Gjensidige (GJF) Q4 2024 earnings summary

Executive summary

• Profit before tax for Q4 was NOK 1,605 million, with profit after tax at NOK 1,203 million, and full-year pre-tax profit reached NOK 6,823 million, driven by strong revenue growth and improved profitability.

• Return on equity for 2024 was 22.7%, with all annual financial targets met except the combined ratio.

• Board proposed a total dividend of NOK 10.00 per share (NOK 5 billion), including a special dividend, with a payout ratio of 97%.

• Combined ratio improved to 83.3% in Q4 and 86.0% for the year, supported by efficiency in distribution and claims handling.

• Strong solvency ratio at 185% at year-end 2024, reflecting robust capital and financial position.

Financial highlights

• Insurance revenue for 2024 was NOK 38,359.4 million, up 11.6% year-over-year, with strong growth in Norway and Denmark.

• Insurance service result for 2024 was NOK 5,386.6 million, up from NOK 4,460.6 million in 2023.

• Investment returns contributed NOK 208 million in Q4 and NOK 2,458.3 million for the year, with a return on total assets of 3.9%.

• Cost ratio reduced to 12.2% in Q4 and 12.3% for the year, below targets.

• Customer retention in Norway at 91%; digital claims reporting at 75%.

Outlook and guidance

• Combined ratio targets set at below 84% for 2025 and below 82% for 2026; cost ratio targets below 14% and 13% respectively.

• Return on equity targets above 22% for 2025 and above 24% for 2026; solvency ratio target 140-190%.

• Ongoing pricing and efficiency measures, with claims inflation for property expected at 4%-6% and for motor at 4%-7% over the next 12-18 months.

• Focus on profitable growth, digitalization, and sustainability to deliver on financial targets.

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