Gjensidige Forsikring ASA to Discuss Ambitions in the Mobility Space Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : This is Vegard Toverud from Pareto Securities. Thank you very much for a very interesting presentation. A lot of details there, so I have quite a few questions. If I could start with the Page 7, where in the car life cycle do you consider yourself to be weakest at the moment? And is this also the place where we should expect more M&A going forward?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : Yes. So it's going back to your comments earlier, RenT, that you will be adding partners and you will focus on potential new acquisitions going forward. And I thought just relating it to the Page 7, which is an interesting illustration here, is there any parts of getting the car in damage -- in car service where you consider you have most opportunities to add new partners or to add new companies?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : Yes, excellent. And on the reduced claims costs that are a quite substantial part of at least the short-term earnings potential here, is it correct to interpret this to come from more channeling into partner repairs and then improved fraud detection? Or is there any other sources also for the NOK 100 million to NOK 150 million?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : Yes, that's like I understood. So that's very clear. Just to then follow up before I give the word to someone else. What is the reason why you need to own the company to change the way they work? So if, say, Falck would continue to be a partner, what is hindering you from doing the same kind of actions, getting them involved in the process earlier and steering repairs to your preferred repair partners, et cetera?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : Yes, yes.

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : This is Vegard again. So I'm back with some more questions. If we look at the last comments around the underwriting contribution here, how much costs are added in that calculation?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : Sorry for having an unclear question there. But out of the NOK 80 million in the costs you have for the -- between the NOK 120 million and the NOK 40 million, how much of the NOK 80 million are marginal or additional costs?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : Yes.

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : And RenT mentioned the increased focus on efficiency in the Falck organization. Where do you see the low-hanging fruits? Or where is the potential for increased efficiency there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 09, 2022 / 7:00AM, GJFG.OL - Gjensidige Forsikring ASA to Discuss Ambitions in the Mobility Space Call

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : Okay. The premium, the 120,000 policies, NOK 120 million premiums, they are slightly on the high side. Is this -- should we read this as expectation of more new cars in -- with the new volumes compared to your back book? Or is that just an approximation, so we shouldn't put much into it?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : Yes. Moving on to something that was announced yesterday, that one of your Norwegian peers have acquired a sizable position in SOS International. At the same time, when I look at the SOS International page, your logo is no longer there. Is it then fair to assume that you have sold your shares in SOS International?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : Could you then help us with how much volumes you contributed to SOS International in 2021? And what the potential of increased volumes you could then channel to Falck would be?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : Okay. And if it's possible to provide that later, Mitra, that would be interesting. And...

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : I totally agree. So my final question then. Were you aware that Fremtind were buying when you were selling SOS ownership?

Question: Thomas Svendsen - SEB, Research Division - Analyst : This is Thomas Svendsen from SEB. Actually, 2 questions to Falck. The question number one, when did sort of things change so you realized you need to own this service yourself? Has it been a gradual process, a realization of this? Or has it been any abrupt happening? And the second question on Falck is, how is the business mix in Falck between sort of flat battery in cold weather, flat tire, empty fuel, empty electricity, where I guess there is not much value to create for you, and the part of the business where you can create value?