Second quarter 2009: Strong result in a demanding market
The Gjensidige Forsikring Group had a profit before tax of NOK 1,042.1 million in the first quarter, compared with NOK 258.6 million in the corresponding period in 2008.
- Good underwriting result in the general insurance operations: NOK 319.1 million in the quarter (NOK 269.8 million in the same period in 2008)
- Significantly improved financial result: NOK 798.2 million (NOK 66.3 million)
- Profit before tax: NOK 1,042.1 million (NOK 258.6 million)
The Gjensidige Forsikring Group had a profit before tax of NOK 1,042.1 million in the second quarter, compared with NOK 258.6 million in the corresponding period in 2008. The improved profit was attributed to a combination of good underwriting results and significantly improved financial results. Measured by underwriting result, the profit for the general insurance operations came to NOK 319.1 million in the quarter, compared with NOK 269.8 million in the same period last year.
For the first half, the profit before tax amounted to NOK 1,338.4 million, compared with a loss of NOK 238.7 million in the corresponding period last year. The underwriting result for the first half was NOK 416.5 million, an increase over the result of NOK 347.3 million in the same period last year. The financial results for the second quarter and year-to-date are satisfactory.
“The insurance activities have yielded good results in the year’s second quarter and year-to-date. However, the Group’s income has been affected by the downturn in the international economy, and the development in the financial markets is expected to impact Gjensidige’s results for the year. A continuous focus on good customer service and the simplification of internal processes is expected to strengthen the Group’s sound position in the market,” says group CEO Helge Leiro Baastad.
| NOK million | Q2 2009 | Q2 2008 | 6M 2009 | 6M 2008 | 2008 |
| Gross premium written | 3.736 | 3.750 | 10.801 | 10.507 | 17.429 |
| Claims ratio general insurance | 74,4 % | 76,4 % | 76,9 % | 78,0 % | 77,4 % |
| Cost ratio general insurance | 17,5 % | 16,6 % | 17,7 % | 17,4 % | 17,0 % |
| UW result general insurance | 319 | 270 | 417 | 347 | 860 |
| Net income from investments | 798 | 66 | 1.079 | (432) | (259) |
| Profit/loss before tax | 1.042 | 259 | 1.338 | (239) | 307 |
| Profit after tax | 806 | 246 | 976 | 500 | 486 |
Since 1 January 2007, Gjensidige has reported its consolidated accounts in accordance with the International Financial Reporting Standards (IFRS). The financial statements, key figures and comparison figures are based on IFRS. Reference is made to a separate Transition Document that is available at www.gjensidige.com for a more detailed description of the effects of the implementation of IFRS.
Head of Communication Øystein Thoresen, Tel.: 47 95233382
Deputy CEO Tor Magne Lønnum, Tel.: 47 97164830