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 generated a profit after tax of NOK 827 million during the third
quarter, slightly down year-on-year despite significant claims related to severe
weather events and one-off expenses. The strong momentum in revenue growth
continued, while underlying profitability decreased. Gjensidige will continue to
implement targeted measures to improve underlying profitability. The severe
weather events and one-off expenses in the third quarter impact delivery on the
Group's financial targets for 2023. The solid capital position and strong
underlying profitability secures the ability to pay out dividends according to
the dividend policy.
Gjensidige Forsikring Group recorded a profit before tax of NOK 1,119.6 million
(1,114.8) for the quarter. The profit after tax was NOK 827.4 million (858.8)
and the corresponding earnings per share were NOK 1.63 (1.69). The profit from
general insurance operations measured by the insurance service result was NOK
1,111.2 million (1,864.4), corresponding to a combined ratio of 88.0 (77.3).
- The extreme weather events put our organisation to the test. I am very proud
of how we took care of our customers when it mattered the most. Our competent
and dedicated teams immediately reached out to our customers and made a great
contribution to handle the large number of inquiries, says CEO Geir Holmgren.
- Our results were impacted by weather and one-offs this quarter. The strong
momentum in revenue growth continued and we are looking forward to further
improve our operations. We are handling inflation well and we have strong
measures in place to mitigate the effects of elevated claims frequency for motor
in Norway, Holmgren says.
Insurance revenue from general insurance increased by 13.1 per cent to NOK
9,276.2 million (8,204.4) in the quarter, or by 9.5 per cent measured in local
currency. This was due to solid renewals, effective and differentiated pricing
measures and volume growth.
The insurance service result from general insurance operations was impacted by
the weather-related claims in the third quarter, as well as one-off expenses.
Adjusted for this, it increased by 11.5 per cent.
The increase in operating expenses was mainly driven by one-offs amounting to
NOK 409.0 million, consisting of a NOK 310.0 million write-down of the
accounting value of the new core IT-system in Denmark, NOK 49.0 million in
provisions related to the announced restructuring of the Group and expenses of
NOK 50.0 million related to the renewal of a distribution agreement in Denmark.
Claims related to the storm 'Hans' in Scandinavia and the Baltics, as well as
the torrential rain in Oslo and the surrounding regions during the quarter had a
significant impact on large losses. Drought and the torrential rain also
resulted in damages on crops in Norway during the quarter. The Group recognised
total claims cost of NOK 559.2 million related to these events, net of
reinsurance and including reinstatement premiums for claims related to "Hans".
The underlying frequency loss ratio increased by 1.6 percentage points. The
development was primarily driven by Commercial and Private in Norway. The cost
ratio adjusted for the one-offs, increased by 0.1 percentage point.
The Pension segment generated a profit before tax of NOK 3.9 million (minus
83.0), reflecting increased financial income, actuarial changes with a net
negative effect of NOK 3.7 million as well as a write down of the core IT system
of NOK 61.6 million.
The financial result for the quarter was NOK 119.2 million (minus 744.5), which
corresponds to a return on total assets of 0.2 per cent (minus 1.3). The result
for the quarter was negatively impacted by rising interest rates and negative
stock markets, while a high running yield in the fixed income portfolio
contributed positively to returns.
Year-to-date the Group recorded a profit before tax of NOK 3,944.9 million
(2,643.4). The profit from general insurance operations measured by the
insurance service result was NOK 3,734.5 million (4,435.2), corresponding to a
combined ratio of 86.0 (81.4). The profit after tax was NOK 3,017.9 million
(2,122.2). Earnings per share amounted to NOK 5.93 (4.18).
The decrease in the insurance service result was driven by higher operating
expenses and large losses, in addition to an increase in the underlying
frequency loss ratio. Higher run-off gains and discounting effect contributed
positively. Insurance revenue rose by 8.3 per cent measured in local currency.
The increase in the underlying frequency loss ratio was mainly driven by
difficult weather conditions during the first quarter and the increased claims
frequency in Norway during second and third quarter.
The Pension segment recorded a result before tax of minus NOK 7.6 million (minus
5.0), reflecting an improvement in the insurance servicer result which was more
than offset by the write-down in the third quarter and lower net finance income.
The financial result for the period was NOK 714.0 million (minus 3,484.7), which
corresponds to a return on total assets of 1.2 per cent (minus 5.9). Most asset
classes contributed positively. A high running yield in the fixed income
portfolio, rising equity markets and PE generated positive returns. Higher
interest rates had a negative impact on the portfolio.
Highlights third quarter 2023 (third quarter 2022)
· Profit or loss before tax: NOK 1,119.6 million (1,114.8)
· Earnings per share: NOK 1.63 (1.69)
· Insurance revenue: NOK 9,276.2 million (8,204.4)
· Insurance service result: NOK 1,111.2 million (1,864.4)
· Combined ratio: 88.0 % (77.3%)
· Cost ratio: 17.0 % (12.5%)
· Financial result: NOK 119.2 million (-744.5)
Highlights year-to-date 2023 (2022)
· Profit or loss before tax: NOK 3,944.9 million (2,643.4)
· Earnings per share: NOK 5.93 (4.18)
· Insurance revenue: NOK 26,767.4 million (23,892.9)
· Insurance service result: NOK 3,734.5 million (4,435.2)
· Combined ratio: 86.0 % (81.4%)
· Cost ratio: 14.7 % (13.2%)
· Financial result: NOK 714.0 million (-3,484.7)
This release contains alternative performance measures (APMs). APMs are
described at
www.gjensidige.no/reporting (https://eur02.safelinks.protection.outlook.com/?url
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known%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6
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n0%3D%7C1000&sdata=olrVzdkz1RuEnDJKcnZetjS0SXMcHDTktI6Bqwqoahg%3D&reserved=0) in
a document named APMs Alternative Performance Measures.
This release is issued by Jon Aniksdal, Communication Manager at Gjensidige
Forsikring ASA.
Date and time of publication: 07:00 CET, 20 October 2023
Contact persons, Gjensidige Forsikring ASA:
Head of Communication, Øystein Thoresen. Tel: +47 952 33 382
Head of Investor Relations Mitra Hagen Negård. Tel: +47 957 93 631
Gjensidige is a leading Nordic insurance group listed on the Oslo Stock
Exchange. We have about 4,200 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 34 billion in 2022, while total
assets were NOK 135 billion.