Tryg’s Supervisory Board has today approved the interim report for Q1-Q3 2022*.
Tryg reported a premium growth of 6.4% in Q3, primarily driven by positive developments in the Private and Commercial segments. Technical result of DKK 1,832m (DKK 1,510m pro-forma, DKK 988m as reported), supported by the continued positive development in core business including the delivery of the RSA synergies, an increased level of interest rates (implying a higher discount rate for the insurance liabilities and thereby lower claims level in Q3) and a positive top-line development. The technical result in Q3 is up 85% against the reported level in Q3 2021, with Sweden contributing to top-line and technical result by 34% and 42% respectively compared to 10% and 6% in Q3 2021 as reported. The underlying claims ratio improved by 0.8 p.p. for the Group, while it showed a modestly negative development for the Private segment. The investment result for Q3 was DKK -348m (DKK 481m), driven by highly volatile financial markets following continuously high geopolitical tensions. Virtually all assets classes produced negative returns, as a number of central banks have tried to tame inflationary pressures by increasing rates.
Financial highlights Q3 2022
• Premium growth of 6.4% (5.9% in Q3 2021)
• Technical result of DKK 1,832m (DKK 1,510m) supported by a continued positive development in core business including the delivery of RSA synergies, an increased level of interest rates and a positive premiums development
• Combined ratio of 81.1 (82.9)
• Underlying claims ratio (Group) improved by 0.8
• Weather claims at 0.9% (3.4%) and large claims at 4.2% (0.8%)
• Expense ratio of 14.1 (13.6)
• Investment return on the free portfolio of DKK -233m (DKK 89m)
• Total investment return of DKK -348m (DKK 481m)
• Profit before tax of DKK 964m (DKK 1,201m)
• Dividend per share of DKK 1.58 and Solvency ratio of 198
Financial highlights Q1-Q3 2022
• Premium growth of 5.7% (5.6% in Q1-Q3 2021)
• Technical result of DKK 4,488m (DKK 2,883m)
• Combined ratio of 82.3 (83.9)
• Weather claims at 1.5% (1.8%) and large claims at 3.4% (1.5%)
• Expense ratio of 14.0 (14.1)
• Investment return on the free portfolio -1,149m (DKK 594m)
• Total investment return of DKK -1,510m (DKK 67m)
• Profit before tax of DKK 1,674m (DKK 2,497m)
• Dividend per share of DKK 4.69, (DKK 1.55 paid in April, DKK 1.56 paid in July and DKK 1.58 to be paid on 18 October)
Customer highlights Q3 2022
• Customer satisfaction score of 85 (85 in Q3 2021)
• For the seventh year in a row, TryghedsGruppen decided to pay a member bonus. The bonus is around DKK 1.2bn, equivalent to 8% of the premiums paid in 2021
Statement by Group CEO Morten Hübbe:
In Q3 2022, Tryg reported a positive premium growth of 6.4% across all Scandinavian markets, mainly attributable to the Private segment with growth of 7.3% and the Commercial segment with growth of 4.6%. I am pleased to see that we continue to deliver a solid technical result of DKK 1,832m driven by positive top-line development, an increased level of interest rates (implying a higher discount rate for the insurance liabilities and thereby lower claims level in Q3) and continuous delivery of the RSA Scandinavia synergies. The acquisition of RSA Scandinavia has ensured a more balanced geographical footprint, with both premiums and insurance results now clearly more diversified between the three Scandinavian countries with Sweden representing a very important part of it. We see also commercial advantages where we can learn from each other in the products offering as well as improving customer experience.
Scandinavian economies, despite external challenges, are still healthier than most. At times of economic uncertainty, being well insured is an important component for both private customers and businesses that wish to minimise the risk of unexpected financial costs.
Turbulence in the financial markets have had significant impact on our investment result and profit before tax. The strong set of numbers is therefore a testimony to a core business in good shape.
For the seventh year running, TryghedsGruppen announced a member bonus which was paid to Tryg and Alka customers on 11 October. The bonus is around DKK 1.2bn, equivalent to 8% of premiums paid in 2021 – up from 5% last year, and should be seen in connection with Tryg’s dividend.
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 76 84 90
UK participants: +44 (0) 203 769 6819
US participants: +1 646 787 0157
All Q3 material can be downloaded on https://tryg.com/en/downloads-2022 shortly after the time of release.
*The comparison figures for Q3 2021 related to the technical result are pro-forma disclosed in June while the comparison figures for the Q1-Q3 2021 period are as reported.