TGVSF - Tryg A/S (TGVSF) Q1 2024 Earnings Call Transcript
2024-04-17 13:20:18 ET
Tryg A/S (TGVSF)
Q1 2024 Results Conference Call
April 17, 2024 4:00 AM ET
Company Participants
Gianandrea Roberti - Investor Relations Officer
Johan Brammer - Group CEO & Member of Executive Board
Mikael Karrsten - Group Chief Technical Officer & Member of Executive Board
Allan Thaysen - CFO & Member of Executive Board
Conference Call Participants
Asbjorn Mork - Danske Bank
Tryfonas Spyrou - Berenberg
Johan Strom - Carnegie
Vinit Malhotra - Mediobanca
Faizan Lakhani - HSBC
Alexander Evans - Citi
Jan Gjerland - ABG
Martin Birk - SEB
Presentation
Gianandrea Roberti
Good morning, everybody. My name is Gianandrea Roberti. I'm Head of Investor Relations at Tryg. We published our Q1 results earlier this morning and I have here with me Johan Brammer, Group CEO; Allan Thaysen, Group CFO; Mikael Karrsten, Group CTO to present the figures. Before that, I just would like to remind everybody to ask one question at a time to allow the highest number of question from participants.
With these words, over to you, Johan.
Johan Brammer
Thanks a lot, Gianandrea. And I will go straight to Slide 3 with the financial highlights. Tryg is today reporting a solid insurance service result of DKK 1.275 billion in Q1 despite a harsh Scandinavian winter and adverse large claims experience weighing negatively on the result. The sum of weather and large claims was more than DKK 180 million higher than a normalized Q1. And as for comparison, the sum of weather and large claims was very favorable in Q1 last year being more than DKK 200 million below a normalized level for the first quarter of the year. Insurance revenues grew 4.8% in Q1 with the entire growth coming from the Private and Commercial segment and driven fully by price increases to continue to offset the inflationary pressures. The Corporate segment saw a drop in top line driven by an intense focus on profitability.
Tryg is reporting a combined ratio of 86.6% with the group underlying claims ratio improving by 50 bps while the Private underlying claims ratio deteriorates by 50 bps primarily driven by increased motor frequencies. It is evident that profitability improvements in Commercial and Corporate have been noteworthy considering the private developments. The investment result was DKK 117 million driven primarily by good equities performance and narrowing covered bond spreads in the quarter. Asset mix has remained virtually unchanged for the quarter. We report a return on own fund, the so-called ROOF, of 21% in the most seasonally challenging quarter. And I'm very pleased that Tryg pays a Q1 dividend per share of DKK 1.95, which is an increase of more than 5% compared to last year. The solvency ratio was 191% at the end of the quarter supportive of future capital returns.
Turning to the next page on customer highlights. We continue to have a strong focus on customer satisfaction as we do see a clear link to retention and thereby our distribution cost and overall profitability. In Q1 2024 we reported a customer satisfaction score of 85 against 86 in the same quarter last year. Price adjustments and a more challenging claims mix with many motor damages to assess had dragged down the customer satisfaction slightly. This is not exactly unexpected as firstly, price adjustments for natural reasons have some impact and secondly, also because claims related to water and buildings have a much more complicated claims process, which inevitably has a negative impact on the customer satisfaction for the group. We continue to be very focused on customer satisfaction and I'm confident it will improve going forward....
Tryg A/S (TGVSF) Q1 2024 Earnings Call Transcript