Second quarter and first half-year 2014: Solid growth in premiums and record strong underwriting result

The Gjensidige Insurance Group recorded a profit before tax expense for the second quarter of NOK 1,747.9 million (1,076.9). Earned premiums from general insurance increased by 8.9 per cent from the same period last year, and the profit from general insurance operations measured by the underwriting result was NOK 951.0 million (448.5). For the investment portfolio, the return on financial assets was 1.3 per cent (1.1), or NOK 744.6 million (604.6). The profit after tax expense was NOK 1,304.8 million (891.3), corresponding to NOK 2.61 (1.78) per share.

The record strong underwriting result was driven by solid premium growth, good underlying frequency claims development and a low proportion of large losses.

'This is the best underwriting result we have ever delivered in a single quarter. ’The result is affected by a benign weather situation in the period, but also reflects continued good competitive strength and solid operations’, says CEO Helge Leiro Baastad.

Both the Retail Bank and Pension and Savings have improved their profit performance since the same period last year as a result of volume growth. The financial result in the quarter was satisfactory.

The Group recorded a profit before tax expense for the first half-year of NOK 2,903.9 million (1,617.6). The profit from general insurance operations measured by the underwriting result was NOK 1,300.1 million (791.4). For the investment portfolio, the return on financial assets was 2.6 per cent (1.4), or NOK 1,507.0 million (777.5). The profit after tax expense was NOK 2,227.8 million (1,207.9), corresponding to NOK 4.46 (2.42) per share.

Highlights second quarter 2014 (second quarter 2013)

  • Profit before tax expense: NOK 1,747.9 million (1,076.9)
  • Profit per share: NOK 2.61 (1.78)
  • Earned premiums: NOK 5,061.5 million (4,646.6)
  • Underwriting result: NOK 951.0 million (448.5)
  • Combined ratio: 81.2 (90.3)
  • Cost ratio: 14.9 (15.3)
  • Financial result: NOK 744.6 million (604.6)

Highlights first half-year 2014 (first half-year 2013)

  • Profit before tax expense: NOK 2,903.9 million (1,617.6)
  • Profit per share: 4.46 (2.42)
  • Earned premiums: NOK 9,968.8 million (9,103.7)
  • Underwriting result: NOK 1,300.1 million (791.4)
  • Combined ratio: 87.0 (91.3)
  • Cost ratio: 15.1 (15.5)
  • Financial result: 1,507.0 (777.5)

This press release is subject to a disclosure requirement pursuant to Section 5-12 of the Securities Trading Act

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

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

Gjensidige is a leading Nordic insurance group built by customers, for customers. The Group is 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 3,400 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 20,9 billion in 2013, while total assets was NOK108.9 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.