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Tryg is today hosting a Capital Markets Day in London to launch its new strategic plan “Growing a successful core while shaping the future” and setting new, ambitious, financial targets for 2024.
Tryg has met all the 2020 financial targets set at the previous Capital Markets Day in 2017, and due to the acquisition of Trygg-Hansa and Codan Norway first disclosed in November 2020, a new Capital Markets Day was initially planned for November 2020 was postponed until today.
New financial targets
Tryg has set new financial targets for 2024. The company targets a technical result between DKK 7.0 and DKK 7.4bn driven by a Combined ratio at or below 82, the range primarily explained by the natural volatility of large and weather claims. The expense ratio target remains around 14.
Tryg is also introducing a new profitability target, return on own funds, which is set at or above 25% in 2024. Tryg will continue to report return on equity and return on tangible equity in all interim and annual reports going forward.
All financial targets are underpinned by the DKK 900m synergies related to the RSA acquisition which are fully re-confirmed and Tryg has already started delivering these as per Q3 2021.
Tryg continues to have a very strong focus on customer relations and has set a target for Customer Satisfaction at 88 (against 84 realised in 2020). Tryg believes in a strong correlation between customer satisfaction, higher retention and therefore lower distribution costs.
Solvency and dividend
Following the expected closing of the sale of Codan Denmark to Alm. Brand, and including the impact of the intended share buyback of approximately DKK5bn, the solvency ratio is expected to be between 195 and 205 as per H1 2022. Tryg sees this as a robust level for the start of a new journey for the enlarged group and to ensure attractive shareholder returns. Tryg aims at distributing a total of DKK 17bn to DKK 19bn to shareholders between 2022 and 2024 via ordinary dividends and the previously announced buyback. Extraordinary dividends, as previously, will be evaluated annually looking at earnings forecast, solvency position and considering the return on own funds target.
Today’s presentation is available on Tryg.com and the capital markets day will be webcasted live from 10:00 to 12:30 GMT. The webcast will subsequently be available on tryg.com.