Gjensidige Forsikring ASA - Provisions in the third quarter of 2018
Gjensidige Forsikring ASA will record provisions of approximately NOK 160 million in the third quarter of 2018 related to ongoing restructuring measures, and expected claims for damaged agricultural crops in Norway.
As a result of continuing focus on improved distribution efficiency, Gjensidige will close eight branch offices in Norway, involving staff reduction and termination of property lease contracts. In addition, the Group has reduced the staff in Sweden and Denmark. Gjensidige will record a restructuring provision of approximately NOK 80 million in the third quarter of 2018. The provision will be recognised in the Corporate Center.
The hot and dry weather this summer has resulted in significant damages on agricultural crops in Norway. Damages on crops in Norway related to drought are to a large extent covered by the Norwegian Government. However, Gjensidige covers parts of the damages, beyond compensation from the Government. Due to the particular process where Government compensation is a prerequisite for forwarding claims to Gjensidige, and the fact that the deadline for applications to the Government is 31 October, there is limited visibility on the outcome for Gjensidige at this point of time. Based on current best estimate, Gjensidige will record claims provisions of NOK 80 million, related to crop damages, in the third quarter of 2018. The provision will be recognised in the Commercial segment.
Contact persons, Gjensidige Forsikring ASA:
Head of Investor Relations: Mitra Hagen Negård, tel.: +47 957 93 631
Head of Communication: Øystein Thoresen, tel.: +47 952 33 382