Gjensidige (GJF) Q1 2025 earnings summary

Executive summary

• Profit before tax reached NOK 1,790 million in Q1 2025, up 58% year-over-year, driven by strong insurance revenue growth and improved combined ratio.

• Insurance service result increased to NOK 1,314 million from NOK 715 million, with insurance revenue up 10.3%.

• Return on equity annualised at 22.2%, reflecting robust profitability and capital position.

• Effective pricing measures, high customer retention, and cost control supported profitability despite higher-than-expected large losses.

• Acquisition of Buysure expands presence in home ownership insurance, targeting NOK 500 million annual revenue.

Financial highlights

• Insurance revenue grew 10.3% year-over-year to NOK 9,994 million in Q1 2025.

• Combined ratio improved to 86.9% from 92.1% year-over-year; cost ratio decreased to 12.0%.

• Investment returns contributed NOK 513 million, with ROE at 22.2%.

• Solvency ratio at 188% (approved model), 185% as of 31 March 2025, or 184% adjusted for Buysure acquisition.

• Gross written premiums increased 10.2% for Commercial and 17.1% for Private segments year-over-year.

Outlook and guidance

• 2025 targets: combined ratio below 84%, cost ratio below 14%, return on equity above 22%, solvency ratio 140–190%.

• Claims inflation expected at 4–7% for Property and Motor over the next 12–18 months.

• Ongoing pricing and operational efficiency measures to further improve profitability.

• Organic growth expected to align with nominal GDP growth in Nordic markets.

• Board confident in achieving 2025/2026 financial targets.