Tryg (TRYG) Q2 2024 earnings summary

Executive summary

• Insurance revenue grew 3.9% year-over-year in Q2 2024, driven by price adjustments in Private and Commercial segments, while Corporate saw a planned top-line decline as part of portfolio rebalancing.

• Insurance service result reached DKK 2,212m, supported by improved underlying performance and lower large and weather claims compared to Q2 2023.

• Combined ratio improved to a record low of 76.8%, with the best performance in Sweden and benefits from profitability initiatives.

• Customer satisfaction rebounded to 86, reflecting improved onboarding, communication, and claims processing automation.

• Dividend per share increased to DKK 1.95, and the solvency ratio improved to 195.

Financial highlights

• Insurance service result for Q2 was DKK 2,212m, with insurance revenue at DKK 9,545m, up from DKK 9,200m in Q2 2023.

• Pre-tax result stood at DKK 2,129m; operating EPS was 2.93; ROE reached 44%.

• Combined ratio: 76.8% (Q2 2024), improved from 80.9% (Q2 2023); claims ratio: 63.2% (Q2 2024), down from 67.6%.

• Expense ratio at 13.6%, in line with guidance and supported by RSA synergies.

• Investment result was DKK 347m, mainly from positive returns in equities and covered bonds.

Outlook and guidance

• Full-year 2024 guidance for insurance service result reaffirmed at DKK 7.2–7.6bn, with a combined ratio at or below 82% and expense ratio around 13.5%.

• Run-off result guidance remains at 3%-5% for 2024; weather and large claims guidance at DKK 800m annualised.

• RSA synergies targeted at DKK 900m for 2024.

• Volatile macroeconomic factors such as interest rates, currency movements, and inflation may impact results.

• Positive top-line growth expected in Private and Commercial, with Corporate focusing on profitability.