Gjensidige (GJF) Q3 2024 earnings summary

Executive summary

• Profit before tax for Q3 2024 reached NOK 2.25 billion, more than doubling year-over-year, driven by strong insurance service results, pension business, and investment returns.

• Insurance revenue grew by 11.7%, with strong momentum in both private and commercial segments across Norway and Denmark, supported by significant pricing measures.

• Underlying profitability was pressured by higher claims costs in Norway, particularly in property and motor insurance, despite high customer retention.

• Combined ratio increased to 83.9% from 87.4% year-over-year, reflecting higher loss ratios.

• Sale of Baltic operations (ADB Gjensidige) agreed, with a NOK 123 million goodwill write-down recognized.

Financial highlights

• Insurance service result rose to NOK 1.59 billion, up from NOK 1.112 billion year-over-year.

• Investment returns contributed NOK 1.307 billion, supporting an annualized ROE of 23.5%.

• Group insurance revenues increased by 10.6%–11.7% in local currency.

• Loss ratio increased to 72.1% from 70.8% year-over-year, mainly due to higher claims frequency and inflation.

• Cost ratio improved to 11.8%, reflecting continued cost discipline and efficiency gains.

Outlook and guidance

• Combined ratio target for 2024 will not be met due to high claims; all 2025 and 2026 financial targets are maintained.

• Ongoing pricing and deductible measures expected to improve profitability over time.

• Claims inflation estimate for the next 12–18 months revised down to 4%-6%.

• Solvency ratio at 164%, supporting dividend policy and growth ambitions.

• Focus remains on profitability over growth, with organic growth expected to align with nominal GDP growth in Nordic markets.