TGVSF - Tryg A/S (TGVSF) Q4 2023 Earnings Call Transcript
2024-01-25 10:10:25 ET
Tryg A/S (TGVSF)
Q4 2023 Earnings Conference Call
January 25, 2024, 4:00 AM ET
Company Participants
Gianandrea Roberti - Head, Investor Relations
Johan Brammer - Group Chief Executive Officer
Allan Thaysen - Group Chief Financial Officer
Mikael Karrsten - Group Chief Technical Officer
Conference Call Participants
Asbjørn Mørk - Danske Bank
Jakob Brink - Nordea
Youdish Chicooree - Autonomous Research
Jan Erik Gjerland - ABG
Alexander Evans - Citi
Faizan Lakhani - HSBC
Ashik Musaddi - Morgan Stanley
Vinit Malhotra - Mediobanca
Martin Gregers Birk - SEB
Presentation
Gianandrea Roberti
Good morning, everybody. My name is Gianandrea Roberti. I’m Head of Investor Relations at Tryg. We published our full year results earlier this morning and I have here with me Johan Brammer, Group CEO; Allan Thaysen, Group CFO; and Mikael Karrsten, Group CTO to present the figures. I would just like to remind everybody to ask one question at a time to allow the highest number of questions from participants.
With these words, over to you, Johan.
Johan Brammer
Thanks a lot, Gian, and I will dive directly into slide three with the financial highlights. Tryg is today reporting an Insurance Service Result for Q4 of DKK1.654 billion versus DKK1.472 billion last year, primarily driven by an improved underlying performance and tight cost control. The Insurance Service Result was impacted by higher than normal weather claims and a substantial drop in interest rates in the quarter.
Premiums growth was 6.3% for the Group, once again driven by a good development in the Private and Commercial segments. In this context, price increases play a significant role and remain key to continue to fight off inflation.
The Group underlying claims ratio improved by 50 basis points, while Private deteriorated modestly in line with previous quarters. The Private performance is impacted by an increase in repair costs for auto spare parts in Norway and Sweden, driven by currencies, but also a slight increase in motor frequencies flagged previously and as expected in a post-COVID normalization. This has been taken care of with price increases and tightening conditions, and we’ll get back to that later on in the presentation.
The investment result ended up at DKK146 million with positive developments in the free and match portfolio, somewhat offset by a negative value adjustment in the inflation swap in a quarter characterized by a substantial drop in inflation expectations. The asset mix has remained largely unchanged.
The pre-tax result is just below DKK1.4 billion for the quarter and around DKK5 billion for the full year, and this drives a return on own funds, the so-called ROOF, of just about 30% in the quarter and approximately 25% for the full year. Implicitly, Tryg pays a Q4 DPS of DKK1.85, and by the end of January, we expect to complete the DKK1 billion buyback launched after the Q3 results.
The solvency ratio ended at 197 at the end of 2023, a comfortable level supportive of additional future capital repatriations. We’re pleased to note that the ordinary dividend per share for 2023 is around 6% higher than before the acquisition of RSA and subsequent capital raise....
Tryg A/S (TGVSF) Q4 2023 Earnings Call Transcript