Tryg

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 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 Executive Board reports to the Supervisory Board on strategies and action plans, market developments and Group performance, capital requirements and risks, etc. The Supervisory Board holds an annual strategy seminar to decide on and/or adjust the Group's strategy to sustain value creation in the company. Each year, the Supervisory Board reviews and an annual cycle for its work. The Supervisory Board specifies its activities in a set of rules of procedure.

The Executive Board reports to the Supervisory Board on strategies and action plans, market developments and Group performance, capital requirements and risks, etc. The Supervisory Board holds an annual strategy seminar to decide on and/or adjust the Group's strategy to sustain value creation in the company. The Executive Board works with the Supervisory Board to ensure that the Group's strategy is developed and monitored. The Supervisory Board ensures that the necessary skills and financial resources are available for Tryg to achieve its strategic targets. The Supervisory Board is regularly informed about the dialogue with investors and other stakeholders.

Strategy, business model and value chain - Tryg at a glance: As the world changes, we make it easier to be tryg. Leading market position - Tryg is the leading non-life insurer in Scandinavia. We are the largest player in Denmark, the third-largest in Sweden and fourth-largest in Norway. Around 6 million customers - Our 6,621 employees provide peace of mind for around 6 million customers and handle approximately 2.2 million claims on a yearly basis. Strong Scandinavian footprint with Revenue distribution: Denmark 47%, Norway 31%, Sweden 22%. Market positions: Denmark 1st position with 12.9% market share, Norway 4th position with 24.4% market share, Sweden 3rd position with 16.5% market share. United Towards '27 - Tryg hosted a Capital Markets Day on 4 December 2024, unveiling its 2027 financial and strategic targets under the theme 'Leveraging Scale to Drive Technical and Commercial Excellence'. Strategic pillars supporting the targets: Scale & Simplicity, Technical Excellence, and Customer & Commercial Excellence, focus on leveraging Tryg's size and scaling best practices across the Group. These pillars aim to increase the insurance service result by DKK 1bn by 2027.

Interests and views of stakeholders - 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. All shareholders are encouraged to attend the general meeting. Shareholders may propose items to be included on the agenda for the AGM and may ask questions before and at the meeting. Furthermore, prior to the general meeting, Tryg invites shareholders to submit written questions to be considered at the general meeting.

Material impacts, risks and opportunities and their interaction with strategy and business model - In a world increasingly impacted by climate change, Tryg offers customers peace of mind, ensuring coverage in the event of claims. From a macroeconomic perspective, 2024 turned out to be another eventful year. Geopolitical tensions continued to affect the financial environment. Weather events in 2024: The weather events for the full year were in line with Tryg's annual expectations, even though 2024 had its fair share of weather-related claims. The first half of the year brought severe weather challenges to our customers. Heavy rainfall impacted Denmark, while Norway experienced a harsh winter with substantial snowfall. During 2024, Tryg launched new technology solutions to help further enhance the customer experience. Tryg's business is generally stable but may be subject to volatility due to weather events and large claims.

Description of the processes to identify and assess material impacts, risks and opportunities - During the year, Motor claims frequencies have been challenging, although the trend was more pronounced at the beginning of the year compared to the end of the year. Additionally, a slightly higher average claims cost was also reported. This issue has been noted across geographies generally but was particularly evident in the Norwegian business, where most profitability actions to mitigate this trend have been taken. Capital markets developed positively during 2024 and most asset classes, with the noticeable exception of real estate, reported positive returns. Geopolitical tensions remained high, resulting at times in sudden shocks to capital markets.

This annual report includes disclosures under ESRS framework as part of the sustainability statement covering material topics identified including climate change (E1), resource use and circular economy (E5), own workforce (S1), consumers and end-users (S4), and business conduct (G1).

Policies related to climate change mitigation and adaptation - New climate emission targets are defined in line with conclusive scientific evidence for our direct and indirect activities. Towards '27, Tryg will continue its efforts to contribute to a more sustainable future and create long-term value, benefiting our shareholders, customers and employees as well as society. Tryg will continue to address carbon emissions in claims handling and in its supply chain with a target of a 6% average emissions reduction per claim.

Actions and resources in relation to climate change policies - During the current strategy period, we have expanded our offerings with products that can help our customers adapt to climate change, while maintaining our focus on minimising the use of resources in the claims handling process. A large part of Tryg's carbon emissions stem from the handling of approximately 2.2 million annual claims, and in 2024 Tryg is pleased to have reduced CO2e emissions of 27,825 tonnes in claims handling. Tryg will develop and expand practices for repairs and the recycling of materials through close collaboration with suppliers.

Targets related to climate change mitigation and adaptation - New climate emission targets are defined in line with conclusive scientific evidence for our direct and indirect activities. Tryg has set a target of reducing CO2e emissions by 6% per average claim by 2027 compared to 2024. By 2024, Tryg reduced 27,825 tonnes of CO2e from its claims handling processes, exceeding the target of 20,000-25,000 tonnes.

Policies related to resource use and circular economy - During the current strategy period, we have expanded our offerings with products that can help our customers adapt to climate change, while maintaining our focus on minimising the use of resources in the claims handling process. Tryg will develop and expand practices for repairs and the recycling of materials through close collaboration with suppliers.

Actions and resources related to resource use and circular economy - A large part of Tryg's carbon emissions stem from the handling of approximately 2.2 million annual claims, and in 2024 Tryg is pleased to have reduced CO2e emissions of 27,825 tonnes in claims handling. The fulfilment of this target was made possible through several initiatives for increasing repairs and the use of reused materials in claims handling. Tryg will develop and expand practices for repairs and the recycling of materials through close collaboration with suppliers.

Targets related to resource use and circular economy - Tryg has set targets for sustainability and ESG defined as key enablers to support Tryg's 2027 strategy. Tryg has set a target of reducing CO2e emissions by 6% per average claim by 2027 compared to 2024, which includes focus on circular practices in claims handling.

Policies related to own workforce - With high employee engagement, a diverse culture and strong talent retention, Tryg is well-positioned to develop and anchor new practices and deliver on ambitious sustainability targets by 2027. The Supervisory Board and the Executive Board would like to express a sincere thank you to all employees for their dedicated efforts and outstanding contributions.

Taking action on material impacts on own workforce - By leveraging advanced speech analytics applied to dialogues between advisers and customers, Tryg has been able to provide tailored training and coaching for individual advisors. As a result, nearly 60 percent of advisors have improved their customer satisfaction scores and 40 percent have boosted sales. This training programme has played a significant role in Tryg's sales success in 2024.

Characteristics of the undertaking's employees - Around 6 million customers - Our 6,621 employees provide peace of mind for around 6 million customers and handle approximately 2.2 million claims on a yearly basis.

Diversity metrics - With high employee engagement, a diverse culture and strong talent retention, Tryg is well-positioned to develop and anchor new practices and deliver on ambitious sustainability targets by 2027.

Training and skills development metrics - By leveraging advanced speech analytics applied to dialogues between advisers and customers, Tryg has been able to provide tailored training and coaching for individual advisors. As a result, nearly 60 percent of advisors have improved their customer satisfaction scores and 40 percent have boosted sales. This training programme has played a significant role in Tryg's sales success in 2024 and earned Tryg two prestigious national awards: first place in the national response time championship and the Customer Service Award in the insurance category. In Norway, AI and advanced voice analytics are also now being used to train and coach Tryg's customer advisors, resulting in improved customer satisfaction, improved sales results and increased levels of digitally filed claims.

Policies related to consumers and end-users - Tryg achieved a customer satisfaction level of 87, an improvement of 3 percentage points since 2020, but slightly shy of our 2024 target of 88. We are proud of achieving this high level of satisfaction, especially for a period when necessary price adjustments to offset inflation have been implemented more frequently than seen for many years. Improving the customer satisfaction score was made possible by the relentless efforts of Tryg's employees. Customer satisfaction remains paramount to Tryg, and we continue to work diligently to meet and exceed customer expectations.

Processes for engaging with consumers and end-users about impacts - Tryg's Investor Relations (IR) department maintains regular contact with analysts and investors. All shareholders are encouraged to attend the general meeting. Shareholders may propose items to be included on the agenda for the AGM and may ask questions before and at the meeting. Furthermore, prior to the general meeting, Tryg invites shareholders to submit written questions to be considered at the general meeting. Our cooperation with SMHI, the Swedish Meteorological and Hydrological Institute, enables Trygg-Hansa to warn clients in areas at risk of storms and to share tips on how to prepare for extreme weather. With Trygg-Hansa's own AI feature, it can also warn clients in specific areas where the AI identifies an increase in a specific type of claim. Through specific warnings and preventative information, we also help our customers who own car brands that are particularly exposed to theft.

Taking action on material impacts on consumers and end-users - During 2024, Tryg launched new technology solutions to help further enhance the customer experience. In Denmark, the AI assistant Felix now offers tailored suggestions and input to our Danish customer advisors in real time based on key words that the customer mentions during a telephone conversation. In Norway, AI and advanced voice analytics are also now being used to train and coach Tryg's customer advisors, resulting in improved customer satisfaction, improved sales results and increased levels of digitally filed claims. In Sweden, the AI assistant Llucia offers a faster response to our Swedish customers with a child insurance policy who have been involved in an accident. In 2024, Trygg-Hansa also launched payouts to customers through the digital payments service Swish. Now customers can get compensation for a claim in a matter of seconds, completely digitally.

Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities - For the new strategy period, Tryg has set a customer satisfaction score target of 83 by 2027. Tryg has rebased the customer satisfaction baseline from 87 to 81 in the new period. This difference arises from an updated scoring methodology and by the inclusion of the entire Swedish business, which was not part of the customer satisfaction targets for 2024. Tryg is therefore targeting a score of 83, an improvement of 2 points against the old target.

Business conduct policies and corporate culture - 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. Tryg has adopted a number of policies describing the relationship between different stakeholders. A number of internal guidelines ensure that the disclosure of price-sensitive information complies with legislation and stock exchange codes of conduct.

Management of relationships with suppliers - Tryg will develop and expand practices for repairs and the recycling of materials through close collaboration with suppliers. Tryg will continue to address carbon emissions in claims handling and in its supply chain with a target of a 6% average emissions reduction per claim.

Political influence and lobbying activities - Setting the public agenda on climate protection: Tryg's CEO, Johan Kirstein Brammer, spearheaded advocating for increased climate protection. In an interview with a Danish newspaper, Tryg's CEO emphasised the urgent need for political involvement and common solutions across Danish society to address the expected increasing frequency and intensity of extreme weather events in the long term. The motivation for Tryg's engagement in this topic stems from clear documentation of climate changes impacting many customers. Tryg is focused on contributing to helping customers adapt to more severe weather.