Gjensidige Forsikring Asa Unsponsored ADR ((GJNSY)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call of Gjensidige Forsikring Asa Unsponsored ADR painted a picture of robust financial performance, despite facing some significant challenges. The company demonstrated strong growth across various segments, primarily driven by effective pricing strategies and solid investment returns. While the impact of Storm Amy and the termination of the pension IT system posed hurdles, the overall sentiment remained positive, with highlights overshadowing the lowlights.
Strong Financial Performance
Gjensidige reported an impressive profit before tax of NOK 2,067 million for the third quarter of 2025. This achievement comes despite a nonrecurring expense of NOK 429 million due to the termination of a new core IT system in the pension business. The insurance service result saw a significant increase to NOK 2,271 million, and the combined ratio improved to a commendable 79.7%.
Robust Growth in Insurance Revenue
The company experienced a notable 11.3% increase in insurance revenue in local currency. This growth was fueled by strong pricing measures and solid renewals across both private and commercial portfolios in all geographical areas where Gjensidige operates.
Improved Investment Returns
Gjensidige’s investments yielded returns of NOK 534 million, contributing to a solid return on equity of 29.6%. This performance underscores the company’s effective investment strategies and its ability to generate substantial returns.
Strong Capital Position
The company maintained a robust capital position, with a solvency ratio of 191% at the end of the quarter. This strong solvency ratio reflects Gjensidige’s financial stability and its capacity to meet long-term obligations.
Continued Growth in Pension Business
Gjensidige’s unit-linked pension business continues to thrive, with the number of occupational pension members increasing by 5,500 to nearly 335,000. Additionally, assets under management rose by NOK 4 billion, reaching NOK 100 billion.
Impact of Storm Amy
Storm Amy caused significant property damage in Norway and Denmark, with industry-wide insurance losses estimated between NOK 1.5 billion and NOK 2.1 billion. Gjensidige’s total claims cost from the storm in Q4 2025 is estimated at approximately NOK 400 million net of reinsurance.
Challenges in Private Property Insurance Norway
The company faced lower profitability in its private property insurance segment in Norway, with claims frequency increasing by 5% and repair costs by 4%. This segment remains a challenge as Gjensidige navigates these rising costs.
Termination of Pension IT System
A significant nonrecurring expense of NOK 429 million was incurred due to the termination of a new core IT system in the pension business. This impacted the financial results of the segment, posing a challenge for the company.
Forward-Looking Guidance
Gjensidige’s forward-looking guidance remains optimistic despite the challenges faced. The company reported a profit before tax of NOK 2,067 million for Q3 2025, with a notable increase in insurance revenue and a combined ratio improvement to 79.7%. Investment returns and a strong solvency ratio further bolster the company’s outlook. Strategic pricing measures are being implemented to counter inflation and claims frequency, ensuring continued growth and operational efficiency.
In conclusion, Gjensidige Forsikring Asa Unsponsored ADR’s earnings call highlighted a strong financial performance and growth trajectory, despite facing challenges such as Storm Amy and IT system termination expenses. The company’s effective strategies in pricing and investment returns have positioned it well for future success, maintaining a positive outlook moving forward.