Tryg, a Nordic insurance company operating in Denmark, Sweden and Norway, has commented on the Danish Supreme Court’s ruling on workers’ compensation in Denmark, which has implications for the wider insurance industry as well as Danish state and municipal authorities.
Tryg, together with the Danish Insurance Association, said the Danish government should bear responsibility for the resulting industry costs, including compensation to insurers.
The ruling provides that compensation will be awarded if the loss of earning capacity reaches or exceeds 5%, compared with the previous threshold of around 15%.
Tryg noted that this represents a change from more than four decades of established administrative practice in Denmark, which was previously adopted by public authorities when dealing with workers’ compensation claims. The Danish Insurance Association similarly said the judgment had wider implications for the existing framework.
In the absence of any compensation arrangements, Tryg said it would record a one-time pre-tax charge of DKK 1.2 billion for additional compensation related to historical workers’ compensation cases. This amounts to approximately DKK 900 million after tax. Tryg expects this charge to be recognized as a runoff loss in insurance services results in the second quarter of 2026.
Tryg also said that combined with capital management measures, the net impact on its solvency position is expected to be around four percentage points.
On this basis, Tryg reported that its solvency remains at a solid level and its broader outlook remains unchanged. The company confirmed that ordinary dividend payments will not be affected, its share buyback program will continue as planned and its financial targets for 2027 remain unchanged.
