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Second quarter and first half of 2010 : Acquisition gives a boost to earned premiums

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The group reported a profit before tax for the quarter of NOK 529.7 million (NOK 1,042.1 million). The profit from general insurance operations measured by the underwriting result was NOK 288.6 million (NOK 319.1 million).

  • Profit before tax for the quarter: NOK 529.7 million (NOK 1,042.1 million for the corresponding period in 2009).
  • Profit from general insurance operations for the quarter: NOK 288.6 million (NOK 319.1 million).
  • Earned premiums increased by 9.3 per cent in the quarter, primarily as a result of the acquisition of Nykredit Forsikring and growth in the private operations in Norway.
  • Cost ratio continues to develop as planned: 17.1 per cent for the quarter (17.5).
  • Banking shows a positive trend and reports a profit for the quarter and year to date. Pension and savings operations also show a positive trend.
  • Gjensidige Forsikring has been converted from a mutual company to a public limited company.

    • The group reported a profit before tax for the quarter of NOK 529.7 million (NOK 1,042.1 million). The profit from general insurance operations measured by the underwriting result was NOK 288.6 million (NOK 319.1 million). The underwriting result for the period was affected by higher than expected large claims in the business areas Commercial Norway and the Nordic countries. The net return on financial assets for the investment portfolio was NOK 288.5 million (NOK 775.8 million), and the decrease is mainly attributed to a lower return on shares and short-term bonds.

    The group's year-to-date profit before tax was NOK 874.0 million (NOK 1,338.4 million). The profit/loss from the general insurance operations measured by the underwriting result was a loss of NOK 80.1 million (profit of NOK 416.5 million) and was particularly affected by the cold winter in the first quarter. The net return on financial assets for the investment portfolio was NOK 1,125.1 million (NOK 1,048.2 million).

    - The profit for the quarter and first half year is satisfactory, even though it has been affected by higher claims than expected in both the private and commercial markets and a drop in the value of shares. It is also positive that our most recent acquisition in Denmark and the private operations in Norway gave a solid boost to earned premiums, and that banking and the pension and savings operations are showing a positive trend, says CEO Helge Leiro Baastad.

    NOK million Q2 2010  Q2 2009   6M 2010   6M 2009 2009  
    Gross premium written  4,232 3.736  11,458  10,801 18,276
    Claims ratio general insurance  76,2 %  74,,4 % 84,1 %  76,9 %  77,1 %
    Cost ratio general insurance  17,1 % 17,5 %  16,9 % 17,7 %  17,7 %
    UW result general insurance  289   319  (80)  417 818 
    Net income from investments  295 798  1,414 1,079 2,788
    Profit/loss before tax 530 1,042 874 1,338 3,167
    Profit of the period 495 806 753 976  2,305

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

    Gjensidige Forsikring ASA is Norway’s largest general insurance company with a market share of 28.4 percent in 2009. The group also offers banking, pension and saving products and health care services in Norway and general insurance in Denmark, Sweden and the Baltic countries. The company has approximately 3,800 employees, whereof 2,900 work in Norway. Operating income in 2009 was NOK 16.7 billion, while total assets constituted NOK 75 billion.

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