Q3 2024 Gjensidige Forsikring ASA Earnings Call Transcript
Key Points
- Gjensidige Forsikring ASA (GJNSY) reported a profit before tax of NOK2.215 billion, significantly higher than the same quarter last year.
- The company achieved an annualized return on equity of 23.5%, supported by strong investment returns and pension business results.
- Insurance revenue for the group increased by almost 12%, indicating strong growth momentum.
- Customer retention in Norway remains high despite significant price increases, showcasing strong customer loyalty.
- The company has a strong focus on sustainability, with innovative initiatives aimed at reducing claims costs and contributing to a safer society.
- Underlying profitability was negatively impacted by higher claims costs in Norway, particularly in the motor and property insurance segments.
- Claims frequency for property insurance is volatile, with an increase in private and commercial property claims this quarter.
- The company's combined ratio target for 2024 is not expected to be met due to significant weather-related claims and high claims levels.
- The solvency ratio decreased by 6 percentage points from Q2, partly due to increased capital requirements.
- Higher interest expenses on subordinated loans and increased amortization of intangible assets negatively impacted the financial results.
Hi, everyone, and welcome to this third quarter presentation of Gjensidige. My name is Mitra Negård, and I'm Head of Investor Relations. As always, we will start with our CEO, Geir Holmgren, who will give you the highlights of the quarter, followed by our CFO, Jostein Amdal, who will run through the numbers in further detail. And we have plenty of time for a Q&A afterwards.
Geir, please?
Thank you, Mitra, and good morning, everyone. Let us turn over to page 2 for comments on our third quarter results.
The profit before tax was NOK2.215 billion. General insurance service result was NOK1.590 billion -- sorry, the general insurance service result was NOK1.590 billion, up year-on-year also when adjusting for the one-off expenses recognized in the third quarter last year. The strong growth momentum continued this quarter with insurance revenue for the group increasing by almost 12%.
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