Tryg’s Supervisory Board has today approved the interim report for Q1 2020.

Premium growth of 8.9% (6.0% excluding Alka in Q1 2019), technical result of DKK 672m (DKK 626m) positively impacted by developments in the core business, lower large claims and related Alka synergies. The outbreak of COVID-19 had a net negative impact of DKK -40m driven by travel insurance claims of DKK -115m (DKK -255m before reinsurance) partly offset by lower frequencies in other lines of business (including, but not only, motor insurance) of DKK 75m. In an announcement published 27 March, it was stated that the investment income Q1 to date was negative by approximately DKK -1,100m. The realised investment income for Q1 was DKK -980m (DKK 353m) driven by extremely negative financial markets characterized by losses on most asset classes. Profit before tax of DKK -372m (DKK 930m). In the aforementioned announcement, Tryg confirmed expectations of a DKK 3.3bn technical result for 2020 but suspended the ROE target and moved to full-year dividend decision for 2020 (with an unchanged dividend policy), as a result of high uncertainty in the financial markets since the outbreak of COVID-19. Solvency ratio of 159.

Financial highlights Q1 20
20

  • Premium growth of 8.9% (6.0% excluding Alka) in local currencies
  • Technical result of DKK 672m (DKK 626m) driven by a combined ratio of 88.0
  • Underlying claims ratio (Private and Group) improved by 0.4 and 0.5
  • Expense ratio of 14.1 (14.0)
  • Investment return on free portfolio DKK -713m (DKK 373m)
  • Total Investment return of DKK -980m (DKK 353m)
  • Profit before tax of DKK -372m (DKK 930m)
  • Tryg moves to full-year dividend payment for 2020 (as opposed to quarterly dividend)
  • Solvency ratio of 159 end of Q1 and approval of updated partial internal model on April 20 leading to a reduction of the solvency capital requirement by approximately DKK400m

Customer highlights Q1 2020

  • Transactional Net Promotor Score (TNPS) at an all-time high level of 69 (67)
  • Number of products per customer increased to 3.9 (3.8)
  • For the fifth year in a row TryghedsGruppen decided to pay member bonus of 8%

Statement by Group CEO Morten Hübbe:
I am very pleased that Tryg has confirmed its robust business model during this period, delivering a solid technical result somewhat higher than in Q1 2019. Like many other companies, Tryg has been impacted by the COVID-19 outbreak, especially on the investment result, but also in our travel insurance department, which in Q1 has served approximately 30,000 customers in Denmark, Norway and Sweden with COVID-19 related claims (travel cancellations and repatriation), in addition to the normal Q1 travel claims. Travel insurance claims related to COVID-19 cost DKK 255m gross (before reinsurance) and DKK 115m net (after reinsurance).

At the same time, we notice a positive development in other lines of business during the COVID-19 outbreak as a result of lower economic activity and the lock-down. In March, we have experienced 15% fewer claims in motor and contents insurance (fewer burglaries), 20% fewer claims in accident insurance and 35% fewer claims in health insurance (after the healthcare system locked down) in Denmark.

Overall, this does not change the fact that COVID-19 affects Tryg negatively in Q1 as the high travel insurance claims has been only partly mitigated by lower claims frequencies reporting an overall net negative impact of DKK -40m. Additionally, Tryg is reporting a negative investment result of almost DKK -1bn.

Finally, I want to highlight that we are proud that in a period with extraordinary many calls (during the last two weeks of March, our travel insurance departments received the same amount of calls that we normally receive in the entire Q1) we experience the highest customer satisfaction ever. And again, this year, the customers can look forward to receiving a bonus from TryghedsGruppen. For the fifth year running, TryghedsGruppen announced a member bonus, equivalent to 8% of premiums paid, which means that both Alka and Tryg customers, or every 4th citizen in Denmark, receive a bonus amounting to a billion in total during 2020.

Conference call

Tryg hosts a conference call today at 10:00 CET. CEO Morten Hübbe and CFO Barbara Plucnar Jensen 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 82 33 31 94

UK participants:            +44 (0) 333 300 9263

US participants:            +1 833 526 8396

All Q1 material can be downloaded on tryg.com/en/investor shortly after the time of release.

Attachment

  • 08_TRYG_2020_Q1 report

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