This release contains inside information related to Gjensidige Forsikring ASA
pursuant to the EUMarket Abuse Regulation and is subject to the disclosure
requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
Effective pricing measures and a favourable claims development resulted in
significant improvement in the insurance service result. Results from the
investment portfolios and the pension business contributed to an annualised
return on equity of 31.3 per cent. Gjensidige's capital position is strong.
Highlights second quarter 2025 (second quarter 2025)
. Profit or loss before tax expense: NOK 2,955.4 million (1,794.7)
. Earnings per share: NOK 4.53 (2.72)
. Insurance revenue: NOK 10,493.2 million (9,391.6)
. Insurance service result: NOK 2,200.5 million (1,411.5)
. Combined ratio: 79.0 % (85.0%)
. Cost ratio: 12.0 % (12.5%)
. Financial result: NOK 1,102.0 million (506.5)
Highlights year to date 2025 (2024)
. Profit or loss before tax expense: NOK 4,674.1 million (2,880.6)
. Earnings per share: NOK 7.13 (4.31)
. Insurance revenue: NOK 20,487.1 million (18,451.7)
. Insurance service result: NOK 3,514.1 million (2,126.6)
. Combined ratio: 82.8 % (88.5%)
. Cost ratio: 12.0 % (12.6%)
. Financial result: NOK 1,614.6 million (944.0)
Gjensidige Forsikring Group recorded a profit before tax expense of NOK 2,955.4
million (1,794.7) for the quarter. The profit after tax expense from continuing
operations was NOK 2,244.9 million (1,358.9) and the corresponding earnings per
share were NOK 4.42 (2.65). The profit from general insurance operations
measured by the insurance service result was NOK 2,200.5 million (1,411.5),
corresponding to a combined ratio of 79.0 (85.0).
- I am proud of the dedication and excellent competence shown by our employees
to improve the results and maintain our competitive position, says CEO Geir
Holmgren.
-I am very happy that we share our profits with the customers, who received NOK
2.8 billion as customer dividend from Gjensidigestiftelsen in May. The dividend
equals 11 percent of the premiums customers paid last year, Holmgren says.
General insurance
Insurance revenue increased by 11.7 per cent to NOK 10,493.2 million (9,391.6)
in the quarter, or by 11.1 per cent measured in local currency. This was mainly
driven by pricing measures across the private and commercial portfolios in all
geographies, solid renewals in the commercial portfolios and higher volumes in
Denmark and Sweden.
The insurance service result was NOK 2,200.5 million (1,411.5) reflecting higher
insurance revenue and an improved loss ratio.
The loss ratio decreased by 5.4 percentage points, reflecting a 10.0 percentage
point improvement in the underlying frequency loss ratio. The insurance service
result in the second quarter last year included a positive impact of NOK 393.7
million from a change in the risk adjustment. Higher large losses and lower run
-off gains also contributed negatively to the year-on-year comparison.
Adjusted for the adverse development of claims that occurred in the first
quarter of 2024 but were recognised in the second quarter, and the change in
risk adjustment mentioned above, the loss ratio improved by 7.1 percentage
points, while the underlying frequency loss ratio improved by 7.5 percentage
points. All segments showed an improvement, with the highest contribution from
Private and Commercial in Norway.
The cost ratio improved by 0.5 percentage points, reflecting revenue growth.
Pension
The pension segment recorded a profit before tax expense of NOK 200.8 million
(185.9), mainly driven by a higher net finance income.
Financial result
The financial result for the quarter was NOK 1,102.0 million (506.5),
corresponding to a return on total assets of 1.8 per cent (0.8). The result for
the quarter reflects positive return from all asset classes, driven by running
yields, lower credit spreads and positive equity and real estate markets.
Other items
Other items amounted to minus NOK 145.3 million (minus 133.2). The decrease was
driven by profits from natural perils insurance transferred to the natural
perils pool, an increase in amortisation of intangible assets and higher
interest expenses. Improved results for the mobility services contributed
positively.
The profit from discontinued operations was NOK 53.0 million (35.0), mainly
driven by an increased insurance service result and higher net income from
investments. The insurance service result from discontinued operations was NOK
37.5 million (22.1), reflecting an improved underlying frequency loss ratio and
cost efficiency.
Year-to-date development
The Group recorded a profit before tax expense of NOK 4,674.1 million (2,880.6)
for the year to date. The profit after tax expense from continuing operations
was NOK 3,543.4 million (2,189.4) and the corresponding earnings per share
amounted to NOK 6.95 (4.26).
The profit from general insurance operations measured by the insurance service
result was NOK 3,514.1 million (2,126.6), corresponding to a combined ratio of
82.8 per cent (88.5), reflecting higher insurance revenues and an improved loss
ratio. The loss ratio improved by 5.0 percentage points, reflecting a 7.4
percentage point improvement in the underlying frequency loss ratio and higher
run-off gains. The positive impact from a change in risk adjustment in the
second quarter of 2024 and higher large losses contributed negatively to the
year-on-year comparison. Adjusted for weather-related claims in the first
quarter of 2024 and the change in risk adjustment mentioned above, the loss
ratio improved by 4.0 percentage points while the underlying frequency loss
ratio improved by 6.1 percentage points. The cost ratio improved by 0.6
percentage points reflecting revenue growth.
The pension segment recorded a result before tax NOK 278.2 million (337.5),
driven by a weaker insurance service result, somewhat offset by a higher net
finance income.
The financial result for the period was NOK 1,614.6 million (944.0), which
corresponds to a return on total assets of 2.5 per cent (1.5). The result was
positively impacted by high running yields and positive returns from credit
spreads, equities and real estate.
Other items amounted to minus 258.9 million (minus 282.2), with the improvement
primarily reflecting higher results for the mobility services. Higher interest
expenses and increased amortisation of intangible assets contributed negatively.
This release contains alternative performance measures (APMs). APMs are
described at www.gjensidige.com/reporting
This release is issued by Christian Haraldsen, media relations officer at
Gjensidige Forsikring ASA.
Date and time of publication: 07:00 CET, 11 July 2025
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 approximately 4,700 full time employees and offer insurance
products in Norway, Denmark, Sweden and the Baltic states. In Norway, we also
provide pension and savings solutions. In 2024, the Group's insurance revenue
was NOK 39 billion, and total assets amounted to NOK 171 billion. For more
information, visit:www.gjensidige.com