The following is a summary of the Gjensidige Forsikring ASA (GJNSF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Gjensidige Forsikring reported a pre-tax profit of NOK 1.076 billion in Q1 of 2024, with a general insurance service result of NOK 704 million.
The company experienced weather-related claims estimated at NOK 577 million, net of reinsurance, and provisions worth NOK 108 million related to potential legal liabilities.
The company's return on equity stood at 14.4% annually.
The underlying frequency loss ratio improved by 0.2% in Q1 compared to the same period in the previous year, with a 0.4% improvement in the loss ratio results.
Growth in assets under management and insurance revenue was reported, along with median improvements in profitability in the insurance services segment.
Business Progress:
Weather conditions in the winter drove an 18% YoY increase in claims for January and February.
The company continued to show growth momentum, primarily through price increases, alongside some volume growth.
Driven by price increases, Gjensidige Forsikring projects robust growth and improved underlying profitability.
Efforts to enhance profitability in Sweden and the Baltic regions are underway, and progressive improvements are anticipated in Denmark due to an ongoing improvement program.
The company plans to further increase motor insurance deductibles to manage claim frequency and costs effectively.
The company is also focusing on sustainability with initiatives for sustainable claims handling and responsible investments.
The firm strengthened its capital position by raising bonds including Tier 1 capital, paying 7.5%.
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