Record-strong underwriting result in the third quarter

The Gjensidige Forsikring Group recorded a profit before tax for the quarter of NOK 1,718.4 million (1,515.9). The underwriting result was record-strong at NOK 1,150.2 million (711.8), corresponding to a combined ratio of 81.0 (87.5). In the third quarter 2016 a non-recurring restructuring cost of NOK 120 million was recognised. The return on financial assets was 0.9 per cent (1.3), or NOK 477.3 million (700.4). The profit after tax was NOK 1,312.7 million (1,171.7), corresponding to NOK 2.63 (2.34) per share.

 - We deliver another solid result, and the best-ever underwriting result, combined with continued good competitiveness and cost-efficient operations, says CEO Helge Leiro Baastad. We are also proud that we are granted the IPSOS reputation prize 2017 in Norway, and are ranked number 1 in the Norwegian financial sector, Baastad says.

The solid underwriting result was driven by 6.2 per cent growth in premiums combined with an improved underlying frequency claims loss ratio. Also, large losses were lower than in the third quarter 2016, below the level that is normally expected. Run-off gains were close to the expected level.

The Retail Bank showed a flat profit development compared to the same quarter last year, while the Pension operation recorded a lower profit, mainly due to a lower financial result and reserve strengthening.

The financial result in the quarter was lower than in the same period last year. Good returns on equities, properties and high-yield bonds were partly offset by negative return from tactical allocations.

Year to date the Group recorded a strong profit before tax of NOK 4,586.0 million (4,834.1) for the year to date. The underwriting result was NOK 2,854.7 million (3,034.1), corresponding to a combined ratio of 83.6 (81.9). Adjusted for a one-off related to pension payments of NOK 476.6 million in the first quarter 2016 and a one-off in restructuring cost of NOK 120 million in the third quarter 2016, the year to-date underwriting result in 2016 was NOK 2,677.5 million, corresponding to a combined ratio of 84.0. The return on financial assets was 2.8 per cent (2.8), or NOK 1,513.4 million (1,593.7). The profit after tax was NOK 3,517.2 million (3,575.5), corresponding to NOK 7.04 (7.15) per share.

Highlights third quarter 2017 (third quarter 2016)

  • Profit/loss before tax: NOK 1,718.4 million (1,515.9)
  • Profit per share: NOK 2.63 (2.34)
  • Earned premiums: NOK 6,056.4 million (5,705.5)
  • Underwriting result: NOK 1,150.2 million (711.8)
  • Combined ratio: 81.0 (87.5)
  • Cost ratio: 14.7 (17.3)
  • Financial result: NOK 477.3 million (700.4)
  • Highlights year to date 2017 (year to date 2016)

Profit/loss before tax: NOK 4,586.0 million (4,834.1)

  • Earnings per share: NOK 7.04 (7.15)
  • Earned premiums: NOK 17,428.8 million (16,756.3)
  • Underwriting result: NOK 2,854.7 million (3,034.1)
  • Combined ratio: 83.6 (81.9)
  • Cost ratio: 15.2 (13.2)
  • Financial result: NOK 1,513.4 million (1,593.7)

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

Head of Communication Øystein Thoresen. Tel: 47 952 33 382
IR director Janne Merete Flessum Tel:  47 915 14 739
IR officer Katharina Helena Hesbø, Tlf: 47 993 62 804

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.