As expected the increasing governmental oversight ‘always’ starts in Denmark (viewed from a Nordic viewpoint). ‘Luckily’ Sampo bought the rest of Topdanmark last year, as today there might be (political) hurdles standing in the way of a full takeover.
The effectiveness and pricing power of the insurance Nordic ‘giants’ might partly turn out to be their downfall, as smaller players start complaining and constantly increasing insurance premiums might not be a sure thing going forward.
Tryg reported a rather good result today Tryg A/S – Interim report Q1 2025 | Placera.se but the most intresting part for me was the language used:
“We have had a good start in executing our 2027 strategy, and I am pleased that we are delivering a solid set of results for the first quarter of the year. We have helped customers with more than half a million claims and paid out more than DKK 6.6 billion in disbursements, while managing to improve customer satisfaction. Especially, the implementation of an improved welcome flow for new customers and even faster claims handling is something that we see customers responding positively to…”
Financial highlights Q1 2025
Insurance revenue growth of 3.7% in local currencies (4.8%)
Insurance service result of DKK 1,540m (DKK 1,280m)
Combined ratio of 84.2% (86.6%)
Expense ratio of 13.3% (13.5%)
Investment result of DKK 320m (DKK 112m)
Profit before tax of DKK 1,491m (DKK 1,007m)
Ordinary dividend of DKK 2.05 (DKK 1.95) per share and solvency ratio of 195%
Customer highlights Q1 2025
Customer satisfaction score of 82 (81)
In essence, this tells us that insurance companies are as of now on the defensive in their language, indicating that ‘aggressive’ price are less likely to take place because of increasing political and governmental focus.
Essentally insurance companies are going to face the faith of banks in terms of general societal criticism…