First quarter 2017 Strong first-quarter result

The Gjensidige Forsikring Group delivered a strong profit before tax of NOK 1,365.0 million (1,608.9) in the quarter. The profit from general insurance operations measured by the underwriting result was NOK 732.2 million (1,250.7), corresponding to a combined ratio of 86.8 (77.3). Adjusted for a one-off related to pension payments of NOK 476.6 million, the underwriting result in the first quarter 2016 was a record-strong NOK 774.1 million, corresponding to a combined ratio of 86.0. The underwriting result in the first quarter 2017 was only slightly lower.
-We are very pleased with a good start to the year. The results are driven by satisfactory premium development, good cost control and efficient operations, says CEO Helge Leiro Baastad. Customer orientation and investments in digital customer solutions will continue to strengthen the company’s competiveness going forward, Baastad says.   

The return on financial assets was 1.0 per cent (0.6), or NOK 566.2 million (323.8). The profit after tax was NOK 1,110.1 million (1,108.9), corresponding to NOK 2.22 (2.22) per share.
The underwriting result was positively influenced by premium growth of 0.6 per cent, leading to earned premiums totaling NOK 5.5 billion (5.5) in the quarter. Growth, adjusted for currency effects was 2.1 per cent. The result also reflects continued good customer and risk selection and risk pricing. Further, the result was positively affected by a benign weather situation and a lower level of large losses than in the same period last year. Run-off gains were at the expected run-rate, while large losses were lower than normally expected.

The Retail Bank’s profit performance improved, largely driven by portfolio growth and an improved interest margin. The Pension segment’s profit performance developed positively, mainly due to higher business volume. 

The return on financial assets was satisfactory, and higher than in the same period last year. This was largely due to increased contribution from equities, convertible bonds and property.

Highlights first quarter 2017 (first quarter 2016):

  • Profit/loss before tax expense: NOK 1,365.0 million (1,608.9)
  • Earnings per share: NOK 2.22 (2.22)
  • Earned premiums: NOK 5,547.7 million (5,514.0)
  • Underwriting result: NOK 732.2 million (1,250.7)
  • Combined ratio: 86.8 (77.3)
  • Cost ratio: 15.5 (6.6)
  • Financial result: NOK 566.2 million (323.8)

This information is subject to disclosure under the Norwegian Securities Act section §5-12.