GJF Q2 2016 results: Yet another strong second quarter

The Gjensidige Insurance Group recorded a profit before tax expense of NOK 1,709.3 million (1,640.1) for the second quarter. The underwriting result was NOK 1,071.6 million (1,070.2), corresponding to a combined ratio of 80.6 (79.4). The return on financial assets was 1.0 per cent (0.9), or NOK 569.5 million (511.1). The profit after tax expense was NOK 1,294.8 million (1,195.2), corresponding to NOK 2.60 (2.39) per share.

- Gjensidige once again delivered a strong underwriting result. Relevant customer offerings, cost efficient operations and good risk selection and risk pricing were keys to success, says CEO Helge Leiro Baastad. -We strengthened our domestic leadership position, while at the same time achieving good profitability and high level of customer satisfaction, Baastad says.

The strong underwriting result was driven by 6.7 per cent premium growth combined with a continued favourable underlying frequency claims development. Large losses were higher than in the same period in 2015, but lower than what is normally expected during a second quarter. Run-off gains were around the expected level for the quarter and higher than in the same period last year.

The Retail Bank showed a positive profit development compared with the same period in 2015, mainly driven by portfolio growth. Pension and Savings recorded a profit somewhat higher than the same period last year due to higher volumes and increased net financial income.

The financial result in the quarter was positively impacted by good returns on bonds and the investment in SpareBank1 SR-Bank.

Year to date, the Group recorded a profit before tax expense of NOK 3,318.2 million (2,627.5). The underwriting result was NOK 2,322.4 million (1,486.7), corresponding to a combined ratio of 79.0 (85.6). The return on financial assets was 1.6 per cent (1.8), or NOK 893.3 million (1,032.0). The profit after tax expense was NOK 2,403.7 million (1,943.3), corresponding to NOK 4.82 (3.89) per share.

Highlights second quarter 2016 (second quarter 2015)

  • Profit/loss before tax expense: NOK 1,709.3 million (1,640.1)
  • Profit per share: NOK 2.60 (2.39)
  • Earned premiums: NOK 5,536.8 million (5,188.1)
  • Underwriting result: NOK 1,071.6 million (1,070.2)
  • Combined ratio: 80.6 (79.4)
  • Cost ratio: 15.6 (15.0)
  • Financial result: NOK 569.5 million (511.1)

Highlights year to date 2016 (year to date 2015)

  • Profit/loss before tax expense: NOK 3,318.2 million (2,627.5)
  • Profit per share: NOK 4.82 (3.89)
  • Earned premiums: NOK 11,050.8 million (10,307.3)
  • Underwriting result: NOK 2,322.4 million (1,486.7)
  • Combined ratio: 79.0 (85.6)
  • Cost ratio: 11.1 (15.0)
  • Financial result: NOK 893.3 million (1,032.0)

Head of Information Øystein Thoresen. Tel: 47 952 33 382
IR director Janne Merete Flessum Tel:  47 915 14 739
IR officer Anette Bolstad Tel: 47 416 77 722
IR officer Katharina Helena Hesbø Tlf: 47 993 62 804  

Gjensidige is a leading Nordic insurance group listed on the Oslo Stock Exchange. We have about 3,900 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 24 billion in 2015, while total assets were NOK 129 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.