Second Quarter 2007 Strong earnings improvement – good financial results

• Profit before tax: NOK 1,031 million (NOK 604 million in 2006) 
• Combined ratio: 98.1 (93.6)
• Return on investment: 9.0 per cent (1.6)
• Work on a possible listing of primary capital certificates continues
• Tennant Insurance Group AB in Sweden acquired in May

Gjensidige Forsikring Group – which includes all the subsidiaries – reported a profit before tax of NOK 1,031 million in the second quarter, compared with NOK 604 million for the corresponding period last year. The profit before tax year to date was NOK 1,532 million, compared with NOK 1,251 million last year. The general insurance business was marked by a great number of medium-sized and large claims in the first half of the year, which has resulted in a higher loss ratio than last year. Claims related to the loss of the Bourbon Dolphin alone had a negative impact of over NOK 125 million on the results for the second quarter.

The good results have been achieved essentially through a strong investment return, primarily through high returns from the share and property markets.

The company started an efficiency improvement programme in the autumn of 2006. This programme has had a positive effect on the cost ratio year-to-date in 2007, but it will not achieve full effect until 2008.

– A new organisational structure, simplified administrative processes and a strengthened sales organisation will render the company well-equipped to meet future competition on the Norwegian and Nordic market. The established pension, savings and banking ventures, as well as the foreign ventures, have made a good start and will strengthen the company’s foundation for growth, says CEO Helge Leiro Baastad.

New loyalty programme. A programme offering good terms for customers with a complete customer relationship to Gjensidige has been launched. The programme is expected to strengthen the company’s growth in the new business areas, banking, life insurance and savings.

10,500 banking customers. Gjensidige Bank has acquired many new customers after the start of the nationwide marketing in May.  The number of banking customers increased by over 5,000 in the second quarter to a total of 10,500 customers.


Contact:
Senior Vice President Jørgen Ringdal. Tel.: 90186261
Chief Information Officer Øystein Thoresen. Tel.: 95233382

Gjensidige reports its consolidated accounts in accordance with the International Financial Reporting Standards (IFRS) from 1 January 2007. The results, key figures and comparison figures are therefore based on IFRS. Reference is made to a separate Transition Document that is available at gjensidige.no for a more detailed description of the effects of the implementation of IFRS.

About Us

Gjensidige is one of the leading players in the Nordic general insurance market. The group offers general insurance products in Norway, Sweden, Denmark and the three Baltic countries. In addition the group offers online retail banking, pension and savings products and health care services in Norway. Gjensidige is one of Norway’s most well-known brands. Both the company logo and the Watchman have a high recognition factor. The roots of the general insurance operations can be traced back to the 1820s, while the Watchman has been an insurance trademark for more than 75 years. 2007 and 2008 saw the launch of the Watchman logo in the other countries where Gjensidige offers insurance products. The group’s health services has been branded Hjelp24.

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