2024-01-24 08:47:02 ET
Gjensidige Forsikring ASA (GJNSY)
Q4 2023 Earnings Conference Call
January 24, 2024, 3:00 AM ET
Company Participants
Mitra Negard - Head, Investor Relations
Geir Holmgren - Chief Executive Officer
Jostein Amdal - Chief Financial Officer
Conference Call Participants
Freya Kong - Bank of America
Håkon Astrup - DNB Market
Tryfonas Spyrou - Berenberg
Ulrik Zürcher - Nordea
Alexander Evans - Citi
Youdish Chicooree - Autonomous Research
Thomas Svendsen - SEB
Hans Rettedal Christiansen - Danske Bank
Johan Ström - Carnegie
Jan Erik Gjerland - ABG
Presentation
Operator
Go ahead.
Mitra Negard
Thank you, Operator. Good morning, everyone. And welcome to this Fourth Quarter Presentation of Gjensidige. My name is Mitra Negard, and I’m Head of Investor Relations. We will, as always, start with our CEO, Geir Holmgren, who will give you the highlights of the quarter, followed by our CFO, Jostein Amdal, who will go further into detail on the numbers. And after that, we will go into a Q&A. I have plenty of time to answer your questions. Geir, please.
Geir Holmgren
Thank you, Mitra, and good morning, everyone. 2023 turned out to be a year marked by significant weather events in many places around the world. Storms, floods and torrential rain hit our region in the third quarter, followed by more storms and heavy rain early in the fourth quarter.
Winter arrived early with several periods of heavy snowfall and low temperatures. 2024 has started off with tough weather conditions in our region. This has and continues to cause difficult driving conditions.
RedGo had more than 28,000 assignments in the Nordics during the first nine days of January, up 150% compared with the same period last year. There have also been many damages from frozen pipes and water damages, with significant impact on property claims. I am very pleased to see how our competent and dedicated teams have taken care of our customers and how efficiently we have processed the large number of enquiries and claims.
Now, let us turn over to page three for comments to -- on our fourth quarter results. We generated a profit before tax of NOK1,607 million. The general insurance service result was NOK734 million, reflecting continued strong revenue growth and efficient operations. However, the results development compared to last year was negatively impacted by other private business, driven by weather-related claims and an elevated level of underlying claims frequency, particularly from motor in Norway.
The result both for private and commercial was also impacted by a strengthening of reserves for claims in Norway, which had incurred earlier in 2023. Thanks to our efficient operations, the cost ratio remained at a highly competitive level of 13.3%. Our investment generated returns of NOK1,876 million, reflecting the development in the capital markets. The return on equity for 2023 ended at 18.2%. Jostein will revert with more detailed comments on our results for the quarter.
So, turning to page four and looking at the full year. We delivered a pre-tax profit of NOK5,551 million. We generated strong revenue growth last year. Our operations ran well and efficiently, and we had good returns on our investments. However, the weather conditions in the third quarter and fourth quarter and the one-off expenses we recorded in the third quarter prevented us from reaching our targets from combined and cost ratios and return on equity....
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Gjensidige Forsikring ASA (GJNSY) Q4 2023 Earnings Call Transcript