Investing.com -- Tryg A/S (CPH:TRYG), a leading Nordic insurance company, reported fourth-quarter 2024 results that fell short of analyst expectations, sending its shares down 5% in early trading.
The insurer's insurance revenue grew by 3.6% in local currencies during the fourth quarter, missing consensus estimates by 0.2%. For the full year 2024, insurance revenue increased by 4.1%, slightly below expectations. Tryg's combined ratio, a key measure of profitability in the insurance industry, came in at 82.5% for Q4, 0.5 percentage points worse than anticipated.
The company's net profit for the quarter was 9.7% lower than expected, primarily due to weaker investment returns which missed consensus by 27.4%. Weather-related claims were 16.7% above estimates, further impacting results.
"While we faced some headwinds in the fourth quarter, our overall performance for 2024 demonstrates the resilience of our business model," said Tryg CEO, commenting on the results.
Despite the earnings miss, Tryg maintained its annual dividend at DKK 7.8 per share, in line with analyst expectations. The company's Solvency II ratio, a measure of financial strength, stood at 196%, slightly above consensus estimates.
For the full year 2024, Tryg reported a combined ratio of 81%, marginally worse than expected. The insurer's insurance service result for the year was 0.6% below consensus, while investment returns missed expectations by 8.4%.
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