Tryg’s Supervisory Board has today approved the interim report for Q1 2015.
Satisfactory results composed of high investment return and a technical result, impacted by a high level of weather claims and the low interest rate. The new customer initiatives were the key drivers to an improved Net Promoter Score (NPS).
Financial highlights Q1 2015
- Profit after tax of DKK 525m (DKK 455m).
- Technical result of DKK 429m (DKK 523m).
- Combined ratio of 90.7 (89.2) due to a high level of weather claims of DKK 242m.
- Gross premium declined by 0.4% (-2.0%) and showed a continued improved development in premiums.
- Lower expense ratio of 15.6 (15.9) as a result of efficiency programme.
- High investment return of DKK 261m (DKK 89m) influenced by high return on bonds and equities.
- Return on equity of 20.3% (16.1%) p.a. after tax.
Customer highlights Q1 2015
- NPS improved from 11 at CMD in November 2014 to 16.
- Retention rate improved from 87.9 to 88.1.
- Customers with three or more products increased by 0.2 percentage points to 56.5%.
- New members’ bonus scheme approved by TryghedsGruppen – awaiting final approval by the Danish Authorities.
Statement by Group CEO Morten Hübbe:
The satisfactory results posted for Q1 were driven by a high investment return and a technical result negatively impacted by a higher level of weather claims and the lower interest rate levels.
As announced at our Capital Markets Day in November 2014, in the period up until 2017, earnings will be enhanced by a total of DKK 750 million through further cost savings and improved claims handling procurement. Going forward, we will be reporting both on our financial and our customer-related targets. I am pleased to announce that the steps taken to improve customer experience are already bearing fruit.
Through a stronger customer focus and empowering of front-line functions, our first-contact resolution rate is up. And we can do even better. However, it is positive that our customers are now more likely to recommend Tryg to others, and that our NPS score is therefore increasing. It is a sign that what we are doing is right.
Finally, we are pleased that TryghedsGruppen, our majority shareholder, has decided that from 2016 an annual bonus can be paid to members, who are Tryg’s customers in Denmark. This is subject to approval by the authorities.
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
Additional information:
For further information, please contact:
- Investor Relations Director Lars Møller on +45 22 66 66 05 or lars.moeller@tryg.dk
- Investor Relations Manager Peter Brondt on +45 22 75 89 04 or peter.brondt@tryg.dk
- Head of Communications Kasper Riis on +45 41 77 68 34 or kasper.riis@tryg.dk
Tryg is the second-largest insurance company in the Nordic region with activities in Denmark, Norway and Sweden. Tryg provides peace of mind and value for 2.7 million customers on a daily basis. Tryg is listed on NASDAQ Copenhagen and 60% of the shares are held by TryghedsGruppen smba. TryghedsGruppen, annually, contributes around DKK 500m to peace of mind purposes via TrygFonden.
