Tryg (TRYG) CMD 2024 summary

Strategic direction and leadership

• New CEO and executive board appointed in 2023, blending experience and competence to lead towards 2027 targets.

• Launched a new three-year strategy focused on scale, simplicity, technical and commercial excellence, aiming for a combined ratio around 81% and an Insurance Service Result (ISR) of DKK 8.2 billion by 2027, with a target range of DKK 8-8.4 billion, assuming current macro conditions.

• Return on own funds (ROOF) targeted at 35-40% by 2027, supported by a shift to a less risky investment portfolio and continued focus on retail and commercial lines.

• Shareholder remuneration set at DKK 17-18 billion for 2025-2027, including ordinary and growing dividends and a DKK 2 billion share buyback announced at the event.

• Vision centers on leveraging scale for technical and commercial excellence, with a focus on retail insurance and operational efficiency.

2024 performance and achievements

• Consistently delivered on financial targets for over a decade, with 2024 projected combined ratio ≤82%, insurance service result DKK 7.2-7.6bn, and ROOF ≥25%.

• Achieved strong results despite macroeconomic headwinds, including inflation, currency fluctuations, and extreme weather.

• Successfully integrated RSA Scandinavia, realizing targeted synergies and scaling up through acquisitions.

• Retail share of insurance revenue increased to ~93%, reducing risk and volatility.

• Maintained attractive shareholder returns, with dividend per share in 2023 above pre-acquisition levels.

2027 strategy and financial targets

• Most ambitious targets in company history: combined ratio ~81%, insurance service result DKK 8.0-8.4bn, ROOF >35-40%.

• Shareholder remuneration focus: DKK 17-18bn total, including DKK 15-16bn ordinary dividends and DKK 2bn extraordinary share buyback for 2025-2027.

• Strategic pillars: Scale & Simplicity, Technical Excellence, Customer & Commercial Excellence.

• Initiatives in each pillar expected to contribute DKK 500m, DKK 300m, and DKK 200m respectively to insurance service result by 2027.

• Track record of delivering on previous financial and strategic targets, with all 2024 goals on track except for a slight shortfall in customer satisfaction.