 2017)

• SCR impacted by a lower market risk (down DKK 120m) as current properties exposure is still below targeted level following the properties transaction announced in December

• Based on Solvency II Standard Formula the solvency ratio is 162 (Q4 2016: 157).

Own funds walk

Solvency capital requirement walk

4,975

5,077

-120

46 0 -14-1 -12

-26 26

4,800

4,850

4,900

4,950

5,000

5,050

5,100

5,150

5,200

SC

R

Q4 '16

Mark

ed

Health

Life

Defa

ult

Non-L

ife

Opera

-

tional

Adju

st-

ment

Div

ers

i-

fication

SC

R

Q1 '17

60

12

15

13

Danishinstitutional

Non-Danishinstitutional

Smallershareholders

Tryg is an income stock

7

Shareholder breakdown 2016Shareholder remuneration since 2012

DKK

Percentage

5.2 5.4 5.8 6.0 6.2

1.6

2.63.2

3.43.5

0

1

2

3

4

5

6

7

8

9

10

2012 2013 2014 2015 2016 Q1 2017

Ordinary dividend Extraordinary buy back

Extraordinary dividend

3.5

Share price performance since IPO

0

50

100

150

200

250

300

350

400

450

500

It is important to know your investment case

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”Do you know the only thing that gives me pleasure?

It’s to see my dividends coming in.”

John D. Rockefeller

Front page slide

Cyber insurance

Ulrik Andersson, Special Risk Director

Agenda slide

1. Cyber risk – sign of the times

2. The criminals are going digital

3. Data breaches – regulatory development

4. Cyber Insurance and Tryg’s approach

5. Where will it go?

Agenda

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Cyber Risk - sign of the times

Cyber Risk - sign of the times

• Globalisation fueled by

technology

• Dramatic increases in flows of

goods and capital

• Fully automated and digitalised

production processes

• Connected devices

• Generation and hoarding of data

Opportunities

and vulnerabilities

Telegeography.com

12

13

In 2016 victims of cyber related crime reported to the Police incurred losses of more than DKK 180m

Threat from cyber crime against Danish authorities and businesses is Very High.

Cyber Risk - sign of the times

From security to Risk management

14

15

DATACENTER 1

DATACENTER 2Outsourceddevelpoment

Connected world

Cyber threats 2017

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Ransomware

Virus

Trojans

Malware

CEO Fraud

Cyber

terrorism

Advanced

persistent

threats

Spear

Phishing

Drive by

attacks

Phishing

Crimeware

CaaS

Denial of

Service

(Ddos)

Internet

of

Things

Data breaches

Knowingly /unknowingly

EU-GDPR

Criminals are going digital….

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Phishing

18

Physical phishing

19

CEO fraud

20

21

Threats are real

Satan – a new business model

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Data breachesAn emerging regulatory environment

• Increased focus on data protection over last

decade

• Industry standards for payment cards including

fines in case of breaches

• Data Security Breach Notification Legislation in

California 2003 – now in place in 48 US states

• General Data Protection Regulation in EU 2018

- all information related to individuals

• Notification within 72h to authorities and all

affected by breach

• Introduce role of Data Protection Officer

• Fines for non-compliance up to 4% of global

revenue or €20m

• PII includes names, usernames, license

plates….

PCI DSS ~ Payment Card Industry Data Security Standards

PHI ~ Protected Health Information

PII ~ Personally Identifiable Information

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Cyber insurance market

Source AON

• US market frontrunner in development of cyber

insurance

• Increase in market closely connected with Data

Breach Protection Legislation

• European Market estimated at $0.1-0.2bn

• A similar development in Europe and Scandinavia

is expected following both the GDPR and

development in criminal activity

• Assuming similar growths rates as seen in the US

a European market in the range $0.3bn to $0.5bn

in 2020

• Scandinavian market estimated at around $10-

20m in 2015. This would grow in turn to approx.

$50m-$75m

Tryg estimates

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Cyber vs traditional insurance

First party Third party

Cyber insurance

Property damage

Business interruption

Data restoration

Fraud

Extortion

Privacy liability

Media liability

Notification

Forensics

Credit monitoring

Regulatory costs

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• Targets larger companies

• Launched in Sweden, Denmark and

Norway in 2017

• Claims handling by global loss

adjuster Charles Taylor

Tryg Cyber insurance

Forensics

Restoration of systems and data

Costs associated with extortion

Legal assistance

Third party liability

Regulatory and notification costs

PR-assistance

ID- og credit monitoring

Business interruption (up to 3 months)

Media liability

Network damage

Loss of Data

Media liability

Local product

Nordic product

• Targets smaller companies (turnover

< DKK 100mio)

• Launched in Denmark in 2017

possible transfer to Norway in 2017

• Focus on restoration costs

Network damage

Loss of Data

Forensics

Restoration of IT systems

Restoration of data

( )

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Tryg Cyber insurance

Nordic Product

• Coverage is provided from DKK 1m and up to DKK 20m

• Tryg is providing cover in cooperation with international reinsurer and

keeps 10% on a proportional basis

• Standard pricing up to a turnover of DKK 500m otherwise referral on a

case by case basis

Local Product

• Coverage is up to DKK 5m (typically 1m)

• Tryg keeps risk in own books and cooperates with local provider for

claims adjusting

• Excludes a number of sectors

• Possible to buy DNS service as add on

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Where will it go ?

Risk or Peril ?

Wannacry outbreak map

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Where will it go ?First

part

y

Third p

art

y

Cyber insurance

Stand alone or integration?

Property Liability

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Where will it go ?

Risk Management never goes out of style..!

Mitigate

Monitor

Identify

Evaluate

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Innovation Tryg

Lars Bonde, COO

Do we have a choice?

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The world is changing around us – our strategy needs to reflect this change

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Analysts predict that every thirdjob in the industry will disappear

and that the decisions that we takenow will determine our future and

will also impact the rest of our society

Morten Hübbe

The emergence of InsurTech has been a key driver for innovation within the insurance industry

Striking the right balance between short-term, predictable growth and long-term bets

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RadicalIncremental

Highimpact

Lowimpact

Substantial

90%

10%

Distribution of innovation focus 2016/2017

Initiatives with sufficient scale potential are important considering future challenges

Changing and stronger competition

Car and Home & Contents decline: due to

new tech and competition

I.e. Workers’ Comp.: Automation and robotics

will also reduce risk pools in Commercial/Corp.

…and why shouldn't Tryg be the one setting up kites, rather than building fences?

The market and technological development is

as much an opportunity, as it is a challenge

Average No. of yearlytouch points with

our customers

X 2Through a frequent and insights-driven

customer approach we will increase our

retention rate and ownership of the customer

$ $

By taking an entrepeneurial approach we

• Build further on New Business & Customer Innovation abilities to bring new products to market, fast

• Address the declining riskpools of current core products

• Acknowledge that the nature of insurance is if not changing, then evolving

• We partner to get access to the knowledge we need, and to reduce investment risk

An empirical process of try, fail, try, fail, try succeed at a

• Low cost

• Low risk

• Low distraction (it will not pull the organisation as a whole off focus)

• We use technology as a tool that accelerates success, technology alone cannot

create great results

Tryg a cautious entrepeneur

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• Startup mentality

• Exploring technology and new business models

• Time to market is key

Innovation in Tryg

36

…?eProtect cyberinsurance

Ung Sjåfør & We Drive

Share economy – the next big thing?

37

DKK 2,300bn expected global

turnover in 2025 – and growth of 25%yearly

Accenture

• Short term insurance

• Development of insurance solutions in cooperation with share service companies

• 13 partnerships in place

• Security – crucial for the success of shareeconomy?

Share economy

Will the disruptive insurtech- or the insurancecompanies win?

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Increased market andcustomer focus

End-to-end responsibilityand authority

Speed

Adaptation to the new environment –Tryg new organisation

1. Awareness of the need for a change

2. Desire to participate in and support the change

3. What can we bring to the table

Delivering peace of mind

and value to its customers,

employees and investors.

Front page slide

Tryg Garanti

Mads Løgstrup, Managing director, Tryg Garanti

Agenda slide

1. Tryg Garanti at a glance

2. Financial Performance

3. Business Model and Strategy

4. Competitors and market

5. Organisation

6. Reinsurance

7. Tryg Garanti and The Camp

Agenda

Tryg Garanti is about counterparty risk

“Tryg Garanti provides peace of mind

when commercial contracts are entered into”

2% of Tryg gross earned premium7% of technical result

41

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Tryg Garanti at a glance

Two content slide

Clients and product lines

• The main product line is surety bonds

• Trade credit is a developing product line

• Target client segments are contractors and contract producing companies

• The SME segment is preferred

• The client value proposition:

• Free financial capacity (surety)

• Protect balance sheet and professionalise credit risk management (trade)

• On time, high quality service (trade and surety)

Strength of TMG operation

• World class in:

• Meeting client expectations: NPS 63

• Operational efficiency: cost ratio 8.3

• Capital efficiency, ROE 136%

• Digitalised, internet based business model with full self-

service functionality

• Robust business model (‘Broker for reinsurance’)

• Combined ratio 2016 54.4 (55.2)

Tryg Garanti (TMG) is the largest provider of surety contract and supply bonds in the

Nordic area and has a developing position in trade credit insurance.

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Text slide

TMG Business model

Seller BuyerContract

Reinsurance

TRADE SURETY

Tryg Commercial & Corporate

Surety:

Trade Credit:

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The story:

• Danish surety portfolio: +100 years old

• Surety launched:

• Norway in 2006

• Sweden in 2007

• Finland in 2008

• Trade credit launched:

• Denmark in 2010

• Norway, Sweden and Finland in 2015

• TMG is now established as the #1 surety

insurer in the Nordics

• TMG is now the fastest growing trade credit

insurer in the Nordics

The story

Norway

Sweden

Finland

Denmark

Strong financial performance

“TMG business is highly profitable”

Strong profitability across economic cycles

45

0

100

200

300

400

2005 2007 2009 2011 2013 2015 2016 2017F

DKKm

Premium Tech. Result

TMG - Surety and Trade Credit Insurance

46

Premium & technical result

0%

10%

20%

30%

40%

2005 2009 2013 2016

Cost ratio

NO SE FI Trade,DK

0

100

2005 2007 2009 2011 2013 2015 2016 2017F

Combined ratio

Years of financial crisis

47

Efficiency gains by employee

Digitalised business model

“Efficiency is core to client satisfaction and TMG profit”

Further client process integration and development of clever 3rd party distribution

48

49

TMG Strategy

How to create

more value:

• Product development• Solutions allowing TMG

product integration into

client processes and

thereby creating more

value for clients and

efficiency for TMG

• Efficiency • Continued automation of

internal processes via IT

• Clients increasingly to

take over TMG internal

processes

• Distribution• Taking advantage of the

Tryg Group distribution

network and Tryg brand

in the SME segment

Must-win battles:

• Trade Credit

introduction• Growth in Trade Credit is

the preferred balancing

factor in a ‘rate pressure’

surety scenario

• ‘One company’• A unified company culture

including shared pool of

resources /concepts is

vital to continued

efficiency improvement

Critical obstacles:

• Developing external

distribution channels

for Nordic Trade Credit• Outside DK, TMG must

develop strong external

(/group) distribution as

only limited internal

resources are available

Internal and external efficiency is seen as main driver of profitable growth and client satisfaction

Strong competitors are few

“TMG has critical mass in a market where critical mass is difficult to obtain”

50

Many but small competitors in suretyLimited market size deter competition

• Few but large competitors in Trade Credit

• Many banks are competitors in Surety (but with little focus)

• International specialist insurers are main challengers (but do not yet match

TMG service offering or efficiency)

51

Competitors and market

52

Expense ratio in Nordic banking and insurance

TMG advantage over competitors increased further in 2016. The advantage is a key explanation for the high profit potential of the portfolio.

Source: 2016 Annual Reports

Nordic surety market

Rates are under pressure for large clients, whereas rates are stable for SME clients.

For 2017, an unchanged market premium volume is expected as increasing demand will level out reducing rates.

Market share split by insurance providersMarket share split by bank and insurance providers

53

Overall Nordic market premium is EUR 300m, split between banking and insurance providers.

Nordic trade credit market

Overall Nordic market premium is EUR 150m.

For 2017, an unchanged overall premium volume is expected as the benign macro economic environ-ment put pressure on rates due to lower claims levels.

Also self insurance is an issue in a positive part of the economic cycle

54

Market share split by insurance providers

55

International Surety and Trade Credit performance

Source: ICISA, homepage

The ICISA organisation publishes market data from its members once a year. Latest available numbers are for 2015.

Claims ratios remain very satisfactory for both Surety and Trade Credit

Premium growth is strong in the surety line, whereas a flattening trend is seen for Trade Credit. Pressure on rates and self insurance is seen as the main reasons.

56

Surety Market Potential

• Internationally, surety is a banking product

• Basel IV rules (capital floors) will improve

competitive advantage of insurance companies

Market split – banking and insurance

90%

30%

70%

35%

85%

65%

70%

50%

70%

80%

10%

70%

30%

65%

15%

35%

30%

50%

30%

20%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Belgium

Denmark

Germany

Ireland

Netherlands

Finland

Sweden

United Kingdom

Norway

Switzerland

Bank Insurance

Tryg Garanti is scalable

“Tryg organisation and infrastructure is scalable”

57

Matrix organisationDigitalised processes

58

Organisational chart

Unit manager

Country manager

CEO, Finance & central functions

Clie

nt R

ela

tion

s, T

rad

e c

red

it

Clie

nt C

en

tre

Ris

k m

an

ag

em

en

t

Clie

nt R

ela

tion

s, S

ure

ty

HES

MDL

Ma

rke

ts a

nd

pro

du

cts

NIE KIS MDLMIJ

TEP

LEF

DAA

The organisational chart reflects a matrix where unit managers are responsible for guidelines across countries (how things are done) and country managers are responsible for local allocation of resources (whodo things)

“We rely on shared values, goals and processes”

“We want to be perceived as local to local clients”

A risk carrier or a risk broker ?

”Tryg Garanti financial performance is leveraged by reinsurance – and risk

reduced”

59

Ceding +65% of gross premiumCeding +95% of peak risks

61

Managed peak risk and loss ratio

-100.0

-50.0

0.0

50.0

100.0

150.0

200.0

250.0

300.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Gross claims ratio Net claims ratio after reinsuranceFinancial crisis

Historic claims volatility is managed by reinsurance

Tryg Garanti and The Camp

The Camp provides new opportunities to Tryg Garanti product development:

• NewBanking (blockchain) could transform traditional whole turnover trade

credit policies into a single transaction market for privately funded

receivables

• UNICONTA could become first cloud based distribution partner for the new

Tryg Garanti application programmers interface (API)

• Continuous innovation could result in new, profitable, business venture

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