Denmark’s largest insurance company Tryg reported record profits of 7.9 billion Danish kroner in 2025, marking a 12 percent increase from the previous year. However, the strong financial performance came at a cost, as significant price increases drove some customers away and caused customer satisfaction to drop to its lowest level since 2017.
Record Profits Driven by Price Increases
The publicly traded insurance giant achieved its best financial results ever in 2025, boosted by fewer major claims and growth in its Swedish and Norwegian operations. A key factor behind the success was price adjustments for a significant portion of its customer base.
Tryg’s combined ratio, a key insurance metric that measures how much a company spends on claims and administration for every 100 kroner collected in premiums, improved to 82.1 in the private customer segment. This means the company became even more profitable on customer insurance policies compared to previous years.
According to CEO Johan Kirstein Brammer, the price increases were necessary due to what he described as severe inflation affecting the cost of repairing customer damages. The company had to adjust its pricing to cover rising expenses across the board.
Customer Loyalty Takes a Hit
Despite the financial success, Tryg experienced a decline in customer retention rates. The company’s renewal rate among private customers in Denmark dropped slightly as some customers chose to leave following the price adjustments. Many customers received notices about premium increases on everything from car insurance to home and pet coverage, with some policies increasing by over 100 percent.
External customer satisfaction measurements painted a concerning picture for the insurance giant. In Loyalty Group’s analysis of 4,475 Danish private customers, Tryg was the only company to shift from positive to negative ratings, with its NPS score dropping 12 points between 2024 and 2025.
Price Concerns Among Departing Customers
The majority of customers who left Tryg cited high prices as their primary reason for switching insurance providers. Meanwhile, fewer existing customers reported feeling they received good value for their money.
Interestingly, another independent survey by Epsi Rating also showed Tryg at the bottom of customer satisfaction rankings, with scores falling nearly five points compared to the previous year.
Looking Ahead to 2026
In response to the customer satisfaction challenges, Tryg’s leadership announced that nine out of ten customers in Denmark will not receive price increase notices in 2026. Brammer expressed optimism that this would help repair relationships with customers and shift conversations away from pricing concerns.
The CEO emphasized that now that inflation has eased, the company can focus on creating better customer experiences through new products and concepts. He maintained that Tryg has competitive products at competitive prices, noting that the company’s internal customer satisfaction measurements showed improvement, reaching their highest level ever at 82 out of 100.
Industry Wide Challenges
A report from Denmark’s Competition and Consumer Authority highlighted concerns about price walking in the insurance industry, where premiums increase gradually year after year. The practice particularly affects loyal customers, older individuals, and vulnerable groups, though the report did not name specific companies engaging in this behavior.
Context Matters for Customer Perception
Industry experts point out that insurance customers face a unique challenge. Unlike other services, they don’t regularly use insurance products unless they have claims. This makes it harder for companies to justify price increases, as customers don’t experience ongoing value from their policies.
At the same time, growing economic concerns among Danish consumers have made people more critical about their spending. When insurance companies raise prices while competitors advertise stable rates, customer loyalty naturally suffers.
Financial Performance Details
Beyond the operational results, Tryg rewarded its investors with a dividend of 2.05 kroner per share in the fourth quarter of 2025. The total annual dividend reached 8.20 kroner per share, representing a five percent increase compared to the previous year.
The company operates across Denmark, Norway, and Sweden, serving more than six million customers in total. Despite the customer satisfaction challenges in Denmark, Tryg maintained that retention rates remain generally high and show signs of improvement, particularly in the private customer segment.
Nevertheless, the company acknowledged that improving retention rates in its commercial business segment remains a work in progress. Management expressed confidence that positive trends would eventually extend to this area as well.
Sources and References
The Danish Dream: Insurance in Denmark for Various Reasons
The Danish Dream: Best Home Insurance in Denmark for Foreigners
TV2: Forsikringsgigant tjener mere end nogensinde før, men det har sin pris
