Tryg reported a truly strong third quarter today.
Insurance revenue rose to DKK 10.59 billion, and the Insurance Service Result rose to DKK 2.45 billion.
The combined ratio of 76.8%, down from 78.6% a year ago, is particularly strong.
This shows that Tryg is operating very profitably in its core insurance business.
Its capital base also remains strong:
The solvency ratio stands at 203%.
Pre-tax profit came in at DKK 2.12 billion, well above market expectations, as did net profit at DKK 1.63 billion.
This is also positive news for dividend investors:
The quarterly dividend was raised to 2.15 DKK per share, about 5% more than in the previous year.
The only weak point was the investment result, which, at 42 million DKK, was significantly below the prior-year figure. However, the strong insurance business easily offset this.
All in all, I consider this a very strong quarter: a better combined ratio, higher profits, strong solvency, and a rising dividend.
Operationally, Tryg thus quite clearly demonstrates its quality.