Second quarter and first half-year 2013: Solid premium growth and satisfactory result

The Gjensidige Group recorded a profit before tax for the second quarter of NOK 1,077 million (1,218). Earned premiums from general insurance operations increased by a solid 4.3 per cent, and  the underwriting result was NOK 448 million (719). The change in the underwriting result was due to lower run-off gains (gains not related to the period) combined with a more normal underlying claims trend. The proportion of large losses was somewhat lower than for the same period last year, despite a major flood in Norway that resulted in claims of NOK 113 million. For the investment portfolio, the return on financial assets was 1.1 per cent (0.9), or NOK 605 million (494).

The Group recorded a profit before tax expense for the first half-year of NOK 1,618 million (2,645). The profit from general insurance operations measured by the underwriting result was NOK 791 million (1,225). For the investment portfolio, the return on financial assets was 1.4 per cent (2.5), or NOK 778 million (1,403). Satisfactory underlying profitability in the portfolio contributed to a good underwriting result for the first six months of the year. The reduction in the result from the corresponding period last year was primarily due to a more normal claims trend and lower run-off gains (gains not related to the period).

'The results for the first half 2013 are characterised by growth in premiums, good underlying operations and costefficiency,' says Helge Leiro Baastad, chief executive officer. 'Our attention is in particular focused on measures and investments aimed at adapting our services to customers' needs and service requirements to further strengthen our competitiveness,' Baastad says.
   
Highlights for the segments in the first half-year
Earned premiums in the Private segment increased by 3.2 per cent, mainly driven by higher premiums. The customer base was stable. However, an increase in claims expenses contributed to a somewhat weaker underwriting result than in the same period last year. Earned premiums in the Commercial segment increased by 1.7 per cent in relation to last year as a result of higher premiums and growth in both the Norwegian and Swedish portfolios. Higher claims expenses contributed to a slight reduction in the underwriting result. Earned premiums developed positively in the Nordic segment, with premiums growing by 7.6 per cent, primarily as a result of an increased number of new customers. The somewhat weaker underwriting result was largely due to lower run-off gains (gains not related to the period). The Baltics delivered a positive profit performance as a result of an improvement in the Baltic insurance market, which also led to an increase in premiums of 14.5 per cent. The Retail Bank's profit performance was strong in the first half-year, driven by volume growth, lower write-downs and efficient operations. Pensions and Savings also delivered a positive profit performance.

Highlights second quarter 2013 (second quarter 2012):

• Profit/(loss) before tax expense: NOK 1,077 million (1,218)
• Profit per share: NOK 1.78 (1.90)
• Earned premiums: NOK 4,647 million (4,454)
• Underwriting result: NOK 448 million (719)
• Combined ratio: 90.3 (83.9)
• Cost ratio: 15.3 (15.4)
• Financial result: NOK 605 million (494)

Highlights first half-year 2013 (first half-year 2012):

• Profit/(loss) before tax expense: NOK 1,618 million (2,645)
• Profit per share: NOK 2.42 (4.08)
• Earned premiums: NOK 9,104 million (8,807)
• Underwriting result: NOK 791 million (1,225)
• Combined ratio: 91.3 (86.1)
• Cost ratio: 15.5 (15.6)
• Financial result: NOK 778 million (1,403)

(Figures in brackets indicate the amount or percentage for the corresponding period the year before).

This information is subject to disclosure under the Norwegian Securities Act section §5-12.

Head of Information Øystein Thoresen. Tel: 47 952 33 382
IR director Janne Merete Flessum Tel:  47 915 14 739
IR officer Linn Therese Soltvedt, Tlf: 47 411 10 555

Gjensidige is a leading Nordic insurance group built by customers, for customers. The Group has been listed on the Oslo Stock Exchange since 2010. For nearly 200 years, we have worked passionately to secure the lives, health and assets of our customers. We have about 3,100 employees and offer insurance products in Norway, Denmark, Sweden and the Baltic states. In Norway, we also offer banking, pension and savings. Operating income was NOK 19.5 billion in 2012, while total assets was NOK 94.2 billion.