14.07.2017

Solid second-quarter result

The Gjensidige Forsikring Group recorded a profit before tax for the quarter of NOK 1,502.7 million (1,709.3). The underwriting result was NOK 972.3 million (1,071.6), corresponding to a combined ratio of 83.3 (80.6). The return on financial assets was 0.9 per cent (1.0), or NOK 469.9 million (569.5). The profit after tax was NOK 1,094.5 million (1,294.8), corresponding to NOK 2.19 (2.60) per share.

-We deliver another solid result in a competitive market. Operational excellence is more key than ever, and we are putting great efforts into digitalisation and innovation to secure the best customer experiences, says CEO Helge Leiro Baastad. We are among other things proud to announce that we are now able to handle travel claims in only 1.6 seconds via our app. We are currently applying for the world record in the Guinness World Records, Baastad says.

The solid underwriting result was driven by 5.2 per cent growth in premiums combined with a somewhat higher underlying frequency claims loss ratio. Large losses including reinstatement premiums on reinsurance were at the same level as in the second quarter 2016, but below what is normally expected. Run-off gains were close to the expected level.

The Retail Bank showed a positive profit development compared to the same quarter last year, mainly driven by portfolio growth and improved margins. Pension recorded a profit at the same level as in the same period last year.  

The financial result in the quarter was positively impacted by good returns especially on convertible bonds, equities and property.

Year to date the Group recorded a strong profit before tax of NOK 2,867.6 million (3,318.2). The underwriting result was NOK 1,704.6 million (2,322.4), corresponding to a combined ratio of 85.0 (79.0). The return on financial assets was 1.9 per cent (1.6), or NOK 1,036.1 million (893.3). The profit after tax was NOK 2,204.6 million (2,403.7), corresponding to NOK 4.41 (4.82) per share.

Highlights second quarter 2017 (second quarter 2016)

  • Profit/loss before tax: NOK 1,502.7 million (1,709.3) 
  • Profit per share: NOK 2.19 (2.60) 
  • Earned premiums: NOK 5,824.7 million (5,536.8)
  • Underwriting result: NOK 972.3 million (1,071.6) 
  • Combined ratio: 83.3 (80.6) 
  • Cost ratio: 15.3 (15.6)  
  • Financial result: NOK 469.9 million (569.5) 

Highlights year to date 2017 (year to date 2016)

  • Profit/loss before tax: NOK 2,867.6 million (3,318.2)
  • Earnings per share: NOK 4.41 (4.82)
  • Earned premiums: NOK 11,372.5 million (11,050.8)
  • Underwriting result: NOK 1,704.6 million (2,322.4)
  • Combined ratio: 85.0 (79.0)
  • Cost ratio: 15.4 (11.1)
  • Financial result: NOK 1,036.1 million (893.3)

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