Gjensidige Forsikring (GJF) Q4 2024 earnings summary

Executive summary

• Profit before tax for Q4 was NOK 1,605 million, with strong improvement in insurance service result and profitability year-over-year; profit after tax reached NOK 1,203 million in Q4 and NOK 5,181 million for 2024, with return on equity at 22.7%.

• Full-year pre-tax profit reached NOK 6,823 million, with 11% revenue growth and robust operations, though combined ratio was impacted by high motor claims in Norway.

• Board proposed total dividends of NOK 10.00 per share (NOK 5 billion), including a special dividend, with a payout ratio of 97%, supported by a strong solvency ratio of 185%.

• All annual financial targets were met except the combined ratio; targeted measures are in place to improve profitability for 2025 and 2026.

Financial highlights

• Q4 2024 insurance revenue grew 11.6% year-over-year; full-year insurance revenue was NOK 38,359.4 million.

• Combined ratio improved to 83.3% in Q4 and 86.0% for the year; cost ratio declined to 12.2% in Q4 and 12.3% for the year.

• Investment returns contributed NOK 208 million in Q4 and NOK 2,458 million for 2024, with a return on total assets of 3.9%.

• Solvency ratio at year-end was 185%, up 21 percentage points from Q3.

• Customer retention in Norway at 91%; digital claims reporting at 75%.

Outlook and guidance

• Financial targets for 2025/2026: combined ratio <84%/<82%, cost ratio <14%/~13%, ROE >22%/>24%, solvency ratio 140-190%.

• Ongoing pricing and efficiency measures expected to further improve profitability, with price increases outpacing claims inflation.

• Claims inflation for property expected at 4%-6%, and for motor at 4%-7% over the next 12-18 months.

• Organic growth expected to align with nominal GDP growth in Nordic markets; continued investment in technology and digitalization.

• Confident in delivering on financial targets for the next two years.