Earnings Release • Jan 22, 2021
Earnings Release
Open in ViewerOpens in native device viewer
In the following, the figures in brackets indicate the amount or percentage for the corresponding period in the previous year.
| NOK millions | Q4 2020 | Q4 2019 | 1.1.-31.12.2020 | 1.1.-31.12.2019 |
|---|---|---|---|---|
| General Insurance Private | 704.4 | 550.5 | 2,757.4 | 2,025.1 |
| General Insurance Commercial | 477.0 | 428.2 | 2,096.6 | 1,729.8 |
| General Insurance Denmark | 225.3 | 99.0 | 800.5 | 599.3 |
| General Insurance Sweden | 3.4 | 18.2 | 76.1 | 75.9 |
| General Insurance Baltics | 4.6 | 19.4 | 67.7 | 60.9 |
| Corporate Centre - costs related to owner | (65.8) | (90.4) | (331.2) | (317.7) |
| Corporate Centre - reinsurance 1 | (187.2) | (105.3) | (391.5) | (136.9) |
| Underwriting result general insurance | 1,161.8 | 919.6 | 5,075.6 | 4,036.4 |
| Pension | 56.2 | 61.1 | 166.8 | 196.9 |
| Financial result from the investment portfolio | 1,151.9 | 832.5 | 1,341.7 | 2,306.4 |
| Amortisation and impairment losses of excess value – intangible assets | (43.5) | (63.2) | (182.1) | (256.4) |
| Other items | (12.7) | (21.4) | (60.2) | 1,470.5 |
| Profit/(loss) before tax expense 2 | 2,313.6 | 1,728.6 | 6,341.7 | 7,753.8 |
| Alternative performance measures | ||||
| Large losses 3, 4 | 264.7 | 211.4 | 955.6 | 635.0 |
| Run-off gains/(losses) 3 | 259.1 | 338.0 | 1,122.3 | 1,363.2 |
| Loss ratio 3 | 68.4% | 70.3% | 66.8% | 68.9% |
| Underlying frequency loss ratio 3, 5 | 68.3% | 72.3% | 67.4% | 71.8% |
| Cost ratio 3 | 14.7% | 15.2% | 14.5% | 14.7% |
| Combined ratio 3 | 83.1% | 85.4% | 81.3% | 83.6% |
1 Large losses in excess of NOK 30.0 million are charged to the Corporate Centre, while claims of less than NOK 30.0 million are charged to the segment in which the large losses occur. As a main rule, the Baltics segment has a retention level of EUR 0.5 million, while the Swedish segment has a retention level of NOK 10 million. Large losses allocated to the Corporate Centre amounted to NOK 431.1 million (163.4) for the year as a whole and NOK 172.1 (84.9) in the quarter. Accounting items related to reinsurance are also included. 2 The profit before tax expense is presented for the continuing operation (excluding Gjensidige Bank).
3 Defined as an alternative performance measure (APM). APMs are described at www.gjensidige.no/reporting in a document named APMs Gjensidige Forsikring Group Q4 2020.
4 Large losses = loss events in excess of NOK 10.0 million. Expected large losses for the quarter were NOK 300.0 million.
5 Underlying frequency loss ratio = claims incurred etc. excluding large losses and run-off gains/(losses) divided by earned premiums
Strong retention, effective pricing measures, good cost control and favourable claims development resulted in the highest fourth quarter underwriting result (excluding run-off gains), and the highest full year result (excluding gains on sales) in the Group's history. Gjensidige's outlook remains good, supported by a very strong capital position. The Board proposes a regular dividend of NOK 7.40 per share and declares a special dividend of NOK 2.40 per share.
Gjensidige Forsikring Group recorded a profit before tax expense of NOK 6,341.7 million (7,753.8) for the period. The corresponding result for 2019 included a gain on the sale of Gjensidige Bank of NOK 1.6 billion.
The profit from general insurance operations measured by the underwriting result was NOK 5,075.6 million (4,036.4), corresponding to a combined ratio of 81.3 (83.6).
The landslide at Gjerdrum in Norway in December, defined as a natural peril event, incurred a large loss of NOK 180.4 million net of reinsurance, of which NOK 150.4 million was allocated to the Corporate Centre and the rest to the Private and Commercial segments. The reinstatement premium on the reinsurance programme amounted to NOK 24.7 million, recorded in the Corporate Centre. The net effect of the event on the Group's combined ratio was 0.7 percentage points.
The Covid-19 pandemic had a positive impact on the Group's claims, estimated at approximately NOK 296 million, corresponding to 1.1 percentage points on the loss ratio. Claims related to cancellations and home transportation increased significantly and were mainly allocated to the Corporate Centre. The negative effect was offset by less travel activity and less driving. In addition, premium growth in Denmark and the Baltics were subdued related to travel insurance for both segments.
| Claims, NOK millions | Q1 2020 |
Q2 2020 |
Q3 2020 |
Q4 2020 |
FY 2020 |
|---|---|---|---|---|---|
| Corporate Centre, gross | -222 | -38 | -24 | -20 | -305 |
| Corporate Centre, net of reinsurance |
-60 | -72 | -31 | -22 | -184 |
| Private | 39 | 69 | 49 | 83 | 240 |
| Commercial | 30 | 25 | 17 | 47 | 119 |
| Denmark | -12 | 108 | 7 | 22 | 124 |
| Sweden | -2 | -11 | -5 | -4 | -23 |
| Baltics | -1 | 14 | 3 | 3 | 20 |
| Total impact on claims, net of reinsurance |
-6 | 132 | 41 | 129 | 296 |
The income tax expense amounted to NOK 1,387.8 million (1.197.6), resulting in an effective tax rate of 21.9 per cent (15.4). The effective tax rate was impacted by realised and unrealised gains and losses on equity investments in the EEA.
The profit after tax expense from continuing and discontinued operations was NOK 4,953.9 million (6,593.8) and the corresponding earnings per share were NOK 9.91 (13.19).
Earned premiums from general insurance increased by 10.2 per cent to NOK 27,160.5 million (24,650.4) for the year. Measured in local currency, the premiums increased by 7.5 per cent. The underwriting result increased due to higher premiums following solid renewals and effective and differentiated pricing measures, which in addition to more favourable weather conditions for motor in Norway during the first quarter and the Covid-19 impact mentioned above, resulted in a 4.5 percentage point improvement in the underlying frequency loss ratio. This was partly offset by higher large losses, lower run-off gains and higher operating expenses.
Earned premiums in the Private segment increased by 6.3 per cent, which together with a significantly lower underlying frequency loss ratio resulted in a higher underwriting result.
Earned premiums in the Commercial segment increased by 9.4 per cent. Strong growth combined with an improved underlying frequency loss ratio resulted in an increased underwriting result.
The Danish segment recorded an increase of 9.4 per cent in earned premiums measured in local currency. Underlying growth was 5.3 per cent. The underwriting result improved, driven by a lower underlying frequency loss ratio in combination with the solid premium growth.
Earned premiums in the Swedish segment were up 3.0 per cent measured in local currency. The underwriting result was stable.
Earned premiums in the Baltic segment decreased by 4.2 per cent measured in local currency. The underwriting result increased, mainly due to currency effects.
The Pension segment generated a lower profit for the period, driven by lower insurance income and higher operating expenses.
The return on financial assets was 2.2 per cent (4.1) or NOK 1,341.7 million (2,306.4). The lower return was mainly due to the Covid-19 pandemic which caused a significant downturn in the financial markets towards the end of the first quarter, resulting in negative returns for most asset classes. Significant intervention by central banks and fiscal policy measures drove the market recovery during the rest of the year, resulting in positive returns for the year as a whole.
The Group recorded a profit before tax expense of NOK 2,313.6 million (1,728.6) for the quarter. The profit from general insurance operations measured by the underwriting result was NOK 1,161.8 million (919.6), corresponding to a combined ratio of 83.1 (85.4). The return on financial assets was 2.0 per cent (1.4) or NOK 1,151.9 million (832.5).
The profit after tax expense was NOK 1,930.4 million (1,473.4). Earnings per share amounted to NOK 3.86 (2.95).
The underwriting result was driven by 8.9 per cent growth in earned premiums and an improved underlying frequency loss ratio. Earned premiums increased 6.3 per cent in local currency. The underlying frequency loss ratio improved primarily due to effective and differentiated pricing measures.
The Covid-19 pandemic had a positive impact on the Group's claims estimated at approximately NOK 129 million, corresponding to 1.9 percentage point on the loss ratio. This was primarily related to travel and motor insurance, partly offset by accident and health insurance products.
The above-mentioned landslide at Gjerdrum increased the combined ratio by 2.9 percentage points.
The Pension operation recorded a lower profit mainly due to lower insurance income.
All asset classes in the investment portfolio contributed positively in the fourth quarter.
The Group's equity amounted to NOK 25,284.5 million (26,192.2) at the end of the year. The return on equity for the year was 19.2 per cent (28.2). The solvency margins at the end of the year were:
The solvency margins are calculated net of the NOK 4,900.0 million kroner in dividends proposed or declared by the Board.
The Group has a robust solvency position and Gjensidige believes that the Covid-19 pandemic will not have an impact on the Group's ability to continue as a going concern.
Gjensidige has an 'A' rating from Standard & Poor's.
Distribution agreement with Nykredit to be terminated Gjensidige's distribution agreement with Nykredit will be terminated from 1 May 2021. The co-operation has been based on referrals and Gjensidige has had the direct customer relationship. Being a well-established player in the Danish
market, and having established targeted measures, Gjensidige expects to maintain and improve overall customer retention in Denmark.
Gjensidige's sustainability targets focus on three areas where we can make a difference: a safer society, reduced carbon intensity and socially responsible investments, which also support the Group's financial targets. A few examples of key results and operational initiatives in 2020 are listed below:
1 Regulatory approved partial internal model
The underwriting result was NOK 2,757.4 million (2,025.1). The increase was driven by higher earned premiums and a significantly lower underlying frequency loss ratio. The combined ratio was 70.8 (77.2).
Earned premiums increased to NOK 9,433.6 million (8,872.4). Adjusted for the transfer of a product insurance portfolio to the Danish segment, the increase was 6.7 per cent. Price increases for motor and property insurance, as well as accident and health insurance were the main drivers of the increase in earned premiums. Gjensidige maintained a strong position in the market. Competitiveness remains good and the number of customers increased.
Claims incurred amounted to NOK 5,450.7 million (5,682.6). The loss ratio improved to 57.8 (64.0), driven by a 7.4 percentage point improvement in the underlying frequency loss ratio. Both the motor and property insurance lines recorded improved profitability due to effective pricing measures. Motor insurance was also positively impacted by more favourable weather conditions in the first quarter.
The Covid-19 situation had a positive impact on claims, estimated at approximately NOK 240 million, corresponding to 2.5 percentage points on the loss ratio. This was primarily related to less driving and low travel activity. The travel insurance line was significantly impacted by higher claims in the first quarter, but reinsurance coverage limited net claims incurred.
Operating expenses amounted to NOK 1,225.5 million (1,164.7). The cost ratio was 13.0 (13.1).
The underwriting result was NOK 704.4 million (550.5). The increase was driven by higher earned premiums and a significantly lower underlying frequency loss ratio. The combined ratio was 70.7 (75.3).
Earned premiums increased to NOK 2,406.7 million (2,230.1). Adjusted for the transfer of a product insurance portfolio to the Danish segment, the increase was 8.2 per cent. The main drivers were price increases for motor and property insurance, as well as accident and health insurance, although the remaining product lines also recorded higher earned premiums. The number of customers increased during the quarter.
Claims incurred amounted to NOK 1,382.1 million (1,375.3). The loss ratio improved to 57.4 (61.7), primarily driven by a 5.4 percentage point improvement in the underlying frequency loss ratio partly offset by lower run-off gains. The lower underlying frequency loss ratio was driven by effective pricing measures and a favourable claims development particularly for property insurance. The Covid-19 situation had a positive impact on claims, estimated at approximately NOK 83 million, corresponding to 3.4 percentage points on the loss ratio. This was related to lower travel activity and motor claims, partly offset by higher claims on accident and health products.
Operating expenses amounted to NOK 320.2 million (304.3). The cost ratio was 13.3 (13.6).
| NOK millions | Q4 2020 | Q4 2019 | 1.1.-31.12.2020 | 1.1.-31.12.2019 |
|---|---|---|---|---|
| Earned premiums | 2,406.7 | 2,230.1 | 9,433.6 | 8,872.4 |
| Claims incurred etc. | (1,382.1) | (1,375.3) | (5,450.7) | (5,682.6) |
| Operating expenses | (320.2) | (304.3) | (1,225.5) | (1,164.7) |
| Underwriting result | 704.4 | 550.5 | 2,757.4 | 2,025.1 |
| Amortisation and impairment losses of excess value – intangible assets | (7.3) | (7.2) | (29.2) | (26.6) |
| Large losses 1 | 12.1 | 22.8 | 89.0 | 38.9 |
| Run-off gains/(losses) 1 | 101.1 | 130.3 | 438.0 | 467.3 |
| Loss ratio 1 | 57.4% | 61.7% | 57.8% | 64.0% |
| Underlying frequency loss ratio 1 | 61.1% | 66.5% | 61.5% | 68.9% |
| Cost ratio 1 | 13.3% | 13.6% | 13.0% | 13.1% |
| Combined ratio 1 | 70.7% | 75.3% | 70.8% | 77.2% |
The underwriting result was NOK 2,096.6 million (1,729.8). The increase was mainly due to significantly higher earned premiums and an improved underlying frequency loss ratio. The combined ratio was 76.5 (78.8).
Earned premiums increased to NOK 8,929.0 million (8,164.1), driven by effective pricing measures, solid renewals and portfolio growth. All the main product lines recorded higher earned premiums. Claims incurred amounted to NOK 5,943.9 million (5,608.6). The loss ratio improved to 66.6 (68.7), mainly driven by a 3.2 percentage point decrease in the underlying frequency loss ratio and a lower level of large losses, partly offset by lower run-off gains. Pricing and re-underwriting measures, particularly for the motor and property insurance lines, were the main drivers of this improvement.
The Covid-19 situation had a positive impact on claims, estimated at approximately NOK 119 million, corresponding to 1.3 percentage points on the loss ratio. This was primarily related to less driving of commercial vehicles and less travel activity.
Operating expenses amounted to NOK 888.4 million (825.7), corresponding to a cost ratio of 9.9 (10.1).
The underwriting result was NOK 477.0 million (428.2). The increase was due to higher earned premiums and an improved underlying frequency loss ratio. The combined ratio was 79.0 (79.6).
Earned premiums increased to NOK 2,270.5 million (2,099.5), driven by effective pricing measures, solid renewals and portfolio growth. All the main product lines recorded higher earned premiums. The very strong momentum has continued into 2021, with very good January first renewals.
Claims incurred amounted to NOK 1,563.8 million (1,476.9) and the loss ratio was 68.9 (70.3). The decrease in the loss ratio was driven by a 4.6 percentage point improvement in the underlying frequency loss ratio, partly offset by higher large losses and lower run-off gains. Motor in particular as well as Accident and Health showed significantly increased profitability.
The Covid-19 situation had a positive impact on claims, estimated at approximately NOK 47 million, corresponding to 2.1 percentage points on the loss ratio. This was primarily related to lower motor claims and less travel activity during the quarter.
Operating expenses amounted to NOK 229.6 million (194.4), corresponding to a cost ratio of 10.1 (9.3).
| NOK millions | Q4 2020 | Q4 2019 | 1.1.-31.12.2020 | 1.1.-31.12.2019 |
|---|---|---|---|---|
| Earned premiums | 2,270.5 | 2,099.5 | 8,929.0 | 8,164.1 |
| Claims incurred etc. | (1,563.8) | (1,476.9) | (5,943.9) | (5,608.6) |
| Operating expenses | (229.6) | (194.4) | (888.4) | (825.7) |
| Underwriting result | 477.0 | 428.2 | 2,096.6 | 1,729.8 |
| Large losses 1 | 66.0 | 43.7 | 255.7 | 355.4 |
| Run-off gains/(losses) 1 | 98.9 | 140.2 | 444.4 | 617.0 |
| Loss ratio 1 | 68.9% | 70.3% | 66.6% | 68.7% |
| Underlying frequency loss ratio 1 | 70.3% | 74.9% | 68.7% | 71.9% |
| Cost ratio 1 | 10.1% | 9.3% | 9.9% | 10.1% |
| Combined ratio 1 | 79.0% | 79.6% | 76.5% | 78.8% |
The underwriting result was NOK 800.5 million (599.3). The improvement was mainly driven by an increase in earned premiums, and a lower underlying frequency loss ratio. The combined ratio was 86.5 (87.9).
Earned premiums amounted to NOK 5,910.2 million (4,960.1). Measured in local currency, earned premiums increased by 9.4 per cent, mainly due to portfolio growth and solid renewals in the commercial lines. Adjusted for the discontinuation of a quota share reinsurance contract and a product portfolio that was relocated from Private back to the Danish segment, the underlying growth in local currency was 5.3 per cent. Lower demand for travel insurance had a significant negative impact on premium growth.
Claims incurred amounted to NOK 4,250.2 million (3,642.0). The loss ratio decreased to 71.9 (73.4), driven by a 3.8 percentage point improvement in the underlying frequency loss ratio, partly offset by lower run-off gains and higher large losses. The Covid-19 situation had a positive impact on claims, estimated at approximately NOK 124 million, corresponding to 2.1 percentage points on the loss ratio. This was primarily related to the motor and travel insurance lines. Effective pricing measures in the commercial lines also contributed to the improvement in the underlying frequency loss ratio.
Operating expenses amounted to NOK 859.5 million (718.8). The cost ratio was 14.5 (14.5). The cost ratio was stable despite lower commissions from the discontinued quota share.
The underwriting result was NOK 225.3 million (99.0). The improvement was driven by a combination of higher earned premiums, lower large losses, a decrease in the underlying frequency loss ratio and higher run-off gains. The combined ratio was 85.0 (92.4).
Earned premiums amounted to NOK 1,501.1 million (1,301.1). Measured in local currency, earned premiums increased by 7.9 per cent, mainly due to portfolio growth in the commercial lines. Adjusted for the discontinuation of a quota share reinsurance contract and a product portfolio that was relocated from Private back to the Danish segment, the underlying growth was 5.7 per cent. Earned premium growth for the quarter was subdued as a result of lower demand for travel insurance due to travel restrictions. The January first renewals this year have been good.
Claims incurred amounted to NOK 1,051.2 million (1,001.2). The loss ratio decreased to 70.0 (77.0), driven by lower large losses, higher run-off gains, and a 1.6 percentage point reduction in the underlying frequency loss ratio. The improvement in the underlying frequency loss ratio mainly reflects profitability measures for commercial lines. The Covid-19 situation had a positive impact on claims, estimated at approximately NOK 22 million, corresponding to 1.4 percentage point on the loss ratio. This was related to less driving and travel activity during the quarter, partly offset by higher claims for health insurance.
Operating expenses amounted to NOK 224.6 million (200.9). The cost ratio was 15.0 (15.4). The cost ratio decreased despite lower commissions from the discontinued quota share.
| NOK millions | Q4 2020 | Q4 2019 | 1.1.-31.12.2020 | 1.1.-31.12.2019 |
|---|---|---|---|---|
| Earned premiums | 1,501.1 | 1,301.1 | 5,910.2 | 4,960.1 |
| Claims incurred etc. | (1,051.2) | (1,001.2) | (4,250.2) | (3,642.0) |
| Operating expenses | (224.6) | (200.9) | (859.5) | (718.8) |
| Underwriting result | 225.3 | 99.0 | 800.5 | 599.3 |
| Amortisation and impairment losses of excess value – intangible assets | (14.9) | (35.1) | (69.3) | (142.9) |
| Large losses 1 | 14.4 | 60.0 | 149.2 | 77.3 |
| Run-off gains/(losses) 1 | 47.4 | 19.2 | 128.7 | 174.9 |
| Earned premiums in local currency (DKK) 1 | 1,039.4 | 964.6 | 4,106.6 | 3,759.6 |
| Loss ratio 1 | 70.0% | 77.0% | 71.9% | 73.4% |
| Underlying frequency loss ratio 1 | 72.2% | 73.8% | 71.6% | 75.4% |
| Cost ratio 1 | 15.0% | 15.4% | 14.5% | 14.5% |
| Combined ratio 1 | 85.0% | 92.4% | 86.5% | 87.9% |
The underwriting result was stable at NOK 76.1 million (75.9). The combined ratio was 95.2 (94.6).
Earned premiums increased to NOK 1,592.0 million (1,405.8). Measured in local currency, earned premiums increased by 3.0 per cent, reflecting price and volume growth in the commercial lines, partly offset by lower volumes in the private lines.
Claims incurred amounted to NOK 1,209.9 million (1,058.6). The loss ratio increased to 76.0 (75.3), mainly driven by a 0.5 percentage point increase in the underlying frequency loss ratio. The Covid-19 situation had a negative impact on claims, estimated at approximately NOK 23 million, corresponding to 1.4 percentage point on the loss ratio. This was primarily related to payment protection insurance, partly offset by a slightly positive impact on motor claims due to less driving.
Operating expenses increased to NOK 306.0 million (271.3). The cost ratio was 19.2 (19.3).
The underwriting result was NOK 3.4 million (18.2). The decrease was mainly driven by lower run-off gains. The combined ratio was 99.1 (95.0).
Earned premiums increased to NOK 395.3 million (364.7). Measured in local currency, earned premiums decreased by 2.0 per cent, primarily due to a decrease in the private portfolio related to profit sharing of a partner agreement.
Claims incurred amounted to NOK 302.9 million (263.2). The loss ratio increased to 76.6 (72.2), mainly driven by lower run-off gains and a 1.2 percentage point increase in the underlying frequency loss ratio. The Covid-19 situation had a negative impact on claims, estimated at approximately NOK 4 million, corresponding to 1.0 percentage points on the loss ratio. This was primarily related to payment protection insurance.
Operating expenses increased to NOK 89.0 million (83.3). The cost ratio was 22.5 (22.8).
| Q4 2020 | Q4 2019 | 1.1.-31.12.2020 | 1.1.-31.12.2019 |
|---|---|---|---|
| 395.3 | 364.7 | 1,592.0 | 1,405.8 |
| (302.9) | (263.2) | (1,209.9) | (1,058.6) |
| (89.0) | (83.3) | (306.0) | (271.3) |
| 3.4 | 18.2 | 76.1 | 75.9 |
| (17.3) | (15.8) | (67.5) | (63.9) |
| 30.0 | |||
| 3.1 | 14.6 | 62.5 | 31.6 |
| 377.0 | 385.2 | 1,556.1 | 1,511.0 |
| 76.6% | 72.2% | 76.0% | 75.3% |
| 77.4% | 76.2% | 78.0% | 77.5% |
| 22.5% | 22.8% | 19.2% | 19.3% |
| 99.1% | 95.0% | 95.2% | 94.6% |
The underwriting result increased to NOK 67.7 million (60.9), mainly driven by currency effects. The combined ratio was 94.2 (94.6).
Earned premiums amounted to NOK 1,175.7 million (1,126.9). Measured in local currency, earned premiums decreased by 4.2 per cent, reflecting lower volume in the travel and general thirdparty liability insurance lines and lower prices for motor insurance due to fierce competition. This was reinforced by the Covid-19 situation.
Claims incurred amounted to NOK 767.2 million (728.7). The loss ratio increased to 65.3 (64.7), due to lower run-off gains partly offset by a 1.5 percentage point improvement in the underlying frequency loss ratio. The latter was mainly due to favourable weather conditions in the first quarter. The Covid-19 situation had a positive impact on claims estimated at approximately NOK 20 million, corresponding to 1.8 percentage point on the loss ratio. This was primarily related to motor and travel claims.
Operating expenses amounted to NOK 340.7 million (337.3). The cost ratio was 29.0 (29.9), the decrease reflecting cost saving initiatives.
The underwriting result amounted to NOK 4.6 million (19.4). The decrease was primarily driven by run-off losses. The combined ratio was 98.4 (93.4).
Earned premiums amounted to NOK 289.1 million (292.7). Measured in local currency, earned premiums decreased by 7.4 per cent, reflecting lower prices in the motor insurance line due to fierce competition, in addition to a lower travel insurance volume due to the Covid-19 situation.
Claims incurred amounted to NOK 200.4 million (189.9). The loss ratio increased to 69.3 (64.9), mainly due to run-off losses. The underlying frequency ratio improved by 1.5 percentage point, primarily in the private lines. The Covid-19 situation had a positive impact on claims, estimated at approximately NOK 3 million, corresponding to 1.1 percentage points on the loss ratio. This was primarily related to less travel activity.
Operating expenses amounted to NOK 84.1 million (83.4). The cost ratio was 29.1 (28.5), reflecting the reduction in premium volume. Nominal costs in local currency were reduced.
| Q4 2020 | Q4 2019 | 1.1.-31.12.2020 | 1.1.-31.12.2019 |
|---|---|---|---|
| 289.1 | 292.7 | 1,175.7 | 1,126.9 |
| (200.4) | (189.9) | (767.2) | (728.7) |
| (84.1) | (83.4) | (340.7) | (337.3) |
| 4.6 | 19.4 | 67.7 | 60.9 |
| (4.0) | (3.8) | (16.0) | (14.7) |
| 0.5 | |||
| (7.3) | 9.9 | 13.4 | 35.8 |
| 26.9 | 29.0 | 109.6 | 114.4 |
| 69.3% | 64.9% | 65.3% | 64.7% |
| 66.8% | 68.3% | 66.4% | 67.8% |
| 29.1% | 28.5% | 29.0% | 29.9% |
| 98.4% | 93.4% | 94.2% | 94.6% |
The profit before tax expense was NOK 166.8 million (196.9). The decrease was mainly due to lower insurance income and higher operating expenses. The Covid-19 pandemic had a minor impact on the company's results for the period, apart from the effects from movements in interest rates and market prices.
Administration fees were NOK 158.1 million (152.3). Insurance income was NOK 81.3 million (111.4). The main reason for the decrease was the positive risk result last year relating to the paid-up policies.
Management income increased to NOK 182.4 million (167.2) as a result of increased assets under management.
Operating expenses increased to NOK 291.1 million (275.6), mainly driven by higher depreciation as a result of a shorter depreciation timeframe for IT-investments. A higher head count in response to the growing business volume also had an impact on operating expenses.
Net financial income, including returns on both the group policy portfolio and the corporate portfolio, amounted to NOK 36.0 million (41.5). The decrease was due to non-recurring gains from divestments last year.
The recognised return on the paid-up policy portfolio was 3.5 per cent (4.3). The average annual interest guarantee was 3.4 per cent.
Assets under management increased by NOK 5,026.5 million from year-end 2019. Total pension assets under management amounted to NOK 42,361.7 million (37,335.1) including the group policy portfolio of NOK 7,664.1 million (7,204.2).
The profit before tax expense decreased to NOK 56.2 million (61.1) mainly reflecting lower insurance income. The Covid-19 pandemic had a negligible impact on the segment's results for the quarter.
Administration fees were NOK 40.6 million (38.7). Insurance income decreased to NOK 18.2 million (45.8), due to a lower recognised risk result. Management income was NOK 49.4 million (44.8), reflecting growth in assets under management.
Operating expenses were NOK 68.2 million (81.5), the decrease reflecting impairment losses on IT systems in the fourth quarter last year.
Net financial income was NOK 16.2 million (13.3) as a result of good returns on real estate investments.
| NOK millions | Q4 2020 | Q4 2019 | 1.1.-31.12.2020 | 1.1.-31.12.2019 |
|---|---|---|---|---|
| Administration fees | 40.6 | 38.7 | 158.1 | 152.3 |
| Insurance income | 18.2 | 45.8 | 81.3 | 111.4 |
| Management income etc. | 49.4 | 44.8 | 182.4 | 167.2 |
| Operating expenses | (68.2) | (81.5) | (291.1) | (275.6) |
| Net operating income | 40.0 | 47.8 | 130.7 | 155.3 |
| Net financial income | 16.2 | 13.3 | 36.0 | 41.5 |
| Profit/(loss) before tax expense | 56.2 | 61.1 | 166.8 | 196.9 |
| Operating margin 1 | 36.97% | 36.97% | 30.99% | 36.05% |
| Recognised return on the paid-up policy portfolio 2 | 3.48% | 4.34% | ||
| Value-adjusted return on the paid-up policy portfolio 3 | 2.99% | 4.72% |
1 Defined as an alternative performance measure (APM). APMs are described at www.gjensidige.no/reporting in a document named APMs Gjensidige Forsikring Group Q4 2020. 2 Recognised return on the paid-up policy portfolio = realised return on the portfolio
3 Value-adjusted return on the paid-up policy portfolio = total return on the portfolio
The Group's investment portfolio includes all investment funds in the Group, except for investment funds in the Pension segment. The investment portfolio is split into two parts: a match portfolio and a free portfolio. The match portfolio is intended to correspond to the Group's technical provisions. It is invested in fixed-income instruments that match the duration and currency of the technical provisions. The free portfolio consists of various assets. The allocation of assets in this portfolio must be seen in conjunction with the Group's capitalisation and risk capacity, as well as the Group's risk appetite at all times. Results from the use of derivatives for tactical and risk management purposes are assigned to the respective asset classes. Currency risk in the investment portfolio is generally hedged close to 100 per cent, within a permitted range of +/- 10 per cent per currency.
The Covid-19 pandemic led to a significant downturn in the financial markets towards the end of the first quarter, resulting in a broad decline in most asset classes. Significant intervention by central banks and fiscal policy measures drove the market recovery during the rest of the year.
At the end of the period, the investment portfolio totalled NOK 58.9 billion (59.1). The financial result for the year was NOK 1,341.7 million (2,306.4), which corresponds to a return on total assets of 2.2 per cent (4.1).
| Result Q4 | Result 1.1.-31.12. | Carrying amount 31.12. | |||||
|---|---|---|---|---|---|---|---|
| NOK millions | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |
| Match portfolio | |||||||
| Fixed income - short duration 7 | 9.4 | 19.9 | 93.4 | 90.5 | 4,948.9 | 4,818.7 | |
| Bonds at amortised cost | 129.5 | 283.9 | 541.8 | 771.7 | 15,360.2 | 14,916.1 | |
| Current bonds 1 | 30.3 | 72.4 | (206.6) | 89.9 | 16,071.5 | 14,327.1 | |
| Match portfolio total | 169.1 | 376.3 | 428.6 | 952.1 | 36,380.6 | 34,062.0 | |
| Free portfolio | |||||||
| Fixed income - short duration 7 | 2.3 | 18.6 | 72.3 | 58.2 | 4,987.0 | 6,812.3 | |
| Other bonds 2 | 78.5 | 36.3 | 429.5 | 230.8 | 5,187.6 | 4,552.9 | |
| High yield bonds 3 | 24.5 | 24.0 | (36.2) | 105.4 | 402.3 | 1,101.8 | |
| Convertible bonds 3 | 202.6 | 83.7 | 172.6 | 168.1 | 1,680.8 | 1,725.3 | |
| Current equities 4 | 340.5 | 194.5 | 14.6 | 444.7 | 2,390.3 | 3,047.3 | |
| PE funds | 85.4 | (23.0) | (92.8) | 91.6 | 1,206.3 | 1,232.3 | |
| Properties | 221.4 | 134.5 | 384.4 | 373.6 | 5,128.5 | 4,803.9 | |
| Other 5 | 27.5 | (12.4) | (31.4) | (118.3) | 1,524.0 | 1,716.8 | |
| Free portfolio total | 982.7 | 456.2 | 913.1 | 1,354.3 | 22,506.8 | 24,992.4 | |
| Financial result from the investment portfolio 6 | 1,151.9 | 832.5 | 1,341.7 | 2,306.4 | 58,887.4 | 59,054.4 | |
| Financial income in Pension | 16.2 | 13.3 | 36.0 | 41.5 | |||
| Interest expense on subordinated debt Gjensidige Forsikring ASA |
(5.5) | (10.1) | (29.6) | (36.5) | |||
| Interest expense on the lease liability | (6.8) | (7.6) | (29.6) | (31.5) | |||
| Realised gains on subsidiaries | (1.5) | 1,580.3 | |||||
| Net income from investments | 1,155.7 | 826.6 | 1,318.5 | 3,860.3 |
1 The item includes discounting effects of the insurance liabilities in Denmark and Sweden, and a mismatch between interest rate adjustments on the liability side in Denmark and the corresponding interest rate hedge. Investments include mortgage, sovereign and corporate bonds, investment grade bond funds and loan funds containing secured debt. 2 The item includes investment grade and current bonds. Investment grade and emerging market bonds are investments in internationally diversified funds that are externally managed.
3 Investments in internationally diversified funds that are externally managed.
4Investments mainly in internationally diversified funds that are externally managed. The equity risk exposure is reduced by NOK 354.6 million due to derivatives.
5 The item includes currency hedging related to Gjensidige Sweden, Denmark and Baltics, lending, paid-in capital in Gjensidige Pensjonskasse, profit/loss effects from a total return swap with Gjensidige Pensjonskasse, hedge funds, commodities and finance-related expenses.
6 Defined as an alternative performance measure (APM). APMs are described at www.gjensidige.no/reporting in a document named APMs Gjensidige Forsikring Group Q4 2020. 7 The content of these items is identical as the previous items named Money market. The name change is related to the expected entrance of EU regulation 2017/1131 on money market funds into Norwegian law early 2021. The regulation involves a strict definition of money market instruments and, although concerning funds, is expected to restrict what one can label "Money market".
The match portfolio amounted to NOK 36.4 billion (34.1). The portfolio yielded a return of 1.2 per cent (2.8), excluding changes in the value of bonds recognised at amortised cost, reflecting the lower interest rate level as well as the market movements in the first quarter. Bonds recognised at amortised cost amounted to NOK 15.4 billion (14.9). Unrealised excess value amounted to NOK 1.0 billion (0.5) at the end of the period.
The reinvestment rate for new investments in the portfolio of bonds held at amortised cost was approximately 3.0 per cent on average for the year, while the reinvestment rate in the fourth quarter was approximately 2.0 per cent. The running yield on the portfolio of bonds held at amortised cost was 3.4 per cent at the end of the period. The average duration of the match portfolio was 3.4 years.
3 The geographical distribution is related to issuers and does not reflect actual currency exposure.
The average term to maturity for the corresponding insurance liabilities was 4.0 years.
The distribution of counterparty risk and credit rating is shown in the charts on page 13. Securities without an official credit rating amounted to NOK 7.7 billion (8.0). Of these securities, 11.9 per cent (4.3) were issued by Norwegian savings banks, while the remainder were mostly issued by Norwegian power producers and distributors, property companies, industry and municipalities. Bonds with a coupon linked to the development of the Norwegian consumer price index accounted for 2.4 per cent (2.5) of the match portfolio. The geographical distribution3 of the match portfolio is shown in the chart above.
| Per cent | Q4 2020 | Q4 2019 | 1.1.-31.12.2020 | 1.1.-31.12.2019 | 1.1.-31.12.2019 |
|---|---|---|---|---|---|
| Match portfolio | |||||
| Fixed income - short duration 7 | 0.2 | 0.4 | 1.9 | 1.8 | 1.8 |
| Bonds at amortised cost | 0.9 | 1.9 | 3.6 | 5.0 | 5.0 |
| Current bonds 1 | 0.2 | 0.5 | (1.3) | 0.6 | 0.6 |
| Match portfolio total | 0.5 | 1.1 | 1.2 | 2.8 | 2.8 |
| Free portfolio | |||||
| Money market 7 | 0.0 | 0.3 | 0.9 | 1.0 | 1.0 |
| Other bonds 2 | 1.5 | 0.8 | 7.6 | 4.9 | 4.9 |
| High yield bonds 3 | 5.8 | 2.2 | (7.5) | 10.5 | 10.5 |
| Convertible bonds 4 | 12.2 | 4.8 | 11.6 | 12.3 | 12.3 |
| Current equities 4 | 15.1 | 6.4 | 0.6 | 15.6 | 15.6 |
| PE funds | 7.2 | (1.7) | (7.7) | 6.9 | 6.9 |
| Properties | 4.4 | 2.8 | 7.8 | 8.0 | 8.0 |
| Other 5 | 2.1 | (1.1) | (2.4) | (12.1) | (12.1) |
| Free portfolio total | 4.4 | 1.9 | 3.6 | 6.0 | 6.0 |
| Return on investment portfolio 6 | 2.0 | 1.4 | 2.2 | 4.1 | 4.1 |
1The item includes discounting effects of the insurance liabilities in Denmark and Sweden, and a mismatch between interest rate adjustments on the liability side in Denmark and the corresponding interest rate hedge. Investments include mortgage, sovereign and corporate bonds, investment grade bond funds and loan funds containing secured debt. 2 The item includes investment grade and current bonds. Investment grade and emerging market bonds are investments in internationally diversified funds that are externally managed.
3 Investments in internationally diversified funds that are externally managed.
4 Investments mainly in internationally diversified funds that are externally managed. The equity risk exposure is reduced by NOK 354.6 million due to derivatives.
5 The item includes currency hedging related to Gjensidige Sweden, Denmark and Baltics, lending, paid-in capital in Gjensidige Pensjonskasse, profit/loss effects from a total return swap with Gjensidige Pensjonskasse, hedge funds, commodities and finance-related expenses.
6 Defined as an alternative performance measure (APM). APMs are described at www.gjensidige.no/reporting in a document named APMs Gjensidige Forsikring Group Q4 2020. 7 The content of these items is identical as the previous items named Money market. The name change is related to the expected entrance of EU regulation 2017/1131 on money market funds into Norwegian law early 2021. The regulation involves a strict definition of money market instruments and, although concerning funds, is expected to restrict what one can label "Money market".
The free portfolio amounted to NOK 22.5 billion (25.0) at the end of the year. The return was 3.6 per cent (6.0), reflecting market developments, as well as a general de-risking of the portfolio in the first quarter, followed by some re-risking thereafter.
The fixed-income instruments in the free portfolio amounted to NOK 12.3 billion (14.2), of which fixed income – short duration investments accounted for NOK 5.0 billion (6.8). The rest of the portfolio was invested in Norwegian government bonds and international bonds (investment grade, high yield and convertible bonds). The total fixed-income portfolio yielded a return of 4.2 per cent (4.4).
At the end of the period, the average duration in the portfolio was approximately 4.7 years. The distribution of counterparty risk and credit rating is shown in the charts on the next page. Securities without an official credit rating amounted to NOK 2.4 billion (3.5). Of these securities, 17.4 per cent (10.1) were issued by Norwegian savings banks, while the remainder were mostly issued by industry and municipalities. The geographical distribution4 of the fixed-income instruments in the free portfolio is shown in the chart above.
The total equity holding at the end of the period was NOK 3.6 billion (4.3), of which NOK 2.4 billion (3.0) consisted of current equities and NOK 1.2 billion (1.2) of PE funds. The return on current equities was 0.6 per cent (15.6). The weak performance was mainly driven by market turbulence and de-risking in the first quarter. PE funds yielded a return of minus 7.7 per cent (plus 6.9), mainly driven by weak performance of funds with exposure to the oil sector.
At the end of the period, the exposure to commercial real estate in the portfolio was NOK 5.1 billion (4.8). The property portfolio yielded a return of 7.8 per cent (8.0).
The financial result for the total investment portfolio was NOK 1,151.9 million (832.5) in the quarter. This corresponds to a return on financial assets of 2.0 per cent (1.4).
The match portfolio yielded 0.5 per cent (1.1), excluding changes in the value of the portfolio valued at amortised cost. The return on the free portfolio was 4.4 per cent (1.9).
All asset classes contributed positively in the fourth quarter, reflecting lower interest rates and credit spreads in combination with strong equity and commodity markets.
The Group had a total of 3,655 employees at the end of the fourth quarter, compared with 3,636 at the end of the third quarter.
The composition of the Group's employees was as follows: 1,896 (1,876) in general insurance operations in Norway, 87 (79) in Gjensidige Pensjonsforsikring, 742 (742) in Denmark, 248 (249) in Sweden and 682 (690) in the Baltic states (excluding agents). The figures in brackets refer to the number of employees at the end of the third quarter.
No significant events have occurred after the end of the period.
The Board has proposed a dividend based on the profit for the 2020 financial year of NOK 3,700 million (3,625). This corresponds to NOK 7.40 (7.25) per share. The regular dividend corresponds to a pay-out ratio of 75 per cent (72) of the Group profit after tax.
In addition, the board has declared a special dividend of NOK 1,200 million. This corresponds to NOK 2.40 per share and represents distribution of excess capital. For this special dividend, the Board has utilised its authorisation granted by the Annual General Meeting in 2020. The payment will take place on 4 February 2021.
Gjensidige targets high and stable nominal dividends to its shareholders, and a pay-out ratio over time of at least 80 per cent of profit after tax. When determining the size of the dividend, the expected future capital need will be taken into account. Over time, Gjensidige will also pay out excess capital.
The Group's annual financial and solvency targets through 2022 are as follows:
4 The geographical distribution is related to issuers and does not reflect actual currency exposure.
organic growth not financed through retained earnings, as well as providing a buffer for regulatory changes.
These are financial targets and should not be regarded as guidance for any specific quarter or year. Unexpected circumstances relating to the weather, the proportion of large losses and run-off gains or losses could contribute to a combined ratio that is above or below the annual target range.
Gjensidige's ambition is to become the most customer-oriented general insurance company in the Nordic region. The Group's priority is to retain its strong and unique position in Norway and to continue improving its profitability outside Norway. Furthermore, the Group will focus on ensuring continued capital discipline, including delivering attractive returns to shareholders. A fundamental prerequisite for long term value creation is sustainable choices and solutions. The top three priorities are contributing to a safer society, reduced CO2 emissions and responsible investments.
Geopolitical uncertainty, low interest rates and financial challenges in several key economies reflect an uncertain economic situation. As for the rest of the world, the pandemic has had a significant impact on the economies in Gjensidige's markets. However, there has been a strong rebound, particularly in the Nordics, thanks to large stimulus packages and gradual easing of restrictions. Although there is still considerable uncertainty, the forecast for economic activity in Gjensidige's markets is encouraging. The risk of pressure on insurance volumes in the wake of the pandemic is thus lower than initially expected.
Organic growth is expected to be in line with nominal GDP growth in Gjensidige's market areas in the Nordic and Baltic countries over time. On a Group level, near term growth is expected to be higher. In addition, profitable growth will be achieved by pursuing a disciplined acquisition strategy, as has been done successfully in the past.
The Covid-19 pandemic outbreak had a significant impact on the financial result in the first quarter of 2020, while the impact on Gjensidige's insurance operations so far has been slightly positive, reflecting lower activity. In general, although restrictions and recommendations affect daily life, we expect stable activity in our markets and claims at normal levels. However, with the
ongoing travel restrictions, we expect a lower level of claims for travel insurance in the near future.
In the next few years it is expected that Gjensidige's business model and the market participants will broadly stay the same. Gjensidige has different positions and preconditions for further growth and development in the different segments and geographies. Best practices will be implemented across segments and borders where natural and expedient. Profitability will be prioritised over growth.
A key strategic priority for the next few years is maintaining and cultivating the direct customer relationship. Gjensidige aims to achieve greater relevance and create sales opportunities by offering customers a broader value proposition than ever before – in terms of both services and products, alone or in partnership with other providers. The goal is to become an even better and more relevant partner for customers – a problem-solver with a stronger focus on claims prevention – and thereby further strengthening the customer relationship.
Continued investments in technology and data are key to reducing costs and achieving enhanced functionality and flexibility. This is necessary to enable more flexible partner integration and product modularity. The launch of next generation tariffs and CRM and investments in a new core system and IT infrastructure are important in order to succeed in becoming an analytics-driven company. This will result in better customer experiences, more efficient operations and create sufficient capacity for innovation. Gjensidige has started the process of developing and configuring its new core IT system. The investment is expected to be handled within the current cost ratio target, and will be made step-by-step, starting with Denmark.
Gjensidige has a robust investment strategy, although returns are affected by challenging market conditions.
The Group has high capital buffers in relation to internal risk models, statutory solvency requirements and its target rating. The Board considers the Group's capital situation and financial strength to be very strong.
There is always considerable uncertainty associated with the assessment of future developments. However, the Board remains confident in Gjensidige's ability to deliver solid earningsand dividend growth over time.
Oslo, 21 January 2021 The Board of Gjensidige Forsikring ASA
Gisele Marchand Chair of the Board
Tor Magne Lønnum Board member
Eivind Elnan Board member
Hilde M. Nafstad Board member
Ellen Kristin Enger Board member
Ruben Pettersen Board member
Vibeke Krag Board member
Terje Seljeseth Board member
Sebastian B.G. Kristiansen Board member
Gunnar Robert Sellæg Board member
Helge Leiro Baastad CEO
| NOK millions | Notes | Q4 2020 | Q4 2019 | 1.1.-31.12.2020 | 1.1.-31.12.2019 |
|---|---|---|---|---|---|
| Operating income | |||||
| Earned premiums from general insurance | 4 | 6,875.7 | 6,313.8 | 27,160.5 | 24,650.4 |
| Earned premiums from pension | 265.0 | 241.2 | 913.8 | 880.0 | |
| Other income including eliminations | 50.4 | 45.6 | 185.6 | 171.6 | |
| Total operating income | 3 | 7,191.2 | 6,600.6 | 28,259.9 | 25,702.0 |
| Net income from investments | |||||
| Results from investments in associates and joint ventures Interest income and dividend etc. from financial assets |
213.0 238.3 |
114.7 269.4 |
338.8 1,006.4 |
309.2 1,043.4 |
|
| Net changes in fair value on investments (incl. property) | 584.4 | 623.9 | (279.7) | 1,453.7 | |
| Net realised gain and loss on investments | 204.5 | (98.1) | 469.6 | 1,282.9 | |
| Interest expenses and expenses related to investments | (84.6) | (83.4) | (216.7) | (228.8) | |
| Total net income from investments | 1,155.7 | 826.6 | 1,318.5 | 3,860.3 | |
| Total operating income and net income from investments | 8,346.9 | 7,427.1 | 29,578.4 | 29,562.2 | |
| Claims | |||||
| Claims incurred etc. from general insurance | 5, 6 | (4,700.7) | (4,437.6) | (18,133.5) | (16,978.6) |
| Claims incurred etc. from pension | (206.2) | (156.7) | (674.5) | (616.3) | |
| Total claims | (4,906.9) | (4,594.3) | (18,808.0) | (17,594.9) | |
| Operating expenses | |||||
| Operating expenses from general insurance | (1,013.3) | (956.6) | (3,951.4) | (3,635.4) | |
| Operating expenses from pension | (68.2) | (81.5) | (291.1) | (275.6) | |
| Other operating expenses | (1.4) | (2.9) | (4.1) | (46.2) | |
| Amortisation and impairment losses of excess value - intangible assets | (43.5) | (63.2) | (182.1) | (256.4) | |
| Total operating expenses | (1,126.4) | (1,104.3) | (4,428.7) | (4,213.6) | |
| Total expenses | (6,033.3) | (5,698.5) | (23,236.6) | (21,808.5) | |
| Profit/(loss) before tax expense | 3 | 2,313.6 | 1,728.6 | 6,341.7 | 7,753.8 |
| Tax expense | (383.2) | (255.2) | (1,387.8) | (1,197.6) | |
| Profit/(loss) from continuing operations | 1,930.4 | 1,473.4 | 4,953.9 | 6,556.1 | |
| Profit/(loss) from discontinued operations | 37.6 | ||||
| Profit/(loss) from continuing and discontinued operations | 1,930.4 | 1,473.4 | 4,953.9 | 6,593.8 | |
| Profit/(loss) attributable to: | |||||
| Owners of the company continuing operations | 1,930.4 | 1,473.4 | 4,953.8 | 6,556.1 | |
| Owners of the company discontinued operations | 37.6 | ||||
| Non-controlling interests | 0.1 | 0.1 | |||
| Total | 1,930.4 | 1,473.4 | 4,953.9 | 6,593.8 | |
| Earnings per share from continuing and discontinued operations, NOK (basic and diluted) |
3.86 | 2.95 | 9.91 | 13.19 | |
| Earnings per share from continuing operations, NOK (basic and diluted) |
3.86 | 2.95 | 9.91 | 13.11 |
| NOK millions Q4 2020 |
Q4 2019 | 1.1.-31.12.2020 | 1.1.-31.12.2019 |
|---|---|---|---|
| Profit/(loss) from continuing and discontinued operations 1,930.4 |
1,473.4 | 4,953.9 | 6,593.8 |
| Other comprehensive income | |||
| Other comprehensive income that will not be reclassified subsequently to profit or loss |
|||
| Remeasurement of the net defined benefit liability/asset | (57.2) (117.1) |
(112.2) | (117.1) |
| Share of other comprehensive income of associates and joint ventures | (0.6) | (1.4) | |
| Tax on other comprehensive income that will not be reclassified subsequently to profit or loss |
14.3 29.3 |
28.0 | 29.3 |
| Total other comprehensive income that will not be reclassified subsequently to profit or loss |
(43.5) (87.9) |
(85.5) | (87.9) |
| Other comprehensive income that will be reclassified subsequently to profit or loss |
|||
| Exchange differences from foreign operations | (333.2) (3.0) |
436.3 | (67.3) |
| Tax on other comprehensive income that will be reclassified subsequently to profit or loss |
56.8 1.6 |
(67.2) | 17.1 |
| Total other comprehensive income that will be reclassified subsequently to profit or loss |
(276.4) (1.3) |
369.1 | (50.2) |
| Total other comprehensive income from continuing operations | (319.9) (89.2) |
283.5 | (138.1) |
| Comprehensive income from continuing and discontinued operations 1,610.6 |
1,384.2 | 5,237.4 | 6,455.7 |
| Comprehensive income attributable to: | |||
| Owners of the company continuing operations 1,610.6 |
1,384.2 | 5,237.3 | 6,418.0 |
| Owners of the company discontinued operations | 37.6 | ||
| Non-controlling interests | 0.1 | 0.1 | |
| Total 1,610.6 |
1,384.2 | 5,237.4 | 6,455.7 |
| NOK millions | Notes | 31.12.2020 | 31.12.2019 |
|---|---|---|---|
| Assets | |||
| Goodwill | 3,773.4 | 3,554.6 | |
| Other intangible assets | 1,132.4 | 1,124.8 | |
| Investments in associates and joint ventures | 3,760.2 | 3,318.6 | |
| Owner-occupied and right-of-use property, plant and equipment | 1,149.6 | 1,264.9 | |
| Pension assets | 338.5 | 244.3 | |
| Financial assets | |||
| Interest-bearing receivables from joint ventures | 8 | 2,365.6 | 2,401.4 |
| Financial derivatives | 8 | 1,294.3 | 934.1 |
| Shares and similar interests | 8 | 5,526.1 | 6,551.6 |
| Bonds and other securities with fixed income | 8 | 30,968.9 | 30,992.4 |
| Bonds held to maturity | 8 | 151.9 | 210.7 |
| Loans and receivables | 8 | 20,934.7 | 19,963.3 |
| Assets in life insurance with investment options | 8 | 34,586.4 | 29,989.4 |
| Receivables related to direct operations and reinsurance | 8 | 7,702.7 | 7,097.6 |
| Other assets and receivables | 8 | 565.0 | 1,192.0 |
| Cash and cash equivalents | 8 | 2,861.1 | 2,419.5 |
| Other assets | |||
| Deferred tax assets | 20.7 | 21.2 | |
| Reinsurers' share of insurance-related liabilities in general insurance, gross | 1,062.0 | 1,072.5 | |
| Prepaid expenses and earned, not received income | 118.3 | 53.2 | |
| Total assets | 118,312.0 | 112,405.9 | |
| Equity and liabilities | |||
| Equity | |||
| Share capital | 1,000.0 | 1,000.0 | |
| Share premium | 1,430.0 | 1,430.0 | |
| Natural perils capital | 2,612.9 | 2,676.3 | |
| Guarantee scheme provision | 715.5 | 676.3 | |
| Other equity | 19,525.4 | 20,409.0 | |
| Total equity attributable to owners of the company | 25,283.8 | 26,191.6 | |
| Non-controlling interests | 0.7 | 0.6 | |
| Total equity | 25,284.5 | 26,192.2 | |
| Insurance liabilities | |||
| Premium reserve in life insurance | 7,364.1 | 6,896.1 | |
| Provision for unearned premiums, gross, in general insurance | 11,314.5 | 10,499.1 | |
| Claims provision, gross | 7 | 28,534.3 | 28,164.8 |
| Other technical provisions | 419.2 | 410.4 | |
| Financial liabilities | |||
| Subordinated debt | 8 | 1,498.8 | 1,498.4 |
| Financial derivatives | 8 | 767.4 | 641.0 |
| Liabilities in life insurance with investment options | 8 | 34,586.4 | 29,989.4 |
| Other financial liabilities | 8 | 2,777.3 | 2,735.4 |
| Liabilities related to direct insurance and reinsurance | 8 | 783.4 | 709.4 |
| Other liabilities | |||
| Pension liabilities | 716.8 | 610.6 | |
| Lease liability | 1,016.4 | 1,125.1 | |
| Other provisions | 300.7 | 297.3 | |
| Current tax | 1,559.9 | 1,046.1 | |
| Deferred tax liabilities | 956.2 | 1,168.6 | |
| Accrued expenses and deferred income | 432.0 | 422.0 | |
| Total liabilities | 93,027.5 | 86,213.7 | |
| Total equity and liabilities | 118,312.0 | 112,405.9 |
| Re measure ment of the net |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| NOK millions | Share capital |
Own shares |
Share premium |
Other paid-in capital |
Perpetual Tier 1 capital |
Exchange differ ences |
defined benefit liab./asset |
Other earned equity |
Total equity |
| Equity as at 31.12.2018 attributable to owners of the company |
1,000.0 | (0.1) | 1,430.0 | 64.7 | 1,445.3 | 616.0 | (1,974.6) | 21,263.3 | 23,844.7 |
| Non-controlling interests as at 31.12.2018 | 0.5 | ||||||||
| Equity as at 31.12.2018 | 23,845.2 | ||||||||
| Adjustment on initial application of IFRS 16 | (61.4) | (61.4) | |||||||
| Equity as at 1.1.2019 | 23,783.8 | ||||||||
| 1.1.-31.12.2019 | |||||||||
| Comprehensive income Profit/(loss) (the controlling interests' share) |
53.9 | 6,539.8 | 6,593.7 | ||||||
| Total other comprehensive income | 0,0 | (50.1) | (87.9) | (138.1) | |||||
| Comprehensive income | 0,0 | 53.9 | (50.1) | (87.9) | 6,539.8 | 6,455.6 | |||
| Transactions with owners of the company | |||||||||
| Own shares | 0,0 | (9.2) | (9.2) | ||||||
| Paid dividend | (3,549.9) | (3,549.9) | |||||||
| Remeasurement of the net defined benefit liability/asset of liquidated companies |
4.4 | (4.4) | |||||||
| Equity-settled share-based payment transactions | 4.8 | 4.6 | 9.4 | ||||||
| Perpetual Tier 1 capital | (445.5) | (0.6) | (446.2) | ||||||
| Perpetual Tier 1 capital - interest paid | (51.4) | (51.4) | |||||||
| Total transactions with owners of the company | 0,0 | 4.8 | (496.9) | 4.4 | (3,559.6) | (4,047.3) | |||
| Equity as at 31.12.2019 attributable to owners of the company |
1,000.0 | 0,0 | 1,430.0 | 69.5 | 1,002.3 | 565.9 | (2,058.1) | 24,182.1 | 26,191.6 |
| Non-controlling interests as at 31.12.2019 | 0.6 | ||||||||
| Equity as at 31.12.2019 | 26,192.2 | ||||||||
| 1.1.-31.12.2020 | |||||||||
| Comprehensive income | |||||||||
| Profit/(loss) (the controlling interests' share) | 45.8 | 4,908.0 | 4,953.8 | ||||||
| Total other comprehensive income | 0.5 | 368.6 | (84.1) | (1.4) | 283.5 | ||||
| Comprehensive income | 0.5 | 45.8 | 368.6 | (84.1) | 4,906.6 | 5,237.3 | |||
| Transactions with owners of the company | |||||||||
| Own shares | 0,0 | (13.1) | (13.0) | ||||||
| Paid dividend | (6,124.9) | (6,124.9) | |||||||
| Equity-settled share-based payment transactions | 13.3 | 13.3 | |||||||
| Perpetual Tier 1 capital | 0.6 | (0.6) | |||||||
| Perpetual Tier 1 capital - interest paid | (46.5) | (46.5) | |||||||
| Total transactions with owners of the company | 0,0 | 13.3 | (45.8) | (6,138.6) | (6,171.0) | ||||
| Accounting policy change in Oslo Areal AS | 25.9 | 25.9 | |||||||
| Equity as at 31.12.2020 attributable to owners of the company |
1,000.0 | 0,0 | 1,430.0 | 83.3 | 1,002.2 | 934.5 | (2,142.2) | 22,976.1 | 25,283.8 |
| Non-controlling interests as at 31.12.2020 | 0.7 | ||||||||
| Equity as at 31.12.2020 | 25,284.5 |
| NOK millions | 1.1.-31.12.2020 | 1.1.-31.12.2019 |
|---|---|---|
| Cash flow from operating activities | ||
| Premiums paid, net of reinsurance | 32,866.1 | 30,499.5 |
| Claims paid, net of reinsurance | (18,943.3) | (19,365.9) |
| Net payment of loans to customers | 827.8 | |
| Net payment of deposits from customers | (589.9) | |
| Payment of interest from customers | 279.5 | |
| Payment of interest to customers | (15.0) | |
| Net receipts/payments of premium reserve transfers | (2,804.8) | (2,143.7) |
| Net receipts/payments from financial assets | 1,154.4 | (5,822.9) |
| Operating expenses paid, including commissions | (3,746.1) | (4,089.7) |
| Taxes paid | (1,185.3) | (797.8) |
| Net other receipts/payments | 9.8 | (17.4) |
| Net cash flow from operating activities | 7,350.8 | (1,235.7) |
| Cash flow from investing activities | ||
| Net receipts/payments from sale/acquisition of subsidiaries and associates/joint venture | 5,261.9 | |
| Net receipts/payments on sale/acquisition of owner-occupied property, plant and equipment and intangible assets | (513.2) | (438.5) |
| Net cash flow from investing activities | (513.2) | 4,823.4 |
| Cash flow from financing activities | ||
| Payment of dividend | (6,124.9) | (3,549.9) |
| Net receipts/payments on subordinated debt incl. interest | (45.5) | (47.5) |
| Net receipts/payments on loans to credit institutions | (140.9) | |
| Net receipts/payments on other short-term liabilities | 52.9 | |
| Net receipts/payments on interest on funding activities | (61.6) | |
| Net receipts/payments on sale/acquisition of own shares | (13.0) | (9.2) |
| Repayment of lease liabilities | (194.9) | (161.6) |
| Payment of interest related to lease liabilities | (29.9) | (32.2) |
| Tier 1 interest payments | (46.5) | (52.1) |
| Net cash flow from financing activities | (6,454.7) | (4,002.0) |
| Cash and cash equivalents at the start of the period | 2,419.5 | 2,839.9 |
| Net cash flow | 383.0 | (414.2) |
| Effect of exchange rate changes on cash and cash equivalents | 58.6 | (6.1) |
| Cash and cash equivalents at the end of the period | 2,861.1 | 2,419.5 |
| Specification of cash and cash equivalents | ||
| Cash and deposits with credit institutions | 2,861.1 | 2,419.5 |
| Total cash and cash equivalents | 2,861.1 | 2,419.5 |
| Cash flows from discontinued operations | ||
| Net cash flow from operating activities | (7.0) | |
| Net cash flow from investing activities | (318.8) | |
| Net cash flow from financing activities | (150.8) | |
| Total cash flows from discontinued operations | (476.6) |
The consolidated financial statements as of the fourth quarter of 2020, concluded on 31 December 2020, comprise Gjensidige Forsikring ASA and its subsidiaries (collectively referred to as the Group) and the Group's holdings in associated companies. Except for the changes described below, the accounting policies applied in the interim report is the same as those used in the annual report for 2019.
The consolidated financial statements as of the fourth quarter of 2020 have been prepared in accordance with IFRS and IAS 34 Interim Financial Reporting. The interim report does not include all the information required in a complete annual report and should be read in conjunction with the annual report for 2019.
A number of new standards, changes to standards and interpretations have been issued for financial years beginning after 1 January 2020. They have not been applied when preparing these consolidated financial statements. Those that may be relevant to Gjensidige are mentioned below. Gjensidige does not plan early implementation of these standards.
IFRS 9 addresses the accounting for financial instruments and is effective for annual periods beginning on or after 1 January 2018. The standard introduces new requirements for the classification and measurement of financial assets, including a new expected loss model for the recognition of impairment losses, and changed requirements for hedge accounting.
IFRS 9 contains three primary measurement categories for financial assets: amortised cost, fair value through other comprehensive income, and fair value through profit or loss. Financial assets will be classified either at amortised cost, at fair value through other comprehensive income, or at fair value through profit or loss, depending on how they are managed and which contractual cash flow properties they have. IFRS 9 introduces a new requirement regarding financial liabilities earmarked at fair value where changes in fair value that can be attributed to the liabilities' credit risk are presented in other comprehensive income rather than over profit or loss.
Amendments to IFRS 4 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (2016) The amendments to IFRS 4 permit entities that predominantly undertake insurance activities the option to defer the effective date of IFRS 9 until 1 January 2021. The effect of such a deferral is that the entities concerned may continue to report under the existing standard, IAS 39 Financial Instruments. In addition, the insurance sector of a financial conglomerate is allowed to defer the application of IFRS 9 until 1 January 2021, where all of the following conditions are met:
• no financial instruments are transferred between the insurance sector and any other sector of the financial conglomerate other than financial instruments that are measured at fair value with changes in fair value
recognised through the profit of loss account by both sectors involved in such transfers;
Gjensidige is a financial conglomerate which primarily operates insurance business and has therefore decided to make use of this exception. The IFRS 9 will be effective 1 January 2023, at the same date as IFRS 17.
IFRS 17 establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts issued. IFRS 17 is a complex standard that includes some fundamental differences to current accounting for liability measurement and profit recognition. Insurance contracts will be recognised at a risk-adjusted present value of the future cash flows plus an amount representing the unearned profit in the group of contracts (the contractual service margin). If a group of contracts is or become loss-making, the loss will be recognised immediately. Insurance revenue, insurance service expenses and insurance finance income or expenses will be presented separately. IFRS 17 is effective from 1 January 2023. The standard is expected to have an effect on the group's financial statements, significantly changing the measurement and presentation of income and expenses.
Based on our preliminary assessments and based on Gjensidige's current operations, other amendments to standards and interpretation statements will not have a significant effect.
The preparation of interim accounts involves the application of assessments, estimates and assumptions that affect the use of accounting policies and the amounts recognised for assets and liabilities, revenues and expenses. The actual results may deviate from these estimates. The most material assessments involved in applying the Group's accounting policies and the most important sources of uncertainty in the estimates are the same regarding preparing the interim report as in the annual report for 2019.
Comparable figures are based on IFRS. All amounts are shown in NOK millions unless otherwise indicated. Due to rounding-off differences, figures and percentages may not exactly add up to the exact total figures.
Notes are presented on a Group level. Separate notes for Gjensidige Forsikring ASA (GF ASA) are not presented as GF ASA is the material part of the Group and therefore the notes for the Group give a sufficient presentation of both the Group and GF ASA.
A complete or limited audit of the interim report has not been carried out.
For some insurance products, seasonal premiums are used. This is because the incidence of claims is not evenly distributed throughout the year but follows a stable seasonal pattern. Normally, premium income (earned premiums) is accrued evenly over the period of insurance, but for products with a seasonal pattern, premium income must also be allocated according to the incidence of claims. Gjensidige Forsikring has a seasonal premium for the following products: pleasure craft, snowmobiles and motorcycles. For example, for motorcycles, earned premiums for the period from April to September amount to a full 85 per cent of the annual premiums.
Another consequence of a seasonal premium is that if the customer cancels the insurance contract before the renewal date, only the portion of the seasonal premium is refunded for which the Company did not bear any risk. For motorcycle insurance taken out on 1 April, but cancelled on 1 October, the policyholder will only be refunded 15 per cent of the annual premium, even though the insurance was in effect only for six months.
The group has six reportable segments, as described below, which offers different products and services within different geographical areas. The Group's reportable segments are identified based on the Group's internal reporting. The Group CEO holds regular meetings with its reporting managers for the different segments, concerning performance management, which focuses on future measures to ensure performance and deliveries.
General insurance is the Group's core activity. General insurance is divided into five segments, mainly based on the customer's geographical placement. Other operational segments deliver products and services mainly to customers in Norway.
| Segment income 2 | Claims | Operating expenses | Net income from investments |
Segment result/profit/(loss) before tax expense |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Fourth quarter | ||||||||||
| NOK millions | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 |
| General Insurance Private | 2,406.7 | 2,230.1 | (1,382.1) | (1,375.3) | (320.2) | (304.3) | 704.4 | 550.5 | ||
| General Insurance Commercial | 2,270.5 | 2,099.5 | (1,563.8) | (1,476.9) | (229.6) | (194.4) | 477.0 | 428.2 | ||
| General Insurance Denmark | 1,501.1 | 1,301.1 | (1,051.2) | (1,001.2) | (224.6) | (200.9) | 225.3 | 99.0 | ||
| General Insurance Sweden | 395.3 | 364.7 | (302.9) | (263.2) | (89.0) | (83.3) | 3.4 | 18.2 | ||
| General Insurance Baltics | 289.1 | 292.7 | (200.4) | (189.9) | (84.1) | (83.4) | 4.6 | 19.4 | ||
| Pension | 314.5 | 286.0 | (206.2) | (156.7) | (68.2) | (81.5) | 16.2 | 13.3 | 56.2 | 61.1 |
| Eliminations etc. 1 | 14.2 | 26.5 | (200.3) | (131.1) | (110.7) | (156.5) | 1,139.5 | 813.3 | 842.7 | 552.2 |
| Total | 7,191.2 | 6,600.6 | (4,906.9) | (4,594.3) | (1,126.4) | (1,104.3) | 1,155.7 | 826.6 | 2,313.6 | 1,728.6 |
| Segment income 2 | Claims | Segment Net income from Operating expenses result/profit/(loss) investments before tax expense |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1.1.-31.12. | ||||||||||
| NOK millions | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 |
| General Insurance Private | 9,433.6 | 8,872.4 | (5,450.7) | (5,682.6) | (1,225.5) | (1,164.7) | 2,757.4 | 2,025.1 | ||
| General Insurance Commercial | 8,929.0 | 8,164.1 | (5,943.9) | (5,608.6) | (888.4) | (825.7) | 2,096.6 | 1,729.8 | ||
| General Insurance Denmark | 5,910.2 | 4,960.1 | (4,250.2) | (3,642.0) | (859.5) | (718.8) | 800.5 | 599.3 | ||
| General Insurance Sweden | 1,592.0 | 1,405.8 | (1,209.9) | (1,058.6) | (306.0) | (271.3) | 76.1 | 75.9 | ||
| General Insurance Baltics | 1,175.7 | 1,126.9 | (767.2) | (728.7) | (340.7) | (337.3) | 67.7 | 60.9 | ||
| Pension | 1,096.3 | 1,047.2 | (674.5) | (616.3) | (291.1) | (275.6) | 36.0 | 41.5 | 166.8 | 196.9 |
| Eliminations etc. 1 | 123.2 | 125.5 | (511.5) | (258.1) | (517.4) | (620.3) | 1,282.4 | 3,818.7 | 376.7 | 3,065.9 |
| Total | 28,259.9 | 25,702.0 | (18,808.0) (17,594.9) | (4,428.7) | (4,213.6) | 1,318.5 | 3,860.3 | 6,341.7 | 7,753.8 |
1 Eliminations etc. consist of internal eliminations and other income and expenses not directly attributable to one single segment, and large losses of NOK 431.1 million (163.4) for the year as a whole and NOK 172.1 (84.9) in the quarter. Interest on subordinated debt is included in Net income from investments.
2 There is no significant income between the segments at this level in 2020 and 2019.
| NOK millions | Q4 2020 | Q4 2019 | 1.1.-31.12.2020 | 1.1.-31.12.2019 |
|---|---|---|---|---|
| Earned premiums, gross | 7,072.0 | 6,485.9 | 27,797.9 | 25,371.9 |
| Ceded reinsurance premiums | (196.3) | (172.0) | (637.4) | (721.5) |
| Total earned premiums, net of reinsurance | 6,875.7 | 6,313.8 | 27,160.5 | 24,650.4 |
| NOK millions | Q4 2020 | Q4 2019 | 1.1.-31.12.2020 | 1.1.-31.12.2019 |
|---|---|---|---|---|
| Gross claims | (4,830.5) | (4,580.1) | (18,521.3) | (17,396.0) |
| Claims, reinsurers' share | 129.8 | 142.5 | 387.8 | 417.4 |
| Total claims incurred etc. from general insurance | (4,700.7) | (4,437.6) | (18,133.5) | (16,978.6) |
| NOK millions | Q4 2020 | Q4 2019 | 1.1.-31.12.2020 | 1.1.-31.12.2019 |
|---|---|---|---|---|
| Earned premiums from general insurance | 6,875.7 | 6,313.8 | 27,160.5 | 24,650.4 |
| Run-off gains/(losses) for the period, net of reinsurance 1 | 259.1 | 338.0 | 1,122.3 | 1,363.2 |
| In per cent of earned premiums from general insurance | 3.8 | 5.4 | 4.1 | 5.5 |
1 Run-off gains/(losses) from general insurance includes run-off from the general insurance segments in addition to run-off on Corporate Centre/reinsurance.
| NOK millions | 31.12.2020 | 31.12.2019 |
|---|---|---|
| Claims provision, gross, as at 1 January | 28,164.8 | 29,355.8 |
| Claims for the year | 19,583.1 | 18,669.8 |
| Claims incurred in prior years, gross | (1,076.3) | (1,271.3) |
| Claims paid | (19,027.9) | (18,710.8) |
| Discounting of claims provisions | 10.9 | 33.2 |
| Change in discounting and inflation rate | 165.2 | 198.1 |
| Exchange differences | 714.6 | (110.0) |
| Claims provision, gross, at the end of the period | 28,534.3 | 28,164.8 |
| Discounted claims provision, gross - annuities | 6,561.3 | 5,904.9 |
| Nominal claims provision, gross - annuities | 6,469.6 | 6,203.7 |
The claims provisions shall cover future claims payments. The claims provisions for insurances with annuity payments are converted to present value (discounted), whereas other provisions are undiscounted.
The reason why the claims provisions for annuities are discounted is due to very long cash flows and substantial future interest income. The claims for occupational injuries in Denmark are paid either as annuities or as lump-sum indemnities (which are calculated mainly as discounted annuities). Therefore, it is most expedient to regard the whole portfolio as annuities. For
Swedish MTPL personal injuries are paid as lifelong annuities and for the Baltics some MTPL bodily injury claims are paid as annuities. The discount rate used is a swap interest rate.
Over the next two years, average annual run-off gains are expected to be around NOK 1,000 million, moving the expected reported combined ratio to the lower end of the 86-89 corridor (undiscounted).
Financial assets and liabilities measured at fair value are carried at the amount each asset/liability can be settled to in an orderly transaction between market participants at the measurements date at the prevailing market conditions.
Different valuation techniques and methods are used to estimate fair value depending on the type of financial instruments and to which extent they are traded in active markets. Instruments are classified in their entirety in one of three valuation levels in a hierarchy based on the lowest level input that is significant to the fair value measurement in its entirety.
The different valuation levels and which financial assets/liabilities that are included in the respective levels are accounted for below.
Quoted prices in active markets are considered the best estimate of an asset/liability's fair value. A financial asset/liability is considered valued based on quoted prices in active markets if fair value is estimated based on easily and regularly available prices and these prices represent actual and regularly occurring transactions at arm's length principle. Financial assets/liabilities valued based on quoted prices in active markets are classified as level one in the valuation hierarchy.
The following financial assets are classified as level one in the valuation hierarchy
When quoted prices in active markets are not available, the fair value of financial assets/liabilities is preferably estimated based on valuation techniques which are based on observable market data.
A financial asset/liability is considered valued based on observable market data if fair value is estimated with reference to prices that are not quoted but are observable either directly (as prices) or indirectly (derived from prices).
The following financial assets/liabilities are classified as level two in the valuation hierarchy
Valuation based on non-observable market data When neither quoted prices in active markets nor observable market data is available, the fair value of financial assets/liabilities is estimated based on valuation techniques which are based on non-observable market data.
A financial asset/liability is considered valued based on nonobservable market data if fair value is estimated without being based on quoted prices in active markets or observable market data. Financial assets/liabilities valued based on non-observable market data are classified as level three in the valuation hierarchy.
The following financial assets are classified as level three in the valuation hierarchy
In consultation with the Investment Performance and Risk Measurement department, the Chief Investment Officer decides which valuation models will be used when valuing financial assets classified as level three in the valuation hierarchy. The models are evaluated as required. The fair value and results of the investments and compliance with the stipulated limits are reported weekly to the Chief Financial Officer and Chief Executive Officer, and monthly to the Board.
Shares and similar interests (mainly unlisted private equity investments, loan funds and real estate funds), as well as bonds and other fixed-income securities are included in level three in the valuation hierarchy. General market downturns or a worsening of the outlook can affect expectations of future cash flows or the applied multiples, which in turn will lead to a reduction in value of shares and similar interests. Bonds and other fixed-income securities primarily have interest rate and credit risk as a result of changes in the yield curve or losses due to unexpected default on Gjensidige's debtors. However, the sensitivity to changes in the yield curve is reduced through hedging using interest rate swaps classified as level 2.
| Carrying Carrying |
||||
|---|---|---|---|---|
| amount as at | Fair value as at | amount as at | Fair value as at | |
| NOK millions | 31.12.2020 | 31.12.2020 | 31.12.2019 | 31.12.2019 |
| Financial assets | ||||
| Financial derivatives | ||||
| Financial derivatives at fair value through profit or loss | 1,291.2 | 1,291.2 | 934.1 | 934.1 |
| Financial derivatives subject to hedge accounting | 3.2 | 3.2 | ||
| Financial assets at fair value through profit or loss, designated upon initial recognition | ||||
| Shares and similar interests | 5,526.1 | 5,526.1 | 6,551.6 | 6,551.6 |
| Bonds and other fixed income securities | 30,968.9 | 30,968.9 | 30,992.4 | 30,992.4 |
| Shares and similar interests in life insurance with investment options | 29,467.1 | 29,467.1 | 25,792.8 | 25,792.8 |
| Bonds and other fixed income securities in life insurance with investment options | 5,119.3 | 5,119.3 | 4,196.5 | 4,196.5 |
| Loans | 1.9 | 1.9 | 2.2 | 2.2 |
| Financial assets held to maturity | ||||
| Bonds held to maturity | 151.9 | 153.0 | 210.7 | 212.1 |
| Loans and receivables | ||||
| Bonds and other fixed income securities classified as loans and receivables | 20,927.0 | 22,300.8 | 19,951.8 | 20,598.9 |
| Loans | 2,371.5 | 2,371.5 | 2,410.8 | 2,410.8 |
| Receivables related to direct operations and reinsurance | 7,702.7 | 7,702.7 | 7,097.6 | 7,097.6 |
| Other assets and receivables | 565.0 | 565.0 | 1,192.0 | 1,192.0 |
| Cash and cash equivalents | 2,861.1 | 2,861.1 | 2,419.5 | 2,419.5 |
| Total financial assets | 106,956.8 | 108,331.7 | 101,751.9 | 102,400.5 |
| Financial liabilities | ||||
| Financial derivatives | ||||
| Financial derivatives at fair value through profit or loss | 767.4 | 767.4 | 641.0 | 641.0 |
| Financial liabilities at fair value through profit or loss, designated upon initial recognition | ||||
| Liabilities in life insurance with investment options | 34,586.4 | 34,586.4 | 29,989.4 | 29,989.4 |
| Financial liabilities at amortised cost | ||||
| Subordinated debt | 1,498.8 | 1,512.7 | 1,498.4 | 1,505.9 |
| Other financial liabilities | 2,777.3 | 2,777.3 | 2,735.4 | 2,735.4 |
| Liabilities related to direct insurance and reinsurance | 783.4 | 783.4 | 709.4 | 709.4 |
| Total financial liabilities | 40,413.4 | 40,427.2 | 35,573.6 | 35,581.1 |
| Gain/(loss) not recognised in profit or loss | 1,361.0 | 641.1 |
The table shows a valuation hierarchy where financial assets/liabilities are divided into three levels based on the method of valuation.
| Level 1 | Level 2 | Level 3 | ||
|---|---|---|---|---|
| Valuation | Valuation | |||
| techniques | techniques | |||
| Quoted prices in active |
based on observable |
based on non observable |
||
| NOK millions | markets | market data | market data | Total |
| Financial assets | ||||
| Financial derivatives | ||||
| Financial derivatives at fair value through profit or loss | 1,291.2 | 1,291.2 | ||
| Financial derivatives subject to hedge accounting | 3.2 | 3.2 | ||
| Financial assets at fair value through profit or loss, designated upon initial recognition | ||||
| Shares and similar interests | 146.2 | 4,101.8 | 1,278.2 | 5,526.1 |
| Bonds and other fixed income securities | 12,849.4 | 17,841.5 | 277.9 | 30,968.9 |
| Shares and similar interests in life insurance with investment options | 29,467.1 | 29,467.1 | ||
| Bonds and other fixed income securities in life insurance with investment options | 5,119.3 | 5,119.3 | ||
| Loans | 1.9 | 1.9 | ||
| Financial assets at amortised cost | ||||
| Bonds held to maturity | 153.0 | 153.0 | ||
| Bonds and other fixed income securities classified as loans and receivables | 22,300.8 | 22,300.8 | ||
| Loans | 2,371.5 | 2,371.5 | ||
| Financial liabilities | ||||
| Financial derivatives | ||||
| Financial derivatives at fair value through profit or loss | 767.4 | 767.4 | ||
| Financial liabilities at fair value through profit or loss, designated upon initial recognition | ||||
| Liabilities in life insurance with investment options | 34,586.4 | 34,586.4 | ||
| Financial liabilities at amortised cost | ||||
| Subordinated debt | 1,512.7 | 1,512.7 |
The table shows a valuation hierarchy where financial assets/liabilities are divided into three levels based on the method of valuation.
| Level 1 | Level 2 | Level 3 | ||
|---|---|---|---|---|
| Valuation | Valuation | |||
| Quoted prices | techniques based on |
techniques based on non |
||
| in active | observable | observable | ||
| NOK millions | markets | market data | market data | Total |
| Financial assets | ||||
| Financial derivatives | ||||
| Financial derivatives at fair value through profit or loss | 934.1 | 0,0 | 934.1 | |
| Financial assets at fair value through profit or loss, designated upon initial recognition | ||||
| Shares and similar interests | 69.2 | 5,176.0 | 1,306.3 | 6,551.6 |
| Bonds and other fixed income securities | 10,783.6 | 19,500.1 | 708.6 | 30,992.4 |
| Shares and similar interests in life insurance with investment options | 25,792.8 | 25,792.8 | ||
| Bonds and other fixed income securities in life insurance with investment options | 4,196.5 | 4,196.5 | ||
| Loans | 2.2 | 2.2 | ||
| Financial assets at amortised cost | ||||
| Bonds held to maturity | 212.1 | 212.1 | ||
| Bonds and other fixed income securities classified as loans and receivables | 20,598.9 | 20,598.9 | ||
| Loans | 2,410.8 | 2,410.8 | ||
| Financial liabilities | ||||
| Financial derivatives | ||||
| Financial derivatives at fair value through profit or loss | 641.0 | 641.0 | ||
| Financial liabilities at fair value through profit or loss, designated upon initial recognition | ||||
| Liabilities in life insurance with investment options | 29,989.4 | 29,989.4 | ||
| Financial liabilities at amortised cost | ||||
| Subordinated debt | 1,505.9 | 1,505.9 | ||
| Amount of net | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| realised/ | |||||||||
| unrealised gains | |||||||||
| Net realised/ | recognised in | ||||||||
| unrealised | profit or loss that | ||||||||
| gains | are attributable | ||||||||
| recognised | Transfers | Cur | to instruments | ||||||
| As at | in profit or | Pur | Settle | into/out of | rency | As at | held as at | ||
| NOK millions | 1.1.2020 | loss | chases | Sales | ments | level 3 | effect | 31.12.2020 | 31.12.2020 |
| Shares and similar interests | 1,306.3 | (126.9) | 164.8 | (66.4) | 0.4 | 1,278.2 | (126.9) | ||
| Bonds and other fixed income securities | 708.6 | (19.1) | (469.2) | 57.7 | 277.9 | ||||
| Loans at fair value | 2.2 | 1.6 | (1.9) | 1.9 | 1.8 | ||||
| Total | 2,017.1 | (144.4) | 164.8 | (537.6) | 58.1 | 1,558.0 | (125.1) |
Reconciliation of financial assets valued based on non-observable market data (level 3) 2019
| NOK millions Shares and similar interests Bonds and other fixed income securities |
As at 1.1.2019 1,359.1 778.7 |
Net realised/ unrealised gains recognised in profit or loss (41.9) 89.2 |
Pur chases 178.5 |
Sales (189.4) (155.4) |
Settle ments |
Transfers into/out of level 3 |
Cur rency effect 0,0 (3.9) |
As at 31.12.2019 1,306.3 708.6 |
Amount of net realised/ unrealised gains recognised in profit or loss that are attributable to instruments held as at 31.12.2019 (42.8) |
|---|---|---|---|---|---|---|---|---|---|
| Loans at fair value | (1.7) | 3.8 | 2.2 | ||||||
| Total | 2,137.8 | 47.3 | 178.5 | (346.5) | 3.8 | (3.9) | 2,017.1 | (42.8) | |
| NOK millions | 31.12.2020 | 31.12.2019 |
|---|---|---|
| Guarantees and committed capital | ||
| Committed capital, not paid | 582.8 | 590.5 |
| Credit facility Oslo Areal | 1,634.4 | 1,598.6 |
As part of its ongoing financial management Gjensidige has committed, but not paid up to NOK 582.8 million (590.5) in loan funds containing secured debt and various private equity and real estate funds, over and above the amounts recognised in the balance sheet.
The timing of the outflow of capital is dependent on when the funds are making capital calls from their investors. Average remaining operating time for the funds, based on fair value, is slightly less than three years (four) and slightly less than four years (five) in average including option for of extension.
Gjensidige Forsikring has granted a loan to Oslo Areal amounting to approximately NOK 2.4 billion. The loan is interestbearing and total loan limit is NOK 4.0 billion.
Gjensidige Forsikring is liable externally for any insurance claim arising in the cooperating mutual fire insurers' fire insurance operations.
According to the agreement with Gjensidige Pensjonskasse the return, if not sufficient to cover the pension plans guaranteed interest rate, should be covered from the premium fund or through contribution from Gjensidige Forsikring.
There have not been any significant transactions with related parties other than ordinary current agreements conducted at arm's length distance.
| Q4 2020 | Q4 2019 | 1.1.-31.12.2020 | 1.1.-31.12.2019 | ||
|---|---|---|---|---|---|
| Gjensidige Forsikring Group | |||||
| Total equity attributable to owners of the company | NOK millions | 25,283.8 | 26,191.6 | ||
| Equity per share | NOK | 50.6 | 52.4 | ||
| Earnings per share, basic and diluted 1 | NOK | 3.86 | 2.95 | 9.91 | 13.19 |
| Return on equity, annualised 2 | % | 19.2 | 28.2 | ||
| Return on tangible equity, annualised 2 | % | 23.9 | 35.6 | ||
| Return on investment portfolio 2 | % | 2.0 | 1.4 | 2.2 | 4.1 |
| Total eligible own funds to meet the group SCR 3 | NOK millions | 20,977.9 | 21,855.1 | ||
| Group SCR margin 4 | % | 198.0 | 205.7 | ||
| Total eligible own funds to meet the minimum consolidated group SCR 5 | NOK millions | 17,885.1 | 18,670.7 | ||
| Minimum consolidated group SCR margin 6 | % | 346.9 | 373.6 | ||
| Gjensidige Forsikring ASA | |||||
| Total eligible own funds to meet the SCR 7 | NOK millions | 20,308.6 | 21,261.9 | ||
| SCR margin 8 | % | 208.5 | 219.2 | ||
| Total eligible own funds to meet the MCR 9 | NOK millions | 17,363.2 | 18,220.9 | ||
| MCR margin 10 | % | 396.2 | 434.7 | ||
| Issued shares, at the end of the period | Number | 500,000,000 | 500,000,000 | ||
| General Insurance | |||||
| Gross premiums written 2 | |||||
| Private | NOK millions | 2,277.0 | 2,036.9 | 9,807.1 | 9,136.3 |
| Commercial | NOK millions | 2,015.7 | 1,893.6 | 9,477.0 | 8,692.8 |
| Denmark | NOK millions | 1,251.0 | 1,174.8 | 6,109.0 | 5,291.6 |
| Sweden | NOK millions | 412.2 | 404.4 | 1,653.4 | 1,440.7 |
| Baltics | NOK millions | 293.0 | 279.5 | 1,209.1 | 1,179.3 |
| Corporate Centre/reinsurance | NOK millions | 0.1 | 114.4 | 113.6 | |
| Total General Insurance | NOK millions | 6,248.9 | 5,789.3 | 28,370.1 | 25,854.2 |
| Premiums, net of reinsurance 2 | % | 97.8 | 97.2 | ||
| Earned premiums | |||||
| Private | NOK millions | 2,406.7 | 2,230.1 | 9,433.6 | 8,872.4 |
| Commercial | NOK millions | 2,270.5 | 2,099.5 | 8,929.0 | 8,164.1 |
| Denmark | NOK millions | 1,501.1 | 1,301.1 | 5,910.2 | 4,960.1 |
| Sweden | NOK millions | 395.3 | 364.7 | 1,592.0 | 1,405.8 |
| Baltics | NOK millions | 289.1 | 292.7 | 1,175.7 | 1,126.9 |
| Corporate Centre/reinsurance | NOK millions | 13.1 | 25.8 | 120.0 | 121.2 |
| Total General Insurance | NOK millions | 6,875.7 | 6,313.8 | 27,160.5 | 24,650.4 |
| Loss ratio 2 | |||||
| Private | % | 57.4 | 61.7 | 57.8 | 64.0 |
| Commercial | % | 68.9 | 70.3 | 66.6 | 68.7 |
| Denmark | % | 70.0 | 77.0 | 71.9 | 73.4 |
| Sweden | % | 76.6 | 72.2 | 76.0 | 75.3 |
| Baltics | % | 69.3 | 64.9 | 65.3 | 64.7 |
| Total General Insurance | % | 68.4 | 70.3 | 66.8 | 68.9 |
| Underlying frequency loss ratio 2 | |||||
| Private | % | 61.1 | 66.5 | 61.5 | 68.9 |
| Commercial | % | 70.3 | 74.9 | 68.7 | 71.9 |
| Denmark | % | 72.2 | 73.8 | 71.6 | 75.4 |
| Sweden | % | 77.4 | 76.2 | 78.0 | 77.5 |
| Baltics | % | 66.8 | 68.3 | 66.4 | 67.8 |
| Total General Insurance | % | 68.3 | 72.3 | 67.4 | 71.8 |
| Cost ratio 2 | |||||
| Private | % | 13.3 | 13.6 | 13.0 | 13.1 |
| Commercial | % | 10.1 | 9.3 | 9.9 | 10.1 |
| Denmark | % | 15.0 | 15.4 | 14.5 | 14.5 |
| Sweden | % | 22.5 | 22.8 | 19.2 | 19.3 |
| Baltics | % | 29.1 | 28.5 | 29.0 | 29.9 |
| Total General Insurance | % | 14.7 | 15.2 | 14.5 | 14.7 |
| Q4 2020 | Q4 2019 | 1.1.-31.12.2020 | 1.1.-31.12.2019 | ||
|---|---|---|---|---|---|
| Combined ratio 2 | |||||
| Private | % | 70.7 | 75.3 | 70.8 | 77.2 |
| Commercial | % | 79.0 | 79.6 | 76.5 | 78.8 |
| Denmark | % | 85.0 | 92.4 | 86.5 | 87.9 |
| Sweden | % | 99.1 | 95.0 | 95.2 | 94.6 |
| Baltics | % | 98.4 | 93.4 | 94.2 | 94.6 |
| Total General Insurance | % | 83.1 | 85.4 | 81.3 | 83.6 |
| Combined ratio discounted 2 | % | 82.3 | 85.6 | 81.0 | 83.0 |
| Pension | |||||
| Assets under management pension, at the end of the period | NOK millions | 42,361.7 | 37,335.1 | ||
| of which the group policy portfolio | NOK millions | 7,664.1 | 7,204.2 | ||
| Operating margin 2 | % | 36.97 | 36.97 | 30.99 | 36.05 |
| Recognised return on the paid-up policy portfolio 11 | % | 3.48 | 4.34 | ||
| Value-adjusted return on the paid-up policy portfolio 12 | % | 2.99 | 4.72 | ||
| Share of shared commercial customers 13 | % | 66.8 | 67.5 | ||
| Return on equity, annualised 2 | % | 13.1 | 17.9 | ||
1 Earnings per share from continuing and discontinued operations, basic and diluted = the shareholders' share of the profit or loss from continuing and discontinued operations in the period/average number of outstanding shares in the period
2 Defined as alternative performance measure (APM). APMs are described on www.gjensidige.no/reporting in document named APMs Gjensidige Forsikring Group Q4 2020.
3 Total eligible own funds to meet the group SCR = Total eligible own funds to meet the group solvency capital requirement, where the group solvency capital requirement is based on approved partial internal model. Total comprehensive income for the year-to-date is included in the solvency calculations, minus a formulaic dividend pay-out ratio based on 80 per cent of year to date Group profit after tax. In case of loss, the formulaic dividend is set at 0.
4 Group SCR margin = Ratio of total eligible own funds to group solvency capital requirement, where the group solvency capital requirement is based on approved partial internal model.
5Total eligible own funds to meet the minimum consolidated group SCR = Total eligible own funds to meet the minimum consolidated group solvency capital requirement, where the minimum consolidated group solvency capital requirement is based on approved partial internal model. Total comprehensive income for the year-to-date is included in the solvency calculations, minus a formulaic dividend pay-out ratio based on 80 per cent of year to date Group profit after tax. In case of loss, the formulaic dividend is set at 0.
6 Minimum consolidated group SCR margin = Ratio of eligible own funds to minimum consolidated group solvency capital requirement, where the minimum consolidated group solvency capital requirement is based on approved partial internal model.
7 Total eligible own funds to meet the SCR = Total eligible own funds to meet the solvency capital requirement for Gjensidige Forsikring ASA, where the solvency capital requirement is based on approved partial internal model. Total comprehensive income for the year-to-date is included in the solvency calculations, minus a formulaic dividend pay-out ratio based on 80 per cent of year to date Group profit after tax. In case of loss, the formulaic dividend is set at 0.
8 SCR margin = Ratio of total eligible own funds to solvency capital requirement for Gjensidige Forsikring ASA, where the solvency capital requirement is based on approved partial internal model.
9Total eligible own funds to meet the MCR = Total eligible own funds to meet the minimum capital requirement for Gjensidige Forsikring ASA, where the minimum capital requirement is based on approved partial internal model. Total comprehensive income for the year-to-date is included in the solvency calculations, minus a formulaic dividend pay-our ratio based on 80 per cent of year to date Group profit after tax. In case of loss, the formulaic dividend is set at 0.
10MCR margin = Ratio of eligible own funds to minimum capital requirement for Gjensidige Forsikring ASA, where the minimum capital requirement is based on approved partial internal model.
11 Recognised return on the paid-up policy portfolio = realised return on the portfolio
12 Value-adjusted return on the paid-up policy portfolio = total return on the portfolio
13 Share of shared commercial customers = customers having both pension and general insurance products with Gjensidige
| Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | |
|---|---|---|---|---|---|---|---|---|---|
| NOK millions | 2020 | 2020 | 2020 | 2020 | 2019 | 2019 | 2019 | 2019 | 2018 |
| Earned premiums from general insurance | 6,875.7 | 6,949.0 | 6,765.3 | 6,570.6 | 6,313.8 | 6,317.0 | 6,082.8 | 5,936.7 | 6,081.2 |
| Other income | 315.5 | 269.5 | 252.3 | 262.1 | 286.7 | 823.5 | 1,076.0 | 714.7 | 511.7 |
| Total operating income | 7,191.2 | 7,218.4 | 7,017.5 | 6,832.7 | 6,600.6 | 7,140.6 | 7,158.9 | 6,651.5 | 6,592.9 |
| Total net income from investments | 1,155.7 | 544.6 | 1,151.3 | (1,533.1) | 826.6 | 264.3 | 500.5 | 2,268.9 | (224.6) |
| Total operating income and net income from investments |
8,346.9 | 7,763.0 | 8,168.9 | 5,299.6 | 7,427.1 | 7,404.9 | 7,659.3 | 8,920.4 | 6,368.3 |
| Claims incurred etc. from general insurance | (4,700.7) | (4,467.8) | (4,440.8) | (4,524.2) | (4,437.6) | (4,367.7) | (3,916.4) | (4,256.8) | (3,268.9) |
| Claims incurred etc. from pension | (206.2) | (162.3) | (149.8) | (156.2) | (156.7) | (718.5) | (974.9) | (615.6) | (408.1) |
| Total claims etc. | (4,906.9) | (4,630.1) | (4,590.6) | (4,680.4) | (4,594.3) | (5,086.3) | (4,891.4) | (4,872.4) | (3,676.9) |
| Operating expenses from general insurance | (1,013.3) | (968.8) | (980.6) | (988.7) | (956.6) | (888.2) | (908.7) | (881.8) | (897.9) |
| Other operating expenses | (113.1) | (115.8) | (120.9) | (127.5) | (147.6) | (158.8) | (136.3) | (135.5) | (132.3) |
| Total operating expenses | (1,126.4) | (1,084.5) | (1,101.6) | (1,116.2) | (1,104.3) | (1,047.0) | (1,045.0) | (1,017.3) | (1,030.2) |
| Total expenses | (6,033.3) | (5,714.6) | (5,692.1) | (5,796.6) | (5,698.5) | (6,133.3) | (5,936.4) | (5,889.7) | (4,707.1) |
| Profit/(loss) for the period before tax expense | 2,313.6 | 2,048.4 | 2,476.8 | (497.0) | 1,728.6 | 1,271.5 | 1,722.9 | 3,030.7 | 1,661.2 |
| Underwriting result general insurance | 1,161.8 | 1,512.3 | 1,343.8 | 1,057.6 | 919.6 | 1,061.1 | 1,257.6 | 798.1 | 1,914.4 |
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | |
| NOK millions | 2018 | 2018 | 2018 | 2017 | 2017 | 2017 | 2017 | 2016 | 2016 |
| Earned premiums from general insurance | 6,118.1 | 5,987.2 | 5,866.3 | 5,969.5 | 6,056.4 | 5,824.7 | 5,547.7 | 5,685.6 | 5,705.5 |
| Other income Total operating income |
499.2 6,617.4 |
595.0 6,582.1 |
602.8 6,469.1 |
522.9 6,492.3 |
553.6 6,610.0 |
352.2 6,177.0 |
539.1 6,086.8 |
476.5 6,162.1 |
440.2 6,145.6 |
| Total net income from investments | 429.7 | 370.4 | 254.7 | 487.1 | 475.5 | 471.0 | 568.6 | 541.5 | 709.2 |
| Total operating income and net income from investments |
7,047.1 | 6,952.5 | 6,723.8 | 6,979.5 | 7,085.5 | 6,648.0 | 6,655.4 | 6,703.6 | 6,854.8 |
| Claims incurred etc. from general insurance | (4,591.7) | (4,371.0) | (4,559.5) | (4,468.4) | (4,013.7) | (3,961.7) | (3,957.9) | (4,013.8) | (4,004.3) |
| Claims incurred etc. from pension | (406.1) | (503.0) | (516.4) | (444.9) | (478.1) | (282.6) | (456.2) | (387.1) | (371.2) |
| Total claims etc. | (4,997.8) | (4,874.0) | (5,075.9) | (4,913.3) | (4,491.9) | (4,244.2) | (4,414.1) | (4,400.9) | (4,375.5) |
| Operating expenses from general insurance | (953.0) | (909.3) | (895.7) | (945.7) | (892.5) | (890.7) | (857.6) | (971.3) | (989.4) |
| Other operating expenses | (132.3) | (134.3) | (147.3) | (124.9) | (123.1) | (132.1) | (121.5) | (120.0) | (115.7) |
| Total operating expenses | (1,085.3) | (1,043.6) | (1,043.0) | (1,070.7) | (1,015.6) | (1,022.8) | (979.0) | (1,091.3) | (1,105.1) |
| Total expenses | (6,083.1) | (5,917.6) | (6,118.8) | (5,984.0) | (5,507.5) | (5,267.0) | (5,393.1) | (5,492.2) | (5,480.6) |
| Profit/(loss) for the period before tax expense | 964.0 | 1,034.9 | 605.0 | 995.5 | 1,578.1 | 1,381.0 | 1,262.2 | 1,211.4 | 1,374.2 |
| NOK millions | Q4 2020 | Q4 2019 | 1.1.-31.12.2020 | 1.1.-31.12.2019 |
|---|---|---|---|---|
| Premiums etc. | ||||
| Earned premiums, gross | 6,780.3 | 6,191.8 | 26,608.4 | 24,236.4 |
| Ceded reinsurance premiums | (193.7) | (170.6) | (623.6) | (712.9) |
| Total earned premiums, net of reinsurance | 6,586.6 | 6,021.2 | 25,984.8 | 23,523.5 |
| Claims | ||||
| Gross claims | (4,621.4) | (4,388.9) | (17,765.7) | (16,662.5) |
| Claims, reinsurers' share | 121.1 | 141.2 | 399.4 | 412.6 |
| Total claims incurred, net of reinsurance | (4,500.3) | (4,247.7) | (17,366.3) | (16,249.9) |
| Insurance-related operating expenses | ||||
| Insurance-related administration expenses incl. commissions for received reinsurance and sales expenses |
(963.5) | (927.8) | (3,748.3) | (3,544.5) |
| Received commission for ceded reinsurance and profit share | 3.5 | 6.0 | 9.8 | 45.2 |
| Total insurance-related operating expenses | (960.0) | (921.8) | (3,738.5) | (3,499.3) |
| Other insurance-related operating expenses | (12.7) | |||
| Technical profit/(loss) | 1,126.4 | 851.7 | 4,880.0 | 3,761.7 |
| Net income from investments | ||||
| Income from investments in subsidiaries, associates and joint ventures | (1.3) | 3,093.3 | ||
| Impairment losses of investments in subsidiaries, associates and joint ventures | 5.6 | (81.5) | 5.6 | (153.2) |
| Interest income and dividend etc. from financial assets | 221.4 | 252.5 | 971.1 | 1,000.8 |
| Changes in fair value on investments | 597.9 | 642.5 | (271.4) | 1,451.6 |
| Realised gain and loss on investments | 200.1 | (110.8) | 480.6 | (312.8) |
| Administration expenses related to investments, including interest expenses | (83.8) | (76.9) | (198.9) | (201.6) |
| Total net income from investments | 941.2 | 624.5 | 987.1 | 4,878.1 |
| Other income | 0.6 | 3.9 | 4.9 | 12.7 |
| Other expenses | (6.2) | (10.7) | (31.7) | (38.5) |
| Profit/(loss) of non-technical account | 935.5 | 617.7 | 960.4 | 4,852.3 |
| Profit/(loss) before tax expense | 2,061.9 | 1,469.4 | 5,840.4 | 8,613.9 |
| Tax expense | (375.2) | (238.9) | (1,350.7) | (1,153.6) |
| Profit/(loss) before other comprehensive income | 1,686.8 | 1,230.4 | 4,489.7 | 7,460.3 |
| Other comprehensive income | ||||
| Other comprehensive income that will not be reclassified to profit or loss | ||||
| Changes in estimates related to defined benefit plans | (54.6) | (116.4) | (109.6) | (116.4) |
| Tax on other comprehensive income that will not be reclassified to profit or loss | 13.7 | 29.1 | 27.4 | 29.1 |
| Total other comprehensive income that will not be reclassified to profit or | (41.0) | (87.3) | (82.2) | (87.3) |
| loss | ||||
| Other comprehensive income that may be reclassified to profit or loss | ||||
| Exchange differences from foreign operations | (290.9) | (2.5) | 334.9 | (65.1) |
| Tax on other comprehensive income that may be reclassified | 59.1 | 1.6 | (64.9) | 17.1 |
| Total other comprehensive income that may be reclassified | (231.9) | (0.9) | 270.0 | (48.0) |
| Comprehensive income | 1,413.9 | 1,142.3 | 4,677.5 | 7,325.1 |
Gjensidige Forsikring ASA
| NOK millions | 31.12.2020 | 31.12.2019 |
|---|---|---|
| Assets | ||
| Goodwill | 3,131.1 | 2,950.1 |
| Other intangible assets | 546.1 | 1,026.0 |
| Total intangible assets | 3,677.2 | 3,976.2 |
| Investments | ||
| Buildings and other real estate | ||
| Owner-occupied property | 28.5 | 28.5 |
| Right-of-use property | 831.6 | 966.7 |
| Subsidiaries and associates Shares in subsidiaries |
2,498.4 | 2,063.8 |
| Shares in associates and joint ventures | 1,086.9 | 1,086.9 |
| Interest-bearing receivables on subsidiaries and joint ventures | 2,365.6 | 2,401.4 |
| Financial assets measured at amortised cost | ||
| Interest-bearing securities | ||
| Loans and receivables | 15,214.1 | 14,714.8 |
| Financial assets measured at fair value | ||
| Shares and similar interests (incl. shares and similar interests measured at cost) | 5,522.4 | 6,545.3 |
| Interest-bearing securities | 28,245.9 | 28,446.3 |
| Subordinated loans | 1.9 | 2.2 |
| Financial derivatives | 1,294.3 | 934.1 |
| Other financial assets | 111.0 | 111.0 |
| Total investments | 57,200.7 | 57,301.0 |
| Reinsurers' share of insurance-related liabilities, gross | ||
| Reinsurers' share of provision for unearned premiums, gross | 39.9 | 42.3 |
| Reinsurers' share of claims provision, gross | 516.6 | 554.5 |
| Total reinsurers' share of insurance-related liabilities, gross | 556.6 | 596.8 |
| Receivables | ||
| Receivables related to direct operations | 7,347.5 | 6,843.3 |
| Receivables related to reinsurance | 113.4 | 23.7 |
| Receivables within the group | 26.1 | 7.1 |
| Other receivables | 253.5 | 864.4 |
| Total receivables | 7,740.6 | 7,738.4 |
| Other assets Plant and equipment |
111.1 | 189.8 |
| Cash and cash equivalents | 2,365.0 | 1,796.1 |
| Pension assets Total other assets |
336.1 2,812.1 |
241.8 2,227.6 |
| Prepaid expenses and earned, not received income | ||
| Other prepaid expenses and earned, not received income | 97.2 | 37.7 |
| Total prepaid expenses and earned, not received income | 97.2 | 37.7 |
| Total assets | 72,084.3 | 71,877.7 |
| NOK millions | 31.12.2020 | 31.12.2019 |
|---|---|---|
| Equity and liabilities | ||
| Paid in equity | ||
| Share capital | 1,000.0 | 1,000.0 |
| Own shares | 0,0 | 0,0 |
| Share premium | 1,430.0 | 1,430.0 |
| Perpetual Tier 1 Capital | 1,002.2 | 1,002.3 |
| Other paid-in equity | 80.6 | 67.4 |
| Total paid-in equity | 3,512.8 | 3,499.6 |
| Retained equity | ||
| Funds etc. | ||
| Natural perils capital | 2,612.9 | 2,676.3 |
| Guarantee scheme provision | 715.5 | 676.3 |
| Other retained earnings | 11,201.4 | 11,459.6 |
| Total retained earnings | 14,529.9 | 14,812.2 |
| Total equity | 18,042.7 | 18,311.9 |
| Subordinated debt | 1,198.9 | 1,198.6 |
| Insurance-related liabilities in general insurance, gross | ||
| Provision for unearned premiums, gross | 10,792.8 | 10,003.0 |
| Claims provision, gross | 28,097.3 | 27,693.3 |
| Provision for premium discounts and other profit agreements | 89.1 | 77.3 |
| Total insurance-related liabilities in general insurance, gross | 38,979.3 | 37,773.6 |
| Provision for liabilities | ||
| Pension liabilities | 712.9 | 608.1 |
| Current tax Deferred tax liabilities |
1,501.9 1,198.9 |
984.6 1,391.4 |
| Other provisions | 288.9 | 294.5 |
| Total provision for liabilities | 3,702.6 | 3,278.5 |
| Liabilities | ||
| Liabilities related to direct insurance | 428.1 | 380.9 |
| Liabilities related to reinsurance | 69.8 | 46.1 |
| Financial derivatives | 767.4 | 641.0 |
| Accrued dividend | 4,900.0 | 6,125.0 |
| Lease liability | 928.9 | 1,060.5 |
| Other liabilities | 2,615.4 | 2,650.7 |
| Liabilities to subsidiaries and associates Total liabilities |
85.4 9,794.9 |
56.7 10,960.9 |
| Accrued expenses and deferred income | ||
| Other accrued expenses and deferred income | 365.9 | 354.2 |
| Total accrued expenses and deferred income | 365.9 | 354.2 |
| Total equity and liabilities | 72,084.3 | 71,877.7 |
| NOK millions | Share capital |
Own shares |
Share premium |
Other paid-in capital |
Perpetual Tier 1 capital |
Exchange differ ences |
Changes in estimates related to defined benefit plans |
Other earned equity |
Total equity |
|---|---|---|---|---|---|---|---|---|---|
| Equity as at 31.12.2018 | 1,000.0 | (0.1) | 1,430.0 | 58.2 | 1,000.5 | 386.2 | (1,969.8) | 15,384.0 | 17,288.9 |
| Adjustment on initial application of IFRS 16 | (61.4) | (61.4) | |||||||
| Merger losses | (65.7) | (65.7) | |||||||
| Equity as at 1.1.2019 | 1,000.0 | (0.1) | 1,430.0 | 58.2 | 1,000.5 | 386.2 | (1,969.8) | 15,256.9 | 17,161.9 |
| 1.1.-31.12.2019 | |||||||||
| Comprehensive income | |||||||||
| Profit/(loss) | 51.3 | 7,409.0 | 7,460.3 | ||||||
| Total other comprehensive income | 0,0 | (48.0) | (87.3) | (135.3) | |||||
| Comprehensive income | 0,0 | 51.3 | (48.0) | (87.3) | 7,409.0 | 7,325.1 | |||
| Transactions with owners of the company | |||||||||
| Own shares | 0,0 | (9.2) | (9.2) | ||||||
| Accrued and paid dividend | (6,124.9) | (6,124.9) | |||||||
| Equity-settled share-based payment transactions | 9.2 | 9.2 | |||||||
| Perpetual Tier 1 capital | 0.6 | (0.6) | |||||||
| Perpetual Tier 1 capital - interest paid | (50.1) | (50.1) | |||||||
| Total transactions with owners of the company | 0,0 | 9.2 | (49.5) | (6,134.8) | (6,175.0) | ||||
| Equity as at 31.12.2019 | 1,000.0 | 0,0 | 1,430.0 | 67.4 | 1,002.3 | 338.2 | (2,057.1) | 16,531.2 | 18,311.9 |
| 1.1.-31.12.2020 | |||||||||
| Comprehensive income | |||||||||
| Profit/(loss) | 45.8 | 4,443.9 | 4,489.7 | ||||||
| Total other comprehensive income | 0.5 | 269.5 | (82.2) | 0,0 | 187.8 | ||||
| Comprehensive income | 0.5 | 45.8 | 269.5 | (82.2) | 4,443.9 | 4,677.5 | |||
| Transactions with owners of the company | |||||||||
| Own shares | 0,0 | (13.1) | (13.0) | ||||||
| Accrued dividend | (4,900.0) | (4,900.0) | |||||||
| Reversed dividend | 0.1 | 0.1 | |||||||
| Equity-settled share-based payment transactions | 12.7 | 12.7 | |||||||
| Perpetual Tier 1 capital | 0.6 | (0.6) | |||||||
| Perpetual Tier 1 capital - interest paid | (46.5) | (46.5) | |||||||
| Total transactions with owners of the company | 0,0 | 12.7 | (45.8) | (4,913.6) | (4,946.6) | ||||
| Equity as at 31.12.2020 | 1,000.0 | 0,0 | 1,430.0 | 80.6 | 1,002.2 | 607.7 | (2,139.4) | 16,061.5 | 18,042.7 |
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.