Gjensidige Forsikring ASA Q1 2023 Earnings Call Transcript

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

Question: Tryfonas Spyrou - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : So just firstly, on the underlying frequency loss ratio in Sweden and in Denmark. We had a pretty big swings here year-on-year. I was wondering if you could share some more thoughts on what are the key drivers here. I guess, more particular in Denmark, whether you can comment on which lines of business claims inflation is higher than pricing. I think you made a comment there. And then if you can share some numbers? And the second question is on the solvency. You mentioned that when adjusting for the portfolio you acquired and the seasonality premiums, solvency is down sort of 7 points. I guess can you help us unpack the difference between the 2? I guess, the impact of not new material. So if you can help us identify what's what and how should we expect the seasonality and provisions to affect the solvency going forward? That's my question.

Question: Tryfonas Spyrou - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : That's very helpful. And just a quick follow-up to that. Would you say that the sort of underlying base effect from frequency normalizing post-COVID-19 last year -- and obviously -- and also, are there any sort of comments you can make on the currency effect and that -- will that impact in your the import of spare parts in Norway as well. So any comment there... Helpful.

Question: Hskon Astrup - DNB Markets, Research Division - Analyst : Two questions from me, the first one on motor in Norway. I wonder if you can give some more flavor on the sales inflation there, the 4% to 7% that you provided seems a bit low given what you see in terms of wage growth and also the recent depreciation of the Norwegian currency. And how has the development has the inflation here picked up compared to last year? That was the first question. And the second question on your out-of-stock statement on the growth side. During the past quarters, you have had an expectation that short-term growth should be above growth in nominal GDP, but I didn't find that statement this quarter. And should we read anything into that, you have to say -- On to that?

Question: Hskon Astrup - DNB Markets, Research Division - Analyst : And just I may follow up on that one, you see that claims inflation on the motor side is now picking up in Norway, just following what has happened on the -- with the currency and also the recent rate negotiation?

Question: Hskon Astrup - DNB Markets, Research Division - Analyst : So you do not expect short term, but that growth should be above nominal GDP anymore -- or is it -- really?

Question: Thomas Svendsen - SEB, Research Division - Analyst : Question to the solvency on your solvency ratio target. So you pointed out sort of the pro forma solvency is now 174%. So I guess the question is, should we assume that the midpoint of the range is the most likely? Or also if you would be comfortable to go much below the mid-range, let's say, 160%? Would you be as comfortable to do that as you need to go down 90%? Because in practice, it seems like you are not very keen to lower the solvency ratio towards the low end? What do you think about that?

Question: Thomas Svendsen - SEB, Research Division - Analyst : Okay. So one of the reason I'm asking is simply, if you're a 174 would it then be on that on the (inaudible) at all to lower it to, let's say, 160 via special dividend? Or would it be so that you will skip the extraordinary dividend because you don't want to move too much towards the end of the range.

Question: Thomas Svendsen - SEB, Research Division - Analyst : Okay. And then just the final question there on the weather. So I think last quarter, you said something about that the weather was what you could expect in the fourth quarter -- the fourth winter quarter -- but how will the (inaudible) weather in Q1? Is it more harsh than one could expect for the future? Or is it still within sort of around the normal level?

Question: Hans Rettedal Christiansen - Danske Bank A/S, Research Division - Analyst : So just a specific question on the other items in your P&L. And specifically on the Gjensidige Mobility Group, you're stating that there's sort of integration costs and start-up costs related to this. I was wondering how large are these as a share of sort of the total other items? And how long do you expect them to stay elevated before perhaps you start to generate revenue in this business area?

Question: Hans Rettedal Christiansen - Danske Bank A/S, Research Division - Analyst : And then just another question on the organizational changes that you're making. I was wondering how has this sort of been on the table for a long time regarding the new -- or the integration of the new IT system in Denmark and that sort of the plan all along has been to combine Norway and Denmark on private and commercial after the system finished.

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : I have a couple of follow-up questions, I would say. First, on the other items, that's negative NOK 148 million in the quarter. When I read the report, it seemed like there were some integration and start-up costs, but your answer indicated that there are not anything there that would go down in the next quarters, if I understood you correctly. But to be very specific, are there anything in those NOK 148 million, that you consider one-offs in the quarter? And then on pension, could you repeat the impact of these loss-making contracts in the quarter and provide some details into which kind of public groups, these are and also to help us, since there are some movements there, what we should expect as a contribution from pensions over the next quarter? And finally, if the pension area also should deliver on the 20% ROE target?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : Just before we continue on the pension. Is it possible since these are quite specific items that you have grouped together? Is it possible to have amortization, the interest expenses for the subordinated loans and see the mobility group as separate lines in the reporting going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2023 / 7:00AM, GJFG.OL - Q1 2023 Gjensidige Forsikring ASA Earnings Call