Record strong profit in 2016 for the Norwegian GJENSIDIGE Group

23 February 2017 — Daniela GHETU
For the full year 2016, the Norwegian GJENSIDIGE Group, one of leading players in the Northern Europe, delivered a record-strong profit before tax of EUR 676.2 million, 21.5% up y-o-y. The underwriting result was EUR 411.3 million, corresponding to a combined ratio of 83.4% (83.7% in 2015). The underwriting result was positively influenced by solid premium growth of 5.5% compared with the year before, leading to earned premiums totalling EUR 2.47 billion.

GJENSIDIGE's operations rank 4th in the regional consolidated insurance market of the Baltics, with a 12.5% market share, while the top leader is PZU (24.7%), followed by IF (14.1%) and ERGO (12.8%). GJENSIDIGE's Baltic operations offer general insurance products to private and commercial customers in Lithuania, Latvia and Estonia. The products are distributed through own channels, agents and brokers. In 2015 GJENSIDIGE aqcuired PZU's business in Lithuania, and is now the 4th largest player pan-Baltic. The Baltics insurance market is immature, and GJENSIDIGE is well positioned for future growth. The largest share of the company's Baltic portfolio is formed by motor insurance (55.8%), while property insurance and the health and accident ionsurance lines account each for about 18.5% of the GWP.

Following the acquisition of PZU Lietuva, GJENSIDIGE is the second-largest general insurance company in Lithuania and the fourth largest player in the Baltic region. An improvement programme including investments in IT systems, product development, tariff programmes, distribution, CRM and claims operation is launched in order to position the Company for expected future growth and improved profitability. The Baltic operation is expected to break-even during 2017 and be profitable from 2018.

"We are very satisfied with our performance throughout 2016 and with a solid finish to the year," says CEO Helge Leiro BAASTAD. "Going forward, we will continue to secure high customer satisfaction, cost efficient operations and at the same time deliver attractive returns to our shareholders," BAASTAD says

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