First quarter 2015: Solid start to the year

The Gjensidige Insurance Group recorded a profit before tax expense of NOK 987.3 million (1,155.9). The profit from general insurance operations measured by the underwriting result was NOK 416.5 million (349.1). For the investment portfolio, the return on financial assets was 0.9 per cent (1.3), or NOK 520.9 million (762.4). The profit after tax expense was NOK 748.1 million (923.0), corresponding to NOK 1.50 (1.85) per share.

‘We are very pleased with the start to 2015. The results are driven by good growth in premiums, good operations and cost efficiency,’ says CEO Helge Leiro Baastad.

The underwriting result was positively influenced by a solid growth in premiums of 4.3 per cent and a good underlying frequency claims development. The result reflects continued good control of customer and risk selection and risk pricing. Profitability in the quarter was better than normally expected in a first quarter, mainly because of a favourable weather situation in February and March. The storms Nina and Ole in January and February had a negative effect of approximately NOK 235 million on claims incurred. The total proportion of large losses was on a par with the corresponding quarter last year and marginally above the level normally expected. Higher run-off gains made a positive contribution to the profit performance.

Gjensidige Bank’s profit performance was good during the period as a result of business growth and lower financing costs, and Pension and Savings showed a stable profit performance.

Highlights first quarter 2015 (first quarter 2014):

  • Profit before tax expense: NOK 987.3 million (1,155.9)
  • Profit per share: 1.50 (1.85)
  • Earned premiums: NOK 5,119.2 million (4,907.2)
  • Underwriting result: NOK 416.5 million (349.1)
  • Combined ratio: 91.9% (92.9%)
  • Cost ratio: 15.0% (15.3%)
  • Financial result: NOK 520.9 million (762.4)
  • Annualised return on equity: 13.5% (13.9%)

Special factors and events

Dividend for 2014 paid on 5 May 2015: NOK 2,950 million, corresponding to NOK 5.90 per share

This information is subject to disclosure under the Norwegian Securities Act section §5-12.

Press:Head of Communication:
Relations Øystein Thoresen, Tel: 47 952 33 382

Analysts and investors:
Head of Investor Relations Janne Flessum, Tel: 47 915 14 739
Investor Relations Officer Linn Soltvedt, Tel: 47 411 10 555
Investor Relations Officer Anette Bolstad, Tel: 47 416 77 722

Gjensidige is a leading Nordic insurance group listed on the Oslo Stock Exchange. For nearly 200 years, we have worked passionately to secure the lives, health and assets of our customers. We have about 3,500 employees and offer insurance products in Norway, Denmark, Sweden and the Baltic states. In Norway, we also offer banking, pension and savings. Operating income was NOK 23 billion in 2014, while total assets was NOK 114 billion.

About Us

Gjensidige is one of the leading players in the Nordic general insurance market. The group offers general insurance products in Norway, Sweden, Denmark and the three Baltic countries. In addition the group offers online retail banking, pension and savings products and health care services in Norway. Gjensidige is one of Norway’s most well-known brands. Both the company logo and the Watchman have a high recognition factor. The roots of the general insurance operations can be traced back to the 1820s, while the Watchman has been an insurance trademark for more than 75 years. 2007 and 2008 saw the launch of the Watchman logo in the other countries where Gjensidige offers insurance products. The group’s health services has been branded Hjelp24.