Tryg (TRYG) CMD 2024 summary

Strategic direction and financial targets

• Launched a new three-year strategy focused on scale, simplicity, technical excellence, and commercial excellence, aiming for a combined ratio around 81% and an Insurance Service Result (ISR) of DKK 8.0–8.4 billion by 2027, 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.

• Solvency ratio expected to be around 195 at end of 2024 after de-risking and buyback, with a long-term plan to gradually move to a less conservative solvency position.

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

Business transformation and operational initiatives

• Achieved significant scale through integration of major acquisitions, notably RSA Scandinavia, and shifted business mix to 93% retail and commercial lines for higher profitability and lower volatility.

• Three strategic pillars: Scale & Simplicity, Technical Excellence, and Customer & Commercial Excellence, with initiatives expected to contribute DKK 500m, DKK 300m, and DKK 200m respectively to ISR by 2027.

• IT simplification includes decommissioning applications, reducing single-country systems from 56% to under 30%, and consolidating vendors for cost and quality gains, targeting DKK 150m ISR from IT efficiencies.

• Automation of claims handling and back-office operations, aiming for DKK 100m ISR from claims automation and DKK 100m from back-office automation, with AI deployment to increase straight-through processing from 45% to over 55%.

• Commercial initiatives focus on scaling successful Swedish personal accident and motor products to Denmark and Norway, boosting online sales to small commercial customers, and growing partnership channels.

Sustainability and ESG commitments

• Sustainability and ESG are integral to the 2027 strategy, with targets to reduce CO2 emissions per claim by 6% and ongoing efforts in repair/reuse of auto parts and climate adaptation.

• Joined the Science Based Targets initiative (SBTi) and received a triple-A MSCI ESG rating, aiming for 60% of product categories to be climate-adapted by 2027.

• Strong focus on people, diversity, and talent retention, with female leadership rising from 35% to 43% over five years and emphasis on employee engagement and digital literacy.

• Sustainability integrated into core business, with focus on climate-friendly claims, prevention, and community engagement.

• Commitment to climate risk communication and prevention, shifting from absolute to intensity targets for emissions.