Insr to discontinue its Danish operation
Insr Insurance Group ASA has decided to discontinue its Danish operation.
Though operating since 2013, the size of the business in Denmark still is below critical mass. The underwriting performance has been good, but the cost levels make it challenging for the business to deliver a profit in the next strategic planning period.
In addition, the Norwegian Financial Supervisory Authority (NFSA) is of the opinion that this business should have been organized as a branch office instead of the current cross-border activity. The preliminary assessment from the NFSA is that a requirement to immediately stop writing business in Denmark will be imposed on Insr. Thus, with costs and uncertainty associated with changing from the current cross-border model, this was the right time to make the decision.
Going forward, this discontinuation of the Danish business will negatively affect the top line in the short run, but improve the bottom line result and free up solvency capital. The restated net result for Insr for the first half year of 2019 will improve from NOK -63 million to NOK -43 million.
Insr takes this opportunity to strengthen the focus on profitable growth in Norway, possibly the most benign insurance market in Europe. We continue seeing a strong interest in our value proposition and challenger role as a wholesale insurance company.
Key facts about the Danish operation first half year 2019:
Net earned premium of NOK 79 million
Net cost ratio of 48% (not including services provided from head office in Norway)
Net claims ratio of 77%
Net combined ratio of 125%.
For further information, please contact:
Anne B. Knudtzon, SVP Business Controlling & Investor Relations
T: +47 926 10 606
Partnership insurance made easy. Insr enables you to broaden your customer or member offering through white label and co-branding insurance solutions. We provide insurance risk capital and insurance expertise, whilst you maintain your customer or member relationship. Insr is regulated by the Norwegian FSA (Finanstilsynet) and has a license for all groups of non-life insurance, except for credit and guarantee insurance.
Insr Insurance Group ASA was established in 2009 and is an independent insurance group listed on the Oslo Stock Exchange, with headquarters in Oslo. The Company’s main focus is on the market for property and casualty insurance for the retail and small enterprise segments in Norway and Denmark. Insr distributes its products mainly through partners and insurance agents.