Tryg A/S (TGVSF) Q1 2025 Earnings Call Transcript

2025-04-11 20:35:36 ET

Tryg A/S (TGVSF)

Q1 2025 Earnings Conference Call

April 11, 2025 4:00 AM ET

Company Participants

Gianandrea Roberti - Head, Investor Relations

Johan Brammer - Group Chief Executive Officer

Mikael Karrsten - Group Chief Technical Officer

Allan Thaysen - Group Chief Financial Officer

Conference Call Participants

Asbjorn Mork - Danske Bank

Faizan Lakhani - HSBC

Mathias Nielsen - Nordea

Michele Ballatore - KBW

Martin Gregers Birk - SEB

Jan Erik Gjerland - ABG

Alex Mackenzie - BNP Paribas Exane

Faizan Lakhani - HSBC

Daniel Wilson-Omordia - Morgan Stanley

Youdish Chicooree - Autonomous Research

Presentation

Gianandrea Roberti

Good morning, everybody. My name is Gianandrea Roberti. I'm Head of Financial Reporting at Tryg. We published our Q1 figure earlier this morning. And I have here with me Johan Brammer, our Group CEO; Allan Thaysen, our Group CFO; and Mikael Karrsten, our Group CTO, to present the figures. I would like to remind all participants that when we open up for the Q&A, it would be one question at a time to allow everybody to ask questions.

And with these words, over to you, Johan.

Johan Brammer

Thanks a lot, Gian. And good morning to everybody on the call from me as well. I'd like to start just by commenting on the revenue growth, which for Q1 is just shy of 4%. It ends up at 3.7%, primarily driven by price adjustments in the private segment in order to offset the continued inflationary pressures. The insurance service result for Q1 is DKK1.54 billion, which is substantially above last year's level. This is primarily driven by a mild winter, resulting in lower claims costs.

The combined ratio for the Group is 84.2% with good performance in Denmark and Sweden and an improving trend in Norway. The Group underlying claims ratio improved by 30 basis points, while private improved by 10 basis points. The improvements are underpinned by our profitability initiatives across the board.

The overall investment result was satisfactory at DKK320 million, especially in a fairly volatile period with often contradictory macroeconomic news flows. We're reporting a pre-tax result just below DKK1.5 billion, DKK1,491 million to be precise. A return on own funds of 33.4%, and we pay a dividend per share of DKK2.05. The solvency ratio is 195% as per end of Q1.

With that, I move to page five on the customer satisfaction. And customer satisfaction remains very important for Tryg and we are satisfied to achieve a Q1 level of 82 against an overall Capital Market Day target of 83 in 2027. It is worthwhile to remind everybody that we have now fully included our Swedish business in the baseline of 81 for 2024. We see a strong link, as always, between customer satisfaction and customer retention, and this is coupled of course, with our low distribution costs and level of profitability. And the main driver, the main driver of the improvement in Q1, is our Swedish business, where there's an intensified focus on customer satisfaction following the full integration of Trygg-Hansa.

With that, I move to slide six. And I guess the previous slide on customer satisfaction presents a fairly adequate bridge to a very recent event, namely the publication of a report on the Danish non-life insurance industry by the Danish Consumer and Competition authorities. I'd like to start out by saying, and this is important, that we do welcome a good public debate on our industry, recognizing the role and importance that it plays in the society. As it seems like the possible outcome of an eventual investigation has worried some of you on the call here, we deemed it important to remind you about some specific facts around this topic....

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