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Insr Insurance Group fourth quarter 2016 results: Speeding up transformation

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Oslo, 28 February 2017

Insr Insurance Group ASA (OSE:INSR) announces its results for the fourth quarter 2016.

A presentation of the results by the group’s senior management team will take place today at 09:00 CET - see details below.

Insr’s operational and capital restructuring program is ahead of plan, providing the company with strategic flexibility and accelerating the strategic transformation to a wholesale insurer. The 2018 cost target will be achieved already in 2017, one year ahead of plan. Implemented pricing measures and portfolio pruning are proving effective. In addition, the private placement conducted by the company was approved by an extraordinary general meeting on 27 February 2017. The top management team has been completed with the appointment of Ingvild Gråberg as Executive Vice President for the shared services function.

The fourth quarter 2016 results were significantly impacted by non-recurring expenses related to the restructuring process.

Espen Husstad, CEO of Insr Insurance Group, comments: “I am very pleased with the significant progress in execution of our restructuring programme during the fourth quarter. We have achieved strategic and operational flexibility and are strongly motivated to move ahead towards the new, profitable business model. ”
 

Financial Highlights Q4 2016
(Figures in brackets = same period 2015 unless otherwise stated)

  • Loss from operations was NOK 41.4 million (loss of NOK 138.1 million), negatively impacted by non-recurring items amounting to NOK 46.3 million
  • Gross premiums earned came to NOK 188.9 million (NOK 182.1 million), while premiums earned for own account amounted to NOK 58.9 million (NOK 55.1 million)
  • Gross premiums written declined to NOK 177.1 million (NOK 246.1 million), due to a planned reduction in sales activities
  • Gross loss ratio of 46.5% (73.4%). Loss ratio for own account of 33.2% (96.2%).
  • Gross cost ratio of 53.3% (71.8%). Cost ratio for own account of 126.8% (180.0%).
  • The solvency ratio at the end of the quarter was 165% (172% as of 30 September 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 Scandinavian insurance market is characterized by increasing demand for tailored solutions. Disruptive innovations challenge established business models, forcing the incumbents to assess new product offerings, business models and operations. Insr will respond to these trends by being a flexible and agile challenger, providing efficient, competitive and customized products.

The restructuring process is ahead of plan, and Insr will remain committed to complete the ongoing restructuring process in 2017. This will generate significant savings from 2017, as well as increased profitability. The controlled reduction of in-house sales capacity will continue to negatively affect premiums going into 2017. In order to mitigate this, and in line with the wholesale strategy, the company has started to ramp up external sales capacity. Ongoing portfolio pruning and maturation of the insurance portfolio are expected to improve the loss ratio throughout 2017.

Insr will renew its reinsurance program on 1 April, 2017. As previously announced, the company intends to reduce the amount of proportional reinsurance purchased.

Insr Insurance Group ASA complies with statutory solvency requirements, reporting a solvency ratio of 165% as of 31 December 2016. Following the private placement, the company forecasts the solvency 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=44476034

 
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

The interim report and investor presentation for the fourth quarter of 2016 are attached to this release.

This information is subject of the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.

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