Strong second quarter profit

This release contains inside information related to Gjensidige Forsikring ASA pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

Gjensidige generated a profit after tax of NOK 1,044 million in the second quarter. The insurance service result was solid, reflecting strong revenue growth and solid operations, although higher claims frequency for several products in Norway affected profitability. Gjensidige has strengthened pricing measures and will adjust terms and conditions to ensure that the increase in claims frequency is mitigated over time. Investments generated negative returns due to higher interest rates. The outlook for Gjensidige’s insurance service results remains good.

Gjensidige Forsikring Group recorded a profit before tax of NOK 1,333.9 million (491.3) for the quarter. The profit after tax expense was NOK 1,043.5 million (308.7) and the corresponding earnings per share were NOK 2.04 (0.60). The profit from general insurance operations measured by the insurance service result was NOK 1,508.6 million (1,667.1), corresponding to a combined ratio of 83.2 (79.0).

- We are pleased with the strong results this quarter and our sustained growth momentum. We are closely monitoring the recent increase in claims frequency in Norway. We have strengthened pricing measures and will adjust terms and conditions to ensure that the increase in claims frequency is mitigated over time, says CEO Geir Holmgren. 

-The outlook for our business is good and I am confident that we are on the best possible trajectory to continue our solid performance and deliver strong insurance results, Holmgren says. 

Insurance revenue from general insurance increased by 12.6 per cent to NOK 8,959.5 million (7,955.3) in the quarter, or by 8.1 per cent measured in local currency. This was due to solid renewals, effective and differentiated pricing measures and volume growth. The insurance service result from general insurance operations decreased by 9.5 per cent, due to higher large losses and an increase in the underlying frequency loss ratio driven mainly by higher claims frequency for motor and property insurance in Norway. The cost ratio was unchanged.

The Pension segment generated a profit before tax of minus NOK 3.0 million (minus 72.2), reflecting growth in the business and a higher interest rate level.

The financial result for the quarter was minus NOK 199.3 million (minus 1,611.7), which corresponds to a return on total assets of minus 0.3 per cent (minus 2.8). The result for the quarter was negatively impacted by rising interest rates, while the rise in stock markets and a running yield in the fixed income portfolio contributed positively to returns.

Year-to-date the Group recorded a profit before tax of NOK 2,825.3 million (1,528.6). The profit from general insurance operations measured by the insurance service result was NOK 2,623.4 million (2,570.8), corresponding to a combined ratio of 85.0 (83.6). The profit after tax expense was NOK 2,190.5 million (1,263.4). Earnings per share amounted to NOK 4.30 (2.49). The increase in the insurance service result was driven by 11.5 per cent growth in insurance revenue, higher run-off gains and a positive discounting effect, partly offset by a higher underlying frequency loss ratio and higher large losses. Insurance revenue rose by 7.7 per cent measured in local currency. The increase in the underlying frequency loss ratio was mainly driven by Norway, reflecting a higher frequency of claims for motor and property insurance.

The Pension segment recorded a result before tax of minus NOK 11.5 million (78.0), mainly driven by a negative net finance income.

The financial result for the period was NOK 594.8 million (minus 2,740.2), which corresponds to a return on total assets of 1.0 per cent (minus 4.6). Most asset classes contributed positively to the results. A high running yield in the fixed income portfolio, rising equity markets and private equity generated positive returns. Rising interest rates had a negative impact on the period’s results.

Highlights second quarter 2023 (second quarter 2022)

• Profit or loss before tax: NOK 1,333.9 million (491.3)
• Earnings per share: NOK 2.04 (0.60)
• Insurance revenue: NOK 8,959.5 million (7,955.3)
• Insurance service result: NOK 1,508.6 million (1,667.1)
• Combined ratio: 83.2 % (79.0 %)
• Cost ratio: 13.6 % (13.6 %)
• Financial result: NOK minus 199.3 million (minus 1,611.7)

Highlights year-to-date 2023 (2022)

• Profit or loss before tax: NOK 2,825.3 million (1,528.6)
• Earnings per share: NOK 4.30 (2.49)
• Insurance revenue: NOK 17,491.3 million (15,688.5)
• Insurance service result: NOK 2,623.4 million (2,570.8)
• Combined ratio: 85.0 % (83.6 %)
• Cost ratio: 13.5 % (13.5 %)

• Financial result: NOK 594.8 million (minus 2,740.2)

This release contains alternative performance measures (APMs). APMs are described at  www.gjensidige.com/group/reports in a document named APMs Gjensidige Forsikring Group Q2 2023.

This release is issued by Jon Aniksdal, Communication Manager at Gjensidige Forsikring ASA.

Date and time of publication: 07.00 CET 14 July 2023

Contact persons, Gjensidige Forsikring ASA:
Head of Communication, Øystein Thoresen. Tel: 47 952 33 382
Head of Investor Relations Mitra Hagen Negård. Tel:  47 957 93 631

Gjensidige is a leading Nordic insurance group listed on the Oslo Stock Exchange. We have about 4,200 employees and offer insurance products in Norway, Denmark, Sweden and the Baltic states. In Norway, we also offer pension and savings. The Group's operating income was NOK 34 billion in 2022, while total assets were NOK 135 billion.