Gjensidige (GJF) Q4 2021 (Q&A) earnings summary

Executive summary

• Q4 pre-tax profit was NOK 2,850.1m and underwriting result NOK 1,347m; premiums grew 8.7% reported and 11.1% adjusted for currency effects.

• FY 2021 pre-tax profit reached a record NOK 8,799.4m, with underwriting result of NOK 5,718m and combined ratio of 80.4%.

• Norway and Denmark led underwriting performance; Swedish results remained volatile and Baltic performance unsatisfactory.

Financial highlights

• Q4 financial result was NOK 1,497.4m, including NOK 1.2bn in property appreciation linked to Oslo Areal; FY financial result was NOK 3,063.1m.

• Q4 profit after tax was NOK 2,486.3m and EPS NOK 4.97; FY profit after tax was NOK 7,141.1m and EPS NOK 14.28.

• General Insurance earned premiums were NOK 7,471.6m in Q4 and NOK 29,136.4m for FY 2021.

• Q4 underwriting result rose to NOK 1,347m from NOK 1,162m YoY; FY result increased to NOK 5,718m from NOK 5,076m.

Outlook and guidance

• FY 2025 targets: combined ratio below 85%, cost ratio below 14%, after-tax ROE above 19%, and solvency margin of 150%–200%.

• Expected annual run-off gains of ~NOK 1bn through 2022; annual large losses expected at NOK 1.3bn.

• Near-term growth expected to exceed nominal GDP growth, with profitability prioritized; pricing actions planned to address claims inflation.

• Strong January 1 commercial renewals and high 2022 growth were anticipated; management gave no specific growth target.

• Core-system rollout planned for Denmark commercial in 2022, Sweden launch in 2023, and Norway later, potentially around 2025.