Insr Insurance Group first quarter 2017 results: Turnaround is taking hold
Oslo, 10 May 2017
Insr Insurance Group ASA (OSE:INSR) announces its results for the first quarter 2017.
A presentation of the results by the group’s senior management team will take place today at 09:00 CET - see details below.
Insr is reaping the benefits of the major turnaround program initiated in 2016, with results for the first quarter reflecting significant operational improvements. Cost-cutting program completed and effects from pricing and pruning measures continued during the quarter, providing a strong base for future profitability.
Enabled by added funds raised, Insr renegotiated the reinsurance agreements at favourable terms, reducing the share of reinsurance from 75% to 50%, effective from 1 April. Efforts to build a new business model directed towards the wholesale insurance segment continued during the quarter. Early response on marketing activities are encouraging, with a new large customer having signed on this quarter.
Espen Husstad, CEO of Insr Insurance Group, comments: “I am very pleased to see that the benefits from our restructuring initiatives have started to materialize in our results. Having completed the first step in our strategic roadmap, we are now moving into the next stage, aiming at delivering disciplined profitable growth. Positive response to our initial marketing efforts in the wholesale segment convince us that we are on the right path to achieve our goals.”
Financial Highlights Q1 2017
(Figures in brackets = same period 2016 unless otherwise stated)
- Premiums earned for own account was NOK 37.0 million (NOK 51.2 million)
- Loss from operations was NOK 21.6 million (loss of NOK 53.0 million), negatively impacted by non-recurring expenses of NOK 6.5 million
- Investment portfolio amounted to NOK 239.9 million (NOK 191.5 million)
- Net financial income came to NOK 0.9 million (NOK 0.6 million)
- Loss ratio for own account of 90.1% (104.0%)
- Cost ratio for own account of 66.3% (89.0%).
- The solvency ratio at the end of the quarter was 239% (159% as of 31 December 2016)
Outlook
The current macroeconomic conditions in Norway and Denmark give reason to expect continued stable demand for general insurance products in the short and medium term.
The restructuring process is ahead of plan, and Insr will remain committed to complete the process in 2017, including measures to strengthen organizational capacity and capabilities. The cost-cutting program is completed. Effects from implemented measures reinforce confidence in the cost target being achieved in 2017, one year ahead of plan. Pruning and pricing actions enables continued improvement in the portfolio through 2017.
The implementation of the wholesale strategy is on track and continues with full force, setting the scene for portfolio growth towards year-end 2017. Positive feedback from the market confirms Insr’s differentiated and attractive offering. Highly qualified staff with strong competence and expertise are gradually being onboarded.
Insr Insurance Group ASA complies with statutory solvency requirements, reporting a solvency ratio of 239% as of 31 March 2017. The company forecasts the ratio to stay above 200% through 2017.
Presentation details
Espen Husstad (CEO) and Bård Standal (CFO) will present the results today at 09:00 CET via webcast. Participation will be possible by using the following link:
http://webtv.hegnar.no/presentation.php?webcastId=52723329
The interim report and investor presentation for the first quarter of 2017 are attached to this release.
For further information, please contact:
Bård Standal, Chief Financial Officer,
Insr Insurance Group ASA
Phone: +47 415 21 490
E-mail: bard.standal@insr.io
This information is subject of the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.
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