Higher insurance service result driven by revenue growth
This release contains inside information related to Gjensidige Forsikring ASA pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
The third quarter showed continued strong revenue growth as well as high claims levels for property and private motor insurance in Norway. Targeted measures will gradually improve the underlying profitability. Results from the investment portfolios and the pension business contributed to an annualised return on equity of 23.5 per cent. Due to the insurance service result year-to-date, the Group does not expect to deliver on the combined ratio target for 2024. All the financial targets for 2025 and 2026 are maintained.
| Highlights | Third quarter | Year-to-date | |||
| 2024 | 2023 | 2024 | 2023 | ||
| Group | |||||
| Profit or loss before tax | NOK million | 2,214.6 | 1,115.0 | 5,095.2 | 3,929.7 |
| Earnings per share | NOK | 3.32 | 1.63 | 7.63 | 5.93 |
| General Insurance | |||||
| Insurance revenue | NOK million | 9,888.8 | 8,853.1 | 28,340.5 | 25,588.9 |
| Insurance service result | NOK million | 1,590.0 | 1,111.6 | 3,716.7 | 3,735.4 |
| Combined ratio | Per cent | 83.9% | 87.4% | 86.9% | 85.4% |
| Cost ratio | Per cent | 11.8% | 16.6% | 12.3% | 14.1% |
| Financial result | NOK million | 1,306.5 | 114.5 | 2,250.5 | 689.3 |
| Solvency ratio, approved Partial Internal Model | Per cent | 164% | 185% | ||
-Claims cost in Norway continues to increase, both within property and motor insurance. It is encouraging to see that we manage to deliver solid revenue growth and that our customer loyalty remains high, says CEO Geir Holmgren.
General insurance
Insurance revenue increased by 11.7 per cent to NOK 9,888.8 million (8,853.1) in the quarter, or by 10.6 per cent measured in local currency. This was mainly driven by effective and differentiated pricing measures and solid renewals.
The insurance service result increased by 43.0 per cent. The increase was driven by a lower cost ratio and higher insurance revenue. Operating expenses in the third quarter 2023 were significantly impacted by one-off expenses of NOK 409.0 million.
The loss ratio in the third quarter 2024 increased by 1.3 percentage points, reflecting a higher underlying frequency loss ratio, lower run-off gains, a change in risk adjustment and a lower discounting effect. Large losses were lower than the same quarter last year. For comparison, the Group recognised weather-related claims costs of NOK 558.1 million in the third quarter last year, of which NOK 35.0 million as frequency losses. Adjusted for this the underlying frequency loss ratio increased by 2.3 percentage points. The deterioration was primarily driven by private and commercial property and accident and health insurance in Norway and private motor insurance in Norway and Denmark.
Pension
The pension segment recorded a profit before tax expense of NOK 123.8 million (3.9), driven by an increase in net finance income and increased income from the unit linked business.
Financial result
The financial result for the quarter was NOK 1,306.5 million (114.5), which corresponds to a return on total assets of 2.1 per cent (0.2). The result for the quarter was positively impacted by high running yields, falling interest rates, lower credit spreads and positive equity markets.
This release contains alternative performance measures (APMs). APMs are described at www.gjensidige.com/reporting
This release is issued by Christian Haraldsen, media relations officer at Gjensidige Forsikring ASA.
Date and time of publication: 07:00 CET, 22 October 2024
Contact persons
Head of Communication, Øystein Thoresen. Tel: +47 952 33 382
Head of Investor Relations Mitra Hagen Negård. Tel: +47 957 93 631
Gjensidige is a leading Nordic insurance group listed on the Oslo Stock Exchange. We have about 4,500 employees and offer insurance products in Norway, Denmark, Sweden and the Baltic states. In Norway, we also offer pension and savings. The Group's operating income was NOK 36 billion in 2023, while total assets were NOK 148 billion.