Q4 and provisional annual result 2008
The Gjensidige Forsikring Group reported a loss before tax for the fourth quarter of NOK 653 million compared with a profit of NOK 645 million for the same period in 2008. For the year as a whole, the profit before tax amounted to NOK 307 million (NOK 3,020 million in 2007).
Good growth in premiums: 2.4 percent growth in earned premiums for the quarter and 4.3 percent growth in 2008 as a whole
• Positive underwriting result for general insurance: NOK 167 million for the quarter and NOK 860 million for 2008
• Net financial result: Minus NOK 737 million for the quarter and minus NOK 220 million for 2008
• Result before tax: Minus NOK 653 million for the quarter and NOK 307 million for 2008
• Cost developments remain positive
The underwriting result for general insurance amounted to NOK 167 million for Q4, a reduction from NOK 220 million in 2007. This reduction is mainly attributable to the increase in major claims within the commercial sector in Norway during the second half of the year. For the year as a whole, the underwriting result showed an increase of 55.6 percent to NOK 860 million (NOK 553 million in 2007). Earned premiums, net of reinsurance, for general insurance operations increased by 2.4 percent in the quarter when compared with the same period in 2007. For the year as a whole, the increase was 4.3 percent. Cost performance had a positive development in 2008, with a cost ratio of 17.0 percent (17.5 percent in 2007) which is mainly due to a simplification of administrative procedures and the amendments to the distribution organisation.
The development in net financial revenues is marked by a negative result from the investment in Storebrand of NOK 474.7 million for the quarter and NOK 1,719 million for 2008, an increase in the credit spreads and a turbulent market.
“The insurance operations have provided good results throughout the year, and profitability for the year is satisfactory. The combination of successful operations and significant financial flexibility provides Gjensidige with a number of opportunities for sustained growth and development,” confirms CEO Helge Leiro Baastad.
| MNOK | Q4 2008 | Q4 2007 | 2008 | 2007 |
| Gross premium written | 3 476 | 3 342 | 17 429 | 15 727 |
| Claims ratio general insurance | 77,7 % | 76,0 % | 77,4 % | 78,6 % |
| Cost ratio general insurance | 18,0 % | 18,1 % | 17,0 % | 17,5 % |
| UW result general insurance | 167 | 820 | 860 | 553 |
| Net financial incom/loss | (732) | 513 | (220) | 2 820 |
| Profit/loss before tax | (653) | 645 | 307 | 3 020 |
| Profit after tax | (827) | 589 | 486 | 2 47 |
Head of Communication Øystein Thoresen, Tel.: 47 95233382
Deputy CEO Tor Magne Lønnum, Tel.: 47 97164830