Strategy

United Towards '27

Tryg hosted a Capital Markets Day on 4 December 2024, unveiling its 2027 financial and strategic targets.

Financial targets

Tryg targets a combined ratio of around 81% and an insurance service result between DKK 8.0-8.4bn supported by a Return On Own Funds (ROOF) of between 35% and 40%. These targets are the most ambitious in Tryg's history, leveraging the scale of the expanded Group following the acquisition of RSA's Swedish and Norwegian businesses, which virtually doubled Tryg's insurance service result.

Tryg also communicated an ambition for shareholder remuneration of DKK 17-18bn, including an ordinary dividend of DKK 15-16bn in the period 2025-2027 and a DKK 2bn extraordinary share buyback launched in December 2024. This ambition underscores Tryg's ongoing commitment to shareholder remuneration grounded in a robust and stable insurance business.

Strategic targets

Tryg identified three strategic targets in this new strategy period.

The first strategic target is centred around improving customer satisfaction. Tryg believes that high customer satisfaction and retention rates contribute to lower distribution costs. Therefore, achieving the customer satisfaction target is crucial for realising the financial objectives. For the new strategy period, Tryg has set a customer satisfaction score target of 83 by 2027.Tryg has rebased the customer satisfaction baseline from 87 to 81 in the new period. This difference arises from an updated scoring methodology and by the inclusion of the entire Swedish business, which was not part of the customer satisfaction targets for 2024. Tryg is therefore targeting a score of 83, an improvement of 2 points against the old target

Strategic pillars supporting the targets

To achieve the financial and strategic targets, Tryg has identified three strategic pillars and four enablers to support the strategy towards 2027.

Strategic pillars supporting the targets

Scale & Simplicity

Scale & Simplicity. The first strategic pillar is focused around utilising our size to become an even stronger and more efficient company. There are three main contributors. The first one is to leverage the increased size from the RSA Scandinavia transaction to combine IT systems. The second one aims to deliver economies of scale in claims through the digitalisation of claims handling, optimised procurement and increased fraud prevention. The third focus area aims to streamline the back-end tasks through automation. In total, the target is to deliver a DKK 500m improvement in the insurance service result towards 2027.

Technical Excellence

Technical Excellence. The second strategic pillar focuses on strengthening Tryg's technical insurance disciplines. The aim is to scale world-class portfolio management competences in Sweden to the rest of Tryg, to use more advanced pricing to improve our risk selection and risk-correct pricing, and to further leverage scale and standardisation in underwriting to increase profitability and manage volatility. The target is to deliver a DKK 300m insurance result impact by 2027.

Customer & Commercial Excellence

Customer & Commercial Excellence. The third strategic pillar is anchored around customers and focuses on ensuring commercial excellence across Tryg's business. We plan to copy commercial successes across markets, e.g. by copying personal accident and online sales from Sweden to Denmark and Norway, and scaling best practices in motor, partnership and customer satisfaction from Denmark and Norway to Sweden. These initiatives target to deliver DKK 200m to the insurance service result by 2027 and also expand Tryg’s position in each market to ensure a strong long-term business.

Ambitious financial targets 2027

At the Capital Markets Day on 4 December 2024, Tryg announced new ambitious targets for the period up until 2027.

DKK 8.0-8.4bn

Insurance service result

⁓81%

Combined ratio

35-40%

Return on Own Funds

DKK 17-18bn

Shareholders’ remuneration

Tryg's purpose

The new strategy follows Tryg’s established purpose:

As the world changes, we make it easier to be 'tryg'

Strategy and purpose go hand in hand
Where our purpose is a constant guiding principles, our strategy focuses on targets and actions for a specific period of time.