Scandinavian insurance giant Tryg has unveiled a series of strategic and structural modifications, including the consolidation of two key business lines and a significant workforce reduction.
These changes are aimed at bolstering the company’s competitiveness and resilience in both the short and long term.
Tryg has recently experienced substantial growth, marked by a transformation in size and geographical reach. This transformation has been fueled by two major acquisitions and a consistently positive top-line performance. As a result, Tryg has emerged as the largest non-life insurer in Scandinavia, positioning itself to capitalise on this newfound strength.
While Tryg’s core business remains robust, the company has faced shifting macroeconomic conditions across its Scandinavian markets, marked by high inflation rates and significant currency devaluation. To navigate these challenges effectively and leverage its increased size and scalability, Tryg’s Executive Board has introduced strategic and structural adjustments.
Group CEO Johan Kirstein Brammer emphasised the importance of these changes, stating, “The changes underpin our commitment to deliver on our 2024 financial targets while we gear up for a new strategy period. By making these changes, we are future-proofing the enlarged Group and adapting the organisation to the current macroeconomic environment.”
One of the notable changes involves the merger of Tryg’s Commercial and Corporate lines in Denmark and Norway, set to take effect from October 1, 2023. Leading these newly integrated Commercial units is SVP Hans Arnum, who assumes the role of Head of Commercial Lines Denmark, while SVP Michael Kolbæk takes on the position of Head of Commercial Lines Norway. Despite the merger, Commercial and Corporate Lines will continue to function as distinct entities from a reporting perspective.
Additionally, Tryg plans to align the organisational structure of its Swedish business, Trygg-Hansa, with that of the broader Tryg Group by January 1, 2024. VD Mats Dahlquist will transition leadership responsibilities to the ongoing management team, reporting directly to Tryg Group’s Executive Board.
In light of its recent expansions and the challenging economic environment, Tryg acknowledges the need to optimise its size, scale, and operational efficiency. Kirstein Brammer commented, “We must ensure that our organisational setup, our cost level and our ways of working are supporting our commitment to deliver on our 2024 targets, while preparing Tryg for the future.
“A future where we take advantage of our scale and structure while we navigate through macroeconomic uncertainty. As a consequence of the announced changes, particularly driven by the merger of Commercial and Corporate Lines, we will reduce the number of employees across the Group in the range of 250-270.”
While RSA-related synergies primarily targeted Norwegian and Swedish organisations, the majority of the announced redundancies have affected the Danish operations. The remaining workforce reductions will occur within the Danish and Norwegian organisations following the merger of the Commercial and Corporate segments.
Despite these structural changes, Tryg reaffirms its financial guidance for 2024, maintaining its insurance service result target and combined ratio target, demonstrating its commitment to long-term stability and growth.
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