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Sale of Gjensidige’s operations in the Baltics to ERGO International AG

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This release contains inside information related to Gjensidige Forsikring ASA pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

Gjensidige Forsikring ASA ("Gjensidige" or the "Company") has entered into an agreement with ERGO International AG, managing ERGO Group’s international business portfolio, for the sale of its subsidiary ADB Gjensidige ("Gjensidige Baltics").

Key information

  • Sale of 100 per cent of the shares in ADB Gjensidige
  • Agreed purchase price of EUR 80 million, representing a price to book multiple of 2.0 x for ADB Gjensidige, payable fully in cash at closing (the purchase price at closing to be adjusted for any changes in equity between signing and closing)
  • Closing is subject to, among other things, customary regulatory approvals

Gjensidige's management will host a conference call for investors and analysts tomorrow, Friday 26 July 2024, at 10:30 CET. Please find conference call details below.

“Creating a leading Nordic P&C company is a key priority for me. A strong commitment to improve profitability and growth in the Nordics has been important for me from day one. The sale of our Baltic business supports such a strategy and shows our clear Nordic market focus, which is aligned with our core competence and capabilities. The divestment of Gjensidige Baltics is a result of our strategic review. We believe that this transaction creates the best long-term value for our shareholders and enables us to focus all efforts on our core markets in the Nordics”, says CEO Geir Holmgren.  

The transaction will not have a significant impact on the Gjensidige Group’s financials and the financial targets for the Group remain unchanged. The transaction is expected to result in an accounting loss of around NOK 120 million to be recognised in Q3 2024. At the same time, the transaction is expected to positively impact the Group's solvency ratio at closing by approximately 4 percentage points, based on the approved partial internal model as at 30 June 2024. Going forward ADB Gjensidige will be classified as held for sale, and the financial accounts for the company will be presented separately in the statement of financial position.

ADB Gjensidige has 659 employees and offers general insurance products to private and commercial customers in Lithuania, Latvia and Estonia. Please refer to Gjensidige Forsikring Group’s Q2 2024 interim report for the latest results of the Baltic segment, and the Group’s Annual report for 2023 note 11 for Gjensidige Forsikring ASA for accounting information on ADB Gjensidige.  Both reports are available at www.Gjensidige.com/investor-relations/reports-and-presentations.

Conference call details:

  • Date and time: 26 July 2024, 10:30 CET
  • Tel. nos:
    - USA: +1 786 697 3501
    - Norway: +47 21 56 33 18
    - UK: +44 (0) 33 0551 0200
    - Other locations: dial one of the numbers above
  • Password: Sommer24

Replay

  • Tel. nos:
    - USA: 1 866 583 1035
    - UK: +44 (0) 20 8196 1480
    - Other locations: dial one of the numbers above
  • Confirmation code: 3209107#

This release is issued by Mitra Hagen Negård, Head of Investor Relations at Gjensidige Forsikring ASA. Date and time of publication: 14:30 CET, 25 July 2024.

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

Gjensidige is a leading Nordic insurance group listed on the Oslo Stock Exchange. We have about 4,500 employees and offer insurance products in Norway, Denmark, Sweden and the Baltic states. In Norway, we also offer pension and savings. The Group's operating income was NOK 36 billion in 2023, while total assets were NOK 148 billion.

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