Fourth quarter and preliminary profit for the year 2012: Record-strong result in 2012

The Group recorded a profit before tax for the quarter of NOK 1,381 million (814). The profit from general insurance operations measured by the underwriting result was NOK 603 million (186). For the investment portfolio, the return on financial assets was 1.4 per cent (1.3), or NOK 773 million (683)

The preliminary profit before tax for the year 2012 amounted to NOK 5,634 million (3,647). The profit for the year from general insurance operations measured by the underwriting result was NOK 2,608 million (1,421). For the investment portfolio, the return on financial assets was 5.4 per cent (4.4), or NOK 3,005 million (2,331).

The Board of Directors proposes a dividend of NOK 3,425 million (2,275), corresponding to NOK 6.85 per share (4.55).

The positive development in profit performance recorded by general insurance operations in 2012 is due to a combination of increased earned premiums and lower claims incurred, largely as a result of the favourable weather situation. Better risk pricing also contributed to the positive development. The Banking and Pension and Savings business areas also showed positive development in 2012.

'We are very satisfied with the profit performance, and we are pleased that that we have managed to combine good cost control and efficient operations with further development of key areas. The development in customer satisfaction has also been very good throughout the year. While good profitability has high priority, we are also investing in measures aimed at ensuring an even better customer experience,' says Helge Leiro Baastad, chief executive officer.

The work on simplification, automation and increased use of self-service solutions continues at full speed. Based on key learnings from Norway, initiatives aimed at improving risk pricing will be implemented in Denmark later this year.

'Combined with the launching of a new visual profile and customer portal, these initiatives will give us a stronger basis for profitable growth and for positioning Gjensidige as the most customer-oriented general insurance company in the Nordic region,' Baastad says.

Highlights fourth quarter 2012 (fourth quarter 2011):

• Profit before tax expense: NOK 1,381 million (814)
• Profit per share: NOK 2.01 (1.15)
• Earned premiums: NOK 4,418 million (4,372)
• Underwriting result: NOK 603 million (186)
• Combined ratio: 86.4 (95.7)
• Cost ratio: 16.0 (16.7)
• Return on financial assets: NOK 773 million (683)

Highlights 2012 (2011):

• Profit before tax expense: NOK 5,634 million (3,647)
• Profit per share: NOK 8.56 (5.50)
• Earned premiums: NOK 17,797 million (17,548)
• Underwriting result: NOK 2,608 million (1,421)
• Combined ratio: 85.3 (91.9)
• Cost ratio: 15.5 (16.4)
• Return on financial assets: NOK 3,005 million (2,331)

Proposed dividend:

• Ordinary dividend: NOK 3,425 million (2,275)
• Ordinary dividend per share: NOK 6.85 (4.55)

Head of Information Øystein Thoresen. Tel: 47 952 33 382
IR director Janne Merete Flessum Tel:  47 915 14 739
IR officer Linn Therese Soltvedt, Tlf: 47 411 10 555

Gjensidige is a leading Nordic insurance group built by customers, for customers. The Group has been listed on the Oslo Stock Exchange since 2010. For nearly 200 years, we have worked passionately to secure the lives, health and assets of our customers. We have about 3,100 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 19.5 billion in 2012, while total assets was NOK 94.2 billion.