Tryg, a Nordic insurance company with operations in Denmark, Sweden and Norway, has commented on a ruling by the Danish Supreme Court concerning workers’ compensation in Denmark, which carries implications for the wider insurance sector as well as for the Danish State and municipalities.
Tryg, together with the Danish Insurance Association, has stated its view that responsibility for the resulting industry costs should rest with the Danish State, including indemnification of insurers.
The ruling establishes that compensation is to be awarded where there is a loss of earning capacity of 5% or more, compared with the previous threshold of around 15%.
Tryg notes that this represents a change from more than four decades of established administrative practice in Denmark, previously applied by public authorities in the handling of workers’ compensation claims. The Danish Insurance Association has similarly indicated that the judgement has broader consequences for the existing framework.
In the absence of any indemnity arrangement being in place, Tryg has indicated that it will record a one-off pre-tax charge of DKK 1.2 billion relating to additional compensation payments linked to historical workers’ compensation cases. This corresponds to approximately DKK 0.9 billion after tax. Tryg expects the charge to be recognised in the second quarter of 2026 within the insurance service result as a run-off loss.
Tryg also states that, when combined with capital management measures, the net impact on its solvency position is expected to be around four percentage points.
On this basis, Tryg reports that its solvency remains at a solid level and that its broader outlook is unchanged. The company confirms that ordinary dividend payments are not affected, its share buyback programme will continue as planned, and its financial targets for 2027 remain unchanged.
