If P&C Insurance
The past year was marked by the still challenging financial environment, impacted by the sovereign debt and banking crisis in the eurozone. The insurance industry is now in a period where it is adapting to this new environment with low interest rates and hence low return on investments, where the results must be achieved in underwriting. This is an approach that is in line with the way If has been working for several years through its prudent investment policy and profit-oriented underwriting approach.
If’s business developed very well in 2012 with a combined ratio of 89.3 per cent. The combined ratio was better than the long-term target. The technical result was EUR 560 million (457) and profit before taxes amounted to EUR 858 million (636). The result was improved, among other things, by fewer weather-related claims compared to the last couple of years. If’s profit also includes a share of associated company Topdanmark’s profit, corresponding to If’s ownership in Topdanmark, which amounted to EUR 50 million.
The year 2012 was characterized by a number of important business co-operations. During the year, If entered a partnership with Nordea in Finland, Sweden and the Baltic countries. The partnership, which will strengthen If’s distribution network, is expected to be launched in the first half of 2013. If also acquired the Finnish P&C insurance business of Tryg with premium volume of approximately 80 MEUR and a market share of some 2 per cent. The transaction is still subject to approval by regulatory authorities. In car insurance, which is an important part of If’s business, the partnership agreement with Volkswagen Group Sweden (VGS) was extended by another three years. During the year, the partnership agreement with Coop Norway was also successfully implemented. If’s strategic investment in health insurance continued during the year with new initiatives and partnership agreements. Furthermore, If’s Russian subsidiary Region was divested.
If’s focus areas remained unchanged in 2012, with continued improvement in underwriting and cost efficiency and further development of partnerships and customer relations. Improvements in customer and claims service are continuously made in all business areas and markets. In line with this, If works systematically to involve all employees to contribute to its customer promises “Claims handling the way it should be” and “Relax, we’ll help you”.
If’s focus on online solutions continued during the year, with both sales and claims handling on the internet growing steadily. In 2012 a number of e-business solutions were further developed creating both efficiency and customer value.
Solvency II requirements have high priority within If and the group is well positioned to meet the new regulatory demands.
If has systematically worked for the environment and reduced its carbon dioxide emissions significantly. The year 2012 was the second carbon neutral year in a row for If.