Scandinavian insurance company Tryg has reported that its Q3 2023 insurance service result of DKK 1.51 billion was adversely impacted by over DKK 600 million of weather-related claims, resulting in a decline from the DKK 1.79 billion reported for the same quarter in 2022.
Tryg highlights a active summer in terms of adverse weather, including storm Hans in Scandinavia, together with numerous cloudbursts, heavy rain in parts of the region, and extreme weather events in Europe impacting Scandinavian travellers.
At DK 611 million, net weather-related claims amount to the highest level of net weather claims in a single quarter for the last 15 years for the insurer, highlighting just how extraordinary the period was in terms of weather.
The impact of storm Hans, particularly in Norway, accounts for around half of the total losses reported.
The Q3 2023 underlying claims ratio improved 0.5% year-on-year, large claims of 3.1% fell from 4.1% a year earlier, although weather claims increased from 0.9% to 6.5% in Q3 2023.
The expense ratio is relatively flat at 13.3%. All in all, the company’s combined ratio deteriorated slightly to 83.8% compared with 81.3% a year earlier.
Premium growth of 4.4% came down slightly from the 4.8% seen a year earlier.
The investment result improved significantly, from a loss of DKK 203 million to a gain of DKK 265 million.
Overall, Tryg has reported profit before of tax of DKK 1.225 billion for Q3 2023, compared with DKK 964 million in Q3 2022.
Johan Kirstein Brammer, Group CEO, commented, “Tryg’s core business saw a premium growth of 4.4%. The top-line development was driven primarily by the Private and Commercial businesses. We perform well and have a solid core insurance business, in spite of the external geopolitical and macroeconomic challenges and a quarter of extraordinary weather events.”
