In This Article:
-
Revenue Growth: 3.7% in Q1, driven by price adjustments in the private segment.
-
Insurance Service Result: DKK1.54 billion for Q1.
-
Combined Ratio: 84.2% for the group.
-
Investment Result: DKK320 million in Q1.
-
Pre-Tax Result: DKK1.491 billion.
-
Return on Own Funds: 33.4%.
-
Dividend Per Share: DKK2.05.
-
Solvency Ratio: 195 at the end of Q1.
-
Customer Satisfaction: Level of 82 in Q1.
-
Private Segment Growth: 5.1% in Q1.
-
Commercial Segment Growth: Just under 1% in Q1.
-
Norwegian Combined Ratio: 95.3 in Q1.
-
Underlying Claims Ratio Improvement: 30 basis points for the group.
-
Expense Ratio: 13.3% in Q1.
-
Total Invested Assets: DKK62 billion.
Release Date: April 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Tryg AS (WBO:TRYG) reported a revenue growth of 3.7% in Q1, driven by price adjustments in the private segment to counter inflationary pressures.
-
The insurance service result for Q1 was DKK1.54 billion, significantly higher than the previous year, aided by a mild winter and lower claims costs.
-
The combined ratio for the group was 84.2%, with strong performance in Denmark and Sweden, and improvements in Norway.
-
The investment result was satisfactory at DKK320 million, despite a volatile macroeconomic environment.
-
Customer satisfaction achieved a level of 82, close to the 2027 target of 83, with notable improvements in the Swedish business.
Negative Points
-
The commercial segment growth was under 1%, impacted by the loss of Norwegian corporate customers and reactions to price increases.
-
Retention rates have weakened slightly due to profitability initiatives, particularly in Denmark, affecting customer retention.
-
The solvency ratio decreased slightly to 195 from 196 at year-end, with expectations of further adjustments in the future.
-
The Swedish business reported a lower insurance service result compared to last year, primarily due to a high runoff in Q1 2024.
-
The report by the Danish consumer and competition authorities has raised concerns about potential market investigations, particularly around indexation practices.
Q & A Highlights
Q: Can you provide insights on the impact of the Danish consumer and competition authority report, particularly regarding loyalty premiums and customer churn? A: Johan Brammer, Group CEO, explained that the report suggests loyalty payments in Denmark are significantly lower than in the UK. The churn reflects strong market competition, with 500,000 customers switching providers annually. The company awaits further developments from the ongoing hearing and potential market investigation.