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April 7 Danish insurance company Tryg's
core business grew more slowly than expected in the
first quarter, sending its shares down 3.4 percent.
* The technical result rose to 568 million Danish crowns
($81.29 million) from 562 million in the same quarter last year,
missing the 612 million expected by analysts in a Reuters poll.
* Pretax profit rose to 779 million from 563 million,
beating the 706 million expected by the analysts, but this was
mainly driven by a strong investment return of 223 million.
* "Investors are not willing to reward Tryg for the better
than expected result as it was mainly driven by the strong
investment return, something you can't expect to continue going
forward," Sydbank analyst Mikkel Emil Jensen said.
* Tryg has focused on developing insurances for start-up
companies in the growing sharing economy -- it has insured six
sharing services and is negotiating with a number of others,
chief executive Morten Hubbe told Reuters.
* "We believe that the sharing economy market is going to
develop fast," Hubbe said in a telephone interview.
* Tryg announced the acquisition of Norway's Obos Forsikring
in February, and has also said it will take over Denmark's FDM's
insurance portfolio from LB Forsikring from the beginning of
* "We are keeping an eye open for new acquisitions. The most
important thing is that it complements our business. To be
interesting it needs to strengthen our business, product
development and solutions for our customers," Hubbe said.
* Tryg said it would start paying out a quarterly dividend
* Q1 combined ratio was 87.3 (Reuters poll 86.5)
* Q1 dividend was 1.60 crowns per share and was underpinned
by a strong solvency ratio of 202 percent
* Q1 gross premium income 4.46 billion crowns (Reuters poll
4.45 billion crowns)
* The company maintains its financial targets of return on
equity above or equal to 21 percent, an expense ratio less than
or equal to 14 percent and a combined ratio of less than or
equal to 87.
Source text for Eikon:
Further company coverage:
($1 = 6.9876 Danish crowns)
(Reporting by Julie Astrid Thomsen and Gdynia Newsroom, editing
by Teis Jensen and Terje Solsvik)