Tryg posts 84.2% combined ratio in strong Q1 beat

By Ryan Hewlett

April 11 - (The Insurer) - Danish insurer Tryg kicked off the European P&C first-quarter results season on Friday with a better-than-expected combined ratio of 84.2% and headline profit that materially exceeded analyst expectations.

Tryg’s combined ratio for the quarter improved by 2.4 percentage points compared with the 86.6% reported in Q1 2024, driven by a benign claims environment and lower weather-related claims in Denmark and Sweden.

KBW’s Michele Ballatore said in a circular on Friday that the reported headline combined ratio was “quite materially below” consensus expectations of 85.1%.

Tryg reported an insurance service result of 1.54 billion Danish crowns ($232.3 million), an increase of 20.3% on Q1 2024, with the result driven by growth of 3.7% in local currencies, a benign level of weather claims and continued underlying profitability improvement.

Pre-tax profit rose 48% year on year to 1.49 billion Danish crowns while profit after tax was 1.12 billion Danish crowns, up 44.1% on the 776 million Danish crowns reported in the first quarter of 2024. Tryg’s headline net profit marked a 25% beat versus consensus.

The investment result also beat consensus at 320 million Danish crowns, up from 112 million Danish crowns in the prior-year period.

“Overall, we think that today's results confirm our key thesis in these volatile times: Tryg's performance remains solid and the stock confirms its defensive nature,” said KBW’s Ballatore.