Tryg A/s · OMXCOP:TRYG
Tryg A/s — Tryg A/S Ord New — Q1 2025 Earnings Presentation
49 slides from Tryg A/s's earnings presentation, Apr 11, 2025
Slide 1: Tryg Q1 2025 results
Tryg Q1 2025 results Investor presentation
Slide 2: Contents
01| Highlights Q1 2025 03 02| Insurance revenue and portfolio 09 03| Claims developments 13 Contents 04| Investment activities 17 05| Solvency & Expenses 20 06| Update on Strategy & Financial targets 25 07| Roadshows & conferences 30 08| Background material 32 09| Disclaimer 49
Slide 3: Highlights Q1 2025
Highlights Q1 2025
Slide 4: Financial highlights Q1 2025
1 Highlights Q1 2025 Financial highlights Q1 2025 Insurance service result of DKK 1,540m Combined ratio 84.2% Investment result of DKK 320m DPS of DKK 2.05, solvency ratio at 195% Claims ratio Expense ratio Ordinary dividend 320 1,540 86.6 84.2 1,280 7.80 7.40 13.5 13.3 6.29 4.28 112 73.0 70.9 2.05
Slide 5: Customer highlights Q1 2025
1 Highlights Q1 2025 Customer highlights Q1 2025 Customer satisfaction KPI Customer satisfaction development +1 • Customer Satisfaction increases across the entire customer journey; within personal and online contact as well as our 82 onboarding and claims processes 81 • Onboarding process for new c
Slide 6: Danish Consumer and Competition Authority (DCCA) report
1 Highlights Q1 2025 Danish Consumer and Competition Authority (DCCA) report DCCA report on Danish non-life private market published on 1 April 2025 Reflections on the report • We always welcome a good and public debate on our business that recognizes the importance of a healthy and well-functioning
Slide 7: Group insurance service result and segment split
1 Highlights Q1 2025 Group insurance service result and segment split Insurance service result and Combined ratio, Private segment (DKKm) (%) 890 88.5 86.6 735 • Higher ISR driven by top-line growth, lower level of weather claims and an improved underlying claims ratio • Private continues to focus p
Slide 8: Group insurance service result and geographical split
1 Highlights Q1 2025 Group insurance service result and geographical split Insurance Denmark (DKKm)service result and Combined ratio, Denmark (DKKm) (%) 795 86.1 82.8 621 Group insurance service result, walk (DKKm) Q1 2024 Q1 2025 Q1 2024 Q1 2025 Run-off Q1 2025: DKK 64m or 1.4 % (Q1 2024 : DKK 22m
Slide 9: Insurance revenue development
Insurance revenue development
Slide 10: Insurance revenue grew 3.7% in local currencies
2 Insurance revenue and portfolio Insurance revenue grew 3.7% in local currencies compared to Q1 2025 Insurance revenue growth by segment Q1 2025 in local currencies (%) 5.1 Group reported a growth of 3.7% in local currencies mainly driven by the Private segment 3.7 Group 0.9 Private reported a grow
Slide 11: Improvement of Norwegian profitability driven by the Private segment
2 Insurance revenue and portfolio Improvement of Norwegian profitability driven by the Private segment • Q1 2025 combined ratio is improving but still not at a Combined ratio Norway satisfactory level -6.9pp • A milder Scandinavian winter helped, but profitability initiatives the major driver behind
Slide 12: Customer retention remains broadly stable
2 Insurance revenue and portfolio Customer retention remains broadly stable, some differences between segments Private segment retention rates DK NO SE 88.9 88.5 86.5 85.6 87.0 87.2 94 92 90 88 86 DK NO SE 84 Q4 2024 Q1 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 20 20 20 20
Slide 13: Claims development
Claims dak development 7 y)
Slide 14: Underlying claims ratio improved 30 basis points for the Group
3 Claims development Underlying claims ratio1 improved 30 basis points for the Group CMD 2024 Group underlying claims ratio "The underlying claims ratio is expected to be broadly stable to slightly improving towards 2027" -30 bps • Group underlying claims ratio of 72.0%, an improvement 72.3 69.3 72.
Slide 15: Private motor: Frequency increase slowing down, severity increase
2 Insurance revenue and portfolio Private motor: Frequency increase slowing down, severity increase due to new technology in modern cars Underlying frequency development, excluding weather effects +1% • Q1 2024 reported motor frequency affected by harsh weather • We estimate underlying claims freque
Slide 16: Large claims, weather claims, discounting and run-off
3 Claims development Large claims, weather claims, discounting and run-off Large claims, net Weather claims, net DKKm DKKm 1,400 1,400 1,274 1,142 1,200 1,001 1,200 Expected annual 933 Expected annual 1,000 1,000 level DKK 800m level DKK 800m 800 800 591 555 500 457 600 428 600 378 324 370 320 400 1
Slide 17: Investment activities
vee Investment activities
Slide 18: Investments – split in match and free portfolio
4 Investment activities Investments – split in match and free portfolio Total investments Portfolio split (in %) Match portfolio Scandinavian covered bonds, DKK 46bn Denmark 14 MATCH Norway 9 Total Investments (DKK 46bn) Total investments Sweden 23 DKK 62bn of DKK 62bn, hereof: 75% Match portfolio (
Slide 19: Tryg investment result – low risk remains key
4 Investment activities Tryg investment result – low risk remains key Key investments figures (DKKm) Q1 2025 Q1 2024 • Free portfolio developed positively in Q1 reporting an overall result of DKK Free portfolio 73 133 73m including a positive return from Government and in particular Covered Match po
Slide 20: Solvency and expenses
Solvency and expenses
Slide 21: Group operating capital generation of 19% in Q1 2025
5 Solvency and expenses Group operating capital generation of 19% in Q1 2025 Own funds (DKKm) 1,276 13,239 216 57 13,525 -1,264 • Solvency ratio at the end of Q1 2025 is 195% (Q4 2024: 2,929 3,040 Unrestricted Tier 1 196%). Restricted Tier 1 1,612 1,699 Own Funds (OF) are primarily impacted by Tier
Slide 22: Solvency ratio historical development
5 Solvency and expenses Solvency ratio historical development (%) CMD 2024 "Long term, the solvency ratio is expected to gravitate towards a less conservative level" 198 201 200 199 202 195 194 197 195 196 195 ~ 195 191 184 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 April 9 2025 2022 2022 2022 2022 2023
Slide 23: Solvency ratio sensitivities
5 Solvency and expenses Solvency ratio sensitivities Solvency ratio sensitivities (%) Interest rate risk is very low as function of our 209 200 201 matching strategy 195 198 196 195 192 194 194 189 190 181 Following de-risking in Q4 2024, Tryg has only two asset classes: covered & government bonds a
Slide 24: Expense ratio of 13.3% impacted by tight cost control
5 Solvency and expenses Expense ratio of 13.3% impacted by tight cost control Expense ratio, Group Expense ratio, key drivers in Q1 2025 13.5 13.4 13.5 13.6 13.3 13.3 13.3 • Expense ratio of 13.3% supported by a continued tight cost control • The low expense ratio is primarily driven by an efficient
Slide 25: Update on Strategy & Financial targets
Update on Strategy & Financial targets
Slide 26: Strategic focus towards 2027 anchored around three strategic pillars
6 Financial targets Strategic focus towards 2027 is anchored around three strategic pillars New IT organisation reduces cost Best practice Scored-Loss ratio Sales of pregnancy insurance (PA) in as 45% is now working methodology implemented in Private Denmark is growing fast, and strong Scandinavian,
Slide 27: Great growth in Pregnancy Insurance in Denmark
6 Financial targets Great growth in Pregnancy Insurance in Denmark and great conversion to child insurance Growth in pregnancy insurance, Denmark Conversion in child insurance, Denmark 37% Q1 2023 Q1 2024 Q1 2025 Strong sales growth in pregnancy insurance since Conversions from pregnancy insurance t
Slide 28: Financial and strategic targets for 2027
6 Financial targets Financial and strategic targets for 2027 28
Slide 29: It is important to know your investment case
6 Financial targets It is important to know your investment case ”Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.” John D. Rockefeller 29
Slide 30: Q1 2025 roadshows & conferences
7 Roadshows & conferences Q1 2025 roadshows & conferences Date Event Participants from Tryg Arranged by 11/04/2025 Copenhagen roadshow Johan Kirstein Brammer, CEO, Allan Kragh Thaysen, CFO, Mikael Kärrsten, CTO, Investor Relations Nordea 23/04/2025 Boston Roadshow Johan Kirstein Brammer, CEO, Gianan
Slide 31: Investor Relations
7 Roadshows & conferences Investor Relations Gianandrea Roberti Peter Brondt Robin Hjelgaard Løfgren Frederik Brink Ilze Karahona Head of Financial Reporting, SVP IR Director, Investor Relations Senior Director, Head of Investor Senior Analyst, Investor Relations Project manager, Investor Relations
Slide 32: Background material
Background material
Slide 33: Tryg at a glance
8 Background material Tryg at a glance As the world changes, we Tryg at a glance make it easier to be tryg • Leading market position: Tryg is the leading non-life ~6 million >6,600 ~2.2 million insurer in Scandinavia. We are the largest player in customers employees claims per year Denmark, the thir
Slide 34: Tryg has a long and proud history
8 Background material Tryg has a long and proud history, with the 2021 RSA acquisition 2022 pushing the boundaries even further Demerger 1 April Completed separation of RSA Scandinavia into 2018 DK, NO, SE 2005 TrygVesta is listed Tryg receives the final on the OMX Nordic approval of the Alka 1731 S
Slide 35: Market share of Scandinavian insurance market
8 Background material Market share of Scandinavian insurance market Scandinavian market share (as of Q4 2022) Danish market share (as of Q3 2023) 23% Tryg 18% 24% Tryg Topdanmark 40% If If Topdanmark Gjensidige 15% 4% Länsforsikringar Alm. Brand 5% Gjensidige 15% LB Forsikring 5% Other GF forsikring
Slide 36: Distribution of new sales 2024
8 Background material Distribution of new sales 2024 Private segment Distribution in the Scandinavian market 4% Distribution in the Scandinavian markets differs from 4% 7% many other insurance markets. 19% 14% Franchise 12% 27% Sales agents 4% 28% Customer service Agents 7% Customer Service Outbound
Slide 37: Gross premium split
8 Background material Gross premium split Group Insurance revenue by product 2024 Denmark Insurance revenue by product 2024 9% 9% Motor 27% Motor 11% 10% 31% Workers comp Workers comp Health and accident Health and accident Liability Liability Fire & property - private 5% Fire & property - private 2
Slide 38: Group financial metrics
8 Background material Group financial metrics Insurance revenue (DKKm) Combined ratio (%) 50,000 100.0 84.5 85.4 82.6 79.1 81.7 40,000 37,379 37,135 38,596 80.0 30,000 25,369 60.0 23,442 20,000 40.0 10,000 20.0 — 0.0 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Claims ratio (%) Expense ratio (%
Slide 39: Group financial metrics, Combined ratio
8 Background material Group financial metrics, Combined ratio Denmark (%) Norway (%) 100 100 92.3 91.7 92.3 86.8 87.2 86.8 85.0 80.5 81.6 81.8 80 80 60 60 40 40 20 20 0 0 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Sweden (%) 100 85.0 88.1 77.2 78.2 80 74.3 60 40 20 0 2020 2021 2022 2023 2024
Slide 40: Reserves and run-off split by line of business
8 Background material Reserves and run-off split by line of business Reserves by product Q1 2025 5% 8% 25% 7% Motor Workers comp Health and accident 7% Liability Fire & property - private Fire and property comm 16% Other 32% Run-off, net by products Q1 2025 (DKKm) 347 191 200 Motor 115 Workers comp
Slide 41: Tryg reinsurance programme
8 Background material Tryg reinsurance programme • Tryg has issued a per risk reinsurance program covering single large property claims. The maximum net exposure to a single claim is DKK 200m. If a claim exceeds DKK 200m the reinsurers will cover the part above DKK 200m. When a claim occurs Tryg wil
Slide 42: Things that you may not know
8 Background material Things that you may not know • Scandinavian economies have been performing better than most European countries for a long-time. The GDP growth y/y was approx. 2%, and unemployment rates remains much lower than European averages (2-3% in DK and NO). Government indebtedness is ar
Slide 43: IBM study on customer satisfaction within insurance
8 Background material IBM study on customer satisfaction within insurance Danish customers either completely or strongly agree Overall I am very satisfied with the services of my insurance company My insurance agent only sold me insurance coverage that I really needed My present insurance coverage o
Slide 44: Tryg embraces its vital role in society
8 Background material Tryg embraces its vital role in society, working with communities to make it easier to be ‘tryg’ 44
Slide 45: TryghedsGruppen and its member bonus
8 Background material TryghedsGruppen and its member bonus TryghedsGruppen bonus Bonus has a positive effect on retention ‘I expect to be in Tryg next year’ Denmark's ‘biggest’ family Have heard about member bonus 90% 8% 8% Have not heard about member Bonus 79% 6% 6% 6% 5% TryghedsGruppen’s highest
Slide 46: Macroeconomic forecast
8 Background material Macroeconomic forecast Denmark Norway 2024 2025 2026 2024 2025 2026 % % (realised) (forecast) (forecast) (realised) (forecast) (forecast) GDP growth 3.6 3.9 2.9 GDP growth 0.6 1.8 1.7 Private consumption 0.9 1.9 2.3 Private consumption 1.2 3.0 2.5 Unemployment 2.9 2.9 3.0 Unemp
Slide 47: Reported figures Q1 2025 and Consensus 2025-2027
8 Background material Reported figures Q1 2025 and Consensus 2025-2027 Q1 2025 2025 2026 2027 DKKm Reported Consensus Consensus Consensus Insurance revenue 9,768 40,558 42,282 43,814 Insurance service result 1,540 7,650 7,967 8,330 Net investment result 320 436 466 482 Other income and costs -369 -1
Slide 48: ESG ratings
8 Background material ESG ratings 48
Slide 49: Disclaimer
Disclaimer Certain statements in this presentation are based on the beliefs of our management as well as assumptions made by and information currently available to the management. Forward-looking statements (other than statements of historical fact) regarding our future results of operations, financ