A Danish Supreme Court ruling on workers' compensation has forced several Nordic insurers to book one-off provisions in Q2 2026. Tryg A/S, which reports in Danish kroner, took the largest single charge at DKK1.2 billion pre-tax. On an adjusted basis, its Q2 insurance service result was DKK2,390 million, up approximately 4% year on year.
The ruling, handed down on April 28, 2026, lowered the compensation threshold from a loss of earning capacity of 15% to 5%. Tryg said the decision overturns more than four decades of established administrative practice in Denmark. Tryg and the Danish Insurance Association have jointly called on the Danish State to indemnify the industry for the resulting costs.
The one-off charge reduced Tryg's reported Q2 insurance service result to DKK1,190 million from DKK2,307 million a year earlier. On a reported basis, the combined ratio stood at 88.8% against 77.2% in Q2 2025. Adjusted for the provision, the ratio was 77.4%.
Tryg is Scandinavia's largest listed P&C insurer by premium volume. Gjensidige, another Nordic insurer affected by the ruling, recorded a DKK290 million net impact. Alm. Brand booked a DKK0.7 billion charge and issued a profit warning for 2026.
Tryg's adjusted combined ratio of 77.4% for Q2 compares with a Lloyd's market combined ratio of 87.6% for full-year 2025. The underlying claims ratio improved by 50 basis points in Q2 2026, up from 40 basis points in Q1 2026. Norway was among the markets delivering above-average claims performance in the period.
Insurance revenue grew 3.3% in local currencies against 4.0% a year earlier, and the expense ratio fell to 13.3% from 13.5%. The Q2 investment result was DKK262 million, up from DKK110 million in Q2 2025. Profit after tax was DKK874 million on a reported basis, or DKK1,762 million adjusted.
The solvency ratio at the end of Q2 stood at 196%, up from 192% at Q1 2026. Tryg declared an ordinary Q2 dividend of DKK2.15 per share, against DKK2.05 a year earlier, an increase of approximately 5%. The company said the solvency level supports continued shareholder remuneration.
Over the first half of 2026, the insurance service result was DKK2,845 million (DKK3,846 million), or DKK4,045 million adjusted. Revenue grew 3.4% in local currencies against 3.9% a year earlier, with an H1 combined ratio of 86.4% (80.7%), or 80.7% adjusted. The H1 expense ratio was 13.3% against 13.4%.
The H1 investment result was DKK264 million against DKK430 million in H1 2025. Pre-tax profit for H1 was DKK2,353 million (DKK3,526 million), or DKK3,553 million adjusted. The H1 ordinary dividend was DKK4.30 per share, up from DKK4.10 in H1 2025.
Tryg's group chief executive, Johan Kirstein Brammer, said the insurer handled close to one million claims across Scandinavia in H1 2026. Approximately 5,000 of those claims related to Storm Dave. Brammer said sales and retention improved across all of the group's operating markets.
Customer satisfaction reached 83 in Q2 2026 against a 2024 baseline of 81, the third consecutive quarterly increase. Tryg added partnerships with SAS EuroBonus, Lederne, and Eksjöhus during the period as part of its 2027 strategy. The company confirmed its financial targets for 2027 remain unchanged.
Any State indemnification of the industry could partially offset Tryg's DKK1.2 billion charge in future periods. No such arrangement is currently confirmed.
