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Third quarter 2013 :  Solid growth in premiums and good result

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Gjensidige Forsikring ASA recorded a profit before tax expense for the quarter of NOK 1,673.3 million (1,606.9). The profit from general insurance operations measured by the underwriting result was NOK 852.5 million (780.3), and all segments saw solid growth. For the investment portfolio, the return on financial assets was 1.5 per cent (1.5), or NOK 825.7 million (828.7). The profit after tax expense was NOK 1,328.2 million (1,232.5), corresponding to NOK 2.66 (2.50) per share. The increase in the underwriting result is largely due to a lower proportion of large losses in relation to the same period last year. Gjensidige is also presenting a new capital strategy and updated financial targets today (see separate stock exchange release).

The Board proposes to distribute excess capital of NOK 3.0 billion, corresponding to NOK 6.00 per share, in extraordinary dividend in May 2014. The Gjensidige Foundation, which is Gjensidige’s largest owner, has endorsed the proposal and at the same time communicated that extraordinary dividends from Gjensidige will be managed to, among other things, support the customer dividend model and contribute to increased stability in future customer dividends.
‘I am happy that we are able to present yet another good quarterly result, characterised by efficient operations and growth in premiums, both in Norway and internationally,’ says CEO Helge Leiro Baastad.

‘At the same time, we are presenting a new, balanced capital strategy and updated financial targets. This, together with the proposed distribution of excess capital will benefit both investors and customers, says Baastad.

The year to date
The Group recorded a profit before tax expense of NOK 3,291.0 million (4,252.3) for the year to date. The profit from general insurance operations measured by the underwriting result was NOK 1,643.9 million (2,005.1). For the investment portfolio, the return on financial assets was 2.8 per cent (4.0), or NOK 1,603.2 million (2,232.0). The profit after tax expense was NOK 2,536.1 million (3,273.1), corresponding to NOK 5.07 (6.50) per share.

Satisfactory underlying profitability in the portfolio contributed to a good underwriting result at the end of the third quarter. The decline in profits from the corresponding period last year is primarily due to a more normal trend for frequency claims. Earned premiums developed positively in all segments in the first nine months of the year compared with the same period last year.

  • Earned premiums in the Private segment increased by 3.7 per cent, mainly driven by higher premiums.
  • Earned premiums in the Commercial segment increased by 2.5 per cent as a result of growth in the Norwegian and Swedish portfolios.
  • Earned premiums in the Nordic segment increased by 9.7 per cent (7.3 per cent in local currency), primarily as a result of an increase in the number of new commercial customers.
  • The Baltics recorded a growth in premiums of 15.7 per cent (13.6 per cent in local currency) as a result of an improvement in the Baltic insurance market.

The Retail Bank’s profit performance for the year to date is good, driven by volume growth, lower write-downs and efficient operations. Pension and Savings also recorded a positive profit performance in the period.

The investment portfolio’s profit performance was weaker than in the same period last year, largely because of the recognition in the first quarter of an impairment loss of NOK 611.0 million on the investment in Storebrand.

Highlights third quarter 2013 (third quarter 2012):

  • Profit before tax expense: NOK 1,673.3 million (1,606.9)
  • Profit per share: 2.66 (2.50)
  • Earned premiums: NOK 4,866.9 million (4,571.7)
  • Underwriting result: NOK 852.5 million (780.3)
  • Combined ratio: 82.5 (82.9)
  • Cost ratio: 14.8 (14.8)
  • Financial result: NOK 825.7 million (828.7)

Highlights year to date 2013 (year to date 2012):

  • Profit before tax expense: NOK 3,291.0 million (4,252.3)
  • Profit per share: 5.07 (6.50)
  • Earned premiums: NOK 13,970.6 million (13,379.1)
  • Underwriting result: NOK 1,643.9 million (2,005.1)
  • Combined ratio: 88.2 (85.0)
  • Cost ratio: 15.3 (15.3)
  • Financial result: NOK 1,603.2 million (2,232.0)

See the separate stock exchange release published today about the new capital strategy and updated financial targets.

This information is subject to a disclosure requirement pursuant to Section 5-12 of the Norwegian Securities Trading Act.

Analysts and investors:
Head of Investor Relations Janne Flessum, Tel: 47 915 14 739
Investor Relations Officer Linn Soltvedt, Tel: 47 411 10 555
Investor Relations Officer Anette Bolstad, Tel: 47 416 77 722

Press:Head of Media Relations:
Øystein Thoresen, Tel: 47 952 33 382

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