A solid first quarter result

This release contains inside information related to Gjensidige Forsikring ASA pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

Continued strong growth due to effective pricing measures, combined with good risk selection and stringent cost control, resulted in a good insurance service result for the quarter despite the difficult weather conditions in Norway. The return on the investment portfolio reflects improved market conditions. The outlook for Gjensidige’s insurance service results remains good.

Gjensidige Forsikring Group recorded a profit before tax of NOK 1,491.5 million (1,037.3) for the quarter. The profit after tax was NOK 1,147.0 million (954.6) and the corresponding earnings per share were NOK 2.26 (1.89). The profit in the first quarter 2022 included a gain of NOK 0.8 billion on the sale of Oslo Areal. The profit from general insurance operations measured by the insurance service result was NOK 1,114.8 million (903.7), corresponding to a combined ratio of 86.9 (88.3).

- We are very pleased with the solid results this quarter, despite the challenges posed by the difficult weather conditions. The outlook for our business is good and I am confident that we are on the best possible trajectory to continue our strong performance and deliver strong insurance results, says CEO Geir Holmgren. 

- Today, we are also announcing that we are transforming our organisational structure to further enhance operational excellence and strengthen our position to become a leading general insurance company in the Nordics and Baltics, Holmgren says.

Insurance revenue from general insurance increased by 10.3 per cent to NOK 8,531.7 million (7,733.1) in the quarter, or by 7.4 per cent measured in local currency. This was due to solid renewals, effective and differentiated pricing measures and volume growth. The insurance service result increased by 23.3 per cent, due to higher insurance revenue, lower large losses, a positive discounting effect and higher run-off gains. The underlying frequency loss ratio increased by 3.1 percentage points, with the main driver being difficult weather conditions in Norway which impacted motor claims. The cost ratio was unchanged.

The Pension segment generated a loss for the period, driven by both a negative insurance service result and net financial income. The negative insurance service result must be seen in relation to the increase in the Contractual Service Margin which represents expected profit to be released in the future, upon expiry of the insurance contracts.

The financial result for the quarter was NOK 794.1 million (minus 1,128.4), which corresponds to a return on total assets of 1.3 per cent (minus 1.8). The result for the quarter was positively impacted by the rise in global equity markets, depreciation of the Norwegian krone and lower credit spreads and interest rates, especially outside Norway. A high running yield contributed to good returns.

Highlights first quarter 2023 (first quarter 2022)

• Profit or loss before tax: NOK 1,491.5 million (1,037.3)
• Earnings per share: NOK 2.26 (1.89)
• Insurance revenue: NOK 8,531.7 million (7,733.1)
• Insurance service result: NOK 1,114.8 million (903.7)
• Combined ratio: 86.9 % (88.3 %)
• Cost ratio: 13.4 % (13.4 %)
• Financial result: NOK 794.1 million (minus 1,128.4)

This release contains alternative performance measures (APMs). APMs are described at www.gjensidige.no/reporting in a document named APMs Gjensidige Forsikring Group Q12023.

This release is issued by Jon Aniksdal, Communication Manager at Gjensidige Forsikring ASA.

Date and time of publication: 07:00 CET 28.04.2023

Contact persons, Gjensidige Forsikring ASA:
Head of Communication, Øystein Thoresen. Tel: 47 952 33 382
Head of Investor Relations Mitra Hagen Negård. Tel:  47 957 93 631

Gjensidige is a leading Nordic insurance group listed on the Oslo Stock Exchange. We have about 4,200 employees and offer insurance products in Norway, Denmark, Sweden and the Baltic states. In Norway, we also offer pension and savings. The Group's operating income was NOK 34 billion in 2022, while total assets were NOK 135 billion.