Challenging weather reduced the Gjensidige result – E24

The insurance giant reports a tough quarter, where the bottom line fell after several claims.

The case is updated.

They show Gjensidige’s quarterly report. The insurance group presents the figures for the first three months of the year on Thursday.

– We continue to have a very strong growth rate. We navigated very well through a tough quarter that was strongly characterized by demanding weather conditions, says CEO Geir Holmgren in a press release.

Weather damage cost DKK 577 million.

The insurance result, which shows what Gjensidige earned from non-life insurance, landed at NOK 704 million. This was down from NOK 1.11 billion in the corresponding period last year.

– The decline was primarily driven by the harsh weather conditions in the Nordic region, reports Gjensidige.

The company points out that heavy snowfall, heavy rainfall, low temperatures and the storm “Ingunn” led to more engine and property damage in the quarter.

Gjensidige estimates weather-related damage costs at NOK 577 million in the quarter, divided into NOK 331 million in property and NOK 246 million in engines.

Insurance income rose to NOK 9.47 billion from NOK 8.53 billion, driven by “solid renewals, effective and differentiated price measures and volume growth”, reports Gjensidige.

The insurance result gives a so-called combined ratio, which shows costs and claim payments as a percentage of income of 92.6, up from 86.9 per cent and above the target of 84 per cent.

Lower financial result

The financial result, i.e. Gjensidige’s placement of capital in the financial markets, ended at 448 million in the quarter, down from 794 million in the first quarter of last year.

Profit before tax fell to NOK 1.08 billion in the first quarter from NOK 1.49 billion in the first quarter last year.

The analysts had previously expected a profit before tax of NOK 1.08 billion, according to Bloomberg.

Gjensidige is Norway’s largest when it comes to non-life insurance. The company also sells insurance in Denmark, Sweden and the Baltic countries.