Expense Efficiency Underpins Our Narrow Moat Rating for Tryg

In recent years, Tryg has moved to sell more insurance to individual customers and small and medium-size businesses. We expect that trend to continue in the coming years. The strategy largely started in 2017 with the acquisition of the Federation of Danish Motorists' insurance portfolio. At the time, that portfolio comprised over 20,000 members and gave Tryg access to FDM's broader 200,000 members. This move was augmented by the purchase of Obos Forsikring in February 2017. Obos is a cooperative building association in Norway that, at the time, insured 10,000 clients. A year later, on Dec. 4, 2018, Tryg acquired Alka Forsikring, a company that insured 6% of Danish private individuals. With the acquisition of Troll Forsikring in the second quarter of 2018, Tryg’s focus on private customers continued. Troll Forsikring, a Norwegian company, at that time had 12,000 private customers in Norway.