First quarter 2010: Insurance revenues affected by cold winter

The Gjensidige Forsikring group made a pre-tax profit of NOK 344.3 million for the quarter, compared to NOK 296.3 million in the same period in 2009.

• Profit before tax in the quarter: NOK 344.3 million (NOK 296.3 million in the same period in 2009)
• A strong financial result in the quarter ensures a satisfactory profit
• Negative result from general insurance operations as a result of the cold winter: Minus NOK 368.7 million (NOK 97.4 million)
• Claims from 10,000 Gjensidige customers were paid out for flood and frost damage
• Gjensidige Bank made a profit for the first time since start-up
• Significant progress on the Norwegian Customer Barometer shows that investment in customer information yields good results
• HR-Norge designates Gjensidige as 'competence enterprise of the year'
• The acquisition of Nykredit Forsikring boosts Gjensidige's position on the Danish general insurance market

The Gjensidige Forsikring group made a pre-tax profit of NOK 344.3 million for the quarter, compared to NOK 296.3 million in the same period in 2009. Compared with the underwriting result, the profit/loss from general insurance operations was affected by the harsh winter, with claims NOK 371 million above the normal level. The net financial return improved considerably from NOK 272.4 million to NOK 836.7 million. The cost ratio performed positively, ending at  16.7 (17.9).  

Conversion to a public limited company was unanimously approved by the annual general meeting on 23 April. Final implementation is pending approval by the authorities. Providing the stock market situation is satisfactory, Gjensidige Forsikring will be floated on the stock exchange during Q3/4, 2010.  

"The cold winter has clearly left its mark on the quarter's result. However, it is very satisfying to note that our employees have handled a record number of claims professionally and efficiently, and I am convinced once more that Customer Service is our most important competitive advantage. It is also reassuring to note that the Norwegian Customer Barometer confirms customer satisfaction with Gjensidige has increased," says group CEO Helge Leiro Baastad. 

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

Gjensidige Forsikring ASA is Norway’s largest general insurance company with a market share of 28.4 percent in 2009. The group also offers banking, pension and saving products and health care services in Norway and general insurance in Denmark, Sweden and the Baltic countries. The company has approximately 3,800 employees, whereof 2,900 work in Norway. Operating income in 2009 was NOK 16.7 billion, while total assets constituted NOK 75 billion.