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Drop in investment return pulls down Tryg Q1 profit YOY

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Drop in investment return pulls down Tryg Q1 profit YOY

on April 12 reportedfirst-quarter profit of 445 million Danish kroner, compared to 525 millionkroner in the year-ago period.

EPSwas 1.58 kroner, compared to 1.82 kroner a year earlier.

Thecompany's first-quarter result was affected by a lower level of large claimsand weather claims and by the internal efficiency program delivering 45 millionkroner. However, the investment return after insurance technical interestdropped to 17 million kroner from 261 million kroner, influenced by lower ROEdue to volatile markets.

In2016, weather claims, net of reinsurance, and large claims are expected to be500 million kroner and 550 million kroner, respectively, which is unchangedrelative to 2015.

Grosspremium income amounted to 4.31 billion kroner, compared to 4.45 billion kronera year earlier, while gross claims were 2.86 billion kroner, compared to 3.20billion kroner in the first quarter of 2015. General insurance gross premiumswritten declined on a yearly basis to 6.46 billion kroner from 6.66 billionkroner.

Trygnoted that the premium growth for 2016 will probably be at the lower end of thepreviously announced premium income growth expectation of between zero percentand 2%.

Thetechnical result rose year over year to 562 million kroner from 429 millionkroner.

For the quarter, after-tax ROE reached 18.2%, compared to arestated 19.1% a year earlier. Tryg targets an after-tax ROE of 21% or higherin 2017.

Thegroup's combined ratio stood at 87.1% for the first quarter, compared to 90.7%a year ago. The company aims for a combined ratio of 87% or less in 2017.
At the end of the first quarter, the Solvency II ratio was 212% based on thepartial internal model, or 199% when adjusted for the of 's child insurance portfolio.

As of April 11, US$1was equivalent to 6.50 Danish kroner.