UPDATE 1-Cost cuts, mild weather cushion Tryg profit decline

Written By Unknown on Kamis, 10 Oktober 2013 | 16.47

Thu Oct 10, 2013 2:11am EDT

* Tryg Q3 pretax profit falls 7 pct, less than forecast

* Keeps year view unchanged (Adds details, background, quotes)

COPENHAGEN Oct 10 (Reuters) - Third quarter pretax profit at the Nordic region's second-biggest insurer Tryg fell less than forecast, helped by cost cuts and reinsurance against a big insolvency claim.

The reinsurance reduced the cost of a 700 million Danish crowns ($126.84 million) blow from an entrepreneurial client, the biggest damage claim in the insurer's history, to 30 million, Tryg said in a statement.

Pretax profit fell to 907 million Danish crowns ($164.35 million) in July-September compared with 976 million a year earlier and exceeding a forecast for 850 million in a Reuters poll of analysts.

An efficiency drive and cost cutting programme that included job reductions improved the result by 110 million crowns, Tryg said.

The combined ratio - the percentage of revenue spent on claims and costs - was 84.8 percent, against an average forecast of 85.9 percent. A figure below 100 shows an underwriter is profitable.

Profit from Tryg's insurance activities, the technical result, rose 23 percent to 766 million crowns in the quarter, exceeding an average 724 million crowns forecast in the poll.

The company stood by its full-year 2013 forecast for a combined ratio - the percentage of revenue spent on claims and costs - of 90 percent or lower

($1 = 5.5188 Danish crowns) (Reporting by Mette Fraende and Teis Jensen; Editing by David Cowell)

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