Fourth quarter and preliminary results 2014: Solid growth in premiums and a good profit development

The Gjensidige Insurance Group recorded a profit before tax for the quarter of NOK 1,159.0 million (1,283.1). The profit from general insurance operations measured by the underwriting result was NOK 807.2 million (375.7), and was the best fourth quarter underwriting result ever. For the investment portfolio, the return on financial assets was 0.7 per cent (1.5), or NOK 367.3 million (877.6). The profit after tax was NOK 964.1 million (1,134.5), corresponding to NOK 1.93 (2.27) per share.

-Gjensidige had a good development throughout 2014, and we are very satisfied with a strong end to 2014. The results reflect solid premium growth, good claims development and efficient operations ,-says CEO Helge Leiro Baastad. Continuous efficiency measures combined with investments in IT, competence development and brand strength shall contribute to continued strong competitiveness going forward, says Baastad.

The underwriting result in the quarter was driven by solid growth in premiums and a good underlying frequency claims development. The proportion of large losses was lower than in the corresponding period in 2013 and lower than normally expected. In addition, run-off gains were higher. Both the Retail Bank and Pension and Savings showed an improvement in underlying profit performance compared with the same period in 2013 as a result of growth in volume. The financial result in the quarter was satisfactory given the challenging interest rate situation and the weak development of cyclical assets, including, in particular, the investment in SpareBank1 SR-Bank.

The Gjensidige Insurance Group recorded preliminary profit before tax for the year of NOK 5,399.6 million (4,574.1). The profit from general insurance operations measured by the underwriting result was NOK 2,862.3 million (2,019.6). For the investment portfolio, the return on financial assets was 4.3 per cent (4.3), corresponding to NOK 2,426.3 million (2,480.9). The profit after tax was NOK 4,189.6 million (3,670.6), corresponding to NOK 8.38 (7.34) per share.

The underwriting result for 2014 was positively influenced by solid growth in premiums of 8.8 per cent and a good underlying frequency claims development, among other things as a result of a favourable weather situation, as well as good control of customer and risk selection and risk pricing. A lower proportion of large losses and higher run-off gains also made a positive contribution to the profit performance compared with 2013. The Retail Bank’s profit performance was good during the year, driven by volume growth and efficient operations. Pension and Savings also recorded a positive underlying profit performance. The investment portfolio yielded a satisfactory return, on a par with 2013.

Proposed dividend:
The Board has proposed a dividend of NOK 2,950 million for the 2014 financial year, corresponding to NOK 5.90 per share. Ex-dividend date is 24 April 2015.

Highlights fourth quarter 2014 (fourth quarter 2013)

• Profit before tax: NOK 1,159.0 million (1,283.1)
• Profit per share: 1.93 (2.27)
• Earned premiums: NOK 5,214.4 million (4,766.3)
• Underwriting result: NOK 807.2 million (375.7)
• Combined ratio: 84.5 (92.1)
• Cost ratio: 15.3 (15.2)
• Financial result: NOK 367.3 million (877.6)

Highlights 2014 (2013)

• Profit before tax: NOK 5,399.6 million (4,574.1)
• Profit per share: 8.38 (7.34)
• Earned premiums: NOK 20,386.8 million (18,736.9)
• Underwriting result: NOK 2,862.3 million (2,019.6)
• Combined ratio: 86.0 (89.2)
• Cost ratio: 15.0 (15.3)
• Financial result: NOK 2,426.3 million (2,480.9)

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

Analysts and investors:
Head of Investor Relations Janne Flessum, Tel: 47 915 14 739
Investor Relations Officer Linn Soltvedt, Tel: 47 411 10 555
Investor Relations Officer Anette Bolstad, Tel: 47 416 77 722

Press:Head of Media:
Relations Øystein Thoresen, Tel: 47 952 33 382

Gjensidige is a leading Nordic insurance group built by customers, for customers. The Group is listed on the Oslo Stock Exchange. For nearly 200 years, we have worked passionately to secure the lives, health and assets of our customers. We have about 3,400 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 20,9 billion in 2013, while total assets was NOK108.9 billion.