Another strong year for Gjensidige
- Operating profit: NOK 3.7 billion (NOK 4.1 billion in 2005)
- Profit after tax: NOK 3.3 billion (NOK 3.6 billion)
- Combined ratio: 94.6 (91.3)
The Gjensidige group delivered a strong result for 2006 with a preliminary operating profit of NOK 3.7 billion. The profit for 2005 and 2006 includes accounting gains of NOK 1.3 billion for the sale of shares in DnB NOR. The technical result is somewhat lower than in 2005 as a result of an increase in the number of claims and higher compensation payments. The company expects the insurance business to continue to be highly profitable in 2007. Increased competition for the good customers will challenge Gjensidige's position and therefore a fall in profitability must be expected in the coming years. The company has initiated a drive to simplify administrative processes and to increase sales through a flatter organisation and new working methods.
"Despite a significant increase in competition, we have strengthened our market position and are achieving excellent levels of profitability. The combination of a strong brand, good products at the right price and rewarding total customers makes us highly competitive," says Helge Leiro Baastad, CEO.
Banking and saving products set up in record time
Gjensidige can now offer a complete portfolio of financial and security products. Gjensidige Bank, launched in January last year, has been very positively received and Gjensidige Pensjon og Sparing has become a force to be reckoned with in its market. As at 31 December the company had approximately 10 per cent of the Norwegian compulsory company pension (OTP) market. The setting up of banking and saving products confirms the company has the ability to quickly realise competitive projects.
- Jørgen Ringdal, Group Support Services, tel. (+47) 901 86 261
- Øystein Thoresen, Head of communications, tel. (+47) 952 33 382