Gjensidige Forsikring Asa

I will now hand over the call to your host, Mitra Hagenegger, to begin today's conference. Thank you.

Good morning, everyone, and welcome to the fourth quarter presentation for Jens Idia. This is Mitra Megård, and I am head of investor relations. As always, we will start with our CEO, Geir Holmgren, who will start with the highlights of the quarter, followed by our CFO, Justine Amdahl, who will run through the numbers in further detail. And we have plenty of time for a Q&A after that. Geir, please.

Thank you Mitra and good morning everyone. Let us turn over to page two for comments on our fourth quarter results. The profit before tax was 1 billion and 605 million kronor. I am very pleased to see that our strong efforts to improve results are gradually coming through. The general insurance service result was 1 billion and 670 million, significantly up year on year thanks to continued strong growth, comprehensive measures and improved profitability. Insurance revenue increased by almost 12%. The combined ratio declined to 83.3%, reflecting improvements in both the loss and cost ratios. Our investments generated returns of 208 million, contributing to delivering a return on equity of 22.7%. Jostein will revert with more detailed comments on our results for the quarter. Turning to page 3 and looking at the year as a whole. We delivered a pre-tax profit of 6,823,000,000 kr. We generated strong revenue growth of 11% last year. Our combined ratio improved by 1.1 percentage points to 86%. This reflects robust operations and good progress in our cross-border measures to further enhance efficiency in distribution and claims handling processes. I am very pleased that we have brought our cost ratios further down to 12.3% for the year. However, the elevated motor claims frequency and severity in Norway continue to put pressure on profitability, preventing us from delivering on our combined ratio target for the year. I am confident that our ongoing strong pricing measures will continue to improve profitability. We have a strong capital base. Our solvency ratio at year-end 2024 was 185%, at a higher end-of-target range. Investment returns for the year were good, which together with the results from our pension business contributed to a return on equity of 22.7%. Let's turn to the next page for a few comments on the proposed dividend. Our Board has proposed total dividends of 5 billion for the year, consisting of 4.5 billion as regular dividend and 500 million as a special dividend. The regular dividend is equivalent to 9 kroner per share, up almost 3% from 2023. The special dividend is equivalent to 1 kroner per share. For our Norwegian general insurance customers, this once again bows for the distribution of a solid customer dividend from the foundation, Jensidie Stifelsen. The regular dividend corresponds to a payout ratio of 88% for the group. The proposal requires approval from the FSA since the total amount, including the special dividend, exceeds 100% of the net profit in Jensidie Forsikring ASA. Based on the strong capital position for the group, we expect the application to be approved. Our solvency ratio is at a good level, enabling us to maintain our S&P A rating, as well as providing us with sufficient financial flexibility. Our solid capital position also enables us to maintain a high and stable stream of regular dividends. Our dividend policy remains unchanged. We aim to pay high and stable nominal dividends with a payout ratio of at least 80% over time. And over time, we will also pay out excess capital. A few words about property insurance on page 5. Claims frequency was lower in the quarter, reflecting more favourable weather conditions and fewer fires. As we have mentioned earlier, claims frequency for property insurance is highly prone to quarterly volatility. Claims inflation has developed in line with our forecast and we expect it to stay at the current level for the next 12 to 18 months. We monitor the situation closely and are prepared for changes, especially from currency movements and energy prices. We continue to increase prices and promote relevant initiatives regarding damage prevention to reflect the long-term impact of more frequent weather incidents. Average prices increased by 11% last year and we are currently increasing prices with more than 16% going forward. Having this in mind, it is particularly encouraging to see that our customers remain loyal to us and we continue to attract more customers. So, over to page 6 and a few words on motor insurance in Norway. Claims frequency was unchanged this quarter, reflecting more favourable driving conditions. If we try to adjust for these different driving conditions due to weather, we believe the underlying development was some 3% higher. Claims rate inflation has developed, as expected, up 6% this quarter. Together with a shift towards more expensive type of losses, this resulted in lower underlying profitability for private motor in Norway. We expect claims frequency to remain high going forward. We forecast the increase in the repair cost to remain between 4% to 7% over the next 12 to 18 months, starting at the higher end of range and gradually declining towards 4%. The claims mix varies depending on weather, driving behaviour and the mix of types of cars in our portfolio. We have put through significant price increases, growing average premiums by more than 50% last year. We will increase prices further, currently with an average rate of 90%. I am very encouraged to see that we are able to put through these significant and necessary price increases and that these measures are gradually improving profitability. Moving on to page seven, the strong growth momentum in private continued in the fourth quarter. It is very encouraging to see continued high retention in Norway and a further improvement in Denmark. We have put strong efforts into the transfer of best practice across borders. We have improved digital customer solutions, enhanced implementation of the new core IT system in Denmark, and increased the use of advanced technology. These efforts, together with the pricing measures, resulted in 13% higher distribution efficiency in 2024. We will continue implementing measures to further improve this important parameter, aiming for a 25% increase in 2026. I am very pleased to see higher profitability for private Norway compared with the fourth quarter in 2023. Private Denmark showed lower profitability. We will continue to implement targeted measures to further improve profitability. Our commercial segments continue to grow strongly. Retention remained high in Norway, while in Denmark retention declined due to pricing measures. We are very satisfied with the general renewals and portfolio development in Denmark and Norway. Price increases are the main drivers for growth in Norway. In Denmark, the renewals reflect pricing measures and good access to new business. Profitability for commercial in Norway improved in the quarter, while in Denmark it declined. We see the need to continue raising prices and have a strong focus on efficient operations. Our Swedish operations are progressing well with improved profitability, thanks to better risk selection and price increases, as well as efficiency measures. The top line remains broadly unchanged, reflecting lower volumes due to price increases. As mentioned before, we are prepared to sacrifice volume to achieve good profitability. We have recently concluded renewals of the largest part of our reinsurance programs. We are pleased with having renewed the capacity we required with unchanged retention levels. Reinsurance premiums constitute only around 2% of our premium income, and in the renewal we saw premium increases in general reflecting our own increase in exposure, without any increase in margin. Over to page 8. I am very happy to see our strong sustainability efforts through 2024 and the strong recognitions of our progress in this field, as you can see on the slide. We are deeply engaged in damage prevention by supporting and promoting relevant initiatives and holding a close dialogue with key stakeholders. It is rewarding to see that our efforts are both creating customer satisfaction and business value, while also supporting our strong sustainability ambitions. We are convinced that we can make a difference, being the largest insurance player in Norway. We are particularly encouraged by the result from applying sensor technology in homes and buildings, and we see great value in partnerships that can support us in sharing knowledge on climate risk with customers. The purpose is to motivate them to take appropriate measures to reduce the risk and extent of damage. With that, I will leave the word to Jostein to present the fourth quarter results in more detail.