GJNSF - Gjensidige Forsikring ASA (GJNSF) Q2 2024 Earnings Call Transcript
2024-07-15 11:52:09 ET
Gjensidige Forsikring ASA (GJNSF)
Q2 2024 Earnings Conference Call
July 15, 2024 03:00 AM ET
Company Participants
Mitra Negard - Head of Investor Relations
Geir Holmgren - Chief Executive Officer
Jostein Amdal - Chief Financial Officer
Conference Call Participants
Tryfonas Spyrou - Joh. Berenberg, Gossler & Co.
Freya Kong - Bank of America Merrill Lynch
Alexander Evans - Citi
Ulrik Zürcher - Nordea
Jan Erik Gjerland - ABG Sundal Collier
Vegard Toverud - Pareto Securities
Håkon Astrup - DNB Market
Faizan Lakhani - HSBC
Thomas Svendsen - SEB
Hans Rettedal - Danske Bank
Youdish Chicooree - Autonomous Research
Johan Strom - Carnegie Investment Bank AB
Michele Ballatore - Keefe, Bruyette & Woods
Vinit Malhotra - Mediobanca
Presentation
Operator
Hello, and welcome to the Gjensidige's Q2 2024 Results Presentation. My name is Laura, and I will be your coordinator for today's event. Please note, this call is being recorded and for the duration of the call your lines will be on a listen-only mode. However, you will have the opportunity to ask questions at the end of the call. [Operator Instructions]
I will now hand you over to your host, Mitra Negard, Head of Investor Relations, to begin today's conference. Thank you.
Mitra Negard
Thank you, operator. Good morning, everyone, and welcome to the second quarter presentation of Gjensidige. My name is Mitra Negard, and I'm Head of Investor Relations. As always, we will start with our CEO, who will give you the highlights of the quarter; followed by our CFO, Jostein Amdal, who will go through the numbers in further detail. And we have plenty of time for a Q&A afterwards. Geir, please?
Geir Holmgren
Thank you, Mitra, and good morning, everyone. We have put behind us a quarter with high claims in Norway. I will revert on how this has impacted our results and what we are doing to mitigate the impact on our profitability going forward.
Now let us turn over to Page 2 for comments on our second quarter results. The profit before tax was NOK1,830 million, an increase from NOK1,334 million. The general insurance service result was NOK1,434 million. This result includes a positive impact of NOK402 million from a change in the risk adjustment. The strong growth momentum continued in this quarter with insurance revenue increasing by almost 10%. Insurance Service results decreased mainly due to higher motor and property insurance claims in Norway. Adverse claims in the first quarter also impacted results negatively.
Our investments generate returns of NOK540 million, and the annualized return on equity was 20.2%. Jostein will revert with more detailed comments on the results for the quarter.
A few words about property insurance on Page 3. The significant increase in property claims in the second quarter for private and commercial in Norway was due to fires. As mentioned earlier, property insurance is different from motor in the sense that claims frequency is much more volatile in nature, being more exposed to weather and stochastic factors such as fires.
While we see a long-term decreasing trends in fires, water damage is rising due to climate changes. We will continue to develop relevant insurance solutions with incentives for loss prevention. The insurance industry is engaged in fruitful discussions and share valuable knowledge with municipalities to prevent losses....
Gjensidige Forsikring ASA (GJNSF) Q2 2024 Earnings Call Transcript