Tryg (TRYG) Q1 2025 earnings summary

Executive summary

• Insurance service result rose to DKK 1,540m in Q1 2025, up from DKK 1,280m year-over-year, driven by revenue growth, strong Private segment performance, and lower large and weather claims.

• Combined ratio improved to 84.2% from 86.6% year-over-year, reflecting better claims management, cost control, and strong performance in Denmark and Sweden.

• Pre-tax result was DKK 1,491m; operating EPS DKK 2.09; return on own funds at 33.4%.

• Dividend per share for Q1 set at DKK 2.05; solvency ratio remains robust at 195%.

• Customer satisfaction reached 82, close to the 2027 target of 83, with improvements in onboarding and claims processes.

Financial highlights

• Insurance revenue grew 3.7% in local currencies to DKK 9,768m, mainly from price adjustments in the Private segment.

• Net investment result was DKK 320m, supported by strong returns from covered and government bonds.

• Expense ratio at 13.3%, reflecting cost control and top-line growth.

• Return on equity after tax reached 11.5% (Q1 2024: 7.9%).

• Operating earnings per share increased to DKK 2.09 (Q1 2024: DKK 1.54).

Outlook and guidance

• Targeting a combined ratio of around 81% and insurance service result of DKK 8.0-8.4bn by 2027.

• ROE/ROOF goal set between 35% and 40% for 2027.

• Plans to distribute DKK 17–18bn to shareholders by 2027, including a DKK 2bn buyback.

• Underlying claims and expense ratios expected to remain stable or slightly improve towards 2027.

• Full-year tax rate for 2025 anticipated at approximately 24%.