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Investing.com -- Moody’s Ratings has affirmed Tryg Forsikring A/S’s A1 insurance financial strength rating (IFSR) and changed the outlook to positive from stable, the rating agency announced Thursday.
The rating agency also affirmed Tryg’s long-term issuer ratings at A2, subordinated notes at A3(hyb), and perpetual restricted Tier 1 capital notes at Baa3(hyb).
Moody’s cited Tryg’s franchise strength and market position as factors enabling the company to maintain outstanding underwriting profitability. The positive outlook also reflects recent reductions in product and asset risk that support Tryg’s capital adequacy.
Despite ambitious shareholder return targets, Moody’s believes Tryg will maintain resilient capitalization, benefiting from strong capital generation and low sensitivity to financial market volatility.
The ratings affirmation recognizes Tryg’s position as the second largest insurance franchise in the Nordic property and casualty market, with strong market positions in Denmark, Norway and Sweden.
Tryg has delivered consistent underwriting profits with combined ratios below 85% in recent years despite high claims inflation and increased claims frequencies. In 2024, the group reported a 14% increase in insurance service result to DKK7.3 billion, alongside an improved combined ratio of 81.7%, compared to 82.8% in the prior year.
The company maintains a conservative investment approach with 95% of its portfolio allocated to high-quality covered and government bonds.
Tryg’s capitalization remains strong with a Solvency II ratio of 199% as of the first half of 2025.
Factors that could lead to a rating upgrade include maintaining a top tier market position while sustaining profitable growth, keeping the Solvency II ratio sustainably at or above 170%, maintaining strong operating performance with a combined ratio close to current levels, and keeping adjusted financial leverage sustainably below 15%.
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