Gjensidige Forsikring ASA Q3 2021 Earnings Call (Q&A Session For Sell Side Analysts) Transcript

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

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : Hello, again. I have a few more detailed follow-up questions. First of all, in Denmark, the NEM for Forsikring. Could you give us a number of how much premiums that have now entered the P&L from NEM Forsikring?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : Okay. And what's your expectation for Q4? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 20, 2021 / 9:00AM, GJFG.OL - Q3 2021 Gjensidige Forsikring ASA Earnings Call (Q&A Session For Sell Side Analysts)

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : And that would be with full effect one quarter in Q4, just to get the details right?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : 10th of October?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : Excellent, excellent. I have 2 more questions. One is a quick one on bonds and price costs. It seems like the yield or returns there have come up quite compared to the previous quarters. Is there something you could -- or some details you could provide to this? And what we should expect there going forward?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : And then the expected yield there now?

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

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : 2.5% on reinvestment rate?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : And then just finally, the change of ownership (inaudible) has historically been going to, as I understood from Helge, been sold in a different way than the rest of your insurance. With that background, what do you target as a market share in this market going forward?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : Is there any numbers you could provide, a market share you would need for this to be breakeven or things like that?

Question: Vegard Toverud - Pareto Securities AS, Research Division - Analyst : Excellent. And if I understood you correctly, this would be a 5-year product. Is the liability for one selling a property in Norway, is that limited to 5 years under the new regulation as well? Or is there something ...

Question: Tryfonas Spyrou - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : I just I'm trying to understand in terms of the margins that your peers acquired -- sort of margins better. And obviously, you've been ahead in terms of pricing...

Question: Tryfonas Spyrou - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Yes. Can you hear me now?

Question: Tryfonas Spyrou - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Sorry about that. So my question is around sort of your margins, which are obviously way better than peers at the moment. You had a sort of price increases, I guess, for 2 years running perhaps ahead of peers. So now you're talking about putting price increases to sort of in line with an above price inflation. So I'm just trying to understand how can you sort of stay competitive enough, given all the sort of price increases over the last 3 years? And obviously these are expected to continue? That's my first question. And I guess my second question is on the runoff. It's currently running above your sort of NOK 1 billion expectations. Just can you give us a sense of what lines are driving this? Does that have anything to do with sort of trends around lower body injury claims in motor? And obviously, should we expect that momentum to continue going into 2022? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 20, 2021 / 9:00AM, GJFG.OL - Q3 2021 Gjensidige Forsikring ASA Earnings Call (Q&A Session For Sell Side Analysts)

Question: Tryfonas Spyrou - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Okay. That's very helpful. I guess part of the reason I was asking the question is obviously when (inaudible) talks about growth, especially in private, they're saying that new customers, on average, are less profitable. So I guess I'm surprised a little bit, given you have such high levels of growth, at the same time, your underlying is improving quite a lot, so I think that's quite positive. But I think that's what has triggered the question on my part.

Question: Tryfonas Spyrou - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : And I guess should we expect that trend to continue going forward? How -- what is your view on that?

Question: Philip Ross - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : Just a question first on the IT system. You said you started rolling out with private Denmark. I just wonder what sort of time line we're looking at for Norway, assuming that, that comes next? And what sort of extra capabilities to the IT system give you? I'm not sure whether that would sort of put you ahead of your peers maybe, or is it a process of catching up with peers' IT capabilities? And then the second question I had is just on the dividend, mainly out of curiosity really, I wonder why you decided to pay now and not wait till year-end? Or is that more of a formulaic calculation timing thing?

Question: Philip Ross - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : That's very helpful.

Question: Philip Ross - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : Sure.