Gjensidige Forsikring ASA

Gjensidige reported profit after tax of NOK 2.122 billion in Q2 and profit before tax of NOK 2.790 billion. Adjusted for the Danish Supreme Court ruling on workers’ compensation, profit after tax was up year over year, and the insurance service result was NOK 2.794 billion with a combined ratio of 75.2%. Revenue increased 9.3% year over year; the cost ratio was 11.7%, return on equity was 33.3%, and the solvency ratio was 189%. The Danish court ruling reduced results by NOK 419 million net of reserve releases. For the pension business, pre-tax profit was NOK 245 million adjusted for a change in CSM. Management did not give full-year numerical guidance, but said it remains confident in reaching the financial targets for 2026 and expects continued growth supported by stronger distribution in Denmark, pension growth, partner agreements, and housing initiatives in Norway.

Geir Holmgren framed the quarter as a strong execution period and emphasized strategic changes that should support future growth. He highlighted the addition of the pension CEO to group management, the integration of pricing and analysis closer to the operating divisions, and several partnership wins, including Tesla, Privatmegleren, Huseierne, and Tekna. His tone was confident but disciplined: he repeatedly stressed profitability over volume, pricing aligned to claims costs, and a willingness to accept lower volumes where needed to protect margins.

Jostein Amdal focused on the drivers behind the numbers: the adjusted insurance service result rose strongly, helped by disciplined pricing, improved frequency loss ratios, and strong profitability in the main non-life segments. He said private Norway improved by NOK 168 million with a 1.4 percentage point better underlying frequency loss ratio, Denmark private improved with an 8.7 percentage point better underlying frequency loss ratio, and commercial Norway improved by NOK 501 million with a 4.2 percentage point better underlying frequency loss ratio. He also noted the pension result was NOK 245 million, up in unit-linked and finance income but offset by higher expenses and weaker child pension profitability. On capital, he said the solvency ratio stayed at 189%, the Tier 1 redemption reduced eligible own funds by NOK 713 million, and capital requirements rose with growth, especially unit-linked business.

Analysts focused on whether the improvement in underlying frequency loss ratios was sustainable, the slowing of private growth, the impact of the fire mutual terminations, Tesla, and a possible VAT on insurance premiums. Management said the improvement was mainly due to disciplined pricing and some favorable claims volatility, not just an unusually good claims environment, and that Q2 should not be treated as a simple run rate. On growth, they said the fire mutual exits caused a temporary 2026 volume hit in both private and commercial, but that the business is keeping many of those customers and sees optimism from new partnerships and stronger distribution. On Tesla, management said Gjensidige is now Tesla’s main partner in Norway and that Tesla EV insurance can be priced similarly to fossil-fuel cars because the company has enough data. They also said a proposed VAT change is highly uncertain and would be reflected in pricing if it ever became real.