Second quarter 2008: Continued sound insurance profits

The Gjensidige Insurance Group reported a result before tax of NOK 259 million in the second quarter, compared with NOK 1,031 million in the same period of the previous year. The decline is mainly due to the drop in net financial income with negative performance in property investments and a further write-down of the investment in Storebrand ASA.

• Growth in earned premiums of 6.5 per cent in the quarter for general insurance
• Underwriting result: NOK 270 million (NOK 101 million in second quarter 2007)
• Profit before tax: NOK 259 million (NOK 1,031 million)
• Combined ratio in general insurance operations: 92.9 (97.2)
• Net financial income: NOK 73 million (NOK 1,020 million)New organisation of the Group introduced on 1 June to further improve and increase customer orientation of sales and claims settlements
• Gjensidige Pensjon og Sparing was largest in new sales of group defined-contribution pensions in the first quarter
• Important distribution agreement in Denmark concluded

The sound underwriting result from the general insurance operations of NOK 270 million is due to an improvement in both claims incurred and administrative expenses.

The operations in Denmark have entered into a five-year strategic distribution agreement with the Danish FDB Forsikring concerning the sale of insurance to FDB's 1.6 million members, which mainly includes members of Coop Denmark. The agreement entails a considerable potential for development of the private operations in Denmark, which are organised in the company Fair Forsikring.

In June, Gjensidige entered into an agreement to sell its ownership interest in approximately 20 per cent of the shares in Lindorff. Provisional calculations give a gain in excess of NOK 900 million. As the sale is contingent upon approval from the European Commission, the gain will not be recognised in the accounts before the third quarter. Approval of the sale was given in July.

Contacts:
Deputy CEO Tor Magne Lønnum. Tel.: +47 97164830
Head of Communication Øystein Thoresen. Tel.: +47 95233382

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

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