- Profit Before Tax: NOK 2,955 billion, with an insurance service result of NOK 2,200 million, up year-on-year.
- Insurance Revenue Growth: 11.7% growth, with average premiums rising over 40% in property insurance.
- Combined Ratio Improvement: 79% combined ratio, reflecting better loss and cost ratios.
- Return on Equity: 31.3% return on equity, with a solvency ratio of 182%.
- Motor Insurance Profitability: Improved in Norway, with claims frequency stabilizing and average premiums up 19%.
Operational Highlights: Improved Performance Across Segments
The company's property insurance segment saw higher profitability, benefiting from fewer weather-related events and lower claims frequency. Average premiums rose by over 40%, with customer loyalty remaining stable despite price increases. Motor insurance in Norway also showed improved profitability, with claims frequency stabilizing and average premiums increasing by 19%. Additionally, claims inflation forecasts were adjusted to 3-5% for property and 3-6% for motor, reflecting expectations of easing cost pressures in the near term.
International Growth and Sustainability Initiatives
Gjensidige's operations in Denmark and Sweden contributed positively, with Denmark benefiting from pricing measures and operational efficiency, and Sweden showing growth in both commercial and private lines. The company also emphasized its commitment to sustainability initiatives, aligning with broader industry trends. Customer retention remained strong, with an 85% loyalty rate in Denmark, though slight declines were noted in certain commercial segments.
Valuation and Forward Outlook
From a valuation perspective, Gjensidige's Price-to-Book (P/B) ratio stands at 6.59, reflecting the market's confidence in the company's strong underwriting performance and growth prospects. The combined ratio of 79% highlights robust profitability, with management guiding for a ratio below 84% for 2025 and 82% for 2026. The dividend yield of 0.35% is relatively modest, though the company's focus on reinvesting profits for growth is evident. Analyst estimates suggest a 6.6% revenue growth for next year, supported by the company's strong execution and favorable market conditions.