Governance | Risk management

Risk management is a key element for an insurance business and an integral part of Tryg’s business model.

Risk management in Tryg is organised on the basis of three lines of defence:

  • The first line of defence is the business managers, who manage and control all significant risks associated with their own activities. 
  • The risk management function is a part of the second line of defence and ensures a consistent risk management approach across business areas. The risk management function is charged with maintaining the general overview of the company’s most important risks and reporting on an ongoing basis on the development to the Supervisory Board and the Management.
  • The third line of defence is the internal audit, the most important task of which is to carry out independent assessments of the control environment for the Supervisory Board.

The capital management of Tryg is supported by Trygs partial internal model which operates with a safety level of 99.5%. This means that Tryg is able to honour claims in 199 out of 200 years. The purpose of capital management in Tryg is to support the key business objectives:

  • A solid capital base, supporting both the statutory requirements and the ambition of keeping as a minumum the ‘A2’ rating from Moody’s. 
  • A steadily rising nominal dividend per share with a distribution of 60-90% of the net profit for the year after tax.
  • Return on the average equity of 20% after tax.

Read more about Tryg’s risk management in the annual rapport on pages 25-26 and note 1 on page 50


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