Gjensidige
Insurance Group
Q1 2010
Disclaimer
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Agenda
I
Highlights
I.
Highlights
II. Financial Performance
III. Investment Performance
IV. Solvency II
V.
Outlook
Supplementary Information
3
Harsh winter contributed to a
negative UW-result
g
General insurance
Value creation
A
fi
i l
l
i
h
• Underwriting result characterized by
cold winter
• Cost performance in keeping with the
objectives that were set for reduction of
ti
d
l i
• A strong financial result in the quarter
ensures a satisfactory profit for the Group
• 6.2 per cent pretax return on equity
(annualised)
operating expenses and claims expenses
• The acquisition of Nykredit Forsikring
gives Gjensidige a significant position in
the Danish general insurance market
The Group
• The encouraging improvements in the
Norwegian Customer Barometer survey
show that Gjensidige's focus on customer
Other business areas
• The bank is developing in keeping with
expectations and reported a profit for
the first time since start-up
show that Gjensidige s focus on customer
orientation gives measurable results
• Conversion to a public limited company
unanimously approved by the annual
general meeting
the first time since start-up
• Strong growth in assets under
management for Pension and savings
with total assets under management
exceeding MNOK 9,500 at the end of Q1
g
g
• Final implementation is pending approval by
the authorities
• Preparing for a listing in second half of 2010
g
,
Q
2010
Financial highlights
First quarter
Sli ht i
i
d
i
i l
Earned premiums – General insurance,
net of reinsurance
• Slight increase in earned premiums , mainly
due to growth within private lines in Norway
and commercial lines in Sweden
• Net winter related claims of NOK 371
illi
b
l l
l f th fi t
15,660
million above a normal level for the first
quarter – a negative effect on the claims
ratio of 9.7
• A net positive effect on earnings of NOK 43
illi
l f ki
l i
3,789
3,811
Q1 2010
Q1 2009
2009
million as a result of taking early retirement
(AFP) liabilities to income after the passage
of the AFP-Act, equivalent to a positive
effect on the cost ratio of 1.1
818
Underwriting result – General insurance
• The combined ratio amounted to 109.7 in
the quarter (97.4 in Q1 2009)
• Profit before tax expense of MNOK 344
(MNOK 296)
97
(369)
5
Focus on main drivers
for continued success
Extreme customer orientation
1)From no. 56 to no. 17
HR Norway’s annual price to Gjensidige
”N
ORWEGIAN
C
USTOMER
B
AROMETER
”
Management and skills development
”N
ORWEGIAN
C
USTOMER
B
AROMETER
”
Ranking Company Satisfaction
1 Flytoget 84.4
2 BMW 83.7
3 Toyota 83.6
4 Vinmonopolet 83.0
5 Audi 82.0
Management and skills development
Gjensidige
Customer and Brand School
CEO/ Group Management
6 Hurtigruten 81.9 7 Finn.no 81.4 8 SkandiaBanken 81.2 9 Skoda 81.1 10 Interoptikk 80.4 16 Terra Skadeforsikring 78.5
Customer and
brand academy
Ma
n
a
T
ini
t
a
a
16 Terra Skadeforsikring 78.5 17 Gjensidige Forsikring (skade) 78.4 25 Sparebank 1 Skadeforsikring 77.0 32 Nordea 76.0 35 TrygVesta (skade) 75.7 36 TrygVesta (liv) 75.5 51 Storebrand (skade) 74.3 56 Postbanken 73 6n
age
m
en
t
cademy
tiativ
T
raining
es
b
y
choice
Sales
cademy
cademy
Claims
E learning
56 Postbanken 73.6
65 If 73.1
84 Gjensidige Forsikring (liv) 71.8 87 Sparebank 1 71.6 113 Fokus Bank 69.5 126 Storebrand (liv) 68.8 139 Nordea (liv) 66.8
153 DnB NOR 65 7
1) Source: Norsk Kundebarometer, a research project at The Norwegian School of Management. Norsk Kundebarometer conducts an annual customer satisfaction survey.
E-learning
Shared administration
6
153 DnB NOR 65.7
164 Vital Forsikring (liv) 63.9 187 DnB NOR Kapitalforvaltning 56.3
Gjensidige in Denmark
Positioned for growth
Strengthened distribution power for
Gjensidige’s branch operations in Denmark
310 real estate
branches
Nykredit - transaction closed Apr 29, 2010
•
Nykredit Group to sell and distribute
Gjensidige’s non-life insurance products in the
EDC – distribution agreement
•
Agreement in force from Oct 1, 2010
D
k’ l
t
l t t
t ith
Gjensidige s non life insurance products in the
Danish market
•
Products to be distributed under Nykredit and
Gjensidige brands
•
Extensive distribution, including 70 sales offices
•
Denmark’s largest real estate agent with
market share of approx. 21 per cent
•
More than 240 branches
•
Approx. 15,000 transactions annually
•
Distribution agreement where insurance
7
and two estate agencies with a total of 310
offices
Distribution agreement where insurance
products are to be distributed under the
Gjensidige brand, at Gjensidige’s rates
Cost and Claims reduction Initiatives
Status Q1 2010: According to plan
Cost reduction initiatives*
Claims reduction initiatives
72
(22)
(90)
500
400
500
600
2010
2009
2011
2,654
2,614
273
100
200
300
400
Plan ActualCosts 2009**
Savings 2010
Remaining
savings 2010
Target 2010
Cost
Inflation 2010
Realised savings YTD 2010
Rest
0
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
465 MNOK Annual effect (plan) 100 MNOK 280 MNOKFinancial Performance
Financial Performance
Key Figures (MNOK)
Earned premiums – General insurance,
net of reinsurance
Underwriting result – General insurance
97
867
15,660
(369)
Q1 2010
Q1 2009
2009
3,789
3,811
Q1 2010
Q1 2009
2009
3,167
2,788
Net income from investments
Profit before tax expenses
296
344
281
846
10
296
Q1 2010
Q1 2009
2009
Q1 2010
Q1 2009
2009
Q1 net winter related claims
above normal level (MNOK)
(
)
67
15
66
371
224
Private
Commercial
Nordic
Baltic
Total
Key Financials
Performance by business areas
MNOK
Q1 2010
Q1 2009
2009
P i
t N
(223)
16
552
Private Norway
(223)
16
552
Commercial Norway
25
73
305
Nordic
(123)
23
153
Baltic
(1)
16
41
Corporate Centre
(47)
(30)
(233)
Underwriting result
(369)
97
818
Pension and savings
(11)
(35)
(108)
Online retail banking
5
(20)
(76)
Health care services
9
9
33
Return on financial assets
837
272
2,723
Amort. of excess value
(124)
(26)
(217)
Other items
(2)
(1)
(7)
12
Quarterly Underwriting Results
General Insurance (MNOK)
270
346
165
319
259
191
79
165
97
191
(369)
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
2009
2008
2010
13
2009
2008
2010
Premiums
General Insurance (MNOK)
Gross written premiums fell by 1.8 per
cent in Q1 2010 vs. Q1 2009
286
GPW development – General insurance
Q1 2009 – Q1 2010
• Increase in Private is attributed to an
improved growth in premiums in force
compared with last year, together with the
effect of premium increases that were
6,641
6,523144
286
43
67
50*
carried out
• Decrease in Commercial due to a consistent
focus on profitability, including through the
major renewals at year-end
Q1 2009 Private Commercial Nordic Baltic Group adj. Q1 2010
• Increase in the Nordic segment due to a
general growth in business, where the
fastest growth was seen in the commercial
market in Sweden
GPW development adjusted for currency effects**
Q1 2009 – Q1 2010
144
286
200
53
50*
• Decrease within the Baltic segment due to
market contraction
6,641
6,69514
**Translation based on average currency rate for Q1 2009*Group adjustments/ internal reinsuranceLarge losses* - net
General Insurance
Reported Expected Actual
Q1 2010 (Q1 2009)
MNOK 126
(MNOK 136)
MNOK 128
Reported Expected Actual
claims figures large losses large losses
Claims
MNOK 3,544
(MNOK 3,015)
3.3%
(3.6%)
3.4%
93.0%
(79.6%)
Loss ratio
63
50
74
51
Actual large losses – by business area
13
0
12
0
15
0
0
Private
Commercial
Nordic
Baltic
Q1 2010 Q1 2009
Run-off – net
3.0
Run-off, % of earned premium
Run-off (MNOK)
1.0
1.5
2.0
2.5
3.0
Group Life and Motor BI (Norway)
Liability & Accident (Denmark)
-1.5
-1.0
-0.5
0.0
0.5
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
100
300
104
Q1
-2.0
5
Egenregning
Gjennomsnitt
Q1 2010
Q1 2009
2009
WC & Diseases (Norway)
For own account
Average
• Run-off gain in Q1 2010 of MNOK 104
• Run-off gain in Q1 2010 due to:
– Stable and positive development of previous claims in motor (BI) in Norway
– Positive development of large fire claims in Norway
16
Cost Development
General Insurance (MNOK)
Cost development general insurance
Q1 2009 – Q1 2010
Cost decrease of 6.1 per cent in Q1
2010 vs. Q1 2009
• Positive development in the Norwegian
segments in Q1
• Cost reducing initiatives
6779
24 23 15 29
14
• Non-recurring income of MNOK 43
due to AFP-Act
• Increase in Nordic due to growth, especially
within the Swedish commercial business
d h hi l b l b i
677 636 4 24 23 15 14and the white label business
• Positive development in Baltic in Q1, mainly
due to cost reducing measures implemented
through 2009 and Q1 2010
Non-recurring income related to AFP
Return on Equity
Equity (MNOK)
• Capital adequacy of 17.4 per cent (18.9 per
cent year end 2009)
• Solvency margin of 677.3 per cent (713.8
per cent year end 2009)
22,226
21,968
Q1 2010
YE 2009
Pre-tax Return on Equity (%)
15.2
6.2*
18
Q1 2010
2009
Economic Capital Allocation*
NOK bn
6.5
2.7
0.4
1.2
0.1
3.4
1 4
1.6
0.2
2.8
3.3
20.6
0.7
1.7
1.4
Pri
vate N
o
Commer
c
Nordi
c
Ba
lt
ic
Asset Ri
sk
e
Asset Ri
sk
Pensi
on
a
Bank
Health
A
ddi
ti
ona
req
u
Excess e
c
over
b
Bri
dgi
ng
E
IFRS Equ
i
orway
cia
l N
or
w
ay
k (Non-l
ife comp
a
ex Storebrand
k, Store
b
rand
and savi
ngs
l bi
ndi
n
g
capi
tal
u
irements
conomi
c capi
tal
a
v
b
in
di
ng requi
rem
e
E
CA
and IFRS Eq
u
Capital
ity Capi
tal
, di
vi
d
e
adjusted
19
* Adjusted for dividend for 2009 and the acquisition of Nykredit Forsikringani
es)
va
ila
b
le
ents
u
it
y
end
Investment Performance
Investment Performance
Investment Performance
Highlights – first quarter
• Total investment portfolio of MNOK 52 650
Return Q1 2010
Per Asset Class
• Total investment portfolio of MNOK 52,650
as at 31 March 2010
• Positive return on the investment portfolio
in Q1 2010 of 1.6 per cent (0.6 per cent)
3.5 %
2.1 %
1.7 %
1.3 %
1 2 %
1 2 %
• Good return on the fixed-income portfolio of
1.5 per cent
• Positive result of MNOK 82 from Storebrand
and MNOK 35 from SpareBank1 SR-Bank
(the latte based on Gjensidige’s o n
0.4 %
1.2 %
1.2 %
Equi
t
Mon
e
Mar
k
Curr
e
bon
d
HTM
-Loa
n
recei
Real
Hed
g
and
(the latter based on Gjensidige’s own
estimate)
• Positive return in the Private Equity portfolio
of MNOK 77
tie
s
ket
ey
d
s
ent
-bonds
n
s and
vables
estate
other
g
efunds
• No special conditions affecting the real
estate portfolio in the first quarter
• Impairment of international real estate
funds of MNOK 13
Asset Allocation
Asset Allocation March 31, 2010 (March 31, 2009)
12.9 %
(6.9 %)
2.7 %
(3.2 %)
11.9 %
(12.5 %)
17.5 %
(19.0 %)
4.3 %
(0.0 %)
Equities
Money market
Current bonds
(
)
28.8 %
(32.1 %)
HTM-bonds
Loans and receivables
Hedge funds and other
Real estate
22.0 %
(26.3 %)
(32.1 %)
Solvency II
Solvency II
Solvency II
Overview of preparations
Preparations for Solvency II
•
GAP analysis performed in 2008
Status
•
Participation in all QISes (2005–2010)
•
GAP analysis performed in 2008
•
Project start up in 2009
•
Gjensidige is well positioned for compliance
with SII, but adjustments and preparations
p
Q
(
)
•
ALM model in use for over 5 years
•
ALM model includes all general insurance
premiums*
•
Risk Management System established with
are needed
Risk Management System established with
required functions
•
Three lines of defense are in place
•
Preparations for ORSA are planned; work on
version 1 of ORSA document is started
Significant involvement from Board of
Directors and Group Management
•
Group Risk Committee is steering group for
Group Risk Committee is steering group for
Gjensidige’s Solvency II project.
•
Members are CEO, CFO, CRO, CIO,
Executive VP Product/Underwriting,
Executive VP International General
I
Chi f A t
24
Insurance, Chief Actuary
Solvency II
Internal Model
What is a Solvency II Internal Model?
Gjensidige’s Internal Model
•
It’s not just number-crunching
•
It’s company specific
•
There are strict criteria for approval
•
We have a capital model, in use since
2004
•
The model has been used actively in
business processes
•
There are strict criteria for approval
business processes
•
The model was not developed to
satisfy Solvency II: gaps exist
Expected benefits
•
Improved Enterprise Risk Management
•
Improved alignment of regulatory and
risk based capital requirement
Solvency II
QIS5 preliminary estimate*
QIS 5, preliminary
NOK bn
IFRS Equity
22.0
QIS 5 preliminary capital implications
•
Excess capital of NOK bn 11.3
IFRS Equity
22.0
Balance sheet adjustments
+4.8
Intangibles, dividends
- 4.1
Own Funds
22 7
•
Nykredit acquisition utilises NOK bn 2.4 of
excess capital
•
Investments in Storebrand (STB) and
Sparebank1 SR-Bank (ROGG) of NOK bn 5.4
•
Most of Own funds qualify for Tier1 leaving
Own Funds
22.7
Market risk
4.6
UW i k
10 3
•
Most of Own funds qualify for Tier1, leaving
considerable capacity for hybrid capital
Considerable uncertainty
UW risk
10.3
Operational risk
0.9
Cap.req. subsidiaries
(non-insurance)
0.6
•
Considerable uncertainty remains regarding the
“final” Solvency II requirements
•
Many uncertainties with regards to interpretation
of QIS 5 technical specifications
(non insurance)
Diversification
-5.0
SCR Group
11.4
Main assumptions
•
STB and ROGG investments are counted as part
of excess capital
•
QIS5 preliminary specifications are used
26
Excess capital
11.3
•
QIS5 preliminary specifications are used
•
Natural Perils Fund included in Own Funds
Solvency II
Final remarks
Preparing for Solvency II
•
Gjensidige is well positioned in their
overall preparations
•
Gjensidige will apply for use of an
internal model
internal model
•
Considerable regulatory uncertainty
remains regarding the details of
Solvency II and its impact on the
capital requirement
Outlook
28
Outlook
• Poor underwriting results in the first quarter
of 2010 due to the harsh winter. A normal
t
d i th i
ti
i
t d
trend in the insurance operations is expected
for the rest of the year.
• The competition in the Nordic and Baltic
general insurance market is still increasing,
and is expected to remain tough going
and is expected to remain tough going
forward. The distribution power in Denmark
has been considerably strengthened through
strategic agreements with Nykredit and EDC.
• The bank has achieved a volume that should
make it possible to operate profitably in the
coming years.
• The financial markets are marked by
uncertainty as to the effects of changes in
economic policy and the weakened fiscal
economic policy and the weakened fiscal
position for a number of countries.
• The Group’s capital situation and financial
solidity is strong
Attractive Nordic
General Insurance
k
d
l
Market Fundamentals
Market Leader in
Norway - Strong Brand
and Customer
Affiliation
Attractive Return on
E
it S
t d b
A unique model
Equity Supported by
Strong Capitalisation
Value Focused
Management Team with
Outstanding Track
Record
Scope for Further Cost
and Revenue
Efficiencies - In
combination with
Attractive Growth
Opportunities
30
Opportunities
Supplementary Information
Supplementary Information
Key Financials
Group Figures
MNOK
Q1 2010
Q1 2009
2009
Gross premiums written, total
7,226
7,065
18,276
Loss ratio Gen ins
93 0%
79 6%
77 1%
Loss ratio, Gen. ins.
93.0%
79.6%
77.1%
Cost ratio, Gen. ins.
16.7%
17.9%
17.7%
UW result, Gen. ins.
(369)
97
818
Net income from inv.
846
281
2,788
Profit/(loss) before tax exp.
344
296
3,167
Profit for the period
257
170
2,305
Asset class exposure
Equity exposure
M i i
h k
i
Split of fixed income portfolio
NOK mill.
%
• Main equity exposures are the stakes in
Storebrand and SpareBank 1 SR-Bank,
private equity and current shares
i
d i
Money market instruments
9.188
24,1 %
Bonds:
Bonds held to maturity
15.164
39,7 %
Bonds loans and receivables
2.256
5,9 %
Bonds held for trading
8.316
21,8 %
Fixed income exposure
• Non-public rated issuers are mainly
Norwegian savings banks, municipals,
credit institutions and power producers
Investment grade bond (international)
2.183
5,7 %
High yield bond funds (international)
1.087
2,8 %
Total bonds
29.006
75,9 %
Sum
38.194
100,0 %
Rating NOK
mill.
%
and distributors
Investment grade
29.141
77,1 %
High yield
1.193
3,2 %
Non rated
7.860
19,8 %
Sum
38.194
100,0 %
Rating - including internal rating by Storebrand
NOK mill.
%
Rating including internal rating by Storebrand
NOK mill.
%
Investment grade
35.419
93,7 %
High yield
1.193
3,2 %
Non rated
1.581
3,2 %
Sum
38.194
100,0 %
Cost Development
General Insurance Norway
Employees general insurance Norway
2,272
2,242
2,033
1,990
2,055
2,041
2,060
70 employees
transferred
Baseline YE
2005
YE2006
YE2007
YE2008
YE2009
Q1 2010
transferred
from GPS
June 1, 2008
141
138
104
Branch offices general insurance Norway
104
72
53
51
34
Baseline YE
Market leader in Norway
Across segments and most product lines
Market shares – Total market
Market share - Commercial
8.9 %30.6%
30.0%
17.5%
28.4 % 9.9 % 3.8 % 2.4 % 2.3 %Gjensidige
If
TrygVesta
Sparebank1*
4.7%
Gjensidige If… TrygVesta Sparebank1*
27.0 % 17.3 % 9.9 %
Terra
Codan
DnB NOR
Other
Market share - Private
Market share – Agriculture
(Part of Private)
71.9 %
27.5%
25.8%
15.8 %
2.1 %
9.4 %
17.0%
12.3%
35
2.1 %
Gjensidige
If…
TrygVesta
Terra
Source: FNO, general insurance, 31 December 2009. The definition of Private and Commercial is adjusted to reflect Gjensidige’s business model. * Sparebank1 non-life and Sparebank1 life report separately to FNH. In this illustration the Sparebank1 figures have been joined.
General Insurance
General Insurance
Highlights
General Insurance Private Norway
Highlights – first quarter
Product Lines March 31, 2010
(March 31, 2009)
Motor
Agri-culture
Other
7.0%
(6.5%)
• Earned premiums, net of reinsurance,
performed positively in the quarter with an
increase of 3.6 per cent from Q1 2009 to Q1
2010
• The underwriting result in Q1 2010 was
32.4%
(31.7%)
culture
11.4%
(11.7%)
• The underwriting result in Q1 2010 was
negative MNOK 223 compared to positive MNOK
16 in Q1 2009, as a result of a long period with
low temperatures during the winter
• Increase in the level of large losses from MNOK
Property
18.2%
(17 8%)
Accident
and health
31.1%
(32.3%)
12 in Q1 2009 to MNOK 63 in Q1 2010, whilst
the run-off loss decreased in Q1 2010 compared
to Q1 2009
• Considerable improvement of cost ratio from
17 9 per cent in Q1 2009 to 15 3 per cent in Q1
(17.8%)
17.9 per cent in Q1 2009 to 15.3 per cent in Q1
2010. A decrease in nominal costs of MNOK 112
in Q1 2010 against Q4 2009
• Combined ratio of 111.5 in Q1 2010 (99.1 in Q1
2009)
Key Figures
General Insurance Private Norway
Gross Premiums Written (MNOK)
Combined Ratio (%)
8,035
111.5
2,557
2,413
99.1
93.0
,
Q1 2010
Q1 2009
2009
Q1 2010
Q1 2009
2009
96.2
81 2
17.9
Net Loss Ratio (%)
Cost Ratio (%)
81.2
76.5
15.3
16.5
38
General Insurance
General Insurance
Highlights
General Insurance Commercial Norway
Li bili
Highlights – first quarter
• Earned premiums net of reinsurance fell by
Product Lines March 31, 2010
(March 31, 2009)
Marine
Liability
5.2 %
(4.5%)
• Earned premiums, net of reinsurance, fell by
5.5 per cent in Q1 2010 compared to Q1 2009,
to MNOK 1,111, due to a consistent focus on
profitability
• Lower underwriting result as a result of many
Accident
and health
Motor
14.2 %
(14.6%)
Marine
8.5 %
(10.3%)
g
y
winter-related claims. Underwriting result of
MNOK 25 in Q1 2010 against MNOK 73 in Q1
2009
• Large losses in Q1 2010 of MNOK 13 against
MNOK 74 in Q1 2009 whilst there is an
and health
45.7 %
(46.9%)
Property
25.8 %
(14.6%)
MNOK 74 in Q1 2009, whilst there is an
increase in run-off gain from Q1 2009 to Q1
2010
• Cost ratio of 12.5 in Q1 2010 against 13.4 in Q1
2009. Nominal costs decreased with MNOK 18
Other
(22.9%)
in Q1 2010 against Q1 2009
• Combined ratio of 97.7 in Q1 2010, compared
with 93.8 in Q1 2009
40
Other
0.6 %
(0.8%)
Key Figures
General Insurance Commercial Norway
Gross Premiums Written (MNOK)
Combined Ratio (%)
5 004
97 7
2,266
2.552
5,004
97.7
93.8
93.6
Q1 2010
Q1 2009
2009
Q1 2010
Q1 2009
2009
Net Loss Ratio (%)
Cost Ratio (%)
85.2
80 4
80 6
80.4
80.6
12.5
13.4
12.9
41
Q1 2010
Q1 2009
2009
Q1 2010
Q1 2009
2009
General Insurance
General Insurance
Highlights
General Insurance Nordic
Highlights – first quarter
• Earned premiums net of reinsurance increased
Product Lines March 31, 2010
(March 31, 2009)
Accident
Liability
Marine
0.3%
(0.0%)
Other
0.4%
(1.2%)
• Earned premiums, net of reinsurance increased
with 13.3 per cent, from MNOK 560 in Q1 2009
to MNOK 635 in Q1 2010. The increase is due to
a general growth in the business, with the
fastest growth in the commercial market in
Sweden
Accident
and
health
15.8%
(36.0%)
Liability
7.5 %
(6.5%)
Sweden
• Reduced underwriting result because of a high
proportion of winter claims and a major claim in
Sweden. Negative underwriting result of MNOK
123 in Q1 2010 against positive underwriting
l
f
Motor
30.0%
(24.3%)
Property
46.0%
result of MNOK 23 in Q1 2009
• A slight decrease in large losses in Q1 2010
compared to Q1 2009. The run-off gains in Q1
2010 are lower than in Q1 2009
(32.0%)
• Increasd cost ratio as a result of the growth in
the commercial segment in Sweden. Cost ratio
of 18.6 per cent in Q1 2010 compared to 16.9
per cent in Q1 2009. Nominal costs increased
with MNOK 24 in Q1 2010 against Q1 2009
43
• Combined ratio in Q1 2010 of 119.4 (95.8 in Q1
2009)
Key Figures
General Insurance Nordic
Gross Premiums Written (MNOK)
Combined Ratio (%)
2,657
119 4
1,619
1.576
2,657
119.4
95.8
93.6
Q1 2010
Q1 2009
2009
Q1 2010
Q1 2009
2009
Net Loss Ratio (%)
Cost Ratio (%)
100.7
18.6
79.0
76.3
16.9
17.4
44
Q1 2010
Q1 2009
2009
Q1 2010
Q1 2009
2009
General Insurance
General Insurance
Highlights
General Insurance Baltic
Highlights – first quarter
Product Lines March 31, 2010
(March 31, 2009)
• A decrease in earned premiums, net of
reinsurance, of 30 per cent from Q1 2010 to Q1
2009 as a result of continued market decline in
the Baltic insurance market
• Diminished underwriting result as a result of the
Liability
5.9 %
(5.0%)
Other
2.7%
(2.7%)
• Diminished underwriting result as a result of the
snowy winter. Underwriting result of negative
MNOK 1 in Q1 2010 against positive MNOK 16
in Q1 2009
• No large losses. Run-off gain in Q1 2010 slightly
Accident
and health
20
%
higher than in Q1 2009
• Improved cost ratio through initiation of more
cost-cutting measures. Cost ratio of 27.3 in Q1
2010 (31.4 in Q1 2009)
Motor
56.0 %
(65.9%)
20.1 %
(17.2%)
• Combined ratio in Q1 2010 of 100.6 against
91.6 in Q1 2009
Property
15.3 %
(9.2%)
Key Figures
General Insurance Baltic
100.6
Gross Premiums Written (MNOK)
Combined Ratio (%)
178
592
91.6
93.9
111
Q1 2010
Q1 2009
2009
Q1 2010
Q1 2009
2009
Net Loss Ratio (%)
Cost Ratio (%)
73.3
60.2
62.0
27.3
31.4
31.9
47
Q1 2010
Q1 2009
2009
Q1 2010
Q1 2009
2009
Pension and savings
Pension and savings
Highlights
Pension and savings
Highlights – first quarter
Assets Allocation Group Policy Portfolio (MNOK)
March 31, 2010 (March 31, 2009)
• Very satisfactory increase in AUM, with a total
AUM growth in Q1 2010 of MNOK 3,804, to
MNOK 9,855 as at 31 March, 2010
• Profit margin savings of 0.16 per cent in Q1
2010 compared to 0 19 percent in Q1 2009
Oth
2010, compared to 0.19 percent in Q1 2009
• Value-adjusted return on the paid-up policy
portfolio performed positively with a return of
1.42 per cent in Q1 2010 against 0.54 per cent
in Q1 2009
HTM-bonds
37.8 %
(38 5 %)
Other
financial
inv.
31.1 %
(42.5 %)
• Loss before tax for Q1 2010 of MNOK 11
compared with a loss of MNOK 35 in Q1 2009.
The positive performance was mainly
attributed to a strong growth in income, a
positive return on the group policy portfolio
(38.5 %)
Loans and
i bl
positive return on the group policy portfolio
and a lower cost level
• 95.1 per cent of the customers at the end of
the quarter were also insurance customers
H
d l b
k
’
f li f
d
Equity
funds
5.5 %
(3 8%)
Current
bonds
11.6 %
(0.0 %)
receivables12.8 %
(0.0 %)
49
• Handelsbanken’s portfolio transferred to
Gjensidige from Q1 2010
(3.8%)
Money
market
1.0 %
(15.2 %)
Key Figures
Pension and savings
Assets Under Management (MNOK)
Profit Margin Savings (%)
10 90
3,804
9,855
6,051
0.90
Addition in the period
509
Q1 2010
Q1 2009
31.03.2010 YE 2009
0.16
0.19
Q1 2010
Q1 2009
2009
Customer Development
59,865
59,325
Profit before tax
Q1 2010
Q1 2009
2009
540
4,705
Addition in the period
(11)
(35)
50
540
Q1 2010
Q1 2009
31.03.2010 YE 2009
1) Management income divided by average AUM (savings)
