TryghedsGruppen

The family is sitting outside in the sunshine.

Combining business with philanthropy.

Photograph: TryghedsGruppen FB Page

Text: Mariano Anthony Davies

TryghedsGruppen is a member-based company with more than 1.5 million members dedicated to creating value and contributing to peace of mind in Danish society. TryghedsGruppen is the largest shareholder in insurance company Tryg and finances TrygFonden’s philanthropic activities.

It traces its roots back to the establishment of Denmark's first insurance company after the Great Fire of Copenhagen in 1728 (now Tryg). The Group’s membership structure stems from the conversion of Tryg Forsikring from a mutual company to a limited company in 1991, when TryghedsGruppen became the owner of Tryg and gained the Danish insurance customers as members.

The ownership of Tryg is a fundamental part of TryghedsGruppen’s history and DNA. Moreover, TryghedsGruppen’s economy is widely based on profiting from insurance activities and paying dividends to Tryg.

The current ownership model, with Tryg as a listed company and TryghedsGruppen as its main shareholder, is a strong model. It means that TryghedsGruppen’s ownership is exercised in compliance with an arm’s-length principle, respecting the exclusive right of Tryg’s supervisory and Executive Boards to manage Tryg. Also, the stock exchange listing ensures an array of advantages that include reporting requirements, focus on the company from the market and easier access to funding. Moreover, the controlling influence enables TryghedsGruppen to exercise stewardship activities, working to promote the alignment of Tryg’s long-term strategies with TryghedsGruppen’s principles and values.

Membership

All Danish customers of the insurance company Tryg are automatically members of TryghedsGruppen, which is Tryg's largest shareholder and is responsible for funding TrygFonden.

Every year, TryghedsGruppen supports projects promoting safety, health, and well-being in Danish society. In 2024, TryghedsGruppen spent approximately DKK 700 million on activities both through direct donations and partnerships with other philanthropic organisations and NGOs.

TryghedsGruppen has 1.5 million members, and all its members have the right to vote for the Board of Representatives, which is its governing body. The Board is composed of 70 members who decide on matters such as overall strategy, the financial framework for TrygFonden and major investments. All members are also eligible to receive a bonus if the Board of Representatives decides that TryghedsGruppen’s financial result supports paying out a bonus. Since 2016, TryghedsGruppen has paid out DKK 7 billion in bonuses to its members.

Mother hugging her children outside a train station.

Investments

In addition to being the largest shareholder in Tryg, where TryghedsGruppen currently (December 2024) holds approximately 48% of the shares, it has investments in several investment funds and larger direct investments in the companies Falck and SATS. TryghedsGruppen’s ownership of Tryg makes up 95% of the market value of TryghedsGruppen’s assets.

By supporting Tryg in the acquisition of RSA Scandinavia in 2021, TryghedsGruppen’s investment activities have been restructured with a focus on liquidity and solvency requirements. The company has also been preparing to increase its ownership share of Tryg.

With the restructuring of its investment activities, TryghedsGruppen aims to retain a liquid portfolio of a minimum of DKK 1-2 billion. The portfolio is invested in liquid listed assets, mainly bonds with a relatively short duration.

TryghedsGruppen also invests in non-listed funds. These comprise classical private equity funds as well as credit and property funds. The portfolio is gradually being wound down because of TryghedsGruppen’s decision to support Tryg in the acquisition of RSA Scandinavia.

Historically, TryghedsGruppen has focused on larger individual investments. However, this portfolio has gradually been reduced and now only comprises an ownership stake in Danish company Falck and Scandinavian fitness chain SATS. As a future investment strategy, TryghedsGruppen will not pursue new investments in this category.

TryghedsGruppen’s ethical guidelines

TryghedsGruppen’s practice is guided by the commonly held code of ethics drawn up by the UNPRI guidelines. Furthermore, its Board has decided not to invest in alcohol and tobacco firms or companies whose main activity is the extraction of fossil fuels.

They apply these ethical guidelines not only to their activities but also to the activities of their external asset managers, who commit to the same ethical principles when managing their assets. For that reason, they monitor the activities of these managers to ensure that they are in alignment with TryghedsGruppen’s ethos. Their asset managers may not invest in the following:

• Companies with activities in countries not enforcing Danish or UN boycotts.

• Companies whose activities violate Danish law.

• Companies whose activities violate UN conventions.

• Companies supporting political or religious movements.

• Companies manufacturing alcohol, tobacco and other harmful products.

• Companies manufacturing arms.

• Companies that might cause TryghedsGruppen reputation damage.

• Companies whose main activity is the extraction of fossil fuels.

TryghedGruppen’s more than 500,000 members in the Capital Region (Copenhagen and surroundings) were invited this year to regional meetings. There, they had the opportunity to meet the candidates standing for election to its Board of Representatives in the Capital Region for the next five years.