Tryg A/S – Q2 and H1 report 2023
Tryg’s Supervisory Board has today approved the interim report for Q2 and H1 2023*.
Tryg reported a significantly higher Q2 pre-tax results of DKK 1,229m (DKK 507m) driven by a satisfactory insurance service result and positive capital markets development. The insurance service result of DKK 1,759m (DKK 2,021m) was driven by a positive top-line development, good development in the core business (including the delivery of the RSA Scandinavia synergies) and a higher level of interest rates which reduces claims costs (all else being equal). The result was significantly impacted by higher large and weather claims, and highly adverse currencies development. The combined ratio was 80.9 (78.7). The underlying claims ratio for the Group improved by 0.6 percentage points, while it showed a modestly negative development of 0.3 percentage points for the Private segment in line with previous quarters. The investment return for the quarter was DKK 53m, primarily driven by positive returns on equities and fixed income asset classes. A solvency ratio of 199 was reported at the end of the quarter. Tryg reports a Q2 Operating EPS of 1.77 and pays a Q2 DPS of 1.85.
* All comparative figures are restated to IFRS 17 including the pro-forma figures for H1 2022. The comparison figures for H1 2022 are pro-forma IFRS 17 disclosed at the end of March and published on Tryg.com
Financial highlights Q2 2023
- Insurance revenue growth (Premium growth) of 3.9% (6.0%) in local currencies
- Insurance service result (Technical result) of DKK 1,759m (DKK 2,021m)
- Combined ratio of 80.9 (78.7)
- Underlying claims ratio (Group) improved by 0.6
- Large claims at 4.5% (3.1%) and weather claims at 2.0% (0.9%)
- Expense ratio of 13.3 (13.3)
- Total investment return of DKK 53m (DKK -948m)
- RSA related synergies of DKK 77m
- Profit before tax of DKK 1,229m (DKK 507m)
- Quarterly dividend of DKK 1,174m or DKK 1.85 per share and solvency ratio of 199
Financial highlights H1 2023
- Insurance revenue growth (Premium growth) of 4.3% in local currencies
- Insurance service result (Technical result) of DKK 3,233m (DKK 3,035m)
- Combined ratio of 82.4 (83.7)
- Underlying claims ratio (Group) improved by 0.7
- Large claims at 3.1% (2.9%) and weather claims at 1.9% (1.8%)
- Expense ratio of 13.3 (13.5)
- Total investment return of DKK 220m
- RSA related synergies of DKK 141m
- Profit before tax of DKK 2,416m
- Dividend per share of DKK 3.70 (DKK 1.85 paid in April and DKK 1.85 to be paid on 14 July 2023)
Customer highlights Q2 2023
- Customer satisfaction score of 86 (85 in Q2 2022)
- For the eighth year in a row, TryghedsGruppen decided to pay member bonus. For 2022, this amounts to 6% of premiums to be paid during the autumn of 2023
Statement by Group CEO Johan Kirstein Brammer:
We have reported satisfactory financial results against a very challenging economic backdrop characterized by persistent high inflation and weakened currencies in Norway and Sweden, and volatile financial markets.
Tryg is here to mitigate risks and provide piece of mind for our customers. A high level of weather events was reported in Q2, including a cloudburst in Denmark, I am pleased to see that we have been able to guide and help our customers safely through.
Our insurance service result totaled DKK 1,759m including a significant large claim that had a total cost of approximately DKK 225m and landslide in Halden (Norway) which amounted to slightly less than DKK 60m. The underlying performance developed positively despite higher level of travel insurance claims and also a significant increase in the cost of automobile spare parts in Norway and Sweden driven primarily by the adverse development of these two currencies.
We are pleased to announce a quarterly dividend per share of 1.85, an increase of almost 20% from Q2 2022 driven by the higher earnings power from the enlarged group, synergies delivery and improvements in the underlying business.
Conference call
Tryg hosts a conference call today at 10:00 CET. CEO Johan Kirstein Brammer, CFO Barbara and CTO Mikael Kärrsten 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:
DK: +45 78 76 84 90
UK: +44 203 769 6819
US: +1 646 787 0157
PIN: 560768
All Q2 and H1 material can be downloaded on tryg.com/en shortly after the time of release.
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