Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Tryg AS's Probability of Financial Distress (%) is 0.03%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Tryg AS (CHIX:TRYGc) Probability of Financial Distress (%) Explanation
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk in the upcoming year. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Tryg AS Probability of Financial Distress (%) Related Terms
CHIX:TRYGC vs BRK.A, AIG, HIG: Probability of Financial Distress (%) Comparison
For the Insurance - Diversified subindustry, Tryg AS's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tryg AS Probability of Financial Distress (%) vs Insurance Industry
For the Insurance industry and Financial Services sector, Tryg AS's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Tryg AS's Probability of Financial Distress (%) falls into.
Tryg AS Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
LPFD
=
-20.12 * NIMTAAVG
+
1.60 * TLMTA
-
7.88 * EXRETAVG
+
1.55 * SIGMA
-
0.005 * RSIZE
-
2.27 * CASHMTA
+
0.070 * MB
-
0.09 * PRICE
-
8.87
=
-8.01
The Probability of Financial Distress (%) (PFD) was then obtianed by:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
What does a Probability of Financial Distress (%) of 0.03% mean?
Tryg AS (CHIX:TRYGC) has a Probability of Financial Distress (%) of 0.03% as of Jun. 26, 2026.
Is Tryg AS's Probability of Financial Distress (%) too high?
Tryg AS's current Probability of Financial Distress (%) is 0.03%. Overall, Tryg AS has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tryg AS's Probability of Financial Distress (%) compare to BRK.A and AIG?
Tryg AS's Probability of Financial Distress (%) of 0.03% can be compared against companies in the Insurance industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Probability of Financial Distress (%) for an Insurance company?
A good Probability of Financial Distress (%) depends on the Insurance industry context. However, Probability of Financial Distress (%) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Probability of Financial Distress (%) mean?
A high Probability of Financial Distress (%) can signal that a stock is expensive relative to its fundamentals. Tryg AS's current Probability of Financial Distress (%) is 0.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tryg AS stock overvalued right now?
Based on GuruFocus' analysis, Tryg AS (CHIX:TRYGC) is currently considered Fairly Valued. The stock's GF Value™ is kr161.12, compared to a current price of kr150.40 — trading 6.7% below its estimated fair value. The current Probability of Financial Distress (%) is 0.03%. Tryg AS's overall GF Score™ is 73/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Probability of Financial Distress (%) calculated?
Probability of Financial Distress (%) is calculated from a company's financial statements. For Tryg AS (CHIX:TRYGC), the current Probability of Financial Distress (%) is 0.03% as of Jun. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tryg AS (CHIX:TRYGC) Overvalued in 2026?
Based on GuruFocus' analysis, Tryg AS stock appears to be undervalued.
The current stock price of kr150.40 is trading 6.7% below its estimated GF Value™ of kr161.12.
GuruFocus considers Tryg AS to be Fairly Valued.
Key valuation signals for CHIX:TRYGC:
Probability of Financial Distress (%): 0.03%
GF Value™: kr161.12 vs. price of kr150.40 (6.7% below fair value)
No single metric tells the full story. See the CHIX:TRYGC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
For a long period of time Tryg was focussed purely on the Danish market, but over the last two decades the company has built its presence in Scandinavia more broadly. So, while this nonlife insurer derives close to 50% of its revenue from Denmark, it derives another 30% from Sweden and close to 20% from Norway. Comprehensive motor, third-party, accident, and health are Tryg's largest lines of business. Tryg insures both companies and private individuals, though private individuals make up close to two-thirds of revenue. In June 2021 Tryg acquired the Scandinavian operations of Royal Sun Alliance. The acquisition provided Tryg with a significant step forward in Sweden, introducing DKK 8 billion of insurance revenue and DKK 1 billion in Norway.
73GF Score
Get the complete analysis for CHIX:TRYGC
Probability of Financial Distress (%) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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