Insr Insurance Group third quarter 2018 results: Pricing to beat claims inflation

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Oslo,  November 13th, 2018

Insr Insurance Group ASA (OSE:INSR) announces results for the third quarter of 2018.

A presentation of the results by the Group’s senior management team will take place today at 08:30 CET - see details below.

The premium portfolio growth was strong this quarter, adding substantial wholesale volume both in Norway and Denmark. The 19% annualized growth rate year to date is well ahead of  the medium term target of low double digit growth.

The gross combined ratio was 97.7%, driven by improved loss ratio, meaning that the underlying business is profitable and delivers a gross underwriting profit of NOK 8.9 million. Costs are this quarter negatively affected by front-loaded sales costs as well as migration costs. The net result was a loss of NOK 14.3 million.

Insr is pricing to beat claims inflation, e.g.,  car insurance new sales prices have increased 5% for Q3 compared to Q2. The entire Norwegian market is currently repricing, and no material uptick in customer churn has been observed. Price increases in Nemi and wholesale partners will gradually flow into earned premium over the next 21 months.

The integration of Nemi has been completed. A highly successful migration of all private Vardia-customers took place November 3rd to 5th with a 99.95% success rate and only 10 customers failing when 79 581 insurance policies were migrated. This transfer also included migration in the central car registry and the Norwegian payment infrastructure.

In October, NOK 75 million of Tier 1 Hybrid Capital was raised on attractive terms. The issue is pending Norwegian FSA approval, expected in Q4. If the bond had already been approved, the Q3 solvency ratio would have improved to 171%. The actual solvency margin for the quarter was 147%. The additional capital increases the flexibility to grow and gradually reduce the reinsurance cession.

Espen Husstad, CEO of Insr Insurance Group, comments: “I’m very pleased to see that the IT migration activities were so successful, and I would like to express my sincere gratitude to the almost seventy people who have delivered this project in such a flawless manner.  Even more remarkably, this has in no way hampered neither growth nor our important ongoing profitability enhancing measures. With the Nemi integration completed, we can now focus on taking the company forward. ”

Financial Highlights Q3 2018
(Figures in brackets = pro forma figures for same period prior year unless otherwise stated)

  • Premiums earned for own account was NOK 195.9 million (NOK 111.3 million pro forma and NOK 67.9 million reported)

  • Net result was a loss of NOK 14.3 million (pro forma loss of NOK 2.5 million)

  • Gross loss ratio of 69.5% (72.9%)

  • Gross cost ratio of 28.2% (32.5%)

  • Combined ratio for own account was 107.5% and gross combined 97.7% (105.4%)

  • The solvency ratio is 147% compared to 162% at the end of Q2; would have been 171% if the Tier 1 Hybrid capital had already been approved


Insr expects continued organic portfolio growth for the rest of 2018. The medium term target of low double digit growth is expected to be reached already for 2018, due to the strong growth year to date. The wholesale strategy implies a more volatile topline, but the wholesale volume added this year both in Norway and Denmark is truly promising.

The quality of the insurance portfolio is expected to improve as a result of pricing and pruning measures. Cost synergies will gradually materialize in the financials after migration is completed in Q4 with corresponding operational simplifications.

By the end of Q4, the integration of Nemi will be completed. Having successfully accomplished this migration, Insr is positioned to realize the remaining 13 MNOK of communicated synergies. Running two parallel operational workflows and preparing for migration has required substantial temporary workload. This will fall away going forward.

Insr targets a gross combined ratio in the medium term of 90-92%, and aims for low double digit portfolio growth.

Insr Insurance Group ASA complies with statutory solvency requirements, reporting a solvency ratio of 147% as of September 30th, 2018. The company will optimize capital management with a sustainable solvency margin above 130% going forward.

Presentation details

Espen Husstad (CEO) and Bård Standal (CFO) will present the results on November 13th at 08:30 CET:

(1) Through participative webcast, link:

(2) In Vika Atrium Conference Centre, Munkedamsveien 45, Oslo.

The interim report and investor presentation for the third quarter of 2018 are attached to this release.

For further information, please contact:

Anne B. Knudtzon, SVP Business Controlling & Investor Relations
T: +47 926 10 606

Insr Insurance Group ASA was established in 2009 and is an independent insurance group listed on the Oslo Stock Exchange, with headquarters in Oslo. Insr has a license for all groups of non-life insurance, except for credit and guarantee insurance. The Company's main focus is on the market for property and casualty insurance for the retail and small & medium sized enterprise segments in Norway and Denmark. Insr distributes its products mainly through insurance agents and partners.

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