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Introduction & Market Context
Tryg A/S (CPH:TRYG) presented its Q2 2025 results on July 11, 2025, showcasing continued operational improvements across its Scandinavian insurance business. The company reported an insurance service result of DKK 2,307 million, up 4.3% from the same period last year, while maintaining its position as a market leader in Denmark and a significant player in Norway and Sweden.
The results come amid ongoing regulatory attention, with the Danish Consumer and Competition Authority (DCCA) having published a report on April 1, 2025, regarding the Danish non-life private insurance market. Despite this scrutiny, Tryg maintains that its efficient business model will continue to deliver healthy returns to shareholders.
As shown in the following financial highlights, Tryg delivered solid performance across key metrics:
Quarterly Performance Highlights
Tryg reported insurance revenue growth of 4.0% in local currencies for Q2 2025, driven primarily by price adjustments. The combined ratio improved to 77.2% from 78.8% in the restated Q2 2024 figures, reflecting better underwriting performance and cost control.
The company’s expense ratio remained competitive at 13.5%, slightly better than the 13.6% reported in Q2 2024, highlighting Tryg’s operational efficiency as a key competitive advantage in the Scandinavian insurance market.
Customer satisfaction also showed improvement, with the KPI reaching 82 in Q2 2025, up from a baseline of 81 in 2024, and progressing toward the 2027 target of 83. This reflects the company’s ongoing focus on enhancing claims processes and employee training.
The following chart illustrates the insurance revenue growth across different segments:
Segment and Geographical Performance
The Private segment led growth with a 4.4% increase in insurance revenue in local currencies, while the Commercial segment showed a recovery with 3.2% growth, following portfolio rebalancing initiatives conducted during 2024.
Particularly noteworthy is the continued improvement in Norway, where the combined ratio improved by 6 percentage points year-over-year to 82.1%, reflecting the success of profitability initiatives implemented in recent years.
As shown in the following segment breakdown, the Private segment delivered an insurance service result of DKK 1,429 million with a combined ratio of 79.2%, while the Commercial segment contributed DKK 877 million with a combined ratio of 73.0%:
From a geographical perspective, all regions showed solid performance, with particularly strong improvements in Norway:
The positive trajectory in Norway is clearly illustrated in the following chart, showing the consistent improvement in combined ratio over recent quarters:
Claims Development and Underwriting Performance
Tryg’s underlying claims ratio improved by 30 basis points to 66.5% in Q2 2025, compared to 66.8% in Q2 2024. This improvement was supported by better claims ratios across all segments, with the Private segment showing a 20 basis point improvement.
The company also benefited from significantly lower large claims and weather claims in Q2 2025 compared to the same period last year. Large claims amounted to DKK 31 million, down from DKK 555 million in Q2 2024, while weather claims totaled DKK 60 million, compared to DKK 104 million in the previous year.
The following chart illustrates the improvement in the underlying claims ratio:
Investment Portfolio and Results
Tryg’s investment result for Q2 2025 was DKK 110 million, significantly lower than the DKK 538 million reported in Q2 2024. This decline was primarily due to less favorable performance in the match portfolio and other financial income and expenses.
The company maintains a conservative investment approach, with 93% of its fixed income portfolio rated AAA. The total investment portfolio of DKK 60 billion is split between a match portfolio (75%) that mirrors insurance liabilities and a free portfolio (25%) consisting primarily of covered and government bonds.
The following chart provides a detailed breakdown of Tryg’s investment portfolio:
Capital Position and Shareholder Returns
Tryg maintained a strong capital position with a solvency ratio of 199% at the end of Q2 2025, up from 195% in the previous quarter. The company generated 20% in operating capital during the quarter, supporting its ability to deliver consistent shareholder returns.
The Board of Directors declared a dividend of DKK 2.05 per share, consistent with the dividend announced in Q1 2025. This continues Tryg’s track record of regular dividend payments, which remains a cornerstone of its shareholder return policy.
The following chart illustrates the development of Tryg’s solvency position:
Strategic Initiatives and 2027 Targets
Tryg outlined its strategic focus areas through 2027, centered on three key pillars: Scale & Simplicity (NASDAQ:SMPL), Technical Excellence, and Customer & Commercial Excellence. These initiatives are expected to contribute a combined DKK 1 billion to the insurance service result by 2027.
The company is making progress on its new underwriting platform, with adoption increasing from 18% to 42% in Denmark, and on track to reach 80% by 2027. This initiative alone is expected to contribute approximately DKK 50 million to the gross insurance service result through improved underwriting.
As shown in the following strategic overview, each pillar has specific targets and initiatives:
Tryg has also established clear financial and strategic targets for 2027, including a combined ratio of approximately 81%, an insurance service result of DKK 8.0-8.4 billion, and a dividend range of DKK 17-18 billion:
Forward-Looking Statements
Looking ahead, Tryg expects a broadly stable to slightly improving underlying claims ratio toward 2027. The expense ratio is also expected to remain stable to slightly improving, reinforcing the company’s competitive cost position.
The solvency ratio is anticipated to gravitate toward a less conservative level over time, potentially freeing up capital for additional shareholder returns or strategic investments.
Customer satisfaction is targeted to reach 83 by 2027, up from the current 82, as the company continues to focus on enhancing customer experience and service quality.
These targets align with Tryg’s Q1 2025 guidance, showing consistency in the company’s strategic direction and financial objectives. The Q2 results demonstrate continued progress toward these goals, with particularly strong improvements in operational performance offsetting the lower investment returns.
Full presentation:
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