Results significantly impacted by weather

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.

Gjensidige generated a profit after tax of NOK 821 million in the first quarter. The insurance service result was negatively impacted by weather-related claims and provisions. The result improved when adjusting for these items, due to continued strong momentum in revenue growth and efficient operations.

Highlights first quarter 2024 (first quarter 2023)

• Profit or loss before tax: NOK 1,076.2 million (1,491.5)
• Earnings per share: NOK 1.59 (2.26)
• Insurance revenue: NOK 9,473.9 million (8,531.7)
• Insurance service result: NOK 704.1 million (1,114.8)
• Combined ratio: 92.6 % (86.9 %)
• Cost ratio: 13.4 % (13.4 %)
• Financial result: NOK 447.6 million (794.1)
• Solvency ratio, approved Partial Internal Model: 177 % (181 %)

- We continue to have a very strong growth momentum. We navigated very well through a tough quarter which was heavily impacted by harsh weather conditions, says CEO Geir Holmgren.

- I am very impressed by our organisation’s ability to handle yet another quarter with an extraordinary high number of enquiries and claims. We have taken good care of our customers when it matters the most, and processed claims in an efficient manner, Holmgren says.

General insurance

Insurance revenue increased by 11.0 per cent to NOK 9,473.9 million (8,531.7), or by 9.7 per cent measured in local currency. This was due to solid renewals, effective and differentiated pricing measures, and volume growth.

The insurance service result decreased by 36.8 per cent to NOK 704.1 million (1,114.8), corresponding to a combined ratio of 92.6 (86.9). The decrease was primarily driven by the harsh weather conditions in the Nordics. A higher discounting effect contributed positively to the insurance service result.

Adjusted for NOK 577.1 million in weather-related claims and NOK 108.2 million in provisions due to a recent court ruling in Denmark in favour of the Consumer Ombudsman, the insurance service result was NOK 1,389.4 million. This corresponds to a combined ratio of 85.5.

The loss ratio increased by 5.6 percentage points compared with the first quarter last year, driven by the increase in weather-related claims. Adjusted for the weather-related frequency claims and the provisions mentioned above, the underlying frequency loss ratio improved by 0.2 percentage points.

The cost ratio was stable at 13.4 per cent.

Pension

The pension segment recorded a profit before tax expense of NOK 151.7 million (minus 8.5), driven by a higher insurance service result and changes in financial assumptions. The insurance service result was impacted by adjustments to best estimate of future liabilities and year-end adjustments of profit sharing, amounting to a positive impact of NOK 35.3 million in the first quarter of 2024 (minus 15.1).

Financial result

The financial result for the quarter was NOK 447.6 million (794.1), which corresponds to a return on total assets of 0.7 per cent (1.3). The result for the quarter was positively impacted by high running yields, lower credit spreads and positive equity markets.

Outlook remains good

-The outlook for Gjensidige’s insurance service result for the rest of the year remains good. We will continue to focus on profitable growth, and further improve operational efficiency across the Group, which together with our strong product offering and solid capital position bode well for continued solid results and attractive returns to our shareholders, Holmgren says.

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, 25 April 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.