Scandinavian insurer Tryg has seen its first quarter performance hit by the global coronavirus pandemic, estimating a negative impact of DKK 40 million ($6 million) driven by travel insurance claims.
Travel insurance losses totalled $17 million ($37 million before reinsurance) partly offset by lower frequencies in other lines of business (including, but not only, motor insurance) of $11 million.
In an announcement published 27 March, it was stated that the investment income was negative by approximately $160 million.
The realised investment income for Q1 was minus $142 million driven by what the company has called “extremely negative financial markets” characterized by losses on most asset classes.
Premium growth for the quarter stands at 8.9%, while a technical result of $98 million was positively impacted by developments in the core business and lower large claims. Profit before tax was minus $54 million.
“I am very pleased that Tryg has confirmed its robust business model during this period, delivering a solid technical result somewhat higher than in Q1 2019,” explained Group CEO Morten Hübbe.
“Like many other companies, Tryg has been impacted by the COVID-19 outbreak, especially on the investment result, but also in our travel insurance department, which in Q1 has served approximately 30,000 customers in Denmark, Norway and Sweden with COVID-19 related claims (travel cancellations and repatriation), in addition to the normal Q1 travel claims.
“Travel insurance claims related to COVID-19 cost DKK 255m gross (before reinsurance) and DKK 115m net (after reinsurance).
“At the same time, we notice a positive development in other lines of business during the COVID-19 outbreak as a result of lower economic activity and the lock-down. In March, we have experienced 15% fewer claims in motor and contents insurance (fewer burglaries), 20% fewer claims in accident insurance and 35% fewer claims in health insurance (after the healthcare system locked down) in Denmark.
“Overall, this does not change the fact that COVID-19 affects Tryg negatively in Q1 as the high travel insurance claims has been only partly mitigated by lower claims frequencies reporting an overall net negative impact of DKK -40m. Additionally, Tryg is reporting a negative investment result of almost DKK -1bn.”
