Tryg A/S · Klausdalsbrovej 601, 2750 Ballerup, Denmark · CVR no. 26460212
Annual Report 2024
As the world
changes,
we make it
easier to be tryg
-
Contents
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 2
Management’s review
Introduction
3
Sustainability statement
53
A message from the Chair and Group CEO
4
General disclosures
56
Tryg at a glance
6
Basis for preparation
57
Events in 2024
7
Sustainability governance
58
Strategy, business model and value chain
64
Strategy
9
Material impacts, risks and opportunities
68
2024 financial targets fully delivered
10
Environment
73
United Towards '27
12
Climate change
74
Resource use and circular economy
87
Financial results
15
EU Taxonomy
94
Financial highlights 2024
16
Social
102
Financial highlights Q4 2024
17
Own workforce
103
Income overview
18
Consumers and end-users
114
Financial outlook
19
Governance
120
Tryg’s results
21
Business conduct
121
Business areas
24
Responsible investment practices
126
Private
25
Independent auditor's limited assurance report
127
Commercial
27
Corporate
29
Financial statements
Investment activities
31
Tax governance
34
Contents - Financial statements
132
Statement by the Supervisory Board and the Executive Board
133
Governance
35
Independent Auditor’s Reports
134
Corporate governance
36
Tryg A/S (Parent company)
205
Capital and risk management
40
Quarterly outlines
213
Investor information
45
Group chart
218
Supervisory Board
47
Glossary, key ratios and alternative performance measures
219
Executive Board
51
Disclaimer
221
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Introduction
• A message from the Chair and Group CEO
• Tryg at a glance
• Events in 2024
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 3
-
A message from the Chair and Group CEO
A year of continued progress
2024 was another defining and eventful year for
Tryg, characterised by a well-planned and
successful conclusion of the current strategy
period and demonstrating that Tryg continues to
deliver on the commitments made to both
shareholders and customers. Core insurance
operations progressed, driven by solid customer
activity and satisfaction in an ever challenging
macroeconomic environment. At year-end, Tryg
was satisfied to have reached all its financial
targets for 2024 presented at the Capital
Markets Day in November 2021. This represents
a solid foundation for raising our ambitions and
embarking on the forthcoming new strategy
towards 2027.
Delivering on all financial targets for 2024
Tryg is pleased to report an insurance service
result above DKK 7.3bn and in the targeted
range of DKK 7.2-7.6bn along with a combined
ratio of 81.0% and thus better than the target at
or below 82%. Tryg's expense ratio target of
around 13.5% was also delivered, supporting
our position as one of the most efficient
insurance operators in the market. Tryg has a
strong focus on producing solid returns on
overall capital levels, so we are pleased to have
realised a Return On Own Funds (ROOF) of
34.1%, underpinning our capital discipline.
RSA Scandinavia synergies target exceeded
We are satisfied to have delivered the synergies
communicated at the time of the acquisition of
the Swedish and Norwegian businesses of RSA.
In 2024, Tryg delivered DKK 930m in total
synergies, exceeding the target of DKK 900m
despite unfavourable developments in the
Norwegian and Swedish currencies. We are also
pleased that Trygg-Hansa and Codan Norway's
IT processes and systems have now been
integrated into Tryg's IT landscape. This
milestone marks the final step in the RSA
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 4
”
”
2024 was a year of satisfactory results
with all financial targets met. We
launched a new strategy, increased
customer satisfaction, paid a higher
dividend to our shareholders and started a
DKK 2bn share buyback in December.
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acquisition, solidifying Tryg's position as a
leading Scandinavian insurance operator.
Growth driven by price adjustments to offset
inflation
From a macroeconomic perspective, 2024
turned out to be another eventful year.
Geopolitical tensions continued to affect the
financial environment. Norwegian and Swedish
currencies stabilised after a period of
depreciation, albeit at lower levels, and in the
first part of the year inflationary pressure eased.
Despite headwinds, Tryg reported satisfactory
results. In 2024, growth was mainly driven by
price adjustments to mitigate inflation and the
need to restore profitability in selected parts of
our Norwegian business. Our Private and
Commercial businesses grew by 6%, while our
Corporate business experienced a decline as a
consequence of Tryg's strategy to improve
profitability and reduce international property
and liability business with the aim to reduce
volatility.
Weather claims in 2024
The weather events for the full year were in line
with Tryg's annual expectations, even though
2024 had its fair share of weather-related
claims. The first half of the year brought severe
weather challenges to our customers. Heavy
rainfall impacted Denmark, while Norway
experienced a harsh winter with substantial
snowfall. Both events caused property damage
and interfered with everyday life through traffic
disruptions, etc. As a leading insurance provider
in Scandinavia, Tryg is dedicated to supporting
society and assisting our insured clients in
recovering from weather events. In a world
increasingly impacted by climate change, Tryg
offers customers peace of mind, ensuring
coverage in the event of claims.
Maintaining a high level of customer
satisfaction
Tryg achieved a customer satisfaction level of
87, an improvement of 3 percentage points
since 2020, but slightly shy of our 2024 target of
88. We are proud of achieving this high level of
satisfaction, especially for a period when
necessary price adjustments to offset inflation
have been implemented more frequently than
seen for many years. Improving the customer
satisfaction score was made possible by the
relentless efforts of Tryg's employees. Customer
satisfaction remains paramount to Tryg, and we
continue to work diligently to meet and exceed
customer expectations.
Anchoring ESG across the organisation
During the current strategy period, we have
expanded our offerings with products that can
help our customers adapt to climate change,
while maintaining our focus on minimising the
use of resources in the claims handling process.
A large part of Tryg's carbon emissions stem
from the handling of approximately 2.2 million
annual claims, and in 2024 Tryg is pleased to
have reduced CO2e emissions of 27,825 tonnes
in claims handling. 2024 has also been a year of
preparing for the Corporate Sustainability
Reporting Directive (CSRD). Involving different
teams, skills and disciplines across the
organisation, sustainability & ESG are now
integral parts of Tryg's business and customer
offerings.
Driving sustainable change from its core
business
Towards '27, Tryg will continue its efforts to
contribute to a more sustainable future and
create long-term value, benefiting our
shareholders, customers and employees as well
as society. Tryg will continue to address carbon
emissions in claims handling and in its supply
chain with a target of a 6% average emissions
reduction per claim. Tryg will develop and
expand practices for repairs and the recycling of
materials through close collaboration with
suppliers. New climate emission targets are
defined in line with conclusive scientific
evidence for our direct and indirect activities.
With high employee engagement, a diverse
culture and strong talent retention, Tryg is well-
positioned to develop and anchor new practices
and deliver on ambitious sustainability targets
by 2027
New targets and strategy for 2027
Tryg hosted a Capital Markets Day in London on
the 4 December 2024, unveiling the new
strategy "United Towards ’27 – Leveraging scale
to drive technical and commercial excellence".
The strategy builds on three important strategic
pillars "Scale & Simplicity", "Technical
Excellence" and "Customer & Commercial
Excellence". Tryg targets an insurance service
result between DKK 8.0-8.4bn in 2027 driven by
a combined ratio around 81. Return On Own
Funds (ROOF) is targeted between 35% and
40%. Tryg has set a target for customer
satisfaction of 83 for the full Group, now also
including the entire Swedish business. During
the previous strategy period, realising synergies
from the RSA acquisition was one of our main
priorities. Now, it is time to leverage our scale
and capitalise on the advantages of our size.
This strategy underpins our ambitious financial
targets. We wish to combine best-in-class
profitability goals with excellent capital
management and therefore aim to deliver high
returns on our own funds. Additionally, we
maintain a strong emphasis on shareholder
remuneration, as evidenced by our consistent
record of stable, nominally increasing dividends
coupled with extraordinary share buybacks.
Increased shareholder remuneration
On 31 January 2024, Tryg concluded the DKK
1bn share buyback programme that
commenced on 13 October 2023. Additionally,
at the Capital Markets Day on 4 December
2024, it was announced that Tryg has initiated a
further DKK 2bn buyback ending no later than
30 June 2025. Throughout 2024, Tryg has
consistently paid a quarterly dividend of DKK
1.95, amounting to DKK 7.8 per share for the full
year and equivalent to DKK 4,844m in total
dividend. Tryg remains very focused on
shareholder remuneration.
Thank you to all employees
The Supervisory Board and the Executive Board
would like to express a sincere thank you to all
employees for their dedicated efforts and
outstanding contributions. A special thank you
for achieving a high level of customer
satisfaction in a year when maintaining close
customer relationships was more crucial than
ever.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 5
JUKKA PERTOLA
Chair
JOHAN KIRSTEIN BRAMMER
Group CEO
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Tryg at a glance
Tryg is the leading non-life insurer in
Scandinavia. We are the largest player in
Denmark, the third-largest in Sweden and
fourth-largest in Norway.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 6
Read more about our history at tryg.com
1
3
4
12.9%
24.4%
16.5%
As the world changes, we
make it easier to be tryg*
Leading market position
Around 6 million customers
Our 6,621 employees provide peace of mind
for around 6 million customers and handle
approximately 2.2 million claims on a yearly
basis.
Attractive
dividend policy
Strong
Scandinavian
footprint
TryghedsGruppen
Tryg aims to distribute a
stable, nominal increase
in dividends and to pay
out 60-90% of operating
earnings.
TryghedsGruppen owns
48.1%** of Tryg and
contributes to projects that
create peace of mind via
TrygFonden. In 2024, Tryg
Fonden has contributed
approximately DKK 680m
to these projects.
TryghedsGruppen has paid
a member bonus of DKK
1bn to Danish customers in
Tryg.
Market position
Market position
Market position
Market share
Market share
Market share
* ‘Tryg’ means feeling protected and cared for in Danish.
** Calculated excluding Tryg's own shares
47%
22%
31%
Denmark
Norway
Sweden
2024
Revenue distribution
.
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Events in 2024
Group
Presenting the new strategy at our Capital
Markets Day
On 4 December 2024, the Executive Board
hosted a Capital Markets Day in London. The
financial targets for 2027 were published and
the new strategy "Leveraging scale to drive
commercial and technical excellence" was
presented.
New steps on Tryg's technology journey
During 2024, Tryg launched new technology
solutions to help further enhance the
customer experience. In Denmark, the AI
assistant Felix now offers tailored
suggestions and input to our Danish
customer advisors in real time based on key
words that the customer mentions during a
telephone conversation. In Norway, AI and
advanced voice analytics are also now being
used to train and coach Tryg’s customer
advisors, resulting in improved customer
satisfaction, improved sales results and
increased levels of digitally filed claims. In
Sweden, the AI assistant Llucia offers a faster
response to our Swedish customers with a
child insurance policy who have been
involved in an accident.
Tryg receives top score in MSCI ESG rating
For the first time, Tryg received the highest
score – AAA – in the international ESG rating
MSCI. MSCI rates companies’ performance
and approach to a wide range of
environmental, social and governance
themes. Used by leading institutional
investors to assess the strength of
companies' ESG efforts, it is a testimony to
Tryg’s dedicated and focused approach to
ESG and sustainability, which has been honed
over recent years.
New targets to drive sustainability and ESG
Sustainability and ESG are defined as key
enablers to support Tryg’s 2027 strategy.
Under the themes “Future-fit products”,
“Climate action” and “People at Tryg”,
ambitious ESG targets have been defined to
bolster future business resilience and
enhance competitiveness. In a world facing
more severe weather events, Tryg remains
committed to helping its customers adapt to
climate change and implement prevention
measures, while also mitigating the effects of
climate as much as possible by reducing
Tryg’s greenhouse gas emissions.
Denmark
Tryg placed in time capsule for future
generations
In an attempt to make Denmark the best
country to conduct business in and live in
100 years from now, Prime Minister Mette
Frederiksen and nine prominent Danish
CEOs, including Tryg's Johan Kirstein
Brammer, were invited by Dansk Erhverv
(Danish Chamber of Commerce) to share
their vision. Johan’s aspirational message
was placed in a time capsule by His Majesty
King Frederik X of Denmark and sealed within
the rebuilding of the historic Copenhagen
Stock Exchange after a major fire destroyed
the building in April 2024. The time capsule is
a symbolic gesture, and is only to be opened
after 100 years, a century after the
reconstruction of the stock exchange.
Setting the public agenda on climate
protection
Tryg's CEO, Johan Kirstein Brammer,
spearheaded advocating for increased
climate protection. In an interview with a
Danish newspaper, Tryg's CEO emphasised
the urgent need for political involvement and
common solutions across Danish society to
address the expected increasing frequency
and intensity of extreme weather events in
the long term. The motivation for Tryg's
engagement in this topic stems from clear
documentation of climate changes impacting
many customers. Tryg is focused on
contributing to helping customers adapt to
more severe weather.
TryghedsGruppen’s member bonus
For the ninth consecutive year,
TryghedsGruppen, Tryg’s largest shareholder,
paid out a member bonus of approximately
DKK 1bn, equivalent to 6% of premiums paid
for 2023. The bonus was paid to 1.5m Tryg
customers in Denmark, amounting to every
fourth Dane.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 7
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Events in 2024
Norway
Tailored coaching results in positive sales
development
By leveraging advanced speech analytics
applied to dialogues between advisers and
customers, Tryg has been able to provide
tailored training and coaching for individual
advisors. As a result, nearly 60 percent of
advisors have improved their customer
satisfaction scores and 40 percent have
boosted sales. This training programme has
played a significant role in Tryg's sales
success in 2024 and earned Tryg two
prestigious national awards: first place in the
national response time championship and
the Customer Service Award in the insurance
category.
Sustainability Excellence in Norwegian
Insurance
Tryg achieved top rankings at an annual
sustainability assessment among Norwegian
insurance companies. Key aspects of the
evaluation included the adaptation of
insurance policies to climate change and
future weather conditions – as well as Tryg’s
focus on circularity and CO2e reductions in
claims handling, as well as Tryg’s general
commitment to responsible investment
management.
Sweden
70 years of water safety
In 1954, Trygg-Hansa and the Swedish Life
Saving Society (SLS) donated the first
lifebuoy. In 2024, Trygg-Hansa and SLS
announced the renewal and extension of
their cooperation,whereby Trygg-Hansa
becomes the main partner of SLS. One of the
initiatives is Trygg-Hansa's continued
support of SLS’s important work with
summer swimming classes for children.
Throughout the year, Trygg-Hansa celebrated
its well-known lifebuoy making Swedish
waters safer, having saved hundreds of lives
during the past 70 years.
Products made to last and to make a
difference
In 2024, Trygg-Hansa redesigned its child
insurance coverage. Child insurance now
offers a deeper focus on supporting mental
health among children and young adults, as
well as rapid support and compensation for
over half of the 1.5 million insured children in
Sweden.
Also, Trygg-Hansa redesigned its motor
insurance product, focusing on providing a
more flexible offer to customers. It is now
ranked as the best motor insurance on the
market according to the Swedish Consumers'
Insurance Bureau. Moreover, Trygg-Hansa
relaunched the Aktsam brand, a motor
insurance specifically tailored to more
mature drivers.
In 2024, Trygg-Hansa also launched payouts
to customers through the digital payments
service Swish. Now customers can get
compensation for a claim in a matter of
seconds, completely digitally.
To enhance personal care services, Trygg-
Hansa has partnered with LEIA Health, an
app designed specifically for new parents.
Navigating motherhood can be challenging;
nine out of ten new mothers face issues such
as breastfeeding difficulties, post-natal
depression and birth injuries. LEIA’s app
offers expert-developed content and answers
to help address these concerns. Together,
Trygg-Hansa and LEIA Health provide unique
support for new parents dealing with post-
natal challenges.
Supporting our clients in preventing claims
Our cooperation with SMHI, the Swedish
Meteorological and Hydrological Institute,
enables Trygg-Hansa to warn clients in areas
at risk of storms and to share tips on how to
prepare for extreme weather. With Trygg-
Hansa’s own AI feature, it can also warn
clients in specific areas where the AI
identifies an increase in a specific type of
claim. Through specific warnings and
preventative information, we also help our
customers who own car brands that are
particularly exposed to theft.
Guidewire powering claims operations
In Denmark and Norway, the operational
claims system is Guidewire. To leverage
scale, Trygg-Hansa decided to implement
Guidewire cloud. By using the same platform
throughout Tryg, the claims organisation
across countries is able to share knowledge
and create more efficient and scalable
solutions.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 8
-
Strategy
• 2024 financial targets fully delivered
• United Towards '27
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 9
-
2024 financial
targets fully delivered
Follow-up on 2024 targets
In November 2021, Tryg hosted a Capital
Markets Day where the 2024 strategy and
targets were published. The strategy period has
concluded, and Tryg is pleased to announce the
fulfilment of all financial targets and fully
reaching two out of three strategic targets.
Financial targets
Tryg has set ambitious financial targets for the
strategy period. The main financial targets were
an insurance service result between DKK
7.2-7.6bn, a combined ratio at or below 82%, an
expense ratio of approximately 13.5%, and
Return On Own Funds (ROOF) at or above 25%.
Tryg is pleased to report that all 2024 financial
targets have been delivered.
Strategic targets
Tryg had set three strategic targets for 2024 as
described below.
The first target was customer satisfaction, which
reached 87 in 2024, slightly below the target of
88. The past three years have seen the return of
inflation on a global scale, and Tryg had to
implement price adjustments to offset this,
which had a direct impact on overall customer
satisfaction. Customer satisfaction is of
paramount importance to Tryg and is
embedded throughout Tryg's organisation.
Secondly, Tryg has progressed on targets
related to sustainability. By 2024, Tryg reduced
27,825 tonnes of CO2e from its claims handling
processes, exceeding the target of
20,000-25,000 tonnes. The fulfilment of this
target was made possible through several
initiatives for increasing repairs and the use of
reused materials in claims handling. Read more
about Tryg's sustainability initiatives from page
53.
Lastly, Tryg set a target to grow 'value-creating
actions' upon logging in online. During the
strategy period, Tryg introduced several
initiatives, notably 'My Page'. These different
initiatives boosted 'value-creating actions' by
more than 50%, against the target of 40% or
above in 2024.
Follow-up on strategic initiatives
Tryg defined four key strategic pillars to support
both the financial and customer targets.
The first strategic pillar, 'Full speed ahead in a
successful core', aimed to increase the
insurance service result by DKK ~1,050m by
2024. The strategic initiative reached the target,
with initiatives related to an advanced approach
to claims, sales and customer excellence. The
full implementation of Guidewire in Denmark
and Norway supported the advanced approach
to claims, while sales and customer excellence
were supported by the use of advanced data
and analytics.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 10
Status on financial
and strategic targets
Key Performance
Indicators
Targets
2024
Status 2024
Combined ratio
≤ 82%
81%
Insurance service result
DKK 7.2-7.6bn
DKK
7,324m
Return On Own Funds
(ROOF)
≥ 25%
34.1%
Expense ratio
~13.5%
13.5%
Customer
satisfaction
88
87
Reduced CO2e emissions
from claims processes
20-25k ton p.a.
27,825
Growth in value creating
actions upon login
≥ 40%
>50
Strategic
Financial
Delivered
Not delivered
-
The second strategic pillar, 'Change the way to
win in B2B', aimed to increase the insurance
service result by DKK ~600m in 2024 supported
by growth of 30% in the SME segment (0-9
employees) within Commercial segment in
Denmark and Norway, aiming for a combined
ratio of around 90%, and run-off levels of
around 5-7% in the Corporate segment. Growth
in the SME segment exceed the target of 30% by
the middle of 2024, whilst Corporate reached its
CMD target of reducing exposure one year
earlier than anticipated, as the business area
managed to reduce its exposure to international
property by 50% and reduced US liabilities by
70%.
The third strategic pillar, 'Shape the future',
aimed to grow insurance revenue by DKK
~1,500m via new products and services by
2024. The revenue for new products and
services grew by approximately DKK 1,600m
during the strategy period thus exceeding the
target.
The final strategic pillar,'Trygg-Hansa and Codan
Norway synergies', was expected to deliver total
synergies of DKK 900m by 2024. At year-end,
Tryg reported total synergies of DKK 930m, with
DKK 221m related to Procurement, DKK 153m
from Claims, DKK 373m from Administration
and Distribution and DKK 184m from
commercial initiatives.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 11
Tryg 2024 financial targets
IT capabilities
Data and analytics
HR - people, organisation
and culture
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United Towards '27
Tryg hosted a Capital Markets Day on 4 December 2024,
unveiling its 2027 financial and strategic targets.
Tryg hosted a Capital Markets Day in December
2024, during which its strategy and financial
targets for 2027 were unveiled under the theme
"Leveraging Scale to Drive Technical and
Commercial Excellence".
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.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 12
Strengthen
market-leading
profitability1)
Generate
resilient growth
in insurance
service result1)
Deliver best in
class Return On
Own Funds
Keep strong
shareholders’
remuneration
focus intact
~81%
Combined ratio
DKK 8.0-8.4bn
35-40%
DKK 17-18bn,
including DKK 15-16bn
ordinary dividend range
during 2025-2027 and
DKK 2bn extraordinary
share buyback
1) As always, assuming current interest rates, currency levels and guided large/weather claims
Financial KPIs
Financial and
strategic KPIs 2027
Continue improving
customer
satisfaction
Increase
straight-through
processing for
digitally reported claims
Reduce
CO2e emissions,
continuing focus on
corporate responsibility
83
(+2points)
>55%
(+10pp)
6%
per claim, on average
Strategic KPIs
-
The second strategic target focuses on
increasing straight-through-processing (STP).
Tryg is strongly focused on fast and efficient
claims handling, aiming to increase straight-
through processing for digitally reported claims
to over 55%, an improvement of 10 percentage
points from the baseline of 45%. Tryg defines
STP as a claims handling process that does not
involve any manual touchpoint, thus only relying
on automated processes. Tryg believes that a
higher degree of automation results in increased
customer satisfaction and improved cost
efficiency, thus contributing to the realisation of
the financial objectives.
The final strategic target aims to reduce CO2e
emissions. Sustainability and ESG are integrated
aspects of Tryg's business. Tryg is dedicated to
helping its customers adapt to climate change
and prevent claims from happening in the first
place. To achieve this, Tryg has set a target of
adapting 30 product categories, corresponding
to 60% of categories in scope for the EU
Taxonomy. At the same time, Tryg aims to
mitigate its climate impact as much as possible
by reducing its own CO2e emissions. Tryg's main
emission footprint is through its claims handling
activities. To address this, Tryg has set a target
of reducing CO2e emissions by 6% per average
claim by 2027 compared to 2024.
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.
The three strategic pillars, Scale & Simplicity,
Technical Excellence, and Customer &
Commercial Excellence, focus on leveraging
Tryg's size and scaling best practices across the
Group. These pillars aim to increase the
insurance service result by DKK 1bn by 2027.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 13
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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
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
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.
Enablers
The strategy is supported by four enablers:
customer experience, sustainability & ESG, data
& technology and people & culture. These will
ensure we deliver in a holistic way across the
Group.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 14
Scale &
Simplicity
Technical
Excellence
Customer &
Commercial
Excellence
DKK 500m
increase in ISR
DKK 300m
increase in ISR
DKK 200m
increase in ISR
Leverage increased
size to combine IT
systems, simplify
processes and
deliver economies of
scale
Scale world-class
portfolio management
and advance pricing
and underwriting with
new data and
technology
Scale proven
commercial successes
across the Group and
further strengthen
focus on customer
satisfaction
Customer experience
Sustainability & ESG
Data and technology
People and culture
Strategic pillars 2027
-
Financial results
• Financial highlights 2024
• Financial highlights Q4 2024
• Income overview
• Financial outlook
• Tryg’s results
• Business areas
◦Private
◦Commercial
◦Corporate
• Investment activities
• Tax governance
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 15
-
Financial highlights 2024
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 16
Financial 2024
4.1%
0.3pp
13.5%
Revenue growth
(in local currencies)
Group underlying claims
ratio improvement
Expense ratio
2023: 4.8%
2023: 0.5pp
(improvement)
2023: 13.4%
81.0%
7,324m
643m
Combined Ratio
Insurance service result
(DKK)
Net investment result
(DKK)
2023: 82.8%
2023: 6,399m
2023: 631m
6,303m
7.80
196%
Profit before tax
(DKK)
Dividend per share
(DKK)
Solvency ratio
2023: 5,029m
2023: 7.40
2023: 197%
-
Financial highlights Q4 2024
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 17
Financial Q4 2024
3.6%
0.2pp
13.3%
Revenue growth
(in local currencies)
Group underlying claims
ratio improvement
Expense ratio
Q4 2023: 6.3%
Q4 2023: 0.5pp
(improvement)
Q4 2023: 13.5%
82.5%
1,708m
-265m
Combined Ratio
Insurance service result
(DKK)
Net investment result
(DKK)
Q4 2023: 82.4%
Q4 2023: 1,654m
Q4 2023: 146m
1,033m
1.95
196%
Profit before tax
(DKK)
Dividend per share
(DKK)
Solvency ratio
Q4 2023: 1,389m
Q4 2023: 1.85
Q3 2024: 202%
-
Income overview
Q4
Q4
DKKm
2024
2023
2024
2023
2022
Insurance revenue
9,734
9,396
38,596
37,135
34,814
Gross claims
-6,466
-6,241
-25,328
-25,270
-23,904
Insurance operating costs
-1,299
-1,272
-5,196
-4,959
-4,701
Insurance service expenses
-7,765
-7,513
-30,524
-30,229
-28,605
Profit/loss on gross business
1,969
1,883
8,072
6,906
6,212
Net expense from reinsurance contracts
-261
-229
-748
-507
-576
Insurance service result
1,708
1,654
7,324
6,399
5,636
Net investment resulta)
-265
146
643
631
-441
Other income and costs
-409
-411
-1,664
-2,001
-2,143
Profit/loss before tax
1,033
1,389
6,303
5,029
3,051
Tax
-247
-258
-1,488
-1,178
-804
Profit/loss
786
1,129
4,816
3,851
2,247
Run-off gains/losses, net of reinsurance
233
281
1,090
1,099
759
Key figures and ratios
Total equity
38,864
40,351
38,864
40,351
42,504
Return on equity after tax (%)
7.6
11.0
12.2
9.4
4.9
Return on Own Funds (%)
21.9
30.3
34.1
24.8
13.0
Return on Tangible Equity (%)
30.4
42.1
47.2
34.3
7.8
Number of shares (1,000)
613,165
617,455
613,165
617,455
633,710
Earnings per share (DKK)
1.25
1.82
7.71
6.08
3.47
Operating earnings per share (DKK)b)
1.54
2.12
8.90
7.26
4.43
Ordinary dividend per share (DKK)
1.95
1.85
7.80
7.40
6.29
Net asset value per share (DKK)
63.38
65.35
63.38
65.35
67.07
Revenue growth in local currencies (%)c)
3.6
6.3
4.1
4.8
5.9
Gross claims ratio (%)
66.4
66.4
65.6
68.0
68.7
Net reinsurance ratio (%)
2.7
2.4
1.9
1.4
1.7
Claims ratio, net of reinsurance (%)
69.1
68.9
67.6
69.4
70.3
Expense ratio (%)
13.3
13.5
13.5
13.4
13.5
Combined ratio (%)
82.5
82.4
81.0
82.8
83.8
Run-off, net of reinsurance (%)
-2.4
-3.0
-2.8
-3.0
-2.2
Large claims, net of reinsurance (%)
1.5
1.5
1.4
2.7
3.3
Weather claims, net of reinsurance (%)
2.8
3.4
2.4
3.4
1.7
Discounting (%)
2.1
2.6
2.3
3.0
2.1
Combined ratio (%) by business areas
Private
83.5
84.0
82.8
84.5
82.9
Commercial
76.3
73.1
75.4
78.1
82.7
Corporate
94.1
95.4
83.8
83.2
92.3
a) Income from RSA Scandinavia includes net effect from demerger and sale of Codan DK from 01/06-2021 to 31/03-2022
b) Adjusted for interest on Additional Tier 1 capital and amortisation on intangible assets related to Brands and Customer relations after tax
c) Insurance revenue growth in FY 2023 is measured against comparative proforma 2022 figures
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 18
-
Financial outlook
Insurance revenue growth will primarily come from the retail
segment, while the profitability outlook is helped by lower inflation
ahead and price increases. Tryg targets an insurance service result of
DKK 8.0-8.4bn in 2027 driven by a combined ratio of around 81%.
Return On Own Funds is targeted between 35% and 40% in 2027.
The Scandinavian non-life insurance markets
remain generally stable, as consumers cover
their insurance needs well and customer
satisfaction remains high. Growth in the industry
has been accelerating in the past two years
driven by price increases to match inflationary
pressures. Long-term growth in the Private &
Commercial segment has been hovering around
low-to-mid single digit.
Capital markets day in London
Tryg hosted a Capital Markets Day in London in
December 2024 and presented its 2027
financial and strategic targets. Tryg is targeting
an insurance service result in the range of DKK
8.0-8.4bn in 2027 driven by a combined ratio of
around 81%. Tryg is also targeting a Return On
Own Funds (ROOF) between 35% and 40%. As
always, the financial targets assume current
levels of interest rates and currencies and a
normalised level of large and weather claims,
both at DKK 800m per annum. The Insurance
service result is anticipated to grow by DKK 1bn
from the normalised 2024 level to 2027 with
three pillars being the key drivers: Scale &
Simplicity (DKK 500m), Technical Excellence
(DKK 300m) and Customer & Commercial
Excellence (DKK 200m). The most important
initiatives are detailed in the CMD presentation.
2025 outlook
2025 marks the start of the new strategy period,
with focus mainly on laying the groundwork to
achieve the financial targets set for 2027, as
announced in London in December 2024.
Tryg's revenue growth in 2025 is expected to
come primarily from the retail segment (Private
& Commercial), while growth in Corporate is
likely to be more muted. In the last two years,
insurance revenue growth has stemmed mainly
from price increases to offset inflation
pressures. It is important to remember that
wage inflation is the leading indicator to
monitor, and Tryg continues to see this around
4% going into 2025.
Longer term, Tryg anticipates more balanced
growth achieved through a focus on cross-
selling and up-selling to existing customers as
well as acquiring new customers.
Tryg reported an insurance service result,
adjusted for the more favourable-than-normal
large and weather claims outcome, of around
DKK 7.2bn in 2024 and it is now targeting its
highest ever insurance service result of between
DKK 8.0-8.4bn in 2027. The insurance service
result is expected to increase gradually
throughout the strategy period.
High retention levels in Scandinavia coupled
with dedicated cost management have
historically enabled Tryg to maintain stable and
low expense ratios. This cost focus will
continue, with reinvestments strategically
directed to shape the business for the future. As
a well-diversified insurer with three large
businesses in Scandinavia, Tryg expects a run-
off level of approximately 2% to maintain stable
earnings. Tryg remains confident in the strength
of its reserve position and will continue its
prudent reserving practices.
Tryg's insurance business is generally stable but
may be subject to volatility due to weather
events and large claims. These factors must be
monitored over extended periods, as their
impact can vary annually, as evidenced by
historical data on large and weather-related
claims. Tryg is protected by an extensive
reinsurance programme to mitigate this
volatility, though some fluctuations are
inevitable. Large claims are anticipated to be
evenly distributed across the quarters, with an
expected annual level of DKK 800m. Historical
data suggests that weather-related claims will
amount to approximately DKK 800m annually,
with seasonal variations: 40% of these are
expected in Q1, 10% in Q2, 20% in Q3, and 30%
in Q4.
The decline in interest rates in 2024 has resulted
in a reduced discounting effect. A 100 basis
points drop in interest rates leads to a 100 basis
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 19
Financial KPIs 2027
8.0-8.4bn
~81%
35-40%
17-18bn
Insurance service
result (DKK)1)
Combined
ratio1)
Return on
own funds
Ordinary dividends
and extraordinary
share buyback2)
Strategic KPI's 2027
>55%
83
6%
Straight-through
processing
Customer
satisfaction
Average CO2e
emission
reduction per claim
1) As always, assuming current interest rates, currency levels and guided large/weather claims
2) including DKK 15-16bn ordinary dividend range during 2025-2027 and DKK 2bn extraordinary share buyback
-
points deterioration in the combined ratio, all
else being equal, as Tryg would discount its
claims reserves with a lower interest rate level,
therefore reporting a higher level of claims in its
profit/loss. Additionally, while the combined
ratio is virtually unaffected by currency
fluctuations, significant drops in either the
Norwegian krone or Swedish krona will
negatively impact the insurance service result.
For 2025, other income and costs are expected
to be between negative DKK 1.4 and DKK 1.5bn.
Tryg is primarily booking the intangibles
amortisation from the RSA Scandinavia
acquisition against this line, which is expected to
be around DKK 800m per annum.
Investment activities (DKK 61bn as per end of
2024) are managed taking into consideration
the specifics of the non-life insurance business.
Invested assets are split into a match portfolio
(DKK 44bn) and a free portfolio (DKK 17bn). The
match portfolio is primarily made up of
Scandinavian covered bonds (rated AAA)
matching the insurance liabilities. The objective
is for the return on the match portfolio to be as
close as possible to zero, as capital gains or
losses driven by interest rate movements should
result in similar, but opposite, movements on
assets and liabilities. From 2023 onwards (under
IFRS 17), the return on premium provisions is
also booked as part of the match portfolio and is
expected to be around DKK 300m per annum
with the current level of interest rates.
Following the de-risking of investments
announced at the CMD in December 2024, Tryg
expects a more stable return from the free
portfolio, which currently comprises only
covered and government bonds (80% of the
total free portfolio) with a two-year duration and
properties (20% of the free portfolio). Tryg has
additionally disclosed that properties will not be
part of the asset mix in the long term, covered
and government bonds will be the only asset
class.
The overall full-year tax rate 2025 is expected to
be approximately 24%. This reflects Tryg’s
earnings distribution across Sweden, which has
the lowest corporate tax rate at 20.6%, Norway,
has a corporate tax rate of 25%, and Denmark,
has the highest rate at 26%, including the
special ‘Arne tax’ for financial institutions. The
investment result may also weigh either
positively or negatively on the tax rate.
Tryg will continue to focus on disciplined capital
management, and with ambitious profitability
targets delivered with a high Return On Own
Funds targeted in the range of 35-40%, Tryg
continues to aim to offer a nominally stable and
increasing ordinary dividend on an annual basis.
The targeted payout ratio of 60-90% (based on
operating earnings) is secondary to the aim of
increasing the annual dividend.
New operating segments going forward
Given Trygg-Hansa's successful operating
model for commercial customers, Tryg merged
its Commercial and Corporate Lines in Denmark
and Norway in 2023. This organisational
change, along with the strategic decision to
reduce exposure in the corporate segment, has
led Tryg to report the former Commercial and
Corporate segments jointly as 'Commercial',
starting from 2025.
Contents
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Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 20
Large claims, net of reinsurance (DKKm)
Tryg including RSA
Scandinavia b)
Weather claims, net of reinsurance (DKKm)a)
Tryg including RSA
Scandinavia b)
Large claims, net of reinsurance
Tryg stand-alone, guidance
Enlarged Tryg, guidance
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
0
500
1,000
1,500
Weather claims, net of reinsurance
Tryg stand-alone, guidance
Enlarged Tryg, guidance
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
0
500
1,000
1,500
a) Weather claims include storms and cloudbursts as well as normal weather events
b) Tryg and RSA Scandinavia consolidated
c) Pro-forma numbers
c)
c)
-
Tryg’s results
Tryg reported an insurance service result of DKK 7,324m (DKK 6,399m) in 2024. Insurance revenue
growth measured in local currencies was 4.1% primarily driven by solid growth in the Private &
Commercial segments. The majority of the growth was driven by price adjustments to mitigate claims
inflation. The underlying claims ratio for the Group improved by 30 basis points supported by the delivery
of DKK 930m of RSA Scandinavia-related synergies. The investment result was DKK 643m (DKK 631m)
driven by positive returns in most asset classes. The profit/loss before tax was DKK 6,303m (DKK 5,029m).
Tryg is paying a dividend for the full year of DKK 7.80 per share and has in addition announced a share
buyback programme of DKK 2bn at its Capital Markets Day on 4 December 2024. The solvency ratio at
year-end 2024 was 196%.
Results 2024
Tryg reported an insurance service result of DKK
7,324m (DKK 6,399m) for the full-year 2024
driven by a combined ratio of 81.0% (82.8%).
The result was positively impacted by insurance
revenue growth of 4.1% (4.8%) primarily from
the Private and Commercial segments, while the
Corporate segment experienced a decline in its
top line due to a strategic decision to exit certain
segments of the Corporate business. The full-
year result included the sum of large and
weather claims DKK 112m lower than normal
assumptions, more specifically large claims
were well below the normalised level of DKK
800m, while weather claims were above the
normalised level of DKK 800m. The underlying
claims ratio (i.e. the claims ratio adjusted for
volatile factors such as large and weather
claims, run-off result and interest rate
movements) improved by 30 basis points
primarily driven by profitability initiatives in the
Commercial and Corporate segments. The
overall result was supported by the realisation of
synergies related to the RSA Scandinavia
acquisition of DKK 219m for 2024 and DKK
930m since the beginning of the RSA
Scandinavia integration, with DKK 221m related
to Procurement, DKK 153m coming from
Claims, DKK 373m from Administration and
Distribution and DKK 184m from Commercial
initiatives. The run-off result was virtually flat at
2.8% (3.0%), while the discount rate for claims
provisions for the full year was 2.3% (3.0%)
reflecting a generally lower level of interest
rates.
A customer satisfaction score of 87 was
achieved in 2024 year-end, an increase from 86
in 2023. Tryg continues to have a strong focus
on customer satisfaction as this is paramount
for running a successful business. The increase
in customer satisfaction during a period
characterised by significant profitability actions
is satisfactory even if the level of 87 falls short of
the targeted 88 for the end of 2024.
Capital markets developed positively during
2024 and most asset classes, with the
noticeable exception of real estate, reported
positive returns. Geopolitical tensions remained
high, resulting at times in sudden shocks to
capital markets. In December 2024, Tryg
disclosed a further de-risking of the free
portfolio, where 80% of the assets are now
made up of covered and government bonds,
while the remaining 20% consists of real estate.
In the long term, the property exposure will be
sold and only covered and government bonds
will be included in the free portfolio. The further
de-risking of the free portfolio has been
prompted by the high capital charges that
solvency rules place on these assets and also to
reduce earnings volatility further. The total
investment return was DKK 643m (DKK 631m)
in 2024. Total invested assets amounted to DKK
61bn as per end of 2024.
Insurance revenue
Insurance revenue amounted to DKK 38,596m
(DKK 37,135m), corresponding to growth of
4.1% in local currencies. Growth was primarily
driven by the Private & Commercial segments,
while the Corporate segment experienced a top-
line decline as a result of a strategic decision to
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 21
Financial highlights 2024
7,324m
Insurance service result (DKK)
2023: 6,399m
6,303m
Profit/loss before tax
2023: 5,029m
67.6%
Claims ratio, net of reinsurance
2023: 69.4%
13.5%
Gross expense ratio
2023: 13.4%
81.0%
Combined ratio
2023: 82.8%
-
exit certain segments of the Corporate business.
In Private, growth was 6.9% (5.5%) measured in
local currencies. The growth was mainly driven
by price adjustments to offset inflationary
pressures and supported by strong sales across
multiple channels despite a lower level of car
sales in some geographies. The price
adjustments were widely accepted by
customers in the Private segment, as indicated
by broadly stable retention rates. In the
Commercial segment, insurance revenue grew
4.5% (3.9%) measured in local currencies. The
growth was mainly driven by price adjustments
to mitigate inflationary pressures and supported
by an increase in the smaller commercial
segment and solid sales performance across
multiple channels. The price adjustments were
widely accepted by customers, as indicated by
stable retention rates. In Corporate, top-line
development was -16.7% (2.3%) measured in
local currencies. The segment experienced a
decline, with a handful of relatively large
customers accounting for more than half of the
development. The Corporate segment delivered
on the CMD 2024 targets, achieving a combined
ratio below 90%.
Claims
The claims ratio, net of reinsurance, was 67.6%
(69.4%) in 2024. The sum of large and weather
claims was almost DKK 112m lower than
normal assumptions, which helped the overall
results, while the run-off result was virtually
unchanged at 2.8% (3.0%). Interest rates fell,
with the discount rate at 2.3% (3.0%). A lower
discount rate of the liabilities implies a higher
amount of claims in the profit/ loss (all else
being equal) and therefore impacts the reported
claims ratio negatively.
The insurance service result in 2024 included
worse-than-normal weather claims and much
better-than-normal large claims. The sum of the
two was almost DKK 112m better than normal.
Weather claims hit the results particularly hard
in Q1 but were broadly in line with expectations
between Q2 and Q4. A significant difference in
large and weather claims was reported in 2024
vs 2023, as these were around DKK 800m lower
in the current year compared to the previous
year.
During the year, Motor claims frequencies have
been challenging, although the trend was more
pronounced at the beginning of the year
compared to the end of the year. Additionally, a
slightly higher average claims cost was also
reported. This issue has been noted across
geographies generally but was particularly
evident in the Norwegian business, where most
profitability actions to mitigate this trend have
been taken.
The run-off result was in line with expectations,
being 2.8% for full-year 2024 and compares
with a 2023 full-year run-off level of 3.0%. The
run-off result was impacted by various factors,
including the increased inflation levels since
mid-2022 compared to previous years and a
general reduction in the Corporate segment,
where most of the long-tail business resides.
The underlying claims ratio for the Group
improved 30 basis points driven by profitability
initiatives in the Commercial and Corporate
business, including a re-balancing of the
Corporate portfolio. The underlying claims ratio
was helped by claims synergies from the RSA
Scandinavia acquisition totalling DKK 153m in
2024.
Expenses
The expense ratio is reported at 13.5% (13.4%).
Tryg remains focused on having tight cost
controls and sees this as a key competitive
advantage. The expense ratio is in line with the
2024 guidance.
Investment activities
The investment result totalled DKK 643m (DKK
631m) for the full year. Despite deep
geopolitical tensions, most asset classes, with
the noticeable exception of properties,
performed well and offered good returns. The
free portfolio reported a DKK 672m (DKK
622m) result, the match portfolio reported a
DKK 536m (DKK 468m) result, while other
financial income and expenses totalled DKK
-565m (DKK -459m). As mentioned previously,
Tryg disclosed in December that it has changed
the asset mix in the free portfolio by further
reducing exposure to risky assets. Tryg has sold
more than DKK 7bn of risky assets, such as
equities, corporate bonds and alternative assets,
and replaced these with short-duration, liquid
Scandinavian covered bonds. In the longer term,
this will support a less volatile investment result
while, all else being equal, the return will be
approximately DKK 200m lower.
Other income and costs
The line other income and costs amounted to
DKK -1,664m (DKK -2,001m). The largest costs
in this line were the amortisation of customer
relations related to the Alka and the RSA
Scandinavia transaction, which were DKK 117m
and DKK 806m respectively in 2024. In 2024,
other income and costs was also impacted by
an extraordinary payment to the DFIM
guarantee fund (a fund covering claims caused
by uninsured vehicles) of approximately DKK
50m. In 2024, extraordinary costs related to
organisational adjustments have also been
included in this line. Finally, this line includes
costs related to the parent company,
development costs and educational costs. Due
to certain extraordinary items in 2024, the level
is elevated compared to the annual guidance of
between DKK 1.4 and 1.5bn.
Profit/loss before and after tax
The profit/loss before tax was DKK 6,303m,
whilst the net profit was DKK 4,816m, implying
an overall tax expense of DKK 1,488m,
corresponding to a tax rate of 24% and in line
with Tryg's guidance.
Solvency and shareholders' remuneration
Tryg's own funds amounted to DKK 13,239m,
while the solvency capital requirement (SCR)
was DKK 6,769m at year-end 2024, resulting in
a solvency ratio of 196%. The lower SCR
compared to previous quarters reflects the de-
risking of the free investment portfolio during
Q4 2024, while the own funds figures already
reflect the deduction of the announced buyback
programme of DKK 2bn. In addition to the share
buyback programme, Tryg will be paying a full-
year 2024 dividend of DKK 7.80 per share. The
Return On Own Funds (ROOF) is 34.1%, well
above the targeted level. ROOF was impacted
positively by the de-risking and subsequent
buyback.
Results Q4 2024
Tryg reported an insurance service result of DKK
1,708m (DKK 1,654m) in Q4. Revenue growth
measured in local currencies was 3.6% (6.3%)
driven by the Private and Commercial
segments, while the Corporate segment
reported a drop of -20.3% in line with the plan to
de-risk the corporate business. The Group
underlying claims ratio improved by 20 basis
points, while the Private underlying claims ratio
deteriorated by 20 basis points.
Weather claims were 2.8% (3.4%) in Q4,
corresponding to DKK 272m and therefore
above the quarterly guidance (DKK 240m for
Q4). Large claims weighed negatively by 1.5%,
corresponding to DKK 147m, which was below
the expected normalised level of DKK 200m per
quarter.
Contents
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Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 22
-
There was a general drop in interest rates in Q4 ,
so the discounting level was 2.1% compared
with the Q4 2023 level of 2.6%.
The run-off in Q4 2024 was 2.4% (3.0%),
broadly in line with previous quarters.
Tryg delivered a strong expense ratio of 13.3%
(13.5%), showing the strong focus on tight cost
control.
The other income and costs line was more
negative than normal at DKK -409m compared
to a DKK -350m to DKK -370m quarterly
guidance. In Q4, some additional costs related
to restructuring were booked against this line.
In accordance with Tryg's dividend policy, Tryg
will pay a flat quarterly dividend of DKK 1.95 per
share. Additionally, Tryg announced a DKK 2bn
share buyback at the Capital Markets Day on 4
December 2024.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 23
-
Business areas
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 24
68%
25%
7%
Private
Commercial
Corporate
Private provides insurance products to private
customers in Denmark, Sweden and Norway.
Private offers a range of insurance products
including motor, content, house, accident, travel,
motorcycle, pet and health.
Commercial provides insurance products to
small and medium-sized commercial customers
in Denmark, Sweden and Norway. Commercial
offers a range of insurance products including
motor, property, liability, workers’
compensation, travel and health.
Corporate provides insurance products to
corporate customers in Denmark, Sweden and
Norway. Corporate offers a range of insurance
products including motor, property, liability,
workers’ compensation, travel and health.
of full year
insurance revenue
of full year
insurance revenue
of full year
insurance revenue
Distribution channels
Distribution channels
Distribution channels
Online • Call centres • Own sales agents •
Partner • Franchises • Bancassurance •
Car dealers • Real estate agents
Own sales agents • Online • Call centres
• Franchises • Insurance brokers • Partner
• Bancassurance
Own sales agents •
Insurance brokers
Brands
Brands
Brands
-
Private
Results 2024
The Private segment reported an insurance
service result of DKK 4,498m (DKK 3,800m) and
a combined ratio of 82.8% (84.5%). The higher
insurance service result was supported by a
lower level of weather-related claims and higher
run-off result. The underlying claims ratio
deteriorated, mainly driven by a slightly higher
claims frequency and slightly higher average
claims costs in the motor comprehensive
segment. An improvement (i.e. a smaller
deterioration) was recorded towards the end of
the year compared to the beginning of the year.
Insurance revenue growth was mainly driven by
price adjustments to mitigate inflationary
pressures and good sales performance.
Insurance revenue
Insurance revenue amounted to DKK 26,100m
(DKK 24,455m), corresponding to growth of
6.9% (5.5%) measured in local currencies. In
Denmark, growth was driven by price
adjustments to offset inflationary pressures,
supported by strong sales across multiple
channels. In Norway, growth was driven by price
adjustments and solid sales performance across
various channels. In Sweden, growth was
positively impacted by price adjustments to
offset inflationary pressures but was adversely
affected by a lower level of car sales. Moreover,
growth was supported by cross-selling of niche
product insurance, such as pet, leisure boats
and vintage cars & motorcycles, to existing
customers.The price adjustments were widely
accepted by customers, as indicated by the
retention rates in all countries remaining
relatively stable, demonstrating a high level of
customer satisfaction. In Denmark and Norway,
the retention rate dropped to 88.9% (89.7%) and
86.5% (87.4%) respectively due to a period with
continued price adjustments and the loss of
selected partner agreements as a consequence
of enhanced focus on profitability. In Sweden,
the retention rate dropped to 87.0% (87.8%),
being affected by slightly higher churn among
single-product customers.
Claims
The claims ratio, net of reinsurance, was 70.0%
(71.9%) and characterised by both a lower level
of weather claims at 2.5% (3.8%) and a higher
run-off result at 2.3% (1.1%). Weather claims
returned to normal compared to last year's
extraordinarily high level, which was due to
several weather-related events in Scandinavia
and Europe affecting Scandinavian customers.
The underlying claims ratio experienced a
modest deterioration driven by a slightly higher
claims frequency and slightly higher average
claims costs in the motor segment. However,
the underlying claims ratio experienced a
smaller deterioration in the latter part of the
year compared to the first part of the year,
reflecting the impact of ongoing profitability
initiatives.
Expenses
The expense ratio was 12.8% and broadly in line
with 2023 (12.6%). The segment realised cost
synergies related to the acquisition of RSA
Scandinavia’s Swedish and Norwegian
businesses and continued to reinvest in its
operational setup. A very efficient operational
setup is considered a key competitive
advantage.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 25
Key figures - Private
Q4
Q4
DKKm
2024
2023
2024
2023
Insurance revenue
6,621
6,203
26,100
24,455
Gross claims
-4,662
-4,339
-17,942
-17,305
Insurance operating costs
-810
-775
-3,337
-3,074
Insurance service expenses
-5,472
-5,114
-21,279
-20,379
Profit/loss on gross business
1,150
1,089
4,821
4,076
Net expense from reinsurance contracts
-55
-98
-323
-276
Insurance service result
1,095
991
4,498
3,800
Run-off gains/losses, net of reinsurance
125
87
592
268
Key figures and ratios
Revenue growth in local currencies (%)
6.8
7.7
6.9
5.5
Gross claims ratio (%)
70.4
70.0
68.7
70.8
Net reinsurance ratio (%)
0.8
1.6
1.2
1.1
Claims ratio, net of reinsurance (%)
71.2
71.5
70.0
71.9
Expense ratio (%)
12.2
12.5
12.8
12.6
Combined ratio (%)
83.5
84.0
82.8
84.5
Combined ratio exclusive of run-off (%)
85.4
85.4
85.0
85.6
Run-off, net of reinsurance (%)
-1.9
-1.4
-2.3
-1.1
Large claims, net of reinsurance (%)
0.1
-0.2
0.2
0.3
Weather claims, net of reinsurance (%)
3.0
3.8
2.5
3.8
68%
The business area accounts for 68% of
the Group’s total insurance revenue.
Financial highlights 2024
6.9%
4,498m 12.8%
82.8%
Revenue growth
(in local currencies)
Insurance service result
(DKK)
Expense ratio
Combined ratio
2023: 5.5%
2023: 3,800m
2023: 12.6%
2023: 84.5%
-
Results Q4 2024
The insurance service result was DKK 1,095m
(DKK 991m) and the combined ratio 83.5%
(84.0%). The higher insurance service result was
driven by top-line growth and supported by a
lower level of weather claims, while the
underlying claims ratio deteriorated modestly.
The underlying claims ratio was affected by a
slightly higher claims frequency and slightly
higher average claims costs, however this will be
mitigated by continued profitability initiatives.
Insurance revenue growth was mainly driven by
price adjustments to mitigate inflationary
pressures and good sales performance.
Insurance revenue
Insurance revenue amounted to DKK 6,621m
(DKK 6,203m), corresponding to growth of 6.8%
(7.7%) measured in local currencies. Top-line
development across countries was mainly
driven by price adjustments to mitigate the
rising inflation, but was also supported by good
sales across multiple areas.
Claims
The claims ratio, net of reinsurance, was 71.2%
(71.5%) and was characterised by a lower level
of weather claims at 3.0% (3.8%) and higher
level of run-off results at 1.9% (1.4%). The
underlying claims ratio deteriorated by 20 basis
points, mirroring the trend reported in Q3 2024.
However, a smaller deterioration was visible
compared to the first part of the year, reflecting
the impact of ongoing profitability initiatives.
The underlying ratio development was
supported by profitability initiatives to offset
inflationary pressures but dampened by a
slightly increased frequency of motor claims and
higher average claims costs.
Expenses
The expense ratio was lower at 12.2% (12.5%).
The segment realised synergies related to the
acquisition of RSA Scandinavia’s Swedish and
Norwegian businesses but continued to reinvest
in its operational setup.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 26
Financial highlights Q4 2024
6.8%
1,095m 12.2%
83.5%
Revenue growth
(in local currencies)
Insurance service result
(DKK)
Expense ratio
Combined ratio
2023: 7.7%
2023: 991m
2023: 12.5%
2023: 84.0%
-
Commercial
Results 2024
Commercial reported an insurance service
result of DKK 2,355m (DKK 2,010m) and a
combined ratio of 75.4% (78.1%). The higher
insurance service result was supported by a
significantly lower level of large claims.
Insurance revenue growth was mainly driven by
price adjustments to mitigate inflationary
pressures. The underlying claims ratio improved
due to the segment's focus on implementing
profitability initiatives and a continued focus on
smaller commercial customers.
Insurance revenue
Insurance revenue amounted to DKK 9,588m
(DKK 9,178m), corresponding to growth of 4.5%
(3.9%) measured in local currencies. In
Denmark, growth was mainly driven by price
adjustments to mitigate inflationary pressures
and supported by an increase in the smaller
commercial segment. In Norway, growth was
driven by price adjustments complemented by
good sales performance across multiple
channels. In Sweden, growth was impacted by
the business units' repricing efforts to offset
inflationary pressures. The price adjustments
were widely accepted by customers, as
indicated by the retention rates in all countries
remaining relatively stable, demonstrating a
high level of customer satisfaction. In Denmark,
the retention rate slightly deteriorated to 87.2%
(87.6%) as a consequence of a period with
continued price adjustments. In Norway, the
retention rate experienced a minor increase to
89.6% (89.5%), while in Sweden the retention
rate dropped to 87.8% (88.6%).
Claims
The claims ratio, net of reinsurance, was
60.1% (62.3%) and characterised by a
significantly lower level of large claims at 3.0%
(3.8%). The first part of the year experienced a
higher level of large claims, whereas the
second part of the year reported a lower level
of large claims. The weather claims level was
lower at 2.5% (3.1%) despite the first part of
the year witnessing a higher level of weather
claims, while the second part of the year was
more favourable. Run-off level was lower at
2.8% (3.4%). The underlying claims ratio
improved driven by price adjustments and a
focus on growing the smaller commercial
customer segment, as this segment is more
profitable. The increases in claims costs were
highest for motor comprehensive driven, as
expected, by a slightly increased frequency of
motor claims and slightly higher average
claims costs.
Expenses
The expense ratio was lower at 15.3%
(15.8%). The segment primarily aims to
reduce distribution costs by leveraging more
efficient sales channels.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 27
Key figures - Commercial
Q4
Q4
DKKm
2024
2023
2024
2023
Insurance revenue
2,409
2,315
9,588
9,178
Gross claims
-1,255
-1,296
-5,186
-5,517
Insurance operating costs
-388
-390
-1,469
-1,454
Insurance service expenses
-1,642
-1,686
-6,654
-6,972
Profit/loss on gross business
767
629
2,934
2,207
Net expense from reinsurance contracts
-195
-6
-579
-197
Insurance service result
572
623
2,355
2,010
Run-off gains/losses, net of reinsurance
55
102
267
315
Key figures and ratios
Revenue growth in local currencies (%)
4.3
4.2
4.5
3.9
Gross claims ratio (%)
52.1
56.0
54.1
60.1
Net reinsurance ratio (%)
8.1
0.3
6.0
2.1
Claims ratio, net of reinsurance (%)
60.2
56.2
60.1
62.3
Expense ratio (%)
16.1
16.9
15.3
15.8
Combined ratio (%)
76.3
73.1
75.4
78.1
Combined ratio exclusive of run-off (%)
78.6
77.5
78.2
81.5
Run-off, net of reinsurance (%)
-2.3
-4.4
-2.8
-3.4
Large claims, net of reinsurance (%)
3.6
2.0
3.0
3.8
Weather claims, net of reinsurance (%)
2.3
3.0
2.5
3.1
25%
The business area accounts for 25% of
the Group’s total insurance revenue
Financial highlights 2024
4.5%
2,355m 15.3%
75.4%
Revenue growth
(in local currencies)
Insurance service result
(DKK)
Expense ratio
Combined ratio
2023: 3.9%
2023: 2,010m
2023: 15.8%
2023: 78.1%
-
Results Q4 2024
The insurance service result was DKK 572m
(DKK 623m). The insurance service result was
negatively impacted by a higher combined
impact from large and weather claims and by a
lower run-off result. Insurance revenue growth
was mainly driven by price adjustments to
mitigate inflationary pressures, while the
underlying claims ratio was broadly stable due
to the segment's focus on implementing
profitability initiatives.
Insurance revenue
Insurance revenue amounted to DKK 2,409m
(DKK 2,315m), corresponding to growth of 4.3%
(4.2%) measured in local currencies. In
Denmark, growth was mainly driven by price
adjustments to mitigate inflationary pressures.
In Norway, growth was driven by price
adjustments to mitigate inflationary pressures
and complemented by good sales performance
across multiple sales channels. In Sweden,
growth was impacted by the business unit's
repricing efforts to offset inflationary pressures.
Claims
The claims ratio, net of reinsurance, was 60.2%
(56.2%) and was characterised by a higher level
of large claims at 3.6% (2.0%) and a lower level
of run-off at 2.3% (4.4%). Weather claims were
lower at 2.3% (3.0%), positively contributing to
the result. The underlying claims ratio was
broadly stable driven by price adjustments and
by focusing on growing the smaller commercial
customer segment, as this segment is more
profitable. The increases in claims costs were
highest for motor comprehensive driven, as
expected, by a slightly increased frequency of
motor claims and slightly higher average claims
costs.
Expenses
The expense ratio was lower at 16.1% (16.9%).
The segment primarily aims to reduce
distribution costs by leveraging more efficient
sales channels.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 28
Financial highlights Q4 2024
4.3%
572m
16.1%
76.3%
Revenue growth
(in local currencies)
Insurance service result
(DKK)
Expense ratio
Combined ratio
2023: 4.2%
2023: 623m
2023: 16.9%
2023: 73.1%
-
Corporate
Results 2024
Corporate reported an insurance service result
of DKK 472m (DKK 590m) and a combined ratio
of 83.8% (83.2%). The lower insurance service
result was adversely impacted by lower
insurance revenue. The combined ratio was
impacted by a more favourable large claims
experience partly offset by a lower run-off
result. The segment reports a top-line decline in
line with the strategy of rebalancing the portfolio
and increasing profitability. With a combined
ratio of 83.8% for the full year, the corporate
segment has delivered on the strategic target of
achieving a combined ratio of less than 90%.
Insurance revenue
Insurance revenue amounted to DKK 2,908m
(DKK 3,502m), corresponding to a top-line
decline of 16.7% (2.3%) measured in local
currencies. A few relatively large customers
accounted for more than half of the decline. In
general, approximately 80% of the top-line
decline relates to higher churn in the first part of
the year. The decline aligns with Tryg's strategy
of rebalancing the portfolio in order to reduce
volatility. The fall in the top-line was visible in all
countries as the segment rebalanced its
exposures.
Claims
The claims ratio, net of reinsurance, was 70.4%
(70.9%), characterised by a significantly lower
level of large claims at 7.6% (16.6%). In the
comparison year, Tryg was impacted by a few
large claims below the company's retention
level. The run-off result was significantly lower
at 7.9% (14.7%), whilst weather claims were
lower at 1.1% (1.7%). The segment continued to
display good underwriting discipline by
implementing profitability initiatives across
countries and maintaining a strong focus on
rebalancing the portfolio, as evidenced by an
improved underlying claims ratio.
Expenses
The expense ratio was higher at 13.4% (12.3%).
The higher expense ratio was impacted by the
lower top-line. In general, a lower expense ratio
should be expected for the Corporate segment,
as acquisition costs in the broker channel are
paid for by customers via a commission to
brokers.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 29
Key figures - Corporate
Q4
Q4
DKKm
2024
2023
2024
2023
Insurance revenue
704
879
2,908
3,502
Gross claims
-550
-606
-2,200
-2,448
Insurance operating costs
-101
-107
-390
-430
Insurance service expenses
-651
-713
-2,591
-2,878
Profit/loss on gross business
53
166
317
624
Net expense from reinsurance contracts
-11
-125
154
-34
Insurance service result
41
41
472
590
Run-off gains/losses, net of reinsurance
53
92
231
517
Key figures and ratios
Revenue growth in local currencies (%)
-20.3
2.5
-16.7
2.3
Gross claims ratio (%)
78.2
69.0
75.7
69.9
Net reinsurance ratio (%)
1.6
14.3
-5.3
1.0
Claims ratio, net of reinsurance (%)
79.8
83.3
70.4
70.9
Expense ratio (%)
14.4
12.1
13.4
12.3
Combined ratio (%)
94.1
95.4
83.8
83.2
Combined ratio exclusive of run-off (%)
101.7
105.9
91.7
97.9
Run-off, net of reinsurance (%)
-7.6
-10.5
-7.9
-14.7
Large claims, net of reinsurance (%)
7.4
12.6
7.6
16.6
Weather claims, net of reinsurance (%)
2.2
1.7
1.1
1.7
7%
The business area accounts for 7% of
the Group’s total insurance revenue
Financial highlights 2024
-16.7%
472m
13.4%
83.8%
Revenue growth
(in local currencies)
Insurance service result
(DKK)
Expense ratio
Combined ratio
2023: 2.3%
2023: 590m
2023: 12.3%
2023: 83.2%
-
Results Q4 2024
Corporate reported an insurance service result
of DKK 41m (DKK 41m) and a combined ratio of
94.1% (95.4%). The insurance service result was
adversely impacted by a lower run-off result, but
conversely, positively impacted by a lower level
of large claims. The top-line development was
negative, as the segment, in line with Tryg's
strategy, maintained a strong focus on
rebalancing the portfolio and increasing
profitability.
Insurance revenue
Insurance revenue amounted to DKK 704m
(DKK 879m), corresponding to a top-line decline
of -20.3% (2.5%) measured in local currencies. A
few selected large customers accounted for
more than half of the decline. In general,
approximately 80% of the decline in the top-line
in Q4 2024 relates to higher churn in the first
part of the year
Claims
The claims ratio, net of reinsurance, was 79.8%
(83.3%) and characterised by a significantly
lower level of large claims at 7.4% (12.6%), as
the same quarter last year was impacted by
various large claims events below Tryg's
retention level. The run-off result was lower at
7.6% (10.5%), whilst weather claims were higher
at 2.2% (1.7%). The segment continued to
display good underwriting discipline by
implementing profitability initiatives across
countries and maintaining a strong focus on
rebalancing the portfolio, as evidenced by an
improved underlying claims ratio.
Expenses
The expense ratio was higher at 14.4% (12.1%).
The higher expense ratio was impacted by the
lower top-line. In general, a lower expense ratio
should be expected for the Corporate segment,
as acquisition costs in the broker channel are
paid for by customers via a commission to
brokers.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 30
Financial highlights Q4 2024
-20.3%
41m
14.4%
94.1%
Revenue growth
(in local currencies)
Insurance service result
(DKK)
Expense ratio
Combined ratio
2023: 2.5%
2023: 41m
2023: 12.1%
2023: 95.4%
-
Investment activities
Investment result 2024
Central banks began to reduce interest rates in
2024 as inflation expectations declined, which
was a positive development after more than two
years of aggressive monetary policies in the
Western economies.
Geopolitical tensions have remained high in
various parts of the world. The outcome of the
US elections in November has sparked concerns
about potential trade wars between the United
States, Europe and China.
In Europe, there is growing apprehension about
a potential economic recession. The Swedish
central bank has lowered interest rates four
times, while the European Central Bank has
implemented three rate cuts.
In Norway, the combination of a weak currency
and high inflation has forced the Norwegian
central bank to maintain elevated interest rates.
The total market value of Tryg's investment
portfolio was DKK 61bn at year-end 2024. The
investment portfolio is split into a match
portfolio and a free portfolio. The match
portfolio at DKK 44bn is designed to minimise
capital consumption by matching the
discounting of the liabilities. At year-end 2024,
the free portfolio (the net asset value of the
company) had a market value of DKK 17bn. The
company reported a DKK 643m return on the
investment portfolio in 2024. In addition to the
result of the match and the free portfolio, the
total investment result includes other financial
income and expenses.
De-risking the free portfolio
At the Capital Markets Day on 4 December, Tryg
communicated that the company has de-risked
its free portfolio, implying the main asset is
Scandinavian covered bonds, although Tryg still
has some real estate exposure. Longer term,
Tryg does not expect to allocate capital towards
real estate assets. Tryg reinforces its low risk
approach to investments and keeps its focus on
running a stable insurance business. A stable,
low-capital-consuming investment portfolio is
the preferred choice going forward.
Match portfolio
The match portfolio reported a result of DKK
536m (DKK 468m). The match result is mainly
driven by the development in covered bonds
spreads and the yield from interest income on
premium provisions. The annual interest
income from premium provisions amounted to
DKK 343m. Interest income has declined over
2024 due to the drop in short interest rates.
Insurance provisions are discounted with swap-
based interest rates and hedged with a
combination of short duration Scandinavian
covered bonds and swap rates. Therefore
developments in the spread between covered
bonds and swap rates determines the return of
the match portfolio. A narrowing of the spreads
constitutes a gain and a widening of the spreads
constitutes a loss. In 2024, Scandinavian
covered bond spreads narrowed, leading to a
gain of approximately DKK 200m.
Free portfolio
The free portfolio reported a result of DKK
672m (DKK 622m). Virtually all assets, excluding
real estate, posted positive returns, as 2024
turned out to be a good year in terms of capital
market developments. Real estate reported a
negative return of DKK -142m. As mentioned
previously, the composition of the free portfolio
was changed in October. Tryg sold more than
DKK 7bn of risky assets and replaced them
entirely with covered and government bonds.
At the start of 2025, covered and government
bonds represent some 80% of the free portfolio,
while real estate represents 20%. Real estate
will not be an asset of choice in the long term as
disclosed at the Capital Markets Day.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 31
Financial highlights 2024
672m
Free portfolio
(DKK)
536m
Match portfolio
(DKK)
643m
Total investment return
(DKK)
Return - Investments
Q4
Q4
DKKm
2024
2023
2024
2023
Free portfolio, gross return
-73
397
672
622
Match portfolio
56
34
536
468
Other financial income and expenses
-248
-285
-565
-459
Investment result
-265
146
643
631
Return - Match portfolio
Q4
Q4
DKKm
2024
2023
2024
2023
Return, match portfolio
-181
1,863
1,473
2,580
Value adjustments, changed discount rate
466
-1,548
113
-905
Unwind of discounting
-229
-281
-1,050
-1,207
Match
56
34
536
468
-
Other financial income and expenses
Tryg books various items against this line, the
most important being interest expenses on
subordinated loans. Several other items, such as
the cost related to the currency hedges to
protect own funds and general balance sheet
items, the value change in inflation swaps and
costs related to running the
investment operation, are also booked against
this line.
Other financial income and expenses amounted
to DKK -565m (DKK -459m). The higher than
normal expenses are mainly due to an expense
related to the inflation hedge of DKK -115m and
higher than normal expenses to hedge balance
sheet items of DKK -76m (DKK 162m).
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 32
Modelling the free portfolio from the start of 2025
The free portfolio is made up by 80% Scandinavian covered bonds
and government bonds with an average duration of 2 years as well as
20% in real estate. To model the return of the Scandinavian covered
and government bonds' portfolio, a weighted average of the following
two indexes can be used, 50% NYKRCMB2 and 50% NYKRCMG2. The
real estate portfolio is assumed to produce a return of 6.5%
normalised annually, as disclosed at CMD in December 2024.
-
Investment result Q4 2024
In Q4, Tryg sold DKK 7.4bn worth of risky assets
and reallocated these investments into more
stable and less capital consuming Scandinavian
covered bonds and government bonds. The
investment result in Q4 totalled DKK -265m
(DKK 146m).
When corporate bonds, equities and diversifying
alternatives were liquidated as part of the de-
risking in October, the financial markets were
down, which resulted in a negative one-off
impact on the free portfolio of approximately
DKK 80m. The loss is in line with the negative
market developments in October. The free
portfolio reports a return of DKK -73m,
corresponding to a -0.4% return for the quarter.
Government and covered bonds added a
satisfactory DKK 49m return, corresponding to
0.6% and 2.4% annualised. The real estate
exposure developed slightly negatively during
the quarter and reported a DKK -53m return.
The match portfolio reported a DKK 56m return
for the quarter. The return is made up of a return
on the premium provisions, which added DKK
73m for the quarter, slightly offset by a modest
widening of covered bond spreads.
Other financial income and expenses amounted
to DKK -248m, clearly more negative than the
normalised quarterly level of DKK -90m. A DKK
-70m value change in the inflation swaps was
booked. Interest expenses related to
subordinated loans amounted to DKK -43m
(DKK -48m), in line with previous quarters, while
expenses for hedging balance sheet items
amounted to DKK -56m (DKK 34m).
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 33
Return - free portfolio
Q4
Q4
Q4
Q4
Investment assets
DKKm
2024
2024 (%)
2023
2023 (%)
2024
2024 (%)
2023
2023 (%)
31.12.2024
31.12.2023
Government and Covered Bonds
49
0.6
131
2.2
253
3.3
240
4.2
13,282
7,198
Corporate and Emerging Markets Bonds
-43
-1.6
199
6.9
104
3.7
254
8.2
0
2,969
Investment grade credit
-19
-1.8
74
6.7
20
1.7
97
8.2
0
1,113
Emerging markets bonds
-19
-1.9
78
7.0
57
5.5
97
8.3
0
1,157
High-yield bonds
-5
-0.7
48
7.0
27
3.8
61
8.2
0
699
Diversifying Alternatives
-41
-2.0
8
0.7
27
1.4
77
6.4
0
1,456
Equity
15
0.4
150
4.7
430
16.3
377
11.1
72
2,418
Real Estate
-53
-1.6
-91
-2.6
-142
-4.2
-326
-8.5
3,278
3,465
Total
-73
-0.4
397
2.4
672
3.6
622
3.6
16,632
17,506
Financial highlights Q4 2024
-73m
Free portfolio
(DKK)
56m
Match portfolio
(DKK)
-265m
Total investment return
(DKK)
Tax authorities
-
Tax governance
Tryg Group acknowledges that the taxes we pay
are a significant contribution to sustainable
societies in the countries we do business in.
Tryg Group is a transparent and responsible tax
payer, and our tax governance and key tax
compliance focus is ensuring that all taxes paid
are fair and in accordance with legislation.
The tax governance approach is embedded in
the Tryg Tax Policy inspired by GRI Sustainability
Reporting standard #207 regarding tax. The Tax
Policy governs all entities in the Tryg Group, all
taxes paid by the Tryg Group and, to the extent
possible, also to investments made by Tryg
Group.
The Tryg Tax Policy is overseen by the Chair of
the Tryg Risk Committee and reviewed and
approved annually by the Executive Board and
the Supervisory Board of Tryg. Our approach to
tax risk management is therefore aligned with
the Tryg Group's risk management and actively
monitored to ensure that tax positions are
within the strategic and business objectives.
Tax matters are a part of the finance function
and overseen by the Group CFO. Tax operations
and tax risk management are undertaken on a
day-to-day basis by the tax team in Tryg.
The Tryg Tax Policy is available on our website
at www.tryg.com.
Corporate income tax 2024
Corporate income tax amounted to DKK
1,488m (DKK1,178m), corresponding to an
effective tax rate for Tryg Group of 24%.
The tax rate is primarily impacted by the
geographical split of the business across the
three Scandinavian countries. Tryg Group did
not receive any tax relief or tax grants from
governments in 2024.
The effective tax rate for 2025 is expected to be
approximately 24%.
Pillar II - Global minimum tax regime
Tryg Group is within scope of the OECD global
minimum tax regulations, also known as Pillar II
(EU Minimum Tax Directive and OECD Safe
Harbour rules). Based on the mandatory
exception, Tryg has assessed that no entities in
the Group will be impacted by a top-up tax in
2024.
Total tax impact - the Tryg Tax Universe
Tryg Group paid a total tax contribution to tax
authorities of DKK 6,041m in 2024. The total tax
contribution arises from various taxes from our
operations and business activities, see the Tax
Universe table on the right.
For further information on the split of the total
tax contribution, reference is made to the
Financial Statement below.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 34
Customers
Insurance revenue tax
Tax collected by Tryg
Stamp duties
Natural hazard tax
Road traffic insurance tax
Guarantee fund tax
Business
Corporate tax
Tax paid by Tryg
Tax collected by Tryg
VAT
Natural perils pool
People
Payroll tax
Social changes
Vendors
VAT
Investments
Withholding tax
Transaction tax
Taxes collected
are indirect taxes based on
the insurance premiums.
They are collected and paid
to the authorities by Tryg
Taxes paid
are taxes paid by Tryg
directly to the local tax
authorities.
Tryg Tax Universe
-
Governance
• Corporate governance
• Capital and risk management
• Investor information
• Supervisory Board
• Executive Board
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 35
.-
Corporate governance
Tryg focuses on managing the company in
accordance with the principles of good
corporate governance and generally complies
with the Danish recommendations prepared by
the Committee on Corporate Governance. The
Recommendations on Corporate Governance
are available at corporategovernance.dk. At
tryg.com, Tryg has published its statutory
corporate governance report based on the
‘comply-or-explain’ principle for each individual
recommendation. This section on corporate
governance is an excerpt of the corporate
governance report.
Download Tryg’s Statutory Corporate
Governance Report at www.tryg.com/en/
downloads-2024
Dialogue between Tryg, its shareholders and
other stakeholders
Tryg’s Investor Relations (IR) department
maintains regular contact with analysts and
investors.
Together with the Executive Board, the Investor
Relations team organises investor meetings,
conference calls and participates in conferences
in Denmark and abroad.
The Supervisory Board is regularly informed
about the dialogue with investors and other
stakeholders. Tryg has an IR policy which states
that all company announcements may be
published in English only. Tryg publishes
quarterly interim reports in English.
Tryg also prepares quarterly investor
presentations which are used in the dialogue
with investors and analysts. Additionally, Tryg
also regularly publishes IR newsletters on
relevant topics. All announcements, financial
reports, presentations and newsletters are
available at tryg.com. This material provides all
stakeholders with a comprehensive picture of
Tryg’s position and performance.
The consolidated financial statements are
presented in accordance with IFRS Accounting
Standards. At tryg.com, stakeholders are invited
to subscribe to press releases, company
announcements and insider trading
announcements. A number of internal
guidelines ensure that the disclosure of price-
sensitive information complies with legislation
and stock exchange codes of conduct. Tryg has
adopted a number of policies describing the
relationship between different stakeholders.
See the IR Policy at www.tryg.com/en/
governance/policies
Annual General Meeting
Tryg holds an Annual General Meeting (AGM)
every year. As required by the Danish
Companies Act and Tryg’s Articles of
Association, the AGM is convened via a
company announcement and at tryg.com
subject to at least three weeks’ notice.
Shareholders may also opt to receive the notice
by post or email. The notice contains
information about the time and venue, or
technical requirements for attending the
meeting virtually, as well as an agenda for the
meeting.
All shareholders are encouraged to attend the
general meeting. If the Supervisory Board
decides to hold general meetings exclusively
through electronic means, detailed information
concerning registration and procedures for
virtual attendance, including how to ask
questions and submit comments and cast votes,
will be made available at Tryg’s website and in
the notice convening such electronic general
meetings. Thus, there will be clear instructions
and feedback channels ensuring sufficient
safeguards for shareholders' participation rights
at potential future virtual-only meetings.
Shareholders may propose items to be included
on the agenda for the AGM and may ask
questions before and at the meeting.
Shareholders may vote at the AGM, by post, or
appoint the Supervisory Board or a third party as
their proxy. Shareholders may consider each
item on the agenda. The proxy form and form
for voting by post are available at tryg.com
before the AGM.
Furthermore, prior to the general meeting, Tryg
invites shareholders to submit written questions
to be considered at the general meeting.
Information on how to exercise shareholders’
rights at the general meeting is clearly
communicated to shareholders and published
at tryg.com.
Share and capital structure
Tryg’s share capital comprises a single share
class, and all shares rank pari passu. The largest
shareholder, TryghedsGruppen smba, owns
48.1%1 of the shares and is the only shareholder
owning more than 5% of the company’s shares.
The Supervisory Board ensures that Tryg’s
capital structure is aligned with the needs of the
Group and the interests of its shareholders and
that it complies with the requirements
applicable to Tryg as a financial undertaking.
Tryg has adopted a capital plan and a
contingency capital plan, which are reviewed
annually by the Supervisory Board.
Depending on the financial results, each year
the Supervisory Board proposes the distribution
of quarterly dividends, and possibly an
extraordinary annual dividend if a further
adjustment of the capital structure is required.
Duties, responsibilities and composition of the
Supervisory Board2
The Supervisory Board is responsible for the
central strategic management and financial
control of Tryg and for ensuring that Tryg’s
business setup is robust. This is achieved by
monitoring targets and frameworks based on
regular and systematic reviews of strategy and
risks.
The Executive Board reports to the Supervisory
Board on strategies and action plans, market
developments and Group performance, capital
requirements and risks, etc. The Supervisory
Board holds an annual strategy seminar to
decide on and/or adjust the Group’s strategy to
sustain value creation in the company. The
Executive Board works with the Supervisory
Board to ensure that the Group’s strategy is
developed and monitored. The Supervisory
Board ensures that the necessary skills and
financial resources are available for Tryg to
achieve its strategic targets. The Supervisory
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 36
1 Calculated excluding Tryg's own shares
2 ESRS disclosure points incorporated by reference in this section (ESRS ID): GOV-1_08-09; _14, and GOV-2_01-02
-
Board specifies its activities in a set of rules of
procedure and an annual cycle for its work.
Each year, the Supervisory Board reviews and
adopts the rules of procedure of the Supervisory
Board and the Executive Board, comprising
relevant policies, guidelines and instructions
describing reporting requirements and
requirements for communication with the
Executive Board. Financial legislation also
requires the Executive Board to disclose all
relevant information to the Supervisory Board
and report on compliance with limits defined by
the Supervisory Board and in legislation.
Over the coming strategy period, Tryg wants to
further enhance ESG board oversight. Among
the initiatives are further elaboration to the
Board on ESG in the quarterly reports, and a
quarterly ESG dashboard to ensure close
monitoring of development against targets and
strategic initiatives.
In 2024, the 2027 strategy and targets were
developed and received final approval from the
Supervisory Board. At the annual Board strategy
seminar, the full strategy, including ESG, was
presented and discussed. The strategy
encompasses numerous material ESG impacts,
risks and opportunities translated into strategic
objectives, such as targets related to climate
impact, products that meet the EU Taxonomy
criteria for climate adaptation, employees and
diversity, and resource use in claims handling.
Supervisory board composition and diversity of
members1
The current nine external members of the
Supervisory Board were elected by the annual
general meeting for a term of one year. Of the
nine members elected at the annual general
meeting, six (67%), and thus the majority, are
independent, thus complying with
recommendation 3.2.1. in the
Recommendations on Corporate Governance.
The other three members are dependent, as
they are appointed by Tryg’s largest
shareholder, TryghedsGruppen. See pages 47 -
50 for information on when the individual
members joined the Supervisory Board, were re-
elected, and when their current election period
ends. To ensure the integration of new talent
into the Supervisory Board, members elected by
the annual general meeting may hold office for a
maximum of twelve years.
See details about the independent board
members in the section Supervisory Board
on pages 47-50 and at www.tryg.com/
en/governance/management/
supervisory-board
The Supervisory Board has 14 members in total,
all of which are non-executive, including five
employee-elected members. In total the board
currently comprises seven women and seven
men (including one male and four female
employee representatives). Three out of the
nine members elected at the annual general
meeting are women. This complies with
legislation as well as Tryg’s policy.
Tryg wishes to keep a balanced distribution in
the composition of the Supervisory Board with
respect to gender, nationality and age. The
members are aged between 44 and 69 years,
are from Denmark, Norway and Sweden and
represent the markets that Tryg operates in.
Tryg's employees are entitled to elect a number
of board representatives, who have the same
rights, duties and responsibilities as any other
member of the Supervisory Board.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 37
Accounting principles
GOV-1_01 Size of the Supervisory Board: Number of non-executive members: The total
number of members in the supervisory Board excluding employee-elected
representatives. Also in accordance with section 143(1) in BEK no. 503 of 23/05/2024.
GOV-1_02 Number of executive members: Tryg’s Supervisory Board consists of only non-
executive directors who have no management responsibilities.
GOV-1_03 Number of employee representatives: The employee representatives are
elected for a term of four years. Percentage of members of administrative, management
and supervisory bodies by gender and other aspects of diversity
GOV-1_05 Board members age group, <30 years, 30-49 years and 50 years and above:
The age groups are calculated at the end of the reporting period and include all board
members.
GOV-1_06 Board's gender diversity ratio: The average ratio of female to male board
members is calculated at the end of the reporting period. Also, in accordance with section
143(1) in BEK no. 503 of 23/05/2024.
GOV-1_07 Percentage of independent board members: Information about board
members and their independence is published on Tryg's website https://tryg.com/en/
board-composition or in the CVs on page 47-50. Independent members are calculated
based on their relation to TryghedsGruppen. The figure are excl. employee representative.
The role of the Supervisory Board excl. employee representatives
ESRS ID
Unit
2024
2023
2019
GOV-1_01 Size of the Supervisory Board: Number of non-
executive members
Number
9
9
8
GOV-1_02 Number of executive members
Number
0
0
0
GOV-1_03 Number of employee representatives
Number
5
5
4
GOV-1_05 Percentage of members of administrative, management and
supervisory bodies by gender and other aspects of diversity
Board members age group, <30 years
Number
0
0
0
Board members age group, 30-49 years
Number
3
4
1
Board members age group, 50 and above
Number
11
10
11
GOV-1_06 Board's gender diversity ratio
%
33
33
50
Other information about the Supervisory Board
GOV-1_07 Independent supervisory board members
%
67
67
63
1 ESRS disclosure points incorporated by reference in this section (ESRS ID): GOV-1_01-07;_14, and GOV-2_01-03
-
To ensure geographic representation, employee
representatives are divided across the three
countries with two representatives from
Denmark, two from Sweden and one from
Norway.
The Supervisory Board considers the
composition, development, risk and succession
plans of the Executive Board in connection with
the annual evaluation of the Executive Board,
and regularly in connection with board
meetings. Each year, the Supervisory Board
discusses Tryg’s activities to guarantee diversity
at management levels. Tryg attaches great
importance to diversity at all management
levels. Tryg has adopted policy and target
figures for the underrepresented gender that set
out specific targets to ensure diversity, equal
opportunities and access to management
positions for qualified men and women. Read
more about the policy, specific initiatives,
targets and progress on pages 105-113.
Skills and expertise available – Supervisory
board1
The Supervisory Board performs an annual
evaluation of its work and skills to ensure that it
possesses the expertise required to perform its
duties in the best possible way. In addition to the
annual self-evaluation, an assessment is
facilitated with external assistance every three
years to ensure objectivity in the evaluation
process. The Supervisory Board focuses
primarily on the following qualifications and
skills: business judgement, problem solving,
networking, risk management, succession
management, general management, CFO/audit,
people and organisation, ESG business
development, financial services, risk and
regulatory compliance, insurance – commercial
and product insurance – technical/financial
modelling, IT & digitalisation, value chain
optimisation and customer journey.
As part of the evaluation, the Supervisory Board
also focuses on other executive positions and
board memberships held by the members of the
Supervisory Board, including the level of
commitment and workload associated with
each position to prevent potential overboarding.
The evaluation is based on the individual board
member’s ability to devote the necessary time
for preparation, their performance, attendance
and participation at committee and board
meetings in Tryg. Specifically for ESG, the
evaluation confirmed that the Board has been
involved in discussing matters related to ESG
strategy and reporting, and that the necessary
governance and actions are in place to
implement the new reporting requirements.
In 2024, an externally assisted evaluation was
conducted of all board members and members
of the executive management based on a
questionnaire focusing on board competencies
and performance and individual interviews with
each member of the Supervisory Board. The
overall conclusion was that Tryg has a very
good, value-adding and professional
Supervisory Board that works efficiently and in
accordance with sound governance principles.
The evaluation resulted in a continued strong
focus on ESG, Diversity and Digitalisation.
See CVs and descriptions of skills in the
section Supervisory Board on pages 47-50
and at www.tryg.com/en/governance/
management/supervisory-board
The board has broad representation of
members with ESG experience, as reflected in
the CVs of each board member available on
pages 47-50.
Duties and composition of the Executive Board
Each year, the Supervisory Board reviews and
adopts the rules of procedure of the Supervisory
Board and the Executive Board, comprising
relevant policies, guidelines and instructions
describing reporting requirements and
requirements for communication with the
Executive Board. Financial legislation also
requires the Executive Board to disclose all
relevant information to the Supervisory Board
and report on compliance with limits defined by
the Supervisory Board and in legislation.
The Supervisory Board considers the
composition, development, risk and succession
plans of the Executive Board in connection with
the annual evaluation of the Executive Board,
and regularly in connection with board
meetings. Each year, the Supervisory Board
discusses Tryg’s activities to guarantee diversity
at management levels. Tryg attaches great
importance to diversity at all management
levels. Tryg has adopted policy and target
figures for the underrepresented gender that set
out specific targets to ensure diversity and equal
opportunities and access to management
positions for qualified men and women. For
several years, Tryg has had a strong focus on
diversity and has been aiming to increase the
number of women in management positions to
41%2.The number of women in management
positions increased from 41%3 in 2023 to 43%
in 2024, exceeding the initial target. Progress
has been driven through continuous focus in the
recruitment and HR processes.
See the General action plan for diversity
including women in management at
www.tryg.com/en/governance/policies
Board committees
Tryg has an Audit Committee, a Risk Committee,
a Nomination Committee, a Remuneration
Committee and an IT Data Committee. The
frameworks for the committees’ work are
defined in their terms of reference.
The Board Committees’ terms of
reference can be found at www.tryg.com/
en/governance/management/
supervisory-board/board-committees
including descriptions of members,
meeting frequency, responsibilities and
activities during the year.
All members of the Audit Committee and three
out of five members of the Risk Committee,
including the committee chair, are independent.
Three out of the five members of the
Remuneration Committee are independent,
including the committee chair. Two out of three
members of the Nomination Committee are
independent, including the committee chair.
Three out of five members of the IT Data
Committee are independent, including the
committee chair.
Board committee members are elected
primarily on the basis of their specialist skills
considered important by the Supervisory Board.
The involvement of the employee
representatives in the committees is also
considered important. The committees
exclusively prepare matters for decision by the
entire Supervisory Board.
Read more about the ESG oversight at
committee level on page 59.
The specialist skills of all members are
also described at www.tryg.com/en/
governance/management/supervisory-
board/about-board
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 38
1 ESRS disclosure points incorporated by reference in this section (ESRS ID): GOV-1_04; _08;_15-17; G1.GOV-1_02
2 Accounting principles available on page 112
3 The definition has been aligned with the ESRS definition as reported in the Sustainability Statement, which has slightly changed the figures from 2023.
-
Remuneration of management
Tryg has adopted a remuneration policy for Tryg
in general that includes specific schemes for the
Supervisory Board, the Executive Board and
other employees in Tryg whose activities have a
material impact on the risk profile of the
company - risk-takers. The remuneration policy
for 2024 was adopted by the Supervisory Board
in January 2024 and approved by the annual
general meeting on 21 March 2024.
The Chair of the Supervisory Board reports on
Tryg’s remuneration policy each year in
connection with the review of the annual report
at the annual general meeting. The board’s
proposal for the remuneration of the
Supervisory Board for the current financial year
is also submitted for approval by the
shareholders at the annual general meeting.
Remuneration of the Supervisory Board
Members of Tryg’s Supervisory Board receive a
fixed fee and are not covered by any form of
incentive or severance programme or pension
scheme. Their remuneration is based on trends
in peer companies and benchmarked against
Nasdaq Copenhagen OMX C25, taking into
account the required skills and efforts and the
scope of the Supervisory Board’s work, including
the number of meetings held. The remuneration
received by the Chair of the Supervisory Board is
three times that received by ordinary members,
while the Deputy Chair’s remuneration is twice
that received by ordinary members of the
Supervisory Board.
Remuneration of the Executive Board
Members of the Executive Board are employed
on a contractual basis, and all terms of their
remuneration are established by the
Supervisory Board within the framework of the
approved remuneration policy.
Tryg wants to strike an appropriate balance
between management remuneration,
predictable risk and value creation for the
company’s shareholders in the short and long
term.
The Executive Board’s remuneration consists of
a fixed base salary, a pension contribution of
25% of the base salary and other benefits. The
base salary must be competitive and
appropriate for the market and provide
sufficient motivation for all members of the
Executive Board to do their best to realise the
company’s defined targets.
Furthermore, Tryg has an incentive programme
for the Executive Board with a variable pay
element of up to 50% of the fixed salary
including pension.
The allocation of the variable salary
components under the incentive programme is
based on a result and performance assessment
for the performance year (financial year) in
accordance with specific weighted financial and
non-financial targets decided at the beginning of
the performance year.
The principal purpose of the incentive
programme is to ensure the congruence of the
financial interest of the participants and the
company’s shareholders and to create a
correlation between remuneration and
performance results. Secondly, the programme
should contribute to retaining the participants in
the programme at Tryg.
For the performance year 2024, the variable pay
element was in January 2025 allotted as a
combination of cash and conditional shares.
The allotted conditional shares are deferred for
five years from the time of allotment. After the
end of the deferral period, the participant will
receive free shares in Tryg A/S corresponding to
the numbers of conditional shares allotted. The
granting of free shares is conditional upon the
fulfilment of additional conditions such as
continued employment and back-testing
(testing prior to granting to ensure that the
criteria on which the variable salary is based are
still met at the time of the granting of free
shares).
Read more about remuneration at Tryg in
the Remuneration policy and in the
Remuneration Report at www.tryg.com/
en/governance/remuneration
Independent and internal audit
The Supervisory Board ensures monitoring by
competent and independent auditors. The
Group’s internal auditor attends all board
meetings as well as meetings in the Audit
Committee and Risk Committee. The
independent auditor attends the annual board
meeting where the annual report is presented as
well as meetings in the Audit Committee and
Risk Committee.
The annual general meeting appoints an
independent auditor recommended by the
Supervisory Board. At least once a year, the
auditors meet with the Audit Committee without
the presence of the Executive Board.
The Audit Committee chair deals with any
matters that need to be reported to the
Supervisory Board.
Deviations and explanations
Tryg complies with all the Recommendations on
Corporate Governance.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 39
-
Capital and risk management
Risk management is a key function at Tryg. The
assessment and management of Tryg’s
aggregated risk and associated capital
requirement constitute a core element in the
management of the company.
Tryg’s risk management is based on the targets
and strategy and the risk exposure limits
determined by the Supervisory Board.
Tryg’s Supervisory Board defines the framework
for the company’s target risk appetite and
thereby the capital which must be available to
cover any losses. The company’s risk
management is based on four risk categories:
Strategic and business risk, Insurance risk,
Investment risk and Operational risk. A detailed
description of these can be found in the tables
below.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 40
Strategic and business risk
Definition
Strategy
Risk Management
Objectives and methods
Financial losses or lost opportunities due to a
lack of ability to carry out business plans and
strategies.
This includes the risk of not being able to
adjust to changing market conditions in a
timely fashion.
Tryg is one of the most successful non-life
insurance companies in Scandinavia.
Tryg has chosen to implement a
decentralised organisation with a large degree
of autonomy for each business unit. This
ensures a timely reaction to changing market
conditions in the separate business units.
The risk management policy adopted by the
Supervisory Board sets out tolerance limits
and guidelines for risk management.
The strategy process sets out overall strategic
objectives. This is done as a bottom-up
process where the individual business units
contribute with concrete business plans.
Risk management carries out ongoing risk
identification and assessment to ensure that
all existing and emerging strategic and
business risks are reported to the Supervisory
Board on a quarterly basis - thus providing
close monitoring of each business unit with
regard to their performance towards the
overall strategic objectives.
.-
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 41
Insurance risk
Definition
Strategy
Risk Management
Objectives and methods
The risk that insurance premiums are
insufficient to cover the compensation and
other costs associated with the insurance
business.
The risk of the insurance provisions being
inadequate.
Taking on insurance risk is the cornerstone of
Tryg's business model. It is therefore naturally
the area where Tryg has the largest risk
appetite.
Tryg's main focus is to write non-life insurance
business in Scandinavia with a focus on the retail
segment. The Private and Commercial businesses
are considered the most attractive segments due
to their higher margins while volatility and capital
requirements are lower than other segments.
The insurance portfolio is well-diversified and
profitable with an overweight on the retail
segment.
Tryg has a conservative approach to claims
provisioning
The insurance risk policy adopted by the
Supervisory Board sets out general guidelines
for permitted insurance risk. This includes
guidelines for provisioning, general
underwriting principles, new products,
profitability measuring, reinsurance, etc.
Capital Markets Day targets for ROOF and UW
results set the overall ambition for profitability
versus capital consumption (measure of
unexpected risk).
Day-to-day monitoring of developments in the
insurance business (premium growth,
underlying profitability, capital consumption,
etc.) is key to ensuring development in line
with desired risk appetite.
Reinsurance is used to reduce the underwriting
risk in situations where this cannot be achieved to
a sufficient degree via ordinary diversification. The
retention limit specifies the maximum loss that
Tryg is willing to take on a specific event. The
capacity of the reinsurance programme is set so
that it is very unlikely that a breach will occur.
Both the retention limit and the capacity are
approved by the Supervisory Board.
The internal model used to calculate the solvency
capital requirements in Solvency II is used to
allocate capital consumption to the business and
thereby ensure sufficient profitability in the
insurance business.
The actuary function calculates the technical
provision based on the guidelines set out in the
insurance risk policy. These are regularly
presented to the Supervisory Board.
-
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 42
Investment risk
Definition
Strategy
Risk Management
Objectives and methods
Financial losses due to changes in the value
of financial assets or liabilities.
Tryg has decided to divide its investment
assets into the free portfolio and the match
portfolio.
The strategy for the match portfolio is to
mitigate interest rate risk from provisions.
The strategy of the free portfolio is to support
Tryg's dividend policy and ROOF target. In Q4
2024, Tryg decided to de-risk the free
portfolio and thereby enhance earnings
stability.
The investment risk policy adopted by the
Supervisory Board sets out general guidelines
and specific tolerance limits for permitted
investment risk.
Daily reporting on investment return on all
asset classes.
Independent daily control ensures compliance
with permitted risk-taking.
Operational risk
Definition
Strategy
Risk Management
Objectives and methods
Operational risk is understood as the risk of
loss due to inadequate or failed internal
processes, people and/or system errors, or
as a result of external events.
The Supervisory Board sets out the overall
strategy regarding operational risk.
The operational risk policy adopted by the
Supervisory Board sets out tolerance limits
and general guidelines for operational risk.
This includes general guidelines for IT
security, physical security, compliance, fraud,
money laundering, contingency planning and
model risk.
Ongoing identification, measurement,
management, monitoring and reporting on
risks and incidents potentially resulting in a
loss or a near loss for Tryg.
This is ensured by implemented methods
covering incident management, operational
risk self-assessments and internal controls,
and through business continuity
management.
-
Capital management
Capital management and capital modelling are
central and key functions of the finance team at
Tryg. Capital management broadly covers the
company’s current and future capital
requirements, capital allocation to the different
lines of business and required returns. In
addition, capital management analyses the
dividend outlook and the ability of the company
to meet its Return On Own Funds target (ROOF).
Tryg’s solvency ratio is a function of
developments in own funds and the solvency
capital requirement (based on the approved
partial internal model). Tryg has modelled the
insurance risk internally, while all other models
are based on the standard formula. The capital
model is based on Tryg’s risk profile and takes
into consideration the composition of Tryg’s
insurance portfolio, geographical diversification,
reinsurance programme, investment mix and
overall level of profitability. The solvency ratio
was 196% at year-end 2024 compared to 197%
at year-end 2023.
The key components of Tryg’s own funds are
shareholders’ tangible equity, qualifying debt
instruments (both Tier 1 and Tier 2 debt) and
future profit. Own funds totalled DKK 13,239m
at year-end 2024 vs DKK 14,998m at year-end
2023. The decrease was primarily driven by an
extraordinary share buyback of DKK 2bn
announced in December in connection with the
CMD and fully deducted from own funds at the
end of 2024. The decrease in own funds was
partly offset by a decrease in the solvency
capital requirement (SCR), which to a large
extend mitigated the net effect on the solvency
ratio.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 43
-
The solvency capital requirement (SCR) is
calculated in such a way that Tryg should be
able to honour its obligations in 199 out of 200
years. At year-end 2024, Tryg’s SCR was DKK
6,769m, down from DKK 7,633m at year-end
2023. The lower level is mainly explained by a
de-risking of the free investment portfolio.
Tryg’s solvency ratio continues to display low
sensitivity towards movements in the capital
markets, which was further reduced by the de-
risking of the free investment portfolio.
Fixed-income securities represent some 95% of
Tryg’s invested assets, therefore the highest
sensitivity is towards spread risk, where a
widening/tightening of 100 basis points would
impact the solvency ratio by approximately 15
percentage points (covered bonds). The low
sensitivity towards interest rate risk is due to an
active risk strategy of mitigating interest rate risk
throw the match investment portfolio and
interest rate swaps.
The relatively low sensitivities towards currency
risk are due to Tryg's FX strategy of reducing FX
risk on the balance sheet and thereby protecting
the solvency ratio and dividend capacity.
Shareholders’ remuneration
The Supervisory Board regularly assesses Tryg's
capital structure in light of future internal
earnings forecasts and balance sheet needs. The
projections include initiatives set out in the
company’s strategy for the coming years and
are also based on the most significant risks
identified by the company.
Capital adequacy is measured in relation to
Tryg’s strategic targets, including the Return On
Own Funds target (ROOF) and the dividend
policy.
Tryg will pay a Q4 dividend per share of DKK
1.95 on 28 January 2025 after having paid a
dividend for the first nine months of DKK 5.85
per share, bringing the total for the full year to
DKK 7.80 per share.
In December 2024, Tryg announced a share
buyback of DKK 2bn. As per end of 2024, DKK
324m out of the total DKK 2bn has been bought
back. TryghedsGruppen, Tryg’s largest
shareholder, is not participating in the buyback.
TryghedsGruppen owns 48.1%** of the shares,
with the ongoing buyback facilitating an
increased ownership level towards the stated
50% plus target.
Tryg continues to aim to offer a nominally stable
and increasing ordinary dividend on an annual
basis. The targeted payout ratio of 60-90%
(based on operating earnings) is secondary to
the aim of increasing the annual dividend.
Moody’s rating
Tryg has an “A1” (stable outlook) insurance
financial strength (IFSR) rating from Moody’s.
The rating agency highlights Tryg’s strong
position in the Nordic P&C market, robust
profitability, very good asset quality and
relatively low financial leverage. Moody’s also
assigned an “A3” rating to Tryg’s Tier 2 debt and
a “Baa3” rating to Tryg’s Tier 1 debt.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 44
7,633
6,769
Q4 2023
Q4 2024
14,998
13,239
Q4 2023
Q4 2024
197
191
195
202
196
Q4
2023
Q1
2024
Q2
2024
Q3
2024
Q4
2024
7.0
4.3
6.3
1.85
1.95
1.85
1.95
1.85
1.95
1.85
1.95
4.6
3.2
1.1
0.5
0.5
Ordinary
Extraordinary Share buyback (5bn)
Extraordinary Share buyback (1bn)
Extraordinary Share buyback (2bn)
2020
2021*
2022
2023
2024
Own funds
Solvency Capital Requirement
Shareholder remuneration
Solvency ratio development
(DKKm)
(DKKm)
(DKK per share)
(%)
*2021 DPS impacted by the higher number of shares at 653m (301m
end of 2020) following the DKK 37bn rights issue to fund the acquisition
of RSA Scandinavia.
** Calculated excluding Tryg's own shares
-
Investor information
Investor Relations (IR) is responsible for Tryg’s
communication with the capital markets. It is
important that investors, analysts and other
stakeholders can form a true and fair view of
company developments, including Tryg’s
financial results. For this reason, Tryg’s IR team
strives to be as open and transparent as
possible to ensure that stakeholders’
information requirements are met at the highest
possible level. IR is in charge of communication
with equity investors, fixed income investors
and rating agencies.
After the publication of quarterly and annual
reports, Tryg’s management and IR team
ordinarily travel extensively to meet with
shareholders and potential investors. Quarterly
analyst presentations are typically held in
Copenhagen and London. Tryg also attends
investor meetings and various financial
conferences at a local and global level. In 2024,
Tryg's Executive Board and Investor Relations
team met more than 300 investors from all over
the world . The majority of analyst and investor
meetings and conferences were held in-person
across Europe, the USA and Canada.
The Tryg share is currently covered by 18
analysts, who continuously update their
recommendations and earnings forecasts. Tryg
hosts an annual Analyst Day focusing on
selected aspects of the business, while a more
in-depth Capital Markets Day, where new
financial targets are unveiled, is hosted every
three years. Tryg hosted a Capital Markets Day
on 4 December 2024 in London where financial
targets for 2027 were disclosed. Tryg targets an
insurance service result of between DKK 8.0bn
and DKK 8.4bn, a combined ratio around 81, a
Return On Own Funds between 35% and 40%
and total cumulative shareholder repatriation of
between DKK 17 and 18bn divided between an
ordinary dividend range of DKK 15 to 16bn and
an extraordinary buyback of DKK 2bn starting
on 4 December 2024 and ending on 30 June
2025.
The Tryg share
The Tryg share is listed on the NASDAQ
Copenhagen exchange. Company
announcements and trading announcements
are published in English - and in Danish on an
optional basis. Interim reports and annual
reports are published in English only.
The Tryg share started the year at a price of DKK
146.9 and ended 2024 at DKK 151.5. Total
return (price and dividends) on the share was a
positive 7.67%. The Tryg share was under
pressure in the first part of the year as inflation
worries and a generally challenging
macroeconomic environment weighed
negatively. The share developed more positively
from the spring onwards due to favourable
inflation trends matched by the announced
profitability initiatives. Tryg is a relatively
defensive stock, as the company’s top-line
performance is not particularly sensitive to
macroeconomic developments, while
investment operations are relatively low risk and
the business is considered stable and produces
a strong cash flow. Equity market performance
during the year was positively helped by an
improved macroeconomic environment driven
by lower inflation and falling interest rates.
Geopolitical developments remain complex at
times, resulting in sudden market shocks.
Share capital and ownership
Tryg’s share capital totalled DKK 3,081,960,545
at 31 December 2024. There is one share class
(616,392,109 shares with a nominal value of
DKK 5), and all shares rank pari passu. The
largest shareholder, TryghedsGruppen smba,
owns 48,1%* of the shares and is the only
shareholder holding more than 5% of the share
capital. TryghedsGruppen supports peace of
mind and healthcare activities in the Nordic
region.
Quarterly dividends
Tryg started paying quarterly dividends in 2017.
The Tryg share has a distinct income profile due
to the business generally growing in line with
GDP, thus producing high margins that are
mostly returned to shareholders.
Insurance is one of the sectors offering the
highest dividend yield. From an investment
perspective, a quarterly dividend is a clear
reminder of the high profitability of Tryg’s
business and the company’s focus on returning
capital to shareholders. Tryg’s dividend policy is
based on the following premises:
• an aspiration to distribute a steadily increasing
dividend in nominal terms on a full-year basis.
• a general objective of creating long-term value
for the company’s shareholders.
• a competitive dividend policy compared to the
policies of Tryg's Nordic competitors.
• annual distribution of 60-90% of operating
earnings.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 45
TryghedsGruppen
In 2024, and for the ninth year
running, Tryg’s largest
shareholder,
TryghedsGruppen, paid out
DKK 1bn in member bonuses
to Tryg´s customers in
Denmark, corresponding to 6%
of the annual premiums paid in
2023. TryghedsGruppen owns
48.1%* of the shares in Tryg.
TrygFonden
TrygFonden is the leading and
best-known peace-of-mind
promoter in Denmark,
supporting around 800
activities that contribute to
creating peace of mind, such
as coastal lifeguards, cuddle
bears for children in hospital
and defibrillators. TrygFonden
contributes around DKK 680m
annually to projects that create
peace of mind in all parts of
Denmark.
* Calculated excluding Tryg's own shares
-
• the capital level must at all times reflect Tryg's
targets for Return On Own Funds and statutory
capital requirements.
• The capital level may be adjusted via
extraordinary dividends or share buybacks
Annual general meeting
Tryg’s annual general meeting will be held on 26
March 2025 at 15:00 CET. The notice will be
advertised in the daily press in February 2025
and will be sent to shareholders upon request.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 46
Financial calendar 2025*
24 Jan. 2025 Tryg shares are traded ex-dividend
28 Jan. 2025 Payment of Q4 dividend
26 Mar. 2025 Annual general meeting
11 Apr. 2025 Interim report Q1
14 Apr. 2025 Tryg shares are traded ex-dividend
16 Apr. 2025 Payment of Q1 dividend
11 July 2025 Interim report Q2 and H1
14 July 2025 Tryg shares are traded ex-dividend
16 July 2025 Payment of Q2 dividend
10 Oct. 2025 Interim report Q1-Q3
13 Oct. 2025 Tryg shares are traded ex-dividend
15 Oct. 2025 Payment of Q3 dividend
* Supervisory Board's approval required
Shareholder distribution
DKKm
2024
2023
2022
2021
2020
Dividend
4,844
4,734
4,118
2,802
2,115
Dividend per share (DKK)
7.8
7.4
6.29
4.28
7.0
Payout ratio
101 %
123 %
183 %
89 %
76 %
Extraordinary share buyback programme
2,000
1,000
5,000
Extraordinary dividend
Extraordinary dividend per share (DKK)
Free float - geographical distribution
34%
16%
19%
23%
Denmark
UK
USA
Others
*Free float is exclusive of TryghedsGruppen. Source:
CMi2i
.-
Supervisory Board
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 47
Charlotte Dietzer (1974)
Board member, Employee
representative
Manager advisor in Claims
Denmark, Tryg Forsikring. Has
solid knowledge and experience
of the insurance industry.
Environmental, Social and
Governance knowledge
Tina Snejbjerg (1962)
Board member, Employee
representative
Officer of Tryg’s Personnel
Department. Employed since 1987.
Has worked with management and
HR-related issues in the financial
sector, specifically the insurance
industry for many years.
Elias Bakk (1975)
Board member, Employee
representative
Product & Strategic Engagement
Manager in Tryg Forsikring. Solid
insurance knowledge from his years
in the industry, business know-how
and judgement.
Jukka Pertola (1960)
Chair
More than 25 years of top
management experience in the IT
and telecommunication industry
and electrical engineering, the latest
position being the CEO of Siemens
Denmark from 2002 to 2017.
Thomas Hofman-Bang (1964)
Board member
CEO in the Danish Industry
Foundation. Extensive global
experience in the B2B environment
and within the professional
services industry.
Jørn Rise Andersen (1956)
Board member
Union Chairman of the Danish
Customs and Tax Union. Many
years of experience from top
management positions in Danish
trade unions as well as board seats
in financial companies.
Mette Osvold (1978)
Board member, Employee
representative
Many years of experience from
the insurance industry within
business development, project
management, sales and as Chair
of Finansforbundet in Tryg.
Claus Wistoft (1959)
Board member
Top management experience
from operating his own business
for 38 years. Analytical approach
to problem-solving, business
know-how and business
development, understanding of
risk management.
Lena Darin (1961)
Board member, Employee
representative
Since 1989, Lena Darin has worked
as a claims handler in the insurance
industry. Solid knowledge and
experience of the insurance
industry.
Benedicte Bakke Agerup (1964)
Board member
CFO and senior management
positions in complex and large
organisations. Has worked
extensively with capital and risk
management and has in-depth
understanding of the financial
services sector.
Steffen Kragh (1964)
Deputy Chair
23 years’ experience heading an
international company with 6,000
employees within the consumer
space where technology, data,
subscription, and user experience
are key elements.
Anne Kaltoft (1961)
Board member
Managing Director of the Danish
Heart Foundation.
Many years’ experience from top
management positions within the
Danish healthcare system and as
Managing Director of the Danish
Heart Foundation.
Mengmeng Du (1980)
Board member
Thorough knowledge of the Tech
startup space as well as
international experience from
leading positions within Marketing
and Operations at Spotify and COO
at Acast.
Carl-Viggo Östlund (1955)
Board member
Has experience from insurance,
logistics, finance and banking
from leading positions in listed
and non-listed companies. Has
specialist knowledge of Swedish
market conditions.
-
Supervisory Board
Jukka Pertolaa)
Born in 1960. Joined the Supervisory Board in 2017.
Finnish citizen.
Career Professional board member. Former CEO of
Siemens Denmark
Education MSc in Electrical Engineering
Board seats, Chair Tryg A/S and Tryg Forsikring A/S,
Siemens Gamesa Renewable Energy A/S, COWI Holding
A/S, GN Store Nord A/S
Board member Asetek A/S
Committee memberships Remuneration Committee
(Chair), Nomination Committee (Chair) and IT Data
Committee in Tryg A/S, Nomination and Remuneration
Committee in COWI Holding A/S (Chair), Remuneration
Committee (Chair) Asetek A/S, Remuneration Committee,
Nomination Committee and Technology & Innovation
Committee (Chair) in GN Store Nord A/S
Experience More than 25 years of top management
experience in the IT and telecommunication industry and
electrical engineering. The latest position being the CEO
of Siemens Denmark from 2002 to 2017. Broad
international experience with global and regional business
responsibilities in both BtC and BtB
Competencies Solid technological background in
telecommunication, IT, digitalisation, business models,
strategy and business development. Understanding and
experience of risk management, M&A, ESG, business
know-how and judgement as well as insurance
Number of shares 13,000
Change in portfolio since the start of 2024 0
Steffen Kragha)
Born in 1964. Joined the Supervisory Board in 2023.
Danish citizen.
Career President & CEO of Egmont Fonden and Egmont
International Holding Group since 2001. Previously CEO
of Egmont subsidiaries, employment in insurance and
banking group Hafnia Holding A/S and stockbroker Erik
Møllers Efterfølgere A/S
Education MSc in Economics and MBA
Board seats, Chair Lundbeckfonden (including
Lundbeckfond Invest A/S). Various Egmont companies
Board seats, Deputy Chair Tryg A/S and Tryg
Forsikring A/S, Nordic Bioscience Holding A/S
Board member: Various Egmont companies
Committee memberships Remuneration Committee,
Nomination Committee, Audit and Risk Committee in
Tryg A/S, Lundbeckfonden (Investment committee)
Experience 23 years’ experience heading an international
company with 6,000 employees within the consumer
space where technology, data, subscription, and user
experience are key elements.
Former chairman of Nykredit, including roles in Audit,
Risk, Remuneration and Nomination Committees
Competencies Experience within strategy, economics,
finance and accounting, capital markets, securities and
funding, legal and regulatory matters of importance to
financial business, and corporate management including
business development, data, technology and ESG
Number of shares 6,500
Change in portfolio since the start of 2024 0
Benedicte Bakke Agerupa)
Born in 1964. Joined the Supervisory Board in 2024.
Norwegian citizen.
Career CEO of Laho AS, Procerta AS since 2018.
Previously CFO of Wilh. Wilhelmsen ASA and CFO of KLP
Insurance. Advisor and mentor for various startup
companies
Education Degree in Economics and Business
Administration (“siv.øk”) from the Norwegian School of
Economics (“NHH”), completed the Advanced
Management Program at Harvard Business School.
Board seats, Chair Puregas AS, Laer & Co AS
Board member Tryg A/S and Tryg Forsikring A/S, Altera
Infrastructure GP L.L.C., Unifor, Helseapps AS, Feminvest
AS, Søren Bulls Vei 25 Invest AS, Laboratoriebygg AS, KGJ
Partnership IX AS and Inven2 AS
Committee memberships Audit Committee and Risk
Committee in Tryg A/S, Chair Audit Committee of Altera
Infrastructure GP L.L.C.
Experience CFO and senior management positions in
complex and large organisations. Wealth and pension
management experience and as a broad business
executive. Previous directorships in several listed and
unlisted companies within insurance, maritime, energy
and renewables and finance
Competencies Has worked extensively with capital and
risk management and has in-depth understanding of the
financial services sector. Familiar with a balance-sheet
driven businesses and the regulatory implications that
financial institutions are subject to. Business know-how
includes strategy, restructuring, financial investments and
communication, business development and governance
Number of shares 0
Change in portfolio since the start of 2024 0
Carl-Viggo Östlunda)
Born in 1955. Joined the Supervisory Board in 2015.
Swedish citizen.
Career Former CEO of Swedish banks SBAB and Nordnet
and the insurance company SalusAnsvar. At present
entrepreneur, professional board member and investor
Education BSc in International Business and Finance &
Accounting, Stockholm School of Economics
Board seats, Chair Coeli Finans AB, Fondo Solutions AB,
Gladsheim Fastigheter AB, Juvinum Food & Beverage AB,
Nedvi Fastigheter AB and Ponture AB
Board member Tryg A/S and Tryg Forsikring A/S, Allert
Östlund AB, Delimport Ltd, Goobit Group AB including
Goobit AB and Goobit Blocktech AB, Havsgaard AB,
Ywonne Media Group AB, Wonderbox AB, Umbrella
Finans AB, Umbrella Investment Group AB, Director
Delimport Ltd, The Real Impact Company AB and RiQuest
Group AB
Committee memberships IT Data Committee (Chair) and
Remuneration Committee in Tryg A/S
Substitute member Irisande Care Group AB
Experience More than 30 years as CEO and Managing
Director in local and international environments in both
listed and privately held companies as well as banks.
Experience from the following industries: manufacturing,
logistics, insurance, finance and banking
Competencies Solid background from the insurance
industry, non-life as well as life. Business know-how and
judgement, banking and finance know-how,
understanding of digitalisation and risk management, ESG
Number of shares 7,788
Change in portfolio since the start of 2024 0
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 48
-
Supervisory Board
Thomas Hofman-Banga)
Born in 1964. Joined the Supervisory Board in 2022.
Danish citizen.
Career CEO of the Danish Industry Foundation
Education Certified Public Accountant
Board seats, Chair CBS Academic Housing, K Alternativ
Private Equity 2019 K/S, K Alternativ Private Equity 2020
K/S, K Alternativ Private Equity 2021 K/S, K Alternativ
Private Equity 2022 K/S, K Alternativ Private Equity 2023
K/S, K Alternativ Private Equity 2024 K/S, Half Double
Institute fmba, Tranes Fond
Board member Tryg A/S, Tryg Forsikring A/S, Foreningen
Roskildefestivalen, K Alternativ Private Equity 2025 K/S
Committee memberships Audit Committee (Chair) and
Risk Committee (Chair) in Tryg A/S
Experience Extensive global experience in the B2B
environment and within the professional services industry
in various roles as CEO, CFO, COB, non-executive director
for world class and market-leading companies, including
positions as CEO KPMG Denmark (5 years), President and
Group CEO NKT (8 years) and Group CFO NKT (6 years)
Competencies Key competencies include leadership,
development and execution of ambitious growth
strategies focused on value creation, performance
culture, transparency, integrity, strong team performance.
Extensively involved in development and dissemination of
knowledge in sustainability.
Number of shares 12,233
Change in portfolio since the start of 2024 0
Mengmeng Dua)
Born in 1980. Joined the Supervisory Board in 2022.
Swedish citizen.
Career Independent advisor to tech startups and
professional board member. Former leading positions at
Spotify and Acast
Education MSc in Economics and Business Administration
from Stockholm School of Economics, MSc in Computer
Science from Royal Institute of Technology (KTH)
Board member Tryg A/S and Tryg Forsikring A/S, Dometic
Group AB, Swappie Oy and Clas Ohlson AB
Committee memberships IT Data Committee in Tryg A/S,
People and Remuneration Committee in Swappie Oy
Experience 10+ years of top management experience and
as board member. Thorough knowledge of the Tech
startup space as well as international experience from
leading positions within Marketing and Operations at
Spotify and COO at Acast. Extensive board experience
from Retail, Life Insurance and Aviation. Member of
Sweden’s National Innovation Council
Competencies General top management experience from
the Tech industry. Extensive experience in the areas of IT
& digitalisation, transformation, marketing, organisation,
strategy, business development and sustainability
Number of shares 3,000
Change in portfolio since the start of 2024 0
Anne Kaltoftb)
Born in 1961. Joined the Supervisory Board in 2023.
Danish citizen.
Career Managing Director of the Danish Heart
Foundation.
Education MSc in Medicine, Medical Specialist in
cardiology, PhD in cardiology, Master of Public
Management. Pathfinder (a leadership development
programme).
Board member Tryg A/S, Tryg Forsikring A/S,
TryghedsGruppen smba
Committee memberships TrygFondens bevillingsudvalg
Experience Many years’ experience from top
management positions within the Danish healthcare
system, and as Managing Director of the Danish Heart
Foundation
Competencies Competencies within management,
strategy and business development, communication and
governance, optimisation of structure and processes,
financial management and social development within
health
Number of shares 0
Change in portfolio since the start of 2024 0
Claus Wistoftb)
Born in 1959. Joined the Supervisory Board in 2019.
Danish citizen.
Career Former 1st Deputy Mayor, Municipality of
Syddjurs, now city councillor, Municipality of Syddjurs and
member of the finance committee. Agriculturalist, wind
energy production, tenanted properties and project
development of building sites. CEO in C.W. Holding A/S
and former CEO in Demex Holding A/S
Education Agricultural education at Bygholm Agricultural
College and various business courses
Board member Tryg A/S and Tryg Forsikring A/S,
TryghedsGruppen smba, I/S Torntoft, jf. Seidelmann
Holding ApS, Houmarken A/S, Lyngfeldt A/S, Lyngfeldt
Maskinudlejning ApS, K/S Prinz Carl Anlage I,
Ejendomsfonden Maltfabrikken, DinBoli A/S and
Rosenfeldt Gods
Committee memberships Risk Committee in Tryg A/S
Experience Top management experience from operating
his own business for 38 years
Competencies Analytical approach to problem-solving,
solid business know-how and business development,
understanding of risk management and succession
Number of shares 8,716
Change in portfolio since the start of 2024 0
Jørn Rise Andersenb)
Born in 1956. Joined the Supervisory Board in 2022.
Danish citizen.
Career Union Chairman of Dansk Told og Skatteforbund
(the Danish Customs and Tax Union)
Education 3-year education in the Danish Customs
Authorities. Various accounting courses (business
diploma level), such as internal and external accountancy,
organisation and tax law
Board seats, Chair Dansk Told og Skatteforbunds
Fælleslegat, TryghedsGruppen SMBA
Board member Tryg A/S and Tryg Forsikring A/S,TJM
Forsikring, Lån og Spar Bank A/S, Interesseforeningen,
Fondet af 1844, Fagbevægelsens Hovedorganisation (the
Trade Union Central Organisation), CO10 (The Central
Organisation of 2010) and Forenede Gruppeliv
Committee memberships Remuneration Committee and
Nomination Committee in Tryg A/S, Chairman of the
Audit Committee in Lån og Spar Bank A/S, member of the
Risk Committee and Remuneration Committee in Lån og
Spar Bank A/S
Experience Many years of experience from top
management positions in Danish trade unions as well as
board seats in financial companies
Competencies Understanding of the financial sector,
finance and risk management, member loyalty and care,
investments and capital management, political flair
Number of shares 0
Change in portfolio since the start of 2024 0
Charlotte Dietzerb)
Born in 1974. Joined the Supervisory Board in 2020.
Danish citizen.
Employed since 1998
Career Manager advisor in Claims Denmark, Tryg
Forsikring
Education Insurance education at Forsikringsakademiet
(level 5) as well as various management and
communication training courses. Supervisory Board
programme at Forsikringsakademiet
Board member Tryg A/S and Tryg Forsikring A/S
Committee memberships IT Data Committee in Tryg A/S
Experience Division partner in Tryg A/S and examiner at
Forsikringsakademiet
Competencies Solid knowledge and experience of the
insurance industry. Excellent interpersonal and verbal
communication skills. Environmental, Social and
Governance knowledge
Number of shares 841
Change in portfolio since the start of 2024 +135
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 49
-
Supervisory Board
Tina Snejbjergb)
Born in 1962. Joined the Supervisory Board in 2010.
Danish citizen.
Employed since 1987
Career Officer of Tryg’s Personnel Department
Education Insurance training
Board member The Central Board of
Forsikringsforbundet, Tryg A/S and Tryg Forsikring A/S
Committee memberships Risk and Remuneration
Committees in Tryg A/S
Experience From 1987 to 2001, Tina Snejbjerg worked
with insurance sales to both private and commercial
customers as well as providing insurance advice to
customers. From 2001-2009, Tina Snejbjerg was the
deputy chair of the local branch of Forsikringsforbundet
and since 2009 she has been the chair, working with
operations, strategy, negotiating agreements and engaged
in recruiting and retaining members
Competencies Many years of experience mean Tina
Snejbjerg has acquired solid business know-how and
judgement, problem-solving abilities, and has worked
with management and HR-related issues in the financial
sector, specifically the insurance industry
Number of shares held 2,792
Change in portfolio since the start of 2024 +135
Elias Bakkb)
Born in 1975. Joined the Supervisory Board in 2017.
Danish citizen.
Employed since 2006
Career Product & Strategic Engagement Manager in Tryg
Forsikring
Education Norra Real Gymnasium, financial services &
insurance at Företagsekonomiska Institut Stockholm.
Programme at Forsikringsakademiet for new board
members
Board member Tryg A/S and Tryg Forsikring A/S
Committee memberships IT Data Committee in Tryg A/S
Experience Team Manager in Moderna Affinity for 12
years, Business and Product development in Moderna and
Trygg-Hansa Affinity for 6 years
Competencies Solid insurance knowledge from his years
in the industry, business know-how and judgement,
experience with organisation development, business
development, customer handling and interaction
Number of shares 4,135
Change in portfolio since the start of 2024 +135
Mette Osvoldb)
Born in 1978. Joined the Supervisory Board in 2022.
Norwegian citizen.
Employed since 2003
Career Chair of Finansforbundet in Tryg
Education BSc in Business and Finance from Oxford
Brookes University
Board member Tryg A/S and Tryg Forsikring A/S and
Finansforbundet (Central)
Experience Many years of experience from the insurance
industry within business development, project
management, sales and as chair of Finansforbundet in
Tryg
Competencies Solid insurance knowledge, experience
with strategy and business development, management,
human resources, organisation, negotiations, processes,
customer interaction, and culture
Number of shares held 853
Change in portfolio since the start of 2024 0
Lena Darinb)
Born in 1961. Joined the Supervisory Board in 2022.
Swedish citizen.
Employed since 1989
Career Claims handler
Education Cand.jur/LLM
Board seats, Chair Chair of Akademikerföreningen of
Trygg-Hansa since 2012
Board member Tryg A/S and Tryg Forsikring
Experience Since 1989, Lena Darin has worked as a
claims handler in the insurance industry. Former Board
Employee representative at Trygg-Hansa (2012-2015)
Competencies Solid knowledge and experience of the
insurance industry
Number of shares held 110
Change in portfolio the start of 2024 110
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 50
Committee meeting overview 2024
Name
Supervisory
Board
Audit
Committee
Risk
Committee
Nomination
Committee
Remuneration
Committee
IT Data
Committee
Jukka Pertola
12/12
3/3
4/4
4/4
Steffen Kragh
12/12
7/7
8/8
3/3
4/4
Benedicte Bakke Agerupa)
11/12
6/7
7/8
Carl-Viggo Östlund
11/12
4/4
4/4
Thomas Hofman-Bang
12/12
7/7
8/8
Mengmeng Du
11/12
4/4
Anne Kaltoft
11/12
Claus Wistoftb)
12/12
5/8
Jørn Rise Andersen
12/12
3/3
4/4
Charlotte Dietzer
12/12
4/4
Tina Snejbjerg
12/12
7/8
4/4
Elias Bakk
12/12
4/4
Mette Osvold
12/12
Lena Darin
12/12
a) Joined the Board 21 March 2024. Please note that 1 board meeting was held prior to 21 March 2024, and 11 were held
after 21 March 2024. As for the Audit Committee, 6 meetings were held after 21 March 2024. As for the Risk Committee, 7
meetings were held after 21 March 2024.
b) Joined the Risk Committee 21 March 2024. Please note that 1 Risk Committee meeting was held prior to 21 March 2024
and 7 Risk Committee meetings were held after 21 March 2024.
Members of the Supervisory Board are elected for a term of one year. Employee representatives are, however,
elected for a term of four years.
a) Independent member of the Supervisory Board, as per the definition in Recommendations on Corporate Governance
b) Dependent member of the Supervisory Board
-
Executive Board
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 51
Allan Kragh Thaysen (1977)
Group CFO
Key competencies include management,
accounting, tax, external and internal reporting,
Financial Planning & Analysis, reserving, risk
management and capital modelling. He is a
commercially oriented finance executive with a
strong strategic, technical and commercial focus
and understanding of the business.
Alexandra Bastkær Winther (1985)
Group CCO
Key competencies include experience in strategy
development & execution, M&A and large-scale
transformations. She has an innovative and
commercial mindset with a continuous focus on
identifying potential for further improvement.
Johan Kirstein Brammer (1976)
Group CEO
Has an international and strategic mindset developed
from his time as a management consultant as well as
a number of strategic roles across several industries.
He couples this with a strong commercial sense and
a desire to grow the business and improve the
customer experience through innovation and
digitalisation.
Mikael Kärrsten (1975)
Group CTO
Key competencies include management, case
underwriting, pricing, profitability, analytics, portfolio
management and product development. Having
spent two decades within insurance, he has the
ability to simplify complex issues and generate
results through proactive leadership.
Lars Bonde (1965)
Group COO
Comprehensive experience from the insurance
industry. Experienced in strategy, business
development, digitalisation, innovation, legal and
M&A. Management and leadership experience,
including international experience.
-
Executive Board
Johan Kirstein Brammer Group CEO
Born in 1976. Joined Tryg in 2016.
Joined the Executive Board in 2018.
Education: LL.M., University of Copenhagen, MBA
Australian Graduate School of Management, and
Graduate Diploma (HD-Finance) Copenhagen Business
School
Experience: Johan Kirstein Brammer has extensive top
management experience from a range of industries. Prior
to joining Tryg’s Executive Board, Johan headed Tryg’s
Private Lines business in Denmark. Before joining Tryg,
Johan held numerous executive roles with TDC before
joining the company’s Board as Head of Consumer and
Group Chief Marketing Officer. Prior to this, Johan was
with McKinsey & Co as a strategy consultant based in
Australia and the UK. Before joining McKinsey & Co,
Johan was an attorney with Kromann Reumert in
Denmark. This range of experience has provided Johan
with a broad, diverse toolbox, having held strategic and
P&L responsibilities across multiple industries in an
international setting.
Competencies: Johan Kirstein Brammer has an
international and strategic mindset developed from his
time as a management consultant as well as a number of
strategic roles across several industries. He couples this
with a strong commercial sense and a desire to grow the
business and improve the customer experience through
innovation and digitalisation. Johan has extensive
experience within transformative M&A across borders
and sectors
Number of shares held: 91,131
Number of shares held at the start of 2024: 74,854
Change in portfolio: +16,277
Allan Kragh Thaysen Group CFO
Born in 1977. Joined Tryg in 2018.
Joined the Executive Board in 2023.
Education: Graduate Diploma (HD/R) in Accounting and
an MSc in Business Economics and Auditing (CMA) from
Copenhagen Business School
Experience: Since May 2018, Allan Kragh Thaysen has
been SVP of Group Finance in Tryg. Before then he held
several positions in the Norwegian company Gjensidige
from 2005 to 2018, where he became Financial Director
for the Danish and Swedish operation of the business
from 2010 to 2018. He started his career as an
accountant at Deloitte from 1998 to 2005.
Allan Kragh Thaysen is deeply rooted in the insurance
sector and has extensive experience from finance
management within non-life insurance. He has for many
years been in management positions within the core
finance areas: accounting, tax, external and internal
reporting, financial planning and analysis, reserving, risk
management and capital modelling.
Throughout his career he has been part of several M&A
transactions and integration cases, and he played a
pivotal role for Tryg in the acquisition of RSA’s
Scandinavian businesses, Trygg-Hansa and Codan
Norway.
Competencies: Allan Kragh Thaysen’s key competencies
include management, accounting, tax, external and
internal reporting, FP&A, reserving, risk management and
capital modelling. Allan Kragh Thaysen is a commercially
oriented finance executive with a strong strategic,
technical and commercial focus and understanding of the
business.
Number of shares held: 8,000
Number of shares held at the start of 2024: 504
Change in portfolio: +7,496
Alexandra Bastkær Winther Group
CCO
Born in 1985. Joined Tryg in 2020.
Joined the Executive Board in 2023.
Education: Mphil in Finance, University of Cambridge and
MSc in Economics, University of Copenhagen
Board seats: Forsikring og Pension
Experience: Alexandra Bastkær Winther is an
accomplished executive leader with experience spanning
across multiple industries and geographies. At Tryg,
Alexandra initially led the transformative acquisition of
Trygg-Hansa and Codan NO. Subsequently, she headed
up Alka Forsikring, acting as ‘CEO’. Here, she was a board
member of Alka Liv II and Alka Fordele. Prior to Tryg,
Alexandra was with Boston Consulting Group (BCG) for
almost a decade working as a management consultant
across more than 20 countries and numerous industries
before she specialised in Financial Institutions, M&A and
Transformation. Prior to BCG, Alexandra was with J.P.
Morgan Chase & Co. in London, where she worked in
capital markets, focusing on equity derivates for
institutional investors.
Competencies: Alexandra Bastkær Winther comes with
deep experience in strategy development & execution,
M&A and large-scale transformations. She has an
innovative and commercial mindset with a continuous
focus on identifying potential for further improvement.
This is supported by a strong implementation capacity,
focus on leadership & change management, ultimately
driving better outcomes for customers and employees.
Number of shares held: 7,111
Number of shares held at the start of 2024: 235
Change in portfolio: +6,876
Lars Bonde Group COO
Born in 1965. Joined Tryg in 1998.
Joined the Executive Board in 2006.
Education: Insurance training, LL.M., University of
Copenhagen
Board seats, Chair: P/F Betri Trygging,
Forsikringsakademiet and F&P Arbejdsgiver
Experience: With more than 35 years' experience in the
insurance industry, of which more than 15 years have
been as a top executive, Lars Bonde has extensive
industry knowledge. Throughout his tenure, he has held
consecutive positions as leader and business-responsible
for claims and all Tryg's business units, some of which
were alongside his role as a member of the Executive
Board. Lars Bonde has over 10 years of international
experience from board positions.
Competencies: Comprehensive experience from the
insurance industry. Experienced in strategy, business
development, digitalisation, innovation, legal and M&A.
Management and leadership experience, including
international experience. Extensive board experience
across several countries.
Number of shares held: 159,616
Number of shares held at the start of 2024: 142,707
Change in portfolio: +16,909
Mikael Kärrsten Group CTO
Born in 1975. Joined Tryg in 2022.
Joined the Executive Board in 2023.
Education: Master in Business Economics
Board seats, Chair: Tryg Livsforsikring A/S
Board member: Trafikförsäkringsföreningen
Experience: Mikael Kärrsten has extensive experience
from insurance management, particularly within the
technical field, including portfolio management, case
underwriting, pricing and product management. Over the
past 15+ years he has held management positions within
underwriting, both in commercial and personal lines.
Before joining Tryg as part of the acquisition of Trygg-
Hansa and Codan Norway in April 2022, he held positions
as Underwriting Director for Trygg-Hansa (2016-2018)
and Chief UW Officer for RSA Scandinavia (2018-2022).
In RSA Scandinavia, Mikael was one of the key architects
of the insurance technical excellence programme that
gained RSA Scandinavia in general and Trygg-Hansa in
particular a competitive edge through in-depth portfolio
understanding and proactive action management. This
experience was brought into Tryg when Mikael joined the
company as PPU (price, product and underwriting)
Director, and in 2023 Mikael joined the Executive Board of
Tryg.
Competencies: Mikael Kärrsten’s key competencies
include management, case underwriting, pricing,
profitability, analytics, portfolio management and product
development.
Mikael Kärrsten is a commercially oriented, technical
insurance executive with a strong strategic focus as well
as focus on setting and achieving ambitious goals. Having
spent two decades within insurance, he has an
understanding of most insurance activities and has the
ability to connect dots and simplify complex issues and
generate results through proactive leadership.
Number of shares held: 6,332
Number of shares held at the start of 2024: 2,880
Change in portfolio: +3,452
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 52
-
Sustainability statement
• General disclosures
◦Basis for preparation
◦Sustainability governance
◦Strategy, business model and value chain
◦Material impacts, risks and opportunities
• Environment
◦Climate change
◦Resource use and circular economy
◦EU Taxonomy
• Social
◦Own workforce
◦Consumers and end-users
• Governance
◦Business conduct
◦Responsible investment practices
• Independent auditor's limited assurance report on Sustainability statement
• Data points deriving from other EU legislation
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 53
-
Sustainability anchored in the core business
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 54
2024 performance
2027 ESG targets
Future-fit products
Products supporting customers in adapting to climate change.
~60% of product categories in scope for climate
adaptation1 to be aligned with the EU Taxonomy
Sustainable insurance
Focus on repairs and use of recycled
material has helped reduce
27,825 tCO2e emissions
Green workplace
Emissions from own operations
and employee transportation
70% reduction
Diverse workplace
Women across all levels
of management
43%
Climate action
Decarbonising the value chain and focus on repairs
and reuse in claims handling
6% CO2e reduction per average claim2
Empowering people
Create gender proportionality at each management
level of minimum
40/60 gender diversity
Tryg delivers on its 2024 strategy targets with good traction across its three 2024 strategy pillars.
Building on this strong foundation, new targets are defined to guide efforts towards 2027.
1 Equivalent to 30 product categories
2 Relative to base year 2024.
-
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 55
Own workforce
page 103
2024 targets
2024
• 33% women at other
management level (2026
target)
• 33% women at top
management level
• 41% women at director level
• 41% women in management
positions
29%
32%
36%
43%
Green workplace
Climate change
page 77
2024 targets
2024
• 35% CO2e reduction
• 58% CO2e reduction from
energy consumption
• 12% CO2e reduction from
waste
• 23% CO2e reduction from air
travel
• 23% CO2e reduction from car
fleet
70%2
92%3
20%
49%
28%
2030
2024
• 55% CO2e reduction
70%2
Follow-up on 2024 Sustainability strategy
The table outlines Tryg's Sustainability targets and 2024 performance.
Sustainable insurance
Resource use and circular
economy
page 87
2024 targets
2024
• 80% increase in sustainable
spend
• 20,000–25,000 tonnes CO2e
of avoided emissions from
more sustainable claims
handling
47%
27,825
Responsible investment1
2030 targets
2024
• 50% CO2e intensity
reduction from equity
portfolio
• Exclusion of fossil fuel
production companies
with no strategy for
green transition
Responsible company
Supplier management
page 124
2024 targets
2024
Sustainability screening of
suppliers
• Up to 90% of contract
suppliers
• Up to 100% of contract
suppliers within claims
High supplier performance for
screened suppliers
• Up to 50% of contract
suppliers
• 70% of contract suppliers
within claims
89%
97%
44%
46%
Targets and results
Strategic focus area
1 Status on targets related to responsible investment not reported, due to changes to investment strategy, see page 31
2 Market-based
3 Market-based and scope 2 only
-
General disclosures
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 56
ESRS 2
• Basis for preparation
• Governance
• Strategy
• Impacts, risks and opportunities
-
Basis for preparation
General basis for preparation
This statement represents Tryg’s statutory
Sustainability Statement in accordance with the
EU's Corporate Sustainability Reporting
Directive (CSRD) and the associated European
Sustainability Reporting Standards1 (ESRS).
The statement also covers Tryg's statutory
reporting on the underrepresented gender as
expressed in Section 143 of the Danish
Executive Order on Financial Reports for
Insurance Companies and Lateral Pension
Funds.
Tryg also reports according to the key indicators
of the climate partnership of the Danish
Financial Sector as well as the Norwegian
Transparency Act.
Finally, the report comprises information for
communicating on progress to the UN Global
Compact and thus underlines Tryg's ongoing
commitment to the Ten Principles on human
and labour rights, environment and anti-
corruption.
This is the first time Tryg is reporting in
accordance with CSRD and ESRS and best
efforts have been put into translating the
quantitative and qualitative disclosure
requirements into relevant descriptions and
data points. As a guiding tool, Tryg has relied on
the implementation guides made available by
the European Financial Reporting Advisory
Group (EFRAG), in particular the
'Implementation guide 3': List of ESRS Data
Points (IG-3)2. The quantitative ESRS data points
in the report are marked with the ESRS ID
number in accordance with IG-3.
Only ESRS data points identified as material
under the double materiality assessment and
mandatory under the ESRS are reported.
Voluntary data points according to the ESRS are
not included in the report. Furthermore, Tryg
follows ESRS recommendations regarding one-
or three-year phase-in periods. These data
points will be reported in 2025 and 2027,
respectively.
All data points in the Sustainability Statement
are subject to limited assurance. The
quantitative data points included in the scope of
limited assurance in 2023 are specifically
marked (n) in the ESG tables.
The index on page 71-72 shows material
disclosures and their location throughout the
report. Where relevant, Tryg has used the
principle of 'Incorporation by reference' to
ensure integration throughout the
Management's review.
References to other EU legislations as defined
by ESRS 2 Appendix B, is available on page 129 -
131.
Going forward, Tryg will continue to assess and
develop its disclosures in line with the disclosure
requirements of the ESRS.
Scope of reporting
The organisational scope for the Sustainability
Statement includes all operations for Tryg
Group and its subsidiaries, and it is prepared in
alignment with Tryg’s consolidated financial
statement following the fiscal year 1 January
2024 to 31 December 2024. See Group chart
on page 218.
Activities under Tryg’s credit and surety
business, Tryg Trade, are not included in the
quantitative or qualitative data points. This is
primarily due to its size, constituting less than
1% of the total profit/loss.
Any deviations to this, are described in the
accounting principles under the relevant
indicators.
The Sustainability Statement covers Tryg’s up-
and downstream value chain. See further details
in the sections: ‘Business model and value chain’
and ‘Material impacts, risks and opportunities’
on pages 64 and 68.
Disclosures in relation to specific
circumstances
Time horizons
The short-term time horizon for data in the
Sustainability Statement follows the financial
statement. Medium- (up to five years) and long-
term (more than five years) horizons are aligned
with the definitions under the double materiality
assessment.
Sources of estimation and outcome uncertainty
Tryg aims to disclose data as correctly and
accurately as possible by using primary
measurement data and by standardising the
calculation of emissions using emission factors
from Tryg’s carbon accounting system.
Tryg relies on the following key methods of
measurement aligned with the
recommendations of the GHG protocol: 1)
Spend-based, 2) Activity-based and 3) Hybrid.
Tryg does not use any indirect data sources, e.g.
industry or sector averages, in the value chain.
Tryg uses estimates in its reporting on selected
data points due to its fast closing and
dependency on data from suppliers. A defined
process for assessing and, if necessary,
adjusting estimates is in place. For further
information on estimates, please refer to the
specific disclosure requirement regarding the
GHG calculation.
Any potential sources of measurement
uncertainty, assumptions or estimates are
described in the accounting principles of the
respective disclosure point.
Changes in reporting or reporting errors
Materiality thresholds are defined for when to
restate quantitative information together with
procedures for how a restatement should be
performed, which also covers cases of reporting
errors in prior periods. If data has been restated,
this will be clearly stated.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 57
1 Commission delegated regulation (EU) of 2023/2772 of 31 July 2023
2 EFRAG IG 3 List of ESRS Data Points, May 2024.
-
Sustainability governance
To ensure proper oversight of sustainability
matters, Tryg has a dedicated Sustainability &
ESG Board. Additionally, Sustainability & ESG is
discussed at management level in for example
the Compliance Board and the Risk Committee.
At Supervisory Board level, oversight is
exercised through the board committees, for
which further details are disclosed on the
following page. For general information
regarding Supervisory Board oversight and
sustainability-related skills, see Corporate
Governance section pages 36 - 39.
Sustainability & ESG Board
Tryg’s Sustainability & ESG Board drives Tryg’s
strategic direction on the sustainability and ESG
agenda. The board is chaired by Tryg's COO and
composed of Senior Executives from central
functions such as HR, Compliance, Risk
management and Procurement.
At quarterly meetings, the board discusses
Tryg’s direction, specific initiatives and
recommendations related to material impacts,
risks and opportunities.
In 2024, the focus of the Sustainability & ESG
Board has centred around the preparation of the
2027 strategy and the related ESG focus areas
and targets as well as CSRD reporting. This
covers, among other themes, Tryg’s climate
commitment, products aligned with the criteria
of the EU Taxonomy, double materiality
assessment and the annual evaluation of the
environmental management system ISO 14001.
The Sustainability & ESG Board receives a
quarterly update on the strategic ESG targets,
including diversity, CO2e emission reductions
from own activities and from the claims
handling process.
The Sustainability & ESG Board approves
projects prior to final approval by the Executive
Board and/or the Supervisory Board.
In light of Tryg's 2027 strategy, where the ESG
targets are more closely connected to Tryg's
business, the composition of the board will be
updated as of 2025, when Senior Executives
from Tryg's three business areas, Private,
Commercial and Claims, will step on to the
board. This will help ensure that ESG is
anchored closer to the business.
Compliance Board
Tryg’s Compliance Board monitors compliance
risks and the implementation of new cross-
cutting legislation and regulation. The purpose
of the board is to ensure strategic and tactical
prioritisation, and alignment and approval of
material compliance decisions and activities.
The board is chaired by the CFO and composed
of the COO, Directors from each business areas,
IT, Legal, and Risk management, while Cyber
security and Tryg’s CCO attend as observers.
Representatives from business areas and staff
functions attend based on relevance and need.
Risk Committee management level
At management level, a Risk Committee chaired
by the CFO ensures an efficient risk
management system across Tryg and
consolidates the total risk profile across the
defined risk categories. This includes the overall
responsibility for business conduct matters.
The Risk Committee is composed of the
Executive Board, Senior Vice Presidents from
Investor Relations, Financial Performance and
Group legal, as well as the head of Risk
management and Compliance. The Risk
Committee reviews risk appetite across Tryg on
a quarterly basis, including for its specific ESG
targets.
As of 2025, ESG is formally included in the
annual wheel of the Risk Committee to further
strengthen the integration of ESG across
different processes as well as ensuring proper
risk management, monitoring and follow-up on
progress.
Commercial Steering Group and Product &
Distribution Board
Tryg’s Commercial Steering Group, chaired by
the CCO, ensures strategic and tactical
discussions between the commercial directors
about products, distribution and customer
experiences.
Under the Commercial Steering Group, the
Product & Distribution Board ensures that Tryg
coordinates product development and
facilitates sharing of best practices across
business areas and countries. This includes
knowledge sharing and inspiration around
adapting products to the EU Taxonomy. The
board is chaired by Group Innovation and
Prevention, and members are appointed by the
Commercial Steering Group. The board meets 4
times a year.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 58
-
ESG integration across Supervisory Board committees
ESG is an integrated part of the work performed by the Supervisory Board committees, specifically the Audit, Risk, Nomination and Remuneration
committees. Areas of responsibility and issues addressed are listed below.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 59
Body of governance
Area of responsibility incl. in terms of reference
Material issues addressed in 2024
Audit committee
•
CSRD-compliant reporting
•
Annual review and approval of double materiality assessment
•
Oversee the result of the limited assurance process of non-
financial data points, including observations and conclusions
•
Oversee result of internal controls in relation to reporting.
•
Review and approval of double materiality assessment process
and result for 2025 reporting
•
Review of result of half-yearly and year-end limited assurance
process on non-financial data
•
Review and approval of 2024 annual report.
Risk committee
•
Monitor risk management system, related processes and
systems
•
Review the Group risk profile and emerging risk profile
•
Review the Group risk appetite
•
Review operational incidents
•
Assess and monitor the efficiency of the risk management
environment.
•
Quarterly review of risk management report including
development in risk profile, risk identification, significant
operational events
•
Yearly assessment of own risk and solvency (ORSA)
•
Emerging risk profile.
Nomination committee
•
Competency and diversity policy to ensure that Supervisory
Board members have adequate collective knowledge,
professional competencies and experience to understand the
company’s activities and associated risks, including ESG.
•
Self-evaluation of the competencies required and available in
the governing bodies.
Remuneration committee
•
Prepare recommendations to the Supervisory Board on
elements to include in remuneration of Supervisory Board and
Executive Board.
•
Prepare variable salary programme for the Executive Board.
•
Annual review and approval of variable salary programme,
ensuring that the targets defined contribute to Tryg’s business
strategy, long-term interests and sustainability.
-
Remuneration
Integration of sustainability-related
performance into incentive schemes
Tryg has incentive programmes for the
Executive Board, risk takers and other leaders
based on their organisational level. The purpose
of the incentive schemes is first and foremost to
ensure alignment of financial interests between
participants and Tryg’s shareholders and to
create a link between remuneration and
performance. The incentive scheme is based on
weighted financial and non-financial targets
defined at the beginning of the year.
Specifically for the Executive Board,
Sustainability & ESG targets constituted 15% of
the variable salary in 2024. The index is
composed of targets for employee engagement,
avoided CO2e emissions from claims handling,
CO2e emission reductions from Tryg’s own
operations, top-line growth from prevention
initiatives, and diversity and inclusion in
management and management teams. The
weight of the respective ESG targets is not
disclosed. Performance is based on specific
milestones and thresholds within each of the
categories and assessed on a linear scale from
1 to 7. The specific targets are approved
annually by the Supervisory Board.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 60
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Due diligence
Core elements of due diligence
Sections in the Sustainability Statement
Embedding due diligence in governance,
strategy and business model
• Strategy and business model, p. 64
• Sustainability governance, p. 58
Engaging with affected stakeholders in all
key steps of the due diligence
• Stakeholder engagement, p. 67
• Employee engagement survey, p. 106 - 107
• Customer engagement, p. 116
• Supplier screenings, p. 124 - 125
Identifying and assessing adverse impacts
• Employee engagement survey and communication
committees, p. 106 - 107
• Supplier screenings, p. 124 - 125
• Corruption and bribery risk assessment, p. 122
• ESG customer screenings, p. 115
Tracking the effectiveness of these efforts
and communicating
• Employee engagement survey process, p. 106 - 107
• Supplier screenings, p. 124 - 125
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 61
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Norwegian Transparency Act
Tryg Norway is subject to the Norwegian
Transparency Act. This section constitutes the
reporting according to its criteria.
For general information regarding Tryg's
business and value chain see page 64.
Human and labour rights due diligence
Tryg’s commitment to responsible business
conduct extends beyond compliance and risk
mitigation. The company has high ambitions to
foster a diverse culture and push for more
sustainable solutions both internally for
employees, through collaboration with
suppliers, and through engagement with
customers.
As expressed in Tryg’s Human and Labour
Rights policy, Tryg is fully committed to
respecting fundamental human rights and
decent working conditions as expressed in, for
example, the International Bill of Human Rights
and the International Labour Organisation's
(ILO) core conventions on fundamental rights
and principles in working life.
Tryg recognises that it can potentially cause,
contribute or be linked to adverse social and
environmental impacts across its operations,
through its products and services, its customers
and business partners, and across its supply
chain.
Tryg therefore works with due diligence
principles in line with the UN Guiding Principles
and the OECD Guidelines of continuously
identifying, assessing and mitigating actual or
potential adverse impacts.
The assessment considers severity, likelihood
and level of complicity of potential adverse
impacts.
Using a desk-based human rights risk
assessment across its own employees,
customers and suppliers, Tryg identified and
highlighted areas of potentially heightened risk.
The purpose of the assessment was to map
potential impacts and ensure that existing
processes, governance and actions for
mitigation are in place.
Own employees
For its own employees, the general risk of being
complicit or contributing to adverse impacts on
human and labour rights is considered low. This
is due to the nature of the work – primarily
office-related, high-skilled work – and the
location of its operations, i.e. Denmark, Norway
and Sweden.
Findings from the impact risk assessment
correspond to material negative impacts
identified under the ESRS standard ‘S1 Own
Workforce’, namely related to working hours /
work-life balance and gender pay inequalities.
Among the measures for tracking developments
and gaining insight into current state is the
employee engagement survey, which is
supported by a mandatory pre-defined process
for team discussions and follow-up.
Additionally, close collaboration and frequent
meetings with unions and union
representatives, both at local and regional level,
ensure that relevant employee issues can be
raised and managed.
Read more in the section "Own Workforce" on
page 103.
Suppliers
In the supply chain, Tryg has established
measures and governance to continuously
monitor and assess potential impacts and poor
performance across social and environmental
issues. Through questionnaires covering ESG
topics and a supplier risk assessment, Tryg can
identify suppliers of concern where further
action might be needed. One questionnaire
specifically asks suppliers about their respective
due diligence measures across ESG themes.
The outcome of the screenings shows a
generally low risk of adverse impacts at
suppliers. Nevertheless, realising that Tryg’s
suppliers include industries that are potentially
more exposed to labour rights issues, Tryg
continuously works to improve its processes
and to more precisely determine, address and
mitigate the specific risks that might occur at
supplier level. Specifically for large IT suppliers,
an increased risk of human and labour rights
and business integrity impacts are identified
based on desk research. Relevant mitigation
measures are currently being investigated to
ensure effective and relevant actions going
forward.
Generally, the highest risk frequency within
Tryg’s supply chain is related to environmental
protection. However, this is largely due to a lack
of information from these suppliers on the
subject. A key initiative on this matter in the
future will be to clarify the specific needs for
information from suppliers and to support them
in materialising this within their business.
Read more about how Tryg works with
responsible supply chain management on page
124.
Customers
Tryg can be linked to adverse social and
environmental impacts through the commercial
customers it insures. Tryg is therefore actively
communicating its expectations to commercial
customers to follow the ten principles of the UN
Global Compact. This is part of the insurance
conditions.
Following a risk-based approach, the largest
commercial customers are also screened
according to ESG parameters. The screening
considers the customers’ respective
performance and governance around ESG as
well as any potential adverse media cases,
current investigations, verdicts or injunctions.
The screenings provide insight into the actual
performance and thus actual impacts that Tryg
might be linked to. Based on the result of the
2024 screenings, no further actions were
needed.
Read more about Tryg’s work with consumers
and end-users on page 114.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 62
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Risk management and internal controls
Scope, main features and components
Risk assessments are integrated into the data
collection process to prevent misleading
information, statements, figures or conclusions
based on inaccurate or incomplete data.
The framework for Tryg’s risk assessment in
sustainability reporting follows the IAASB
Explanatory Memorandum. The exposure draft
ED-5000 has been used as a reference point for
this reporting process as the final version ISSA
5000 was not finally approved before December
2024.
Risk assessments
The risk assessment methodology for the
Sustainability Statement identifies where
material misstatements are likely to arise in the
data collection process. A risk mapping and
assessment has been performed for all main
data points. Tryg’s Audit Committee is
responsible for monitoring and assessing the
risk management systems established for the
financial and ESG reporting process.
Main risks identified, mitigation strategies and
related controls
Risks are identified as incidents that can have an
impact on the audit objectives: Completeness,
accuracy and consistency from ESRS 1-2
‘Qualitative characteristics of information’. Risks
are identified in the data collection process for
the specific data points and described in relation
to the audit objectives together with relevant
mitigation actions.
Mitigation actions and quality controls are
described for each process step for each
identified risk. The controls are integrated into
the specific data collection process for each
group or across similar groups of disclosures.
Tryg aims to base its control environment on
robust preventive controls – as opposed to
corrective or detective controls – in order to be
able to identify risks as early as possible in the
data collection process. Both manual and
automated controls are in place and, going
forward, Tryg will work to automate as many
controls as possible.
Periodic reporting of findings from risk
assessment and internal controls
The risk assessment and mitigating control
activities are performed in connection with
periodical internal or external reporting. Audits
are performed by both internal and external
auditors, which is in line with the process of the
financial audit.
The results of the limited assurance process,
including potential observations or identified
risks, are reported to the Audit Committee in
connection with half-year and year-end audits.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 63
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Strategy, business model and value chain
Business model and value chain
Tryg is one of the largest non-life insurers in
Scandinavia, with 7,587 employees1, around 6
million customers, an insurance revenue of DKK
38,596m, and approximately 2.2 million claims
annually. Insurance is provided for private and
commercial customer segments across
Denmark, Sweden and Norway.
Private customers constitute approximately
68% of premiums. Products include motor,
content, house, cyber, accident, travel, pet and
health insurance.
Commercial and corporate customers
constitute approximately 32% of premiums, and
the product range includes motor, property,
liability, workers’ compensation, travel and
health, transport and group life insurance.
Tryg aims to be a proactive peace-of-mind
creator for its customers by protecting
customers against unforeseen events. Through
its purpose, 'As the world changes, we make it
easier to be tryg2', Tryg underlines the
importance of providing high quality advisory on
relevant and appropriate coverage, properly
identifying and assessing insurance risks and
relevant prevention measures.
Close to the core of its business is a focus on
preventing claims from arising in the first place.
In addition to the comfort this provides
customers, it can reduce the number and size of
claims, which has an economic, environmental
and social upside.
Tryg also engages in partnerships with
organisations and companies across various
sectors to offer attractive packages and prices
to their respective members and to Tryg's own
customers.
The primary resource required to deliver
insurance products to customers is intellectual
property: Skilled employees, IT systems,
designed processes, appropriate non-life
insurance product ranges, risk assessments and
pricing framework as well as appropriate capital
allocation and an investment framework.
To match insurance liabilities, the majority of
Tryg’s investments are placed in a match
portfolio primarily consisting of Nordic covered
bonds. Tryg Invest manages Tryg’s total
investment portfolio with the purpose of
ensuring long-term attractive returns.
One of Tryg's main deliveries to customers is
claims handling. Tryg’s network of suppliers
handles claims on behalf of Tryg, which works
to ensure stable and close collaboration with
suppliers so they operate and deliver in
accordance with Tryg’s expectations.
Supplier relations management, procurement
and assessors make sure that terms, conditions,
quality and standards are complied with. In
addition to handling claims, Tryg has an
ambition to push claims suppliers towards new
and more resource-efficient ways of working.
Handling claims requires significant amounts of
resources and is an area where Tryg can make a
significant impact by collaborating with and
pushing its suppliers toward more circular and
resource-efficient approaches.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 64
1 Headcount
2 'tryg' means to feel safe, protected and cared for in Danish.
-
Three strategic sustainability themes
to bolster future business resilience and
enhance competitiveness
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 65
Future-fit products
•
30 product categories aligned with the EU
Taxonomy, corresponding to approximately
60% of all product categories1 in scope for
climate adaptation.
Climate action
•
42% CO2e emissions reduction in Scope 1
•
100% annual sourcing of renewable electricity
in Scope 2
•
40% of suppliers (by spend) aligned with
SBTi targets in Scope 3
•
6% CO2e reduction per average claim
1 A product category is defined as one or more insurance products insuring the same object, e.g. a house. Tryg counts the number of product categories per country, meaning that, for instance, the product
category “House/Villa” is counted three times because all three countries offer this insurance category.
Empowering people
•
Minimum 40% gender representation across
each management level
-
Sustainability-targets
Sustainability & ESG is an integral part of Tryg’s
2027 strategy being an enabler within all three
pillars of Customer & Commercial Excellence,
Scale & Simplicity, and Technical Excellence.
Building on Tryg’s purpose ‘As the world changes,
we make it easier to by tryg1’, insurance is about
providing safety and comfort to customers. Tryg
is committed to creating peace of mind not just
for today, but for the next 10, 20 and 30 years.
Climate change is evidently a significant source
of insecurity in people’s lives. In Scandinavia, its
effects are mainly seen through increasing
water levels – from heavy rainfall, river and
stream flooding, and rising groundwater. Tryg is
dedicated to helping its customers adapt to
climate change and prevent claims in a world
facing more extreme weather events. At the
same time, Tryg aims to mitigate these impacts
as much as possible by reducing its own CO2e
emissions.
Future-fit products
Tryg is committed to helping customers prevent
climate-related claims through proactive
support and effective solutions. This
commitment aligns with Tryg’s long-term
strategic focus on preventing claims before they
occur. By communicating and motivating
customers to implement preventive measures,
Tryg helps them safeguard their homes and
possessions from extreme weather.
By leveraging extensive data and forecasting,
Tryg contributes to understanding, pricing and
anticipating the impacts of climate change and
related weather events, even in the long term.
If claims do occur, Tryg supports its millions of
customers in Scandinavia so they can move
forward as smoothly and safely as possible.
For several years Tryg has been working to
break from the 'use-and-throw-away' culture
and instead promote a circular approach,
focusing on repair and reuse. Large amounts of
materials, such as wood, metal, plastic and
glass, are required when customers need to
rebuild their house, repair a van, or get a new
mobile phone.
Tryg is now specifically targeting the reduction
of new materials used in the claims handling
process.
Two specific 2027 targets are defined with the
aim of helping customers adapt to climate
change and reduce the impact from resolving
claims:
•
30 product categories2 aligned with the EU
Taxonomy, corresponding to approximately
60% of all product categories in scope for
climate adaptation.
•
Reducing the consumption of new materials
in claims handling by 10% per average
claim.
Climate action
Addressing and mitigating the impact of climate
change is one of the most significant challenges
right now. Tryg is dedicated to contributing to
this effort and has defined specific climate
targets.
The targets are:
•
42% CO2e emissions reduction in Scope 1
by 2030
•
100% annual sourcing of renewable
electricity in Scope 2 in 2030
•
40% of suppliers (by spend) aligned with
SBTi targets in Scope 3 by 2029
A large part of Tryg’s direct and indirect CO2e
emissions stems from its approx. 2.2 million
annual claims. By 2027, Tryg will intensify its
current initiatives by continuing to repair floors,
recycle car parts and refurbish mobile phones
— all while maintaining the highest standards of
safety and quality.
The target that will drive development towards
2027 is:
•
6% CO2e emissions reduction per average
claim
Read more about the specific targets on
page 80 - 82.
Tryg has a number of large commercial
customers. Many of these are already actively
working to reduce their CO2e emissions, while
some have not progressed so far yet.
Specifically for customers involved in the
extraction and production of fossil fuels, Tryg
aims to take a more proactive role in pushing
them towards a green transition with the target:
•
100% of premiums from commercial
extractors and producers of fossil fuels
covered by green transition plans by 2027.
Empowering people
Creating peace of mind across society and
customers requires committed employees and a
range of competences. Continuously investing
in people to leverage the entire talent pool is
therefore crucial.
Tryg builds on a strong position of high
engagement, a diverse and inclusive culture and
high talent retention, but to further empower
the organisation, specific levers are identified.
Among these are advancing female leaders in
top management and director level, and
maintaining focus on creating diversity in
leadership, accelerating solutions for career
development, and leveraging leadership to
sustain an attractive workplace and high-
performing organisation.
A specific target for gender proportionality is
defined to ensure that relevant and necessary
measures are in place to be able to advance
female leaders internally in order to reach
gender balance on each level of management.
Towards 2030, the guiding target is:
•
Minimum 40% gender representation
across each management level
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 66
1 'tryg' means 'to feel safe, protected and cared for in Danish
2 A product category is defined as one or more insurance products insuring the same object, e.g. a house. Tryg counts the number of product categories per country, meaning that, for instance, the product
category “House/Villa” is counted three times because all three countries offer this insurance category.
Tryg has defined specific
targets related to three focus
areas:
Future-fit products: Supporting our
customers in adapting to climate change
and preventing its impacts.
Incorporated under the strategic pillars
'Customer & Commercial Excellence and
Scale & Simplicity'
Climate action: Driving the green
transition throughout the value chain.
Incorporated under the strategic pillars
'Scale & Simplicity and Technical
Excellence'
Empowering people: Achieving
sustainability targets by leveraging all our
talent.
Incorporated under the strategic pillars
'Customer & Commercial Excellence and
Scale & Simplicity'
-
Stakeholder engagement
Tryg engages with its key stakeholder groups across a number of channels and for different purposes. The table describes the nature, outcome and anchoring of the engagements.
Stakeholder
Stakeholder engagement
Stakeholder interests and purpose
Outcome of engagement
Organisational anchoring
Employees
•
Annual and pulse engagement surveys
•
Work committees
•
Performance dialogues
•
Development plan and training.
Attract and retain employees. Make Tryg a workplace
where great talents perform, thrive and want to invest their
career:
•
Decent working conditions and environment
•
Work-life balance, job security, personal development,
benefits and payments.
•
Result of employee engagement survey
•
Reduce or maintain employee turnover.
•
Executive and Sustainability Boards
informed about the results of employee
engagement and pulse surveys
•
Employee engagement included in the
incentives programme for Executive Board
•
Supervisory Board informed about
employee turnover.
Customers
•
Sales and relations meetings
•
Customer service
•
Claims handling
•
Min side (tryg.dk, tryg.no, trygg-hansa.se)
•
Risk assessments
•
Complaints handling
•
Customer surveys.
Help protect customers against unforeseen events and
claims through prevention, relevant products, proper risk
assessments and efficient claims handling:
•
Insurance coverage
•
Value propositions, benefits, prevention initiatives
•
Prices and case handling
•
Prevention measures for most prevalent climate risks
•
Information about customer data handling.
•
Customer satisfaction score
•
Increased customer awareness
•
Reduction in number and size of claims
•
Reduction in number of complaints
•
Proactive approach to ensure adequate
and relevant coverage of claims.
•
Quarterly status on customer satisfaction
score to the Executive and Supervisory
Boards
•
Customer satisfaction score included in
the Executive Board's incentive
programme and in the general employee
bonus scheme.
Suppliers
•
Supplier relations management
•
Case-by-case management between suppliers
and claims assessors sharing best and new
practice
•
Supplier self-assessment questionnaires
•
Negotiations and agreements
•
Supplier workshops.
•
Clearly defined expectations to suppliers (quality,
speed of delivery, etc.)
•
Long-term planning for suppliers
•
Pushing for responsible business conduct and decent
working conditions
•
Sharing knowledge to increase capabilities and
competences towards more resource-efficient claims
handling.
•
Reducing CO2e emissions related to
claims
•
Close supplier relations and security of
supplier network.
•
Claims handling costs included in
quarterly reports and presentations to
management and Supervisory Board
•
Reduced CO2e emissions from repairs and
reuse in the claims handling process
reported quarterly to the Sustainability &
ESG Board.
Investors
•
Communication and meetings with analysts
•
Roadshows meeting Investors
•
Investor conferences
•
Quarterly conference calls with analysts/
investors
•
Capital markets days
•
Annual general meetings.
•
Introduction to Tryg and the Scandinavian non-life
insurance market
•
Q&As about recent developments, targets, dividend
and capital allocations, ESG, etc.
•
Manage expectations for financial and
non-financial targets and development
•
Understanding expectations from
analysts/investors.
•
Quarterly reports on stock price
development and feedback from analysts
and investors.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 67
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Material impacts, risks and opportunities
Based on the double materiality assessment
(DMA), Tryg has identified and assessed material
impacts, risks and opportunities across its up-
and downstream value chain and in its own
operations.
Materiality is identified across the following
ESRS themes: Climate change (E1), Resource
use and circular economy (E5), Own workforce
(S1), Consumers and end-users (S4), and
Business conduct (G1).
Material for Tryg’s own operations are its
employees, governance and processes for data
use and management, prevention measures,
and product and service offerings. Upstream
impacts centre around the resource use
and associated climate impact of the claims
handling process. Downstream impacts are
related to product offerings or specific customer
segments.
A detailed description of the impacts and
opportunities are presented under the
respective ESRS topical descriptions.
Material risks
As an insurance company, climate, and weather
in particular, are risks that Tryg has identified
and diligently works with under its risk
management framework. Quantifying and
addressing this type of risk is the core of Tryg's
business and key to ensure that Tryg
understands the impact of climate on its
business, its consequences for pricing decisions
and in the customer dialogues.
Tryg recognises that generic and gross risks
exist across the material themes, yet due to data
availability, only the risk of weather related
claims are described in the report - although not
considered material from a residual risk
perspective
Going forward, Tryg will work to further mature
data, quantification and understanding of social
environmental and governance risks.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 68
Theme
Negative impacts
Positive impacts
Risks
Opportunities
E1 Climate change
Climate change
mitigation
Climate change
adaptation
Weather related
claims
Climate change
adaptation
E5 Resource use and
circular economy
Resource inflows
incl. resource use
Resource inflows
incl. resource use
—
—
S1 Own workforce
Equal treatment
Other work-related
rights
Equal treatment
Work/life balance
—
—
S4 Consumers and
end-users
Information-related
impacts
Personal health &
Safety
—
Social inclusion
G1 Business
conduct
Management of
relationships with
suppliers
—
—
-
Double materiality assessment
To identify material impacts, risks and
opportunities, Tryg has conducted a DMA where
materiality is considered from both an impact
and financial perspective.
A wide group of internal stakeholders was
involved throughout the process to inform,
validate and assess the analysis. Where relevant,
selected internal stakeholder groups have acted
as proxies for external stakeholders. The
assessment was divided into separate phases,
with each validated by internal stakeholders and
proxies for key external stakeholder groups
before continuing to the next phase.
The DMA will be reviewed annually based on
best practice, new guidance, new developments
or organisational changes.
Phase I: Understanding the business
model and value chain
A first step to identifying and assessing impacts,
risks and opportunities material to Tryg was to
map and understand the business model and
value chain of Tryg. Resources and key
stakeholders were mapped across key value
chain activities to create a clearly defined scope
for the assessment.
Phase II: Identifying impacts, risks and
opportunities
Impacts, risks and opportunities were identified
across the pre-defined ESRS topics, sub-topics
and sub-sub topics. Across Tryg’s activities, no
value chain activity or business relationship
gave rise to heightened risk of adverse impacts.
However, the scope of claims suppliers was
limited to the largest claims areas. See
description under assumptions.
Sources for identifying actual and potential
impacts, risks and opportunities were existing
internal information, insights from external
standards and frameworks and peer reviews.
Insights from existing due diligence systems,
such as supplier screenings, engagement
surveys, external stakeholder feedback from
internal stakeholder proxies or industry insights,
were fed into the identification phase through
internal stakeholder interviews with subject
matter experts, directors from the business
areas, representatives from the Executive Board
and core functions.
Once finalised, long-lists of impacts, risks and
opportunities were validated by cross-functional
teams of subject matter experts in different
workshops. The short-listed impacts, risks and
opportunities were further assessed for
completeness and dependencies and
determined valid for the assessment phase.
The stakeholders involved in identifying
impacts, risks and opportunities were primarily
subject matter experts within specific areas,
such as HR, supply chain, compliance, facilities
and Tryg's three business areas, Private,
Commercial and Claims. Whereas the group of
stakeholders for the validation workshops was
composed of people who possess an overall
understanding and overview of Tryg’s activities
and business, e.g. investor relations, legal, risk
management and finance.
Assumptions:
Claims handling: For claims suppliers, the
scope of the assessment is limited to suppliers
within the largest types of claims, namely motor
and building – which are also the areas where
the probability of negative impacts or risks are
considered highest relative to other claims
areas.
Customers: For the downstream assessment of
impacts towards or through customers, the
assessment focused on the general purpose and
delivery of an insurance company to private and
commercial customers. From a value chain
perspective, specific impacts, risks and
opportunities were considered only in terms of
high-climate impact sectors due to the
established market consensus for moving
towards a green transition.
Investments: As described under the financial
results, Tryg has performed a de-risking of its
investments. The updated strategy means that
the portfolio is now made up primarily of
Scandinavian covered bonds. Equities and
credits have been removed to ensure a more
stable return.
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Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 69
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Governance measures around responsible
investment practices were identified as material
in the DMA. However, in light of the changes to
the portfolio, these are no longer considered
material.
Process used to identify material impacts,
risks and opportunities
Climate: Impacts on climate change are
identified across Tryg’s value chain. As an
insurance company, the majority of Tryg’s
emissions stems from suppliers, investments or
customers, which is reflected in the specific
negative impacts identified and assessed as
material. Prevention measures can help reduce
the number or size of claims, and are considered
a positive impact.
The risks identified under climate change are
centred around underwriting and closely
connected to Tryg's business model. They relate
to both climate mitigation and adaptation as
well as physical and transitional risks, for
example the increase in frequency and severity
of weather events and the emergence of new
technology for the green transition, which from
an insurance perspective can be difficult to
price.
UN consensus climate-scenarios,
Representative Concentration Pathways (RCP),
are compared against Tryg’s portfolio and
claims patterns to assess the financial impact of
both chronic and acute climate-related hazards
such as flooding or cloudbursts on Tryg’s claims
costs, in particular its weather-related claims.
The analysis considers low, medium and high
emission scenarios.
Transition risks relating to policies and
regulation, technological advancement and
market changes are described under SBM-3.
The transition risks are not directly informed by
the climate scenarios.
In the current assessment of risks, existing
mitigating actions such as reassurance, price
adjustments and prevention measures were
taken into consideration when determining the
financial impact, which was in line with the
guidance available at the point in time when the
analysis was performed. As a result, no climate-
related risks were considered material in the
2024 DMA.
Resource use and circular economy: Impacts,
risks and opportunities related to resource
inflow focus on claims suppliers, more
specifically within motor and building. The
inflow of resources is considered at a
consolidated level across suppliers. No
screenings or consultations were performed
and the assessment was based on existing
knowledge, as it has been a strategic target for
Tryg in recent years.
Pollution, water and marine resources, and
biodiversity: For the purpose of identifying
material impacts, risks and opportunities for the
thematic ESRS standards on pollution, the
assessment has focused on Tryg’s claims
suppliers. For water and marine resources, only
Tryg’s own activities have been assessed. For
biodiversity, actual and potential impacts are
identified and assessed across its up- and
downstream value chain. Due to the nature of
the insurance business, no dependencies,
transitional or physical risks are identified with
regards to biodiversity. One systemic risk related
to customers’ impact on biodiversity is identified
but not assessed material for an insurance
company at this point in time. No consultations
have been conducted on these topics.
Business conduct: Business conduct is
considered across Tryg’s own operations, as
such criteria are defined as the insurance sector
in the Nordic region.
Phase III: Assessing impacts, risks and
opportunities
The assessment methodologies and initial
thresholds for impact and financial materiality
were aligned with the Risk management
framework of Tryg.
Impact materiality: Impacts have been assessed
according to severity (scale, scope and
irremediability) and likelihood. For positive
impacts, irremediability was not considered, and
for actual impacts, likelihood was not
considered.
Financial materiality: Risks and opportunities
were considered in terms of their potential
effect on, respectively, cash flow, development,
performance, position, cost of capital and
access to finance. The potential financial effects
were assessed in close collaboration with key
stakeholders from finance and risk management
and based on various sources of input such as
financial targets and performance, existing risk
management framework, estimates and
assumptions.
Sustainability-related risks are not considered
on a stand-alone basis, they are rather seen as a
part of the company’s overall risk taxonomy and
are considered in the established ongoing risk
management processes. Given the relevance
and focus on sustainability-related risks, further
work is being carried out to ensure that there is
even more clarity on how sustainability-related
risks are managed within the company’s risk
management system.
Under Tryg’s risk management, the residual risk
is considered, as opposed to risks identified for
the purpose of the DMA where it is the gross risk
that determines materiality. In this context, the
DMA is considered an important radar for
identifying relevant risks that will be further
assessed in terms of appropriate mitigation
measures and management.
For both impact and financial materiality, the
actual assessment was performed through
bilateral engagements with key stakeholders in
the organisation and, finally, validated at
workshops with cross-functional teams.
Phase IV: Final validation and senior
level approval
The consolidated overview of material impacts,
risks and opportunities was also reviewed and
validated first by a cross-functional team before
it was approved first by the Sustainability & ESG
Board and ultimately by the Audit Committee.
Determining material information
to be disclosed
To determine what information to disclose,
initial thresholds for materiality were defined in
the assessment phase. Once completed,
validated and approved, all material themes and
disclosure requirements were further assessed
to determine the final scope of reporting
disclosures.
Specific disclosures related to topics, sub-topics
or sub-sub topics below the threshold were not
included. A holistic lens was applied to ensure
that the final set of disclosures reflects the
material matters.
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Financial results
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Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 70
.
Index of material disclosures
ESRS standard
DR Description
Page number
ESRS 2
BP-1 General basis for preparation of sustainability statement
57
BP-2 Disclosures in relation to specific circumstances
57
GOV-1 The role of the administrative, management and supervisory bodies
36 - 391; 58 - 59
GOV-2 Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory
bodies
36 - 391; 58 - 59
GOV-3 Integration of sustainability-related performance in incentive schemes
60
GOV-4 Statement on due diligence
61
GOV-5 Risk management and internal controls over sustainability reporting
63
SBM-1 Strategy, business model and value chain
64 - 66
SBM-2 Interests and view of stakeholders
67
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
68; 75 - 77; 87; 103; 114; 121
IRO-1 Description of the process to identify and assess material impacts, risks and opportunities
69 - 70
IRO-2 Disclosure requirements in ESRS covered by the undertaking's sustainability statement
71 - 72; 129 - 131
E1
E1-1 Transition plan climate change mitigation
74
E1-2 Policies related to climate change mitigation and adaptation
77
E1-3 Actions and resources in relation to climate change policies
77 - 78; 80
E1-4 Targets related to climate change mitigation and adaptation
80 - 82
E1-5 Energy consumption
79
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
83 - 86
E5
E5-1 Policies related to resource use and circular economy
88
E5-2 Actions and resources related to resource use and circular economy
88 - 90
E5-3 Targets related to resource use and circular economy
91
E5-4 Resource inflows
93
E5-5 Resource outflows
93
S1
S1-1 Policies related to own workforce
105 - 106
S1-2 Process for engaging with own workforce and workers' representatives about impacts
106 - 107
S1-3 Process to remediate negative impacts and channels for own workforce to raise concerns
108
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Sustainability statement
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1 Some disclosure points under GOV-1 and GOV-2 are incorporated by reference in the Corporate Governance section. See further details here.
..
ESRS standard
DR Description
Page number
S1
S1-4 Taking action on material impacts on own workforce and approaches to managing material risks and pursuing material
opportunities related to own workforce, and effectiveness of those actions
108 - 110
S1-5 Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities
111 - 112
S1-6 Characteristics of the undertaking's employees
104; 107
S1-7 Characteristics of non-employees in the undertaking's own workforce
104
S1-8 Collective bargaining coverage and social dialogue
107
S1-9 Diversity metrics
112
S1-13 Training and skills
113
S1-16 Remuneration metrics (pay gap and total remuneration)
113
S1-17 Incidents, complaints and severe human rights impacts
108
S4
S4-1 Policies related to consumers and end-users
114 - 115
S4-2 Process for engaging with consumers and end-users about impacts
116
S4-3 Process to remediate negative impacts and channels for consumers and end-users to raise concerns
116 - 117
S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material
opportunities related to consumers and end-users, and effectiveness of those actions
117 - 118
S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
118 - 119
G1
G1-1 Corporate culture and business conduct policies
121 - 122
G1-2 Management of relationships with suppliers
124 - 125
G1-3 Prevention and detection of corruption and bribery
123
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Financial statements
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Environment
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 73
E1 Climate change
E5 Resource use and circular
economy
EU Taxonomy
-
Climate change
Transition plan for climate change
Tryg is committed to taking its part in mitigating
the impact of climate change and contributing
to a low-carbon economy. As a financial sector
company, the majority of Tryg’s CO2e impacts
are indirect and occur in the value chain, e.g.
from suppliers and investments.
With approximately 7,600 employees across 32
locations in Denmark, Norway and Sweden, Tryg
remains focused on taking the necessary
measures to also reduce the climate impact of
its own operations by minimising emissions
from its offices through energy efficiency, waste
reduction and segregation, and changing
employees’ transportation habits.
Tryg has finalised its 2024 strategy period and
has set new targets that will drive its climate
ambitions going forward.
Tryg has defined climate emissions reduction
targets as part of its 2027 strategy. The targets
are defined based on best practices and
externally available guidance such as relevant
manuals from the GHG protocol, Partnership for
Carbon Accounting Financials (PCAF) and
manuals from the SBTi. As such, although not
validated, Tryg has worked to define its targets
in line with the Paris Agreement’s 1.5oC
scenario.
The targets are:
•
Scope 1: 42% CO2e emission reductions
by 2030 compared to 2023
•
Scope 2: 100% annual sourcing of
renewable electricity until 2030
•
Scope 3: 40% of suppliers (measured
by spend) have set Science Based Targets
by 20291.
In addition to these targets based on conclusive
scientific evidence, Tryg has defined a target for
CO2e emission reductions from claims handling
activities and has updated its existing targets
related to own operations, waste and business
travel. Tryg is not excluded from the EU Paris-
aligned Benchmarks.
The primary levers and actions defined to drive
progress on the targets are:
Scope 1
The majority of scope 1 emission reductions will
be driven by incentives and policies related to
the company car fleet focusing on getting more
employees eligible for company cars to choose
an electrical vehicle. A minor part of scope 1
stems from natural gas heating, which is still
used in one minor building in Denmark. Focus
will be on shifting the heating source to district
heating or heat pumps, for example.
Scope 2
Sourcing renewable electricity is dependent on
various issues, such as authority approval,
dialogue with the landlord and physical
condition of the site. For the remainder,
Guarantee of Origin certificates will be applied.
Scope 3
Supplier engagement is a prerequisite for driving
progress in the supply chain. Across all its
suppliers, Tryg will advocate and push for them
to commit to SBTi. The more companies that
commit to Paris-aligned targets, the larger the
climate impact. Additionally, Tryg will continue
its focus on more resource-efficient claims
handling through repairs and reuse, leading to
CO2e emission reductions.
Senior-level approval of transition plan
The transition plan is approved by the
Sustainability & ESG Board. The targets and
underlying roadmaps are an integral part of
Tryg’s 2027 strategy and as such ultimately
approved by the Supervisory Board.
Governance and roadmaps are defined for all
new targets to ensure ownership and progress
across the organisation as of 2025. More details
about the specific action plans are described in
the following sections.
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Annual Report 2024 | Tryg A/S | 74
1 Suppliers in scope for the target are all Tryg's direct and indirect suppliers, covering the full Scope 3 categories 1, 2 and 11.
-
Material impacts, risks and
opportunities
Negative impacts Material negative impacts on
climate change mitigation relate to claims
handling and underwriting.
Claims handling
Claims handling is a resource-heavy process
that is closely linked to the core of Tryg’s
insurance business. Emissions from the
resources used to handle claims, e.g. by
replacing or repairing broken items, are
significantly higher than the total direct
emissions from Tryg’s own operations. Thus, the
impact is high and the time horizon for the
impact to occur is short. Changing existing
practices towards more efficient resource use
requires close collaboration across the value
chain. This is an area Tryg will remain
committed to going forward, and which it has
defined specific targets for.
Underwriting
In its essence, providing insurance is a means to
mitigate risks, reduce financial uncertainty and
make accidental loss manageable for
customers. Ensuring that those who need
insurance have access to it is a social
responsibility. At the same time, Tryg wants to
contribute to the green transition and a more
sustainable societal development.
In addition to the new climate targets, aligned
with conclusive scientific evidence, as of 2025,
Tryg will start pushing for green transition plans
and greenhouse gas emission reduction targets
for certain activities in the fossil fuel sector. This
is a first step towards Tryg proactively
encouraging and monitoring its customers'
plans for decarbonisation.
The negative repercussions of high-climate-
impact sectors such as fossil fuel are recognised
and clear. However, the role of insurance here is
still being discussed and must be expected to be
further defined over the coming years.
Positive impact and opportunity
Tryg can have a positive impact on climate
change by including prevention measures in
product offerings. By preventing claims from
happening in the first place or minimising any
damage or loss that might occur, Tryg can
positively impact the number and size of claims
and thereby reduce the climate impact and
resource use from replacing broken or stolen
items.
Prevention is also identified as an opportunity
for Tryg and consequently central to Tryg’s
ambition of being a proactive peace-of-mind
creator. In addition to the comfort this gives
customers, there is also both an environmental
and social upside. Prevention initiatives are
integrated across numerous products today. It is
an integrated focus area across the business
lines and one of the technical screening criteria
for classifying a product as EU Taxonomy
aligned.
In light of a changing climate with more frequent
weather events, introducing new climate-
adapted insurance products presents an
opportunity for Tryg. Our efforts may involve
modifying existing products to include specific
new climate-related coverage and prevention
measures.
Understanding climate impact on Tryg
As an integral part of its risk management, Tryg
applies consensus UN Representative
Concentration Pathways (RCP2.6, RCP4.5 and
RCP8.5) to assess the potential impact of
climate change on its business. The impacts of
these low, medium and high emission scenarios
are considered against Tryg's portfolio and
claims patterns.
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Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 75
Task Force for Climate-Related Financial Disclosures
The recommendations of the Task Force for Climate-Related Financial Disclosures (TCFD) have
been fully integrated into the climate change-related disclosure standards, ESRS E1, on Climate
Change. As a result, Tryg no longer includes a separate overview of the recommendations. The
relevant descriptions are covered in the sections on Corporate and Sustainability Governance
(pages 36 and 58), SBM-3 (page 75 - 77) double materiality assessment (page 69), and throughout
the section on Climate change (pages 74 - 86).
-
The effects of climate change are expected to be
significant within this century, with visible
changes from decade to decade. Increases in
average temperatures and sea levels will be
followed by a significant increase in the
frequency and severity of extreme weather
events, i.e., heavy rain and flooding or draught.
Also, coastal flooding is expected to be a
significant issue on a global scale due to rising
sea levels. However, risks associated with wind
storms are expected to be relatively unchanged.
The increase in coastal flooding, in particular, is
also expected to impact the interface of what
can be insured and what will be covered through
national schemes, measures or services. It could
also be a new product designed to help
customers adapt to a changing climate. The
2027 strategy commits to ensuring that 30
product categories1 are aligned with the
technical screening criteria of the EU Taxonomy,
corresponding to 60% of all product categories
in scope. Read more on page 95.
Similarly, Tryg will continuously track
technological developments, advanced
knowledge and the application of sophisticated
data to enhance its claims prevention and
climate adaptation measures. Tryg has
established an approval process for new and
significantly redesigned products involving
relevant Group functions, such as Legal,
Compliance, Risk and Sustainability, in
evaluating perspectives such as ESG risks and
the possibilities for climate adaptation.
Physical risks
While the residual risk from weather events was
not deemed material in the double materiality
assessment, it remains a key focus area under
Tryg’s risk management and is essential to
ensure that Tryg can maintain its resilience.
To counter the financial impact of changes in
weather events, Tryg relies on its technical
capabilities of pricing and analysis, reserves and
claims forecasting, underwriting risks and
reinsurance.
Reinsurance is used to reduce the underwriting
risk in situations where this cannot be achieved
to a sufficient degree via ordinary diversification
– thereby capping the cost of large and weather-
related claims. As a non-life insurance company,
the insurance policies are renewed annually,
thus ensuring that the long-term climate impact
on claims costs will be mitigated through annual
price adjustments. The forward-looking
scenario-based approach accounting for
climate impact is incorporated into the pricing
of products where relevant (notably Taxonomy-
aligned insurance products).
To prevent or minimise claims, Tryg advises its
customers on how to protect their assets from
environmental and climate-related damage.
Tryg works closely with local authorities to
prevent damage to buildings and assets through
for example a willingness to share data on areas
that are exposed to weather-related claims.
The transition to a global low-carbon economy
is also associated with climate-related risks,
including regulatory, technological and societal
developments, which represent a range of risks
and opportunities for Tryg as a business.
Transitional risks
One of Tryg’s main transitional risks is
associated with developments in climate-
related policies and regulations. This includes
the implementation of national carbon taxes or
the tightening of energy efficiency standards.
Despite having a relatively limited direct
footprint, the introduction of regulations and
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The Danish financial sector's climate partnership
In 2019, the Danish government set up thirteen climate partnerships divided into industries
that will contribute to the government's ambition of reducing Denmark’s carbon emissions
by 70% by 2030 compared with 1990.
The financial sector’s own emissions are estimated to account for less than 0.1% of total
Danish emissions.
The sector wants to contribute to the Danish reduction target in four areas:
1.
Setting targets and monitoring the reduction in customers’ carbon footprints
2.
Actively engaging with customers
3.
Integrating sustainability into business models
4.
Reducing emissions from the financial sector itself
Relevant data points are available on pages 78 - 84; 94 - 97; and 162.
1 A product category is defined as one or more insurance products insuring the same object, e.g. a house. Tryg counts the number of product categories per country, meaning that, for instance,
the product category “House/Villa” is counted three times because all three countries offer this insurance category.
-
policies on climate-related matters, such as
carbon taxes or increased compliance and
reporting requirements, will have significant
implications for Tryg.
Additionally, technological advancements
towards greener solutions can render existing
technologies obsolete, creating risks related to
insuring outdated technologies or industries that
fail to adapt quickly. Market shifts towards more
sustainable products and services can affect the
demand for certain types of insurance,
potentially reducing demand for products
related to high-emission activities or industries.
Furthermore, there is an increasing risk of
litigation against companies perceived to be
contributing to climate change, which could
lead to higher claims and legal costs for Tryg.
The transition to a low-carbon economy might
also disrupt supply chains, particularly for
industries heavily reliant on carbon-intensive
processes, leading to increased claims related to
business interruptions.
In summary, while Tryg faces several
transitional risks due to climate-related policies
and market changes, proactive adaptations,
training and controls are essential to navigate
these challenges and maintain competitiveness
in the evolving landscape.
Policies related to climate change mitigation
and adaptation
Tryg’s Climate and Environmental policy guides
its efforts to mitigate negative impacts on
climate and environment. The policy applies to
all legal entities and business areas and cuts
across various functions in Tryg, such as
facilities, procurement and the business areas,
and is owned by the Head of Sustainability
& ESG.
Efforts to ensure protection of the climate and
environment, including biodiversity, are driven
by the certified environmental management
system ISO 14001 and reflect Tryg’s
commitment to integrate the UN Global
Compact Principles into its business.
The policy outlines Tryg’s commitment to
minimise its direct and indirect adverse climate
and environmental impacts. As an insurance
company, we acknowledge that indirect
emissions from e.g. claims handling constitute
the bulk of emissions. Tryg is committed to
cooperating with and encouraging suppliers and
business partners to integrate climate,
environmental and social considerations into
their operations.
Tryg remains focused on actively working to
improve energy efficiency across its sites
through the use of renewable energy and a
focus on reducing emissions from company
cars and business travel.
The policy also addresses climate change
adaptation in terms of managing climate-related
risks. Data monitoring and prevention measures
are among the mechanisms to mitigate the risk.
Actions and resources in relation to climate
change policies
Specific initiatives completed during the year
are described below. The overall purpose
throughout the year has been to make sure that
Tryg continues to build on its positive progress
in order to reach its 2024 targets and be ready
to start delivering on the newly defined CO2e
emission reduction targets. The new targets are
expected to be feasible within current resource
allocation.
Electricity and energy savings
Tryg covers 100% of its electricity consumption
through Guarantee of Origin certificates. Going
into the new strategy period, Tryg maintains its
ambition of using 100% renewable electricity.
The ambition is supported by actions such as
converting to more energy-efficient lighting,
adjustment of operating times on ventilation
and air conditioning systems, and relocation to
more energy-efficient locations in order to
ensure that general consumption levels are
reduced to the extent possible, thereby
continuously minimising the share covered by
certificates.
In 2024, Tryg converted from natural gas to
district heating at its site in Kolding, Denmark.
This is an important step in its scope 1 emission
reductions, and means that Tryg only has one
minor site left that still uses natural gas.
Waste
Implementation of new waste handling
equipment at its Danish locations enables Tryg
to better sort its waste into fragments and
ensure that what can be reused is reused.
Additionally, Tryg makes sure to donate or resell
excess office furniture to charity organisations
or at auctions. As of 2025, Tryg expects to be
able to expand its waste report to include IT
waste sent to reuse. During the year, CO2e
emissions from waste were reduced by 20%
compared to the base year as a result of these
initiatives.
Business travel
Business travel is an area where each employee
can make a difference through their behaviour.
Increased options for online collaboration and
meetings support this.
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Tryg has updated its travel policy and frequently
emphasises the need for each employee to
consider whether travel is necessary or if the
meeting can be online instead. As a result of
these efforts, emissions for air travel have been
reduced by 49% since 2019.
As of 2024, the KPI has been expanded to
include other types of business travel, such as
public transport by train, bus, taxi and business
travel in private cars. This forms the baseline for
a new 2030 target for business travel. Tryg will
continue to monitor travel patterns and urge
employees to minimise transportation and, if
not possible, select the most emission-efficient
option.
Company cars
Tryg in Denmark has granted an increase in the
total cost of ownership (TCO) for employees
selecting an electrical vehicle. The increased
TCO has had a visible effect in the car fleet
towards electrical vehicles.
As of 2024, cars in Sweden are included in the
calculation of CO2e emissions from company
cars, which has resulted in a general increase in
emissions. Tryg does not have company cars in
Norway.
Claims handling:
To account for emissions from the claims
handling process, Tryg has set a target of
reducing CO2e emissions by an average of 6%
per claim by 2027. The target is based on
guidance from the Greenhouse Gas (GHG)
protocol, and progress will be driven by the
claims handling initiatives focused on repairing
and reusing to the extent possible rather than
replacing with new items.
Compared to the target for avoided emissions
(read more on page 91) that only covers specific
claims handling initiatives, the CO2e emissions
reduction target represents reductions in Tryg’s
total emissions calculated by comparing
changes in Tryg’s actual emission inventory over
time relative to a base year. Tryg is thus
expanding the scope of the target.
ISO 14001 environmental management
certification guides our efforts
Tryg is certified according to the environmental
management system ISO 14001 across all its
locations in Denmark, Norway and Sweden. The
environmental management system supports
Tryg in ensuring continuous focus, planning,
implementation and follow-up on initiatives and
targets related to environment and climate.
The certification implies a highly systematic
approach to working with climate and
environment and will support Tryg in delivering
on its strategy and ambitions while paving the
way for future climate considerations. Regular
external audits are performed to maintain the
certification.
Eco-Lighthouse certification in Norway
Tryg Norway is further certified under the
national Eco-Lighthouse certification scheme,
which focuses on the environment and a safe
working environment for employees.
Tryg Norway has furthermore entered a
collaboration with the Eco-Lighthouse
foundation to assist small and medium-sized
enterprises with their sustainability efforts.
The collaboration provides Tryg's customers
with tools and expertise they can use in their
sustainability initiatives. This collaboration is the
first of its kind, with the goal of encouraging
Norwegian small businesses to actively reduce
their impact on the climate and the environment
through an environmental certification process.
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Company cars (scope 1 and 2)
Unit
2019
2023
2024
Scope 1
Emissions from fossil fuel consumption, Cars DK
tCO2e
880
858
n
636
Emissions from fossil fuel consumption, Cars SE
tCO2e
-
-
443
Emissions from fossil fuel consumption, Cars total
tCO2e
880
858
1,080
Scope 2
Emissions from electricity consumption, Cars DK
tCO2e
45
Emissions from electricity consumption, Cars SE
tCO2e
1
Emissions from electricity consumption, Cars total
tCO2e
46
Business travel (scope 3-C6)
Unit
2019
2023
2024
Air travel
tCO2e
3,299
2,629
n
1,684
Public transport
tCO2e
283
Taxi
tCO2e
268
Business travel in private cars
tCO2e
506
Business travel, Total
tCO2e
3,299
2,629
2,741
Limited assurance in 2023
n
Note: All environment tables are aligned with the requirements of ESRS E1-6 table 1 (AR48) on
page 83. Years are therefore listed in ascending order.
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Energy consumption and mix
ESRS ID
Unit
2019
2023
2024
Energy consumption and mix
Total energy consumption from electricity and district heating
15,490
Total electricity consumption
MWh
8,636.0
Total district heating
MWh
6,854
E1-5_02 Total energy consumption from fossil sources
MWh
4,533
Company cars, fossil fuel
MWh
4,201
Natural gas, total
MWh
323
Diesel, stationary
MWh
8
E1-5_01 Total energy consumption related to own operations
MWh
26,779
17,848
n
20,023
Total energy consumption from renewable sources
E1-5_06 Fuel consumption from renewable sources
MWh
122
E1-5_07 Consumption of purchased or acquired electricity, heat, steam, and cooling from
renewable sources (Market-based)
MWh
13,933
E1-5_05 Total energy consumption from renewable sources
MWh
14,056
E1-5_09 Percentage of renewable sources in total energy consumption
%
46
n
70
Limited assurance in 2023
n
Accounting principles
E1-5 – Energy consumption and mix
The figures for own operation are based on utility activity data based on meter readings and
documentation from suppliers. Locations under 750 m2 are based on average estimation on m2.
The data includes estimations on Q4 performance because of delays in receiving invoices from
suppliers. When the results from Q4 have been collected and calculated, a comparison control is
performed and any deviations are considered against material thresholds.
E1-5_01 Total energy consumption related to own operations: Tryg’s energy consumption in own
operations forms the input to scope 1 and 2. It covers energy consumption based on fossil
sources, electricity consumption and district heating used across Tryg’s facilities.
E1-5_02 Total energy consumption from fossil sources: Energy consumption from fossil fuel
comes from two sources.
1. Company cars, fossil fuel: All transportation in fossil fuel company vehicles in
Denmark and Sweden. Norway has no company cars. Driving consumption is based
on data processed by Tryg’s leasing partner.
2. Stationary combustion: Includes natural gas based on meter readings and
documentation from suppliers, and diesel use for emergency generators.
E1-5_03 Total energy consumption from nuclear sources: Tryg's energy consumption consists of
an energy mix based on the Nordic energy co-operation, which consists of among other sources,
nuclear. Tryg has no direct nuclear sources.
E1-5_05 Total energy consumption from renewable sources: Share of renewable sources in
Tryg’s consumption of fuels, electricity and district heat.
E1-5_06 Fuel consumption from renewable sources: Fuel consumption from renewable sources
comes from Tryg’s use of natural gas that contains a percentage of the renewable source biogas.
Percentage share comes from https://groengas.dgc.dk/ (2022 figures).
E1-5_07 Consumption of purchased or acquired electricity, heat, steam, and cooling from
renewable sources (market-based): The calculation of Tryg's share of renewable energy in the
consumption of purchased or acquired electricity and district heating is based on market-based
emission factors, being the most conservative and representative.
E1-5_09 Percentage of renewable sources in total energy consumption: The indicator of
renewable energy share includes how much of the total consumed energy comes from renewable
energy sources.
-
Climate change adaptation actions
As an insurance company, changes in weather
patterns can directly impact Tryg in terms of the
frequency and severity of weather-related
claims. Such claims can be severe for Tryg’s
customers, who can potentially experience
destruction of their homes.
In light of another year marked by severe
weather events with both human and economic
consequences, the time has come to realise that
as a society there is a need for a more proactive
approach to protect these assets in the future.
Helping customers and society to adapt to these
challenges is a high priority for Tryg, which has
proactively started to address this at a societal
level. The purpose is to ensure that adequate
prevention measures are in place for climate
adaptation in order to be prepared for the
extreme weather events we must expect will
continue to occur in the future.
Tryg has partnered with Rambøll, a global leader
in engineering and consultancy, to provide
commercial customers with innovative
solutions for mitigating weather-related
damages and increasing the use of reused
materials in the claims handling.
The partnership also aims to simplify risk
identification for buildings constructed with
lower-carbon footprint materials. This
addresses a long-standing challenge in the
industry, making these projects and insuring
them more feasible.
In Norway, Tryg continues its partnership with
Climate Futures together with a cluster of
partners in climate and weather-sensitive
sectors. Climate Futures is a Norwegian
initiative aimed at co-producing new solutions
for predicting and managing climate risks on a
time horizon ranging from ten days to ten years
into the future. By participating in this project,
Tryg gains knowledge that can improve the
value and relevance of its claim's prevention
advice and actions for customers.
Tryg continues its work to adapt products to the
criteria for climate change adaptation under the
EU Taxonomy. With the main purpose of helping
customers adapt to climate change, the essence
of Taxonomy-aligned products is to ensure that
customers are protected against weather-
related hazards and that the products include
risk incentives for preventing claims from
happening. Read more about Tryg’s work with
the EU Taxonomy on page 94.
Aside from premiums being aligned with the EU
Taxonomy, there is no link between the financial
reporting and the climate-related activities.
Targets
Tryg has defined targets for scope 1, 2 and 3,
respectively, and for its total GHG emissions. As
Tryg has finalised one strategy period and
entered a new period, targets are presented in
two tables, one for 2024 and one for 2027 /
2030 targets.
The climate targets are defined based on best
practices and externally available guidance such
as relevant manuals from the GHG protocol,
Partnership for Carbon Accounting Financials
(PCAF) and SBTi.
The targets are owned by the respective
departments in Tryg. No external stakeholders
have been involved in the process.
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 80
-
Follow-up 2024 climate targets
The table below presents Tryg's 2024 climate emissions reduction targets on CO2e reductions from company cars, energy consumption, waste, air travel and total emissions. To present the full picture, the
table includes base year value, comparative year and reporting year as well as 2024 reduction against baseline.
Accounting principles for the respective retrospective figures are described under the Accounting Principles for E1-6 on page 85 - 86.
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 81
Climate targets - 2024 Sustainability strategy
Scopes
Base year
Comparative
Reporting year
Targets
Performance
Reduction vs
baseline
ESRS ID
Units
2019
2023
2024
Units
2024
2024
E1-4_07 Scope 1 GHG emissions
CO2e reduction from car fleet a)
tCO2e
880
858
n
636
%
23
28
E1-4_10
E1-4_13 Scope 2 GHG emissions
CO2e reduction from energy consumption (market-based)
tCO2e
4,152
520
n
332
%
58
92
E1-4_16 Significant scope 3 GHG emissions
CO2e reduction from waste (C5)
tCO2e
140
133
n
112
%
12
20
CO2e reduction from air travel (C6) b)
tCO2e
3,299
2,629
n
1,684
%
23
49
Total GHG emissions
CO2e Total emissions reduction (market-based)c)
tCO2e
9,376
4,180
n
2,802
%
35
70
E1-3_03 Achieved GHG emission reductions in 2024
tCO2e
1,378
Prevention and claims handling
Avoided emissions from more sustainable claims handling
tCO2e
11,493
d)
21,208
n
27,825
tCO2e
20,000–25,000
27,825
Increase in sustainable spend
%
0
d)
29
n
47
%
80
47
Limited assurance in 2023
n
a) Figures are based on fossil fuel company cars in Denmark.
b) Figures only include air travel from external business travel management systems.
c) The total figures are based the same definition as 2019 which included company cars (DK), natural gas, district heating, waste and business travel (air travel).
d) Base line year 2020.
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2027 and 2030 climate targets
The table below presents Tryg's 2027 and 2030 climate emission reduction targets. The table includes base year value, comparative year and reporting year as well as 2024 reduction against baseline.
Accounting principles for the respective retrospective figures are described under the Accounting Principles for E1-6 on page 85 - 86.
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 82
a) Target based on air travel.
b) Target year 2029, due to alignment with SBTi manuals.
Climate targets - 2027 and 2030 Sustainability targets
Scopes
Base year
Compara-
tive
Reporting
year
Targets
Performance
Reduction vs
baseline
Decarbonisation lever
ESRS ID
Units
2024
N/A
2024
Units
2027
2030
2024
E1-4_07 Scope 1 GHG emissions
E1-4_07 CO2e emissions reduction
tCO2e
1,120
1,120
%
24
42
0
Transition away from natural gas and change in
company car fleet
CO2e reduction from car fleet
(part of C02e emission reduction, scope 1)
tCO2e
1,080
1,080
%
Internal policies and incentives towards electrical
vehicles
E1-4_10
E1-4_13 Scope 2 GHG emissions
Annual sourcing of renewable energy
(Renewable electricity)
tCO2e
100
100
%
100
100
0
Compensate by purchasing GO (Guarantee of Origin
certificates )
E1-4_13
CO2e reduction from energy consumption
(location-based)
tCO2e
978
978
%
7.5
15
0 Energy-efficiency
E1-4_16 Scope 3 GHG emissions
E1-4_16 CO2e reduction from waste (C5)
tCO2e
112
112
%
3
6
0 Waste segregation
E1-4_16
CO2e reduction from from business travel, air
travel (C6)
tCO2e
1,684
1,684
%
2
a)
5
0
Internal policies, online meeting and collaboration
platforms
Suppliers have set Science Based Targetsc)
%
- c)
-
%
40
b)
40
- Supplier engagements and Terms and conditions
CO2e reduction per average claim
tCO2e
- c)
-
%
6
- Repairs and reuse in clams handling
Total GHG emissions
CO2e Total emissions reduction target
(location-based)
tCO2e
757,703
757,703
%
TBD (2025)
TBD (2025)
0 Scope 1, 2 and 3
E1-3_04 Expected GHG emission reductions
tCO2e
-
d)
-
%
Other Climate actions and products
Climate-adapted product categories, aligned with
the EU Taxonomy
Number
13
13
No.
30
E5-3_04
Reduction in use of new materials per average
claim
kg
-
-
%
10
- Repairs and reuse in claims handling
Customers active within fossil fuels to have green
transition plan in place
%
-
-
%
100
-
c) The target covers all supplier emissions across the scope 3 categories C1, C2 and C11e 2024. First time reporting will be year-end 2025.
d) Expected GHG emission reductions can only be calculated when all target heights are set.
-
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 83
Total GHG emissions disaggregated by Scopes 1 and 2 and significant Scope 3
Retrospective
Milestones and target years
Base year Comparativ
e
Reporting
year
Index
Actual
reduction
Target
Target
Target
Target
Target
Annual
% Target/
Base year
(tCO2e)
(tCO2e)
(tCO2e)
(%)
(%)
(tCO2e)
(%)
(tCO2e)
(%)
(tCO2e)
(%)
ESRS ID
2024
N/A
2024
N / N-1
N-1/N
2027
2027
2030
2030
(2050)
Scope 1 GHG emissions
E1-6_07 Gross Scope 1 GHG emissions
1,120
1,120
851
24
649
42
7
d)
E1-6_08
Percentage of Scope 1
GHG emissions from regulated emission trading
schemes
100
100
-
-
Scope 2 GHG emissions
E1-6_09 Gross location-based Scope 2 GHG emissions
978
978
905
7,5
831
15
3
d)
E1-6_10 Gross market-based Scope 2 GHG emissions
332
332
Significant scope 3 GHG emissions
E1-6_11 Total Gross indirect (Scope 3) GHG emissions
755,605
755,605
1 Purchased goods and services
40,361
40,361
N/A
6
b)
2 Capital goods
169
169
N/A
6
b)
3 Fuel and energy-related Activities
(not included in Scope1 or Scope 2)
518
518
N/A
-
5 Waste
112
112
108
3
a)
105
6
1
d)
6 Business travelling
2,741
2,741
2,686
2
a)
2,604
5
1
d)
11 Use of sold products
291,381
291,381
N/A
6
b)
15 Investments
420,323
420,323
TBD (2025) c)
TBD (2025)
Total GHG emissions
E1-6_12 Total GHG emissions (location-based)
757,703
757,703
N/A
N/A
E1-6_13 Total GHG emissions (market-based)
757,057
757,057
TBD (2025)
TBD (2025)
a) The target for Scope 3 consists of C5 (Waste) and C6 (Business travel, air travel), because the other target for C1, C2, C11 and C15 are intensity targets.
b) Transversal intensity target 'CO2e emissions reduction per claim' at 6% covers all supplier emissions across C1, C2 and C11,
c) Target are set in Q1-2025. The Investment target are based on SBTi recommendations where Tryg set a reduction intensity target in % per m2.
d) Annual % target / based year are calculated on the 2030 target.
The table presents Tryg's total GHG scope 1-3. Accounting principles for the respective retrospective figures are described under the Accounting Principles for E1-6 on page 85 - 86.
-
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Financial results
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Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 84
Gross Scopes 1, 2, 3 and Total GHG emissions
ESRS ID
Units
2019
2023
2024
Gross Scopes 1, 2, 3 and Total GHG emissions
E1-6_22 Percentage of contractual instruments used for sale and purchase of unbundled energy attribute claims in relation to
Scope 2 GHG emissions
%
92
GHG Intensity based on Insurance revenue
E1-6_30 GHG emissions intensity, location-based (total GHG emissions per insurance revenue)
Number
0,000020
E1-6_31 GHG emissions intensity, market-based (total GHG emissions per insurance revenue)
Number
0,000020
.
-
Accounting principles GHG emissions
E1-6 Gross Scopes 1, 2, 3 and Total GHG
emissions
Tryg's carbon footprint provides a general
overview of Tryg’s greenhouse gas emissions
converted into CO2 equivalents (CO2e). It is
based on reported data from internal and
external systems. The carbon footprint analysis
is based on the international standard: A
Corporate Accounting and Reporting Standard,
by the Greenhouse Gas Protocol Initiative (GHG
Protocol) and developed by the World
Resources Institute (WRI) and World Business
Council for Sustainable Development
(WBCSD, 2021).
The reporting considers the following
greenhouse gases, all converted into Carbon
Dioxide Equivalents (CO2e): CO2 (Carbon
dioxide), CH4 (methane), N2O (Nitrous oxide),
SF6 (Sulphur hexafluoride), HFCs
(Hydrofluorocarbons) and PFCs
(Perfluorocarbons) and NF3 (Nitrogen
trifluoride). The methodology is based on the
Greenhouse Gas Protocol. The calculation is
based on the financial control aspect that
defines what should be included in the carbon
inventory, as well as in the different scopes. The
reporting is presented by source type.
The key external sources used as a basis for the
CO2e calculations in this report are World
Resource Institute (WRI/US), International
Energy Agency (IEA/OECD), Intergovernmental
Accounting principles for selected indicators
Panel on Climate Change (IPCC), Department of
Energy and Climate Change (DECC/UK),
EcoInvent LCI Database.
Facility data is provided by external suppliers
with a delay compared to the time of
consumption. Because of the rapid year-end
closing in Tryg, the fourth quarter is an estimate
based on relevant data from the corresponding
period including adjustment for any known
changes. When actual data is available, an
update is made in the next external reporting if
the figures are above the material limit.
Scopes and definitions of scope 1 and 2 have
been updated. Scope 3 has been expanded, as
the categories 1, 2, 3, 11 and 15 have been
added to the emission figures, and category 6
has also been extended to ensure
completeness. See descriptions of the
categories in scope under E1-6_11.
Emissions from each category are reported
separately so the effect on the total figure is
transparent.
The following scope 3 GHG emission categories
are excluded from the GHG inventory:
•
C4. Upstream Transportation and
Distribution: Tryg does not produce physical
goods and therefore has no transport of
sub-elements. Plans to include transport of
indirect products and services in the coming
years.
•
C7. Employee Commuting: Tryg’s
employees commute from their private
homes to Tryg locations using all kinds of
transportation. It is currently assessed that
there is too much uncertainty associated
with calculating the figures. This will be
further assessed in the coming years.
•
C8. Upstream Leased Assets: Tryg does not
operate assets that are leased.
•
C9. Downstream Transportation and
Distribution: Tryg has no physical products
that need to be transported or distributed
after point of sale.
•
C10. Processing of Sold Products: Tryg does
not sell products that are part of other
companies' production of goods and/or
services.
•
C12. End-of-life treatment of sold products:
Tryg does not offer any products to its
customers that generate waste after
end-of-life of the products.
•
C13. Downstream leased assets: Tryg does
not lease assets to other companies.
•
C14. Franchises: Tryg Group does not
operate any franchises.
All emission factors used in the calculation of
scope 1-3 are based on the emission factors
from Tryg’s carbon accounting system. Details
regarding methods and assumptions are
described under each disclosure regarding
scope 1-3.
E1-6_07 Gross Scope 1 greenhouse gas
emissions: Scope 1 consists of the total energy
emissions from fossil fuel sources, which are
emissions from company cars in Denmark and
Sweden and stationary combustion.
E1-6_09 & E1-6_10 Gross location- and
marked-based Scope 2 greenhouse gas
emissions: Includes indirect emissions related to
purchased energy, i.e. electricity and heating/
cooling at locations where Tryg has operational
control. According to the GHG protocol, scope 2
emissions are calculated as both location- and
marked-based.
E1-6_11 Gross Scope 3 greenhouse gas
emissions: Scope 3 includes indirect emissions
from Tryg's activities in the value chain.
C1. Purchased goods and services, C2. Capital
goods and C11. Use of sold products are all new
disclosures in 2024, based on spend data from
Tryg’s procurement system.
C3 Fuel and energy-related activities (not
included in scope 1 or scope 2). New data point
based on the derived distribution by multiplying
the total facilities and transport consumption
figures by the relevant emission factor.
C5 Waste generated in operations: Data is based
on invoices from waste management facility or
supplier.
C6 Business travel: Includes flights, public
transportation, taxi and business travel. Data is
sourced by external business travel
management systems and Tryg’s expense
system. The inventory is based on a hybrid of
activity and spend data.
C15 Investments: CO2e emissions from Tryg’s
investments in covered bonds are calculated by
using key figures (CO2e emissions per million in
DKK) supplied by Capital Market Partners. They
collect publicly available data from the
respective issuers in Denmark. CO2e emissions
from Swedish and Norwegian issuers are not yet
possible for them to produce. Therefore, these
two CO2e emission figures on covered bonds
calculated using a key figure for the Danish
portfolio.
Contents
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Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 85
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E1-6_02 & E1-6_13 Total GHG emissions
(location-based) (tCO2e) and Total GHG
emissions (market-based) (tCO2e): The total
GHG emission (location-based) and (market-
based) is based on a sum of scope 1, 2
(respectively, location- and market-based) and
3 all categories.
E1-6_22 Percentage of contractual instruments
used for sale and purchase of unbundled energy
with attribute claims in relation to Scope 2 GHG
emissions: Tryg’s consumed energy also
contains energy from renewable sources. The
percentage of contractual instruments for Tryg’s
scope 2 emissions includes how much of the
total consumed energy comes from electricity
generated through Guarantee of Origin (GO)
certificates, which according to the GHG
protocol is considered the same as Renewable
Energy Certificates (RECS). Tryg covers 100% of
its electricity consumption through GO
certificates.
E1-6_30 & E1-6_31 GHG emissions intensity,
(location-based) and (market-based) (total GHG
emissions per net revenue): Tryg’s GHG
emissions intensity is based on Total GHG
emissions (location-based) and (market-based)
in tonnes CO2e divided by insurance revenue
from the financial statements, note 4, page 157.
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 86
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Resource use and circular economy
Material impacts, risks and
opportunities
Positive and negative impact
Tryg’s material impacts on resource use and
circular economy are identified in the claims
handling process, i.e. at the claims suppliers and
their respective use of resources.
Claims handling is identified as an area where
Tryg can have a negative impact due to the
amount of resources needed to handle claims.
This involves all types of materials for replacing
or repairing broken items and is considered
short term.
At the same time, Tryg has a strategic focus on
reducing resource use in the claims handling
process, focusing on repairs and reused
material rather than replacing with new items.
Extensive use of resources puts pressure on the
environment and nature when extracting and
producing material as well as on the climate in
terms of the related emissions.
Handling claims is the core of Tryg’s delivery to
customers, yet an area where Tryg is dependent
on the supplier base to make sure that material
impacts are addressed.
Thus, minimising resource use and prioritising
the use of recycled materials requires close
supplier collaboration and a willingness to
change existing practices.
Tryg has reported on the avoided CO2e
emissions from claims handling and on the
percentage of spend used for these initiatives on
an annual basis. Going into the 2027 strategy
Contents
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Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 87
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period, resource use is defined as a new
strategic target to further drive the practice of a
more circular approach to claims handling
centred around reusing, repairing and ultimately
reducing the use of new materials.
Policies related to resource use
and circular economy
Tryg’s Climate and Environmental policy
expresses Tryg’s commitment to minimising
resource use in the claims handling process.
The policy applies to all legal entities and
business areas and cuts across various
functions in Tryg, such as facilities, procurement
and the business areas, and is owned by the
Head of the Sustainability & ESG function.
The policy describes how resource use and the
circular economy are particularly important to
address in the claims handling process. With
more than 2.2 million claims annually, Tryg can
have a significant impact by minimising the
resources and materials used by increasing
repairs and utilisation of reused spare parts.
Tryg is committed to reducing the use of virgin
materials in the claims handling process and to
cooperate with and encourage suppliers to
consider this in their approach to handling
claims.
It entails the implementation of new ways of
working and sourcing of spare parts at supplier
level. For Tryg, it means including data regarding
repair and reuse in the matrix that steers claims
to preferred suppliers alongside other KPIs such
as geography and cost. It also means that Tryg
plays a role in continuously helping to identify
new repair or preservation methods that can be
expanded to more types of claims.
Tryg’s ambition is to push for a shift away from
the traditional replace-with-new towards a
repair and reuse mindset. Currently, Tryg’s
policy does not address renewable resources.
Practices around supply chain management are
described under G1 Business conduct on
page 124.
Actions and resources related to
resource use and circular economy
To address the negative material impact of
resource use in the claims handling process,
Tryg has for several years, in close collaboration
with suppliers, focused on reducing resource
use and the associated emissions from claims
handling. Through specific initiatives, Tryg
works to create a mindset around claims
handling aimed at preserving what can be
preserved, repairing what can be repaired, and
reusing what can be reused – thereby putting
the least possible strain on the planet’s
resources.
This new way of working requires a shift in
mindset, which takes time and involves close
collaboration, capacity building and knowledge
sharing both internally across relevant teams,
such as procurement, claims and the insurance
assessors, as well as externally towards and
between suppliers and partners.
Internally, Tryg facilitates knowledge sharing of
good practices. Initiatives can be implemented
across all types of claims in all countries, and
internal knowledge sharing is necessary to
expand the types of claims where reused
material or repairs can be applied.
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Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 88
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Externally, inspiration and knowledge sharing
about repairing and reusing are, to the extent
possible, included at dedicated theme days or
webinars with external suppliers and partners.
During 2024, Tryg launched the catalogue
‘Handled with care’, describing specific
initiatives where repairs or reuse can be applied.
It targets suppliers and serves as inspiration and
capacity building for the supplier base.
Tryg’s largest groups of claims suppliers are
within the categories Motor and Building. These
categories in particular hold a great potential for
more circular thinking in terms of how claims
are managed. Even small improvements in the
way individual claims are handled can have a
significant impact if applied across the category
over the course of a year.
Motor claims remains the area where Tryg is
seeing a real impact from its efforts. Established
practices for repairing windshields, car
bumpers, rims, car body parts and headlights
are now showing good results.
Additionally, the auto repair shops that Tryg
collaborates with are increasingly using recycled
spare parts to repair the cars. With regards to its
customers, Tryg’s insurance conditions describe
how Tryg will attempt to resolve claims by
repairing instead of replacing with new. With
suppliers, specific KPIs related to repair rates
are increasingly included in contracts.
In Norway, Tryg has entered into a partnership
with one of the largest chains of car repair shops
on the use of reused car parts, such as doors
and bumpers, even on cars less than 5 years old,
which is normally the lower boundary. The
reused spare part is never older than the rest of
the car and customers' warranties remain intact.
This expands the scope of potential repairs and
thus increases the potential for working with
resource efficiency.
Tryg also focuses on the construction sector
and on how to promote and improve claims
handling within building claims through smarter
repair techniques and preservation. Among the
initiatives are repairs of doors and windows,
spot repairs of parquet floor and preservation of
foundation walls or building materials such as
concrete or tiles.
To expand the number of initiatives, the
different business areas across Denmark,
Norway and Sweden regularly conduct pilot
projects to assess the applicability, feasibility,
impact, and data foundation of a given
technique or process.
This can also include initiatives that do not
directly feed into the specific targets but which
support the agenda of limiting the unnecessary
waste of resources. In Sweden, for example,
Tryg works with a business partner to ensure
that products from claims handling that are still
functioning can be reused and resold instead of
being scrapped.
Responsibility and profitability go hand in hand
Our efforts to push for more conscious resource
use in the claims handling process are a good
example of how responsibility and profitability
can go hand in hand. Used spare parts and
repairs are a cost-effective approach to
resolving claims, and never at the expense of
safety or quality. As it is still early days, supply
chains are not always fully established and the
attempt to find used spare parts can be a more
complex task for the claims handlers than
merely replacing with new. Close collaboration
and knowledge sharing as well as clear
expectations are therefore crucial in Tryg's
ongoing supplier dialogues.
Ensuring internal progress
Monthly internal reports on current initiatives
are shared with relevant stakeholders to
continuously build capacity and share best
practices across markets and product groups.
Quarterly reports on progress and potential
challenges or focus areas are shared with the
Executive Board and the Sustainability &
ESG Board.
The Procurement and Claims departments in
Tryg gather all initiatives and new ideas on a
common platform, the Sustainability Initiative
Platform. It includes a gatekeeper model for
qualifying new initiatives and projects that can
be implemented.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 89
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Key actions taken in the reporting year
The list on the rights hand side outlines key
initiatives that have an impact on the amount of
new materials used in claims handling and
initiatives for reducing emissions related to
transport. The initiatives feed into the 2027
target on resource use. The initiatives have for
the most part been effectuated for some years
and also feed into the 2024 target of avoiding
20,000 – 25,000 tonnes of CO2e emissions.
In total, 27,825 tonnes CO2e emissions were
avoided in 2024 as a result of new and more
efficient ways of handling claims.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 90
Building
• Conservation of building foundations &
building materials
• Partial repairs of parquet floors
• Reuse of tiles
• Reduce the use of building materials
• Multiseal
• Smart-repair of pipes
Content
• Repairs of phone screens
• Motor
• Repairs of headlights
• Repairs of rims
• Repairs of plastic car bumpers
• Repairs of car body parts
• SMART-repair
• Repairs of caravans
• Repairs of windshields
• Used spare parts
Reduced transport need
• Reduction of transport related to inspection
activities
• Remote monitoring of building claims
• Online veterinarian consultations (FirstVet)
• Online psychological help
• Online medical consultations
• Electric rental cars
• Paint in-house
• Photo inspection
• Use of biofuels in marine services
• Road assistance by phone-fix service
Avoided emissions
In the 2024 strategy period, Tryg has
worked with a target for avoided
emissions. The scope of this is limited
to the specific projects listed above. As
such, the scope does not cover all
claims handling activities. Going
forward towards 2027, new targets
related to CO2e emission reductions
and reductions in the use of new
material are defined and aligned with
the ESRS E5 standard to guide the
claims handling process.
-
Targets
Use of new materials
To track the effectiveness of its strategic focus
on reducing the use of new materials in the
claims handling process, Tryg has set a strategic
intensity target to reduce the use of new
material per claim by 10% by 2027. The target is
not mandatory by law. No interim targets have
been defined.
The target concerns resource inflows, i.e. the
materials used across all claims categories. With
the overarching objective of reducing the
amount of new materials used in claims
handling, the target relates to the increased use
of circular materials or repair techniques and
the minimisation of primary raw material use. As
such, it does not address circular product
design, sustainable sourcing, waste
management or other matters related to
resource use and circular economy.
The target is based on data from claims handling
systems, specifically the quantity of materials
used per claim case, as well as data from
partners, such as material weight factors. The
target is not based on conclusive evidence.
Methodologies used in the reporting of new
material use are based on the data foundation
from the claims handling systems as well as
data from suppliers and partners. No external
stakeholders have been involved in setting the
target.
The target is part of Tryg’s 2027 strategy. The
baseline will be calculated based on 2024 data
for number of claims and amount of material
used. Progress on target will be reported for the
first time in the 2025 Annual Report.
Sustainable spend
As a measure for monitoring the extent of
repairs and reused material across all claims,
Tryg measures the share of spend used for
these initiatives.
The 2024 target was to reach an 80% increase
compared to base year 2020. The evaluation
and classification of sustainable spend is based
on the performance of the repair and reuse
initiatives effectuated across Tryg’s business
areas and markets. Included in the target is also
spend used on emission-saving initiatives
such as online or phone solutions.
In 2024, the share of spend classified as
sustainable was 47% compared to base year
2020.
Due to maturity and more sophisticated and
accurate methodologies for calculating the
share of spend, Tryg updated the methodology
in 2023, as described in the 2023 Annual
Report. The updated methodology is perceived
as more conservative but more accurate. As a
result, Tryg did not reach its 2024 target of 80%.
The share of spend classified for e.g. repair and
reuse initiatives in 2024 was 47%. This is the last
year of reporting on sustainable spend, as the
target is not included in the 2027 strategy.
Avoided emissions
During the 2024 strategy period, Tryg worked
with a target to measure the avoided CO2e
emissions from its claims handling initiatives.
The target measures the CO2e emissions that
are avoided as a result of repairing instead of
replacing, the use of recycled parts and
materials and from reducing transportation
needs by offering smarter online solutions, such
as online medical support or road assistance by
phone.
Through these initiatives, Tryg’s absolute target
was to avoid 20,000 – 25,000 tonnes of CO2e
emissions by 2024. In the first year of reporting
on the target, in 2021, 13,600 tonnes of CO2e
emissions were avoided from claims handling.
Incorporated into the target was a commitment
to continue working to identify more
opportunities for avoiding CO2e emissions in
Tryg’s claims handling processes. While not
based on conclusive evidence, it aims to
quantify the climate impact of changing existing
practices. Internal stakeholders across
procurement and claims are continuously
involved in ensuring progress on the target and
in identifying focus areas.
The calculation of avoided CO2e emissions is
based on Life-cycle assessment (LCA)
principles. From a life cycle perspective, the
CO2e emissions from a baseline or conventional
claims handling process are compared to an
alternative sustainable claims handling process.
In 2024, Tryg reached a level of 27,825 tonnes
avoided CO2e emissions from the claims
handling initiatives, which is well beyond the
defined target. 2024 is the last year of reporting
on avoided CO2e emissions, as going forward
the target is replaced by the targets focusing on
CO2e intensity and use of new materials per
claim.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 91
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Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 92
Avoided emissions from claims handling projects
Unit
2020
2023
2024
Avoided emissions from claims handling projects
Motor
tCO2e
10954
20,106
24,625
Health & Pet
tCO2e
155
300
331
Building
tCO2e
0
475
1,035
Content
tCO2e
383.3
327
1,834
Total
tCO2e
11,493
21,208
n
27,825
Sustainable Spend - volume adjusted results
%
0
29 n
47
Limited assurance in 2023
n
Accounting principles
Claims handling: Claims handling covers both private and commercial claims. The CO2e emissions
reduction effect is based on Life-cycle assessment (LCA) principles. From a life cycle perspective,
the CO2e emissions from a baseline/conventional claims handling approach are compared to an
alternative sustainable claims handling process. The calculations are mainly performed by the use
of LCA software, including the environmental databases ecoinvent and exiobase as well as other
relevant sources, such as DEFRA (Department for Environment, Food and Rural Affairs) and EPD
(Environmental Product Declaration).
Sustainable spend: Sustainable spend is limited to supplier payments. Sustainable spend refers to
Tryg’s claims payments that can be documented as payments to more sustainable solutions and are
referred to as more sustainable claims handling.
.
-
Internal waste management implemented
To address resource outflow in its own
operations, Tryg manages its internal waste in
accordance with the waste hierarchy defined by
the EU, which means that waste is sorted for
four purposes: Preparing for reuse, recycling,
other utilisation and disposal.
One example of reuse is donations of used
office furniture such as desks, cabinets and
bookcases to charities.
To further enable waste sorting and compliance
with the waste hierarchy and EU Waste
legislation, waste handling equipment has been
installed at all Danish locations.
Across sites in Sweden and Norway, local
landlords are responsible for making sure that
the optimal solution for sorting and reusing
waste is in place. This is progressing, and Tryg
proactively contributes to finding the best
solution for every location.
As a result of continual replacement, large
amounts of IT equipment are regularly disposed
of. Here, Tryg places demands on the supplier
who handles the electronic waste to comply
with the EU Directive on Waste from Electrical
and Electronic Equipment (WEEE) and the
Restriction of Hazardous Substances (RoHS)
Directive, with the result that the majority of the
usable IT equipment is sold on or recycled.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 93
Resource use and circular economy
ESRS ID
Units
2024
Resource inflows
E5-4_02 Overall total weight of products and technical and biological materials used during the reporting period
Tonnes
5,759
E5-4_04 The absolute weight of secondary reused or recycled components, secondary intermediary products and
secondary materials used to manufacture the undertaking’s products and services (including packaging)
Tonnes
457
Resource outflows
E5-5_07 Total waste generated
Tonnes
461
E5-5_08 Waste diverted from disposal, breakdown by hazardous waste in recovery operation types
Tonnes
0.28
E5-5_08 Waste diverted from disposal, breakdown by non-hazardous waste in recovery operation types
Tonnes
233
E5-5_09 Waste directed to disposal, breakdown by hazardous waste in treatment type
Tonnes
0
E5-5_09 Waste directed to disposal, breakdown by non-hazardous waste in treatment type
Tonnes
227
E5-5_10 Non-recycled waste
Tonnes
0
E5-5_11 Percentage of non-recycled waste
%
0
E5-5_15 Total amount of hazardous waste
Tonnes
0.28
Accounting principles
E5-4_02 Overall total weight of products and technical and biological materials used during the reporting period: Tryg has no critical raw materials or
rare earths according to the definition in the European Critical Raw Materials Act, which maintains a list of Critical and strategic raw material (CRM).
This means that Resource inflows are therefore limited to the claims handling process. The main resource-intensive business areas are motor and
building claims. In 2024, Tryg introduced reporting on Motor, where data is available. Figures for Resource inflow from building claims will be included
as of 2025. Data is collected based on different systems in Denmark, Norway and Sweden. All systems collect information on the use of spare parts
(in tonnes), and a suitable weight factor is derived from the system named Märkesdemo .
E5-4_04 The absolute weight of secondary reused or recycled components, secondary intermediary products and secondary
materials used to manufacture the undertaking’s products and services (including packaging)
Identifying and reporting on reused spare parts are based on the same method as the reporting of new spare parts, but using categories regarding
reuse and recycle.
E5-5_07 Total Waste generated: Waste is generated in own operations and based on invoices from waste management supplier.
E5-5_08 - E5-5_09 Recovery operation and treatment type: The waste is diverted from disposal and sorted in respectively hazardous and non-
hazardous waste according to the waste categories, recovery operation types and treatment types, which includes; incineration, landfill and other
disposal operations.
E5-5_10 Non-recycled waste: This is disposal waste that cannot be recycled and therefore is sent to landfill.
E5-5_11 Percentage of non-recycled waste: The percentage of non-recycled waste of the total amount of wasted generated.
Tryg is aiming to have no non-recycled waste.
E5-5_15 Total amount of hazardous waste: This consist of various chemical substances, fluorescent tubes, batteries and similar materials
used in the operation of facilities. Tryg continually tries to minimise this type of waste fraction.
E5-5_16 Total amount of radioactive waste: Tryg has no radioactive waste.
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EU Taxonomy-aligned insurance
and investment activities
Enabling our customers to adapt to
climate change
The section constitutes Tryg’s reporting
pursuant to Article 8 of Regulation (EU)
2020/852 on the EU Taxonomy.
Non-life insurance activities
Taxonomy-alignment ratio
The Taxonomy-alignment ratio represents the
portion of Tryg’s insurance premiums that meet
the technical screening criteria outlined below,
including substantial contributions to climate
change adaptation, doing no significant harm to
climate change mitigation, and compliance with
minimum social safeguards.
The alignment ratio reported in 2023 was based
on Tryg’s best understanding of the legislative
requirements and associated guidance at the
time. However, relevant guidance for reporting
20241 specifies that only the portion of the
insurance premium related to the coverage of
climate-related perils should be used to
calculate Taxonomy eligibility and alignment.
Since Tryg primarily offers multi-risk products,
the share of coverage for climate-related perils
is now calculated proportionally relative to the
gross premiums written. Consequently, this new
interpretation and calculation method has
significantly reduced the alignment ratio in 2024
compared to 2023. As of 31 December
2024, DKK 917,486,607, corresponding to 2,6%
of total insurance activities, are aligned with the
EU Taxonomy. For comparison, Tryg reported
9.8% in 2023.
It is Tryg’s understanding that A.1.2 is related to
premium stemming from incoming reinsurance.
As Tryg does not offer reinsurance products or
services, A.1.2 and A.1.2.1 are considered
irrelevant for Tryg.
Strategy 2027 and target to support customers
adapting to climate change
Given another year of severe weather events
with significant human, material and economic
impacts, it is increasingly crucial for Tryg to offer
relevant products and measures to help its
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 94
EU Taxonomy - Insurance activities
Substantial contribution to climate change
adaptation
DNSH (Do No Significant Harm)
Economic activities
Absolute
premiums
Proprotion of
premiums
Proportion of
premiums
Climate change
mitigation
Water and
marine
resources
Circular
economy
Pollution
Biodiversity
and
ecosystems
Minimum
safeguards
DKK
%
%
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
2024
2023
A.1 Non-life insurance and reinsurance underwriting
Taxonomy-aligned activities (environmentally sustainable)
917,486,607
2,6
9,8
Y
Y
A.1.1 Of which reinsured
42,358,242
0,1
0,6
Y
Y
A.1.2. Of which stemming from reinsurance activity a)
-
-
-
-
-
A.1.2.1 Of which reinsured (retrocession) a)
-
-
-
-
-
A.2 Non-life insurance and reinsurance underwriting
Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
0
0.0
83
B. Non-life insurance and reinsurance underwriting
Taxonomy-non-eligible activities
34,095,250,522
97.4
7
Multiservice suppliers - transport reduction
0
0
0
Total (A.1 + A.2 + B)
35,012,737,129
100
100
a) Not relevant for products in scope for 2024.
1 The draft Commission notice on the interpretation and implementation of certain legal provisions of the Disclosures Delegated Act under Article 8 of the EU Taxonomy Regulation on the reporting
of Taxonomy-eligible and Taxonomy-aligned economic activities and assets (third Commission Notice).
-
customers adapt to climate change. As a non-
life insurance company, Tryg plays a pivotal role
in society by helping to assess and manage risks
to life, health and assets, including those related
to weather events. This capability allows Tryg to
contribute to the environmental objective of
climate change adaptation by aligning insurance
products with the EU taxonomy.
It is essential for Tryg to ensure that products
aimed at helping customers adapt to climate
change also deliver tangible value to the
customers. Thus, the benefits, including
incentives for prevention, should be clearly
communicated to and actively utilised by
customers – so more of Tryg’s customers can
prevent climate-related damage and have
peace-of-mind in relation to their insurance at a
time when climate change continues to bring
new challenges.
Tryg not only focuses on what creates peace-of-
mind here and now; Tryg also focuses on
ensuring peace-of-mind in 10, 20, and 30 years'
time. By thinking long-term, Tryg can better
prepare its customers for the changes that will
come and create value for both customers and
the communities they are a part of. The EU
Taxonomy is therefore seen as a tool for future-
proofing Tryg’s business and reducing the risk of
losses by enabling and protecting customers
against climate-related risks while also taking
changing weather patterns into account in price
models.
Nature, objectives and evolution
of Taxonomy-aligned economic
activities
According to the Taxonomy Regulation, non-life
insurance is classified as an enabling economic
activity that can significantly contribute to EU’s
environmental objective of climate change
adaptation, provided it directly supports other
activities in making substantial contributions to
this objective. Tryg understands that climate
change adaptation is the only one of the EU’s six
environmental objectives where non-life
insurance can make a substantial contribution.
The technical screening criteria emphasise how
non-life insurance products can play a crucial
role in climate change adaptation, as detailed
below.
This means that the insurance policies have
been thoroughly scrutinised to ensure that
customers are covered against relevant climate-
related risks, such as storms, wildfires and
cloudbursts, and that the policies contain an
incentive to prevent climate-related damage.
In 2024, Tryg has focused on aligning more
products with the EU Taxonomy's technical
screening criteria. Tryg Denmark has continued
to enhance its house and building insurance
products and introduced a new climate
coverage as an add-on to the already aligned
building insurance product. This covers
additional costs for installing measures to
prevent new climate-related damage and for
repairing damage using eco-certified and
recycled materials. Additionally, a systematic
approach for sending text messages to private
customers with preventative measures ahead of
extreme weather was developed.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 95
Voluntary information:
Tryg's strategic ambitions towards 2027
As part of Tryg’s new strategy towards 2027, launched in December 2024, Tryg has set a target
for the total number of taxonomy-aligned products – measured in product categories*. Each of
Tryg’s six business areas in Denmark, Norway and Sweden has contributed to the target and
committed to aligning all their products in scope for climate adaptation – whether new or re-
designed during the strategy period - with the criteria set forth in the EU Taxonomy. Tryg’s 2027
target is that a total of 30 product categories will be Taxonomy-aligned by 2027, corresponding to
approximately 60% of all product categories in scope for climate adaptation.
The aim of the target is not merely Taxonomy alignment. Tryg aims to foster innovative thinking
around climate change and ensure that customers know and understand the importance of
climate adaptation and prevention through relevant communication measures, new partnerships
and dialogue with customers – both before and after customers experience extreme weather
events and resulting claims.
Read more about Tryg’s 2027 strategy on page 65.
*Since the assessment of a product's compliance with the EU's five technical screening criteria is conducted
holistically and mainly at the product level, Tryg sets its targets and measures them within product categories.
A product category is defined as one or more insurance products covering the same object, such as a house.
Tryg counts the number of product categories per country, meaning, for example, the 'House/Villa' category is
counted three times because all three countries offer this insurance category.
-
Trygg-Hansa in Sweden has aligned products for
business and boat, while Tryg Norway has
aligned a range of products, such as cabin,
contents, car, moped, motorcycle, tractor,
snowmobile, motorhome and boat.
Modelling and pricing climate risks
In Tryg’s risk modelling, climate risks are
assessed separately from other risks. The most
relevant climate-related peril, defined as one or
more perils with the most significant impact on
claims, is integrated into the products. To
evaluate the impact of climate change on
pricing and future claims, Tryg uses historical
internal data along with external weather
sources and climate projections based on the
IPCC’s RCP scenarios. Tryg is committed to
continuously updating its data and techniques
to maintain a state-of-the-art standard. This
enables Tryg to set more accurate premiums
that also account for future changes in climate
and weather patterns.
Product design and distribution
For products added in 2024, Tryg continues to
ensure that each Taxonomy-aligned product
includes a risk-based incentive for preventative
actions to encourage customers to reduce the
risk of damage following extreme weather-
related events. In the Nordic region, the
changing climate and weather patterns produce
more water.
Customers with Taxonomy-aligned insurance
products are offered a reduced premium or can
avoid the excess if they install specific devices
that prevent weather-related claims. For house
or building products this can for example be
installing a backflow prevention valve or storing
contents on elevated levels in basements. For
motor- or boat-related products, customers are
urged to store the assets indoors, which can
lead to discounted premiums or avoidance of
the excess.
Tryg regularly communicates to customers
about the importance of prevention measures
and the impact that preventing climate-related
damage can have on their insurance coverage.
When a cloudburst is approaching, Tryg sends
text messages to customers to notify and guide
them about relevant preventive actions.
Through data agreements with local suppliers,
Tryg is alerted when the weather forecast
predicts cloudbursts or storms and can forward
this to customers together with a reminder and
advice on how to best safeguard their
belongings. The alerts focus on local warnings
and are as such targeted towards the customers
at risk.
As part of the strategy towards 2027, Tryg will
continuously work to ensure that customers are
informed about relevant climate-related risks
and the benefits of prevention – enhancing
knowledge and understanding of the
importance of climate adaptation and enabling
customers to take relevant action.
Climate-related cover
To ensure that aligned products meet
customers’ needs and demands for climate-
related coverage, Tryg has reviewed the relevant
climate-related perils for the products targeted
for alignment. The analyses were based on an
evaluation of climate-related damage covered
by Tryg or other relevant insurance pools, such
as Naturskadeordningerne in Denmark and the
Norwegian Naturskadepool, as well as an
assessment of customers’ actual and stated
needs and concerns in relation to climate-
related risks.
These analyses included relevant claims data,
climate change risk scenarios, interviews with
claims handlers and sales departments, and
customer surveys. To ensure Tryg can also meet
customers’ future needs and demands, relevant
customer insights will be taken into
consideration.
Sharing climate-related claims data
Tryg’s commitment to claims prevention
involves continuously identifying effective
measures to assist both customers and public
authorities in planning and protecting assets or
activities against weather-related damage.
Tryg is dedicated to enhancing data quality to
provide authorities with better tools for
identifying risks and vulnerabilities, thereby
improving decision-making in planning and
adaptation efforts. Tryg has prepared to share
such claims data with public authorities in
Norway, making it available for analytical
research. Additionally, Tryg Denmark and Trygg-
Hansa will, upon request and free of charge,
share claims data with public authorities in
Denmark and Sweden for analytical research
purposes.
High and fair standards for claims and service
Claims handlers regularly go through an internal
training programme that enables them to
always handle claims in accordance with
applicable laws, including after large-scale
natural disasters. In all countries, Tryg has
contingency plans in place for both Private and
Commercial customers, that are ready to be
activated in case of a large-scale claims event
related to different climate risks.
Customer satisfaction – including within claims
handling - remains one of the key parameters
for Tryg. It is noteworthy to see customer
satisfaction remaining high despite years with
numerous weather events affecting Tryg's
customers.
Do no significant harm
The taxonomy-aligned ratio must exclude
premium income related to the extraction,
storage, transport or manufacture of fossil fuels
(coal, oil and gas), as well as the insurance of
vehicles, property or other assets dedicated to
these purposes. Tryg has utilised relevant NACE
codes to identify these activities e.g. related to
mining and quarrying or extraction. Each
commercial business area has been responsible
for identifying theses premiums in their systems
based on the NACE codes in scope. Premiums
from customers active in these activities have
been excluded from the numerator in the
calculation of its Taxonomy-aligned ratio.
Comply with minimum social safeguards
The minimum social safeguards ensure
companies comply with international standards
for human rights, corruption, taxation and fair
competition.
For each of these, Tryg has established
processes to ensure strong governance,
awareness and understanding, proper
mitigation actions and monitoring of the
potential impacts outlined below:
Human and labour rights: Tryg follows the UN
Guiding Principles on Business and Human
Rights and the OECD Guidelines for
Multinational Enterprises as described in its
Human and labour rights policy. This implies the
use of due diligence processes to continuously
identify, prevent and, if relevant, mitigate any
adverse human rights impact across its own
operations, suppliers and customers. Insights
are gathered from supplier and customer
screenings or from employee engagement
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 96
.
-
surveys to identify areas of improvement and
action.
Anti-corruption and bribery: Tryg has a strong,
three-line of defence governance set-up to
ensure and facilitate credibility, integrity and
independence in its operations. Internal and
external codes of conduct guide the overarching
principles, and employees receive annual
training. For business areas with a potentially
higher risk, annual risk assessments are
performed together with applicable internal
training sessions.
Taxation: Tryg conducts and manages its tax
affairs in accordance with its Tryg Tax Strategy,
that is closely aligned with Tryg’s core values
and business strategy. Tryg complies with the
taxation requirements of the OECD guidelines,
through a Tax governance and Tax risk
management set-up. Read more in the Tax
overview on page 34.
Fair competition: Through regular internal
training, Tryg seeks to continuously promote
employees’ understanding and awareness of
competition laws. Senior management also
receives training in necessary tools to identify
and handle competition law issues in their day-
to-day work. Tryg monitors inquiries, notices
and decisions from relevant national authorities,
including competition authorities across the
Nordics.
During 2024, there have been no convictions or
violations concerning any of the above themes.
Contextual information about
the alignment calculation method
and data
Calculation of Taxonomy-aligned premiums
Based on guidance from the EU Commission,
Tryg has updated its methodology for
calculating Taxonomy-aligned premiums as of
2024. Whereas, previously, the full gross
premiums written from a Taxonomy-aligned
product were included for alignment, the new
guidance prescribes that only the portion of the
premium relating to climate-related hazards,
such as cloudbursts, storms, drought, floods
etc., should be included.
Different split methods are used, in line with
available guidance of the EU Taxonomy. Each of
these are aligned against Tryg's gross premium
written in order to ensure comparability.
If Tryg does not have the necessary data to
identify and document the climate-related
premium for a specific product, the premium is
reported as ‘non-eligible’.
Calculation of Taxonomy-eligible premiums
The updated methodology for calculating
alignment also impacts the calculation of
eligibility. Unlike previous years, only premiums
from lines of business explicitly including
climate-related cover are now counted in the
calculation of eligible premiums. If the climate-
related premium can be documented, either in
full or proportionately, it will be included for
eligibility. If not, the premium will be reported as
non-eligible. Due to limitations in extracting and
documenting specific climate-related covers
across all lines of business, the eligibility
premiums will only include already aligned
premiums for which Tryg has the necessary
data.
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 97
Turnover-based share of insurance premiums
and investment assets
97%
3%
Insurance premiums
Investment assets
-
Investment assets
Taxonomy-aligned investments
As the largest non-life insurance company in
Scandinavia, Tryg manages a large amount of
investment assets. Most of Tryg’s assets are
invested by external managers. At fund level,
Tryg seeks to select funds that are either SFDR
Article 8 or 9 whenever possible – or funds that
can demonstrate an equivalent level of ESG
integration (especially relevant for non-EU
funds). Other ESG features are also evaluated,
including Taxonomy alignment.
Assets for assessment
Economic activities concerning the total
investment assets of Tryg have been
categorised pursuant to the Climate Delegated
Act – including Annexes 1 and 2, as such
activities could be related to climate change
mitigation and/or climate change adaptation.
Tryg makes investments in different asset
classes, and a description of data and
calculation method is presented below.
Disclosures are based on available data
obtained from Sustainalytics for the purpose.
Covered Bonds:
EU taxonomy eligibility is evaluated using NACE
codes provided by the EU Taxonomy Compass.
Currently, Tryg does not have data available to
evaluate Taxonomy alignment, and eligible
exposures are considered non-aligned as a
precautionary assumption. Part of the holdings
are invested in green bonds, but Tryg only
considers a green bond Taxonomy-aligned if the
bond is considered eligible (in NACE code
screening). This is a precautionary assumption
until data quality is considered sufficient.
Real Estate:
Most of these asset class exposures are held
through funds, while a minor portion is held
directly. All exposures have been determined to
be fully Taxonomy-eligible. Fund reporting data
is used to calculate the relevant KPIs
(alignment). For directly held real estate,
Taxonomy alignment data is currently not
available and is assumed non-aligned in the
reporting.
Sovereign, supranational and agency bonds:
These assets are not included in the calculation
of the KPIs. Part of the holdings are invested in
green bonds but are also considered non-
aligned as a precautionary assumption until data
quality is considered sufficient.
Derivatives:
Holdings include primarily fixed income
derivatives. These assets are not included in the
calculation of the KPIs.
Other unlisted exposures:
The exposures include unlisted infrastructure
and private equity held through funds, and
directly held unlisted equity positions. If
available, fund reporting data is used to
calculate the relevant KPIs. For directly held
equity positions, Taxonomy alignment data is
currently not available.
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Total Taxonomy-alignment - Investment activities 2024
2024
%
DKK
The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at
funding, or are associated with Taxonomy-aligned economic activities relative to the value of total assets
covered by the KPI, with following weights for investments in undertakings per below:
Turnover-based:
Turnover-based:
0.66
388,700,897
Capital expenditures-based:
Capital expenditures-based:
0.66
389,229,077
Assets covered by the KPI relative to total investments of insurance or reinsurance undertakings (total AuM).
Excluding investments in sovereign entities.
Coverage ratio:
Coverage:
96.11
58,579,821,001
-
Additional complementary disclosures - investment assets
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Sustainability statement
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Breakdown of denominator of the KPI 2024
%
DKK
The percentage of derivatives relative to total assets covered by the KPI.
The value in monetary amounts of derivatives
0
0
The proportion of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of
Directive 2013/34/EU over total assets covered by the KPI.
Value of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive
2013/34/EU.
For non-financial undertakings:
For non-financial undertakings:
7.13
4,177,601,266
For financial undertakings:
For financial undertakings:
92.87
54,402,219,735
The proportion of exposures to financial and non-financial undertakings from non-EU countries not subject to
Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI.
Value of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a
and 29a of Directive 2013/34/EU.
For non-financial undertakings:
For non-financial undertakings:
3.9
2,284,288,473
For financial undertakings:
For financial undertakings:
13.71
8,031,054,444
The proportion of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of
Directive 2013/34/EU over total assets covered by the KPI.
Value of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive
2013/34/EU.
Non-financial undertakings:
Non-financial undertakings:
0
0
Financial undertakings:
Financial undertakings:
0
0
The proportion of exposures to other counterparties and assets over total assets covered by the KPI.
Value of exposures to other counterparties and assets over total assets covered by the KPI.
0
0
The proportion of the insurance or reinsurance undertaking’s investments other than investments held in
respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at
funding, or are associated with, Taxonomy-aligned economic activities.
Value of the insurance or reinsurance undertaking’s investments other than investments held in respect of life
insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are
associated with, Taxonomy-aligned economic activities.
0.65
378,109,317
The value of all the investments that are funding economic activities that are not Taxonomy-eligible relative to
the value of total assets covered by the KPI.
Value of all the investments that are funding economic activities that are not Taxonomy-eligible.
92.87
54,400,839,904
The value of all the investments that are funding Taxonomy-eligible economic activities, but not Taxonomy-
aligned relative to the value of total assets covered by the KPI.
Value of all the investments that are funding Taxonomy-eligible economic activities, but not Taxonomy-aligned
relative to the value of total assets covered by the KPI.
6.47
3,790,280,199
-
Additional complementary disclosures - investment assets
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Financial results
Governance
Sustainability statement
Financial statements
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Breakdown of numerator of the KPI 2024
%
DKK
The proportion of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles
19a and 29a of Directive 2013/34/EU over total assets covered by the KPI.
Value of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a
and 29a of Directive 2013/34/EU.
For non-financial undertakings:
For non-financial undertakings:
Turnover-based:
Turnover-based:
0
0
Capital expenditures-based:
Capital expenditures-based:
0
0
For financial undertakings:
For financial undertakings:
Turnover-based:
Turnover-based:
0
0
Capital expenditures-based:
Capital expenditures-based:
0
0
The proportion of the insurance or reinsurance undertaking’s investments other than investments held in respect
of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding,
or are associated with, Taxonomy-aligned.
Value of insurance or reinsurance undertaking’s investments other than investments held in respect of life
insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are
associated with, Taxonomy-aligned.
Turnover-based:
Turnover-based:
0.65
378,109,317
Capital expenditure-based:
Capital expenditure-based:
0.65
378,637,497
The proportion of Taxonomy-aligned exposures to other counterparties and assets in over total assets covered
by the KPI.
Value of Taxonomy-aligned exposures to other counterparties and assets in over total assets covered by the KPI.
Turnover-based:
Turnover-based:
0
0
Capital expenditure-based:
Capital expenditure-based:
0
0
-
Breakdown of the numerator of the KPI per environmental objective
Nuclear and fossil gas related activities (Appendix XII)
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Sustainability statement
Financial statements
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Breakdown of the numerator of the KPI per environmental objective
Taxonomy-aligned activities 2024
Provided 'do-no-significant-harm' (DNSH) and social safeguards positive assessment
%
%
(1) Climate change
mitigation
Turnover:
Transitional activities:
0.66
0.59
0.59
CapEx:
Enabling activities:
0.66
0.66
0.66
(2) Climate change
adaptation
Turnover:
Transitional activities:
0.59
-
-
CapEx:
Enabling activities:
0.59
0.59
0.59
Contextual information
Tryg's investment portfolio consists of Nordic covered bonds and a minor share of real
estate. I.e. there is no exposure to specific nuclear and fossil gas related activities.
Nuclear and fossil gas related activities (Appendix XII)
Nuclear energy related activities 2024
Nuclear energy related activities
1
The undertaking carries out, funds or has exposures to research, development,
demonstration and deployment of innovative electricity generation facilities that
produce energy from nuclear processes with minimal waste from the fuel cycle.
NO
2
The undertaking carries out, funds or has exposures to construction and safe
operation of new nuclear installations to produce electricity or process
heat,including for the purposes of district heating or industrial processes such as
hydrogen production, as well as their safety upgrades, using best available
technologies
NO
3
The undertaking carries out, funds or has exposures to safe operation of existing
nuclear installations that produce electricity or process heat, including for the
purposes of district heating or industrial processes such as hydrogen production
from nuclear energy, as well as their safety upgrades.
NO
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation
of electricity generation facilities that produce electricity using fossil gaseous
fuels.
NO
5
The undertaking carries out, funds or has exposures to construction,
refurbishment, and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels.
NO
6
The undertaking carries out, funds or has exposures to construction,
refurbishment and operation of heat generation facilities that produce heat/cool
using fossil gaseous fuels.
NO
-
Social
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Sustainability statement
Financial statements
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S1 Own workforce
S4 Consumers and end-users
-
Material impacts, risks and
opportunities
Tryg can directly impact its employees through
its established company culture, benefits,
policies and practices. As a Scandinavian
insurance company, employees are high-skilled
office workers, primarily located in Denmark,
Norway and Sweden. Employee well-being and
engagement is critical for Tryg to deliver on its
strategy and targets.
Negative impacts
Potential negative impacts are identified in
terms of gender pay inequality and harassment.
As described on page 113, gender pay inequality
exists. Tryg recognises this, but also recognises
that it is a structural issue that requires a variety
of initiatives to address the many underlying
aspects.
Tryg has for many years been dedicated to
creating a workplace with a focus on diversity,
equity and inclusion, including establishing the
data foundation and understanding the
mechanisms behind gender pay equality. In
previous years, a number of initiatives have
been launched to help push towards more equal
representation and pay between genders.
Harassment is identified as a potential negative
impact that can occur if proper mitigation
actions are not in place. Tryg has a no tolerance
discrimination and harassment policy, and
encourages employees to raise concerns if they
experience anything related to this.
Positive impact
Tryg can positively impact employees by
creating a company culture offering purposeful
and flexible work, allowing for leisure time, and
ensuring proper influence in their day-to-day
work. This is central to retaining and attracting
employees, and for enabling them to perform at
their full potential.
Fostering and cultivating a diverse, equal and
inclusive culture also positively impacts
employees in the sense that they can be their
true self at work. It creates employee
engagement and improved collaboration as well
as more diverse thinking, which benefits not
only the organisation but also customers.
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Financial statements
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Own workforce
-
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Financial results
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Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 104
a) Gender as specified by the employees themselves.
Accounting principles
S1-6_02 Number of employees: The headcount represents the number of employees with
employment status ‘active’. It includes the employment types; permanent, temporary and
non-guaranteed hourly paid employees. The employees are divided by gender and
country. All figures are an average of headcounts during each month of the reporting
period, with the figures determined at the end of each month.
S1-6_02 Total gender distribution headcount and total gender distribution ratio: Total
headcounts are split into male, female, not reported and others in the organisation, and
also reported as respective ratios. Gender is specified by the employees themselves.
S1-6_05 Country distribution
The total headcount split into the main countries of operation: Denmark, Norway, Sweden
and others. Others is primarily represented by Tryg Trade, which is not included in the
other social figures.
A thin red line indicates the mandatory tables as defined by the ESRS.
S1-7_02 Non-employee workers in the own workforce (headcount): Tryg’s non-
employees are people not employed or salaried by Tryg. The global employment type
‘External’ is used for registering non-employee workers.
Employment types and gender (headcount)
2024
Female
Male
Othera)
Not disclosed
Total
Number of employees
3,499
4,087
0
1
7,587
Number of permanent employees
3,102
3,648
0
1
6,751
Number of temporary employees
74
89
0
0
163
Number of non-guaranteed hours employees
323
350
0
0
673
Social data
ESRS ID
Unit
2024
2023
2019
Characteristics of the undertaking’s employees
(headcount)
S1-6_02 Number of employees
Number
7,587
7,943
n
S1-6_02
Total gender distribution headcount
Male
4,087
4,350
n
Female
3,499
3,591
n
Other
0
Not
reported
1
2
n
Total gender distribution ratio
% male
54
55
n
54
% female
46
45
n
46
% other
0
% not
reported
0
0
n
0
S1-6_05 Country distribution: Denmark
Number
3,743
S1-6_05 Country distribution: Norway
Number
1,492
S1-6_05 Country distribution: Sweden
Number
2,352
Characteristics of non-employee workers in the
undertaking’s own workforce
S1-7_02 Non-employee workers in the own
workforce (headcount)
Number
2,804
Limited assurance in 2023
n
-
Policies related to own workforce
Tryg is committed to providing a healthy and
engaging working environment. Securing the
well-being of employees is critical for creating
an attractive workplace and for being able to
retain the full pool of talent. Under the tagline
‘Tryg as you are’, Tryg strives for a company
culture where everyone feels equally included. A
diverse pool of employees and managers with
different backgrounds, skills and experiences
that reflect the society we live in is assumed to
better understand and match the changing
needs of Tryg’s diverse customers.
Four policies guide Tryg’s work around
mitigating potential negative impacts and
driving positive impacts towards ensuring an
inclusive, engaging and attractive workplace.
Each of them are reviewed annually and
ultimately approved by the Supervisory Board
and hereafter published on tryg.com.
•
Sustainability policy
•
Human and labour rights policy
•
Tryg’s Code of Conduct (CoC)
•
Policy and target for the
underrepresented gender
Sustainability policy
Tryg’s Sustainability policy guides the processes
for fulfilling the sustainability strategy and the
legal requirements as well as for adhering to
public commitments such as the UN Global
Compact and the UN Sustainable Development
Goals.
Specifically for Tryg's own employees, the policy
outlines Tryg’s commitment to respecting
internationally recognised human rights and the
core conventions of the International Labour
Organization (ILO). It guides the overall
commitment to create a company culture
where everyone is treated with equal dignity and
respect and feels equally included to ensure that
all employees are comfortable being their true
self at work.
Human and labour rights policy
The Human and labour rights policy describes
Tryg’s commitment to respect all fundamental
human rights and decent working conditions.
Fundamental human rights means
internationally recognised human rights such as
the UN Convention on Economic, Social and
Cultural Rights from 1966, the UN Convention
on Civil and Political Rights from 1966 and the
ILO's core conventions on fundamental rights
and principles in working life. The commitment
covers human rights at large, and does not
specifically address trafficking, forced or child
labour.
Tryg recognises that it can potentially cause,
contribute or be linked to adverse impacts on
human and labour rights in its own operations,
through its products and services, customers
and business relations, and in the supply chain.
Tryg supports the UN Guiding Principles on
Business and Human Rights, and the OECD
Guidelines for Multinational Enterprises, which
means that it continuously works to identify,
prevent and mitigate risks of adverse impacts on
human and labour rights both internally in our
organisation and across the value chain. Due to
the limited exposure, there is no workplace
accident prevention policy or management
system in place.
Tryg’s Norwegian branch is subject to the
Norwegian Transparency Act.
Read Tryg's reporting according to the
Norwegian Transparency Act on page 62.
Tryg’s CoC
Tryg’s CoC addresses all the key issues with
which Tryg’s employees and other parties acting
on Tryg’s behalf must familiarise themselves
and comply with in their interactions with
customers, colleagues, competitors, suppliers
and other stakeholders.
It describes how Tryg expects everyone to,
for example:
•
Contribute to promoting equal opportunities
and safe working conditions for all
colleagues
•
Create a safe and pleasant working
environment where it is expected that
employees take action against behaviour
that may be experienced as offensive
•
Refrain from discrimination of employees
based on gender, age, disability, sexual
orientation, beliefs, religion, skin colour,
political views or national, social or ethnic
origin
•
Be aware of and try to reduce the
stereotypes and prejudices they may hold
about people different from themselves
•
Support shared responsibility to respect
human rights
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-
•
Be aware of and express concerns about
actual or suspected negative impacts on
human rights.
For managers it includes:
•
Acting as role models to uphold high moral
and ethical standards
•
Actively ensuring that their employees are
aware of Tryg’s rules and safeguards
•
Taking action against inappropriate
behaviour.
Any violations of the CoC may have
consequences for employment. Each year, all
employees complete CoC training and take a
test to confirm their understanding of its
principles. This is also part of the onboarding for
new employees.
Policy for the underrepresented gender
The Underrepresented gender policy applies to
all employees in Tryg Forsikring A/S and guides
the long-term objectives:
•
To promote awareness of and attention to
equal treatment and equal opportunities for
women and men.
•
To achieve representation for women at all
levels of management that reflects the
overall distribution of women and men
in Tryg.
•
To promote equal pay and equal
opportunities for women and men
performing the same job or a job of the
same value.
It ensures that Tryg delivers on its ambition of
creating a gender balance and equal
opportunities while complying with applicable
rules and legislation in this area.
HR is responsible for working with diversity and
inclusion as well as promoting the under-
represented gender through initiatives, goal
setting and continuously monitoring
developments; these actions are described
more in the sections below.
Processes for engaging with
own workforce
Engagement with and remedy for workforce
on human and labour rights
As part of Tryg’s commitment, Tryg
continuously assesses relevant data and
insights, such as employee or whistleblower
cases and employee engagement and pulse
surveys, as part of a due diligence to identify
actual and potential adverse impacts on human
and labour rights internally in the organisation.
Employee engagement survey
Tryg wants to ensure close alignment and
understanding of the motivation, engagement
and well-being of employees in order to be able
to create the best possible workplace. During
the year, Tryg conducts employee engagement
surveys to enable employee feedback and
dialogues around issues that can be improved.
The surveys are an important tool for Tryg to be
able to deliver on its financial results, but also
for individual employees to ensure they have the
best possible conditions for fulfilling their work.
The annual survey is conducted in the autumn,
and a shorter Pulse survey at mid-year. Once
completed, discussions and follow-up plans are
undertaken in the respective divisions, sections
and teams to ensure that the insights feed into
actions.
The HR function is responsible for conducting
the engagement survey and managers are
responsible for the follow-up.
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-
The survey is carried out by an external provider
and covers themes such as engagement,
motivation, management, team collaboration,
working conditions, payment and terms of
employment, training and development,
harassment and psychological working
environment. Questions specifically related to
employee exposure to harassment or offensive
behaviour ensure that employees have the
opportunity to speak up.
The result of the 2024 survey showed a still high
level of engagement at 77 out of a maximum of
100, above the Nordic industry benchmark of
75. The result is a decline from last year’s result
of 79, but a slight increase from the mid-year
Pulse survey in the spring. To remain
competitive and strong in a market that
offers more opportunities and challenges than
ever before, Tryg is transforming. Change is now
a fundamental condition and it is satisfying to
see that Tryg has maintained its high level of
engagement.
In addition to the survey, each employee has
performance appraisals two times a year in
order to ensure continuous engagement and
development.
Engagement with trade unions
To facilitate dialogues across trade unions and
employee organisations, Tryg has works and
communication committees at the regional and
Nordic level. The purpose of the committees is
to promote mutual understanding and
acceptance through open dialogue and
information exchange across the organisation.
The committees are composed of members of
the Executive Board, HR leadership and
employee and union representatives.
Among topics discussed in 2024 were:
Organisational changes, downsizing the
organisation, changes in terms and conditions
related to workforce reduction, changes to
employee-related policies, employee
engagement, career development and diversity
and inclusion initiatives.
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Financial statements
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Accounting principles
S1-6_11 Employees who have left undertaking: Total leavers include both voluntary and
involuntary leavers. The share of leavers within the year is calculated by dividing the number
of, respectively, voluntary and involuntary leavers by the average total headcount. The number
covers all employees, including temporary and non-guaranteed hourly paid employees.
S1-6_12 Employee turnover (headcount): The turnover rate is based on the total share of
employees leaving within the year divided by the average headcount during the financial year.
The number includes all employees, including temporary and non-guaranteed hourly paid
employees.
S1-8_01 Percentage of total employees covered by collective bargaining agreements:
Employees that have a collective bargaining agreement divided by headcount per country.
There is a total of seven different collective bargaining agreement across Tryg.
S1-8_06 Employees covered by workers' representatives: The total percentage of employees
covered by workers’ representatives split by country level due to different legislation across
Denmark, Norway and Sweden.
Social dialogue
2024
Collective Bargaining Coverage
Social dialogue
Coverage Rate
Employees – EEAa)
Workplace representation
(EEA only)
0-19%
20-39%
40-59%
60-79%
80-100%
Denmark
Norway
Sweden
Denmark
Norway
Sweden
Employee turnover [S1-6 ]
ESRS ID
Unit
2024
2023
2019
S1-6_11 Employee who have left undertaking
Number
1,730
1,405
n
529
S1-6_12 Employee turnover
%
22
18
n
12
Share of voluntary leavers (of turnover
rate)
%
12
11
n
7
Share of involuntary leavers (of
turnover rate)
%
8
7
n
5
Limited assurance in 2023
n
Collective bargaining coverage and social dialogue
ESRS ID
Unit
2024
S1-8_01 Percentage of total employees covered by collective bargaining
agreements
Collective bargaining agreements: Total
%
93
Collective bargaining agreements: Denmark
%
88
Collective bargaining agreements: Norway
%
94
Collective bargaining agreements: Sweden
%
100
S1-8_06 Employees covered by workers' representatives
Employees covered by workers' representatives: Denmark
%
88
Employees covered by workers' representatives: Norway
%
94
Employees covered by workers' representatives: Sweden
%
100
a) EEA: European Economic Area
-
Processes to remediate negative
impacts and channels for own
workforce to raise concerns
Employees in Tryg can at any time raise
concerns with their direct manager, staff
representative, occupational health and safety
representative, HR, or use Tryg’s anonymous
whistleblower mechanism. It is generally
encouraged and aimed for that any potential
discrepancies can be handled by the manager,
the managers’ manager, or through the help of
HR. Employees also have the option of involving
a workers’ representative.
Tryg’s CoC explicitly addresses how every
employee is expected to be aware of and report
any concerns about non-compliant conduct, or
actual or suspected lack of respect for human
and labour rights in its own business, among
partners or in the supply chain. This is
communicated via the intranet, employment
contract and the annual Code of Conduct
training.
Whistleblower hotline
Tryg’s whistleblower hotline is available for all
employees to report concerns relating to serious
matters directed against an employee, such as
discrimination, psychological violence,
harassment, sexual harassment or violation of
human rights.
Reports to the whistleblower scheme are
received and processed by the internal
whistleblower unit, consisting of the compliance
officer in Tryg A/S, the Legal Director of Tryg
Forsikring A/S and the Chairman of Tryg’s Audit
and Risk committee. Employees can choose to
be anonymous but are encouraged to identify
themselves, though with the reassurance that
their identity will remain confidential.
Whistleblowers are protected against reprisal
under the Whistleblower Act.
Taking action on material impacts
on own workforce
For the benefit, retention, engagement and
performance of employees, Tryg has an
important task in enabling employees to create
a purposeful and well-balanced work life.
Determining the right balance is an individual
responsibility, but Tryg can make relevant
conditions available to help facilitate the need
for flexibility, influence and purpose. Tryg works
across a range of initiatives to address material
impacts, risks and opportunities related to its
own workforce.
Allocation of resources
Tryg’s HR department has operational
responsibility for ensuring adequate measures
for employee-related impacts.
One person has dedicated responsibility for
advancing the diversity and inclusion agenda
across Tryg. In practice, the theme is integrated
across the organisation in ways of working,
ranging from considerations in the recruitment
process, composition of teams, to action plans
for addressing improvement points from the
engagement survey, and as such the
responsibility and resource use is decentralised
across the organisation.
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 108
Incidents of discrimination
ESRS ID
Unit
2024
2023
2019
S1-17_02 Number of incidents of discrimination
Number
11
14
Accounting principles
S1-17_02 Number of incidents of discrimination: Discrimination is a collective term for cases
of discrimination, bullying, sexual harassment and other types of harassment that can occur
at the workplace. Cases are reported to the HR department through leaders, union or
employee representatives or through the Whistleblower hotline.
-
Creating a diverse working place, and taking
actions to avoid discrimination and harassment
In 2024, Tryg continued its work with diversity,
equity and inclusion with both ongoing and new
initiatives. A dedicated site covering initiatives
within diversity, equity and inclusion has been
launched on Tryg’s intranet, so that employees
can easily find relevant information and tips on
how to get involved in the work.
Actions have also been taken to increase the
inclusiveness of office environments. The
largest offices in Denmark, Norway and Sweden
now have reflection rooms that can be utilised
for meditation and prayer. Denmark has also
implemented gender-neutral bathrooms.
As of 2024, employees in Tryg can identify
themselves as respectively female, male, or
other, or choose not to register in the internal
HR system, allowing people to freely choose
their preferred pronoun.
Internal employee resource groups to foster
understanding and inclusion
Understanding is key to creating an inclusive
workplace with a diverse representation of
ethnic origin, gender, age, sexual orientation,
health status, disabilities, political opinion,
religious beliefs or other facets or needs.
To facilitate this, Tryg has two internal resource
groups based in Denmark: the Rainbow group,
focusing on LGBTQ+ people, and the Sunflower
group, focusing on invisible disabilities.
Common for the two resource groups is a
dedicated purpose to share insights, create
engagement and ultimately a workplace where
everyone is comfortable being their true self.
Rainbow resource group
The Rainbow resource group consists both of
employees who identify as LGBTQ+ and also of
employees who act as allies, which is the exact
purpose. Creating an inclusive and safe working
environment requires an effort from everyone,
and allied colleagues play a crucial role in
supporting the agenda. The network meets
every quarter to discuss specific conditions or
barriers that LGBTQ+ persons might face in the
workplace. In connection with international
Pride month, the network is active in co-hosting
events together with Tryg to further shed light,
educate and involve colleagues in the agenda.
Strong feeling of inclusion among employees
The annual employee engagement survey
includes specific questions about inclusion. Like
last year, these questions received the highest
scores across all categories, which is a strong
signal that employees feel safe being their true
self at work and that they experience equal
opportunities for all.
Making the invisible visible
With the purpose of making the invisible visible,
Tryg supports the Hidden Disabilities
Programme, which is an international
programme with the purpose of ensuring
inclusion of people with invisible disabilities and
special needs.
An internal Tryg sunflower resource group
enables employees to engage in the area and
discuss how Tryg can create the most suitable
conditions for all. It can be difficult to fully
understand the challenges that colleagues with
invisible disabilities face, which can lead to
structures or behaviour that are not inclusive or
where people do not feel safe. The group can
help Tryg identify blind spots where further
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Annual Report 2024 | Tryg A/S | 109
91%
At Tryg, I can be who I am.
At Tryg, there are equal
opportunities for all,
regardless of gender,
identify, age, ethnicity,
sexual orientation,
religion, disability, etc.
My direct manager
makes sure everyone in
the team is heard and
feels included.
91% 90 %
-
action is needed in order to ensure optimal
conditions and well-being for all employees. The
group meets every other month.
Living with an invisible disability can make
everyday life demanding, and other people can
have difficulties understanding and
accommodating the challenges, as they cannot
be seen. Invisible disabilities can for example be
mental illness, chronic pain or anxiety, or visual,
voice or hearing impairment.
The programme is as an offer to Tryg’s
employees and customers. For customers, a
special hidden disabilities sunflower phone line
has been created to support customers with
special needs. All customer-facing employees
have been trained to answer ‘sunflower’ calls,
which might require more patience, extended
explanations or emotional support. Employees
and guests visiting Tryg’s Danish offices can
choose to wear the hidden disabilities sunflower
lanyard to signal that they might need help,
support, patience or more time.
Diversity in leadership
Tryg works actively to promote diversity across
management and in management teams. A
management team is considered diverse when it
has a minimum of two out of the following three
parameters: Gender, age and experience. The
latter means that Tryg distinguishes between
and values experience from a combination of
insurance and other fields. Based on this, Tryg
has a goal of continuously increasing the share
of diverse management groups across all layers
of management, which contributes to lifting the
gender balance in Tryg as a whole.
In 2024, Tryg continued its focus on identifying
and developing a strong pipeline of female
leaders and managers for the upper levels of
management where female representation is
lower. Among the initiatives in place to help
drive the change are a focus on unconscious
bias in talent reviews, equal conditions of
maternity/paternity leave for women, men and
co-parents, and quarterly reporting on gender
diversity across all management levels.
Tryg also promotes diversity through a
consistent focus in the recruitment process.
Among the initiatives are external candidate
searches for management positions in cases
where the level of diversity in the pool of
applicants is too limited. In Denmark, Tryg has a
stringent recruitment and approval process in
place when recruiting for leadership positions to
ensure a gender-balanced population. All
recruitment partners are trained in ensuring
inclusion and minimising bias in the recruitment
process.
To increase the share of women in management
positions, Tryg has defined targets for different
levels of management (see definitions in the
Accounting Principles). This also includes the
lower levels of management as a means for
building up the talent pool.
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Targets
Tryg has defined targets for increasing gender
diversity at management levels in its current and
coming strategy period.
Building on progress and initiatives established
in the previous strategy period, Tryg remains
committed to ensuring a minimum of 40%
gender representation across each
management levels. Currently, Tryg has 46%
women across all employees, and 43% women
across all levels of management.
The target of minimum 40% covers all levels of
the organisation with the primary focus on the
most senior roles as these have the lowest
female representation. By focusing on gender
proportionality across the different
management levels, the aspiration is to ensure
that the relevant and necessary measures are in
place to be able to advance female leaders
internally and achieve a gender balance on each
level of management.
Tryg follows market practice and defines gender
balance as when neither women nor men are
represented by less than 40%.
The table on page 112 shows the targets for
respectively 2024, 2030 and the 2026 target for
‘Other management levels’ that is mandatory by
Danish law.
‘Other management levels’ are defined
according to BEK no. 503 Section 143 (2) of
23/05/2024 as the two management levels
below the Supervisory Board. The first level is
the Executive Board and persons who are
organisationally on the same level as the
Executive Board. The second level is managers
with staff responsibilities reporting directly to
members of the Executive Board.
Tryg’s Supervisory Board has a gender
distribution that is considered equal under
Danish legislation, with three of nine (33%) non-
employee elected members being women. No
specific target is therefore defined.
Setting targets and involving affected
stakeholders
The process for setting targets for gender
diversity at management level is owned by the
HR department and is part of the corporate
process for developing the 2027 strategy.
Initially the high-level strategic ambition for the
area is defined, followed by a process to further
concretise the target. The process involves
internal stakeholder engagement and alignment.
The strategy and targets are ultimately approved
by the Supervisory Board.
Further, employee representatives, who are also
potentially affected stakeholders, are involved in
the review process as part of the Supervisory
Board’s review.
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Annual Report 2024 | Tryg A/S | 112
Accounting principles
Gender distribution, all management levels (headcount): The number of
employees at management level is the year-end headcounts who are
employed in a management position during the last month of the reporting
period. A manager must be an ‘active’ employee with the employment
types of either ‘permanent’ or ’temporary’. The indicator includes Tryg’s
four levels of management.
S1-9_02 Gender distribution, top management level: Gender distribution at
the upper level in Tryg called ‘Top management’, which consists of ‘Senior
Vice President’, ‘Vice President’ and ‘Executive Board'.
Gender distribution, director level: Gender distribution on the second
management level, the director level, is based on job level or role.
Gender distribution, the other level of management: This indicator is
defined according to BEK no. 503 Section 143 (2) of 23/05/2024. It is two
management levels below the Supervisory Board. The first level is the
Executive Board and persons who are organisationally on the same level as
the Executive Board. The second level is managers with staff
responsibilities reporting directly to members of the Executive Board.
S1-9_03 – 05 Employee age groups (headcount): The age groups are
calculated at the end of the reporting period and include all headcounts in
Tryg. The age groups are >30, 30-49 and 50+years.
Employee age groups
ESRS ID
Unit
2024
2023
2019
S1-9_03 Employees, <30 years
%
26
28 n
16
S1-9_04 Employees, 30-49 years
%
49
47 n
53
S1-9_05 Employees, 50 years and
above
%
25
24 n
31
Limited assurance in 2023 n
Gender distribution at management levels
Targets
Perfor-
mance vs.
target
Targets
ESRS ID
Unit
2024
2023
2019
2024
2024
2030
Gender distribution,
all management
levels (headcount)
Number male
432
480
n
Number female
332
339
n
Number other
0
-
Number not
reported
0
0
n
% male
57
59
n
35
% female
43
41
n
46
41
2
40
% other
0
-
-
% not reported
0
0
n
0
Gender distribution,
top management
level
Number male
61
40
n
Number female
29
15
n
Number other
0
-
S1-9_02
Number not
reported
0
0
n
% male
68
73
n
% female
32
27
n
33
-1
40
% other
0
-
% not reported
0
0
n
Gender distribution,
director level
Number male
199
69
n
Number female
112
24
n
Number other
0
-
Number not
reported
0
0
n
% male
64
74
n
% female
36
26
n
41
-5
40
% other
0
-
% not reported
0
0
n
Gender distribution,
the other level of
management
Number male
25
53
n
Number female
10
22
n
Number other
0
-
Number not
reported
0
0
n
% male
71
71
n
% female
29
29
n
33
a)
-4
% other
0
-
% not reported
0
0
n
Limited assurance in 2023
n
a) Target for June 30, 2026
-
Focus on mitigating gender pay gap
Tryg has a gender-neutral remuneration policy
and strives for equal pay. However, it is
acknowledged that Tryg has not yet
accomplished a complete gender pay balance.
Tryg works purposefully to improve data and
analyses to better understand where there are
differences as well as their respective root
causes. Tryg is currently preparing for the EU
pay transparency directive and is continuously
working on identifying and reducing pay gaps
within the organisation.
In June 2024, Tryg introduced a new job
architecture with specific job levels and salary
packages tied to these. This will enable Tryg to
increase fairness and transparency, as salary
packages will be based on the role and level of
an employee as well as internal and external
benchmarks. The job levels are defined by
impact and value to the company as well as
complexity and degree of responsibility – not on
the specific person currently holding the
position.
To reduce inequality, Tryg regularly launches
initiatives that aim to minimise structural
differences. Tryg Denmark has for the past
couple of years had a parental leave policy
where every parent, regardless of gender or
relation, is entitled to 25 weeks of paid parental
leave. Since its implementation in 2022, male
employees’ parental leave increased from an
average of 8.2 weeks to 17.22 weeks in 2024.
Tryg has introduced an extraordinary pool to
increase gender pay equality.
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Accounting principles
S1-13_02 Percentage of employees that participated in regular performance and career
development reviews: Total number of employees that have participated in development
reviews divided by the total number of employees (permanent) in Tryg minus employees not
in scope for career development and training e.g. students. Figures are managed in Tryg’s
global HR system.
S1-13_02 Employees that participated in regular performance and career development
reviews: The number of employees that have participated in regular performance and career
development reviews, broken down by gender (male, female, other, and not reported).
S1-13_03 and S1-13_04 Average employee training hours per person and by gender: Only
includes mandatory compliance training. The figure is reported as an average per person and
split by gender. The figures are managed in Tryg's three learning platforms.
S1-16_01 Gender pay ratio per country: This indicator measures the average female-male
pay gap by calculating the difference between average gross monthly earnings of males and
females that are included in the headcount figure.
S1-16_02 Annual total remuneration ratio: Total annual remuneration ratio of the highest
paid employees to the median annual total remuneration for all employees excl. the highest
paid employee.
Training and skills development
ESRS ID
Unit
2024
2023
2019
S1-13_02 Employees that participated in regular
performance and career development
%
60
66
n
S1-13_03
Employees that participated in regular
performance and career development
by gender
Number
male
2,414
2,557
n
Number
female
2,120
2,282
n
Number
other
0
Number
not
reported
1
0
n
S1-13_04 Average employee training hours
Hours
3
1
20
S1-13_04 Average employee training hours by
gender
Hours
male
3
Hours
female
3
Hours
other
0
Hours not
reported
0
Limited assurance in 2023
n
Pay ratio
ESRS ID
Unit
2024
2023
2019
S1-16_01 Gender pay ratio - Denmark
%
13
S1-16_01 Gender pay ratio - Norway
%
15
S1-16_01 Gender pay ratio - Sweden
%
13
S1-16_02 Annual total remuneration ratio
%
21
21
n
26
Limited assurance in 2023
n
-
Consumers and
end-users
Material impacts, risks and
opportunities
As an insurance company, Tryg has a
responsibility to provide customers with
adequate protection against unforeseen events.
In essence, Tryg manages risks on behalf of its
customers, which creates a safety net for
economic losses and unforeseen expenditures.
Tryg needs to be well positioned to understand
its customers and their particular needs for
claims prevention. The prevalence of data in
understanding customer needs, the value of
personalising offerings, as well as the
development of artificial intelligence (AI)
solutions can contribute to more precise
product offerings that benefit both Tryg and its
customers. Yet, this comes with a responsibility
of ensuring transparent and ethical processes
for how data is handled and applied.
Tryg handles personal and confidential data
about its customers on a daily basis, and how it
is handled can impact all types of customers for
all types of products. Data is the basis of Tryg’s
business, and a prerequisite for Tryg to
determine prices and coverage, handle claims
and safeguard its business model.
Negative impacts
Any potential unethical, irresponsible or
unlawful management of data can negatively
impact Tryg’s customers, and having strong
governance and policies in place for handling
and applying data to customise products and
determine prices is key. In light of the rise of
automated or AI solutions, it is ever more
relevant that customers can trust that their data
is handled with due care and consideration.
Furthermore, society and customers are
dependent on relevant and accessible products
and services that can help protect them against
any negative impact of unforeseen events. As
such, Tryg has established processes to ensure
that data is used in a responsible manner that is
transparent, fair and thoughtful of the customer.
The potential negative impacts regarding data
handling are considered general for the industry
and not related to a specific group of customers.
Positive impact and opportunity
Data is the foundation for Tryg to be able to
provide insurance to its customers. Insurance
can provide peace of mind for customers and
protect them against uncertainties related to
e.g. property damage or sickness.
An opportunity is identified in terms of
supporting and protecting customers against
unforeseen events. Tryg aims to develop
relevant products that respond to some of the
main challenges faced by our customers,
whether that relates to potential cyber threats,
weather-related damage to their assets, or
health problems. This is an integral part of
Tryg’s strategy and its purpose, 'As the world
changes we make it easier to be Tryg1'.
Policies related to consumers
and end-users
To fulfil the societal obligation of safeguarding
customers and developing relevant and
accessible products, data is key, as is the
handling, application and storage of the data
used to target the specific product offerings and
determine prices.
Policies for managing material impacts with
regards to Tryg’s customers centre around
responsible and ethical use of data and the
protection of rights.
Data – responsible use, handling and protection
To ensure ethical use of data, Tryg refers to the
Data Ethical Codex from the Danish trade
association Insurance & Pension Denmark as
well as relevant legal requirements and
internationally agreed standards. Data ethical
practices are based on three main principles:
Transparency, free choice and data security.
With the increased focus and application of AI
solutions comes a need for high ethical
standards and thoughtful consideration of how
to apply and safeguard customers’ data –
particularly confidential and personal data. Tryg
has taken the first steps in establishing a
governance setup that allows the potential of AI
technology to be harnessed while also ensuring
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1'Tryg' means feeling protected and cared for in Danish.
-
that practices are not in violation of applicable
legislation and are conducted with respect for
individual rights and freedoms.
Tryg’s AI policy describes our approach to the
development and use of AI across the
organisation. It establishes five fundamental
principles for the development and use of AI
within Tryg, with the aim of ensuring that AI is
employed in a lawful, ethical and responsible
manner.
The five principles are:
•
Thoughtfulness & Accountability
•
Fairness
•
Transparency
•
Privacy & Data governance
•
Robustness & Security
The policy applies to all legal entities and
business areas within the Tryg Group, including
all subsidiaries. Tryg’s Group Legal department
is responsible for maintaining the policy and the
Supervisory Board for approving it annually.
Tryg’s Information Security policy describes
Tryg’s commitment and efforts to protect data
and information entrusted to Tryg by customers,
suppliers, employees or other partners.
The policy is aligned and compatible with
financial services industry-recognised
Information Security frameworks (e.g.
ISO27001:2013, NIST Cyber Security
Framework) and best practices. It applies to all
business units and information systems and is
approved annually by the Supervisory Board.
Information and all assets must be protected
from internal or external threats, whether
deliberate or accidental in order to safeguard
confidential information; maintain integrity,
accuracy and completeness of information;
maintain availability of information; protect the
legal rights of individuals; and manage access to
information.
The policy outlines specific guidelines for access
controls, cyber security and data protection,
system development, resilience, and
compliance programmes. It is complemented
by the Information Security Rules, Processes
and Procedures as well as Tryg’s Three Line of
Defence governance model. An appointed Chief
Information Security Officer (CISO) has
responsibility for overseeing the policy and for
facilitating the process for determining the
cyber risk appetite to be approved by the
Executive Board and Supervisory Board. The
CISO operates from the second line of defence.
Tryg continuously monitors the evolution of the
surrounding cyber-threat landscape while
adapting technical and organisational cyber
controls to ensure proper cyber resilience.
Tryg collaborates and shares experiences on
data security with the industry and authorities as
part of its memberships of the respective Trade
Associations in Denmark, Norway and Sweden.
To the extent possible, Tryg shares threat
intelligence to support a high level of
information security in the insurance industry
and in society. Any data breach is carefully
analysed to prevent future breaches.
Respecting human rights through its customer
relations.
Tryg’s Human and Labour Rights policy
describes Tryg’s commitment to the UN Guiding
Principles for business and human rights across
its value chain, including in customer relations.
Tryg expects its commercial customers to
respect human and labour rights and sets out
clear expectations in the insurance conditions
that these customers, as a minimum, live up to
the ten principles of the UN Global Compact.
Commercial customers of a certain size are
furthermore screened according to ESG
parameters specifically including human and
labour rights in order to monitor performance.
All new products and significant adaptations of
existing products must go through a product
approval process. The purpose is to ensure that
the product does not have unfavourable effects
for customers, unintentionally discriminates or
negatively impacts equal treatment, that
appropriate measures have been taken to
prevent or mitigate any adverse effects on
customers and that the product provides value
for the customer.
Tryg’s Legal and Quality departments closely
follow developments on e.g. equal treatment,
and share guidance and best practices with the
relevant business areas as appropriate.
Furthermore, one of the most important tasks of
all Tryg’s customer-facing functions is to deliver
a good customer experience. As an insurance
company, Tryg has a responsibility to deliver
qualified, understandable and relevant advice
with regards to coverage and preventive
measures, etc. But our responsibility goes
beyond this and includes making sure that
processes and decisions on claims are
transparent, and that customers get the
necessary practical or emotional support they
need in their specific situation.
For customers with hidden disabilities, Tryg in
Denmark has established a dedicated sunflower
phone line to address any special needs. This
group of customers might need more patience,
extended explanations or emotional support
when filing a claim or having to understand their
insurance cover. Customer-facing employees
have been trained in answering these calls and
the phone line is open daily.
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.
-
Processes for engaging with
consumers and end-users about
impacts
Tryg engages on a regular basis with its
customers in order to gather insights on areas
that work well and areas that can be improved.
Listening to our customers
High customer satisfaction is an important
parameter for creating and maintaining a
successful Tryg. Consequently, it is a key target
in Tryg’s corporate strategy and reported
externally on a quarterly basis. Operational
responsibility resides in each business area.
Tryg has defined a target for customer
satisfaction. The targets focus on the customer
journey, including several types of touchpoints
and key processes, e.g. telephone and online
experiences, onboarding and claims handling
processes and the overall relation with our
customers.
Customer feedback is collected automatically
through trigger-based surveys after each
interaction. They include specific questions
about level of satisfaction as well as open-ended
questions for direct feedback, allowing for more
nuanced customer feedback and the
opportunity to make data more insightful and
action-oriented. Customer feedback loops
ensure individual follow-up on negative scores
or comments as a way for Tryg to gain a better
understanding of the specific customer pain.
All customers are included in the scope of the
surveys and have the option of providing
feedback. Feedback is shared with the relevant
departments at Tryg who, when relevant, will
initiate appropriate actions for improvements.
Depending on the issue in question, actions can
be training and coaching, streamlining
processes or improving communication to
customers.
Customer feedback is made available to the
organisation as soon as it is received in order to
ensure quick follow-up. This provides managers
in the customer-facing areas with a strong
management tool and enables broad
engagement across the organisation.
Proactive customer communication
Guided by its purpose,'As the world changes, we
make it easier to be Tryg', Tryg is committed to
proactively protecting customers against
uncertainties related to property damage or
sickness, etc. Whether this relates to warnings
on extreme weather events or prevention
measures for avoiding property damage, Tryg
aims to be a proactive peace-of-mind creator for
its customers.
This is a way of preventing claims from
happening in the first place or minimising any
damage or loss that might occur. Tryg regularly
sends out emails or newsletters to customers,
reminding them of services or prevention
mechanisms available through their insurance,
or which they can add in order to minimise the
risk of having a claim.
In the case of weather events such as
cloudbursts or storms, Tryg proactively sends
direct text messages to relevant customers to
inform and encourage them to take action to
protect their assets. Through data agreements
with local suppliers, Tryg is alerted when the
weather forecast predicts cloudbursts or storms
and can forward this to customers together with
a reminder and advice on how to best safeguard
their belongings. The alerts focus on local
warnings and are as such targeted towards the
customers at risk.
Process to remediate negative
impacts and channels for
consumers and end-users to raise
concerns
In the event of a customer disagreeing with the
final conclusion of a claims handling process,
they have the option of raising a complaint with
Tryg’s Quality department, which will reassess
the case.
Complying with legal requirements, information
about options for complaints are communicated
to the customer in the event of a dispute over
the final coverage. The information is also
available on Tryg’s websites and described in
the insurance conditions.
If agreement cannot be reached between Tryg
and the customer, Tryg refers the case to the
relevant public institutions, such as the
Insurance Appeals Board in Denmark
(‘Ankenævnet’) and similar institutions in
Norway and Sweden.
Customers who want to raise concerns about
the business conduct of Tryg or any misconduct
performed by a Tryg employee, can at any time
use Tryg’s Whistleblower mechanism.
Customers are, however, not protected by the
special provisions of the legislation on
protection against reprisal, in accordance with
the Whistleblower Act.
Read more about Tryg’s Whistleblower
mechanism on page 122.
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Taking actions on material impacts
on consumers and end-users
Actions to address material impacts can be
categorised under two themes: The first one
concerns ensuring compliance and responsible
handling and application of data. These types of
actions centre around internal processes, such
as a strong governance setup for data handling,
cyber security and functioning IT systems and
are considered prerequisites for Tryg to run its
business.
The other type of actions is largely dependent
on data and connected to Tryg’s purpose:
Delivering insurance to customers that
addresses their specific needs and can help
protect them from unforeseen events. Among
these actions are close customer interactions
and development of initiatives, services or
measures to help customers prevent damage
and protect their assets.
Due to the diverging and cross-cutting
disciplines associated with managing material
impacts towards customers, it is currently not
possible to identify the specific resource
allocations. This will be further investigated over
the coming years.
Developing and deploying AI solutions
With data as the foundation for offering tailor-
made solutions and helping customers prevent
claims, it is critical to ensure that the data use is
in the best interest of the customer. This is
especially true when it comes to automated
solutions and the use of AI technology.
A governance setup on the development and
deployment of AI solutions has been
established. A newly established AI Advisory
Board helps ensure that Tryg follows its defined
principles of thoughtfulness & accountability,
fairness, transparency, privacy & data
governance, and robustness & security through
for example a pre-screening in the design phase.
When developing AI technology, Tryg has a
responsibility to ensure that the system does
not produce discriminatory outcomes due to
unintended biases in the algorithm or data. At
the same time, the system must maintain an
adequate level of traceability and explainability,
taking into consideration the use-case and the
type of AI model used.
Tryg will continue to strengthen its setup for
ensuring fairness, transparency, accountability
and strong data governance over the coming
years to make sure that the data solutions and
processes remain thoughtful of the customers,
help drive customer satisfaction and meet
regulatory and ethical standards.
Training and awareness of data handling
Generally, the human factor and employee
behaviour are central to ensuring proper and
confidential processing of data and avoidance of
cyber incidents. Tryg raises awareness and
regularly trains employees in privacy and cyber
security through mandatory e-learning and
training programmes.
For AI, focus during 2024 has been on
establishing the proper governance and
initiatives to ensure that the organisation is
adequately equipped and that standards are
defined as to how Tryg addresses the area.
Among the focus areas for 2025 are training and
internal awareness.
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Sustainability statement
Financial statements
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Prevention
Prevention measures are considered a central
part of Tryg’s delivery to its customers and are a
key focus area across the business lines and one
of the technical criteria for classifying an
insurance product as EU taxonomy-aligned.
Tryg has worked with prevention for several
years and already has a number of initiatives in
place, such as pump well or rat blockers for
private households and risk assessments for
commercial customers.
During 2024, new prevention initiatives included
a partnership with an electrical installer to
prevent fires at farms for agricultural customers.
For customers working with the transportation
of goods, Tryg has developed a programme to
help understand and predict how accidents
occur in order to be able to prevent future ones
and thereby avoid claims that can lead to
unwanted costs or operating losses. Trygg-
Hansa has developed an AI model to predict the
risk of claims based on deviations in predicted
claims estimates. Together, these initiatives
serve the purpose of improving peace of mind
for Tryg’s customers and minimising the
number and extent of any damage.
Advising and supporting customers
For commercial customers, an external
customer-facing risk management function has
been established with the purpose of creating a
positive impact for customers. This can take the
form of larger analyses and projects or more
general material such as one pagers or video
guidelines communicating Tryg’s advice and
recommendations in an easily accessible and
comprehensible manner.
Specific initiatives under Risk management
include ‘Tryg på Arbejde’, the first customer-
facing risk management concept focusing on
occupational injuries. Through a combination of
classical risk analyses and data from wearables,
Tryg is able to prevent work-related injuries –
benefiting the customer, its employees, Tryg
and society.
Advocating for better climate adaptation and
protection of customers' assets
As a corporate citizen, Tryg wishes to actively
contribute to driving societal change and
helping to tackle the challenges we face as a
society. Tryg wishes to be part of the public
debate and put its knowledge and insights into
use through dialogue with partners, customers
and society.
In 2024, Tryg participated in the Danish
democracy festival, 'Folkemøde'. Engaging with
politicians, NGOs, academics and key opinion
leaders, CEO Johan Kirstein Brammer hosted a
debate on the topic of preventive climate
adaption – calling for more political action and
awareness of the consequences of more
extreme weather conditions. In 2023, both
Denmark and Norway experienced once-in-
a-100-years weather events that resulted in
significant destruction and substantial human
and economic consequences.
As described on page 75, Tryg works with UN
RCP climate scenarios to assess the climate
impact on its business. From the analyses, it is
evident that the type of damage we must expect
to see during this century will challenge the
interface between what can be insured and
what should be covered through national
schemes.
Tryg’s ambitions are clear, political action is
needed to help society adapt to the
consequences of more extreme weather
conditions - not only to safeguard its business
model but, more importantly, to safeguard its
current and future customers’ risk exposure to
weather-related damage. Citizens, particular
those most at risk from weather-related
hazards, need to have confidence in their
government and insurance company to
safeguard them against emerging climate
threats and ensure the protection of their
property in the future.
Targets
Tryg’s customer satisfaction score is one of the
key parameters for Tryg. The 2024 target was to
reach 88 on a scale from 0 to 100 – a stable and
widely used method for calculating customer
satisfaction. At year-end the customer
satisfaction score was 87.
Towards 2027, Tryg is committed to a new
target and will continue to focus on customer
satisfaction in touchpoints and key processes.
The score is based on customers’ assessment of
the customer journey and covers key processes
and touchpoints from the beginning of the
customer relationship, where the customer is
onboarded, to handling claims and ongoing
service matters. It is based on direct customer
feedback from interactions with Tryg.
Interactions cover, for example, phone calls,
digital self-service and claims handling, after
which the customers will receive a survey. The
survey includes both questions that should be
rated and open text fields for direct feedback.
The open-ended text fields allow customers to
address their specific pain and areas where Tryg
can improve the customer experience.
A new target has been defined for 2027 to
achieve a customer satisfaction score of 83,
which Tryg will report on as of 2025.
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The 2027 target is lower than the 2024 target.
This is due to the fact, that the target has been
expanded to include Trygg-Hansa (as opposed
to the 2024 target that merely covered Tryg
Denmark and Norway) and broadening the
scope for customer satisfaction to get a more
holistic view of e.g., the digital customer
experience.
The processes around customer satisfaction is
driven by the Group Customer Insights team,
which collaborate closely with all business areas
across Denmark, Norway and Sweden. Each
business area has thorough insight into the
customer experience and contributes with
input, learnings and business planning that can
drive improvements in customer satisfaction. It
is ultimately the Executive Board that approves
the target level and focus. The results and
customer feedback are shared with the business
areas to ensure transparency and actions to
address areas of improvement.
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Governance
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G1 Business conduct
Responsible investment practices
-
As a financial sector company, responsible
business conduct is fundamental for Tryg's
business, its credibility, and its ability to succeed
with its strategy. It is a responsibility that Tryg
promotes throughout its value chain and
expects employees, suppliers, business
partners and external investment managers to
comply with.
Material impacts, risks and opportunities
In the double materiality assessment, only an
impact related to supplier relations was
considered material. No impacts, risks or
opportunities related to corruption or bribery
were assessed material. However, to fulfil its
commitment to the UN Global Compact and
because Tryg recognises that this could be a
potential adverse impact, policies and initiatives
related to prevention and detection of incidents
of corruption and bribery are described.
Positive impact
A positive impact is identified in terms of
establishing and maintaining effective and
mutually beneficial interactions with suppliers,
and delivery of services for the purpose of
enabling a smooth claims handling process that
benefits customers. This includes processes to
ensure that suppliers share Tryg's values and
standards.
Tryg aims to direct claims to suppliers in its
network of claims suppliers. This benefits Tryg
in terms of having an established and known
supplier base while helping the often small
suppliers by ensuring a steady flow of work. The
benefits are mutual and require close
collaboration.
Business conduct
Business conduct policies and corporate
culture
Tryg’s Code of Conduct (CoC) describes
expectations and guidelines applicable to all
employees and other partners who have
undertaken to comply with the Code of Conduct
in their cooperation agreements with Tryg. It
covers themes such as accountability, good
business conduct, effective and free
competition, duty of confidentiality, sensitive
data, and security and economic crime.
To support the CoC, standard operational
procedures are established to operationalise the
principles around, for example, preventing
incidents of corruption and bribery, breaches of
financial sanctions and tax evasion.
The CoC is based on the rules applicable to Tryg
as an insurance company as well as
internationally agreed standards, in particular
the ten principles of the United Nations Global
Compact, and more specifically the United
Nations Convention against Corruption. It is
reviewed annually and approved by the
Executive Board.
Tryg’s Supplier Code of Conduct clearly
describes expectations for suppliers. Read more
about how Tryg works to convey social and
environmental requirements to suppliers on
page 124.
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Business conduct
-
Establishing, developing, promoting and
evaluating corporate culture
A strong compliance setup is critical for how
Tryg conducts business. As an insurance
company, Tryg administers a special trust from
the public in providing economic security for
customers. Tryg must be able to ensure and
facilitate credibility, integrity and independence
in its operations in order to not jeopardise the
trust of its customers or the public.
In Tryg's governance model, initial precautions
are taken to ensure an appropriate control
environment through the 1st, 2nd and 3rd line
of defence. The 1st line of defence is the
business areas and Group functions responsible
for day-to-day risk management. They are
responsible for carrying out everyday work
based on Tryg’s policies and instructions and are
responsible for compliance with both internal
and external requirements.
The 2nd line consists of the Compliance,
Actuarial and Risk Management functions,
responsible for respectively overseeing and
monitoring compliance with applicable laws,
legislation and internal policies, assessing the
adequacy of the provisions, and for facilitating
and monitoring effective risk management
practices and reporting.
The 3rd line consists of the Internal Audit
function responsible for ensuring an
independent and objective audit of the
organisation’s internal controls, risk
management and governance processes.
Internal and external assessments regularly
monitor Tryg’s compliance with legislation and
regulation. The governance setup provides the
foundation for ways of working in Tryg.
To ensure that Tryg can live up to its purpose,
deliver on its strategy and continue to create
peace of mind for its customers and society,
three key characteristics are set forth to support
leadership and employee performance across
Tryg. The characteristics are defining for the
culture of Tryg: Create development, show trust,
take responsibility. They apply to all employees,
regardless of level and function.
Training on business conduct
All Tryg employees are required to complete e-
learning on Tryg’s CoC on an annual basis to
ensure that they are aware of and understand
Tryg’s values and principles for ethical business
behaviour. As an integral part of the CoC, anti-
corruption, whistleblower and good business
practice are included as training elements. The
training is mandatory for all Tryg employees,
new employees and members of management.
For the business areas where there can
potentially be a higher risk of corruption and
bribery, an annual risk assessment must be
performed to properly understand the potential
risks, their impact, relevant mitigation
measures, control functions and specific groups
at risk. Group Security is responsible for the
assessments to ensure an objective and
unbiased outcome.
Areas of higher risk are considered to be
customer-facing functions, such as claims
handling, procurement and contracts. These
areas are therefore also expected to discuss and
work with the principles and standards for anti-
corruption and anti-bribery in their respective
teams and through internal training sessions.
Whistleblower scheme
Tryg wishes to ensure that its credibility cannot
be questioned and that any suspected violations
of the law or other serious matters are
investigated.
Employees and other specifically defined
individuals, such as persons working under the
supervision of suppliers or consultants and
customers, can speak up about any suspected
violation of the law or other serious matters
relating to Tryg via Tryg’s whistleblower
scheme, which is available via Tryg’s external
websites and on the intranet. For the full scope
of the Whistleblower mechanism see Tryg -
Home (whistleblowernetwork.net)
Among the matters that can be reported are
suspected violations of financial regulations or
the Anti-Money Laundering Act, suspicion of
serious offences or other serious matters, such
as financial crime, including bribery, fraud or
corruption, violation of competition rules,
suspected serious matters directed against
employees, e.g. any form of physical or
psychological violence, discrimination, human
rights violations, harassment or violations of
Tryg’s Code of Conduct.
In certain cases, whistleblowers have special
protection and protection against retaliation in
so far as the nature of the report is covered by
the scope of the Whistleblower mechanism, and
as long as the report is based on reasonable
cause and good faith.
Reports can be made anonymously and
reported matters are investigated by the
whistleblower unit, which is composed of the
Head of Group Compliance in Tryg A/S, the
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Legal Director of Tryg Forsikring A/S and the
Chairman of Tryg’s Audit and Risk committee.
The whistleblower scheme is an electronic,
independent and autonomous system, offering
the necessary security measures to protect the
integrity and identity of the whistleblower and
reported persons.
Governance and procedures are in place to
moderate the case handling process, depending
on who the report concerns and the nature of it,
i.e. reports concerning employees, management
or board members will be handled with different
precautionary measures to ensure that prompt,
independent and objective case handling can
be maintained.
Prevention and detection of corruption
and bribery
In addition to Tryg’s CoC and the annual
employee training, Tryg has a written procedure
in place for the purpose of establishing how
Tryg helps to counter bribery and corruption.
In general, Tryg must at all times have an
appropriate and effective defence against
corruption. Preventative measures must be
designed to foster a culture for fighting
corruption and for detecting incidents
of corruption.
Among the measures is a management
commitment, risk assessments,
communication and training. The established
internal governance holds each business area
responsible for ensuring compliance with the
procedure and for developing necessary
guidance or training for their respective
employees. Furthermore, controls are
established for the approval flows and the
monitoring of transactions.
Tryg has defined thresholds for the giving and
receiving of gifts, advantages, representation,
and travel. Any advantages given or received
must be transparent to both parties’
organisations. In case of suspected non-
compliance with the procedure, Group Security,
HR, the Whistleblower mechanism or the
management’s Risk Committee can be
contacted to ensure independent and qualified
investigation of the specific case.
Group Security reports Tryg’s overall corruption
and bribery risks to the Management’s and
Supervisory Board’s risk committees. Specific,
severe cases can be directly escalated to the
CFO of Tryg.
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Accounting principles
G1-3_07 Percentage of functions-at-risk covered by training programmes: Mandatory
training of all Tryg employees (permanent and temporary).Tryg operates with a zero-
tolerance approach to corruption and bribery. The training covers CoC, anti-corruption
and bribery, whistleblower, business ethics and practice, and IT security.
Prevention and detection of corruption and bribery
ESRS ID
Unit
2024
2023
2019
G1-3 – Prevention and detection of corruption and bribery
G1-3_07 Percentage of functions-at-risk covered by training
programmes
%
100
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Supplier management
Management of relationships with supplier
Tryg is a large buyer with a large annual spend. A
large spend can create a high impact, so
sustainability is therefore an integral part of the
procurement processes. Tryg aims to direct
claims to suppliers in its network of claims
suppliers. This benefits Tryg in terms of having
an established and known supplier base while
helping the often small suppliers by ensuring a
steady flow of work. The benefits are mutual
and require close collaboration. Tryg has
standard payment terms towards suppliers that
are included in the contracts to prevent late
payment.
Tryg engages with suppliers for two main
purposes: one, to ensure that potential negative
social or environmental impacts are closely
monitored and, if necessary, acted upon; and
two, to drive a change towards more circular
practices in the claims handling processes.
Tryg’s procurement teams ensure that
sustainability is an integral part of any supplier
‘request for proposal’ process, also for indirect
supplier agreements, e.g. with canteen or
cleaning suppliers, and that sustainability is
included in the contracts. Tryg’s sourcing
managers engage in dialogue with suppliers to
inspire and learn about trends and share Tryg’s
approach to more resource-efficient claims
handling.
Tryg’s Supplier Code of Conduct (SCoC)
expresses the requirements and expectations
for suppliers and partners with respect to
sustainable and responsible business conduct. It
is based on the ten principles of the UN Global
Compact and specifically outlines requirements
within business ethics, climate and
environment, working conditions, employment
practices, health and safety and human rights,
including the total prohibition of child and
forced labour.
Tryg supports the UN Guiding Principles on
Business and Human Rights, which means that
it continuously seeks to identify, prevent and
mitigate risks of adverse impacts on human and
labour rights both internally in the organisation
and across the value chain.
Tryg’s Human and Labour Rights policy includes
a commitment to proactively collaborate with
suppliers to help them increase their
sustainability performance and achieve higher
standards for human and labour rights – thereby
mitigating risks. The commitment to human and
labour rights includes a commitment to conduct
regular due diligence to ensure that Tryg is able
to identify, prevent and mitigate adverse human
rights impacts from occurring in the value chain.
One of the means for engaging with suppliers is
through questionnaires related to specific
topics, such as human and labour rights, for
instance whether the supplier has a human
rights policy or programmes and training on
health & safety in place, or more generally about
what their due diligence process entails.
Tryg conducts an annual impact assessment as
part of its due diligence to identify actual or
potential negative impacts on value chain
workers. Besides conducting an analysis based
on sectors and geographic location, specific due
diligence questionnaires are answered by
suppliers as part of the screening process. If
gaps or breaches are identified, dialogue with
the supplier will be the first step to identifying
what is needed to mitigate the situation.
Supplier screenings
Repeated or serious violations of the
requirements in the SCoC may constitute a
breach of contract with Tryg, in which case Tryg
engages in dialogue with the supplier with a
timebound action plan addressing the breaches
and a plan to remedy this and, as a last resort in
cases of continued breaches, Tryg reserves the
right to terminate any agreement with the
supplier.
To enable an evaluation of suppliers’
compliance with the SCoC, Tryg systematically
screens suppliers through an evaluation
platform. Through the platform, Tryg can screen
and evaluate suppliers’ ESG risks and their
adherence to the ten principles of the UN Global
Compact based on their responses to ESG
questionnaires.
Currently, 1,600 suppliers have received
questionnaires covering ESG topics. Based on
their responses to the ESG questionnaires, Tryg
assesses whether further action is needed and
engages in dialogue with suppliers accordingly.
This allows Tryg to identify any potential or
actual risk areas where supplier collaboration
should be advanced as a means of improving
performance.
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Tryg pays close attention to and tracks supplier
responses to the questionnaires. This includes
dialogues with (often smaller) suppliers who
have difficulties answering the questionnaires.
This can be due to lack of formalised procedures
to manage some of the social or environmental
issues at supplier level, issues of understanding
and interpreting questions, or simply not having
the necessary capacity or resources available.
In cases where a supplier has not responded to
the questionnaires or accepted Tryg’s SCoC,
Tryg’s Procurement team will engage in
dialogue with the supplier to resolve the
matter and, if needed, draw up a timebound
action plan.
As expressed in the SCoC, Tryg expects
suppliers to have a grievance mechanism or
similar procedure in place to ensure their
employees have the ability to voice grievances
anonymously and without fear of reprisal.
Additionally, workers in the value chain can at
any time raise concerns through Tryg’s
anonymous whistleblower hotline, which is
available for persons working under the
supervision of the management of contracting
parties, subcontractors, suppliers and
consultants.
A description of the process for tracking and
monitoring issues raised through the
Whistleblower mechanism is given under the
section ‘Whistleblower scheme’.
Actions for improving processes around
supplier screenings and follow-ups
This year, the process for supplier screening
was further established amongst procurement
colleagues, where the scope, impact and
purpose of supplier screenings were cemented.
Building capacity internally and on an ongoing
basis ensures that Tryg’s processes are aligned
and that more knowledge on sustainability is
established across the organisation.
During 2024, Tryg reviewed its ESG
questionnaires to suppliers to ensure that they
are understandable to suppliers, both large and
small, and with the necessary guidance
provided. This ultimately builds capacity on
sustainability amongst suppliers and enables
Tryg to better review responses and guide
efforts for risk mitigation or knowledge sharing.
To address the increasing burden suppliers,
especially smaller suppliers within the motor
sector in Denmark, face in terms of submitting
environmental and social information to their
customers, Tryg initiated a process in close
collaboration with the Danish industry
organisation, Insurance & Pension Denmark, to
develop a standard framework for supplier
questionnaires.
The purpose was to standardise the information
requested from this type of supplier across
insurance companies in Denmark, thereby
lightening the burden of suppliers having to
report different data in different formats.
Targets
To track supplier performance and compliance
with the supplier CoC, the guiding target is that
all of Tryg’s suppliers contracted by
Procurement are screened in 2024. Out of
these, Tryg has a target of ensuring that at least
70% of screened claims suppliers achieve a
high-performance rating.
The classification takes into consideration the
size of the supplier to ensure that Tryg inspires
and motivates its supply chain to increase focus
on sustainability and at the same time leaves no-
one behind or excludes any potential positive
contribution among smaller suppliers.
In 2024, 97% of active claims suppliers
contracted by Procurement were screened
through the supplier evaluation platform. 46%
of these were categorised as high-
performing. The scope for assessing high-
performing suppliers has been expanded, which
has caused a slight decline in the percentage.
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Accounting principles
G1-2_02 Suppliers screened: Tryg systematically screens contract and claims suppliers
through an evaluation platform to evaluate suppliers’ compliance with Tryg’s Supplier
Code of Conduct and sustainability performance.
G1-2_02 High-performing suppliers: If a supplier has accepted Tryg’s Supplier Code of
Conduct and has a policy or certificate within areas of sustainability they are classified as
high-performance suppliers. The tracking is done for both contract suppliers and suppliers
with claims. Small suppliers (size 1-5 employees) are classified as high-performing if they
accept the Supplier Code of Conduct and have a documented positive contribution within
a selected sustainability area.
Management of relationships with suppliers
Reporting
year
Compara-
tive
Base year
Targets
Perfor-
mance vs.
target
ESRS ID
Unit
2024
2023
2022
2024
2024
G1-2_02 Suppliers screened
Contract suppliers
%
89
66
43
90
-1
Suppliers w/ claims
%
97
73
50
100
-3
G1-2_02 High-performing suppliers
Contract suppliers
%
44
50
-
50
-6
Suppliers w/ claims
%
46
48
-
70
-24
-
Responsible investment practices
Tryg has made strategic changes to simplify and
reduce the risk of its investment portfolio. As
announced at the Capital Markets Day in
December 2024, all equities and high-risk assets
have been sold - to create a simpler, less risky
investment portfolio and ensure a stable return.
As a result, Tryg now primarily invests in a
diversified portfolio of Nordic covered bonds,
government bonds, and mortgage bonds,
including green bonds. These bonds are know
for their stability and reliability and also
demonstrate strong resilience against climate
and environmental risks.
Tryg believes that a strong governance setup is
key to ensuring transparent and responsible
investment practices. Due to the recent changes
to the investment strategy, no action plan or
targets are currently defined for the areas.
Policies for governing responsible
investment practices
The Responsible investment policy governs
Tryg's responsible investment practices.
Furthermore, the process for ethical screening
details how portfolios are screened for potential
breaches of policies against controversial
weapons and behaviour.
The purpose of the Responsible investment
policy is twofold: To ensure that the investment
activities are managed with due consideration to
sustainability-related risks and their potential
adverse impact on society. Secondly, to
promote environmental and social
characteristics and meet sustainable investment
objectives.
Responsible investment policy [link]
External manager selection and monitoring
Some of Tryg’s investments are managed
externally and typically through commingled
fund structures. Tryg’s external investment
managers are UN PRI signatories and have a
natural inclination towards an ethical mindset.
An important aspect of the implementation of
responsible investment is the selection of
external managers and specific investment
funds. Tryg evaluates (a) the external fund
managers’ governance and commitment to
responsible investing and (b) the specific
integration of ESG considerations while taking
into account specific asset class characteristics.
Tryg qualifies all external managers through a
due diligence process followed by ongoing
monitoring to ensure that each manager can
manage sustainability-related risks, promote
positive environmental and social impacts, and
meet sustainable investment objectives when
applied.
Tryg’s external managers are generally
members of responsible investment
organisations and UN PRI signatories and, on
average, score well on UN PRI assessments.
Additionally, most have explicit net-zero
commitments and have joined relevant
coalitions.
As part of the ongoing monitoring of asset
managers, Tryg continues to review their
responsible investment practices.
Ethical screening process
To ensure that the individual holdings are
aligned to Tryg’s values, ethical screenings are
conducted annually against controversial
weapons and controversial behaviour defined as
violation of the ten principles of the UN Global
Compact.
The screening is carried out using data from an
external ESG research provider and considers
compliance with UN and EU council regulations.
If a violation is identified, a formal escalation
process guides the further process.
Process for ethical screening [link]
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Independent auditor's limited assurance report on Sustainability Statement
To the stakeholders of Tryg A/S
Limited assurance conclusion
We have conducted a limited assurance
engagement on the sustainability statement of
Tryg A/S (the “Group”) included in the
Management’s review (the “Sustainability
Statement”), for the financial year 1 January –
31 December 2024.
Based on the procedures we have performed
and the evidence we have obtained, nothing has
come to our attention that causes us to believe
that the Sustainability Statement is not
prepared, in all material respects, in accordance
with the Danish Insurance Business Act Chapter
17, including:
•
compliance with the European Sustainability
Reporting Standards (ESRS), including that
the process carried out by the management
to identify the information reported in the
Sustainability Statement (the “Process”) is in
accordance with the description set out in
the subsection Double materiality
assessment (IRO-1); and
•
compliance of the disclosures in subsection
EU Taxonomy-aligned insurance and
investment activities the Environmental
section of the Sustainability Statement with
Article 8 of EU Regulation 2020/852 (the
“Taxonomy Regulation”).
Basis for conclusion
We conducted our limited assurance
engagement in accordance with International
Standard on Assurance Engagements (ISAE)
3000 (Revised), Assurance engagements other
than audits or reviews of historical financial
information (“ISAE 3000 (Revised)”) and the
additional requirements applicable in Denmark.
The procedures in a limited assurance
engagement vary in nature and timing from, and
are less in extent than for, a reasonable
assurance engagement. Consequently, the level
of assurance obtained in a limited assurance
engagement is substantially lower than the
assurance that would have been obtained had a
reasonable assurance engagement been
performed.
We believe that the evidence we have obtained
is sufficient and appropriate to provide a basis
for our conclusion. Our responsibilities under
this standard are further described in the
Auditor’s responsibilities for the assurance
engagement section of our report.
Our independence and quality management
We are independent of the Group in accordance
with the International Ethics Standards Board
for Accountants’ International Code of Ethics for
Professional Accountants (IESBA Code) and the
additional ethical requirements applicable in
Denmark. We have also fulfilled our other
ethical responsibilities in accordance with these
requirements and the IESBA Code.
Our firm applies International Standard on
Quality Management 1, which requires the firm
to design, implement and operate a system of
quality management including policies or
procedures regarding compliance with ethical
requirements, professional standards and
applicable legal and regulatory requirements.
Management’s responsibilities for the
Sustainability Statement
Management is responsible for designing and
implementing a process to identify the
information reported in the Sustainability
Statement in accordance with the ESRS and for
disclosing this Process as included in the
subsection Double materiality assessment
(IRO-1) of the Sustainability Statement. This
responsibility includes:
•
understanding the context in which the
Group’s activities and business relationships
take place and developing an understanding
of its affected stakeholders;
•
the identification of the actual and potential
impacts (both negative and positive) related
to sustainability matters, as well as risks and
opportunities that affect, or could
reasonably be expected to affect, Tryg A/S’s
financial position, financial performance,
cash flows, access to finance or cost of
capital over the short-, medium-, or long-
term;
•
the assessment of the materiality of the
identified impacts, risks and opportunities
related to sustainability matters by selecting
and applying appropriate thresholds; and
•
making assumptions that are reasonable in
the circumstances.
Management is further responsible for the
preparation of the Sustainability Statement,
which includes the information identified by the
Process, in accordance with the Danish
Insurance Business Act Chapter 17 including:
•
compliance with the ESRS;
•
preparing the disclosures as included in
subsection EU Taxonomy-aligned insurance
and investment activities section of the
Sustainability Statement, in compliance with
Article 8 of the Taxonomy Regulation;
•
designing, implementing and maintaining
such internal control that management
determines is necessary to enable the
preparation of the Sustainability Statement
that is free from material misstatement,
whether due to fraud or error; and
•
the selection and application of appropriate
sustainability reporting methods and making
assumptions and estimates that are
reasonable in the circumstances.
Inherent limitations in preparing the
Sustainability Statement
In reporting forward-looking information in
accordance with ESRS, management is required
to prepare the forward-looking information on
the basis of disclosed assumptions about events
that may occur in the future and possible future
actions by the Group. Actual outcomes are likely
to be different since anticipated events
frequently do not occur as expected.
Auditor’s responsibilities for the
assurance engagement
Our responsibility is to plan and perform the
assurance engagement to obtain limited
assurance about whether the Sustainability
Statement is free from material misstatement,
whether due to fraud or error, and to issue a
limited assurance report that includes our
conclusion. Misstatements can arise from fraud
or error and are considered material if,
individually or in the aggregate, they could
reasonably be expected to influence decisions
of users taken on the basis of the Sustainability
Statement as a whole.
As part of a limited assurance engagement in
accordance with ISAE 3000 (Revised) we
exercise professional judgement and maintain
professional scepticism throughout the
engagement.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 127
-
Our responsibilities in respect of the Process
include:
•
Obtaining an understanding of the Process,
but not for the purpose of providing a
conclusion on the effectiveness of the
Process, including the outcome of the
Process;
•
Considering whether the information
identified addresses the applicable
disclosure requirements of the ESRS; and
•
Designing and performing procedures to
evaluate whether the Process is consistent
with Tryg A/S’s description of its Process, as
disclosed in the subsection Double
materiality assessment (IRO-1)
Our other responsibilities in respect of the
Sustainability Statement include:
•
Identifying where material misstatements
are likely to arise, whether due to fraud or
error; and
•
Designing and performing procedures
responsive to disclosures in the
Sustainability Statement where material
misstatements are likely to arise. The risk of
not detecting a material misstatement
resulting from fraud is higher than for one
resulting from error, as fraud may involve
collusion, forgery, intentional omissions,
misrepresentations, or the override of
internal control.
Summary of the work performed
A limited assurance engagement involves
performing procedures to obtain evidence
about the Sustainability Statement. The nature,
timing and extent of procedures selected
depend on professional judgement, including
the identification of disclosures where material
misstatements are likely to arise, whether due to
fraud or error, in the Sustainability Statement.
In conducting our limited assurance
engagement, with respect to the Process, we:
•
Obtained an understanding of the Process
by performing inquiries to understand the
sources of the information used by
management; and reviewing the Group’s
internal documentation of its Process]; and
•
Evaluated whether the evidence obtained
from our procedures about the Process
implemented by Tryg A/S was consistent
with the description of the Process set out in
the subsection Double materiality
assessment (IRO-1)
In conducting our limited assurance
engagement, with respect to the Sustainability
Statement, we:
•
Obtained an understanding of the Group’s
reporting processes relevant to the
preparation of its Sustainability Statement
including the consolidation processes by
obtaining an understanding of the Group’s
control environment, processes and
information systems relevant to the
preparation of the Sustainability Statement
but not evaluating the design of particular
control activities, obtaining evidence about
their implementation or testing their
operating effectiveness;
•
Evaluated whether the information
identified by the Process is included in the
Sustainability Statement;
•
Evaluated whether the structure and the
presentation of the Sustainability Statement
are in accordance with the ESRS;
•
Performed inquires of relevant personnel
and analytical procedures on selected
information in the Sustainability Statement;
•
Performed substantive assurance
procedures on selected information in the
Sustainability Statement;
•
Where applicable, compared disclosures in
the Sustainability Statement with the
corresponding disclosures in the Financial
Statements and Management’s review;
•
Evaluated the methods, assumptions and
data for developing estimates and forward-
looking information; and
•
Obtained an understanding of the Group’s
process to identify taxonomy-eligible and
taxonomy-aligned economic activities and
the corresponding disclosures in the
Sustainability Statement.
Other Matter
The comparative information not marked with
grey dots included in the Sustainability
Statement for the financial year 1 January – 31
December 2023 was not subject to an
assurance engagement. Our conclusion is not
modified in respect of this limitation of scope.
Hellerup, 23 January 2025
PricewaterhouseCoopers Statsautoriseret
Revisionspartnerselskab
CVR no 33 77 12 31
Per Rolf Larssen
State Authorised Public Accountant
mne24822
Stefan Vastrup
State Authorised Public Accountant
mne32126
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 128
-
Data points deriving from other EU legislation
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 129
Disclosure Requirement and related data point
SFDR ( 23 )
Pillar 3 ( 24 )
Benchmark
Regulation ( 25 )
EU Climate Law ( 26 )
ESRS 2 GOV-1 Board's gender diversity paragraph 21 (d)
p. 37 / p. 58-59
p. 37 / p. 58-59
ESRS 2 GOV-1
Percentage of board members who are independent paragraph 21 (e)
p. 37 / p. 58-59
ESRS 2 GOV-4
Statement on due diligence paragraph 30
p. 61
ESRS 2 SBM-1
Involvement in activities related to fossil fuel activities paragraph 40 (d) i
Not material
Not material
Not material
ESRS 2 SBM-1
Involvement in activities related to chemical production paragraph 40 (d) ii
Not material
Not material
ESRS 2 SBM-1
Involvement in activities related to controversial weapons paragraph 40 (d) iii
Not material
Not material
ESRS 2 SBM-1
Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv
Not material
ESRS E1-1
Transition plan to reach climate neutrality by 2050 paragraph 14
p. 74
ESRS E1-1
Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g)
p. 74
p. 74
ESRS E1-4
GHG emission reduction targets paragraph 34
p. 80
p. 80
p. 80
ESRS E1-5
Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38
Not material
ESRS E1-5 Energy consumption and mix paragraph 37
p. 79
ESRS E1-5
Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43
Not material
ESRS E1-6
Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44
p. 83
p. 83
p. 83
ESRS E1-6
Gross GHG emissions intensity paragraphs 53 to 55
p. 84
p. 84
p. 84
ESRS E1-7
GHG removals and carbon credits paragraph 56
Not material
ESRS E1-9
Exposure of the benchmark portfolio to climate-related physical risks paragraph 66
Material (phase-in)
ESRS E1-9
Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a)
ESRS E1-9
Location of significant assets at material physical risk paragraph 66 (c).
Material (phase-in)
ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c).
Material (phase-in)
ESRS E1-9
Degree of exposure of the portfolio to climate- related opportunities paragraph 69
Material (phase-in)
-
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 130
Disclosure Requirement and related data point
SFDR ( 23 )
Pillar 3 ( 24 )
Benchmark
Regulation ( 25 )
EU Climate Law ( 26 )
ESRS E2-4
Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer
Register) emitted to air, water and soil, paragraph 28
Not material
ESRS E3-1
Water and marine resources paragraph 9
Not material
ESRS E3-1
Dedicated policy paragraph 13
Not material
ESRS E3-1
Sustainable oceans and seas paragraph 14
Not material
ESRS E3-4
Total water recycled and reused paragraph 28 (c)
Not material
ESRS E3-4
Total water consumption in m 3 per net revenue on own operations paragraph 29
Not material
ESRS 2- SBM 3 - E4 paragraph 16 (a) i
Not material
ESRS 2- SBM 3 - E4 paragraph 16 (b)
Not material
ESRS 2- SBM 3 - E4 paragraph 16 (c)
Not material
ESRS E4-2
Sustainable land / agriculture practices or policies paragraph 24 (b)
Not material
ESRS E4-2
Sustainable oceans / seas practices or policies paragraph 24 (c)
Not material
ESRS E4-2
Policies to address deforestation paragraph 24 (d)
Not material
ESRS E5-5
Non-recycled waste paragraph 37 (d)
p. 93
ESRS E5-5
Hazardous waste and radioactive waste paragraph 39
p. 93
ESRS 2- SBM3 - S1
Risk of incidents of forced labour paragraph 14 (f)
Not material
ESRS 2- SBM3 - S1
Risk of incidents of child labour paragraph 14 (g)
Not material
ESRS S1-1
Human rights policy commitments paragraph 20
p. 105
ESRS S1-1
Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to
8, paragraph 21
p. 105
ESRS S1-1
processes and measures for preventing trafficking in human beings paragraph 22
Not material
ESRS S1-1
workplace accident prevention policy or management system paragraph 23
Not material
ESRS S1-3
grievance/complaints handling mechanisms paragraph 32 (c)
p. 108
-
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 131
Disclosure Requirement and related data point
SFDR ( 23 )
Pillar 3 ( 24 )
Benchmark
Regulation ( 25 )
EU Climate Law ( 26 )
ESRS S1-14
Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c)
Not material
Not material
ESRS S1-14
Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e)
Not material
ESRS S1-16
Unadjusted gender pay gap paragraph 97 (a)
p. 113
p. 113
ESRS S1-16
Excessive CEO pay ratio paragraph 97 (b)
p. 113
ESRS S1-17
Incidents of discrimination paragraph 103 (a)
p. 108
ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD Guidelines paragraph 104 (a)
Not material
Not material
ESRS 2- SBM3 – S2
Significant risk of child labour or forced labour in the value chain paragraph 11 (b)
Not material
ESRS S2-1
Human rights policy commitments paragraph 17
Not material
ESRS S2-1 Policies related to value chain workers paragraph 18
Not material
ESRS S2-1Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19
Not material
Not material
ESRS S2-1
Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to
8, paragraph 19
Not material
ESRS S2-4
Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36
Not material
ESRS S3-1
Human rights policy commitments paragraph 16
Not material
ESRS S3-1
non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guidelines paragraph 17
Not material
Not material
ESRS S3-4
Human rights issues and incidents paragraph 36
Not material
ESRS S4-1 Policies related to consumers and end-users paragraph 16
p. 114
ESRS S4-1
Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17
p. 115
p. 115
ESRS S4-4
Human rights issues and incidents paragraph 35
Not material
ESRS G1-1
United Nations Convention against Corruption paragraph 10 (b)
p. 121
ESRS G1-1
Protection of whistle- blowers paragraph 10 (d)
p. 122
ESRS G1-4
Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a)
Material (postponed)
Material (postponed)
ESRS G1-4
Standards of anti- corruption and anti- bribery paragraph 24 (b)
Material (postponed)
.-
Tryg's Group consolidated financial statements are prepared in accordance with IFRS Accounting Standards
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Contents - Financial statements
Annual Report 2024 | Tryg A/S | 132
Tryg Group
Note
Statement by the Supervisory Board and the
Executive Board
133
Independent Auditor’s Reports
134
Financial highlights
138
Income statement
139
Statement of comprehensive income
140
Statement of financial position
141
Statement of changes in equity
142
Cash flow statement
144
1
Risk and capital management
145
2
Insurance revenue
156
3
Insurance service result
156
4
Operating segments
157
5
Insurance service result by geography
158
6
Insurance service result by line of business
160
7
Insurance service expenses
162
8
Interest and dividends
163
9
Value adjustments
163
10
Net finance income/expenses from insurance
contracts
163
11
Net finance income/expenses from reinsurance
contracts
163
12
Other income and costs
163
Tryg A/S (parent company)
Income and comprehensive income statement
205
Statement of financial position
206
Statement of changes in equity
207
Notes
208
Reporting for Q4
Quarterly outline - Segments
213
Quarterly outline - Geography
215
Information
Group chart
218
Glossary, key ratios and alternative performance
measures
219
Disclaimer
221
Note
13
Tax
164
14
Intangible assets
166
15
Property, plant and equipment
170
16
Investment property
171
17
Equity investments in associates
171
18
Financial assets
172
19
Assets from reinsurance contracts
175
20
Cash at bank and in hand
176
21
Equity
176
22
Subordinated loan capital
178
23
Insurance contracts liabilities
180
24
Pensions and similar obligations
182
25
Deferred tax
183
26
Other provisions
184
27
Earnings per share, operating earnings per share
184
28
Other debt
184
29
Contractual obligations, collateral and contingent
liabilities
185
30
Related parties
186
31
Share-based payments
189
32
Financial highlight
190
33
Accounting policies
191
-
The Supervisory Board and Executive Board
have today considered and adopted the Annual
Report of Tryg A/S for the financial year
1 January – 31 December 2024.
The Consolidated Financial Statements have
been prepared in accordance with IFRS
Accounting Standards as adopted by the EU and
further requirements in the Danish Insurance
Business Act for listed financial services
companies and the requirements of NASDAQ
Copenhagen for the presentation of the
financial statements of listed companies. The
Parent Company Financial Statements have
been prepared in accordance with the Danish
Insurance Business Act. Management’s Review
has been prepared in accordance with the
Danish Insurance Business Act.
In our opinion, the Consolidated Financial
Statements and the Parent Company Financial
Statements give a true and fair view of the
Group’s and the Parent Company’s assets,
liabilities and financial position as at 31
December 2024 and of the results of the Group
and the Parent Company operations and the
cash flows of the Group for the financial year 1
January 2024 - 31 December 2024.
In our opinion, Management’s Review includes a
fair review of the development in the operations
and financial circumstances of the Group and
the Parent Company and describes significant
risk and uncertainty factors that may affect the
Group and the Parent Company.
Additionally, the sustainability statement, which
is part of Management’s Review, is prepared, in
all material respects, in accordance with
Chapter 17 of the Danish Insurance Business
Act and rules issued accordingly. This includes
compliance with the European Sustainability
Reporting Standards (ESRS) including that the
process undertaken by Management to identify
the reported information (the “Process”) is in
accordance with the description set out in the
subsection Double materiality assessment
(IRO-1). Furthermore, disclosures within the
Environmental section of the sustainability
statement are, in all material respects, in
accordance with Article 8 of EU Regulation
2020/852 (the “Taxonomy Regulation”).
The year 2024 marks the initial implementation
of Chapter 17 of the Danish Insurance Business
Act concerning compliance with ESRS. As such,
more clear guidance and practice are
anticipated in various areas, which are expected
to be issued in the coming years. Furthermore,
the sustainability statement includes forward-
looking statements based on disclosed
assumptions about events that may occur in the
future and possible future actions by the Group.
Actual outcomes are likely to be different since
anticipated events frequently do not occur as
expected.
In our opinion, the annual report of Tryg A/S for
the financial year 1 January to 31 December
2024 with the file name tryg-2024-12-31- en.zip
is prepared, in all material respects, in
compliance with the ESEF Regulation.
We recommend that the Annual Report be
adopted at the Annual General Meeting.
Ballerup, 23 January 2025
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Statement by the Supervisory Board
and the Executive Board
Annual Report 2024 | Tryg A/S | 133
Executive Board
Johan Kirstein Brammer
Allan Kragh Thaysen
Lars Bonde
Alexandra Bastkær Winther
Mikael Kärrsten
Group CEO
Group CFO
Group COO
Group CCO
Group CTO
Supervisory Board
Jukka Pertola
Steffen Kragh
Benedicte Bakke Agerup
Carl-Viggo Östlund
Thomas Hofman-Bang
Mengmeng Du
Anne Kaltoft
Chairman
Deputy Chairman
Claus Wistoft
Jørn Rise Andersen
Charlotte Dietzer
Tina Snejbjerg
Elias Bakk
Mette Osvold
Lena Darin
-
To the shareholders of Tryg A/S
Report on the audit of the Financial Statements
Our opinion
In our opinion, the Consolidated Financial
Statements give a true and fair view of the
Group’s financial position at 31 December 2024
and of the results of the Group’s operations and
cash flows for the financial year 1 January to 31
December 2024 in accordance with IFRS
Accounting Standards as adopted by the EU and
further requirements in the Danish Insurance
Business Act.
Moreover, in our opinion, the Parent Company
Financial Statements give a true and fair view of
the Parent Company’s financial position at 31
December 2024 and of the results of the Parent
Company’s operations for the financial year 1
January to 31 December 2024 in accordance
with the Danish Insurance Business Act.
Our opinion is consistent with our Auditor’s
Long-form Report to the Audit Committee and
the Board of Directors.
What we have audited
The Consolidated Financial Statements of Tryg
A/S for the financial year 1 January to 31
December 2024 comprise the income
statement and statement of comprehensive
income, the statement of financial position,
statement of changes in equity, the cash flow
statement and notes, including material
accounting policy information for the Group.
The Parent Company Financial Statements of
Tryg A/S for the financial year 1 January to 31
December 2024 comprise the income and
comprehensive income statement, the
statement of financial position, the statement of
changes in equity and notes, including material
accounting policy information.
Collectively referred to as the “Financial
Statements”.
Basis for opinion
We conducted our audit in accordance with
International Standards on Auditing (ISAs) and
the additional requirements applicable in
Denmark. Our responsibilities under those
standards and requirements are further
described in the Auditor’s responsibilities for the
audit of the Financial Statements section of our
report.
We believe that the audit evidence we have
obtained is sufficient and appropriate to provide
a basis for our opinion.
Independence
We are independent of the Group in accordance
with the International Ethics Standards Board
for Accountants’ International Code of Ethics for
Professional Accountants (IESBA Code) and the
additional ethical requirements applicable in
Denmark. We have also fulfilled our other
ethical responsibilities in accordance with these
requirements and the IESBA Code.
To the best of our knowledge and belief,
prohibited non-audit services referred to in
Article 5(1) of Regulation (EU) No 537/2014
were not provided.
Appointment
We were first appointed auditors of Tryg A/S on
26 March 2021 for the financial year 2021. We
have been reappointed annually by shareholder
resolution for a total period of uninterrupted
engagement of 4 years including the financial
year 2024.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Independent Auditor’s Reports
Annual Report 2024 | Tryg A/S | 134
-
Measurement of provisions for insurance contracts
The Group's provisions for insurance contracts total DKK
46,969 million, which constitutes 45% of the total equity and
liabilities. Provisions for insurance contracts primarily
comprise premium provisions (liability for remaining
coverage, LRC) and claims provisions (liability for incurred
claims, LIC).
The IFRS 17 premium allocation approach (PAA) is applied for
measurement of groups of insurance contracts.
On initial recognition the carrying amount of premium
provisions (LRC) is recognised as the premiums received.
Subsequently, the carrying amount of the LRC is increased by
any premiums received and decreased by the amount
recognised as insurance revenue for services provided.
Services are primarily provided based on passage of time. The
estimate covers direct and indirect costs relating to the
remaining service period. Insurance acquisition costs are
expensed as incurred.
Claims provisions (LIC) are measured as the total of the
expected fulfilment cash flows relating to insurance events
occurred at the statement of financial position date, which
comprise estimates of future cash flows, adjusted to reflect
the time value of money and the associated financial risks, and
a risk adjustment for non-financial risks. The estimate includes
direct and indirect claims handling costs that arise from
events occurred at or before the statement of financial
position date.
Accounting estimates in respect of provisions for insurance
contracts is an experience-based estimate involving use of
historic claims data and complex actuarial methods and
models, which involve significant assumptions on the
frequency and extent of insurance events relating to the
insurance contracts.
We focused on the measurement of provisions for insurance
contracts, as the accounting estimate is by nature complex
and influenced by subjectivity and thus to a large extent
associated with estimation uncertainty.
Reference is made to the description in the Financial
Statements of “Risk and capital management” in Note 1 and in
“Accounting policies” sections “Significant accounting
estimates and assessments“ and “Insurance and reinsurance
contracts” in Note 33.
How our audit addressed the key audit matter
We performed risk assessment procedures with the purpose
of achieving an understanding of it-systems, procedures and
relevant controls relating to claims processing and insurance
provisioning. In respect of controls, we assessed whether
these were designed and implemented effectively to address
the risk of material misstatement. For selected controls, on
which we planned to rely on, we tested whether these
controls had been performed on a consistent basis.
We used our own actuaries in the evaluation of the actuarial
methods and models applied by the Group as well as
assumptions applied, and calculations made. For a sample of
provisions for insurance contracts, we tested the calculation
and the data used to the underlying documentation.
We assessed and challenged the methods and models and
significant assumptions applied based on our experience and
industry knowledge with a view to ensure that these are in line
with regulatory and accounting requirements, including IFRS
17. This comprised an assessment of the continuity in the
basis for the calculation of provisions for insurance contracts.
We tested the calculation of provisions for insurance
contracts on a sample basis.
We assessed whether the disclosures on provisions for
insurance contracts were adequate.
Recoverability of the carrying amount of goodwill,
trademarks and customer relations
The Group's goodwill, trademarks and customer relations total
DKK 28,925 million, which constitutes 28% of the total assets.
The principal risks are in relation to Management’s
assessment of the future projected cash flows that are used to
assess the recoverability of the carrying amount of goodwill,
trademark and customer relations. There are specific risks
related to the impact on future earnings from competition and
economic trends in key markets. Bearing in mind the generally
long-lived nature of the assets, the significant assumptions are
Management’s view of expected insurance revenue, gross
claims ratio, reinsurance ratio, gross expense ratio, discount
rate and inflation.
We focused on this, as there is a high level of subjectivity
exercised by Management in estimating future cash flows and
the models used are complex.
The key assumptions and accounting treatment are described
in Note 14 “Intangible assets” in the Financial Statements and
in “Accounting policies” sections “Significant accounting
estimates and assessments“ and “Measurement of Goodwill,
Trademarks and Customer relations” in Note 33.
How our audit addressed the key audit matter
We performed risk assessment procedures to obtain an
understanding of IT systems, business processes and relevant
controls related to the assessment of the carrying amount of
goodwill, trademarks and customer relations. In respect of
controls, we assessed whether these were designed and
implemented effectively to address the risk of material
misstatement.
We considered the appropriateness of Management’s defined
CGUs within the business.
We examined the methodology used by Management to
assess the carrying amount of goodwill, trademarks and
customer relations and the process for identifying CGUs that
require impairment testing to determine compliance with
IFRS. We performed detailed testing for the assets where an
impairment review was required and evaluated whether there
were any indications of impairment of the assets. We analysed
the reasonableness of significant assumptions in relation to
the ongoing operations related to the assets.
We evaluated and challenged the assumptions used by
Management, including assessment of expected premium
growth rates, claims ratio, reinsurance ratio, gross cost ratio,
discount rate and inflation and tested the mathematical
accuracy of the relevant value-in-use models prepared by
Management.
Further, we assessed the appropriateness of disclosures,
including sensitivity analyses prepared for the significant
assumptions.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Independent Auditor’s Reports
Annual Report 2024 | Tryg A/S | 135
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements for 2024. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
-
Statement on Management’s Review
Management is responsible for Management’s
Review.
Our opinion on the Financial Statements does
not cover Management’s Review, and we do not
as part of the audit express any form of
assurance conclusion thereon.
In connection with our audit of the Financial
Statements, our responsibility is to read
Management’s Review and, in doing so, consider
whether Management’s Review is materially
inconsistent with the Financial Statements or
our knowledge obtained in the audit, or
otherwise appears to be materially misstated.
Moreover, we considered whether
Management’s Review includes the disclosures
required by the Danish Insurance Business Act.
This does not include the requirements related
to the sustainability statement covered by the
separate auditor’s limited assurance report
hereon.
Based on the work we have performed, in our
view, Management’s Review is in accordance
with the Consolidated Financial Statements and
the Parent Company Financial Statements and
has been prepared in accordance with the
requirements of the Danish Insurance Business
Act, except for the requirements related to the
sustainability statement, cf. above. We did not
identify any material misstatement in
Management’s Review.
Management’s responsibilities for
the Financial Statements
Management is responsible for the preparation
of consolidated financial statements that give a
true and fair view in accordance with IFRS
Accounting Standards as adopted by the EU and
further requirements in the Danish Insurance
Business Act and for the preparation of parent
company financial statements that give a true
and fair view in accordance with the Danish
Insurance Business Act, and for such internal
control as Management determines is necessary
to enable the preparation of financial
statements that are free from material
misstatement, whether due to fraud or error.
In preparing the Financial Statements,
Management is responsible for assessing the
Group’s and the Parent Company’s ability to
continue as a going concern, disclosing, as
applicable, matters related to going concern and
using the going concern basis of accounting
unless Management either intends to liquidate
the Group or the Parent Company or to cease
operations, or has no realistic alternative but to
do so.
Auditor’s responsibilities for the audit
of the Financial Statements
Our objectives are to obtain reasonable
assurance about whether the Financial
Statements as a whole are free from material
misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit
conducted in accordance with ISAs and the
additional requirements applicable in Denmark
will always detect a material misstatement
when it exists. Misstatements can arise from
fraud or error and are considered material if,
individually or in the aggregate, they could
reasonably be expected to influence the
economic decisions of users taken on the basis
of these Financial Statements.
As part of an audit in accordance with ISAs and
the additional requirements applicable in
Denmark, we exercise professional judgement
and maintain professional scepticism
throughout the audit. We also:
•
Identify and assess the risks of material
misstatement of the Financial Statements,
whether due to fraud or error, design and
perform audit procedures responsive to
those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a
material misstatement resulting from fraud
is higher than for one resulting from error, as
fraud may involve collusion, forgery,
intentional omissions, misrepresentations,
or the override of internal control.
•
Obtain an understanding of internal control
relevant to the audit in order to design audit
procedures that are appropriate in the
circumstances, but not for the purpose of
expressing an opinion on the effectiveness
of the Group’s and the Parent Company’s
internal control.
•
Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related
disclosures made by Management.
•
Conclude on the appropriateness of
Management’s use of the going concern
basis of accounting and based on the audit
evidence obtained, whether a material
uncertainty exists related to events or
conditions that may cast significant doubt
on the Group’s and the Parent Company’s
ability to continue as a going concern. If we
conclude that a material uncertainty exists,
we are required to draw attention in our
auditor’s report to the related disclosures in
the Financial Statements or, if such
disclosures are inadequate, to modify our
opinion. Our conclusions are based on the
audit evidence obtained up to the date of
our auditor’s report. However, future events
or conditions may cause the Group or the
Parent Company to cease to continue as a
going concern.
•
Evaluate the overall presentation, structure
and content of the Financial Statements,
including the disclosures, and whether the
Financial Statements represent the
underlying transactions and events in a
manner that gives a true and fair view.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Independent Auditor’s Reports
Annual Report 2024 | Tryg A/S | 136
-
•
Plan and perform the group audit to obtain
sufficient appropriate audit evidence
regarding the financial information of the
entities or business units within the group as
a basis for forming an opinion on the
Consolidated Financial Statements and the
Parent Company Financial Statements. We
are responsible for the direction, supervision
and review of the audit work performed for
purposes of the group audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with
governance regarding, among other matters, the
planned scope and timing of the audit and
significant audit findings, including any
significant deficiencies in internal control that
we identify during our audit.
We also provide those charged with governance
with a statement that we have complied with
relevant ethical requirements regarding
independence, and to communicate with them
all relationships and other matters that may
reasonably be thought to bear on our
independence and, where applicable, actions
taken to eliminate threats or safeguards applied.
From the matters communicated with those
charged with governance, we determine those
matters that were of most significance in the
audit of the Financial Statements of the current
period and are therefore the key audit matters.
We describe these matters in our auditor’s
report unless law or regulation precludes public
disclosure about the matter.
Report on compliance with
the ESEF Regulation
As part of our audit of the Financial Statements
we performed procedures to express an opinion
on whether the annual report of Tryg A/S for the
financial year 1 January to 31 December 2024
with the filename tryg-2024-12-31-en.zip is
prepared, in all material respects, in compliance
with the Commission Delegated Regulation (EU)
2019/815 on the European Single Electronic
Format (ESEF Regulation) which includes
requirements related to the preparation of the
annual report in XHTML format and iXBRL
tagging of the Consolidated Financial
Statements including notes.
Management is responsible for preparing an
annual report that complies with the ESEF
Regulation. This responsibility includes:
•
The preparing of the annual report in
XHTML format;
•
The selection and application of appropriate
iXBRL tags, including extensions to the ESEF
taxonomy and the anchoring thereof to
elements in the taxonomy, for all financial
information required to be tagged using
judgement where necessary;
•
Ensuring consistency between iXBRL tagged
data and the Consolidated Financial
Statements presented in human-readable
format; and
•
For such internal control as Management
determines necessary to enable the
preparation of an annual report that is
compliant with the ESEF Regulation.
Our responsibility is to obtain reasonable
assurance on whether the annual report is
prepared, in all material respects, in compliance
with the ESEF Regulation based on the evidence
we have obtained, and to issue a report that
includes our opinion. The nature, timing and
extent of procedures selected depend on the
auditor’s judgement, including the assessment
of the risks of material departures from the
requirements set out in the ESEF Regulation,
whether due to fraud or error. The procedures
include:
•
Testing whether the annual report is
prepared in XHTML format;
•
Obtaining an understanding of the
company’s iXBRL tagging process and of
internal control over the tagging process;
•
Evaluating the completeness of the iXBRL
tagging of the Consolidated Financial
Statements including notes;
•
Evaluating the appropriateness of the
company’s use of iXBRL elements selected
from the ESEF taxonomy and the creation of
extension elements where no suitable
element in the ESEF taxonomy has been
identified;
•
Evaluating the use of anchoring of extension
elements to elements in the ESEF taxonomy;
and
•
Reconciling the iXBRL tagged data with the
audited Consolidated Financial Statements.
In our opinion, the annual report of Tryg A/S for
the financial year 1 January to 31 December
2024 with the file name tryg-2024-12-31-en.zip
is prepared, in all material respects, in
compliance with the ESEF Regulation.
Hellerup, 23 January 2025
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR No 33 77 12 31
Per Rolf Larssen
State Authorised Public Accountant
mne24822
Stefan Vastrup
State Authorised Public Accountant
mne32126
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Independent Auditor’s Reports
Annual Report 2024 | Tryg A/S | 137
-
DKKm
2024
2023
2022
2021
2020
Insurance revenue
39,974
39,126
38,365
25,369
23,442
Insurance service expenses
-31,902
-32,219
-32,156
-21,304
-19,276
Net expenses from reinsurance contracts
-748
-507
-576
-727
-480
Insurance service result
7,324
6,399
5,636
3,338
3,687
Net investment resulta)
643
631
-441
1,369
241
Other income and costs
-1,664
-2,001
-2,143
-752
-387
Profit/loss before tax
6,303
5,029
3,051
3,956
3,541
Tax
-1,488
-1,178
-804
-795
-768
Profit/loss on continuing business
4,816
3,851
2,247
3,161
2,773
Profit/loss on discontinued and divested business
0
0
0
-3
0
Profit/loss for the period
4,816
3,851
2,247
3,158
2,773
Other comprehensive income
Other comprehensive income which cannot subsequently be reclassified as profit or loss
-1
-1
-2
0
-62
Other comprehensive income which can subsequently be reclassified as profit or loss
-837
-8
-1,828
-36
48
Other comprehensive income
-838
-9
-1,830
-36
-14
Comprehensive income
3,978
3,842
417
3,122
2,759
Run-off gains/losses, net of reinsurance
1,090
1,099
759
435
1,194
Run-off gains/losses, Gross
1,898
1,735
1,120
421
1,179
Statement of financial position
Insurance contracts liabilities
46,969
49,463
49,063
32,968
31,081
Assets from reinsurance contracts
2,974
3,060
2,823
2,244
2,052
Total equity
38,864
40,351
42,504
49,008
12,264
Total assets
104,376
112,940
113,387
99,245
59,647
Key Ratios
Gross claims ratio
65.6
68.0
68.7
70.9
68.9
Net reinsurance ratio
1.9
1.4
1.7
2.9
2.0
Claims ratio, net of reinsurance
67.6
69.4
70.3
73.8
70.9
Expense ratio
13.5
13.4
13.5
13.1
13.3
Combined ratio
81.0
82.8
83.8
86.8
84.3
Operating ratio
81.0
82.8
83.8
86.8
84.3
Relative run-off gains/losses
2.9
2.7
2.9
1.8
4.9
Return on equity after tax (%)
12.2
9.4
4.9
7.8
22.5
Share price (DKK)
151.50
146.90
165.35
161.50
192.10
Market price/Net asset value
2.4
2.2
2.5
2.2
4.7
Price/Earnings
19.7
24.2
47.6
29.3
20.9
a) Tryg’s acquisition of RSA
Scandinavia affects the
Financial Statement from
closing the 1 June 2021. In
2022 net investment return
includes income from RSA
Scandinavia of DKK 34m
(2021: DKK 1,206m) and
includes net effect from
demerger and sale of Codan
Denmark. Tryg’s acquisition
of the activities in Trygg-
Hansa and Codan Norway
were fully consolidated in
the Financial Statements
from the 1 April 2022.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Financial highlights
Annual Report 2024 | Tryg A/S | 138
-
DKKm
2024
2023
Note
2
Insurance revenue
39,974
39,126
7
Insurance service expenses
-31,902
-32,219
Net expenses from reinsurance contracts
-748
-507
3-6
Insurance service result
7,324
6,399
Investment activities
Profit/loss from associates
-48
-75
Income from investment property
22
35
8
Interest income and dividends
1,633
1,624
9
Value adjustments
559
1,674
8
Interest expenses
-392
-344
Administration expenses in connection with investment activities
-239
-176
Investment return
1,535
2,738
10
Net finance income/expense from insurance contracts
-1,016
-2,190
11
Net finance income/expense from reinsurance contracts
124
84
Net investment result
643
631
12
Other income
132
145
12
Other costs
-1,796
-2,147
Profit/loss before tax
6,303
5,029
Tax
-1,488
-1,178
Profit/loss for the period
4,816
3,851
27
Earnings per share
7.71
6.08
27
Diluted earnings per share
7.70
6.07
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Income statement
Annual Report 2024 | Tryg A/S | 139
-
DKKm
2024
2023
Note
Profit/loss for the period
4,816
3,851
Other comprehensive income which cannot subsequently be reclassified as profit or loss
Actuarial gains/losses on defined-benefit pension plans
-1
-2
Tax on actuarial gains/losses on defined-benefit pension plans
0
0
-1
-1
Other comprehensive income which can subsequently be reclassified as profit or loss
Exchange rate adjustments of foreign entities
-1,030
-105
Hedging of currency risk in foreign entities
262
130
Tax on hedging of currency risk in foreign entities
-68
-33
-837
-8
Total other comprehensive income
-838
-9
Comprehensive income
3,978
3,842
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Statement of comprehensive income
Annual Report 2024 | Tryg A/S | 140
-
DKKm
2024
2023
Note
Assets
14
Intangible assets
30,692
31,987
Operating equipment
192
191
Group-occupied property
759
935
15
Total property, plant and equipment
951
1,125
16, 18 Investment property
429
498
17
Equity investments in associates
38
54
Total investments in associates
38
54
Equity investments
3,836
3,939
Unit trust units
1,168
8,192
Bonds
59,687
57,065
Derivative financial instruments
661
2,038
Reverse repurchase lending
340
59
18
Total other financial investment assets
65,693
71,293
Total investment assets
66,159
71,844
19
Assets from reinsurance contracts
2,974
3,060
Other receivables
472
526
Total receivables
472
526
13
Current tax assets
43
197
20
Cash at bank and in hand
2,123
3,132
Other
0
5
Total other assets
2,166
3,334
Interest and rent receivable
388
418
Other prepayments and accrued income
574
645
Total prepayments and accrued income
962
1,063
Total assets
104,376
112,940
DKKm
2024
2023
Note
Equity and liabilities
21
Equity
38,864
40,351
22
Subordinated loan capital
2,906
3,031
23
Insurance contracts liabilities
46,969
49,463
24
Pensions and similar obligations
57
77
25
Deferred tax liability
2,780
3,367
26
Other provisions
84
223
Total provisions
2,921
3,666
Amounts owed to credit institutions
989
2,028
Debt relating to repos
3,684
4,645
18
Derivative financial instruments
1,048
1,779
13
Current tax liabilities
887
389
28
Other debt
6,068
7,551
Total debt
12,677
16,391
Accruals and deferred income
39
38
Total equity and liabilities
104,376
112,940
1
Risk and capital management
29
Contractual obligations, collateral and contingent liabilities
30
Related parties
31
Share-based payment
32
Financial highlights
33
Accounting policies
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Statement of financial position
Annual Report 2024 | Tryg A/S | 141
-
DKKm
Share capital
Reserve for
exchange
rate
adjustment
Other
reservesa)
Retained
earnings
Proposed
dividend
Non-
controlling
interest
Share-
holders of
Tryg
Additional
Tier 1 capital
Total equity
Equity at 31 December 2023
3,174
-1,796
4,547
32,263
1,174
1
39,364
987
40,351
2024
Profit/loss for the period
-186
84
4,844
4,742
73
4,816
Other comprehensive income
-837
-1
-838
-838
Total comprehensive income
0
-837
-186
83
4,844
0
3,905
73
3,978
Nullification of own shares
-92
92
0
0
Dividend paid
-4,816
-4,816
-4,816
Dividend, own shares
76
76
76
Interest paid on additional Tier 1 capital
0
-73
-73
Purchase and sale of own shares
-707
-707
-707
Share-based payment
56
56
56
Total changes in equity in 2024
-92
-837
-186
-400
28
0
-1,487
0
-1,487
Equity at 31 December 2024
3,082
-2,633
4,361
31,864
1,202
1
37,877
987
38,864
a) The contingency fund provisions can be used to cover losses in connection with the settlement of insurance provisions or otherwise for the benefit of the insured and are not available for dividends.
Proposed dividend per share is calculated as the total dividend proposed by the Supervisory Board after the end of the financial year divided by the total number of shares at the end of the year 616,392,109
shares.
The possible payment of dividend from Tryg Forsikring A/S to Tryg A/S is influenced by contingency fund provisions of DKK 4,361m (DKK 4,547m in 2023).
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Statement of changes in equity
Annual Report 2024 | Tryg A/S | 142
-
DKKm
Share capital
Reserve for
exchange
rate
adjustment
Other
reservesa)
Retained
earnings
Proposed
dividend
Non-
controlling
interest
Share-
holders of
Tryg
Additional
Tier 1 capital
Total equity
Equity at 31 December 2022
3,273
-1,789
4,724
35,247
1,047
1
42,504
0
42,504
Changes in impairment owing to implementation of IFRS 9
-2
-2
-2
Changes in taxes due owing to implementation of IFRS 9
1
1
1
Equity at 1 January 2023
3,273
-1,789
4,724
35,245
1,047
1
42,502
0
42,502
2023
Profit/loss for the period
-178
-763
4,734
3,794
57
3,851
Other comprehensive income
-8
-1
-9
-9
Total comprehensive income
0
-8
-178
-765
4,734
0
3,785
57
3,842
Nullification of own shares
-99
99
0
0
Dividend paid
-4,607
-4,607
-4,607
Dividend, own shares
135
135
135
Interest paid on additional Tier 1 capital
0
-57
-57
Purchase and sale of own shares
-2,531
-2,531
-2,531
Issue of additional Tier 1 capital
0
987
987
Share-based payment
79
79
79
Total changes in equity in 2023
-99
-8
-178
-2,982
127
0
-3,138
987
-2,151
Equity at 31 December 2023
3,174
-1,796
4,547
32,263
1,174
1
39,364
987
40,351
a) The contingency fund provisions can be used to cover losses in connection with the settlement of insurance provisions or otherwise for the benefit of the insured and are not available for dividends.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Statement of changes in equity
Annual Report 2024 | Tryg A/S | 143
-
DKKm
2024
2023
Cash flow from operating activities
Insurance revenue received
38,886
36,905
Insurance service expenses paid
-31,436
-29,060
Net expenses from reinsurance contracts
-663
-876
Cash flow from insurance activities
6,786
6,970
Interest income
1,291
1,145
Interest expense
-392
-344
Dividend received
155
149
Corporate taxes
-1,365
-318
Other income and costs
-826
-1,034
Total cash flow from operating activities
5,649
6,569
Cash flow from Investment activities
Purchase/sale of equity investments and unit trust units
6,771
883
Purchase/sale of bonds (net)
-6,084
-523
Purchase/sale of intangible assets
-819
-502
Purchase/sale of operating equipment (net)
-9
-69
Acquisition/sale of associate
-31
165
Sale of investment property
38
502
Hedging of currency risk
262
130
Total cash flow from investment activities
129
585
Cash flow from financing activities
Purchase and sale of own shares (net)
-707
-2,531
Subordinated loan capital
0
-45
Dividend paid
-4,816
-4,607
Change in lease liabilities
-210
-211
Change in amounts owed to credit institutions
-1,039
722
Total cash flow from financing activities
-6,772
-6,672
Change in cash and cash equivalents, net
-994
482
Exchange rate adjustment of cash and cash equivalents, 1 January
-16
-12
Change in cash and cash equivalents, gross
-1,009
470
Cash and cash equivalents at 1 January
3,132
2,662
Cash and cash equivalents at end of period
2,123
3,132
DKKm
Liabilities arising from financing activities
2024
Subordinated
loansa)
Amounts
owed to
credit
institutions
Total
Carrying amount at 1 January
4,018
2,028
6,045
Exchange rate adjustments
-126
0
-126
Amortisation
1
0
1
Cash flow
0
-1,039
-1,039
Carrying amount at 31 December
3,894
989
4,881
2023
Carrying amount at 1 January
4,154
1,305
5,459
Exchange rate adjustments
-94
1
-93
Amortisation
3
0
3
Cash flow
-45
722
677
Carrying amount at 31 December
4,018
2,028
6,045
a) hereof is DKK 987m recognised as equity cf. note 21
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Cash flow statement
Annual Report 2024 | Tryg A/S | 144
-
1
Risk and capital management
Risk management in Tryg
The Supervisory Board defines the basis for the risk appetite through the business model and the
current strategy. The Supervisory Board has regulated the management of risk activities through
policies and guidelines to the business supported by underlying business processes and a power of
attorney structure. The company’s risk management forms the basis for the risk profile being in line
with the specified risk appetite at all times. Tryg’s risk profile is continuously measured, quantified and
reported to the management and the Supervisory Board.
In Tryg, we have adopted a three lines governance model across the organisation. This is to ensure
robust governance and effective communication between the business areas, key function and
internal audit as well as reporting to the Supervisory Board and the Supervisory Board’s Risk
Committee.
• 1st line is the Business Management
• 2nd line is Compliance-, Actuarial- and Risk Management function
• 3rd line is Internal Audit and Internal Audit function
The 1st line consists of the Business Management:
The business areas and group functions are responsible for the daily risk management and for
carrying out every day work based on Tryg’s policies and instructions regarding the management of
risks and are responsible for being compliant with both internal and external requirements. This
means that there must be procedures and guidelines in place for vital areas, and that internal controls
are carried out in such a way that risks are identified in a timely manner and necessary risk mitigation
activities are implemented.
The 2nd line consists of the Compliance-, Actuarial- and Risk Management function:
The compliance function has the overall responsibility for overseeing and monitoring compliance with
applicable laws and legislation as well as internal policies and guidelines. The key responsibility of the
actuarial function is to ensure and assess the adequacy of the provisions.
The risk management function is responsible for the facilitation and, monitoring of effective risk
management practices and reporting of adequate risk-related information throughout the
organisation.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 145
Governance model
Tryg’s risk management environment
-
1
Risk and capital management (continued)
The risk management function ensures a consistent approach to risk identification across the
organisation, risk assessment of the most significant risks at Group level and reporting to the
Supervisory Board.
Furthermore, the function prepares specific recommendations in relation to capital management,
reinsurance, investment risk management and more.
The functions in the second line must have an overview of business processes and risks across the
organisation.
The 3rd line consists of Internal Audit and Internal Audit function:
The third line must ensure an independent and objective audit of the organisation’s internal controls,
risk management and governance processes. Internal audit reports independently to the Supervisory
Board and to its Audit Committee.
The Supervisory Board has organised their own Risk Committee consisting of 4 members of the
Supervisory Board. In addition to these 4 members, the Chief Financial Officer, Chief Risk Officer and
the General Counsel (in Capacity as overseeing the Compliance function) are part of the Committee.
The Supervisory Board’s Risk Committee was established to ensure that all risk and capital related
topics are discussed thoroughly before discussed in the Supervisory Board.
Capital management
Tryg’s capital management is based on the key business objectives:
• A solid capital base, supporting both the statutory requirements and a single ‘A’ rating from
Moody’s.
• Support of a steadily increasing nominal dividend per share, with a payout ratio in the interval
60-90% (of operating earnings)
Tryg’s capital base currently consist of Tier 1 and 2 capital, such as shareholders’ equity and
subordinated loans.
The capital base is continuously measured against the capital requirement calculated based on
Tryg’s partial internal model, where insurance risks are modelled using an internal model, while
other risks are described using the standard formula.
The model determines Tryg’s required capital with a 99.5% confidence level over a 1-year horizon,
which means that Tryg will be able to fulfil its obligations in 199 out of 200 years. The partial
internal model has been used for several years, and was approved by the Danish Financial
Supervisory Authority (DFSA) in December 2015. A major model change was last approved by DFSA
in October 2023.
Monitoring of the capital base also involves capital projections based on expected business plans
within the strategic planning period and selected stress scenarios.
Company’s Own Risk and Solvency Assessment (ORSA)
ORSA is the company’s own risk and solvency assessment based on the Solvency II principles,
which implies that Tryg must assess all material risks that the company is or may be exposed to.
The ORSA report also contains an assessment of whether the calculation of solvency capital
requirement is reasonable and is reflecting Tryg’s actual risk profile.
Tryg’s risk activities are implemented via continuous risk management processes, where the main
results are reported to the Supervisory Board and its Risk Committee during the year. Therefore, the
ORSA report is an annual summary document assessing all these processes.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 146
What risk profile does Tryg want?
- Business model
- Strategy
- Policies
How is this supported?
Tactically Operationally
- Policies - Frameworks
- Capital plan
- Limitations
- Contingency plan
- Instructions
- Allocated capital
- Contingency plans
How is the actual risk profile measured?
Tactically
- Risk reports
- Capital model
- Internal controls
- Stress tests
-
1
Risk and capital management (continued)
Insurance risk
Insurance risk comprises two main types of risks: Underwriting risk and reserving risk.
Sensitivity analysis
DKKm
2024
2023
Effect of 1% change in:
Combined ratio (1 percentage point)
+/- 400
+/- 391
Large single loss
-200
-150
Catastrophe event
-300
-300
Underwriting risk
Underwriting risk refers to the possibility that insurance premiums may not be adequate to cover
compensations and other costs related to the insurance business. This risk is primarily managed
through the company's insurance policy, which is defined by the Supervisory Board and implemented
via business procedures and underwriting guidelines. Tryg assesses underwriting risk using its capital
model to determine the capital impact of insurance products.
Reinsurance is employed to mitigate underwriting risk when it cannot be sufficiently reduced through
standard diversification. As of January 1, 2025, the main components of Tryg's reinsurance program
include:
• Major Events like natural perils: For significant incidents involving damage to buildings and
contents/business interruption etc, Tryg's reinsurance program offers protection for losses defined
by the Solvency II Standard Scenario, equivalent to a 1 in 200-year event. The retention for such
events is DKK 300m .
• Large Claims: Tryg is protected by reinsurance on a per-risk basis for large claims incidents
involving damage to buildings and contents/business interruption. The retention for these large
claims is DKK 200m.
• Credit/Surety: Tryg's retention is 20% of DKK 500m for Credit and for larger Surety clients the %-
retention is adjusted to a maximum estimated loss of DKK 60m, however nominal maximum of
DKK 120m for certain bond types.
• Other Lines: There is also reinsurance coverage for other lines with a retention of DKK 100m.
The use of reinsurance introduces counterparty risk, which is managed by engaging a diverse range of
reinsurers with suitable ratings and adequate capital levels, as defined by the Supervisory Board.
Concentration of underwriting risk
Reinsurance is ceded across all geographic in which Tryg operates, Tryg does not have a significant
concentration of credit risk with any single reinsurer.
The geographical concentration of the Group's liabilities for incurred claims is noted below.
The disclosure is based on the countries where the business is written.
DKKm
2024
Denmark
Sweden
Norway
Other
Total
Income protection
8,793
8,078
3,065
0
19,936
Motor
1,453
6,909
840
0
9,202
Property
2,309
2,699
1,572
0
6,581
Liability
1,620
656
501
0
2,777
Other
1,726
168
373
184
2,451
Total
15,901
18,511
6,351
184
40,947
2023
Income protection
8,608
8,595
3,193
0
20,395
Motor
1,717
7,340
755
0
9,812
Property
2,514
2,750
1,836
0
7,100
Liability
1,553
810
693
0
3,056
Other
2,091
359
713
203
3,365
Total
16,483
19,853
7,189
203
43,728
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 147
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1
Risk and capital management (continued)
Reserving risk
Reserving risk relates to the risk of Tryg’s insurance provisions being inadequate. The Supervisory
Board lays down the overall framework for the handling of reserving risk in the insurance policy,
while the overall risk is measured in the capital model. The uncertainty associated with the
calculation of claims reserves affects Tryg’s results through the run-off on reserves.
Long-tailed reserves in particular are subject to interest rate and inflation risk. Interest rate risk is
hedged by means of Tryg’s match portfolio which is aligned to the discounted claims reserves. In
order to manage the inflation risk of claims reserves, Tryg has mitigated the inflation risk through
zero coupon inflation swaps. Tryg determines the claims reserves via statistical methods as well as
assessments of individual claims.
At the end of 2024, Tryg’s claims reserves net of reinsurance totalled DKK 38,059m (DKK 40,705m
in 2023) with an average discounted duration of approximately 5.6 years (5.4 years in 2023) and
average duration undiscounted 8.2 years (7.9 years in 2023).
Sensitivity analysis
DKKm
2024
2023
1% change in inflation on person-related lines of business
+/- 915
+/- 1,325
10% error in the assessment of long-tailed lines of business
(workers' compensation, motor liability, liability, accident)
+/- 2,734
+/- 2,853
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 148
.
-
1
Risk and capital management (continued)
Liability for incurred claims (LIC)
Gross (DKKm)
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total
Estimated accumulated claims
End of year
11,716
13,691
11,894
11,757
12,666
15,118
15,891
16,344
24,949
27,255
27,278
1 year later
12,032
13,625
11,741
11,838
13,372
15,153
15,700
19,909
24,242
26,413
2 year later
11,872
13,594
11,669
12,045
13,336
15,118
16,598
18,275
24,207
3 year later
11,793
13,515
11,797
11,947
13,349
16,028
16,994
18,219
4 year later
11,690
13,545
11,768
11,941
14,121
15,861
17,114
5 year later
11,611
13,526
11,738
12,567
14,001
15,824
6 year later
11,365
13,493
12,188
12,456
13,969
7 year later
11,300
13,888
12,257
12,513
8 year later
11,583
13,816
12,177
9 year later
11,526
13,780
10 year later
11,778
11,778
13,780
12,177
12,513
13,969
15,824
17,114
18,219
24,207
26,413
27,278
193,272
Cumulative payments to date
-10,863
-12,974
-11,202
-11,418
-12,740
-14,318
-14,222
-15,491
-20,861
-20,508
-14,856
-159,453
Provisions before discounting, end of year
916
806
975
1,095
1,229
1,506
2,892
2,727
3,346
5,905
12,422
33,819
Discounting
-150
-154
-191
-208
-232
-274
-593
-464
-422
-513
-717
-3,918
Reserves from 2013 and prior years
8,906
Gross provisions for claims, end of year
38,807
Debt related to Liability for incurred claims (LIC) and other
insurance liabilities
2,139
The amounts in foreign currency in the table are translated to DKK using the exchange rate at 31
December 2024 to prevent the impact of exchange rate fluctuations.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 149
-
1
Risk and capital management (continued)
Asset for incurred claims (AIC)
Ceded business (DKKm)
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total
Estimated accumulated claims
End of year
241
2,016
185
260
530
331
677
510
1,239
1,914
1,460
1 year later
272
1,823
229
354
581
402
752
587
806
1,011
2 year later
269
1,855
223
348
605
422
674
472
761
3 year later
264
1,836
218
358
615
412
618
442
4 year later
271
1,846
214
330
590
351
642
5 year later
267
1,859
214
322
558
426
6 year later
268
1,851
215
251
547
7 year later
268
1,847
215
336
8 year later
270
1,843
212
9 year later
268
1,847
10 year later
498
498
1,847
212
336
547
426
642
442
761
1,011
1,460
8,183
Cumulative payments to date
-257
-1,834
-210
-316
-594
-472
-612
-414
-599
-353
-175
-5,836
Provisions before discounting, end of year
241
12
2
20
-47
-46
30
28
162
658
1,286
2,346
Discounting
-5
0
0
-1
3
6
-2
-3
-5
-13
-37
-57
Reserves from 2013 and prior years
119
Provisions for claims, end of year
2,408
Receivable related to Asset for incurred claims (AIC)
480
The amounts in foreign currency in the table are translated to DKK using the exchange rate at 31
December 2024 to prevent the impact of exchange rate fluctuations.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 150
-
1
Risk and capital management (continued)
Liability for incurred claims (LIC) and Asset for incurred claims (AIC)
Net of reinsurance (DKKm)
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total
Estimated accumulated claims
End of year
11,475
11,675
11,710
11,497
12,136
14,787
15,214
15,834
23,711
25,341
25,818
1 year later
11,760
11,801
11,512
11,484
12,791
14,752
14,948
19,322
23,435
25,401
2 year later
11,603
11,739
11,446
11,698
12,731
14,696
15,925
17,803
23,446
3 year later
11,528
11,680
11,579
11,589
12,734
15,617
16,375
17,777
4 year later
11,419
11,698
11,553
11,611
13,531
15,510
16,472
5 year later
11,345
11,667
11,523
12,245
13,443
15,398
6 year later
11,097
11,642
11,973
12,205
13,422
7 year later
11,031
12,041
12,043
12,177
8 year later
11,313
11,973
11,965
9 year later
11,258
11,934
10 year later
11,280
11,280
11,934
11,965
12,177
13,422
15,398
16,472
17,777
23,446
25,401
25,818
185,090
Cumulative payments to date
-10,606
-11,140
-10,992
-11,102
-12,146
-13,846
-13,610
-15,078
-20,261
-20,154
-14,681
-153,617
Provisions before discounting, end of year
675
794
973
1,075
1,276
1,552
2,862
2,699
3,185
5,247
11,136
31,473
Discounting
-145
-154
-191
-207
-235
-280
-591
-462
-416
-500
-680
-3,861
Reserves from 2013 and prior years
8,787
Provisions for claims, net of reinsurance, end of year
36,400
The amounts in foreign currency in the table are translated to DKK using the exchange rate at 31
December 2024 to prevent the impact of exchange rate fluctuations.
Eiopa yield curves used on all contracts measured under PAA
2024
2023
Currency
1 year
5 years
10 years
20 years
30 years
1 year
5 years
10 years
20 years
30 years
DKK
2.22 %
2.14 %
2.26 %
2.25 %
2.38 %
3.34 %
2.31 %
2.38 %
2.41 %
2.55 %
SEK
2.25 %
2.41 %
2.63 %
2.93 %
3.05 %
3.04 %
2.25 %
2.25 %
2.76 %
2.99 %
NOK
4.30 %
4.00 %
3.94 %
3.81 %
3.70 %
3.99 %
3.31 %
3.21 %
3.26 %
3.30 %
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 151
-
1
Risk and capital management (continued)
Investment risk
The overall framework for managing investment risk is defined by the Supervisory Board in Tryg’s
investment policy. In overall terms, Tryg’s investment portfolio is divided into a match portfolio and
a free portfolio. The match portfolio corresponds to the value of the discounted insurance contracts
liabilities with the purpose of hedging the interest rate sensitivity as closely as possible. Tryg is
monitoring and manage the risk of the Group’s interest rate risk on a daily basis.
The free portfolio is subject to the framework defined by the Supervisory Board through the
investment policy. The strategy of the free portfolio is to support Tryg's dividend policy and ROOF
target. At the end of 2024, investment properties accounted for 5.4% (including property funds) of
the total investment assets.
Tryg operates its insurance business in other currencies than Danish kroner, Tryg is therefore
exposed to currency risk. Tryg is primarily exposed to fluctuations in the other Scandinavian
currencies due to its ongoing insurance activities. Cash flow from insurance revenue and gross
claims in other currencies cause a natural currency hedge, for which reason other risk mitigation
measures are not required for these activities. However, the part of tangible equity held in other
currencies than Danish kroner will be exposed to currency risk. This risk is to a large degree hedged
on an ongoing basis using currency swaps.
In addition to the above-mentioned risks, Tryg is exposed to credit, counterparty and concentration
risk. These risks primarily relate to Tryg’s investments in AAA-rated Nordic and European
government and mortgage bonds. These risks are also managed through the investment policy and
the framework for reinsurance defined in the insurance policy.
.
DKKm
2024
2023
Sensitivity analysis
Interest rates
Effect of 1% increase in interest curve:
NOK:
Impact of interest-bearing securities
-121
-201
Higher discounting of insurance contracts liabilities
124
136
Net effect of interest rate rise
3
-66
SEK:
Impact of interest-bearing securities
-863
-990
Higher discounting of insurance contracts liabilities
1,106
1,301
Net effect of interest rate rise
245
312
DKK, EUR and Other:
Impact of interest-bearing securities
-823
-735
Higher discounting of insurance contracts liabilities
623
620
Net effect of interest rate rise
-201
-115
Equity market
15% decline in equity market
-19
-357
Impact of derivatives and related thereto
0
31
Real estate market
15% decline in real estate markets
-492
-575
Currency market
Equity:
15% decline in exposed currency (exclusive of EUR) relative to DKK
-211
-2,096
Impact of derivatives
211
2,024
Net impact of exchange rate decline
0
-72
Insurance service result per year:
Impact of 15% change in NOK exchange rates relative to DKK
+/- 95
+/- 99
Impact of 15% change in SEK exchange rates relative to DKK
+/- 493
+/- 377
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 152
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1
Risk and capital management (continued)
The notes below are based on Tryg's investment portfolio without the external customers share
DKKm
2024
2023
Bonds portfolio including interest derivatives
Duration 1 year or less
23,308
24,674
Duration 1 - 5 years
20,849
17,904
Duration 5 - 10 years
8,932
12,532
Duration more than 10 years
1,964
1,909
Total
55,053
57,019
Duration
3.2
3.1
The duration is adjusted for options. The adjustment relates to Danish mortgage bonds and reflects
the expected duration-shortening effect of the borrower's option to cause the bond to be redeemed
through the mortgage institution at any point in time.
Equity investments
Equity exposure, including share derivatives and excluding shares related to property exposure, totals
DKK 88m (DKK 2,345 in 2023). Unlisted equity investments are based on an estimated market price.
The share exposure is primarily invested in Nordic countries.
Exposure to currency risk
DKKm
2024
2023
Assets and
debt
Hedge
Exposure
Assets and
debt
Hedge
Exposure
USD
2,221
-2,221
0
6,610
-6,462
148
EURa)
1,868
-208
1,660
2,094
115
2,209
GBP
365
-369
4
437
-410
27
NOK
-542
657
115
2,716
-2,646
70
SEK
-705
599
106
3,213
-3,197
15
Other
69
-75
6
994
-777
217
Total
1,892
2,686
a) Due to correlation between DKK and EUR the exposure limit is higher than all other currencies.
Credit risk
2024
2023
Bond portfolio by ratings
DKKm
%
DKKm
%
AAA
56,776
95.2
54,887
89.6
AA
1,368
2.3
1,710
2.8
A
1,032
1.7
1,055
1.7
BBB
0
0.0
1,007
1.6
BB
0
0.0
550
0.9
B or lower
507
0.8
2,046
3.3
Total
59,683
100.0
61,256
100.0
Reinsurance balances
AAA to A
2,825
97.8
2,922
96.6
Not rated
63
2.2
102
3.4
Total
2,888
100.0
3,024
100.0
The maximum exposure to credit risk from reinsurance contracts is DKK 480m (DKK 410m in 2023).
At 31 December 2024, the maximum exposure to credit risk from insurance contracts totals DKK
2,026m (DKK 1,800m in 2023), which primarily relates to premiums receivable for insurance services
which the Group has already provided.
In 2024 management performed impairment test of the receivables from reinsurance contracts. The
total net impact of write-down and reversed write-down for 2024 amount to DKK 4m (DKK 3m in
2023).
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 153
-
1
Risk and capital management (continued)
Operational risk
Operational risk relates to errors or failures in internal procedures, fraud, breakdown of infrastructure,
IT security and similar factors. Tryg focuses on an adequate control environment for its operations to
mitigate operational risk. In practice, this work is organised by means of procedures, controls and
guidelines covering the various aspects of the Group’s operations. The Supervisory Board defines the
overall framework for managing operational risk in Tryg’s Operational risk policy and in the
Information Security Policy.
A special crisis management structure is set up to deal with the eventuality that Tryg is hit by major
crises.
This comprises a Crisis Management Team at Group level, national contingency teams at country
level and finally business continuity teams in the individual areas. Tryg has prepared contingency
plans to address the most important areas among these ensuring servicing of customers. In
addition, comprehensive IT contingency plans have been established, primarily focusing on the
business critical systems.
Other risks
Strategic risk
The strategic risk is the risk of loss as a result of Tryg’s chosen strategic position. The strategic
position covers both business transactions, IT strategy, choice of business partners and changed
market conditions. Tryg’s strategic position is determined by Tryg’s Supervisory Board in close
collaboration with the Executive Board. Before determining the strategic position, the strategic
decisions are subject to a risk assessment, explaining the risk of the chosen strategy to Tryg’s
Supervisory Board and Executive Board.
Compliance risk
Compliance risk means the risk of Tryg being subject to legal sanctions , authority sanctions,
suffering financial losses or deterioration of reputation due to non-compliance with legislation,
market standards or internal regulations. The Compliance function controls assess and reports
whether Tryg’s methods and procedures for complying with the legislation are reliable and function
effectively. The compliance function conducts a risk assessment annually and identifies the areas to
be reviewed in the coming year. Compliance continuously deals with the identified compliance risks
until they are mitigated and monitors and assesses whether any new risks are being handled. In
addition, the Compliance Function also provides ongoing training in compliance matters, e.g. Code
of conduct and GDPR training as part of our mandatory compliance training courses.
Emerging risk
Emerging risk covers both new risks and already known risks, with changing characteristics. The
management of this type of risk is handled at a strategic level by the Supervisory Board and
Executive Board, and also at an operational level by the individual business areas, which monitor
the market and adapt the products as the conditions change.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 154
-
1
Risk and capital management (continued)
Liquidity risk
Liquidity risk is the risk of loss as a result of not being able to meet payments when they fall due. For a non-life insurance company like Tryg, liquidity risk is practically non-existent, as premium payments
fall due before claims payments. The majority of Tryg’s investment portfolio are placed in AAA or AA rated bonds which can be either sold or repoed in a short-time span.
Maturity of the Group's financial obligations including interest
2024
2023
DKKm
0-1 year
1-5 years
>5 years
Total
0-1 year
1-5 years
>5 years
Total
Subordinated loan capital
181
725
4,719
5,625
169
676
4,721
5,566
Amounts owed to credit institutions
989
0
0
989
2,028
0
0
2,028
Debt relating to unsettled funds transactions and repos
3,684
0
0
3,684
4,645
0
0
4,645
Other debt
6,068
0
0
6,068
7,551
0
0
7,551
Total
10,922
725
4,719
16,366
14,392
676
4,721
19,789
Interest on loans for a perpetual term has been disclosed for the first fifteen years.
DKKm
0-1 year
1-2 years
2-3 years
3-4 years
4-5 years
>5 years
Total
Expected cash flow from Insurance contracts liabilities and assets, not discounted
2024
Liabilities for incurred claims
15,866
5,729
3,622
2,721
2,140
18,207
48,285
Assets for incurred claims
-2,217
-411
-129
-75
-28
-118
-2,978
13,649
5,318
3,493
2,646
2,112
18,089
45,307
2023
Liabilities for incurred claims
17,089
6,386
3,850
2,909
2,271
18,621
51,127
Assets for incurred claims
-2,122
-687
-108
-75
-24
-112
-3,127
14,968
5,698
3,742
2,834
2,247
18,509
47,999
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 155
-
2
Insurance revenue
DKKm
2024
2023
Direct insurance
39,894
39,045
Indirect insurance
80
81
Insurance revenue total
39,974
39,126
Direct insurance, by location of risk
Denmark
18,183
17,347
Other EU countriesa)
13,494
13,591
Other countriesb)
8,217
8,107
39,894
39,045
a) Primarily Sweden
b) Primarily Norway
3
Insurance service result
DKKm
Insurance service
result in
Management's
Review
Reclassificationa)
Income
statement
2024
Insurance revenue
38,596
1,378
39,974
Gross claims
-25,328
-1,378
-26,706
Insurance operating costs
-5,196
-5,196
Insurance service expenses
-30,524
-1,378
-31,902
Expenses from reinsurance contracts held
-1,349
-1,349
Income from reinsurance contracts held
601
601
Net expense from reinsurance contracts
-748
0
-748
Insurance service result
7,324
0
7,324
2023
Insurance revenue
37,135
1,990
39,126
Gross claims
-25,270
-1,990
-27,261
Insurance operating costs
-4,959
-4,959
Insurance service expenses
-30,229
-1,990
-32,219
Expenses from reinsurance contracts held
-1,729
-1,729
Income from reinsurance contracts held
1,222
1,222
Net expense from reinsurance contracts
-507
0
-507
Insurance service result
6,399
0
6,399
a) IFRS 17 requires that Liability for incurred claims (LIC) acquired shall be presented as Insurance revenue. The
reclassification refers to Insurance revenue and Gross claims relating to LIC from the Trygg-Hansa and Codan Norway
acquisition. The presentation would have resulted in an artificial high insurance revenue and Gross claims with no
impact on the Insurance service result. Therefore, Tryg presents Insurance revenue and Gross claims in "Management's
Review" without the above reclassification as it gives a fair view of Insurance revenue, Gross claims as well as key
ratios. This explains the difference between "Management’s Review" and the Financial Statements. Key ratios are
calculated based on the figures presented in "Management's Review".
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 156
-
4
Operating segments
DKKm 2024
Private
Commercial
Corporate
Othera)
Group
Insurance revenue
26,100
9,588
2,908
1,378
39,974
Gross claims
-17,942
-5,186
-2,200
-1,378
-26,706
Insurance operating costs
-3,337
-1,469
-390
0
-5,196
Insurance service expenses
-21,279
-6,654
-2,591
-1,378
-31,902
Net expense from reinsurance
contracts
-323
-579
154
0
-748
Insurance service result
4,498
2,355
472
0
7,324
Net investment result
643
Other income and costs
-1,664
Profit/loss before tax
6,303
Tax
-1,488
Profit/loss for the period
4,816
Run-off gains/losses, net of
reinsurance
592
267
231
0
1,090
Intangible assets
26,683
2,242
0
1,768
30,692
Equity investments in
associates
38
Assets from reinsurance
contracts
207
784
1,548
435
2,974
Other assets
70,671
Total assets
104,376
Insurance contracts liabilities
28,876
11,236
8,443
-1,586
46,969
Other liabilities
18,542
Total liabilities
65,512
Non-current assets by country
2024
2023
Denmark
6,776
6,806
Norway
1,510
1,642
Sweden
23,350
24,657
Other
8
8
Total
31,643
33,112
DKKm 2023
Private
Commercial
Corporate
Othera)
Group
Insurance revenue
24,455
9,178
3,502
1,990
39,126
Gross claims
-17,305
-5,517
-2,448
-1,990
-27,261
Insurance operating costs
-3,074
-1,454
-430
0
-4,959
Insurance service expenses
-20,379
-6,972
-2,878
-1,990
-32,219
Net expense from reinsurance
contracts
-276
-197
-34
0
-507
Insurance service result
3,800
2,010
590
0
6,399
Net investment result
631
Other income and costs
-2,001
Profit/loss before tax
5,029
Tax
-1,178
Profit/loss for the period
3,851
Run-off gains/losses, net of
reinsurance
268
315
517
0
1,099
Intangible assets
28,089
2,584
0
1,314
31,987
Equity investments in
associates
54
Assets from reinsurance
contracts
239
946
1,575
300
3,060
Other assets
77,839
Total assets
112,940
Insurance contracts liabilities
29,595
11,999
8,898
-1,029
49,463
Other liabilities
23,126
Total liabilities
72,589
a) The 'Other' segment in the profit/loss includes insurance revenue and gross claims arising from the Trygg-Hansa and Codan
Norway acquisition. Please refer to note 3 Insurance service result and Accounting policies for further description. The assets
from reinsurance contracts and provisions for insurance contracts allocated to the segment pertain to debts and receivables
from insurance contracts. Other assets and liabilities are managed at Group level and are not allocated to the individual segments
but are included under 'Other'.
Description of segments
Please refer to the accounting policies, note 33, for a description of operating segments.
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 157
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5
Insurance service result by geography
DKKm
2024
2023
Danish general insurance
Insurance revenue
18,207
17,396
Insurance service result
3,323
3,200
Run-off gains/losses, net of reinsurance
286
631
Key ratios
Gross claims ratio
65.0
66.5
Net reinsurance ratio
2.7
1.8
Claims ratio, net of reinsurance
67.7
68.3
Expense ratio
14.1
13.3
Combined ratio
81.7
81.6
Run-off, net of reinsurance (%)
-1.6
-3.6
Number of full-time employees, end of period
3,154
3,423
Norwegian general insurance
NOK/DKK, average rate for the period
64.30
65.37
Insurance revenue
8,282
7,962
Insurance service result
636
662
Run-off gains/losses, net of reinsurance
114
188
Key ratios
Gross claims ratio
76.3
73.8
Net reinsurance ratio
3.1
4.6
Claims ratio, net of reinsurance
79.5
78.4
Expense ratio
12.9
13.3
Combined ratio
92.3
91.7
Run-off, net of reinsurance (%)
-1.4
-2.4
Number of full-time employees, end of period
1,318
1,350
DKKm
2024
2023
Swedish general insurance
SEK/DKK, average rate for the period
65.33
64.88
Insurance revenue
11,796
11,512
Insurance service result
3,284
2,511
Run-off gains/losses, net of reinsurance
675
266
Key ratios
Gross claims ratio
60.5
67.2
Net reinsurance ratio
-1.2
-2.3
Claims ratio, net of reinsurance
59.3
64.9
Expense ratio
12.8
13.3
Combined ratio
72.2
78.2
Run-off, net of reinsurance (%)
-5.7
-2.3
Number of full-time employees, end of period
2,085
1,973
Other European countriesa)
Insurance revenue
311
265
Insurance service result
81
27
Run-off gains/losses, net of reinsurance
14
14
Number of full-time employees, end of period
65
59
Otherb)
Insurance revenue
1,378
1,990
Insurance service expenses
-1,378
-1,990
Insurance service result
0
0
a) Comprises credit & surety insurance (Tryg Trade) in European countries besides Denmark, Norway and Sweden.
b) Reclassification relating to claims provisions from the Trygg-Hansa and Codan Norway acquisition. Please refer to
note 3 Insurance service result and Accounting policies for further description.
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 158
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5
Insurance service result by geography (continued)
DKKm
2024
2023
Group (Total)
Insurance revenue
39,974
39,126
Insurance service result
7,324
6,399
Net investment result
643
631
Other income and costs
-1,664
-2,001
Profit/loss before tax
6,303
5,029
Run-off gains/losses, net of reinsurance
1,090
1,099
Key ratios
Gross claims ratio
65.6
68.0
Net reinsurance ratio
1.9
1.4
Claims ratio, net of reinsurance
67.6
69.4
Expense ratio
13.5
13.4
Combined ratio
81.0
82.8
Run-off, net of reinsurance (%)
-2.8
-3.0
Number of full-time employees, end of period
6,621
6,805
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 159
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6
Insurance service result by line of business
Accident and health
Health care
Worker's compensation
Motor TPL
Motor comprehensive
insurance
Marine, aviation and
cargo insurance
DKKm
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Gross premiums written
6,702
6,223
1,058
905
1,052
1,034
2,742
2,910
9,430
8,611
193
199
Insurance revenue
6,603
6,171
1,034
880
1,046
1,040
2,779
2,885
9,153
8,699
194
252
Gross claims
-3,361
-3,499
-772
-561
-549
5
-1,937
-1,775
-7,088
-6,601
-62
-217
Insurance operating costs
-805
-787
-135
-109
-132
-144
-430
-405
-1,262
-1,237
-33
-30
Net expense from reinsurance contracts
5
-13
0
0
-7
-9
17
-30
-89
-88
-59
31
Insurance service result
2,442
1,872
127
209
358
892
430
676
715
772
41
35
Gross claims ratio
50.9 %
56.7 %
74.6 %
63.8 %
52.5 %
-0.5 %
69.7 %
61.5 %
77.4 %
75.9 %
31.9 %
86.3 %
Combined ratio
63.0 %
69.7 %
87.7 %
76.2 %
65.7 %
14.2 %
84.5 %
76.6 %
92.2 %
91.1 %
79.1 %
86.1 %
Claims frequencya)
7.9 %
6.8 %
40.0 %
37.0 %
9.8 %
13.7 %
4.9 %
5.9 %
36.6 %
32.0 %
14.4 %
27.4 %
Average claims DKKb)
13,732
12,517
4,951
5,058
107,000
66,231
16,516
13,033
7,905
8,025
42,032
33,525
Total claims
278,162
252,439
156,821
132,998
6,570
9,509
116,801
148,916
866,173
814,423
3,078
6,411
Fire and contents
(Private)
Fire and contents
(Commercial)
Change of ownership
Liability insurance
Credit and guarantee
insurance
Tourist assistance
insurance
DKKm
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Gross premiums written
8,792
8,116
4,470
4,501
19
3
1,774
1,804
902
807
1,263
1,123
Insurance revenue
8,652
8,195
4,384
4,438
15
7
1,714
1,762
900
809
1,222
1,140
Gross claims
-6,049
-6,192
-2,544
-3,545
-7
-1
-880
-778
-165
-429
-991
-947
Insurance operating costs
-1,197
-1,081
-627
-605
0
-3
-258
-260
-134
-121
-132
-127
Net expense from reinsurance contracts
-289
-221
-99
15
0
0
124
-70
-340
-109
-2
-1
Insurance service result
1,116
701
1,115
303
8
3
700
653
262
150
97
65
Gross claims ratio
69.9 %
75.6 %
58.0 %
79.9 %
44.1 %
14.9 %
51.4 %
44.2 %
18.3 %
53.0 %
81.1 %
83.1 %
Combined ratio
87.1 %
91.4 %
74.6 %
93.2 %
44.4 %
59.3 %
59.1 %
62.9 %
70.9 %
81.4 %
92.0 %
94.3 %
Claims frequencya)
6.9 %
8.0 %
11.1 %
10.7 %
2.3 %
2.8 %
5.6 %
5.7 %
0.3 %
0.3 %
25.7 %
23.5 %
Average claims DKKb)
11,041
11,060
58,909
69,622
23,994
21,979
63,587
65,556
903,763
931,454
5,484
5,611
Total claims
554,223
569,227
50,548
50,804
252
202
15,176
15,216
653
834
194,102
179,864
a) The claims frequency is calculated as the number of claims in the year in proportion to the average number of insurance contracts in the year.
b) Average claims are total claims before run-off in the year relative to the number of claims in the year.
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 160
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6
Insurance service result by line of business (continued)
Otherc)
Total exclusive of Group
Lifef)
Group Life, one-year
policiesd-e)
Totalf)
DKKm
2024
2023
2024
2023
2024
2023
2024
2023
Gross premiums written
0
0
38,397
36,236
918
890
39,315
37,126
Insurance revenue
1,378
1,990
39,075
38,267
900
859
39,974
39,126
Gross claims
-1,378
-1,990
-25,783
-26,530
-924
-730
-26,706
-27,261
Insurance operating costs
0
0
-5,144
-4,911
-52
-48
-5,196
-4,959
Net expense from reinsurance contracts
0
0
-737
-495
-11
-11
-748
-507
Insurance service result
0
0
7,411
6,330
-87
69
7,324
6,399
Gross claims ratio
64.7 %
67.6 %
102.6 %
85.0 %
65.6 %
68.0 %
Combined ratio
80.3 %
82.6 %
109.7 %
91.9 %
81.0 %
82.8 %
c) Please refer to note 4 regarding "Other".
d) Group Life one-year policies related to Norwegian Group Life and Alka Group Life.
e) Claims prevention cost totalled 1% of claims cost ( 1% in 2023) and primarily related to Fire & contents (Private) but also Fire and contents (Commercial), Healthcare, Motor comprehensive and Accident and health.
f) Key ratios are calculated based on the figures used in “Management’s Review” excluded amounts under "Other".
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 161
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7
Insurance service expenses
DKKm
2024
2023
Gross claims
-26,706
-27,261
Insurance operating costs
Commissions regarding direct insurance contracts
-409
-410
Other acquisition costs
-3,122
-2,957
Total acquisition costs
-3,531
-3,367
Administration expenses
-1,665
-1,592
Insurance operating costs, gross
-5,196
-4,959
Insurance service expenses
-31,902
-32,219
Fees to the auditors recognised in insurance service expenses
PricewaterhouseCoopers, appointed by the annual general meeting
-9
-11
-9
-11
The fee is divided into:
Statutory audit
-6
-7
Other audit assignments
-1
-1
Tax advice
-1
-1
Other services
0
-2
-9
-11
Fees for non-audit services provided by PricewaterhouseCoopers to the Group amount to DKK 1m
(DKK 3m in 2023) and consists of general advice related to tax, accounting and ESG.
DKKm
2024
2023
Insurance operating costs, gross, classified by type
Commissions
-366
-410
Staff expenses
-3,223
-2,799
Other staff expenses
-236
-200
Office expenses, fees and headquarter expenses
-1,083
-1,212
IT operating and maintenance costs, software expenses
-421
-487
Depreciation, amortisation and impairment losses and write-downs
-185
-132
Other income
318
281
-5,196
-4,959
Please refer to note 15 and note 28 for leases recognised according to IFRS 16.
Total staff expenses recognised in income statement
Salaries and wages
-4,291
-4,039
Commissions
0
-2
Recognised expenses related to conditional and matching shares
-58
-79
Pension, contribution plans
-623
-663
Other social security costs and payroll tax
-924
-915
-5,896
-5,698
Please refer to note 30 for specification of Remuneration for the Supervisory Board and Executive
Board.
Average number of full-time employees during the year
6,758
6,784
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 162
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8
Interest and dividends
DKKm
2024
2023
Interest income and dividends
Dividends
155
149
Interest income, bonds
1,426
1,427
Interest income, other
52
47
1,633
1,624
Interest expenses
Interest expenses subordinated loan capital, credit Institutions and cash at
bank
-181
-195
Interest expenses, other
-211
-149
-392
-344
1,241
1,280
9
Value adjustments
Value adjustments concerning financial assets or liabilities at fair value
with value adjustment in the income statement:
Equity investments
-261
-550
Unit trust units
751
765
Bondsa)
295
642
Derivatives (Equity, interest, currency and inflation)
-111
713
673
1,571
Value adjustments concerning assets or liabilities that cannot be
attributed to IFRS 9:
Investment property
-28
96
Other statement of financial position itemsb)
-86
6
-114
103
559
1,674
a) Value adjustment on financial instruments designated at fair value through profit or loss amounts DKK 259m (DKK 572m in
2023)
b) Exchange rate adjustments concerning financial assets or liabilities which cannot be stated at fair value total DKK 57m (DKK
17m in 2023)
10
Net finance income/expenses from insurance contracts
DKKm
2024
2023
Changed discount rate
102
-912
Unwinding
-1,125
-1,285
Exchange rate adjustment from insurance contracts
7
7
-1,016
-2,190
11
Net finance income/expenses from reinsurance contracts
Changed discount rate
11
7
Unwinding
75
78
Exchange rate adjustment from reinsurance contracts
39
-1
124
84
12
Other income and costs
Include income and costs which cannot be directly ascribed to the insurance portfolio or investment
assets.
Other income
Income related to the sale of non-insurance products
121
115
Other income
11
31
132
145
Other costs
Amortisation of customer relations
-934
-968
Integration and restructuring costs related to RSA Scandinavia
0
-300
Costs related to the sale of non-insurance products
-153
-162
Other costsa)
-709
-717
-1,796
-2,147
-1,664
-2,001
a) Hereof DKK 58m related to IT investments and DKK 123m related to restructuring costs in 2024 (DKK 180m in 2023).
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 163
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13
Tax
DKKm
2024
2023
Tax on accounting profit/loss
1,639
1,268
Difference between Danish and foreign tax rates
-141
-56
Tax adjustment, previous years
-17
-64
Adjustment of non-taxable income and costs
5
17
Change in valuation of tax assets
0
4
Change in tax rate
0
8
Other taxes
1
0
1,488
1,178
Effective tax rate
%
%
Tax on accounting profit/loss
26.0
25.2
Difference between Danish and foreign tax rates
-2.2
-1.1
Tax adjustment, previous years
-0.3
-1.3
Adjustment of non-taxable income and costs
0.1
0.3
Change in valuation of tax assets
0.0
0.1
Change in tax rate
0.0
0.2
Other taxes
0.0
0.0
23.6
23.4
Current tax
Tax in the income statement comprises current and deferred tax. Taxes are recognised through
profit/loss, except for items recognised directly in equity or other comprehensive income, in which
case the tax effect will also be recognised for those items.
Current tax is calculated based on the relevant tax rate for each country.
Tax is adjusted by any tax related to previous periods.
DKKm
2024
2023
Net current tax at 1 January
-192
770
Exchange rate adjustments
5
10
Current tax for the year
-1,895
-1,277
Current tax on changes in equity
-68
-33
Adjustments of current tax in respect of previous years
-58
28
Tax paid for the year
1,365
310
Net current tax at 31 December
-844
-192
Current tax is recognised in the statement of financial
position as follows:
Assets, current tax
43
197
Liabilities, current tax
-887
-389
Net current tax at 31 December
-844
-192
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 164
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13
Tax (continued)
2024
2023
DKKm
Profit/loss
before tax
Corporate
tax paid Other taxes
Profit/loss
before tax
Corporate
tax paid Other taxes
Denmark
2,658
707
2,324
2,575
268
2,236
Norway
954
249
1,378
833
78
1,529
Sweden
2,615
405
930
1,597
-26
904
Other countries
76
3
45
23
-9
44
Total
6,303
1,365
4,676
5,029
310
4,713
The figures below illustrates financial result before tax compared to actual tax payments for other
countries.
Finland
38
-1
18
34
-15
21
Germany
40
4
13
12
6
12
Netherlands
1
0
4
-5
0
3
Austria
9
0
3
2
0
3
Switzerland
-1
0
1
-6
0
1
Belgium
-2
0
1
-5
0
1
UK
-5
0
2
-8
0
2
Ireland
-3
0
2
-1
0
0
Total
76
3
45
23
-9
44
Activities in these other countries consist of Tryg’s Credit & Surety business, Tryg Trade.
Due to local tax regulations, there may be variations in the timing of tax payments between the
countries. Corporate tax payment for the year is the actual payments (related to current and previous
years) during the year made to the respective countries. Therefore, there may be a difference in the
accrual of the profit/loss before tax for the year and the actual tax paid.
Tryg Group also pays other taxes consisting of employer/social taxes, insurance premium taxes and
consumption taxes, such as VAT. These are specified in the figures in the next table.
2024
DKKm
Employer
taxes
Employee
taxes
Insurance
premium
taxes
VAT
Total
Denmark
424
1,151
684
64
2,324
Norway
170
234
941
33
1,378
Sweden
267
331
212
119
930
Other
9
18
17
0
45
Total
871
1,735
1,854
217
4,676
2023
Denmark
476
967
727
65
2,236
Norway
194
239
1,042
54
1,529
Sweden
252
314
256
82
904
Other
8
16
21
0
44
Total
929
1,537
2,046
202
4,713
Global minimum tax regime
The Group has applied the mandatory exception for recognition and disclosure about deferred
tax asset and liabilities related to Pillar II income taxes.
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 165
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14
Intangible assets
DKKm 2024
Goodwill
Trademarks
and
customer
relations
Softwarea)
Assets
under
construc-
tiona)
Total
Cost
Cost at 1 January
20,693
12,332
2,861
559
36,445
Exchange rate adjustments
-556
-354
-34
-8
-952
Transferred from assets under
construction to software
0
0
391
-391
0
Additions for the year
0
37
264
555
856
Disposals for the year
0
0
-307
0
-307
Cost at 31 December
20,137
12,015
3,175
715
36,041
Amortisation and write-downs
Amortisation and write-downs at
1 January
-129
-2,223
-2,106
0
-4,459
Exchange rate adjustments
0
54
21
0
76
Amortisation for the year
0
-929
-290
0
-1,219
Impairment losses and write-
downs for the year
0
0
-42
0
-42
Reversed amortisation
0
0
295
0
295
Amortisation and write-downs
at 31 December
-129
-3,098
-2,122
0
-5,350
Carrying amount at 31
December
20,008
8,917
1,053
715
30,692
DKKm 2023
Goodwill
Trademarks
and
customer
relations
Softwarea)
Assets
under
construc-
tiona)
Total
Cost
Cost at 1 January
20,673
12,287
2,597
369
35,926
Exchange rate adjustments
-9
45
-31
-5
-1
Transferred from assets under
construction to software
0
0
262
-262
0
Additions for the year
29
0
45
458
531
Disposals for the year
0
0
-12
-1
-13
Cost at 31 December
20,693
12,332
2,861
559
36,445
Amortisation and write-downs
Amortisation and write-downs at
1 January
-104
-1,254
-1,851
0
-3,209
Exchange rate adjustments
4
-2
18
0
21
Amortisation for the year
0
-967
-274
0
-1,241
Impairment losses and write-
downs for the year
-29
0
-4
0
-33
Reversed amortisation
0
0
6
0
6
Amortisation and write-downs
at 31 December
-129
-2,223
-2,106
0
-4,459
Carrying amount at 31
December
20,564
10,110
755
559
31,987
a) Hereof proprietary software and assets under construction DKK 586m (DKK 522m at 31 December 2023)
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 166
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14
Intangible assets (continued)
Impairment test
Goodwill
The value-in-use method is used when testing the Goodwill for impairment.
Primary assumptions for impairment test:
When assessing the cash flow management has based its estimates of insurance revenue on the
insurance portfolio adjusted to reflect the expected effect of business decisions and market
development from past experiences. Management have identified CAGR and Combined ratio as the
main drivers for cash flow. It is based on experience and no external data sources is used besides to
determine the required return. The portfolio is indexed with the wage index. Gross claims are based
on expected claims ratios, which corresponds to normalised large- and weather claims. Reinsurance
is taken into account when looking at the overall insurance service result together with the expected
expense ratio. Required returns are based on management’s requirements for returns of the
individual cash generation units and are not expected to change significantly in the near future.
DKKm Material goodwill
Carrying
amount, end
of year
Alka
4,242
Trygg-Hansa and Moderna
14,551
Codan Norway
1,026
Alka
In 2018, Tryg acquired Forsikrings-Aktieselskabet Alka. The insurance activities were incorporated
into the Tryg Group’s business structure from 8 November 2018. Comprises the sale of insurance
products to customers under the ‘Alka’ brand.
At 31 December 2024, management performed an impairment test of the carrying amount of
goodwill based on the allocation of the cost of goodwill to the cash-generating unit.
The cash flows appearing from the latest prognosis approved by management for the next 6 quarters
are used when calculating the value in use of Private Denmark. The cash flows in the latest prognosis
period have been extrapolated for financial years after the prognosis periods (terminal period) and
adjusted for expected growth rates determined on the basis of expectations for the general
economic growth. The required return is based on an assessment of the risk profile of the tested
business activities compared with the market’s expectations for the Group.
The impairment test shows a calculated value in use of approximately DKK 33.2bn (DKK 27.2bn at
31 December 2023) relative to the value of the CGU of DKK 16.6bn (DKK 15.4bn at 31 December
2023) and does not indicate any impairment in 2024. Goodwill amounts to DKK 4.2bn (DKK 4.2bn at
31 December 2023).
According to the sensitivity information below a change in the required return rate will have the
highest effect on the equity. An increase in the required return of approx. 3.2% will result in a write
down of goodwill.
2024
2023
- Earned premium assumed CAGR 0 - 10 years
3 %
3 %
- Earned premium assumed CAGR > 10 years (terminal period)
2 %
2 %
- Required return before tax
8 %
10 %
- Expected level of combined ratio
82 %
81 %
Sensitivity information
Impact on the calculated present value from the following changes:
CAGR + 1.0 percentage point (0-10 years)
+1.4bn
+1.1bn
CAGR - 1.0 percentage point (0-10 years)
-1.3bn
-1.0bn
Required return +1.0 percentage point
-5.2bn
-3.8bn
Required return -1.0 percentage point
+7.6bn
+5.2bn
Combined ratio +1.0 percentage point
-1.7bn
-1.3bn
Combined ratio -1.0 percentage point
+1.7bn
+1.3bn
The above changes have no impact on equity
Norway
In 2022, Tryg acquired the Norwegian branch Codan Norway. The insurance activities were
incorporated into the Tryg Group’s business structure from 1 April 2022 and distributed under the
Tryg Brand.
In 2017, Tryg acquired Obos’ insurance portfolio. The insurance activities were incorporated into the
Tryg Group’s business structure from 1 June 2017.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 167
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14
Intangible assets (continued)
At 31 December 2024, management performed an impairment test of the carrying amount of
goodwill based on the allocation of the cost of goodwill to the cash-generating unit. The cash flows
appearing from the latest prognosis approved by management for the next 6 quarters are used when
calculating the value in use of Private Norway. The cash flows in the prognosis period have been
extrapolated for financial years after the prognosis periods (terminal period) and adjusted for
expected growth rates determined on the basis of expectations for the general economic growth.
The required return is based on an assessment of the risk profile of the tested business activities
compared with the market’s expectations for the Group.
The impairment test shows a calculated value in use of approximately DKK 8.9bn (DKK 8.1bn at 31
December 2023) relative to the value of the CGU of DKK 4.5bn (DKK 3.8bn at 31 December 2023)
and does not indicate any impairment in 2024. Goodwill amounts to DKK 1.1bn (DKK 1.1bn at 31
December 2023).
According to the sensitivity information below a change in the required return rate will have the
highest effect on the equity. An increase in the required return of approx. 4.1% will result in a write
down of goodwill.
2024
2023
- Earned premium assumed CAGR 0 - 10 years
3 %
3 %
- Earned premium assumed CAGR > 10 years (terminal period)
1 %
2 %
- Required return before tax
11 %
11 %
- Expected level of combined ratio
88 %
88 %
Sensitivity information
Impact on the calculated present value from the following changes:
CAGR + 1.0 percentage point (0-10 years)
+0.2bn
+0.2bn
CAGR - 1.0 percentage point (0-10 years)
-0.2bn
-0.2bn
Required return +1.0 percentage point
-1.1bn
-1.0bn
Required return -1.0 percentage point
+1.4bn
+1.3bn
Combined ratio +1.0 percentage point
-0.8bn
-0.8bn
Combined ratio -1.0 percentage point
+0.8bn
+0.8bn
The above changes have no impact on equity
Sweden
In 2022, Tryg acquired the Swedish branch Trygg-Hansa. The insurance activities were incorporated
into the Tryg Group’s business structure from 1 April 2022 and distributed under the Trygg-Hansa
Brand.
In 2016, Tryg acquired Skandia’s child and adult accident insurance portfolio. The insurance activities
were incorporated into the Tryg Group’s business structure from 1 September 2016.
At 31 December 2024, management performed an impairment test of the carrying amount of
goodwill based on the allocation of the cost of goodwill to the cash-generating unit. The Trygg-Hansa
portfolio consists from 1 April 2022 of Trygg-Hansa, Moderna, Securator and Skandia, considered as
one cash-generating unit. The reason behind the the single cash-generating unit, is that they are all
managed together as part of the Swedish private business and reported as part of the operating
segment “Private”.
Private Sweden comprises the sale of insurance products to private customers under the ‘Trygg-
Hansa’ brand. Moreover, insurance is sold under the brands Atlantica, Bilsport & MC and Moderna
Djurförsäkringar. Sales take place through its own sales force, call centres and online.
The cash flows appearing from the latest prognosis approved by management for the next 6 quarters
are used when calculating the value in use of “Sweden”. The cash flows in the latest prognosis period
have been extrapolated for financial years after the prognosis periods (terminal period) and adjusted
for expected growth rates determined on the basis of expectations for the general economic growth.
The required return is based on an assessment of the risk profile of the tested business activities
compared with the market’s expectations for the Group.
The impairment test shows a calculated value in use of approximately DKK 43.8bn (DKK 35.8bn at
31 December 2023) relative to the value of the CGU of DKK 26.9bn (DKK 27.6bn at 31 December
2023) and does not indicate any impairment in 2024. Goodwill amount to DKK 14.6bn (DKK 15.1bn
at 31 December 2023).
According to the sensitivity information below a change in the required return rate will have the
highest effect on the equity. An increase in the required return of approx. 2.0% will result in a write
down of goodwill.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 168
-
14
Intangible assets (continued)
2024
2023
- Earned premium assumed CAGR 0 - 10 years
3 %
3 %
- Earned premium assumed CAGR > 10 years (terminal period)
3 %
3 %
- Required return before tax
8 %
10 %
- Expected level of combined ratio
81 %
79 %
Sensitivity information
Impact on the calculated present value from the following changes:
CAGR + 1.0 percentage point (0-10 years)
+2.1bn
+1.6bn
CAGR - 1.0 percentage point (0-10 years)
-2.0bn
-1.5bn
Required return +1.0 percentage point
-8.3bn
-5.7bn
Required return -1.0 percentage point
+13.8bn
+8.4bn
Combined ratio +1.0 percentage point
-2.2bn
-1.7bn
Combined ratio -1.0 percentage point
+2.2bn
+1.7bn
The above changes have no impact on equity
Trademarks and customer relations
As at 31 December 2024 management performed an assessment of the carrying amounts of
customer relations as an integrated part of the impairment test of goodwill in Sweden, Norway and
Alka portfolio.
Alka and Trygg-Hansa trademarks have indefinite useful lifetimes as the trademarks are one of the
most well-known trademarks in their respective countries and comprise the sale of insurance
products to customers under their brand.
Material trademarks and customer relations
2024
(DKKm)
2023
(DKKm)
Amortisation
period
(years)
Remaining
amortisation
(years)
Trygg-Hansa
Trademark
2,484
2,569
n/a
n/a
Customer relations (Private)
4,892
5,757
10
7
Customer relations (Commercial)
538
688
7
4
Alka
Trademark
603
603
n/a
n/a
Software and assets under construction
As at 31 December 2024 management performed a test of the carrying amounts of software and
assets under construction.
The impairment test compares the carrying amount with the estimated present value of future cash
flows. The test did indicate an impairment of DKK 42m (DKK 4m at 31 December 2023) of it
systems, due to higher related costs and some lower expected systems benefits, a write-down has
been recognised. The cost is recognised as write-downs under insurance service expenses in the
income statement.
Assets under construction are not amortised but tested once a year for impairment or when if any
indication of a decrease in value.
Software is assessed for impairment at the balance sheet date or when there are indications that the
future cash flow cannot justify the carrying amount. If the recoverable amount is lower than the
carrying amount, the difference is recognised in the income statement.
The recoverable amount is the higher of fair value less sales costs and value in use.
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 169
-
15
Property, plant and equipment
DKKm 2024
Operating
equipment
Leases ROU
equipmenta)
Leases ROU
Group-
occupied
propertyb)
Total
Cost
Cost at 1 January
324
105
1,611
2,040
Exchange rate adjustments
-3
0
-33
-36
Additions for the year
9
37
5
51
Disposals for the year
-96
-6
-54
-155
Cost at 31 December
234
136
1,530
1,900
Accumulated depreciation and value
adjustments
Accumulated depreciation and value
adjustments at 1 January
-141
-98
-676
-915
Exchange rate adjustments
1
0
15
16
Depreciation for the year
-26
-15
-156
-197
Reversed depreciation and value adjustments
95
5
46
146
Accumulated depreciation and value
adjustments at 31 December
-70
-109
-771
-950
Carrying amount at 31 December
164
28
759
951
DKKm 2023
Operating
equipment
Leases ROU
equipmenta)
Leases ROU
Group-
occupied
propertyb)
Total
Cost
Cost at 1 January
295
105
1,203
1,603
Exchange rate adjustments
-2
0
-16
-19
Additions for the year
56
0
424
481
Disposals for the year
-25
0
0
-25
Cost at 31 December
324
105
1,611
2,040
Accumulated depreciation and value
adjustments
Accumulated depreciation and value
adjustments at 1 January
-133
-89
-510
-732
Exchange rate adjustments
1
0
9
10
Depreciation for the year
-23
-9
-175
-207
Reversed depreciation and value adjustments
15
0
0
15
Accumulated depreciation and value
adjustments at 31 December
-141
-98
-676
-915
Carrying amount at 31 December
183
7
935
1,125
a) Lease assets (ROU) equipment only consists of leases of vehicles with a lease term of three to four years. The monthly
amounts are fixed and there is no option for purchase or extension. Short term leases are not recognised as right-of-use assets.
b) Lease assets (ROU) Group occupied property consists of leases of office buildings. Contract terms are from 1 to 20 years and
with yearly rent adjustments. Tryg has no lease contracts with variable lease payments based on sale or similar. Refer to note 28
for lease liabilities.
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 170
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16
Investment property
DKKm
2024
2023
Fair value at 1 January
498
1,017
Exchange rate adjustments
0
-30
Additions for the year
0
0
Disposals for the year
-38
-588
Value adjustment for the yeara)
-31
99
Total
429
498
a) Value adjustment recognised in the income statement for investment property held at the statement of financial position date
amounts DKK -28m (DKK -31m in 2023)
•
Total rental income amounts to DKK 31m (DKK 46m in 2023)
•
Total expenses amounts to DKK 7m (DKK 9m in 2023).
External experts were involved in valuing the majority of the investment properties.
Please refer to note 18 for a description of fair value measurement of investment properties.
Return percentages, weighted average (%)
Business property
0.0
7.5
Office property
7.1
6.5
Residential property
5.7
5.0
Total
6.2
5.7
Sensitivity
The valuation of investment property is based on the market-based rental income and operating
expenses of the individual property relative to the required rate of return. The most important factors
impacting the valuations are the applied rates of return, annual net rental income and occupancy
rates. The average rates of return applied are stated above.
Impacts on the fair value of investment property (DKKm)
Increase in applied rate of return of 0.25%
-17
-20
Decrease in applied rate of return of 0.25%
18
22
Decrease in net rental income of 3%
-13
-15
Decrease in occupancy rate of 3%
-2
-3
17
Equity investment in associates
DKKm
2024
2023
Cost
Cost at 1 January
300
396
Additions for the year
52
69
Disposals for the year
-21
-165
Cost at 31 December
330
300
Revaluations at net asset value
Revaluation at 1 January
-246
-175
Profit/loss for the year
-46
-72
Revaluations at 31 December
-292
-246
Carrying amount at 31 December
38
54
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 171
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18
Financial assets
DKKm
2024
2023
Financial assets
Financial assets held for trading
21,111
20,641
Financial assets designated at fair valuea)
44,235
50,593
Derivative financial instruments at fair value used for hedge accounting
7
0
Financial assets measured at amortised costb)
2,587
3,626
Total financial assets
67,940
74,859
Financial liabilities
Derivative financial instruments at fair value with value adjustments in
income statement
1,018
1,431
Derivative financial instruments at fair value with value adjustments in
other comprehensive income
30
348
Financial liabilities at amortised cost
14,534
17,643
Total financial liabilities
15,583
19,422
a) Financial assets designated at fair value comprise bonds in the match portfolio.
b) Financial assets at amortised cost only deviate to a minor extent from fair value
Please refer to note 22 for valuation of subordinated loan capital at fair value. Other financial
liabilities measured at amortised cost only deviate to a minor extent from fair value.
The Fair value hierarchy
Quoted market prices (level 1) consists of financial instruments that are quoted and traded in a
principal and active market (markets generally accessible and with substantial volume and trade
frequency).
Valuation based on observable input (level 2) consists of financial instruments that are valued
substantially on the basis of observable input other than quoted prices for the instrument itself. If a
financial instrument is quoted in a market that is not active, Tryg bases its measurement on the most
recent transaction price adjusted for subsequent changes to market conditions, for instance, by
including transactions in similar financial instruments that are assumed to be motivated by normal
business considerations.
For a number of financial assets and liabilities, no market exists. In such cases, Tryg uses recent
transactions in similar instruments and discounted cash flows or other generally accepted estimation
and valuation techniques based on market conditions at the statement of the financial position date
to calculate an estimated value. This category covers instruments such as derivatives valued on the
basis of observable yield curves and exchange rates and illiquid mortgage bonds valued by reference
to the value of similar liquid bonds. Equity investments includes private equity with underlying real
estate.
Tryg has assessed whether quoted prices does represent fair value at the measurement date. Thus
quoted prices derived from a brokered market are considered Level 2 input.
Valuation based on significant non-observable input (level 3) consists of certain financial instruments
based substantially on non-observable input. Such instruments includes a limited amount of unlisted
shares and some unlisted bonds. The fair value of Investment property is also based on non-
observable input. Please refer to note 16 Investment property and accounting policies section
Investment property.
If, at the statement of the financial position date, a financial instrument’s classification differs from its
classification at the beginning of the year the changes are considered to have taken place at the
statement of the financial position. Developments in the financial markets can result in
reclassifications between the categories. Some bonds have become illiquid and have therefore been
moved from Quoted prices to the Observable input category, while other bonds have become liquid
and have been moved from Observable input to the Quoted prices category.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 172
-
18
Financial assets (continued)
Fair value hierarchy for financial instruments and investment property measured at fair value in the
statement of financial position.
DKKm 2024
Quoted
prices
Observable
input
Non-
observable
input
Total
Investment property
0
0
429
429
Equity investments
102
3,676
58
3,836
Unit trust units
1,138
0
30
1,168
Bonds
30,066
29,621
0
59,687
Derivative financial instruments, assets
0
661
0
661
Derivative financial instruments, debt
0
-1,048
0
-1,048
31,306
32,910
517
64,733
2023
Investment property
0
0
498
498
Equity investments
142
3,699
97
3,939
Unit trust units
6,966
1,194
32
8,192
Bonds
26,564
30,128
373
57,065
Derivative financial instruments, assets
9
2,029
0
2,038
Derivative financial instruments, debt
0
-1,779
0
-1,779
33,681
35,271
1,001
69,952
Bonds measured on the basis of observable inputs consist of Norwegian and Swedish bonds issued
by banks and to some extent Danish semi-liquid bonds, where no quoted prices based on actual
trades are available. External experts were involved in the valuation of the majority of the investment
properties.
DKKm
2024
2023
Financial instruments transferred from "Quoted prices" to "Observable
input"
1,287
11,521
Financial instruments transferred from "Observable input" to "Quoted
prices"
611
0
Transfers between the categories quoted prices and observable input mainly result from bonds that
are reclassified either due to traded volume or the number of days between last transaction and the
time of determination.
DKKm
2024
2023
Financial instruments measured at fair value in the statement of financial
position on the basis of non-observable input:
Carrying amount at 1 January
1,001
1,145
Exchange rate adjustments
3
-29
Gains/losses in the income statement
-21
101
Purchases
1
373
Sales
-467
-591
Transfers to/from Level 3 'non-observable input'
0
0
Carrying amount at 31 December
517
1,001
Gains/losses in the income statement for assets held at the statement of
financial position date recognised in value adjustments
-14
2
Tryg's investment portfolio
Total investment assets
66,159
71,844
Other, hereof financial instrument in liabilitiesa)
-4,924
-6,803
External customers
-634
-1,672
Tryg's investment portfoliob)
60,602
63,369
Match portfolio
43,969
45,863
Free portfolio
16,632
17,506
a) Primarily debt relating to repos and derivatives
b) The setup of Tryg Invest is impacting Tryg’s balance sheet as external customers' investments are booked under
“Total other financial investment assets” with opposing liabilities entries such as “Other debt”.
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 173
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18
Financial assets (continued)
Derivative financial instruments
Derivatives with value adjustments in the income statement at fair value:
DKKm 2024
Nominal
Positive
market
value
Negative
market
value
Fair value
in
statement
of financial
position
Interest derivatives
100,144
794
1,336
-542
Share derivatives
0
0
0
0
Exchange rate derivativesa)
8,041
65
121
-56
Inflation derivatives
17,422
462
251
212
Gross amount before offsetting
125,607
1,321
1,708
-387
Due after less than 1 year
49,464
182
161
21
Due within 1 to 5 years
37,119
274
441
-167
Due after more than 5 years
39,024
865
1,106
-240
2023
Interest derivatives
64,765
1,221
1,694
-473
Share derivatives
206
37
5
32
Exchange rate derivativesa)
13,065
942
597
345
Inflation derivatives
5,918
354
0
354
Gross amount before offsetting
83,954
2,554
2,295
258
Due after less than 1 year
13,656
979
601
377
Due within 1 to 5 years
37,029
430
372
57
Due after more than 5 years
33,269
1,145
1,321
-176
a) hereof used for hedging of foreign entities nominal value of DKK 6.6bn (DKK 6.8bn at 31 December 2023)
Derivatives are used continuously as part of the cash and risk management carried out by
Tryg and its portfolio managers.
Derivate financial instruments used in connection with hedging of foreign entities for accounting
purposes.
Gains and losses on hedges charged to other comprehensive income:
2024
2023
DKKm
Gains
Losses
Net
Gain
Losses
Net
Gains and losses at 1 January
5,877
5,033
844
4,875
4,161
715
Value adjustments for the year
712
451
262
1,001
872
130
Gains and losses at 31
December
6,589
5,483
1,106
5,877
5,033
844
Value adjustments
Value adjustments of foreign entities recognised in other comprehensive income in the amount of:
DKKm
2024
2023
Value adjustments at 1 January
-2,441
-2,347
Value adjustments for the year
-1,030
-105
Exchange rate adjustment for the year recognised in profit/loss
-3
11
Value adjustment at 31 December
-3,474
-2,441
Derivative financial instruments used in connection with hedging of foreign entities for accounting
purposes consists of FX-forward contracts with a duration of 3 months and have a nominal value of
SEK 6.4bn at a exchange rate of 64.45 and NOK 3.8bn at a exchange rate of 63.17.
The hedge strategy is structured to mitigate fluctuations in Tryg's Own funds.
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 174
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19
Assets from reinsurance contracts
Asset for incurred claims
DKKm 2024
Assets for
remaining
coveragec)
Present
value of
future cash
flow
Risk
adjustment
for non-
financial
risk
Total
Balance at 1 January
36
2,184
840
3,060
Reinsurance expenses
1,349
0
0
1,349
Claims recovered
0
-2,088
680
-1,409
Run-off, adjustments of previous years
0
1,634
-826
808
Net income/expenses from reinsurance
contracts held
1,349
-454
-147
748
Finance expenses from reinsurance contracts
held
-3
-134
14
-124
Total amounts recognised in income statement
1,346
-588
-133
624
Cash flows
Premiums paid net of ceding commissions and
other directly attributable expenses paida)
-1,296
0
0
-1,296
Recoveries from reinsuranceb)
0
586
0
586
Total Cash Flows
-1,296
586
0
-710
Closing balance assets from reinsurance
contracts
87
2,181
706
2,974
Balance at 31 December
87
2,181
706
2,974
Asset for incurred claims
DKKm 2023
Assets for
remaining
coveragec)
Present
value of
future cash
flow
Risk
adjustment
for non-
financial
risk
Total
Balance at 1 January
141
2,086
596
2,823
Reinsurance expenses
1,729
0
0
1,729
Claims recovered
0
-2,632
774
-1,858
Run-off, adjustments of previous years
0
1,182
-547
636
Net income/expenses from reinsurance
contracts held
1,729
-1,450
228
507
Finance expenses from reinsurance contracts
held
-34
-66
16
-84
Total amounts recognised in income statement
1,696
-1,516
243
423
Cash flows
Premiums paid net of ceding commissions and
other directly attributable expenses paida)
-1,800
0
0
-1,800
Recoveries from reinsuranceb)
0
1,614
0
1,614
Total Cash Flows
-1,800
1,614
0
-186
Closing balance assets from reinsurance
contracts
36
2,184
840
3,060
Balance at 31 December
36
2,184
840
3,060
a) Premiums paid include amounts from change in balance sheet and exchange rate adjustments.
b) Recoveries from reinsurance include change in balance sheet and exchange rate adjustments.
c) No recognised loss components in 2023 or 2024.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 175
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20
Cash at bank and in hand
DKKm
Stage 1
Total
Total impairment IAS 39 provisions 31 December 2022
0
0
Effect of IFRS 9 transition
2
2
Total impairment provisions, 1 January 2023
2
2
Total impairment provisions, 31 December 2023
2
2
Total impairment provisions, 31 December 2024
2
2
At 31 December 2024 management performed an impairment test of charges for receivables from
credit institutions. The impairment test resulted in provisions of DKK 2m (DKK 2m in 2023). The
impairment changes of charges for receivables from credit institutions and impairment provisions
are not material. Furthermore, there have been no transfers between stages or impairment
provisions in stage 2 and 3.
21
Equity
Shares outstanding
Own shares
Number of shares (1,000)
2024
2023
2024
2023
Number of shares at 1 January
617,455
633,710
17,380
20,944
Acquired own shares during the year
-4,732
-16,359
4,732
16,359
Cancellation in connection with share buyback
0
0
-18,443
-19,819
Exercise of incentive programme
441
105
-441
-105
Number of shares at 31 December
613,165
617,455
3,227
17,380
Number of shares as a percentage of issued
99.48
97.26
0.52
2.74
Nominal value at 31 December (DKKm)
3,066
3,087
16
87
All shares have equal rights.
Pursuant to the authorisation granted by the shareholders, Tryg may acquire up to a total face value
DKK 308m of the share capital in the period up until 31 December 2025. Own shares are acquired
for share buyback and for use in the Group's incentive programme.
DKKm
2024
2023
Solvency II - Own funds
Equity according to statement of financial position
38,864
40,351
Proposed dividend
-1,202
-1,174
Outstanding Share buyback
-1,676
-304
Intangible assets
-30,692
-31,987
Profit margin, solvency purpose
3,600
3,400
Taxes
1,459
1,660
Subordinated loan capital
2,886
3,052
Solvency II - Own funds
13,239
14,998
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 176
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21
Equity (continued)
Subordinated loan capital recognised as equity for accounting purposes
Bond loan SEK 900ma)
Bond loan NOK 600ma)
DKKm
2024
2023
2024
2023
Carrying amount of the loan recognised in
statement of financial position
596
596
391
391
Total capital losses and costs at the statement
of the financial position date
0
0
0
0
Interest expenses for the year
43
33
32
23
Effective interest rate
6.75 %
7.61 %
8.17 %
8.17 %
Loan terms:
Lender
Listed bonds
Listed bonds
Principal
SEK 900m
NOK 600m
Issue price
100
100
Issue date
March 2023
March 2023
Maturity year
Perpetual
Perpetual
Loan may be called by borrower as from
2028
2028
Repayment profile
Interest-only
Interest-only
Interest structure
3.50% above STIBOR 3m
3.45% above NIBOR 3m
a) Coupon on the Notes is due and payable only at the sole and absolute discretion of Tryg. Accordingly, Tryg may at any time in
its sole and absolute discretion elect to cancel any interest payment or a part thereof which would otherwise be payable on any
interest payment date. Will become payable only in the event of Tryg Forsikring A/S's bankruptcy.
DKKm
2024
2023
Carrying amount of the loan recognised in statement of financial position
Bond loan SEK 900m
596
596
Bond loan NOK 600m
391
391
Total carrying amount of the loan recognised in statement of financial
position
987
987
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 177
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22
Subordinated loan capital
Bond loan NOK 1,400m
Bond loan SEK 1,000m
Bond loan NOK 850m
Bond loan SEK 1,300m
DKKm
2024
2023
2024
2023
2024
2023
2024
2023
Amortised cost value of the loan recognised in statement of financial position
881
927
647
669
534
562
843
872
The fair value of the loan at the statement of financial position date
894
967
655
660
533
564
826
854
The fair value of the loan at the statement of financial position date is based on a price of
101
104
101
98
100
100
98
98
Total capital losses and costs at the statement of the financial position date
0
1
2
2
1
1
1
2
Interest expenses for the year
67
61
40
39
33
29
41
40
Effective interest rate
8.42 %
8.34 %
5.79 %
6.46 %
6.72 %
6.65 %
5.39 %
5.90 %
Loan terms:
Lender
Listed bonds
Listed bonds
Listed bonds
Listed bonds
Principal
NOK 1,400m
SEK 1,000m
NOK 850m
SEK 1,300m
Issue price
100
100
100
100
Issue date
November 2015
February 2021
May 2021
May 2021
Maturity year
2045
Perpetual
2051
2051
Loan may be called by borrower as from
2025
2026
2027
2026
Repayment profile
Interest-only
Interest-only
Interest-only
Interest-only
Interest structure
2.75% above NIBOR 3m
(until 2025)
2.4% above STIBOR 3m
1.25% above NIBOR 3m
(until 2031)
1.15% above STIBOR 3m
(until 2031)
3.75% above NIBOR 3m
(from 2025)
2.25% above NIBOR 3m
(from 2031)
2.15% above STIBOR 3m
(from 2031)
The share of subordinated loan capital included in own funds totals DKK 2,886m (DKK 3,052m at 31 December 2023).
The loans are initially recognised at fair value on the date on which a loan is entered and subsequently measured at amortised cost.
The fair value of the loans are based on quoted prices. Given the low frequency of trades the prices are considered Level 2 input.
The loans are issued by Tryg Forsikring A/S. The creditors have no option to call the loans before maturity or otherwise terminate the loan agreements. Tryg Forsikring A/S have the option to pay the
subordinated loan at nominal maturity date with an option for early redemption.
The loans are automatically accelerated upon the liquidation or bankruptcy of Tryg Forsikring A/S. Prices used for determination of fair value in respect of the loans are based on actual traded prices from
Bloomberg.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 178
-
22
Subordinated loan capital (continued)
DKKm
2024
2023
Amortised cost value of loan recognised in statement of financial position
Bond loan NOK 1,400m
881
927
Bond loan NOK 850m
534
562
Bond loan SEK 1,300m
843
872
Bond loan SEK 1,000m
647
669
Total amortised cost value of the loan recognised in statement of financial position
2,906
3,031
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 179
-
23
Insurance contracts liabilities
Liability for remaining
coverage
Liabilities for incurred
claims for contracts
under the PAA
DKKm 2024
Excluding
loss
component
Loss
component
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
Total
Balance as at 1 January
5,733
1
41,440
2,289
49,463
Insurance revenue
-39,974
0
0
0
-39,974
Incurred claims and other directly attributable expenses
1,665
0
27,378
1,225
30,268
Insurance acquisition cash flows amortisation
3,531
0
0
0
3,531
Run-off previous years adjustments to the LIC
0
0
-520
-1,378
-1,898
Insurance service expenses (gross)
5,196
0
26,859
-153
31,902
Profit/loss on gross business
-34,779
0
26,859
-153
-8,072
Finance expenses from insurance contracts issued
1
0
1,001
13
1,016
Total income statement (gross)
-34,777
0
27,860
-139
-7,057
Cash flows
Insurance revenue receiveda)
40,262
0
0
0
40,262
Claims and other directly attributable expenses paidb)
-1,665
0
-30,502
0
-32,167
Insurance acquisition costs cash flowsc)
-3,531
0
0
0
-3,531
Total Cash Flows
35,066
0
-30,502
0
4,564
Closing insurance contract liabilities
6,022
1
38,797
2,149
46,969
Balance as at 31 December
6,022
1
38,797
2,149
46,969
The calculated risk adjustment corresponds to the confidence level of 75% at 31 December 2024.
a) Insurance revenue received includes premiums received, change in liability for remaining coverage from business combinations (Trygg-Hansa), change in debt and receivable and exchange rate adjustment from local currency to group currency.
b) Claims and other directly attributable expenses paid includes claims paid, claims from IFRS 3 business combinations (Trygg-Hansa), change in debt and receivable and exchange rate adjustment from local currency to group currency. Liability for remaining
coverage includes administration costs related to insurance contracts.
c) Tryg has chosen to expense acquisition cost as they incur.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 180
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23
Insurance contracts liabilities (continued)
Liability for remaining
coverage
Liabilities for incurred
claims for contracts
under the PAA
DKKm 2023
Excluding
loss
component
Loss
component
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
Total
Balance as at 1 January
6,077
1
40,939
2,045
49,063
Insurance revenue
-39,126
0
0
0
-39,126
Incurred claims and other directly attributable expenses
1,588
0
27,703
1,292
30,584
Insurance acquisition cash flows amortisation
3,371
0
0
0
3,371
Run-off previous years adjustments to the LIC
0
0
-599
-1,136
-1,735
Insurance service expenses (gross)
4,959
0
27,105
156
32,219
Profit/loss on gross business
-34,167
0
27,105
156
-6,906
Finance expenses from insurance contracts issued
-4
0
2,106
88
2,190
Total income statement (gross)
-34,170
0
29,211
244
-4,716
Cash flows
Insurance revenue receiveda)
38,785
0
0
0
38,785
Claims and other directly attributable expenses paidb)
-1,588
0
-28,711
0
-30,298
Insurance acquisition costs cash flowsc)
-3,371
0
0
0
-3,371
Total Cash Flows
33,826
0
-28,711
0
5,116
Closing insurance contract liabilities
5,733
1
41,440
2,289
49,463
Balance as at 31 December
5,733
1
41,440
2,289
49,463
The calculated risk adjustment corresponds to the confidence level of 68% at 31 December 2023.
a) Insurance revenue received includes premiums received, change in liability for remaining coverage from business combinations (Trygg-Hansa), change in debt and receivable and exchange rate adjustment from local currency to group currency.
b) Claims and other directly attributable expenses paid includes claims paid, claims from IFRS 3 business combinations (Trygg-Hansa), change in debt and receivable and exchange rate adjustment from local currency to group currency. Liability for remaining
coverage includes administrations costs related to insurance contracts.
c) Tryg has chosen to expense acquisition cost as they incur.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 181
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24
Pensions and similar obligations
DKKm
2024
2023
Jubilees, pensions and other obligations
20
39
Compensation liability
8
12
Recognised liability
28
51
Defined-benefit pension plans Norway:
Present value of pension obligations funded through operations
29
26
Specification of change in recognised pension obligations
Recognised pension obligation at 1 January
26
24
Exchange rate adjustments
-1
-2
Capital cost of previously earned pensions
7
6
Actuarial gains/losses
1
2
Paid during the period
-4
-4
Recognised pension obligation at 31 December
29
26
Total pensions and similar obligations at 31 December
29
26
Total recognised obligation at 31 December
57
77
Specification of pension cost for the year:
Present value of pensions earned during the year
6
5
Accrued employer contributions
1
1
Total year's cost of defined-benefit plans
7
6
The premium for the following financial years is estimated at
1
1
Number of pensioners
105
102
Assumptions used
%
%
Discount rate
2.8
3.0
Salary adjustments
3.5
3.8
Pension adjustments
1.9
2.4
G adjustments
3.3
3.5
Turnover
7.0
7.0
Employer contributions
19.1
19.1
Mortality table
K2013
K2013
Description of the Swedish plan
Trygg-Hansa, a branch of Tryg Forsikring A/S, complies with the Swedish industry pension
agreement, the FTP plan, which is insured with Försäkringsbranschens Pensionskassa - FPK.
Under the terms of the agreement, the Group’s Swedish branch has undertaken, along with the
other businesses in the collaboration, to pay the pensions of the individual employees in
accordance with the applicable rules.
The FTP plan is primarily a defined-benefit plan in terms of the future pension benefits. FPK is
unable to provide sufficient information for the Group to use defined-benefit accounting. For this
reason, the Group has accounted for the plan as if it were a defined-contribution plan in
accordance with IAS 19.30.
This years premium paid to FPK amounted to DKK 17m (DKK 18m in 2023), which is about 3.0%
(2.3% in 2023) of the annual premium in FPK (2023). FPK writes in its annual report for 2023 that
it had a solvency ratio of 126 at 31 December 2023 (Solvency ratio 135 at 31 December 2022).
The Solvency Ratio is defined as the own funds relative to the solvency capital requirement.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 182
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25
Deferred tax
DKKm
2024
2023
Tax assets
Land, buildings and operating equipment
14
1
Bonds
4
4
Capitalised tax loss
0
0
Receivables and provisions
327
0
345
5
Tax liability
Intangible rights
1,954
2,168
Land and buildings
84
0
Debt and provisions
1
49
Contingency funds
1,086
1,156
3,125
3,373
Deferred tax
2,780
3,367
Development in deferred tax
Deferred tax at 1 January
3,367
3,542
Exchange rate adjustments
-106
-14
Change in deferred tax relating to change in tax rate
0
8
Change in deferred tax previous years
-76
-38
Change in capitalised tax loss
0
179
Change in deferred tax recognised in income statement
-405
-314
Change in deferred tax recognised in equity
0
4
Deferred tax at 31 December
2,780
3,367
Tax value of non-capitalised tax loss
DKKm
2024
2023
Loss
Tax value
Loss
Tax value
Denmark
0
0
0
0
Norway
0
0
0
0
Sweden
0
0
0
0
Finland
0
0
0
0
Germany
0
0
0
0
Netherlands
30
6
31
6
Austria
0
0
7
2
Switzerland
26
4
26
4
Belgium
13
3
11
3
UK
14
3
9
2
Ireland
4
1
1
0
Total
88
16
86
17
Tax loss determined according to Swedish and Finnish, German, Belgium, Dutch and Austria tax
legislation can be carried forward indefinitely. In Switzerland tax losses can be carried forward 7
years. The tax losses are not recognised as tax assets as it has not been substantiated that the local
entities or branches can generate sufficient future taxable income within 3-5 years to offset the tax
losses.
The total current and deferred tax relating to items recognised in equity is recognised in the
statement of financial position in the amount of DKK -68m (DKK -37m at 31 December 2023).
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 183
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26
Other provisions
DKKm
2024
2023
Other provisions at 1 January
223
94
Exchange rate adjustments
-2
0
Change in provisions
-137
129
Other provisions 31 December
84
223
Other provisions primarily relate to the bankruptcy of Gefion, and Group’s own insurance claims.
In 2023 restructuring costs are also included.The maturity of the obligation is within 5 years.
27
Earnings per share, operating earnings per share
DKKm
2024
2023
Profit/loss for the period cf. Income statement
4,816
3,851
Adjusted for interest on Additional Tier 1 capital cf. equity
-73
-57
Profit/loss from continuing business to shareholders of Tryg
4,742
3,794
Profit/loss for the period
4,742
3,794
Amortisation on intangible assets related to customer relations after tax
735
739
Operating Profit/loss for the period
5,477
4,533
Average number of shares ('000)
615,441
624,507
Diluted number of shares ('000)
615,903
625,528
Earnings per share, continuing business
7.71
6.08
Diluted earnings per share, continuing business
7.70
6.07
Earnings per share
7.71
6.08
Diluted earnings per share
7.70
6.07
Operating earnings per sharea)
8.90
7.26
a) Calculated as operating profit/loss for the period divided by average number of shares in the period.
28
Other debt
Other debt amounts to DKK 6,068m (DKK 7,551m at 31 December 2023) and mainly consists of
debt related to external customers' investments in Tryg Invest of DKK 634m (DKK 1,672m at 31
December 2023), unsettled fund transactions of DKK 1,965m (DKK 1,977m at 31 December
2023), lease liabilities of DKK 856m (DKK 1,003m at 31 December 2023) and accrued costs of
DKK 1,381m (DKK 1,216m at 31 December 2023).
DKKm
2024
2023
Maturity of undiscounted lease liabilities
Due 1 year or less
170
202
Due 2-5 years
387
465
Due more than 5 years
539
625
Total undiscounted lease liabilities 31 December
1,096
1,293
Lease liabilities included in the statement of financial position
Hereof future cash flow of contract options
21
45
Amounts recognised in the statement of cash flow
Total cash out-flow for leases
210
211
Amounts recognised in the income statement
Interest on lease liabilities
-47
-51
There are no short team-leases recognised in the financial statement.
Please refer to note 15 for specification of ROU assets.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 184
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29
Contractual obligations, collateral and contingent liabilities
Contractual obligations
Obligations due by period
DKKm 2024
<1 year
1-3 years
3-5 years
>5 years
Total
Other contractual obligationsa)
751
506
155
117
1,529
751
506
155
117
1,529
2023
Other contractual obligationsa)
1,011
742
451
11
2,216
1,011
742
451
11
2,216
a) Other contractual obligations mainly consists of investment commitments, IT and outsourcing agreements.
Please refer to note 15 for lease agreements recognised as ROU assets.
Tryg has signed the following material contracts above DKK 50m
Tryg is committed to invest in some investment funds. The commitment amounts to DKK 573m
(DKK 909m in 2023) of which DKK 166m are expected called during 2025 (DKK 284m in 2023 are
expected called during 2024), additionally DKK 308m (DKK 625m in 2023) within 5 years and DKK
99m (DKK 0m in 2023) after 5 years.
Tryg has signed IT infrastructure agreements with commitments amounting to DKK 489m (DKK
737m in 2023) within 5 years.
Tryg Groups Danish companies are in majority part of a joint taxation with TryghedsGruppen
smba, with some exemptions due to Danish legislation. TryghedsGruppen smba is the
administration company in the Danish joint taxation group. The Danish companies under the
joint taxation group are jointly liable for any taxes to be withheld and paid in the group, including
income taxes, and taxes withheld at source such as taxes on interest and dividends.
Contingent liabilities
Price adjustments 2016-2020
At the end of October 2020 Tryg received the Danish Consumer Ombudsman’s assessment
of the case. In the Danish Consumer Ombudsman’s opinion Tryg was not complying with
regulations on giving notice for price adjustments for private customers when increasing prices
above normal indexation between March 2016 and February 2020. The case is related to a part of
the private portfolio in Denmark. Based on this assessment the Danish Consumer Ombudsman
concluded that certain customers may have a recovery claim against Tryg. Tryg does not
agree with the Danish Consumer Ombudsman’s assessment as Tryg believes it has followed
the applicable regulation and guidelines stated by the Danish Financial Supervisory Authority
(“FSA”) in terms of price increases. In April 2022 the Danish Consumer Ombudsman decided
that the case should be tested in court.
On 5 April 2024 the Danish Maritime & Commercial Court has ruled in favour of the Danish
Consumer Ombudsman arguments against Tryg. Tryg has appealed the decision and the permission
to appeal has been granted by the Danish Supreme Court.
The Executive Board has decided not to disclose any amount but the case is deemed to have
immaterial financial consequences for Tryg's equity and solvency position.
Other
Companies in the Tryg Group are party to a number of other disputes in Denmark, Norway and
Sweden, which management believes will not affect the Group’s financial position significantly
beyond the obligations recognised in the statement of financial position at 31 December 2024.
Tryg Livsforsikring A/S, Forsikrings-Aktieselskabet Alka Liv II and Holmia Livförsäkring AB have
registered the following assets as having been held as security for the insurance provisions:
DKKm
2024
2023
Equity investments
500
463
Bonds
645
553
Interest and rent receivable
3
3
1,149
1,019
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 185
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29
Contractual obligations, collateral and contingent liabilities (continued)
Offsetting and collateral in relation to financial assets and liabilities
Collateral which is not offset in the statement of financial position
DKKm 2024
Gross
amount
before
offsetting
Offsetting
According
to the
statement
of financial
position
Further
offsetting,
master
netting
agreements
Collateral Net amount
Assets
Reverse repos
340
0
340
0
-340
0
Derivative financial
instruments
1,321
-659
661
-550
-109
2
1,661
-659
1,002
-550
-450
2
Liability
Repo debt
3,684
0
3,684
0
-3,684
0
Derivative financial
instruments
1,708
-659
1,048
-550
-494
4
5,392
-659
4,732
-550
-4,178
4
2023
Assets
Reverse repos
59
0
59
0
-59
0
Derivative financial
instruments
2,554
-516
2,038
-1,223
-788
27
2,613
-516
2,096
-1,223
-847
27
Liability
Repo debt
4,645
0
4,645
0
-4,645
0
Derivative financial
instruments
2,295
-516
1,779
-1,223
-434
123
6,940
-516
6,424
-1,223
-5,079
123
Financial assets and liabilities are offset and the net amount reported when the Group and the
counterparty have a legally enforceable right of set-off and have agreed to settle on a net basis or to
realise the asset and settle the liability.
Positive and negative fair values of derivative financial instruments with the same counterparty are
offset if it has been agreed to settle contractual payments on a net basis when cash payments are
made or collateral is provided on a daily basis in case of fair value changes. The Group's netting of
positive and negative fair values of derivative financial instruments may be cleared through LCH
(CCP clearing).
Furthermore, netting is carried out in accordance with enforceable master netting agreements.
Master netting agreements and similar agreements entitle parties to offset in the event of default,
which further reduces the exposure to a defaulting counterparty but does not meet the conditions
for accounting offsetting in the statement of financial position.
30
Related parties
The Group has no related parties with a controlling influence other than the parent company,
TryghedsGruppen smba and the subsidiaries of TryghedsGruppen smba (other related parties).
Related parties include the Supervisory Board, the Executive Board (which is considered Key
Management) and their members' family.
DKKm
2024
2023
Premium income
- Parent company (TryghedsGruppen smba)
0.8
0.5
- Key management
0.6
0.6
- Other related parties
0.1
2.6
Claims payments
- Parent company (TryghedsGruppen smba)
0.2
0.3
- Key management
0.1
0.1
- Other related parties
0.0
0.3
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 186
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30
Related parties (continued)
Specification of remuneration
DKKm 2024
Number of
persons
Base salary
incl. car
allowancea)
Share-
based
variable
salaryb)
Cash
variable
salary
Pension
Total
Supervisory Board
15
12
0
0
0
12
Executive Board
5
33
9
4
8
54
Risk-takers
investment
functions
11
17
2
1
2
22
Risk-takers staff
functions
34
52
10
3
9
74
Risk-takers
independent control
functions
4
8
0
0
1
10
Risk-takers other
functions
58
92
16
6
15
130
127
214
38
13
36
301
Number of
persons
(nom.)
Severance
pay
(DKKm)
Of which retired
Supervisory Board
1
0
Executive Boardd)
0
0
Risk-takers
8
0
9
0
DKKm 2023
Number of
persons
Base salary
incl. car
allowancea)
Share-
based
variable
salaryb)
Cash
variable
salaryc)
Pension
Total
Supervisory Board
16
12
0
0
0
12
Executive Board
7
30
18
10
8
66
Risk-takers
investment
functions
12
15
2
2
2
21
Risk-takers staff
functions
24
41
9
7
7
65
Risk-takers
independent control
functions
4
8
0
0
1
10
Risk-takers other
functions
28
66
18
11
12
107
91
172
48
30
30
280
Number of
persons
(nom.)
Severance
pay
(DKKm)
Of which retired
Supervisory Board
2
0
Executive Boardd)
2
14
Risk-takers
0
0
4
14
a) Car allowance is not included in the base salary for the Supervisory Board
b) Total expenses recognised in 2024 and 2023 for matching shares and conditional shares allocated in 2024 and previous years.
For matching shares and conditional shares allocated to Executive Board in 2024 and 2023, please refer to "Corporate
governance" in Management review (page 39). For further details on remuneration of Supervisory Board and Executive Board,
please refer to "Corporate governance" in Management review.
c) Including non-competition clause
d) Severance pay is included in the remuneration table above in all categories.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 187
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30
Related parties (continued)
Base salary are charges incurred during the financial year. Variable salary includes the charges for
conditional shares, which are recognised over a deferral period up to 5 years from performance year
2024. Reference is made to section 'Corporate governance' of the management's review on the
corresponding disbursements. The Executive Board and risk-takers are included in incentive
programmes. Please refer to note 31 for more information.
The members of the Supervisory Board in Tryg A/S are paid with a fixed remuneration and are not
covered by the incentive schemes.
The members of the Executive Board are paid a fixed remuneration, pension, car allowance, special
allowances, and staff benefits.
The variable salary is awarded with 40% cash, and 60% conditional shares which are deferred for 5
years for the Executive Board from performance year 2024. Please refer to 'Corporate governance' in
Management review.
Each member of the Executive Board is entitled to 12 months' notice and severance pay equal to 12
months’ salary plus pension contribution. If a change of control clause is actioned COO is entitled to
severance pay equal to 36 months´ salary.
Risk-takers are defined as employees whose activities have a significant influence on the company’s
risk profile. The Supervisory Board decides which employees should be considered to be risk-takers.
Parent company
TryghedsGruppen smba
TryghedsGruppen smba controls 47.9% (46.3% at 31 December 2023) of the total shares in Tryg
A/S.
This amounts to TryghedsGruppen smba controlling 48.1% (47.5% at 31 December 2023) of the
shares outstanding in Tryg A/S as at 31 December 2024.
In 2024 Tryg A/S paid TryghedsGruppen smba dividends of DKK 2,265m (DKK 2,102m in 2023).
The transactions between TryghedsGruppen smba and Tryg A/S is conducted on an arm’s length
basis.
Intra-group transactions with TryghedsGruppen smba from Tryg Forsikring A/S consists of
administrative services, IT and data deliveries.
The transactions amounts to DKK 4m (DKK 2m in 2023).
All transactions are conducted on an arm´s length basis.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 188
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31
Share-based payment
Matching shares
Total Numbers
Fair Value
2024
Executive
Board
Risk-takers
Other
Total
Average
value per
matching
share at
grant date
DKK
Total value
at time of
allocation
DKKm
Value per
matching
share at 31
December
DKK
Total fair
value at 31
December
DKKm
Matching shares allocated in 2024
0
0
0
0
0
0
0
0
Allocated in 2011 - 2023
262,901
103,203
437,916
804,021
140
112
152
122
Category changes and addition
0
26,126
-26,126
0
0
0
0
0
Cancelled
-14,328
-7,476
-49,958
-71,762
140
-10
152
-11
Exercised
-248,573
-87,363
-270,071
-606,007
140
-85
152
-92
Total 31.12.24
0
34,491
91,761
126,252
140
18
152
19
2023
Matching shares allocated in 2023
0
1,670
57,362
59,032
163
10
147
9
Allocated in 2011 - 2022
295,068
108,118
341,802
744,989
138
103
147
109
Category changes and addition
-32,167
-6,585
38,752
0
138
0
147
0
Cancelled
-14,328
-7,476
-49,958
-71,762
138
-10
147
-11
Exercised
-248,573
-79,860
-205,400
-533,833
138
-74
147
-78
Total 31.12.23
0
14,197
125,196
139,393
138
19
147
20
Matching shares
In accordance with the Group’s remuneration policy Tryg has on agreed terms allocated matching shares for some employees.
Executive Board, Risk-takers and Other employees are allocated one share in Tryg A/S for each share they acquire in Tryg A/S at market price for liquid cash at a contractually agreed sum over deferral period
of up to 4 years.
In 2024, the recognised fair value of matching shares for the Group amounted to DKK 9m (DKK 14m in 2023). At 31 December 2024, total fair value related to matching shares amounted to DKK 19m (DKK
29m in 2023). The number of shares is adjusted for dividend paid, no expected dividend is included.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 189
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31
Share-based payment (continued)
Conditional shares
Total Numbers
Fair Value
2024
Executive
Board
Risk-takers
Other
Total
Average
value per
conditional
share at
grant date
DKK
Total value
at time of
allocation
DKKm
Value per
conditional
share at 31
December
DKK
Total fair
value at 31
December
DKKm
Conditional shares allocated in 2024
35,556
54,977
97,592
188,125
161
30
152
29
Allocated in 2018 - 2023
147,003
781,378
422,729
1,351,110
169
228
152
205
Category changes and addition
4,625
-69,713
96,421
31,333
169
5
152
5
Cancelled
0
-14,208
-12,857
-27,065
169
-5
152
-4
Exercised
-74,525
-429,680
-338,681
-842,886
169
-143
152
-128
Total 31.12.24
77,103
267,777
167,612
512,492
169
87
152
78
2023
Conditional shares allocated in 2023
34,800
163,583
58,829
257,212
161
42
147
38
Allocated in 2018 - 2022
206,118
490,725
226,996
923,839
171
158
147
136
Category changes and addition
-93,915
127,070
136,904
170,059
171
29
147
25
Cancelled
0
-14,208
-12,857
-27,065
171
-5
147
-4
Exercised
-10,077
-268,152
-213,898
-492,127
171
-84
147
-72
Total 31.12.23
102,126
335,435
137,145
574,706
171
98
147
84
Conditional shares
In accordance with the Group’s remuneration policy Tryg has on agreed terms allocated conditional shares for some employees.
Executive Board, Risk-takers and Other employees are allocated shares in Tryg A/S if certain conditions, such as financial, and non-financial targets, combined with employment with Tryg in the maturation
period, are fulfilled over a period of up to 5 years from performance year 2024.
In 2024, the recognised fair value of conditional shares for the Group amounted to DKK 49m (DKK 65m in 2023). At 31 December 2024, total fair value related to conditional shares amounted to DKK 106m
(DKK 122m in 2023).
32
Financial highlights
Please refer to page 138
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 190
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33
Accounting policies
The consolidated financial statements are
prepared in accordance with the IFRS
Accounting Standards as adopted by the EU on
31 December 2024 and the additional Danish
disclosure requirements of the Danish
Insurance Business Act on annual reports
prepared by listed financial services companies.
The parent company financial statements are
prepared in accordance with the executive order
on financial reports presented by insurance
companies and lateral pension funds issued by
the Danish FSA. The deviations from the
recognition and measurement requirements of
IFRS Accounting Standards are:
• The Danish FSA’s executive order does not
allow provisions for deferred tax of
contingency reserves allocated from untaxed
funds. Deferred tax and the other
comprehensive income of the parent
company have been adjusted accordingly on
the transition to IFRS Accounting Standards.
Change in accounting policies
Tryg has not implemented any new significant
accounting policies or IFRS Accounting
Standards in 2024.
The accounting policies have been applied
consistently with last year.
Accounting regulation
Implementation of changes to accounting
standards and interpretation in 2024
The International Accounting Standards Board
(IASB) has issued several changes to the
international accounting standards, and the
International Financial Reporting Interpretations
Committee (IFRIC) has also issued a number of
interpretations.
No standards have been implemented for the
first time for the accounting year that began on
1 January 2024 that will have a significant
impact on the Group.
Significant accounting estimates and
assessments
The preparation of financial statements under
IFRS Accounting Standards requires the use of
certain critical accounting estimates and
requires management to exercise its judgement
in the process of applying the Group’s
accounting policies. The areas involving more
judgement or complexity, or areas where
assumptions and estimates are significant to the
consolidated financial statements are:
• Insurance and reinsurance contracts
• Fair value of financial assets and liabilities
• Measurement of Goodwill, Trademarks and
Customer relations
Insurance and reinsurance contracts
The PAA is basically a simplified version of
the GMM which may be used if a number
of conditions have been met.
Generally speaking, the key differences between
the two methods are, for example, that the PAA
involves simpler calculation of provisions for the
remaining coverage period in line with the
previous policies as well as fewer reporting
requirements.
The PAA may be used for insurance contracts
with a coverage period of one year or less as the
effect of discounting on the provision for these
will be limited. However, the PAA can also be
used for insurance contracts with a coverage
period of more than one year, provided it can be
documented that measurement of technical
provisions according to the PAA will not
produce a materially different result than
measurement according to the GMM.
The Tryg Group recognises all policies with a
coverage period of one year or less under the
PAA. The product groups Change of Ownership,
Construction Policies and Affinity have
contracts with a coverage period of more than
one year. For these groups of contracts,
eligibility tests have been carried out to assess
whether the conditions for using the PAA have
been met. All product groups have proved to
meet the conditions for using the PAA. Hence it
has been assessed that the use of PAA will not
produce a materially different result than
measurement according to the GMM
Tryg has thus chosen to use the PAA for the
entire insurance portfolio.
Estimates of insurance contracts liabilities and
especially liability for incurred claims represent
the Group’s most critical accounting estimates,
as these provisions involve several uncertainty
factors. Similarly, the estimation of recoveries
from reinsurers may be significant.
Changes in the following key assumptions may
change the fulfilment cash flows materially:
• assumptions about the contract boundary;
• assumptions about level of aggregation;
• assumptions about claims development; and
• assumptions about discount rates, including
any illiquidity premiums.
Fulfilment cash flows comprise:
• estimates of future cash flows;
• an adjustment to reflect the time value of
money and the financial risks related to
future cash flows, to the extent that the
financial risks are not included in the
estimates of future cash flows; and
• a risk adjustment for non-financial risk.
The expected fulfilment cash flows are similarly
applied to reinsurance contract assets.
The sensitivity of the key assumptions and the
underlying assumptions and development of
discount rates are disclosed in note 1.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 191
.
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33
Accounting policies (continued)
Fair value of financial assets and liabilities
Measurements of financial assets and liabilities
for which prices are quoted in an active market
or which are based on generally accepted
models with observable market data are not
subject to material estimates. For securities that
are not listed on a stock exchange, or for which
no stock exchange price is quoted that reflects
the fair value of the instrument, the fair value is
determined using a current OTC price of a
similar financial instrument or using a model
calculation. The valuation models include the
discounting of the instrument cash flow using an
appropriate market interest rate with due
consideration for credit and liquidity premiums.
Measurement of Goodwill, Trademarks
and Customer relations
Goodwill, Trademarks and Customer relations
was acquired in connection with the acquisition
of businesses. Goodwill is allocated to the cash-
generating units under which management
manages the investment. The carrying amount
is tested for impairment at least annually.
Impairment testing involves estimates of future
cash flows and is affected by several factors,
including discount rates and other
circumstances dependent on economic trends,
such as customer behaviour and competition.
Cf. note 14.
Description of accounting policies
Recognition and measurement
The financial statements have been prepared
under the historical cost convention and
revaluation of investment property, financial
assets held for trading and financial assets and
financial liabilities (including derivative
instruments) at fair value are recognised in the
income statement.
Liabilities are recognised in the statement of
financial position when the Group has a legal or
constructive obligation as a result of a prior
event, and it is probable that future economic
benefits will flow out of the Group, and the value
of such liabilities can be measured reliably.
On initial recognition, assets and liabilities are
measured at cost, with the exception of financial
assets and liabilities, which are recognised at
fair value. Measurement after initial recognition
is affected as described below for each item.
Anticipated risks and losses that arise before the
time of presentation of the financial statements
and that confirm or invalidate affairs and
conditions existing at the statement of financial
position date are considered at recognition and
measurement.
Income is recognised in the income statement
as earned, whereas costs are recognised by the
amounts attributable to this financial year. Value
adjustments of financial assets and liabilities are
recognised in the income statement unless
otherwise described below.
All amounts in the notes are shown in millions of
DKK unless otherwise stated.
Consolidation
Consolidated financial statements
The consolidated financial statements comprise
the financial statements of Tryg A/S (the parent
company) and the enterprises (subsidiaries)
controlled by the parent company. The parent
company is regarded as controlling an
enterprise when it:
1. exercises a controlling influence over the
relevant activities in the enterprise in
question,
2. is exposed to or has the right to a variable
return on its investment, and
3. can exercise its controlling influence to affect
the variable return.
Enterprises in which the Group directly or
indirectly holds between 20% and 50% of the
voting rights and exercises significant influence
but no controlling influence are classified as
associates.
Basis of consolidation
The consolidated financial statements are
prepared based on the financial statements of
Tryg A/S and its subsidiaries. The consolidated
financial statements are prepared by combining
items of a uniform nature.
The financial statements used for the
consolidation are prepared in accordance with
the Group’s accounting policies.
On consolidation, intra-group income and costs,
intra-group accounts and dividends, and gains
and losses arising on transactions between the
consolidated enterprises are eliminated.
Items of subsidiaries are fully recognised in the
consolidated financial statements.
Currency translation
A functional currency is determined for each of
the reporting entities in the Group. Tryg's
functional currencies are DKK, SEK, NOK, EUR,
CHF and GBP. Transactions in currencies other
than the functional currency are transactions in
foreign currencies.
On initial recognition, transactions in foreign
currencies are translated into the functional
currency using the exchange rate applicable at
the transaction date. Assets and liabilities
denominated in foreign currencies are
translated using the exchange rates applicable
at the statement of financial position date.
Translation differences are recognised in the
income statement under price adjustments.
On consolidation, the assets and liabilities of the
Group’s foreign operations are translated using
the exchange rates applicable at the statement
of financial position date. Income and expense
items are translated using the average exchange
rates for the period.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 192
.
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33
Accounting policies (continued)
Exchange rate differences arising on translation
are classified as other comprehensive income
and transferred to the Group’s translation
reserve. Such translation differences are
recognised as income or as expenses in the
period in which the activities are divested. All
other foreign currency translation gains and
losses are recognised in the income statement.
The presentation currency in the annual report
is DKK.
Operating segments
Segment information is based on the Group’s
management and internal financial reporting
system and supports the management
decisions on allocation of resources and
assessment of the Group’s results divided into
segments. Executive Board is considered Key
operating decision makers.The segment
reporting is based on the Group Accounting
policy.
The operational business segments in the Group
are Private, Commercial, Corporate and Other.
Private encompasses the sale of insurances to
private individuals in Denmark, Sweden and
Norway. Commercial encompasses the sale of
insurances to small and medium sized
businesses, in Denmark, Sweden and Norway.
Corporate sells insurances to industrial clients
primarily in Denmark, Norway and Sweden. In
addition, Corporate handles all business
involving brokers. Other encompasses Acquired
portfolios. Cf. note 4 reclassification column and
description.
Geographical information is presented based on
the economic environment in which the Tryg
Group operates. The geographical areas are
Denmark, Norway and Sweden.
Segment income and segment costs as well as
segment assets and liabilities comprise those
items that can be directly attributed to each
individual segment and those items that can be
allocated to the individual segments on a
reliable basis. Unallocated items primarily
comprise assets and liabilities concerning
investment activity managed at Group level.
Key ratios
Earnings per share (EPS) are calculated
according to IAS 33. This and other key ratios
are calculated in accordance with
Recommendations and Ratios issued by The
Danish Finance Society and the Executive Order
on Financial Reports for Insurance Companies
and Multi-Employer Occupational Pension
Funds issued by the Danish Financial
Supervisory Authority.
Income statement
Insurance revenue
The insurance revenue for the period is the
amount of expected premium receipts
(excluding any investment component)
allocated to the period. Tryg allocates the
expected premium receipts to each period of
insurance contract services on the basis of the
passage of time. If the expected pattern of
release of risk during the coverage period differs
significantly from the passage of time, then the
allocation is made on the basis of the expected
timing of incurred insurance service expenses.
Tryg changes the basis of allocation between
the two methods above as necessary, if facts
and circumstances change. The change is
accounted for prospectively as a change in
accounting estimate.
For the periods presented, all revenue has been
recognised on the basis of the passage of time.
Loss component
Tryg assumes that no contracts are onerous at
initial recognition unless facts and
circumstances indicate otherwise.
Tryg considers facts and circumstances to
identify whether a group of contracts are
onerous based on:
• Pricing information
• Results of similar contracts it has recognised
• Environmental factors, e.g., a change in
market experience or regulations
Where this is not the case, and if at any time
during the coverage period, the facts and
circumstances mentioned indicate that a group
of insurance contracts is onerous, Tryg
establishes a loss component as the excess of
the fulfilment cash flows that relate to the
remaining coverage of the group over the
carrying amount of the liability for remaining
coverage of the group.
Accordingly, by the end of the coverage period
of the group of contracts the loss component
will be nil.
Loss-recovery components
When Tryg recognises a loss on initial
recognition of an onerous group of underlying
insurance contracts, or when further onerous
underlying insurance contracts are added to a
group, Tryg establishes a loss-recovery
component of the asset for remaining coverage
for a group of reinsurance contracts held
depicting the expected recovery of the losses if
relevant.
The loss-recovery component is subsequently
reduced to zero in line with reductions in the
onerous group of underlying insurance
contracts in order to reflect that the loss-
recovery component shall not exceed the
portion of the carrying amount of the loss
component of the onerous group of underlying
insurance contracts that the entity expects to
recover from the group of reinsurance contracts
held.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 193
.
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33
Accounting policies (continued)
Insurance service expenses
Insurance service expenses arising from
insurance contracts are recognised in profit or
loss generally as they are incurred. They exclude
repayments of investment components and
comprise the following items.
• Incurred claims
• Amortisation of insurance acquisition cash
flows:
• Losses on onerous contracts and reversals of
such losses.
• Adjustments to the liabilities for incurred
claims that do not arise from the effects of
the time value of money, financial risk and
changes therein.
• Other insurance service expenses
Incurred claims
Claims are claims incurred during the year.
Incurred claims include run-off gains/losses in
respect of previous years. The portion which
can be ascribed to unwinding and/or change in
discount rates is transferred to Insurance
finance income and expenses.
Incurred claims include direct and indirect
claims handling costs, including costs of
inspecting and assessing claims, costs to
prevent, control and mitigate damage and other
direct and indirect costs associated with the
handling of claims incurred in relation insurance
contracts in force.
Incurred claims comprise bonus and premiums
discounts based on defined claims experience
set prior to the period where the insurance
contract was incepted or sold.
Tryg disaggregates changes in the risk
adjustment for non-financial risk between the
insurance service result and insurance finance
income or expenses. Changes relating to the risk
adjustment for non-financial risk are included in
the insurance service result while discounting
effects are included in Net finance income from
reinsurance contracts.
Insurance acquisition cash flows
Insurance acquisition cash flows arise from the
costs of selling, underwriting and starting a
group of insurance contracts (issued or
expected to be issued) that are directly
attributable to the portfolio of insurance
contracts to which the group belongs.
Tryg chooses to expense insurance acquisition
cash flows as they occur for contracts measured
under the PAA, if the coverage period for each
contract in a group is one year or less.
Other insurance service expenses
Other insurance service expenses represent
administration expenses to administrate
insurance contracts in force. Administration
expenses are all other incurred expenses
attributable to the administration of existing
contracts. Expenses relating to future contracts
or expenses that cannot be directly attributed to
the portfolio of insurance contracts e.g. some
development and training costs are expensed as
‘Other costs’ as they incur.
Share-based payment
The Tryg Group’s incentive programmes
comprise an employee bonus scheme and
incentive programmes for executive board, risk
takers and other employees.
Employee bonus scheme
According to the remuneration policy, the
Group’s employees can be granted a bonus in
the form of free shares. When the bonus is
granted, employees can choose between
receiving shares or cash. The expected value of
the shares will be expensed over the
performance period. The scheme will be treated
as a financial instrument, consisting of the right
to cash settlement and the right to request
delivery of shares. The difference between the
value of shares and the cash payment is
recognised in equity and is not remeasured. The
remainder is treated as a liability and is
remeasured until the time of exercise, such that
the total recognition is based on the actual
number of shares or the actual cash amount.
Conditional shares
Conditional shares have been allocated to some
employees in accordance with the incentive
programme.
Equity-settled conditional shares are measured
at the fair value at the allotment date and
recognised under staff costs over the period
from the allotment date until the end of the
deferral period (the transfer date), where the
holder receive free shares.
The shares are recognised at market value and
are accrued from up to five years from
performance year. If the holder retires during
the maturation period but remains entitled to
shares, the remaining expense is recognised in
the current accounting year.
Matching shares
Matching shares have been allocated to some
employees in accordance with the incentive
programme.
The shares are recognised at market value and
are accrued over the three or four year
maturation period, based on the market price at
the time of acquisition. Recognition is from the
end of the month of acquisition under staff
expenses with a balancing entry directly in
equity. If the holder retires during the
maturation period but remains entitled to
shares, the remaining expense is recognised in
the current accounting year.
Net expense from reinsurance contracts held
Income and expenses from reinsurance
contracts are presented separately from
revenue and expenses from insurance
contracts. Income and expenses from
reinsurance contracts, other than insurance
finance income or expenses, are presented in
one line as ‘net expenses from reinsurance
contracts’ in the insurance service result.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 194
.
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33
Accounting policies (continued)
Investment activities
Income from associates includes the Group’s
share of the associates’ net profit.
Income from investment properties before fair
value adjustment represents the profit from
property operations less property management
expenses. Interest and dividends represent
interest earned and dividends received during
the financial year and are recognised as a
separate line item in the income statement.
Coupon on bond designated as fair value
through profit or loss is recognised as interest
and not part of the fair value adjustments.
Realised and unrealised investment gains and
losses, including gains and losses on derivative
financial instruments, value adjustment of
investment property, foreign currency
translation adjustments and the effect of
movements in the yield curve used for
discounting, are recognised as value
adjustments. Investment management charges
represent expenses relating to the management
of investments including salary and
management fees on the investment area. The
external investors share of the result in Tryg
Invest Real Estate are either deducted (in case of
a profit) from or added (in case of a loss) to the
investment result.
Insurance finance income and expenses
Insurance finance income and expenses
comprise changes in the carrying amounts of
groups of insurance and reinsurance contracts
and arising from the effects of the time value of
money, financial risk and changes therein.
Moreover, Insurance finance income and
expenses comprise changes in the carrying
amounts risk adjustment for non financial risks
and arising from the effects of the time value of
money, financial risk and changes therein.
Other income and costs
Other income and costs include income and
expenses which cannot be ascribed to the
Group´s insurance portfolio or investment
assets, including the sale of products for Velliv,
Pension & Livsforsikring A/S and depreciations
of intangibles assets identified in Business
combinations.
Discontinued and divested business
Discontinued and divested business is
consolidated in one item in the income
statement. Discontinued and divested business
includes gross premiums, gross claims, gross
costs, profit/loss on ceded business, insurance
technical interest net of reinsurance, investment
return after insurance technical interest, other
income and costs and tax in respect of the
discontinued business. Any reversal of earlier
impairment is recognised under other income
and costs.
The statement of financial position items
concerning discontinued activities are reported
unchanged under the respective entries
whereas assets and liabilities concerning
divested activities are consolidated under one
item as assets held for sale and liabilities held for
sale.
Statement of financial position
Intangible assets
Goodwill
Goodwill is acquired in connection with
acquisition of business. Goodwill is calculated as
the difference between the cost of the
undertaking and the fair value of acquired
identifiable assets, liabilities and contingent
liabilities at the time of acquisition. Goodwill is
allocated to the cash-generating units under
which management manages the investment
and is recognised under intangible assets.
Goodwill is not amortised but is tested for
impairment at least once per year.
Trademarks and customer relations
Trademarks and customer relations have been
identified as intangible assets on acquisition.
Trademarks with an indefinite useful lifetime,
hence are not amortised but instead tested for
impairment at least once per year.
Customer relations are recognised at fair value
at the time of acquisition and amortised on a
straight-line basis over the expected useful
lifetime of 5–15 years.
Software
Acquired computer software licences are
capitalised on the basis of the costs incidental to
acquiring and bringing to use the specific
software. The costs are amortised based on an
estimated useful lifetime of up to 8 years.
Costs for group developed software that are
directly connected with the production of
identifiable and unique software products,
where there is sufficient certainty that future
earnings will exceed the costs in more than one
year, are reported as intangible assets. Direct
costs include personnel costs for software
development and directly attributable relevant
fixed costs. All other costs connected with the
development or maintenance of software are
continuously charged as expenses.
After completion of the development work, the
asset is amortised according to the straight-line
method over the assessed useful lifetime,
though over a maximum of 8 years. The
amortisation basis is reduced by any
impairment and write-downs.
Assets under construction
Group-developed intangibles are recorded
under the entry “Assets under construction”
until they are put into use, whereupon they are
reclassified as software and are amortised in
accordance with the amortisation periods stated
above.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
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Accounting policies (continued)
Fixed assets
Operating equipment
Fixtures and operating equipment are measured
at cost less accumulated depreciation and any
accumulated impairment losses. Cost
encompasses the purchase price and costs
directly attributable to the acquisition of the
relevant assets until the time when such assets
are ready to be brought into use.
Depreciation of operating equipment is
calculated using the straight-line method over
its estimated useful lifetime as follows:
• IT, 4 years
• Vehicles, 5 years
• Furniture, fittings and equipment, 5-10 years
Leasehold improvements are depreciated over
the expected useful lifetime, however maximally
the term of the lease.
Gains and losses on disposals and retired assets
are determined by comparing proceeds with
carrying amounts. Gains and losses are
recognised in the income statement. When
revalued assets are sold, the amounts included
in the revaluation reserves are transferred to
retained earnings.
Leasing
Right-of-use assets
At inception of a contract, Tryg assesses
whether a contract is, or contains, a lease. It has
the following prerequisites:
• The underlying asset is identifiable
• The group has the right to obtain
substantially all the economic benefits from
use of the asset throughout the period of use
• The group has the right to direct the use of
the asset
Tryg recognises a right-of-use asset and a
corresponding lease liability with respect to all
lease agreements in which it is the lessee,
excluding short-term leases (defined as leases
with a lease term of 12 months or less) and
leases of low value assets.
At inception or on reassessment of a contract
that contains lease components, Tryg allocates
the consideration in the contract to each lease
component based on their relative stand-alone
prices.
Right-of-use asset (ROU asset) and lease liability
are recognised at the lease commencement
date. The ROU asset is initially measured the
cost, which comprises the initial amount of the
lease liability adjusted for
• lease payments made at or before the
commencement date
• any initial direct cost incurred
• estimate of costs to dismantle and remove
the underlying asset or to restore the
underlying asset
• lease incentives received
• ROU assets are tested for impairment.
Lease liability
The lease liability is initially measured at the
present value of the lease payments that are not
paid at the commencement date, discounted by
using the rate implicit in the lease. If this rate
cannot be readily determined, Tryg uses its
incremental borrowing rate. Subsequently, the
lease liability is measured at amortised cost
using the effective interest method and is
presented as part of other debt. The lease
liability is remeasured to reflect changes in
future lease payments. A corresponding
adjustment is made to the carrying amount of
the ROU asset.
Land and buildings
Land and buildings are divided into owner-
occupied property and investment property. All
properties are classified as investment property.
Investment property
Properties held for renting yields that are not
occupied by the Group are classified as
investment properties.
Investment property is recognised at fair value.
Fair value is based on transaction prices for
similar properties, adjusted for any differences
in the nature, location or maintenance condition
of specific assets. If this information is not
available, the Group uses alternative valuation
methods such as discounted cash flow
projections and recent prices in the market.
The fair value is calculated on the basis of
market-specific rental income per property and
typical operating expenses for the coming year.
The resulting operating income is divided by the
required return on the property in per cent,
which is adjusted to reflect market interest rates
and property characteristics, corresponding to
the present value of a perpetual annuity. The
value is subsequently adjusted with the
capitalised value of the return on prepayments
and deposits and adjustments for specific
property issues such as vacant premises or
special tenant terms and conditions. Cf. note 16.
Changes in fair values are recorded in the
income statement.
Impairment test for intangible assets, property
and operating equipment
Operating equipment and intangible assets are
assessed at least once per year to ensure that
the depreciation method and the depreciation
period that is used are connected to the
expected useful lifetime. This also applies to the
salvage value. Write-down is performed if
impairment has been demonstrated.
Goodwill is tested annually for impairment, or
more often if there are indications of
impairment, and impairment testing is
performed for each cash-generating unit to
which the asset belongs. The present value is
normally established using budgeted cash flows
based on business plans. The business plans are
based on past experience and expected market
developments.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
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Accounting policies (continued)
Equity investments in Group undertakings
The parent company’s equity investments in
subsidiaries are recognised and measured using
the equity method. The parent company’s share
of the enterprises’ profits or losses after
elimination of unrealised intra-group profits and
losses is recognised in the income statement.
In the statement of financial position, equity
investments are measured at the pro rata share
of the enterprises’ equity. Subsidiaries with a
negative net asset value are recognised at zero
value. Any receivables from these enterprises
are written down by the parent company’s share
of such negative net asset value where the
receivables are deemed irrecoverable.
If the negative net asset value exceeds the
amount receivable, the remaining amount is
recognised under provisions if the parent
company has a legal or constructive obligation
to cover the liabilities of the relevant enterprise.
Net revaluation of equity investments in
subsidiaries is taken to reserve for net
revaluation under equity if the carrying amount
exceeds cost.
The results of foreign subsidiaries are based on
translation of the items in the income statement
using average exchange rates for the period
unless they deviate significantly from the
transaction day exchange rates. Income and
costs in domestic enterprises denominated in
foreign currencies are translated using the
exchange rates applicable on the transaction
date.
Statement of financial position items of foreign
subsidiaries are translated using the exchange
rates applicable at the statement of financial
position date.
When it is assessed that the parent company no
longer has control over the subsidiary, it will be
transferred to either assets held for sale or
unquoted shares and when sold, it will be
derecognised.
Equity investments in associates
Associates are enterprises in which the Group
has significant influence but not control,
generally in the form of an ownership interest of
between 20% and 50% of the voting rights.
Equity investments in associates are measured
using the equity method and the carrying
amount of the investment represents the
Group’s proportionate share of the enterprises’
net assets. Significant transaction costs are
recognised as part of the acquisition price.
Profit after tax from equity investments in
associates is included as a separate line in the
income statement. Income is made up after
elimination of unrealised intra-group profits and
losses.
Associates with a negative net asset value are
measured at zero value. If the Group has a legal
or constructive obligation to cover the
associate’s negative balance, such obligation is
recognised under liabilities.
Recognition and classification of financial
instruments
Financial instruments are classified as follows
based on the Group's business models:
• The asset is held to collect cash flows from
payments of principal and interest (hold to
collect business model). Measured at
amortised cost after initial recognition.
• The asset is held to collect cash flows from
payments of principal and interest and selling
the asset (hold to collect and sell business
model). Measured at fair value with changes
recognised through other comprehensive
income with reclassification to the income
statement on realisation of the assets.
• Other financial assets are measured at fair
value through profit or loss. These include
assets managed on a fair value basis, held in
the trading book or assets, where contractual
cash flows do not solely comprise interest
and principal of the receivable. It is also still
possible to measure financial assets at fair
value with value adjustment through profit or
loss, when such measurement significantly
reduces or eliminates an accounting
mismatch that would otherwise have
occurred on measurement of assets and
liabilities or recognition of losses and gains
on different bases.
• Generally, financial liabilities are measured at
amortised cost after initial recognition.
For the first two categories, financial assets
must be held within a business model whose
objective is to hold assets to collect contractual
cash flows representing payments of principal
and interest etc combined with limited sales
activity.
If this is not the objective of the business model,
the financial assets will be placed in a category,
which is subject to fair value adjustment
through profit or loss. Financial assets, which, if
measured at amortised cost fair fair value with
changes recognised through other
comprehensive income would result in a
accounting mismatch, are also recognised in
this category.
The Group's financial assets and business
models have been reviewed to ensure correct
classification thereof. The review included an
assessment of whether collecting cash flows is a
significant element, including whether the cash
flows represent solely payments of principal and
interest.
Tryg does not have a business model that
implies recognising fair value adjustments in
other comprehensive income. Thus, bank loans
and deposits are essentially still measured at
amortised cost.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
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Accounting policies (continued)
Financial assets and liabilities measured at
fair value through profit or loss
A financial asset is attributable to this category
• if the asset is not held within a business
model whose objective is to hold assets to
collect cash flows representing payments of
principal and interest and which has limited
sales activity
• if measurement of the asset at amortised
cost or at fair value through other
comprehensive income would result in an
accounting mismatch.
Equity and bond portfolios are generally
measured at fair value through profit or loss.
Bonds which are held to match the insurance
contracts liabilities are designated to be
measured at fair value through profit or loss.
The business model behind the bond portfolio is
not intrinsically based on collecting cash flows
from payments of principal and interest but is
based on, for example, short-term trading
activity and investments focused on cost
minimisation, where contractual cash flows do
not constitute a central element but follow
solely from the investment.
Equity instruments are not based on cash flows
which comprise payments of principal and
interest. Therefore, these instruments are
measured at fair value with value adjustment
through profit or loss.
Derivative financial instruments (derivatives),
which are assets or liabilities, are measured at
fair value through profit or loss, unless they are
classified as hedging instruments.
The investment portfolio is divided into a match
portfolio corresponding to the technical
provisions, and a free portfolio. The objective for
the return on the match portfolio is to
approximately offset the capital gains and losses
on the assets with the corresponding devel
opments on the insurance provisions. The free
portfolio is invested in different asset classes
with a view to obtaining the best risk-adjusted
return.
Realised and unrealised profits and losses that
may arise because of changes in the fair value
for the category financial assets at fair value are
recognised in the income statement in the
period in which they arise.
Financial assets are derecognised when the
rights to receive cash flows from the financial
assets have expired, or if they have been
transferred, and the Group has also transferred
substantially all risks and rewards of ownership.
Financial assets are recognised and
derecognised on a trade date basis, the date on
which the Group commits to purchase or sell
the asset.
The fair values of quoted securities are based on
stock exchange prices at the statement of
financial position date. For securities that are
not listed on a stock exchange, or for which no
stock exchange price is quoted that reflects the
fair value of the instrument, the fair value is
determined using valuation techniques. These
include the use of similar recent arm’s length
transactions, reference to other similar
instruments or discounted cash flow analysis.
Derivative financial instruments and
hedge accounting
The Group’s activities expose it to financial risks,
including changes in share prices, foreign
exchange rates, interest rates and inflation.
Forward exchange contracts and currency
swaps are used for currency hedging of
portfolios of shares, bonds, hedging of foreign
entities and insurance statement of financial
position items. Interest rate derivatives in the
form of futures, forward contracts, swaps and
FRAs are used to manage cash flows and
interest rate risks related to the portfolio of
bonds and insurance provisions. Share
derivatives in the form of futures and options
are used from time to time to adjust share
exposures.
Derivative financial instruments are reported
from the trading date and are measured in the
statement of financial position at fair value.
Positive fair values of derivatives are recognised
as derivative financial instruments under assets.
Negative fair values of derivatives are
recognised under derivative financial
instruments under liabilities. Positive and
negative values are only offset when the
company is entitled or intends to make net
settlement of more financial instruments.
Discounting based on market interest rates is
applied in the case of derivative financial
instruments involving an expected future
cash flow.
Recognition of the resulting gain or loss depends
on whether the derivative is designated as a
hedging instrument and, if so, the nature of the
item being hedged. The Group designates
certain derivatives as hedges of investments in
foreign entities. Changes in the fair value of
derivatives that are designated and qualify as
net investment hedges in foreign entities and
which provide effective currency hedging of the
net investment are recognised in other
comprehensive income. The tangible net asset
value of the foreign entities estimated at the
beginning of the financial year is hedged
90-100% by entering into short-term forward
exchange contracts according to the
requirements of hedge accounting. Changes in
the fair value relating to the ineffective portion
are recognised in the income statement. Gains
and losses accumulated in equity are included in
the income statement on disposal of the foreign
entity.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
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Accounting policies (continued)
Reinsurance contract assets
Portfolios of reinsurance contracts that are
assets and those that are liabilities, are
presented separately in the statement of
financial position. Any assets or liabilities
recognised for cash flows arising before the
recognition of the related group of contracts are
included in the carrying amount of the related
portfolios of contracts.
Expected cash flows from reinsurers are
measured consistently with the amounts
associated with the reinsured insurance
contracts and in accordance with the terms of
each reinsurance contract.
Changes due to unwinding and changes due to
changes in the yield curve or foreign exchange
rates are recognised as ‘Net finance income
from reinsurance contracts’.
The effect of Changes in expected cash flows
that result from changes in the risk of non-
performance by the issuer of a reinsurance
contract held is recognised separately and
disclosed in note 19.
Receivables
Receivables primarily contain accounts
receivable in connection with property.
Other assets
Other assets include current tax assets and cash
at bank and in hand. Current tax assets are
receivables concerning tax for the year adjusted
for on-account payments and any prior-year
adjustments. Cash at bank and in hand is
recognised at nominal value less impairment
provisions at the statement of financial position
date. Reverse repurchase lending to credit
institutions are recognised and measured at
amortised cost, and the return is recognised as
interest income in the income statement.
Impairment charges for loans, advances
and receivables
Impairments corresponding to expected credit
losses are based on a classification of the
individual loans in stages, reflecting the changes
in credit risk since initial recognition.
• Stage 1 covers loans and advances etc
without significant increase in credit risk
since initial recognition. For this category,
impairment provisions at initial recognition
are made corresponding to the expected
credit losses over a period of 12 months for
lending at amortised cost. If there is an
insignificant change in credit risk, the
impairment provisions will be adjusted but
the exposure will be kept at stage 1.
• Stage 2 covers loans and advances etc with
significant increase in credit risk since initial
recognition. For this category, impairment
provisions are made corresponding to the
expected credit losses over the time-to-
maturity.
• Stage 3 covers loans and advances that are
credit impaired, and which have been subject
to individual provisioning on the specific
assumption that the customers will default
on their loans. For this category, impairment
provisions are also made corresponding to
the expected credit losses over the time-to-
maturity.
This model is applied to all instruments in the
scope of the impairment of IFRS 9 measured at
amortised cost.
Tryg has applied the methodology used under
Solvency II to derive the expected credit loss on
a single name exposure. Further, determining
the expected credit loss is subject to
management judgement.
At the statement of financial position date Tryg
has no exposures covered by Stage 2 or Stage 3.
Prepayments and accrued income
Prepayments include expenses paid in respect
of subsequent financial years and interest
receivable. Accrued underwriting commission
relating to the sale of insurance products is also
included.
Equity
Share capital
Shares are classified as equity when there is no
obligation to transfer cash or other assets. Costs
directly attributable to the issue of equity
instruments are shown in equity as a deduction
from the proceeds, net of tax.
Foreign currency translation reserve
Assets and liabilities of foreign entities are
recognised using the exchange rate applicable
at the statement of financial position date.
Income and expense items are recognised using
the average monthly exchange rates for the
period. Any resulting differences are recognised
in Other comprehensive income. When an entity
is wound up or sold, the balance is transferred
to the income statement. The hedging of the
currency risk in respect of foreign entities is also
offset in other comprehensive income in respect
of the part that concerns the hedge.
Contingency fund reserves
Contingency fund reserves are recognised as
part of other reserves under equity. The
reserves may only be used when so permitted
by the Danish Financial Supervisory Authority
and when it is for the benefit of the
policyholders. The Norwegian contingency fund
reserves include provisions for the Norwegian
Natural Perils Pool and security reserve. The
Danish and Swedish provisions comprise
contingency fund provisions. Deferred tax on
the Norwegian and Swedish contingency fund
reserves is allocated.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 199
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Accounting policies (continued)
Additional Tier 1 capital
Perpetual Additional Tier 1 capital with
discretionary payment of interest and principal
is recognised as equity for accounting purposes.
Correspondingly, interest expenses relating to
the issue are recorded as dividend for
accounting purposes. Interest is deducted from
equity at the time of payment.
Dividends
Proposed dividend is part of equity until
payment.
Own shares
The purchase and sale sums of own shares and
dividends thereon are taken directly to retained
earnings under equity. Own shares include
shares acquired for incentive programmes and
share buyback programme.
Proceeds from the sale of own shares in
connection with the matching shares are taken
directly to equity.
Subordinated loan capital
Subordinated debt consists of financial liabilities
in the form of subordinated loan capital and
Additional Tier 1 capital which, in case of
voluntary or compulsory liquidation, will not be
repaid until the claims of ordinary creditors have
been met. Subordinated loan capital is
recognised initially at fair value, net of
transaction costs incurred. Subordinated loan
capital is subsequently stated at amortised cost;
any difference between the proceeds (net of
transaction costs) and the redemption value is
recognised in the income statement over the
borrowing period using the effective interest
method.
Insurance contracts
Insurance and reinsurance contract
classification
Contracts under which Tryg accepts significant
insurance risk are classified as insurance
contracts. Contracts held by Tryg under which it
transfers significant insurance risk related to
underlying insurance contracts are classified as
reinsurance contracts.
Insurance and reinsurance contracts also
expose the Group to financial risk, but does not
include any savings contracts.
To a limited extend Tryg also issues reinsurance
contracts to compensate other insurers for
claims arising from one or more insurance
contracts issued by them.
Insurance and reinsurance contracts
accounting treatment
Tryg assesses its non-life insurance and
reinsurance products to determine whether
they contain distinct components which must
be accounted for under another IFRS
Accounting Standard instead of under IFRS 17.
After separating any distinct components, Tryg
applies IFRS 17 to all remaining components of
the insurance contract. Currently, Tryg’s
products do not include any distinct
components that require separation.
Some reinsurance contracts issued contain
profit commission arrangements. Under these
arrangements, there is a minimum guaranteed
amount that the policyholder will always receive
– either in the form of profit commission, or as
claims, or another contractual payment
irrespective of the insured event happening. The
minimum guaranteed amounts have been
assessed to be highly interrelated with the
insurance component of the reinsurance
contacts and are, therefore, non-distinct
investment components which are not
accounted for separately.
Aggregation and recognition
Insurance contracts are aggregated into groups
for measurement purposes. Groups of
insurance contracts are determined by
identifying portfolios of insurance contracts,
each comprising contracts subject to similar
risks and managed together, and dividing each
portfolio into annual cohorts (i.e. by year of
issue) and each annual cohort into three groups
based on the profitability of contracts:
• any contracts that are onerous on initial
recognition;
• any contracts that, on initial recognition,
have no significant possibility of becoming
onerous subsequently; and
• any remaining contracts in the annual cohort.
An insurance contract issued is recognised from
the earliest of:
• the beginning of its coverage period;
• when the first payment from the policyholder
becomes due or, if there is no contractual
due date, when it is received from the
policyholder; and
• when facts and circumstances indicate that
the contract is onerous.
An insurance contract acquired in a transfer of
contracts or a business combination is
recognised on the date of acquisition.
Reinsurance contracts
Groups of reinsurance contracts are established
such that each group comprises a single
contract.
A group of reinsurance contracts is recognised
on the following date.
• Reinsurance contracts held that provide
proportionate coverage is recognised at the
date on which any underlying insurance
contract is initially recognised. This applies to
the Group’s quota share reinsurance
contracts.
• Other reinsurance contracts held is
recognised at the beginning of the coverage
period of the group of reinsurance contracts.
• Tryg recognises an onerous group of
underlying insurance contracts if Tryg
entered into the related reinsurance contract
held at or before that date.
• Reinsurance contracts acquired is
recognised at the date of acquisition.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
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Accounting policies (continued)
Contract boundary
Contract boundary define the cash flows within
the boundary of each insurance contract.
Cash flows are within the contract boundary if
they arise from substantive rights and
obligations that exist during the reporting period
in which Tryg can compel the policyholder to
pay premiums or has a substantive obligation to
provide services (including insurance coverage
and any investment services).
A substantive obligation to provide services
ends when:
• Tryg has the practical ability to reassess the
risks of the particular policyholder and can
set a price or level of benefits that fully
reflects those reassessed risks; or
• Tryg has the practical ability to reassess the
risks of the portfolio that contains the
contract and can set a price or level of
benefits that fully reflects the risks of that
portfolio, and the pricing of the premiums up
to the reassessment date does not take into
account risks that relate to periods after the
reassessment date.
The reassessment of risks considers only risks
transferred from policyholders to Tryg, which
may include both insurance and financial risks,
but exclude lapse and expense risks.
Tryg issues non-life insurance contracts with a
short period of insurance covers. Tryg apply the
premium allocation model to all insurance
contracts issued.
Cash flows are within the contract boundary of a
reinsurance contract held if they arise from
substantive rights and obligations that exist
during the reporting period in which Tryg is
compelled to pay amounts to the reinsurer or
has a substantive right to receive services from
the reinsurer.
A substantive right to receive services from the
reinsurer ends when the reinsurer:
• has the practical ability to reassess the risks
transferred to it and can set a price or level of
benefits that fully reflects those reassessed
risks; or
• has a substantive right to terminate the
coverage.
The contract boundary is reassessed at each
reporting date to include the effect of changes in
circumstances.
Measurement, insurance contracts
Tryg uses the premium allocation approach to
simplify the measurement of groups of
insurance contracts.
On initial recognition of each group of contracts,
the carrying amount of the liability for remaining
coverage is measured at the premiums received
on initial recognition. Tryg has chosen to
expense insurance acquisition cash flows when
they are incurred.
The coverage period is defined as the period
when an insured event can occur.
Subsequently, the carrying amount of the
liability for remaining coverage is increased by
any premiums received and decreased by the
amount recognised as insurance revenue for
services provided. Services is usually provided
based on passage of time.
Tryg expects that the time between providing
each part of the services and the related
premium due date is no more than a year.
Accordingly, Tryg has chosen not to adjust the
liability for remaining coverage to reflect the
time value of money and the effect of financial
risk.
If at any time during the coverage period, facts
and circumstances indicate that a group of
contracts is onerous, then the Group recognises
a loss in profit or loss and increases the liability
for remaining coverage to the extent that the
current estimates of the fulfilment cash flows
that relate to remaining coverage exceed the
carrying amount of the liability for remaining
coverage.
The fulfilment cash flows are discounted at
current rates (see below).
Claims and claims handling costs including
expected claims handling costs are expensed in
the income statement as incurred based on the
estimated future cash flows to policyholders or
third parties to fulfil the obligations toward
policyholders. Claims include direct and indirect
claims handling costs that arise from events that
have occurred up to the statement of financial
position date even if they have not yet been
reported to the Group.
Liability for Incurred claims is measured as the
total of the expected fulfilment cash flows,
which comprise estimates of future cash flows,
adjusted to reflect the time value of money and
the associated financial risks, and a risk
adjustment for non-financial risk. The fulfilment
cash flows of a group of insurance contracts do
not reflect the Group’s non-performance risk.
The risk adjustment for non-financial risk for the
liability for incurred claims is determined
separately from the other estimates and is the
compensation required for bearing uncertainty
about the amount and timing of the cash flows
that arises from non-financial risk. The risk
adjustment is based on statistical methods (cost
of capital) and the disclose of the confidence
level corresponding to the results of that
technique is in note 23.
Tryg disaggregates the change in the risk
adjustment for non-financial risk between the
insurance service result and the effect of
discounting in insurance finance income or
expenses.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 201
.
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33
Accounting policies (continued)
Tryg recognises the liability for incurred claims
of a group of insurance contracts at the amount
of the fulfilment cash flows relating to incurred
claims. The future fulfilment cash flows are
discounted (at current rates).
Fulfilment cash flows are estimated using the
assessments of individual cases reported to the
Group and statistical analyses of claims incurred
but not reported and the expected ultimate cost
of more complex claims that may be affected by
external factors (such as court decisions). The
provisions include claims handling costs.
Liability for incurred claims is discounted to
reflect the time value of money and the
associated financial risks at the reporting date.
Discount rate reflects the yield curve in the
appropriate currency for instruments that
expose the holder to no or negligible credit risk,
adjusted to reflect the liquidity characteristics of
payment of future incurred claims.
Assumptions and interdependencies
Level of aggregation and the evaluation of
contract boundary are significant assumptions
as these define the use of the premium
allocation model’s simplified measurement
model.
Discounting affects in particular long tailed
claims where payments may be made as
annuity payments or where the assessment of
the actual claim takes time. This is the case for
claims in motor liability, professional liability,
workers’ compensation, personal accident and
health insurance classes.
Liability for incurred claims is determined for
each line of business based on actuarial
methods. Where such business lines
encompass more than one business area,
claims provisions are allocated to segments
based on pragmatic criteria. The models
currently used are Chain-Ladder, Bornhuetter-
Ferguson and the Loss Ratio method among
others. Chain-Ladder techniques are used for
lines of business with a stable run-off pattern.
The Bornhuetter-Ferguson method, and
sometimes the Loss Ratio method, are used for
accident years in which the future run-off is
highly uncertain.
In some instances, historic data used in the
actuarial models is not necessarily predictive for
the expected future development of claims. This
is the case with legislative changes. In this
situation the a priori estimate used for premium
increases is used to reflect the expected
increase in claims based on the new legislation.
This estimate is used for determining the
change in the level of claims. The estimate is
maintained until new loss history materialises
which can be used for re-estimation.
Several assumptions and estimates underlying
the calculation of the liability for incurred claims
are interdependent. Most importantly, this can
be expected to be the case for assumptions
relating to interest rates and inflation.
Annuity payments and personal accident are
areas in which explicit inflation assumptions are
used, with claim payments being indexed based
on wage increases or consumer price inflation.
Inflation curves that reflects the market’s
inflation and wage increase expectations are
used to approximate the future indexation.
For other lines of business, with implicit inflation
assumptions, the actuarial models will cause a
certain lag in predicting the level of future losses
when a change in inflation occurs. On the other
hand, the effect of discounting will show
immediately as a consequence of inflation
changes to the extent that such changes affect
the interest rate.
Other correlations are deemed not to be
significant.
Measurement, reinsurance contracts
The Group applies the same accounting policies
to measure a group of reinsurance contracts,
adapted where necessary to reflect features that
differ from those of insurance contracts.
If a loss-recovery component is created for a
group of reinsurance contracts measured under
the PAA, then Tryg adjusts the carrying amount
of the asset for remaining coverage.
Risk adjustment for non-financial risk for
reinsurance contracts are modelled using
similar statistical models as for direct insurance
contract so that it represents the amount of risk
being transferred by the holder of the group of
reinsurance contracts to the issuer of those
contracts.
Presentation
Portfolios of insurance contracts that are assets
and those that are liabilities, and portfolios of
reinsurance contracts that are assets and those
that are liabilities, are presented separately in
the statement of financial position. Any assets or
liabilities recognised for cash flows arising
before the recognition of the related group of
contracts are included in the carrying amount of
the related portfolios of contracts.
Tryg is subject to Solvency II capital
requirements and regulation. The groups
portfolios of insurance contracts are are split in
line of businesses on the basis of the Solvency II
regulation.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 202
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33
Accounting policies (continued)
Employee benefits
Pension obligations
The Group operates various pension schemes.
The schemes are funded through contributions
to insurance companies or trustee-administered
funds. In Norway, the Group operated a defined-
benefit plan which was closed at 01 January
2020. In Denmark, the Group operates a
defined-contribution plan. A defined-
contribution plan is a pension plan under which
the Group pays fixed contributions into a
separate entity (a fund) and will have no legal or
constructive obligation to pay further
contributions. In Sweden, the Group complies
with the industry pension agreement, FTP-
Planen. FTP-Planen is primarily a defined-
benefit plan as regards the future pension
benefits. Försäkringsbranschens Pensionskassa
(FPK) is unable to provide sufficient information
for the Group to use defined-benefit accounting.
The plan is on that basis accounted for as a
defined-contribution plan. As part of the
termination of the defined-benefit plan in
Norway, an agreement of compensation to the
employees covered by the plan was agreed. A
liability has been established to cover the
expected compensation to be paid to the
employees upon retirement from the company.
If the employee leaves before retirement only a
part of the compensation is paid. There is no
future actuarial assumptions related to the
liability, only uncertainty is whether the
employees stays to retirement or not.
Other employee benefits
Employees of the Group are entitled to a fixed
payment when they reach retirement and when
they have been employed with the Group for 25
and for 40 years. The Group recognises this
liability at the time of signing the contract of
employment.
In special instances, the employee can enter
into a contract with the Group to receive
compensation for loss of pension benefits
caused by reduced working hours. The Group
recognises this liability based on statistical
models.
Income tax and deferred tax
The Group expenses current tax according to
the tax laws of the jurisdictions in which it
operates. Current tax liabilities and current tax
receivables are recognised in the statement of
financial position as estimated tax on the
taxable income for the year, adjusted for change
in tax on prior years’ taxable income and for tax
paid under the on-account tax scheme.
Deferred tax is measured according to the
statement of financial position liability method
on all timing differences between the tax and
accounting value of assets and liabilities.
Deferred income tax is measured using the tax
rules and tax rates that apply in the relevant
countries on the statement of financial position
date when the deferred tax asset is realised, or
the deferred income tax liability is settled.
Deferred income tax assets, including the tax
value of tax losses carried forward, are
recognised to the extent that it is probable that
future taxable profit will be realised against
which the temporary differences can be offset.
Deferred income tax is provided on temporary
differences concerning investments, except
where Tryg controls when the temporary
difference will be realised, and it is probable that
the temporary difference will not be realised in
the foreseeable future.
Other provisions
Provisions are recognised when the Group has a
legal or constructive obligation because of an
event prior to or at the statement of financial
position date, and it is probable that future
economic benefits will flow out of the Group.
Provisions are measured at the best estimate by
management of the expenditure required to
settle the present obligation.
Provisions for restructuring are recognised as
obligations when a detailed formal restructuring
plan has been announced prior to or at the
statement of financial position date at the latest
to the persons affected by the plan.
Own insurance is included under other
provisions. The provisions apply to the Group’s
own insurance claims and are reported when
the damage occurs according to the same
principle as the Group’s other claims provisions.
Debt
Debt comprises debt in connection with direct
insurance and reinsurance, amounts owed to
credit institutions, current tax obligations, debt
to group undertakings and other debt. Other
liabilities are assessed at amortised cost based
on the effective interest method.
Debt related to leasing and external investors
share of investment assets is included in other
debt. External investors share of investment
assets relates to bonds and investment
properties.
Repo deposits from credit institutions are
recognised and measured at amortised cost,
and the return is recognised as interest
expenses in the income statement.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 203
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33
Accounting policies (continued)
Cash flow statement
The consolidated cash flow statement is
presented using the direct method and shows
cash flows from operating, investing and
financing activities as well as the Group’s cash
and cash equivalents at the beginning and end
of the financial year. No separate cash flow
statement has been prepared for the parent
company because it is included in the
consolidated cash flow statement. Cash flows
from operating activities are calculated whereby
major classes of gross cash receipts and gross
cash payments are disclosed.
Cash flows from investing activities comprise
payments in connection with the purchase and
sale of intangible assets, property, plant and
equipment as well as financial assets and
deposits with credit institutions.
Cash flows from financing activities comprise
changes in the size or composition of Tryg’s
share capital and related costs as well as the
raising of loans, repayments of interest-bearing
debt and the payment of dividends.
Cash and cash equivalents comprise cash and
demand deposits.
Other
The amounts in the report are disclosed in
whole numbers of DKKm, unless otherwise
stated. The amounts have been rounded and
consequently the sum of the rounded amounts
and totals may differ slightly.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 204
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Parent company
DKKm
2024
2023
Note
Investment activities
1
Income from subsidiaries
4,859
4,358
Income from associates
-1
0
Interest income
6
1
2
Value adjustment
-9
9
Interest expenses
-12
-563
Administration expenses in connection with investment activities
-6
-6
Total investment return
4,836
3,798
3
Other costs
-122
-155
Profit/loss before tax
4,715
3,643
4
Tax
28
151
Profit/loss for the period
4,742
3,794
Proposed distribution for the period:
Dividend
4,844
4,734
Transferred to reserve for net revaluation according to the equity method
292
-3,328
Transferred to retained earnings
-394
2,387
4,742
3,794
Parent company
DKKm
2024
2023
Note
Profit/loss for the period
4,742
3,794
Other comprehensive income which cannot subsequently be reclassified
as profit or loss
Actuarial gains/losses on defined-benefit pension plans
-1
-2
Tax on actuarial gains/losses on defined-benefit pension plans
0
0
-1
-1
Other comprehensive income which can subsequently be reclassified as
profit or loss
Exchange rate adjustments of foreign entities
-1,030
-105
Hedging of currency risk in foreign entities
262
130
Tax on hedging of currency risk in foreign entities
-68
-33
-837
-8
Total other comprehensive income
-838
-9
Comprehensive income
3,905
3,785
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Income and comprehensive income statement
Annual Report 2024 | Tryg A/S | 205
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Parent company
DKKm
2024
2023
Note
Assets
5
Equity investments in subsidiaries
38,582
39,169
6
Equity investments in associates
0
20
Total investments in associates and subsidiaries
38,582
39,189
Total investment assets
38,582
39,189
Receivables from subsidiaries
0
261
Total receivables
0
261
7
Current tax assets
27
151
Cash at bank and in hand
1
8
Total other assets
29
159
Other prepayments and accrued income
0
41
Total prepayments and accrued income
0
41
Total assets
38,611
39,650
Parent company
DKKm
2024
2023
Note
Equity and liabilities
Equity
37,877
39,364
Debt to subsidiaries
684
211
Other debt
50
75
Total debt
734
286
Total equity and liabilities
38,611
39,650
8
Contractual obligations, contingent liabilities and collateral
9
Related parties
10
Reconciliation of profit/loss and equity
11
Accounting policies
Contents
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Financial results
Governance
Sustainability statement
Financial statements
Statement of financial position
Annual Report 2024 | Tryg A/S | 206
-
Parent company
DKKm
Share capital
Revaluation
reserves
Retained
earnings
Proposed
dividend
Non-
controlling
interest
Total equity
Equity at 31 December 2023
3,174
126
34,889
1,174
1
39,364
2024
Profit/loss for the period
292
-394
4,844
4,742
Other comprehensive income
-838
0
-838
Total comprehensive income
0
-545
-394
4,844
0
3,905
Nullification of own shares
-92
92
0
Dividend paid
-4,816
-4,816
Dividend, own shares
76
76
Purchase and sale of own shares
-707
-707
Share-based payment
56
56
Total changes in equity in 2024
-92
-545
-877
28
0
-1,487
Equity at 31 December 2024
3,082
-419
34,012
1,202
1
37,877
Equity at 1 January 2023
3,273
3,463
34,719
1,047
1
42,504
2023
Profit/loss for the period
-3,328
2,387
4,734
3,794
Other comprehensive income
-9
0
-9
Total comprehensive income
0
-3,337
2,387
4,734
0
3,785
Nullification of own shares
-99
99
0
Dividend paid
-4,607
-4,607
Dividend, own shares
135
135
Purchase and sale of own shares
-2,531
-2,531
Share-based payment
79
79
Total changes in equity in 2023
-99
-3,337
169
127
0
-3,139
Equity at 31 December 2023
3,174
126
34,889
1,174
1
39,364
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Statement of changes in equity
Annual Report 2024 | Tryg A/S | 207
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1
Income from subsidiaries
Parent company
DKKm
2024
2023
Tryg Invest A/S
14
18
Fordelsselskabet A/S
0
-24
Scandi JV Co A/S
7
437
Tryg Forsikring A/S
4,838
3,927
4,859
4,358
2
Value adjustments
Value adjustments only consist of currency adjustments both in 2023 and 2024.
3
Other costs
Administration expenses
-122
-155
-122
-155
Remuneration for the Executive Board is paid partly by Tryg A/S and partly by Tryg Forsikring A/S
and is charged to Tryg A/S via the cost allocation. Refer to note 7 in the Tryg Group for a
specification of the audit fee.
Average number of full-time employees for the year
10
10
4
Tax
Parent company
DKKm
2024
2023
Reconciliation of tax costs
Tax on profit/loss for the year
-38
-180
Difference between Danish tax percent and local tax percent
6
23
Tax adjustments, previous years
0
0
Adjustment of non-taxabale income and costs
4
7
-28
-151
Effective tax rate
%
%
Tax on profit/loss for the year
26.0
25.2
Difference between Danish tax percent and local tax percent
-4.0
-3.2
Tax adjustments, previous years
0.1
0.0
Adjustment of non-taxabale income and costs
-3.0
-1.0
Net current tax at 31 December
19.1
21.0
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 208
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5
Equity investments in subsidiaries
Parent company
DKKm
2024
2023
Cost
Cost at 1 January
39,043
69,061
Additions for the year
40
3
Disposals for the year
-83
-30,021
Cost at 31 December
39,001
39,043
Revaluation and impairment to net asset value
Revaluation and impairment at 1 January
126
3,463
Revaluations for the year
4,096
3,693
Dividend paid
-4,642
-7,030
Revaluation and impairment at 31 December
-419
126
Carrying amount at 31 December
38,582
39,169
Name, registered office and activity
City
Ownership
share in %
Profit/loss,
DKKm
Equity,
DKKm
2024
Tryg Invest A/S
Ballerup
100
14
91
Scandi JV Co A/S
Ballerup
100
7
58
Tryg Forsikring A/S
Ballerup
100
4,911
39,419
2023
Tryg Invest A/S
Ballerup
100
18
77
Fordelsselskabet A/Sa)
Ballerup
100
-24
6
Scandi JV Co A/S
Ballerup
100
437
11
Tryg Forsikring A/S
Ballerup
100
3,984
40,062
a) Fordelsselskabet A/S was sold in April 2024
6
Equity investments in associates
Parent company
DKKm
2024
2023
Cost
Cost at 1 January
20
185
Disposals for the year
-20
-165
Cost at 31 December
0
20
Carrying amount at 31 December
0
20
7
Current tax assets
Reconciliation of tax costs
Tax receivable at 1 January
151
106
Current tax for the year
27
151
Tax paid for the year
-151
-106
Net current tax at 31 December
27
151
8
Contractual obligations, contingent liabilities and collateral
Tryg Groups Danish companies are in majority part of a joint taxation with TryghedsGruppen
smba, with some exemptions due to Danish legislation. TryghedsGruppen smba is the
administration company in the Danish joint taxation group. The Danish companies under the
joint taxation group are jointly liable for any taxes to be withheld and paid in the group,
including income taxes, and taxes withheld at source such as taxes on interest and dividends.
Tryg A/S has no significant disputes. Management believes that the outcome of these disputes will
not affect Tryg A/S financial position significantly beyond the obligations recognised in the
statement of financial position at 31 December 2024.
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 209
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9
Related parties
Tryg A/S has no related parties with a controlling influence other than the parent company,
TryghedsGruppen smba. Related parties with a significant influence include the Supervisory
Board, the Executive Board (which is considered Key Management) and their members’ related
family.
Parent company, TryghedsGruppen smba
TryghedsGruppen smba controls 47.9% (46.3% at 31 December 2023) of the total shares in Tryg
A/S. This amounts to TryghedsGruppen smba controlling 48.1% (47.5% at 31 December 2023) of
the shares outstanding in Tryg A/S as at 31 December 2024.
Transactions with Group undertakings and associates
Tryg A/S exercises full control over Tryg Forsikring A/S, Scandi JV Co A/S, Scandi Co 3 A/S and
Tryg Invest A/S.
In 2024 Tryg Forsikring A/S paid Tryg A/S DKK 4,642m (DKK 7,030m in 2023) and Tryg A/S paid
TryghedsGruppen smba DKK 2,265m (DKK 2,102m in 2023) in dividends.
Parent company
DKKm
2024
2023
Intra-Group trading involved
- Providing and receiving services
18
9
- Intra-Group accounts
-684
50
- Interest
-12
-562
•
The intra-group trading is primarily against Tryg Forsikring A/S
•
Administration fee, etc. is settled on a cost-recovery basis.
•
Intra-group accounts are offset and carry interest on market terms.
Specification of remuneration
DKKm 2024
Number of
persons
Base salary
incl. car
allowancea)
Share-
based
variable
salaryb)
Cash
variable
salaryc)
Pension
Total
Supervisory Board
15
12
0
0
0
12
Executive Board
5
33
9
4
8
54
Risk-takersd)
1
0
0
0
0
0
21
45
9
4
8
65
Number of
persons
(nom.)
Severance
pay
(DKKm)
Of which retired
Supervisory Board
1
0
Executive Board
0
0
Risk-takers
0
0
1
0
Contents
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Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 210
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9
Related parties (continued)
Parent company
DKKm 2023
Number of
persons
Base salary
incl. car
allowancea)
Share-
based
variable
salaryb)
Cash
variable
salaryc)
Pension
Total
Supervisory Board
16
12
0
0
0
12
Executive Board
7
30
18
10
8
66
Risk-takersd)
1
0
0
0
0
0
24
41
18
10
8
77
Number of
persons
(nom.)
Severance
pay
(DKKm)
Of which retired
Supervisory Board
1
0
Executive Board
2
14
Risk-takers
0
0
3
14
a) Car allowance is not included in the base salary for the Supervisory Board
b) Total expenses recognised in 2024 and 2023 for matching shares and conditional shares allocated in 2024 and previous
year.
c) Including non-competition clause
d) Risk-takers in Tryg A/S includes only one employee, wherefore salary and pension is not presented. The amounts are
included in note 30 for Tryg Group.
Base salary are charges incurred during the financial year. Variable salary includes the charges for
conditional shares, which are recognised over a deferral period up to 5 years from performance
year 2024. The Executive Board and risk-takers are included in incentive programmes. Please
refer to note 31 for Tryg Group for more information. The members of the Supervisory Board in
Tryg A/S are paid with a fixed remuneration and are not covered by the incentive schemes.
The members of the Executive Board are paid a fixed remuneration, pension, car allowance,
special allowances, and staff benefits.
The variable salary is awarded with 40% cash, and 60% conditional shares which are deferred for
5 years for the Executive Board from performance year 2024. Please refer to ’Corporate
governance’.
Each member of the Executive Board is entitled to 12 months’ notice and severance pay equal to
12 months’ salary plus pension contribution. If a change of control clause is actioned COO is
entitled to severance pay equal to 36 months’ salary.
Risk-takers are defined as employees whose activities have a significant influence on the
company’s risk profile. The Supervisory Board decides which employees should be considered to
be risk-takers.
10
Reconciliation of profit/loss and equity
The executive order on application of IFRS Accounting Standards for companies subject to the
Danish Insurance Business Act issued by the Danish FSA requires disclosure of differences
between Financial Statement prepared in accordance with the IFRS Accounting Standards and the
rules issued by the Danish FSA.
There is no difference in profit/loss or equity recognised after Danish FSA and IFRS Accounting
Standards.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 211
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11
Accounting policies
Please refer to Tryg Group's accounting policies in note 33.
Accounting error
In the financial statements for 2023 there was an accounting error in the Financial statements of
the Parent company, related to the recognition of some subordinated loans classified as Equity in
Tryg Forsikring A/S. The loans classified as Equity should not have been recognised in the Parent
company Tryg A/S. It has no affect on the consolidated numbers, key figures or ratios in Tryg
Group due to line by line consolidation.
The accounting error had the following affect on Profit/loss for the year and Equity and therefore
comparative figures have been restated accordingly.
DKKm
Financial
Statements
2023
Change
Restated
2023
Income from subsidiaries
4,415
-57
4,358
Profit/loss for the year
3,851
-57
3,794
Equity investments in subsidiaries
40,156
-987
39,169
Total Assets
40,637
-987
39,650
Equity
40,351
-987
39,364
Total equity and liabilities
40,637
-987
39,650
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Notes
Annual Report 2024 | Tryg A/S | 212
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Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
DKKm
2024
2024
2024
2024
2023
2023
2023
2023
2022
2022
Private
Insurance revenue
6,621
6,646
6,455
6,378
6,203
6,180
6,070
6,002
6,010
6,274
Insurance service result
1,095
1,345
1,323
735
991
877
1,104
828
1,027
1,254
Key ratios
Gross claims ratio
70.4
65.9
64.3
74.5
70.0
71.8
69.1
72.2
67.6
66.8
Net reinsurance ratio
0.8
1.1
2.1
1.0
1.6
1.4
0.1
1.4
2.8
0.1
Claims ratio, net of reinsurance
71.2
67.0
66.4
75.5
71.5
73.2
69.2
73.6
70.3
66.9
Expense ratio
12.2
12.8
13.1
13.0
12.5
12.6
12.6
12.6
12.6
13.1
Combined ratio
83.5
79.8
79.5
88.5
84.0
85.8
81.8
86.2
82.9
80.0
Combined ratio exclusive of run-off
85.4
82.5
81.9
90.5
85.4
87.4
82.2
87.2
84.1
81.9
Commercial
Insurance revenue
2,409
2,431
2,379
2,369
2,315
2,304
2,286
2,273
2,306
2,354
Insurance service result
572
670
717
396
623
463
523
401
414
481
Key ratios
Gross claims ratio
52.1
49.6
48.9
65.9
56.0
57.3
65.9
61.4
70.4
61.1
Net reinsurance ratio
8.1
8.2
5.6
2.2
0.3
7.3
-4.0
5.1
-4.7
3.4
Claims ratio, net of reinsurance
60.2
57.8
54.5
68.1
56.2
64.6
61.8
66.5
65.6
64.5
Expense ratio
16.1
14.6
15.4
15.2
16.9
15.3
15.3
15.9
16.4
15.1
Combined ratio
76.3
72.4
69.9
83.3
73.1
79.9
77.2
82.3
82.0
79.6
Combined ratio exclusive of run-off
78.6
74.1
71.9
88.4
77.5
84.0
80.8
83.9
87.5
83.6
Corporate
Insurance revenue
704
709
710
785
879
865
844
914
904
917
Insurance service result
41
115
171
144
41
172
131
246
30
54
Key ratios
Gross claims ratio
78.2
58.7
62.4
100.8
69.0
54.6
116.7
42.0
75.0
74.4
Net reinsurance ratio
1.6
11.3
0.5
-31.8
14.3
12.1
-44.8
19.9
6.6
7.4
Claims ratio, net of reinsurance
79.8
70.0
62.9
69.0
83.3
66.8
71.9
61.9
81.5
81.9
Expense ratio
14.4
13.7
13.0
12.7
12.1
13.3
12.6
11.2
15.1
12.2
Combined ratio
94.1
83.7
75.9
81.7
95.4
80.1
84.4
73.1
96.6
94.1
Combined ratio exclusive of run-off
101.7
86.7
80.8
97.2
105.9
93.9
106.2
86.4
95.9
101.2
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Quarterly outline - Segments
Annual Report 2024 | Tryg A/S | 213
-
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
DKKm
2024
2024
2024
2024
2023
2023
2023
2023
2022
2022
Othera)
Insurance revenue
312
329
348
390
411
447
521
610
749
1,010
Insurance service result
0
0
0
0
0
0
0
0
0
0
Tryg total
Insurance revenue
10,046
10,115
9,893
9,921
9,808
9,797
9,722
9,799
9,969
10,555
Insurance service result
1,708
2,130
2,212
1,275
1,654
1,513
1,759
1,474
1,472
1,785
Net investment result
-265
444
347
117
146
265
53
167
549
-203
Other income and costs
-409
-441
-430
-384
-411
-553
-583
-455
-644
-618
Profit/loss before tax
1,033
2,134
2,129
1,007
1,389
1,225
1,229
1,187
1,377
964
Tax
-247
-523
-486
-232
-258
-311
-307
-302
-296
-336
Profit/loss
786
1,611
1,642
776
1,129
914
922
885
1,081
628
Key ratios
Gross claims ratio
66.4
61.3
60.3
74.5
66.4
66.6
72.7
66.5
69.0
66.2
Net reinsurance ratio
2.7
3.6
2.8
-1.4
2.4
3.9
-5.0
4.2
1.3
1.6
Claims ratio, net of reinsurance
69.1
64.9
63.2
73.1
68.9
70.5
67.6
70.7
70.3
67.8
Expense ratio
13.3
13.3
13.6
13.5
13.5
13.3
13.3
13.3
13.8
13.5
Combined ratio
82.5
78.2
76.8
86.6
82.4
83.8
80.9
84.0
84.0
81.3
Combined ratio exclusive of run-off
84.9
80.7
79.4
90.6
85.4
87.1
84.1
86.2
86.1
84.2
a) Amounts relating to Trygg-Hansa and Codan Norway acquisitions. Please refer to note 3 Insurance service result and note 33
Accounting policies in the financial statements for 2024
A further detailed version of the presentation can be downloaded from
tryg.com/uk>investor> Downloads>tables
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Quarterly outline - Segments
Annual Report 2024 | Tryg A/S | 214
-
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
DKKm
2024
2024
2024
2024
2023
2023
2023
2023
2022
2022
Danish general insurance
Insurance revenue
4,556
4,609
4,571
4,471
4,434
4,334
4,361
4,267
4,115
4,133
Insurance service result
899
989
819
616
761
657
1,001
781
517
587
Run-off gains/losses, net of reinsurance
134
51
84
17
55
269
204
103
25
97
Key ratios
Gross claims ratio
63.9
61.2
62.5
72.7
69.1
66.6
64.5
66.0
74.7
71.2
Net reinsurance ratio
3.5
2.8
4.5
-0.2
1.1
4.3
-0.9
2.6
0.0
1.1
Claims ratio, net of reinsurance
67.4
64.0
66.9
72.5
70.2
70.9
63.6
68.6
74.6
72.3
Expense ratio
12.8
14.5
15.2
13.7
12.6
14.0
13.5
13.1
12.8
13.5
Combined ratio
80.3
78.5
82.1
86.2
82.8
84.8
77.0
81.7
87.4
85.8
Run-off, net of reinsurance (%)
-2.9
-1.1
-1.8
-0.4
-1.2
-6.2
-4.7
-2.4
-0.6
-2.3
Number of full-time employees, end of period
3,154
3,133
3,208
3,288
3,423
3,496
3,449
3,403
3,345
3,307
Norwegian general insurance
NOK/DKK, average rate for the period
63.24
64.18
64.17
65.61
64.25
64.77
63.54
68.92
71.66
74.03
Insurance revenue
2,125
2,083
2,020
2,054
2,014
1,993
1,905
2,049
2,137
2,175
Insurance service result
130
311
240
-45
96
125
366
75
278
410
Run-off gains/losses, net of reinsurance
10
51
35
17
56
22
69
41
96
86
Key ratios
Gross claims ratio
79.5
67.5
74.7
83.6
75.2
76.7
66.7
76.4
63.8
66.4
Net reinsurance ratio
0.7
5.0
1.3
5.4
6.5
4.0
1.1
6.5
8.3
1.9
Claims ratio, net of reinsurance
80.3
72.5
76.0
89.0
81.7
80.8
67.8
82.8
72.2
68.2
Expense ratio
13.6
12.5
12.1
13.2
13.6
13.0
13.0
13.5
14.8
12.9
Combined ratio
93.9
85.1
88.1
102.2
95.2
93.7
80.8
96.4
87.0
81.2
Run-off, net of reinsurance (%)
-0.5
-2.5
-1.7
-0.8
-2.8
-1.1
-3.6
-2.0
-4.5
-4.0
Number of full-time employees, end of period
1,318
1,327
1,331
1,352
1,350
1,408
1,385
1,375
1,344
1,341
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Quarterly outline - Geography
Annual Report 2024 | Tryg A/S | 215
-
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
DKKm
2024
2024
2024
2024
2023
2023
2023
2023
2022
2022
Swedish general insurance
SEK/DKK, average rate for the period
64.96
65.24
64.53
66.60
64.33
63.42
65.25
66.54
68.18
70.21
Insurance revenue
2,962
3,014
2,882
2,937
2,875
2,953
2,873
2,811
2,911
3,182
Insurance service result
627
810
1,147
700
790
719
391
611
687
774
Run-off gains/losses, net of reinsurance
86
133
121
336
166
13
18
69
70
96
Key ratios
Gross claims ratio
63.7
58.7
47.7
71.8
56.9
61.5
88.7
61.5
61.7
60.2
Net reinsurance ratio
1.3
2.4
0.4
-8.9
0.8
1.7
-15.3
3.7
0.4
1.6
Claims ratio, net of reinsurance
65.0
61.1
48.1
62.9
57.7
63.2
73.4
65.2
62.1
61.9
Expense ratio
13.8
12.1
12.1
13.3
14.8
12.5
13.0
13.0
14.3
13.8
Combined ratio
78.8
73.1
60.2
76.2
72.5
75.7
86.4
78.3
76.4
75.7
Run-off, net of reinsurance (%)
-2.9
-4.4
-4.2
-11.4
-5.8
-0.4
-0.6
-2.5
-2.4
-3.0
Number of full-time employees, end of period
2,085
2,076
2,058
2,033
1,973
1,950
1,947
1,906
1,781
1,776
Other European countriesa)
Insurance revenue
90
79
72
69
73
69
61
61
56
55
Insurance service result
51
20
6
4
7
12
0
8
-10
15
Run-off gains/losses, net of reinsurance
4
4
2
4
4
4
2
3
2
1
Number of full-time employees, end of period
65
64
66
62
59
57
55
53
49
51
Otherb)
Insurance revenue
312
329
348
390
411
447
521
610
749
1,010
Insurance service expenses
-312
-329
-348
-390
-411
-447
-521
-610
-749
-1,010
Insurance service result
0
0
0
0
0
0
0
0
0
0
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Quarterly outline - Geography
Annual Report 2024 | Tryg A/S | 216
-
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
DKKm
2024
2024
2024
2024
2023
2023
2023
2023
2022
2022
Tryg total
Insurance revenue
10,046
10,115
9,893
9,921
9,808
9,797
9,722
9,799
9,969
10,555
Insurance service result
1,708
2,130
2,212
1,275
1,654
1,513
1,759
1,474
1,473
1,785
Net investment result
-265
444
347
117
146
265
53
167
549
-203
Other income and costs
-409
-441
-430
-384
-411
-553
-583
-455
-644
-618
Profit/loss before tax
1,033
2,134
2,129
1,007
1,389
1,225
1,229
1,187
1,377
964
Run-off gains/losses, net of reinsurance
233
239
242
375
281
309
293
217
193
280
Key ratios
Gross claims ratio
66.4
61.3
60.3
74.5
66.4
66.6
72.7
66.5
69.0
66.2
Net reinsurance ratio
2.7
3.6
2.8
-1.4
2.4
3.9
-5.0
4.2
1.3
1.6
Claims ratio, net of reinsurance
69.1
64.9
63.2
73.1
68.9
70.5
67.6
70.7
70.3
67.8
Expense ratio
13.3
13.3
13.6
13.5
13.5
13.3
13.3
13.3
13.8
13.5
Combined ratio
82.5
78.2
76.8
86.6
82.4
83.8
80.9
84.0
84.0
81.3
Run-off, net of reinsurance (%)
-2.4
-2.4
-2.5
-3.9
-3.0
-3.3
-3.2
-2.4
-2.1
-2.9
Number of full-time employees, end of period
6,621
6,600
6,662
6,734
6,805
6,910
6,836
6,736
6,518
6,475
a) Comprises credit & surety insurance (Tryg Trade) in European countries besides Denmark, Norway and Sweden.
b) Reclassification relating to claims provisions from the Trygg-Hansa and Codan Norway acquisition. Please refer to note 3 -
Insurance service result and note 33 - Accounting policies in the financial statements for 2024
Contents
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Strategy
Financial results
Governance
Sustainability statement
Financial statements
Quarterly outline - Geography
Annual Report 2024 | Tryg A/S | 217
-
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Group chart
Annual Report 2024 | Tryg A/S | 218
Tryg
Invest A/S
Company
Organisation chart at 1 January 2025. Companies and branches are wholly
owned by Danish owners and domiciled in Denmark, unless otherwise
stated.
Branch
Trygg-Hansa
Försäkring
(Branch Sweden)
Tryg Forsikring
(Branch Germany)
Tryg Forsikring
(Branch Finland)
Tryg Forsikring
(Branch Austria)
Tryg Forsikring
(Branch UK)
Tryg Nederland
(Branch The
Netherlands)
Tryg Forsikring
(Branch Belgium)
Tryg Forsikring
(Branch Schweiz)
Tryg Forsikring
(Branch Ireland)
Tryg Forsikring
incl. Enter
(Branch Norway)
Tryg
Livsforsikring A/S
Holmia
Livförsäkring AB
(Sweden)
Tryg
Ejendomme A/S
Tryg Forsikring A/S
Forsikrings-
Aktieselskabet
Alka Liv II
Tryg Invest AIF-
SIKAV
(>90%)
Investerings-
selskabet af 1.
september 2024 A/S
Tryg A/S
TryghedsGruppen smba
(47.9%)
Other shareholders
(52.1%)
Tryg
Invest A/S
Scandi JV Co A/S
Scandi Co 3 A/S
Trygg-Hansa
Livförsäkring
(Branch Sweden)
-
Claims ratio, net of reinsurance
Gross claims ratio + net reinsurance ratio.
Combined ratio
The sum of the gross claims ratio, the net
reinsurance ratio and the gross expense ratio.
Danish general insurance
Comprises the legal entities Tryg Forsikring A/S,
Tryg Livsforsikring A/S, Forsikrings-
Aktieselskabet Alka Liv II and excluding the
Norwegian and Swedish branches.
Diluted average number of shares
Average number of shares adjusted for number
of shares which may potentially dilute.
Discounting
Expresses recognition in the financial
statements of expected future payments at a
value below the nominal amount, as the
recognised amount carries interest until
payment. The size of the discount depends on
the market-based discount rate applied and the
expected time to payment.
Dividend per share
Proposed dividend
Number of shares end of period
Earnings per share
Profit or loss for the period
Average number of shares
Earnings per share of continuing business
Diluted earnings from continuing business
after tax
Diluted average number of shares
Gross claims ratio
Gross claims x 100
Insurance revenue
Gross expense ratio without adjustment
Gross insurance operating costs x 100
Insurance revenue
Insurance revenue
Calculated as insurance revenue adjusted for
change in gross premium provisions.
Market price/net asset value
Share price
Net asset value per share
Net asset value per share
Equity end of period
Number of outstanding shares end of period
Net reinsurance ratio
Net expense from reinsurance contracts x 100
Insurance revenue
Norwegian general insurance
Comprises Tryg Forsikring A/S, Norwegian
branch.
Other insurance
Comprises credit & surety insurance (Tryg
Trade) in European countries besides Denmark,
Norway and Sweden and amounts relating to
one-off items and reclassification relating to
business combinations, from RSA Scandinavia
transaction.
Own funds
Equity plus share of qualifying solvency debt and
profit margin (solvency purpose), less intangible
assets, tax asset and proposed dividend.
Price/Earnings
Share price
Earnings per share
Return on equity after tax (%)
Profit or loss for the period after tax
Weighted average equity
Run-off gains/losses
The difference between the claims provisions at
the beginning of the financial year (adjusted for
foreign currency translation adjustments and
discounting effects) and the sum of the claims
paid during the financial year and the part of the
claims provisions at the end of the financial year
pertaining to injuries and damage occurring in
earlier financial years.
Contents
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Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 219
The financial highlights and key ratios of Tryg have been prepared in accordance with the executive order issued by the Danish
Financial Supervisory Authority on the financial reports for insurance companies and multi-employer occupational pension funds,
and also comply with ‘Recommendations & Ratios’ issued by the CFA Society Denmark.
Glossary, key ratios and alternative
performance measures
-
Solvency II
Solvency requirements for insurance companies
issued by the EU Commission is the regulatory
framework that the Group operates under.
Solvency ratio
Ratio between own funds and capital
requirement.
Swedish general insurance
Comprises Tryg Forsikring A/S, Swedish branch
Unwinding
Unwinding of discounting takes place with the
passage of time as the expected time to
payment is reduced. The closer the time of
payment, the smaller the discount. This gradual
increase of the provision is not recognised
under claims, but under investment result in the
income statement.
Large claims, net of reinsurance
Large claims, net of reinsurance, as calculated
by the Tryg Group, represents
Large claims, net of reinsurance is defined as
single claims or claims events gross above 10m
in local currencies adjusted for reinsurance.
Large claims, net of reinsurance
Insurance revenue
Weather claims, net of reinsurance
Weather claims, net of reinsurance, as
calculated by the Tryg Group, represents:
Weather claims, net of reinsurance, is defined as
claims related to storm, cloudbursts, natural
perils and winter, adjusted for reinsurance.
Weather claims, net of reinsurance
Insurance revenue
Run-off, net of reinsurance
Run-off, net of reinsurance, as calculated by the
Tryg Group, represents
Run-off, net of reinsurance
Insurance revenue
Return On Own Funds (ROOF)
Profit for the period after tax x 100
(Own Funds Primo + Own Funds Ultimo)/2
Return On Tangible Equity (ROTE)
Profit for the period after tax x 100
(Tangible Equity primo + Tangible Equity
Ultimo)/2
Tangible Equity
Tangible Equity is defined as weighted average
equity excluding intangible assets and deferred
tax related to intangible assets
Contents
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Financial results
Governance
Sustainability statement
Financial statements
Annual Report 2024 | Tryg A/S | 220
Glossary, key ratios and alternative
performance measures
-
Certain statements in this financial report are
based on the beliefs of our management as well
as assumptions made by and information
currently available to management. Statements
regarding Tryg’s future operating results,
financial position, cash flows, business strategy,
plans and future objectives other than
statements of historical fact can generally be
identified by the use of words such as ‘targets’,
‘believes’, ‘expects’, ‘aims’, ‘intends’, ‘plans’,
‘seeks’, ‘will’, ‘may’, ‘anticipates’, ‘would’, ‘could’,
‘continues’ or similar expressions.
A number of different factors may cause the
actual performance to deviate significantly from
the forward-looking statements in this financial
report, including but not limited to general
economic developments, changes in the
competitive environment, developments in the
financial markets, extraordinary events such as
natural disasters or terrorist attacks, changes in
legislation or case law and reinsurance.
Should one or more of these risks or
uncertainties materialise, or should any
underlying assumptions prove to be
incorrect, Tryg’s actual financial condition or
results of operations could materially differ
from that described herein as anticipated,
believed, estimated or expected. Tryg is not
under any duty to update any of the forward-
looking statements or to conform such
statements to actual results, except as may
be required by law.
Read more in the Annual report 2024 in the
chapter of Capital and risk management on
page 40-44, and in note 1 on page 145 for a
description of some of the factors which may
affect the Group’s performance or the
insurance industry.
Contents
Introduction
Strategy
Financial results
Governance
Sustainability statement
Financial statements
Disclaimer
Annual Report 2024 | Tryg A/S | 221