First quarter 2009: Good results from general insurance

The Gjensidige Forsikring group achieved a pre-tax profit for Q1 of NOK 296.3 million, compared to a loss of NOK 497.3 million for the same period in 2008.

• Continued good underwriting results in general insurance business: NOK 97.4 million for the quarter (NOK 77.5 million for the corresponding period 2008)
• Good cost performance: 17.9% (18.2)
• Significantly improved financial result: NOK 281.0 million (minus NOK 498.7 million)
• Result before tax: NOK 296.3 million (minus NOK 497.3 million) 

 The positive result is due to a combination of good general insurance profits, measured as underwriting result, and a positive financial result. The investment in Storebrand has however had a negative impact on the result of NOK 188.6 million. Underwriting profit was NOK 97.4 million for the quarter, an increase of 24.4% compared to the same period last year. The company continues to enjoy good cost performance.

The Group’s results for 2009 will be affected by the development of the financial markets. The financial results for the first quarter were satisfactory, but the volatility and unrest in the financial markets are expected to impact Gjensidige’s results in 2009 as well.

There has been some reduction in the insurance portfolio in Norway due to strong competition and the prioritisation of profitability. Good customer services and rationalisation of internal processes is expected to strengthen the group's market position. 

"The combination of continuous improvements in our core business and a solid financial position give us a strong base for more growth and development for Gjensidige," says CEO Helge Leiro Baastad.

Head of Communication Øystein Thoresen, Tel.: 47 95233382
Deputy CEO Tor Magne Lønnum, Tel.: 47 97164830