Topdanmark A/S : 2022 årsregnskabsmeddelelse Topdanmark A/S (1 MB)

Annual Results 2022

24 January 2023, Announcement No. 02/2023

Topdanmark A/S • Borupvang 4 • DK-2750 Ballerup • Tel [phone] CVR no. 78040017 • [e-mail] • www.topdanmark.com

Contents

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Announcement No. 02/2023 from Topdanmark A/S

Management's review

5 Letter to our shareholders

1. Highlights
2. Financial highlights
3. Results for 2022

1. Results for Q4 2022
2. Non-lifeinsurance in 2022
3. Non-lifeinsurance in Q4 2022

1. Discontinued operations
2. Investment activities
3. Solvency calculation and capital requirements
4. Parent company etc.

16 Taxation

1. Efficiency programme
2. New IT systems

1. Profit forecast model for 2023
2. Distribution of dividend for 2022

1. Annual General Meeting

1. Financial calendar
2. Disclaimer

Financial statements for 2022 - Group

21 Income statement

1. Statement of comprehensive income
2. Assets
3. Shareholders' equity and liabilities
4. Cash flow statement
5. Statement of changes in equity
6. Segment information
7. Notes to the financial statements

Financial statements for 2022 - Parent company

31 Income statement

1. Statement of comprehensive income
2. Balance sheet

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Announcement No.02/2023 from Topdanmark A/S

Management's review

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Announcement No. 02/2023 from Topdanmark A/S

Creating a focused non- life company while delivering strong results

A letter to our shareholders from the Chairman of the Board and the Group CEO

2022 was an eventful year for Topdanmark. In March, we announced the sale of our life insurance company to Nordea, and on 1 December 2022 we formally completed the sale. In addition to being a good opportunity for the life insurance company to grow further, we firmly believe that this is a positive development for Topdanmark and our shareholders, as we are now focusing our operations entirely on non-life insurance and on creating efficient and highly profitable operations with very low volatility and low capital requirement. As such, this only further strengthens the capital repatriation case that Topdanmark has embodied for decades.

At the same time, 2022 was a very turbulent year. The Russian invasion of Ukraine brought hardship to millions of innocent people, who all have our deepest sympathy. In addition, rising inflation, weak financial markets, and sharply increasing interest rates affected individuals and companies alike all over the world.

Seen in the light of these severe events, we are very pleased with the financial developments of Topdanmark. Including the DKK 947m net gain from the sale of the life insurance company, we reported a net profit of DKK 2,049m or DKK 1,930m

before run-off, significantly higher than our original expectation at the beginning of 2022 of DKK 1,200-1,450m before run-off and before the announced sale of life. As a result, the Board of Directors will propose a record-high total dividend payment of DKK 53.5 per share for 2022. The combined ratio was 83.3 before run-off, which outperformed our original expectation of 85.5-88 before run-off by a clear margin, helped along by the sale of the life activities as well as strong

business momentum with underlying profitability improvements, strong results from our efficiency programme, and premium growth.

At Topdanmark, we continue to firmly believe that long-term shareholder value is created through committed and motivated employees, who ensure first-class customer experiences, which in turn create satisfaction and loyalty to the benefit of our shareholders. To that end, we are very pleased that we once again can report a historically high employee satisfaction level of 81 compared with 80 in 2021. Likewise, we continue to see a stable, high transactional net promoter score (tNPS) in non-life. In addition, we continued to further reshape and improve our products and services throughout 2022 to adapt to changing customer demands, e.g. our updated cyber insurance product for small- and medium-sized companies.

In response to the macroeconomic uncertainty, we have proactively reached out to thousands of customers to learn how, as an insurance company, we can help them in the best possible way. Among other things, Topdanmark has carried out service checks for our commercial and agricultural customers to ensure correct coverage, including mitigating the risk of under-insurance given the high inflation, as well as offered them the possibility of monthly payments to support liquidity. We have also contacted private customers to offer them an insurance check, and eight out of ten customers accepted the offer. The private customers also get the possibility of dividing payments into smaller monthly amounts, which about half have opted to do.

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Announcement No.02/2023 from Topdanmark A/S