Gjensidige Forsikring ASA Q3 2024 Earnings Presentation (Q&A for Sell-side Analysts) - Oslo Transcript

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

Question: Faizan Lakhani - HSBC - Analyst : Hi there. Thank you for taking my questions. My first question is on the solvency position. So the SCR has increased by about 10% year-to-date. And if we continue with this level of SCR growth, they will continue to put pressure on your solvency position. At what point does the solvency level become constrained for your growth ambitions? My second question is on the combined ratio target. Back in 2023, when you are made as a CMD, at that point, it included the Baltics. Now, the Baltics are a pretty small part, I think 5% of insurance revenue, but they're operating at a sort of mid 90% to 100% level combined ratio, which would suggest for a 40, 50 bps strain to your combined ratio guidance for 2026. So should we assume now that you're aiming for 81.5% 2026 combined ratio guidance? Thank you.

Question: Faizan Lakhani - HSBC - Analyst : So can we say that, that you're diluting your '26 target? Is that the right way to think about that?

Question: Faizan Lakhani - HSBC - Analyst : That's perfect. Thank you.

Question: Ulrik Znrcher - Nordea Markets - Analyst : Thank you. One question about retail motor. I think we can all see what you're trying to do. Like since 2022, I get around 13% inflation, 10% increase in frequency and then you reprice a bit over 20%. But I was just wondering how certain can you be that claims frequency now have stopped because you -- when you started repricing for it or announced it in Q3 2023, then it's like you are expected to take a year, but then we clearly had another surprise, but you're saying it's stabilized now. Like what is the risk if these keep accelerating?

Question: Ulrik Znrcher - Nordea Markets - Analyst : Yeah. But I guess what I'm asking is like how confident are you that like that claims frequency won't rise further next year, for example?

Question: Ulrik Znrcher - Nordea Markets - Analyst : Yeah. Okay. Thank you.

Question: Hans Rettedal - Danske Bank A/S - Analyst : Yes. Goodmorning. I was just wondering on the claims frequency on the property side in Private Norway, which is down 20% this quarter. And then in Q2, it was up 8%. Of course, a lot of the decline in this quarter was driven by the Storm Hans, could you say anything about the sort of underlying trend in the frequency for property in Q3 relative to Q2? And perhaps also sort of seen up against the comments that you have on the higher development in this segment?

Question: Hans Rettedal - Danske Bank A/S - Analyst : Okay. Thank you very much.

Question: Vinit Malhotra - Mediobanca Group - Analyst : Yes. Good morning. Thank you very much. So my one question would be, Jostein, you mentioned that the pricing would take time to work through the -- to the underlying, and that's something we clearly appreciate. I'm just curious if, a, in motor or in private, private, you mentioned fires, but in either one or both of them, are you -- is the trend that you saw in 3Q in line with what you expected, you would say? Or was it better or was it worse? And also in the same line is the deductibles 0.7 points. Is it working out to your expectation? Or is it different? I just want to see the trend versus your expectations. Thank you.

Question: Vinit Malhotra - Mediobanca Group - Analyst : Sure. Thank you.

Question: Michele Ballatore - Keefe, Bruyette & Woods Inc - Analyst : Yes. Thank you very much. So I have two questions. So the first question is in terms of the targeted increase in prices I saw an increase from 2Q to 3Q in both property and motor, Private Norway. So in that slide, where you show the prices increases and following claim frequency and everything. So this is the first question. Can you maybe explain, I mean, why you are doing that, give more details about this change? And the second question is about the -- going back to the solvency, I mean, the increase, the operational increase in required capital every quarter is quite (technical difficulty)

Question: Vinit Malhotra - Mediobanca Group - Analyst : Sorry. Just to follow up on the first question, maybe I'm confused. But what I was referring to is in slide 4 -- sorry, in slide 3 or slide 4, when you say full-year '24 expect above 14% in the average premium in force. This number increased from 2Q to 3Q. That's what I was referring to, sorry.

Question: Michele Ballatore - Keefe, Bruyette & Woods Inc - Analyst : Thank you very much.