Tryg (TRYG) CMD 2024 summary

Strategic direction and financial targets

• Launched a new three-year strategy focused on scale, simplicity, technical and commercial excellence, aiming for a combined ratio around 81% and an Insurance Service Result (ISR) of DKK 8.0–8.4 billion by 2027, assuming current macro conditions.

• Return on own funds (ROOF) targeted at 35–40% by 2027, supported by a shift to a less risky investment portfolio and continued focus on retail and commercial lines.

• Shareholder remuneration set at DKK 17–18 billion for 2025–2027, including DKK 15–16 billion in ordinary dividends and a DKK 2 billion share buyback.

• Solvency ratio expected to be around 195 at end of 2024 after de-risking and buyback, with a long-term plan to gradually move to a less conservative solvency position.

• Track record of delivering on previous financial and strategic targets, with all 2024 goals on track except for a slight shortfall in customer satisfaction.

Leadership and strategic pillars

• New CEO and executive board appointed in 2023, blending experience and competence to lead towards 2027 targets.

• Vision centers on leveraging scale for technical and commercial excellence, with a focus on retail insurance and operational efficiency.

• Three strategic pillars: Scale & Simplicity, Technical Excellence, Customer & Commercial Excellence, each with targeted ISR contributions by 2027.

• Four enablers—tech, data, people, and sustainability—support the 2027 targets.

• Purpose remains to make it easier for customers to feel safe and protected in a changing world.

Business transformation and operational initiatives

• Achieved significant scale through integration of major acquisitions, notably RSA Scandinavia, and shifted business mix to 93% retail and commercial lines for higher profitability and lower volatility.

• IT simplification includes decommissioning applications, reducing single-country systems from 56% to under 30%, and consolidating vendors for cost and quality gains.

• Automation of claims handling and back-office operations, aiming to increase straight-through processing from 45% to over 55% and scale best practices to Sweden.

• Commercial initiatives focus on scaling successful Swedish personal accident and motor products to Denmark and Norway, boosting online sales to small commercial customers, and growing partnership channels.

• Enhanced fraud detection using AI and product simplification to improve operational efficiency and customer experience.