Tryg A/S – Interim report Q2 and H1 2015

 | Quelle: Tryg A/S Tryg A/S

Tryg’s Supervisory Board has today approved the interim report for Q2 and H1 2015.

Tryg delivered a robust return on equity of 21.9% in Q2 despite a negative investment market, and pays out a semi-annual dividend of DKK 2.50 per share. Satisfactory technical result with a minor underlying improvement and reduced costs in a competitive market. Continued positive development in Tryg’s reported customer targets.  

Financial highlights Q2 2015 

  • Profit after tax of DKK 580m (DKK 869m) – where Q2 2014 was impacted by one-off effects of DKK 135m before tax.
  • Technical result of DKK 825m (DKK 941m) - slightly better than Q2 2014 before one-off effects of DKK 135m.
  • Combined ratio of 82.2 (80.7) - an improvement of 1.3 percentage points, adjusted for one-off effects of 2.8% in Q2 2014.
  • Drop in premium growth of 1.4% in local currencies (-1.2%) affected by strong competition and loss of large Corporate accounts.
  • Expense ratio of 15.2 (12.6) – an improvement of 0.2 percentage points, adjusted for one-off effects in Q2 2014.
  • Negative investment return of DKK 84m (DKK 259m) influenced by losses on bond portfolio.
  • Return on equity of 21.9% (32.1%) p.a. after tax.
  • Semi-annual dividend of DKK 2.50 per share.


Financial highlights H1 2015  

  • Profit after tax of DKK 1,105m (DKK 1,324m) – where H1 2014 was impacted by one-off effects.
  • Technical result of DKK 1,254m (DKK 1,464m).
  • Combined ratio of 86.4 (84.9) - an improvement of 0.1 percentage points, adjusted for one-off effects in H1 2014.
  • Lower interest rate level impacted combined ratio negatively.
  • Drop in premium growth of 0.9% in local currencies (-1.6%) – an improvement of 0.7 percentage points.
  • Expense ratio of 15.4 (14.2) – an improvement of 0.2 percentage points, adjusted for one-off effects in H1 2014,
  • Investment return of DKK 177m (DKK 348m) influenced by high return on equities.
  • Return on equity of 20.9% (24.5%) p.a. after tax.

Customer highlights Q2 2015 

  • NPS improved from 11 at CMD in November 2014 to 20.
  • Retention rate improved from 87.9 to 88.0.
  • Customers with three or more products increased from 56.3% to 56.6%.
  • Tryg’s Swedish Corporate business voted the best company in Sweden by the insurance brokers for the third year running.
  • Conditional approval of TryghedsGruppen’s members’ bonus scheme by the Danish Business Authority, subject to final approval at the representative meeting in August 2015.


Statement by Group CEO Morten Hübbe:

In Q2 we delivered a slightly improved technical result, increased our earnings and reduced costs when adjusted for one-off effects during the prior-year period. We have thus strengthened our underlying operations in a competitive market.

Despite a negative investment market characterised by low, albeit increasing interest rates and an unsettled European economy, two factors which are impacting our results negatively, we are delivering a robust return on equity and paying out our first semi-annual dividend.

The current efficiency programme will be delivering total savings of DKK 750m and is progressing according to plan; savings of DKK 150m are expected to be realised this year, increasing to DKK 375m in 2017.

Following the launch of our new accident insurance, we have now introduced differentiated pricing of all our core products. This is strengthening our competitive position, boosting sales and improving profitability. However, we are seeing a slight increase in claims inflation, and we will therefore continue our efforts to strike a sustainable balance between price and inflation.

Also, we are successfully working towards achieving the customer targets announced at our Capital Markets Day in November 2014. Our Net Promoter Score and the number of customers with three or more products are both increasing. In Q2, a slight decline in retention rates was reported in Norway, which was, however, offset by an increase in Denmark. This is indeed excellent news, as it means that Tryg's customers are increasingly recommending us to others, staying with us for longer and taking out more of our insurance products.

Conference call
Tryg hosts a conference call on the day of the release at 9:30 CET. CEO Morten Hübbe and CFO Tor Magne Lønnum will present the results in brief followed by a Q&A session. The conference call will be held in English.

Conference call details:

Danish participants: +45 35 44 55 83
UK participants:       +44 (0) 203 194 0544
US participants:       +1 855 269 2604

All Q2 materiel can be downloaded on http://tryg.com/en/investor/downloads/index.html shortly after the time of release.

 
Additional information:

For further information, please contact:

Anhänge

08_2015 Tryg interim report Q2 and H1 2015.pdf

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