Tryg’s Supervisory Board has today approved the interim report for Q2 and H1 2022. This is the first consolidated report for the enlarged group and hence comparison figures in brackets related to the insurance business refer to Q2 pro-forma 2021 numbers which were published on tryg.com ahead of the publication of the Q2 report.
Tryg reported a premium growth of 6.8% in Q2 in the first quarter of full consolidation of Codan Norway and Trygg-Hansa, the growth was primarily driven by positive developments in the Private and Commercial segments. Technical result of DKK 1,902m (DKK 1,567m), supported by the positive top-line development, improved underlying profitability helped by the delivery of the RSA Scandinavia synergies and an increased level of interest rates (implying a higher discount rate for the insurance liabilities). The underlying claims ratio improved by 0.8% for the Group. Tryg’s investment result for Q2 was DKK -878m (DKK -757m), driven by highly volatile financial markets with equity markets experiencing one of the most challenging quarters in recent memory, credit spreads widening and increased interest rates.
Financial highlights Q2 2022
• Premium growth of 6.8% in local currencies
• Technical result of DKK 1,902m (DKK 1,567m)
• Combined ratio of 79.7 (81.9)
• Underlying claims ratio (Group) improved by 0.8
• Large claims at 3.1% (1.4%) and weather claims at 0.9% (2.3%)
• Expense ratio of 13.9 (14.7)
• Investment return on free portfolio of DKK -944m (DKK 312m)
• Total investment return of DKK -878m (DKK -757m)
• RSA related synergies of DKK 92m
• Profit before tax of DKK 508m (DKK 274m)
• Quarterly dividend of DKK 1.56 and solvency ratio of 195
Financial highlights H1 2022
• Premium growth of 5.3% in local currencies
• Technical result of DKK 2,656m (DKK 1,895m)
• Combined ratio of 83.0 (84.0)
• Large claims at 2.9% (1.9%) and weather claims at 1.9% (1.6%)
• Expense ratio of 14.0 (14.1)
• Investment return on free portfolio of DKK -916m (505m)
• Total investment return of DKK -1,162m (DKK -414m)
• RSA related synergies of DKK 142m
• Profit before tax of DKK 711m (DKK 1,296m)
• Dividend per share of DKK 3.11 (DKK 1.55 paid in April and DKK 1.56 to be paid on 15 July)
Customer highlights Q2 2022
• Customer satisfaction score of 85 (84 in Q2 2021)
• For the seventh year in a row, TryghedsGruppen decided to pay member bonus. For 2021, this amounts to 8% of premiums paid during the autumn
Statement by Group CEO Morten Hübbe:
In Q2, we report for the first time the financial performance of the enlarged Group after the recent acquisitions of Trygg-Hansa and Codan Norway. I am pleased to see that we continue to deliver profitable growth across all Nordic markets, a solid technical result of DKK 1,902m and a combined ratio of 79.7. The performance in the second quarter of the year is supported by continued positive developments in the core insurance business supported by the delivery of RSA Scandinavia synergies. At the same time we noticed that inflation has continued to developed adversely and therefore have started targeted price adjustments to offset this development.
In a challenging macroeconomic environment with accelerating inflationary pressure, this strong set of numbers is a testimony to a core business is in good shape, and it is very positive to see that we are able to capture new customers and grow our top line while realizing synergies from the acquisition.
The financial markets are experiencing almost unprecedented volatility due to geopolitical tension and a sharp spike in interest rates. Our investment return of DKK -878m is a reflection of these uncertainties after a quarter where virtually all asset classes produced negative returns.
Finally, we are pleased to announce a quarterly dividend per share of DKK 1.56 which represents an increase of approximately 45% compared to the same quarter last year. The dividend is supported by a healthy solvency ratio of 195 which forms a solid base at the start of the new journey and ensure a strong capital return to our shareholders.
Tryg hosts a conference call today at 10:00 CET. CEO Morten Hübbe, CFO Barbara Plucnar Jensen and CCO Johan Kirstein Brammer will present the results in brief followed by Q&As.
The conference call will be held in English. An on-demand version will be available shortly after the conference call has ended.
Conference call details:
Danish participants: +45 78 15 01 07
UK participants: +44 333 300 9271
US participants: +1 631 913 1422 (PIN : 94357481#)
All Q2 and H1 material can be downloaded on tryg.com/en shortly after the time of release.