Gjensidige Forsikring Asa · OSL:GJF
Gjensidige Forsikring Asa — Q4 2024 Earnings Presentation
53 slides from Gjensidige Forsikring Asa's earnings presentation, Jan 24, 2025
Slide 1: Q4 2024 Interim presentation
Q4 2024 Interim presentation January 2025
Slide 2: Strong revenue growth and significantly higher profitability in the fourth quarter
Quarterly update Strong revenue growth and significantly higher profitability in the fourth quarter • Pre-tax profit NOK 1,605m Combined ratio % • Insurance service result NOK 1,670m 91.9 83.3 12.6 • 11.6% insurance revenue growth 12.2 • Effective pricing measures 79.3 71.1 • Improved loss ratio • G
Slide 3: FY 2024: Strong revenue growth, combined ratio impacted by high motor claims cost
Quarterly update FY 2024: Strong revenue growth, combined ratio impacted by high claims cost for motor in Norway • Pre-tax profit NOK 6,823m Metric Delivered Target 2024 2024 • Insurance service result NOK 5,387m • 11.0% growth in insurance revenue Combined ratio 86.0% <84% • Efficient and robust op
Slide 4: Dividend proposal: Regular NOK 9.00 per share and special NOK 1.00 per share
Quarterly update Dividend proposal: Regular NOK 9.00 per share and special NOK 1.00 per share Strong track record of generating attractive …supported by a solid capital position shareholder returns… 96% 72% 75% 54% 90% 106% 88% NOK bn Solvency ratio 15 0 185% -2 20 6.40 -4 10.1 10 5.00 1.00 -6 10 8.
Slide 5: Property, Private Norway: Continued implementation of significant pricing measures
Quarterly update Property, Private Norway: Continued implementation of significant pricing measures Property, Private Norway Claims for property insurance volatile in nature Claims frequency • High exposure to weather - expect more frequent weather-related incidents over time – included in pricing Q
Slide 6: Motor, Private Norway: Continued high price increases, exceeding expected claims increases
Quarterly update Motor, Private Norway: Continued high price increases, exceeding expected claims increases Motor, Private Norway Continued high claims cost Claims frequency • Shift in claims mix towards more expensive losses Q4’24/Q4’23: 0% (+3% underlying, adjusted for weather) • High frequency le
Slide 7: Sustained growth momentum and high customer retention
Quarterly update Sustained growth momentum and high customer retention • Continued focus on pricing measures and Maintaining high retention in Norway operational efficiency across the Group Private: • Continued strong revenue growth 90/92%1 91% Private Commercial • Higher profitability in Norway, lo
Slide 8: Key sustainability achievements in 2024
Quarterly update Key sustainability achievements in 2024 Initiatives Recognitions Safer society: • AAA rating from MSCI • Increased the share of sustainable insurance products to 53% • Low risk ESG rating from Sustainalytics in 2024 • Ranked among top 5% from EcoVadis (global) • Launched several new
Slide 9: Financial performance
Financial performance
Slide 10: Higher insurance service result, driven by strong revenue growth and improved profitability
Financial Performance Higher insurance service result, driven by strong revenue growth and improved profitability • Increased insurance service result from Private and Q4 Q4 FY FY NOKm 2024 2023 2024 2023 Commercial in Norway and Sweden • Lower profitability in Private and Commercial in Private 885
Slide 11: 11.6 per cent revenue growth – 11.2 per cent in local currency
Financial Performance 11.6 per cent revenue growth – 11.2 per cent in local currency Insurance revenue development NOK m 545 27 85 10,019 Revenue growth 383 8,979 Local Segment NOK currency Driver Private 10.8% 10.6% Mainly price - Norway 10.7% 10.7% Mainly price - Denmark 11.0% 9.7% Price and volum
Slide 12: Improved loss ratio
Financial Performance Improved loss ratio Loss ratio development Key drivers % • Lower underlying frequency loss ratio in Private and 79.3 0.1 0.4 Commercial in Norway and in Sweden (1.7) (0.5) 71.1 (6.5) • Positive effect from better weather conditions in Norway • Lower large losses • Positive effe
Slide 13: Continued good cost control - cost ratio 12.2 per cent
Financial Performance Continued good cost control - cost ratio 12.2 per cent Operating expenses Competitive cost ratio NOK m 484 528 • Efficient operations 432 476 • High revenue growth 87 79 131 140 • Strong cost discipline across the Group Private Commercial Sweden Corp. Q4 2023 Q4 2024 Centre Cos
Slide 14: Good performance in Pension
Financial Performance Good performance in Pension Pre-tax profit Assets under management NOK m NOK bn 386 87 76 79 84 69 208 186 152 182 137 124 114 37 Q4 Q1 Q2 Q3 Q4 (58) 2023 2024 2024 2024 2024 Q4 Q1 Q2 Q3 Q4 Column2 2023 2024 2024 2024 2024 Other (paid up policies, risk products and company port
Slide 15: Investment return of 0.3 per cent
Financial Performance Investment return of 0.3 per cent Investment return per asset class Balanced investment portfolio1 Fixed-income: 94% Listed equities: 2% Free Match Property: 2% 37% NOK 63% PE funds: 2% 62.4bn Other (incl. hedge funds and commodities): 1% 1.0% 0.7% 0.5% 0.5% 0.4% High credit qu
Slide 16: Moving ahead on operational targets
Financial Performance Moving ahead on operational targets Status Target High customer retention in Norway, improvement Metric potential in Denmark Q4 2024 2026 % Customer satisfaction 77 > 78 (Group1) 100 91% > 90% 91% Customer retention (Norway/Outside Norway1) 84% > 85% 90 90% Digital distribution
Slide 17: Strong capital position
Financial Performance Strong capital position Eligible own funds • Contribution from operating SII earnings and result in free portfolio 18% 185% Solvency 14% 1% • Seasonal effect and higher ratio 2% discounting in premium provisions 164% (14%) • Deduction of remaining share of proposed dividend 2.0
Slide 18: Concluding remarks
Summary Concluding remarks Ambitious annual financial targets • Strong growth momentum sustained Metric 2025 2026 • Improved profitability during 2024 Combined ratio <84% <82% • Focus on ongoing measures and good cost control Cost ratio <14% ~13% • Strong capital discipline and solid capital positio
Slide 19: Webinar on Claims 11 March 2025
Webinar on Claims 11 March 2025 An update on the claims cost saving programme announced at the 2023 Capital Markets Day Classified: General Business
Slide 20: Appendix
Appendix
Slide 21: Roadshows and conferences post Q4 2024 results
Appendix Roadshows and conferences post Q4 2024 results Date Location Participants Event Arranged by CEO Geir Holmgren 24 January Oslo CFO Jostein Amdal Roadshow ABGSC Head of IR Mitra H. Negård CEO Geir Holmgren 29 January, 3 February London (virtual) Roadshow ABGSC Head of IR Mitra H. Negård CFO J
Slide 22: Weather effects, Group excluding the Baltics
Appendix Weather effects, Group excluding the Baltics Group excluding the Baltics Q4 2024 Q4 2023 Q3 2024 Q3 2023 Q2 2024 Q2 2023 Q1 2024 Q1 2023 YTD 2024 YTD 2023 Reported Insurance revenue, MNOK 10,019 8,979 9,889 8,853 9,392 8,559 9,060 8,176 38,359 34,568 Loss ratio 71.1% 79.3% 72.1% 70.8% 72.5%
Slide 23: Weather effects, Private
Appendix Weather effects, Private Private Private Norway Private Denmark Q4 Q4 Q3 Q3 Q2 Q2 Q1 Q1 YTD YTD Q4 Q4 Q3 Q3 Q2 Q2 Q1 Q1 YTD YTD Q4 Q4 Q3 Q3 Q2 Q2 Q1 Q1 YTD YTD 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2
Slide 24: Weather effects, Commercial
Appendix Weather effects, Commercial Commercial Commercial Norway Commercial Denmark Q4 Q4 Q3 Q3 Q2 Q2 Q1 Q1 YTD YTD Q4 Q4 Q3 Q3 Q2 Q2 Q1 Q1 YTD YTD Q4 Q4 Q3 Q3 Q2 Q2 Q1 Q1 YTD YTD 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Slide 25: Weather effects, Sweden and Corporate Centre
Appendix Weather effects, Sweden and Corporate Centre Sweden Corporate Centre Q4 Q4 Q3 Q3 Q2 Q2 Q1 Q1 YTD YTD Q4 Q4 Q3 Q3 Q2 Q2 Q1 Q1 YTD YTD 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Reported Insurance revenue, MNOK 503 476 525 481 474 467 4
Slide 26: General insurance Norway – cost ratio and loss ratio
Appendix General insurance Norway – cost ratio and loss ratio Private Norway Commercial Norway Combined ratio Combined ratio 84.2% 87.3% 78.2% 76.2% 80.4% 82.8% 7.8% 78.2% 11.6% 70.1% 8.0% 12.4% 7.5% 8.0% 11.6% 11.7% 72.7% 79.5% 74.8% 65.7% 64.6% 70.7% 72.4% 58.4% Q4 2023 Q4 2024 YTD 2023 YTD 2024 Q
Slide 27: General insurance Denmark – cost ratio and loss ratio
Appendix General insurance Denmark – cost ratio and loss ratio Private Denmark Commercial Denmark Combined ratio Combined ratio 111.0% 107.3% 100.3% 100.2% 21.4% 84.4% 88.0% 84.9% 22.7% 82.3% 23.0% 24.4% 11.3% 10.9% 10.7% 11.0% 89.7% 84.6% 77.2% 75.7% 73.5% 76.7% 71.6% 73.9% Q4 2023 Q4 2024 YTD 2023
Slide 28: General insurance Sweden – cost ratio and loss ratio
Appendix General insurance Sweden – cost ratio and loss ratio Sweden Combined ratio 102.9% 93.6% 93.1% 88.9% 18.2% 15.7% 16.4% 15.0% 84.7% 77.9% 76.7% 73.9% Q4 2023 Q4 2024 YTD 2023 YTD 2024 Loss ratio Cost ratio Gjensidige Forsikring Group 28
Slide 29: Large losses
Appendix Large losses Large losses (before discounting)1 Large losses per segment (before discounting) NOK m NOK m 474 453 288 388 273 323 154 16 24 11 10 0 Q4 2023 Q4 2024 Private Commercial Sweden CC Expected Reported, before discounting Q4 2023 Q4 2024 CC = Corporate Centre. Large losses: Losses
Slide 30: Large losses
Appendix Large losses ~ NOK 1.9bn in large losses1 expected annually Large losses per segment (before discounting) - (before discounting) actual vs. expected NOK m NOK m 800 288 600 241 400 162 200 65 24 11 7 0 0 Private Commercial Sweden CC Expected Reported, before discounting Expected Q4 2024 1)
Slide 31: Run-off
Appendix Run-off NOK m 104 34 22 10 18 17 (46) (126) Private Commercial Sweden Corporate Centre Q4 2023 Q4 2024 Gjensidige Forsikring Group 31
Slide 32: Run-off
Appendix Run-off Run-off % of insurance revenue1,2 10% 8% Motor TPL and Motor TPL (Norway) and WC 6% WC (Norway) (Norway, Denmark) 4% Group life and Motor BI (Norway) Liability and Accident (Denmark) 2% WC and disease (Norway) 0% (2%) Run-off (%), net Average 1) Based on earned premiums up until 202
Slide 33: Quarterly insurance service results - seasonality in Nordic general insurance
Appendix Quarterly insurance service results - seasonality in Nordic general insurance NOK m 2 000 1 000 0 Q1 Q2 Q3 Q4 2022 904 1,667 1,864 1,101 2023 1,115 1,509 1,111 734 2024 704 1,434 1,590 1,670 2022 2023 2024 1) Excluding the Baltics from Q3 2024 Gjensidige Forsikring Group 33
Slide 34: Gross written premiums
Appendix Gross written premiums +18.2% +11.0% +3.8.% NOK m 3,887 3,706 4,114 3,287 463 481 Private Commercial Sweden Q4 2023 Q4 2024 Gjensidige Forsikring Group 34
Slide 35: Norwegian Natural Perils Pool in brief
Appendix Norwegian Natural Perils Pool in brief • Natural perils insurance is a compulsory cover linked to fire insurance in Norway. All insurance companies providing fire insurance in Norway must be members of the pool. Fire insurance coverage for buildings and contents in Norway includes coverage
Slide 36: Reinsurance 2025
Appendix Reinsurance 2025 • Reinsurance is purchased for protection of the Gjensidige Group’s capital position and is primarily a capital management tool. • General retention level per loss/loss occurrence is NOK/DKK/SEK 100m (for the first loss the retention is NOK/SEK 200m and DKK 100m). • Gjensid
Slide 37: Investment strategy supporting high and stable nominal dividends
Appendix Investment strategy supporting high and stable nominal dividends Match portfolio Key characteristics • Duration and currency matching versus technical • Limited risk appetite provisions • Fixed-income: • Credit element for increased returns • Currency hedging vs NOK ~ 100% • Some inflation
Slide 38: Investment portfolio
Appendix Investment portfolio Asset class Investments, key elements Benchmark Match portfolio NBP Norwegian RM1-RM3 Duration 3Y Index - NORM123D3 Fixed-income NOK Corporate and government bonds (Alternatively: a Norwegian IG fund with 3 year duration) Nykredit Constant Maturity Index Bullet Covered
Slide 39: Asset allocation – as at 31.12.2024
Appendix Asset allocation – as at 31.12.2024 Match portfolio Free portfolio • NOK 39.2bn • NOK 23.2bn • Average duration: 2.9 years • Average duration fixed-income instruments: 1.4 years • Average yield: 3.9% • Average yield: 4.6% Fixed-income – short duration: 43% Fixed-income NOK: 60% Global inves
Slide 40: Credit and counterparty risk
Appendix Credit and counterparty risk Total fixed income portfolio • The portfolio consists mainly of securities in Split – Rating Match portfolio Free portfolio NOK bn % NOK bn % rated companies with high creditworthiness AAA 17.0 43.3 5.0 25.4 (Investment grade) AA 3.0 7.5 3.6 18.6 A 8.4 21.4 3.8
Slide 41: Capital generation year-to-date
Appendix Capital generation year-to-date 6% Solvency 23% 18% 185% Ratio 166% 10% (38%) Eligible 5.1 0.7 Own Funds 1.3 0.0 22.0 19.8 NOK bn (5.0) Solvency 1.3 0.0 0.0 Capital 11.9 (0.0) 11.9 Requirement (1.3) NOK bn 31.12.2023 Operating Free Dividend2 Capital Regulatory/ 31.12.2024 SII earnings1 port
Slide 42: Capital position per operational areas
Appendix Capital position per operational areas NOK bn Approved partial internal Approved partial internal Own partial internal Own partial internal Gjensidige model (Group) model (general model (Group)1 model Pensjonsforsikring insurance) (general insurance)1 Eligible own 22.0 18.5 21.4 17.9 3.1 fu
Slide 43: Solvency II eligible own funds: bridging IFRS equity and Solvency II capital
Appendix Solvency II eligible own funds Bridging the gap between IFRS1 equity and Solvency II capital NOK bn 35 3.4 30 26.0 3.8 25 22.0 5.3 (5.0) 20 0.0 (1.7) (0.8) 15 (8.2) (0.0) (0.8) 10 IFRS Sub- Dividend Intangible Fair value Best estimate Risk margin Solvency II Solvency II Deferred tax Miscell
Slide 44: Gjensidige continues to work for full approval of own partial internal model
Appendix Gjensidige continues to work for full approval of own partial internal model (PIM) Main differences between approved and own PIM NOK bn Approved PIM Own PIM • Correlation between market risk and underwriting risk: (Group) 1 (Group) 2 Approved PIM based on standard formula. Own PIM Eligible
Slide 45: Solvency II sensitivities for the approved partial internal model
Appendix Solvency II sensitivities for the approved partial internal model 188% 196% 191% 185% 182% 180% 187% 174% 178% 100% Solvency II ratio Equity Interest rate Spread Inflation (-20%/20%) (-100 bps/+100 bps) (-100 bps/+100 bps) (-100 bps/+100 bps) Figures as at 31.12.2024. The legal perspective
Slide 46: Subordinated debt capacity – Gjensidige Forsikring Group
Appendix Subordinated debt capacity – Gjensidige Forsikring Group Principles for capacity Capacity and utilisation T1 T2 Constraint • Tier 1 remaining capacity is NOK 1.2 - 1.5bn • Utilised Tier 1 debt capacity: NOK 2.0bn Max 20% of Max 50% of SCR less Must be satisfied at SII Tier 1 capital other T
Slide 47: Annualised return on equity 22.7 per cent
Appendix Annualised return on equity 22.7 per cent Equity (NOK m) Annualised return on equity (%) 22.7 5,139 1017 26,016 24,235 18.2 (4,375) 31/12/2023 Profit Total Dividend 31/12/2024 YTD 2024 components of other comprehensive income etc. 2023 2024 Bridge shows main elements in equity development.
Slide 48: Market leader in Norway
Appendix Market leader in Norway Market share – Total market Market share – Commercial Market share – Private 23.5% 31.1% 20.3% 24.7% 18.5% 14.4% 10.6% 6.9% 5.7% 4.9% Gjensidige: 26.4% If: 20.8% Fremtind: 14.7% Tryg: 12.9% Storebrand: 5% Eika: 4% Gjensidige If Tryg Fremtind Protector Gjensidige Frem
Slide 49: Growth opportunities outside Norway
Appendix Growth opportunities outside Norway Market shares Denmark Market shares Sweden Gjensidige: 1.8% Länsförsäkringar: 30.1% Gjensidige: 7.3% Tryg: 24.5% Alm.Brand: 16.5% If: 17.6% Trygg-Hansa: 16.5% Topdanmark: 14.4% If: 5.5% Other: 31.9% Folksam: 16% Other: 18% Sources: Insurance Sweden, 3st q
Slide 50: Gjensidige Pensjonsforsikring - Number four position in Norwegian defined contribution pension market
Appendix Gjensidige Pensjonsforsikring - Number four position in the growing Norwegian defined contribution pension market Market shares – total AUM NOK 534bn • Well positioned for continued profitable organic 40% growth • Core focus on SME customers 30% • Strong profitability 20% • Multi-channel di
Slide 51: Gjensidige Pensjonsforsikring
Appendix Gjensidige Pensjonsforsikring Group policy1 and company portfolio Number of occupational pension members In thousand Current bonds: 81.6% 317 304 Fixed income - short 243 duration: 15.1% Property exsposure: 2.9% 156 165 NOK 9.7 bn Equity funds: 0.4% 2020 2021 2022 2023 2024 Figures as at 31
Slide 52: Disclaimer
Disclaimer This presentation and the information contained herein have been prepared by and is the sole responsibility of Gjensidige Forsikring ASA (the "Company”). Such information is being provided to you solely for your information and may not be reproduced, retransmitted, further distributed to
Slide 53: Investor Relations
Investor Relations Mitra Hagen Negård Address Head of Investor Relations Schweigaards gate 21, Mobile: (+47) 957 93 631 P.O. Box 700 Sentrum, NO-0106 OSLO mitra-hagen.negard@gjensidige.no gjensidige.com/ir Apineya Maheswaran Investor Relations Officer Mobile: (+47) 991 11 950 apineya.maheswaran@gjen
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