Gjensidige Forsikring ASA Q4 2024 Earnings Call Transcript

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

Question: Johan Strom - Carnegie Investment Bank AB - Analyst : Thank you. Good morning and Thanks for taking my question. So the Norwegian results are obviously very strong and probably caught most of us by surprise. I guess it's only natural to assume some improvements going forward given that this is a winter quarter. But how should we think about the near-term margins here? I mean, the combined ratio in Private and Commercial Norway was as low as 70% to 78% in Q4. And the profitability shares that you continue to show a motor and property on page 5 and 6 clearly shows that margin could -- well, maybe should continue to expand. So I guess my question is really, was Q4 a very benign period? Or should we expect the combined ratio to improve also from here?

Question: Jan Erik Gjerland - ABG Sundal Collier - Analyst : Thank you for taking my question. How many of your clients have still to see the sort of the updated pricing for motor and property? Because I got about 20% from my insurance company, which was not [due] this time around. And I'm now looking for a new provider and see if there are any more better price there. So how many clients are still not see in the sort of the super high levels, which could sort of come to your retention level? Could then be a little softer than usual today. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 24, 2025 / 8:00AM, GJFG.OL - Q4 2024 Gjensidige Forsikring ASA Earnings Call

Question: Thomas Svendsen - SEB - Analyst : Yes. Good morning. So if you look at the weather in Q4, there seems to be a low precipitation in the quarter, which seems to have continued into Q1 as well, which gives very little snow in the mountains. So could this be sort of a leading indicator for the risk of flooding later in the year, this low amount of snow?

Question: David Barma - BoFa Global Research - Analyst : Can I just come back on the guidance, please. So you're delivering close to 83 and whichever way we cut it on an underlying, undiscounted or not, you're around that level in Q4. And what you suggest at the front of the slide pack is your pricing, kind of double digits ahead of claims inflation and frequency seems to be heading the right way. So what makes you, I guess, more cautious on being able to beat your '25 guidance, which seems pretty clear at this stage based on all the data you've published today? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 24, 2025 / 8:00AM, GJFG.OL - Q4 2024 Gjensidige Forsikring ASA Earnings Call

Question: Hakon Astrup - DNB Markets - Analyst : Good morning. Thank you for taking the question. My question will also be on motor in -- private motor in Norway. So you mentioned you are increasing prices there like 10% from January 1. Is your impression that you are, say, increasing pricing in line with peers? Or are you more aggressive on prices?

Question: Alex Mackenzie - BNP Paribas Exane - Analyst : Hi Thanks for taking my question. It's really just on the price increases in motor and Private Norway and in home as well. I guess I was quite surprised at the level. Do you think these are what are required to return yourself to our profitability or typically is? Or just wondering if there's a chance to overshoot? Thank you.

Question: Hans Rettedal Christiansen - Danske Bank - Analyst : Thank you for taking my question. I was wondering if we could look at the Private Danish segment. I have a question regarding the Private Danish segment, specifically regarding the sort of over the past 3 to 4 quarters now it's been progressively becoming worse when it comes to the combined ratio. How do you sort of plan to fix that trend, especially when we also take into account the fact that your price increases are quite high but it doesn't seem to sort of be improving the combined ratio in the same manner as we see in the Norwegian operations.

Question: Vinit Malhotra - Mediobanca - Analyst : Yes, good morning. Thank you. Just one quick follow-up and then I'll come to my question. The -- we noticed the corporate center has a pretty large negative charge in the runoff [flight]. In fact, the same thing that you just mentioned for Denmark, just my clarification point, really. The question is really around [35] motor again. Really just two quick ones there. One is the 4.8 points of weather-adjusted underlying loss ratio or frequency loss ratio. Does that include adjustments for the good driving conditions when you say (inaudible)? So that's my first question. And second thing is in the claims inflation outlook for motor, are you not worried about spare parts and the salaries of (inaudible) because that's what being flagged as issued by one of your peers yesterday morning.

Question: Ulrik +rdal Znrcher - Nordea - Analyst : Thank you. So clearly, your retention ratio is super solid. But I was just wondering if you're seeing any trends of consumers starting to trade down on coverage given price hikes also on the [U bend] in the market? Are you observing any other behavioral changes when it comes to insurance coverage?

Question: Faizan Lakhani - HSBC - Analyst : Good morning. Thanks for taking my, I have two questions, if that's okay. The first one is on Private Norway. There's a comment in your pack suggesting that motor profitability would have deteriorated if you adjust the reserve strength, and you did last year. Could you maybe elaborate on what that would mean for the full Private Norway, say, well, not just motor? I assume is fairly significant given the fact that motor is 40% of your book there. Second question is on your Solvency II capital generation. So you said it's NOK2 billion of operating capital generation when you adjust free portfolio. Your net income on IFRS 17 is about [NOK1.6 billion]. I know they're not on the same basis, but maybe if you could explain or bridge between the two of them. Thank you.

Question: Herman Zahl - Pareto Securities AS - Analyst : Thank you. I just wondered if you could give us some more colors on the January 1 renewal in the Commercial portfolio in Norway. I understand that exactly difficult, but in terms of competition and retention levels compared to previous years. And please also confirm that these renewals are approximately 40% of the Commercial portfolio. Thank you.

Question: Thomas Svendsen - SEB - Analyst : Yes. Hello again. So you mentioned mobility services as improvement result driver. So could you give us an update on where we are today and where we are heading in terms of results there?

Question: Alex Mackenzie - BNP Paribas Exane - Analyst : I was just wondering if we can have a bit more detail on the competitive environment in Denmark, I guess, just given the M&A in the sector last year and the opportunity you see there. Just noting that, I guess, as mentioned earlier, we've seen some deteriorating profitability and increasing retention. Just are you confident in your ability to grow there and hit your [750 ISR] target? Thank you.