Gjensidige Forsikring ASA Q2 2022 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 : This is Tryfonas Spyrou from Berenberg. And congratulations on the very strong result. I've got 3 questions, if I may. Can you first elaborate a bit more on why do expect inflation in property to reduce 2 points going forward? Is it fair to say that we are past the peak inflation in building materials? And I guess I was wondering if you have any comments on inflation expectations in Denmark going forward? The second one is on the reduction in SCR. And I was just wondering if this is -- what is driving this, is it more change in allocation or lower equity stress? I'm just trying to see how much we can extrapolate this going forward. And the third question is a more broad one on the competitive environment. We have obviously had now price increases for 2, 3 years because the market profitability is near record levels. Do you see any scope for competition to increase across markets? Or do the inflationary pressures put a break on this for the time being.

Question: Tryfonas Spyrou - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : No, it's very helpful indeed. And congratulations again on the strong quarter.

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : This is Vegard from Pareto. I have a few questions. Maybe I should continue on the profitability. You have now yet again a very low claims ratio. Yet you are also stating that you will continue to increase prices in Norway in line or above claims inflation. At 0 claims you will obviously want more volumes. At which level between 0 and your current claims level would you consider pricing below the inflation to gain more volumes?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : Okay. And then on the corporate side, there are some runoff losses there, but still the claims are very low in the quarter. And in the report you referred this to a continued focus on pricing and risk selection. Is this the new level of claims and profitability for commercial in Norway? Or is there any other special impacts that are not mentioned in the report there?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : Yes. It's really impressive. Then just 2 quick questions. What is the reinvestment rate now currently for your bond portfolio? And also for this interesting Boligblikk, what are your expected volumes for that product?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : Yes. That would be very interesting to hear more about. I think it's a very interesting product.

Question: Thomas Svendsen - SEB, Research Division - Analyst : This is Thomas Svendsen from SEB. Actually I have 2 questions. First, if you look at the traffic statistics here in Norway, the number of fatal accidents was almost 3x higher in the second quarter this year than last year. What do you see in your books? And also, is this an indication of sort of increased frequency of claims in the traffic? And the second question about this new regulation of natural perils fund that may come in effect from '23 or '24. I guess you was heavily against this new regulation during the process. So how do you think this will impact your solvency when it gets in effect?

Question: Hskon Astrup - DNB Markets, Research Division - Analyst : This is Hskon Astrup from DNB Markets. 2 questions for me as well. The first on premium growth. So it's great that you expect premium to grow above nominal GDP in the short term. Is this true for like all your (inaudible) all lines. So are there some segments where this might be challenging? That was the first question. And the second question on regulation. In Europe we see increased focus from regulators on price walking. Have you picked up anything that increased regulatory focus on this in Norway as well? And have you done anything to prepare for potential shifts?

Question: Hskon Astrup - DNB Markets, Research Division - Analyst : And if we look at other lines such as illness and accident and other, not property and motor do you see similar trends there at the moment as well?

Question: Hskon Astrup - DNB Markets, Research Division - Analyst : But have you picked up any, say, increased scrutiny on the same topic in Norway or is it...

Question: Hskon Astrup - DNB Markets, Research Division - Analyst : Have you picked up any, say, increased focus and scrutiny from Norwegian regulators on the same topic as well?