In This Article:
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Insurance Revenue Growth: 3.9%, driven by price increases across all segments.
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Insurance Service Result (ISR): DKK2.13 billion, aided by lower large-in-weather claims.
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Combined Ratio: 78.2% for the quarter.
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Investment Result: DKK444 million, with positive returns across all asset classes.
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Pre-Tax Result: Just above DKK2.1 billion.
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Operating EPS: DKK2.89.
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Return on Operating Funds (ROOF): 42.1%.
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Dividend Per Share: DKK1.95.
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Solvency Ratio: 202%.
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RSA Synergies: DKK58 million for the quarter, DKK864 million accumulated.
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Expense Ratio: 13.3% for Q3.
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Customer Satisfaction Score: 86.
Release Date: October 11, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Tryg AS (FRA:T2V1) reported a solid insurance revenue growth of 3.9%, driven by price increases across all segments.
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The company achieved a strong insurance service result of DKK2.13 billion, aided by lower large-in-weather claims.
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The combined ratio improved to 78.2% in the quarter, with a 30 basis points improvement in the group underlying claims ratio.
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The investment result was robust at DKK444 million, with positive returns across virtually all asset classes.
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Tryg AS (FRA:T2V1) maintained a very robust solvency ratio of 202%, supporting future capital repatriation.
Negative Points
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The corporate segment reported a decline in revenue, aligning with the strategic rebalancing efforts.
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The private segment experienced an underlying claims ratio deterioration of 20 basis points, indicating ongoing challenges.
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Interest rates were approximately 100 basis points lower than the previous year, impacting the combined ratio by around 1%.
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The company faces challenges in reaching its customer satisfaction target of 88 by year-end.
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The expense ratio, although slightly lower than guidance, remains a focus area for cost control and efficiency improvements.
Q & A Highlights
Q: Can you elaborate on the discrepancy between your motor frequency data and sector statistics, and discuss your expectations for Q4 and 2025 regarding underlying improvements in private lines? A: Mikael Karrsten, Group CTO, explained that there is no clear short-term correlation between external statistics and Tryg's data. The company is comfortable with its actions, particularly in Norway, and expects these to support financial targets for 2024 and beyond. The composition of profitability improvements will shift as earnings impact from personal lines materializes.
Q: How do you reconcile the price increases in property and motor with the reported top-line growth in private lines? A: Johan Brammer, Group CEO, noted that while price is the predominant growth driver today, the growth numbers are influenced by various product categories. The company expects a more balanced growth profile as inflationary pressures taper off.