Insr Insurance Group second quarter 2018 results: No spring this year

Oslo,  August 14th, 2018

Insr Insurance Group ASA (OSE:INSR) announces results for the first half and second quarter of 2018.

A presentation of the results by the Group’s senior management team will take place today at 08:30 CET - see details below.

Organic premium portfolio growth continued for the fourth consecutive quarter. With 12.4% annualized growth in the second quarter, Insr is ahead of plan, and the medium term target of low double digit growth is within reach already for 2018. This is a consequence of strong interest in our wholesale proposition, and a good development in the own brand channels, taking into account the ongoing integration of Nemi and Vardia brands and businesses.

The step change in operations has been confirmed. Integration efforts following the acquisition of Nemi are progressing according to plan. The entire company is now on one accounting and ERP solution, and migration of commercial Vardia-customers has started. A full migration of private Vardia-customers will take place in the fourth quarter. The Porsgrunn office was closed ultimo June; the Nemi and Insr operations are thus running from only one location in Norway.

The capital structure of Insr is proving well-functioning. Unlike last year, the reinsurance programme is picking up its proportional share of the losses. The solvency II margin is stable, 161%, reflecting a solid capital base.

The Norwegian insurance market reports underwriting results for the quarter affected both by spill-over from a harsh winter and continued underlying claims inflation. Insr’s claims ratio was also above last year for this quarter. Our significant price adjustments have not increased customer churn, indicating that the market in general is launching price measures.

The net loss from operations was NOK 17.4 million.

Espen Husstad, CEO of Insr Insurance Group, comments: “I’m very satisfied to see low double digit growth when we are in the middle of integrating two insurance companies. Nemi and Insr are coming together as planned, within agreed cost and time. The claims development, however, is not satisfactory, but we are already well on our way to having that resolved. ”

Financial Highlights Q2 2018
(Figures in brackets = pro forma figures for same period prior year unless otherwise stated)

• Premiums earned for own account was NOK 156.0 million (NOK 98.3 million pro forma and NOK 54.7 million reported)

• Net result was a loss of NOK 17.4 million (pro forma gain of NOK 4.3 million)

• Gross loss ratio of 85.3% (56.5%)

• Gross cost ratio of 25.8% (28.0%)

• Combined ratio for own account was equal to gross combined, 111.7% vs. 111.1% (83.2%)

• The solvency ratio is 161%; stable from 162% at the end of Q1

Outlook

The focus in 2018 remains integration and profitable growth.

Migration to one core IT system and joint work processes is on track, and will be completed in the fourth quarter of 2018.

Insr expects continued organic portfolio growth in the rest of 2018. The medium term target of low double digit growth is within reach already for 2018.

The quality of the insurance portfolio is expected to improve as a result of pricing and pruning measures. Cost synergies will materialize in the financials post migration.

Insr targets a gross combined ratio in the medium term of 90-92%, and aims for low double digit portfolio growth.

Insr Insurance Group ASA complies with statutory solvency requirements, reporting a solvency ratio of 161% as of June 30th, 2018. The company will optimize capital management with a sustainable solvency margin above 130% going forward.

Presentation details

Espen Husstad (CEO) and Bård Standal (CFO) will present the results on August 14th at 08:30 CET:

(1) Through participative webcast, link: http://webtv.hegnar.no/presentation.php?webcastId=92019047

(2) In Vika Atrium Conference Centre, Munkedamsveien 45, Oslo.

The interim report and investor presentation for the first half and second quarter of 2018 are attached to this release.

For further information, please contact:

Anne B. Knudtzon, SVP Business Controlling & Investor Relations
T: +47 926 10 606
E: anne.b.knudtzon@insr.io

This information is subject of the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.

Anne B. Knudtzon
SVP Business Controlling & Investor Relations
Phone: +47 926 10 606
E-mail: Anne B. Knudtzon

Insr Insurance Group ASA was established in 2009 and is an independent insurance group listed on the Oslo Stock Exchange, with headquarters in Oslo. Insr has a license for all groups of non-life insurance, except for credit and guarantee insurance. The Company's main focus is on the market for property and casualty insurance for the retail and small & medium sized enterprise segments in Norway and Denmark. Insr distributes its products mainly through insurance agents and partners.

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