Third quarter 2007: Good results – solid premium growth

• Profit before tax: NOK 843 million (NOK 981 million in 2006)
• Combined ratio for general insurance operations in third quarter: 88.5% (90.0%)
• Positive development in general insurance operations in the quarter
• Return on investment: 1.0 per cent (1.6)
• Work on stock exchange listing continues
• Strongest brand in the insurance industry

Gjensidige Insurance Group reported consolidated profit before tax of NOK 843 million in the third quarter, compared with NOK 981 million for the corresponding period last year. The result reflects somewhat lower return on investment and start-up costs related to the new product areas banking and pension and savings. The return on investment must be regarded as satisfactory in view of the market turbulence. The profit before tax was NOK 2,375 million for nine months ending September 30, an improvement of NOK 143 million compared with the corresponding period last year.

The general insurance operations are experiencing solid premium growth. Earned premium net of reinsurance, including new businesses, increased by 13 per cent in the third quarter in relation to the same period last year. “After a weak start marked by a number of large and medium-large claims, profitability has improved throughout the year. If the large claim situation remains normal, the profitability of the general insurance operations for the year will end up at a satisfactory level”, says CEO Helge Leiro Baastad.

Gjensidige closer to stock exchange listing. The General Meeting of Gjensidige has adopted a resolution that the company shall continue to seek the listing of an equity instrument on the Oslo Stock Exchange. The aim of the subsequent process is for Gjensidige to apply for a listing on the Oslo Stock Exchange by the end of 2007.

Strong brand. The customers’ awareness of Gjensidige has improved over the last year. In a new brand survey conducted by TNS Gallup 36 per cent of the household customers mention Gjensidige first when they are asked to name an insurance company. This is a clear improvement over corresponding surveys at the same time last year. The watchman, which is the company’s logo, and the slogan “Time passes, Gjensidige endures” celebrate their 75th anniversary this year.

Contact:
Chief Information Officer Øystein Thoresen. Phone: 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 therefore 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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Key Financial Figures

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