A strong third quarter – excess capital dividend distribution NOK 4.00 per share

The Gjensidige Insurance Group recorded a profit before tax for the quarter of NOK 1,515.9 million (951.7). The underwriting result was NOK 711.8 million (1,091.0), corresponding to a combined ratio of 87.5 (80.1). The return on financial assets was 1.3 per cent (minus 0.3) or NOK 700.4 million (minus 150.4). The profit after tax expense was NOK 1,171.7 million (624.0), corresponding to NOK 2.34 (1.19) per share. 

- Competitive customer offerings and continued cost efficient operations are major reasons for our ability to deliver a strong third quarter, says CEO Helge Leiro Baastad. - Gjensidige maintains a solid position in a market characterized by strong competition, Baastad says.

The Board has decided to distribute excess capital in the amount of NOK 2,000 million, corresponding to NOK 4.00 per share. The decision was made on the basis of the Board’s current authorisation to determine distribution of dividend granted by the ordinary General Meeting on 7 April 2016. The distribution is in accordance with the current capital strategy and dividend policy.

The lower underwriting result in the quarter was partly driven by a provision of NOK 120.0 million to cover one-time restructuring costs related to the reduction of about 190 full-time equivalent positions in staff and support functions. Furthermore, a more normal level of large losses and a revision of the actuarial models for calculating future claims provisions that resulted in a positive effect of around NOK 100 million in the third quarter last year, also explains the lower result compared with that quarter. Also, one short period of local heavy rains in parts of Norway to some extent affected the frequency claims level. Adjusted for this, the underlying frequency claims level was still relatively favourable.
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 somewhat higher profit than in 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 investments in current equities.
Year to date the Group recorded a profit before tax of NOK 4,834.1 million (3,579.2). The underwriting result was NOK 3,034.1 million (2,577.6), corresponding to a combined ratio of 81.9 (83.7). The return on financial assets was 2.8 per cent (1.5), or NOK 1,593.7 million (881.6). The profit after tax was NOK 3,575.5 million (2,567.1), corresponding to NOK 7.15 (5.08) per share.

Dividend decision:
NOK 2 billion excess capital distribution, corresponding to NOK 4.00 per share.

Shareholders registered on 31 October 2016 will be entitled to receive the dividend. The ex-dividend date is 1 November 2016 and the record date is 2 November 2016. The dividend will be distributed on 10 November 2016.

Highlights third quarter 2016 (third quarter 2015)

  • Profit/loss before tax expense: NOK 1,515.9 million (951.7)
  • Profit per share: NOK 2.34 (1.19)
  • Earned premiums: NOK 5,705.5 million (5,471.2)
  • Underwriting result: NOK 711.8 million (1,091.0)
  • Combined ratio: 87.5 (80.1)
  • Cost ratio: 17.3 (14.5)
  • Financial result: NOK 700.4 million (minus 150.4)

Highlights year to date 2016 (year to date 2015)

  • Profit/loss before tax expense: NOK 4,834.1 million (3,579.2)
  • Profit per share: NOK 7.15 (5.08)
  • Earned premiums: NOK 16,756.3 million (15,778.5)
  • Underwriting result: NOK 3,034.1 million (2,577.6)
  • Combined ratio: 81.9 (83.7)
  • Cost ratio: 13.2 (14.8)
  • Financial result: NOK 1,593.7 million (881.6)

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

Head of Information 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

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.