Gjensidige Forsikring ASA

Gjensidige reported profit after tax of NOK 2.122 billion in Q2 and profit before tax of NOK 2.790 billion. The quarter included a NOK 419 million net negative impact from the Danish Supreme Court ruling on workers’ compensation. Insurance revenue increased 9.3% year over year, and the adjusted insurance service result was NOK 2.794 billion with a combined ratio of 75.2%. The cost ratio was 11.7%, return on equity was 33.3%, and the solvency ratio was 189%. On an adjusted basis, management said profit after tax was up year over year. For guidance, management said it remains well positioned for further growth and reiterated confidence in reaching the financial targets for 2026; no specific next-quarter or full-year numeric guidance was provided.

Geir Holmgren framed the quarter as a strong one and emphasized strategic execution rather than just the reported numbers. He highlighted the expansion of the pension business in group management, the customer dividend payment of NOK 3.1 billion, and new partnerships as evidence of Gjensidige’s customer and distribution strategy. His tone was confident and disciplined, stressing profitability, underwriting quality, and the ability to price risk properly going forward.

Jostein Amdal said profit before tax was NOK 2.790 billion, with the Danish court ruling and lower investment results weighing on the quarter. He noted the general insurance service result adjusted for that impact was up almost NOK 600 million, while pension pre-tax profit adjusted for CSM was NOK 245 million, NOK 40 million lower than last year. He also pointed to a strong investment result from fixed income and equities, a 189% solvency ratio, and explained that higher capital requirements were driven by growth, especially in unit-linked business, while the redemption of a Tier 1 loan reduced eligible own funds by NOK 713 million. He said the company still has a strong capital position with flexibility for profitable growth and shareholder distributions.

Analysts focused on the sustainability of the improved frequency loss ratio, the slowdown in private premium growth, competition in commercial lines, the Tesla agreement, and a possible VAT on insurance premiums. Management said the improved underlying frequency loss ratio was largely driven by disciplined pricing and some favorable claims volatility, not just benign claims trends, and that the Q2 level should not be treated as a precise run rate. On growth, they said the temporary impact from ending fire mutual agreements hurt volumes in 2026 but should not repeat, and they tied future growth to stronger private distribution and new partnerships. On Tesla, they said Gjensidige is now Tesla’s main and core partner in Norway, not competing with a captive insurer, and that EV pricing remains manageable because they have sufficient data.