Gjensidige Forsikring Asa

Hello there, pardon the interruption. We are now at the top of the hour. Please do let me know whenever you're ready to start. And we currently have 13 participants. You're ready? Thank you so much, Mitra. One moment, please, and have a good call. Thank you. Hello and welcome to the NVDA's Q2 2025 results presentation. My name is Laura and I will be your coordinator for today's event. Please note this call is being recorded and for the duration of the call, your lines will be on listen and remote. However, you will have the opportunity to ask questions at the end of the call. This can be done by pressing star 1 on your telephone keypad to register your questions. If you require assistance at any point, please press R0 and you will be connected to an operator. I will now hand you over to your host, Mitra Negar, Head of Investor Relations, to begin today's conference. Thank you.

Thank you, operator. Good morning, everyone, and welcome to Jensidia's second quarter presentation. My name is Mitra Negar, and I am Head of Investor Relations. As always, we will start with our CEO, Geir Holmgren, who will give you the highlights of the quarter before our CFO, Jostein Amdahl, 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 to page two for comments on our second quarter results. I am very pleased to see that our efforts to improve the results are continuing to come through. The results this quarter show a significant improvement. However, it is important to emphasize that part of this is due to natural variability inherent in insurance business. The profit before tax was 2 billion and 955 million kroner. General insurance service result was 2 billion and 200 million, significantly up year on year. Insurance revenue increased by 11.7%. The combined ratio declined to 79%. reflecting improvements in both the loss and cost ratios. It is very encouraging to see that the underlying profitability improved by 7.5 percentage points when adjusting for adverse development in claims and a change in risk adjustment in the second quarter last year. Our investment generated returns of 1 billion and 102 million, contributing to delivering a solid return on equity of 31.3%, and our solvency ratio was 182% at the end of the quarter. Jostein will revert with more detailed comments on the results for the quarter. A few words about property insurance on page 3. I am very pleased to see higher profitability for private property this quarter as well, thanks to our persistent focus on implementing necessary pricing measures. But it must also be noted that there were no significant weather events during the quarter. The second quarter is usually quarter with the fewest weather events. In addition, we had fewer fires impacting both claims frequency and severity. Although claims for property insurance are highly volatile, we see a promising development in underlying profitability for this product line. Claims inflation has developed as expected. Average premiums increased by more than 40% during the past year. These are necessary price increases, but having this in mind, it is particularly encouraging to see that our customers remain loyal to us and that we continue to attract more customers. All of these are difficult times to predict future claims costs. Given ongoing geopolitical instability, rising defence and infrastructure spending, and potential trade barriers, we see a reduced inflation picture and lower of a near-term forecast for claims inflation, somewhat to 3-5%. Based on this, and the improved profitability for products so far, we have also dampened current price increases to just above 40% from this month. Over to page 4, and a few words on motor insurance in Norway, which, thanks to the significant pricing measures over many quarters, combined with a stabilization of claims costs, is an important driver for the improved profitability for private Norway, together with improvements just discussed for private property. The upward pressure on frequency, is gradually abating. Adjusting for the timing of Easter this year and the mild winter, the increase in underline crime frequency continued its downward trend, resulting in an estimated underline increase of only 1 percent this quarter. Our pricing will reflect a continued moderate increase in claims frequency. Claims inflation increased by 4.6% this quarter within our expected range. Average premium rose by more than 90% during the past 12 months. We are aware of the risk from tariffs and potential supply chain disruption on the cost for spare parts, but our short-term outlook is somewhat reduced. Claims to inflation picture down to 3-6%. Given the risk mentioned, the range is as before quite wide. Based on the downward trend in growth in underlying frequency and our more moderate forecast for claims to inflation and the improved profitability for the product, so far we have dampened our price increases to around 16% from this month. We are closely monitoring the situation for all our products and will respond swiftly should any of our assumptions change. So moving on to page five. We delivered high results across all segments this quarter. The strong growth momentum in Norway continued, supported by effective pricing measures, high customer retention and an increase in the number of private customers. As expected, our strategic focus on risk selection and prioritising profitability moderated the growth rate for our commercial portfolio. Profitability improved significantly, supported by the favorable development in claims, but also reflecting pricing measures, efficient operations, and continued delivery from our claims cost-saving program. Our Danish operation also demonstrated improved performance this quarter. I am particularly pleased with the results for the private portfolio, reflecting our strong efforts to put through targeted pricing measures and enhance operational efficiency. Favorable weather conditions also impacted results, although there is still an upside potential for retention in Denmark. It is encouraging to see the improvements for the private portfolio despite the price increases. The Danish commercial portfolio also delivered better results, although retention was somewhat down. We are placing strong emphasis on pricing and tightening our terms and conditions. At the same time, we are implementing cost efficiency initiatives, including process improvements and headcount optimization. The implementation of our new core IT system for our commercial portfolio is progressing steadily, and we look forward to realizing its full potential over time. We remain committed to driving continuous improvements across all areas of our Danish business. At the same time, we recognize that quarterly volatility may occur. Our Swedish operation continues to build on its positive momentum, showing sustained progress based on good growth and increased profitability. Turning to page 6. The Customer Dividend paid by Jens-Idias Stiftelsen is one of the most important ways we demonstrate our commitment to customers. It strengthens customer loyalty, continues to build trust and reinforces the value of being a customer in Jens-Idias. Ultimately, the Customer Dividend sets us apart in the insurance market and helps us stay true to our roots as a customer-owned operation. This year, around 900,000 customers will receive a total of 2.8 billion kroner, corresponding to 11.1% of the premiums paid in 2024. Over to page 7. We continue to actively pursue our strong sustainability ambitions. As shown on this slide, we have launched a number of innovative initiatives that are designed to create significant customer value, while reducing claims costs over time. I'm also very pleased to share that our AAA ESD rating from MSCI has been reaffirmed, reflecting our ongoing commitment to responsible and sustainable business practices. So with that, I will leave the word to Jostein to present the second quarter results in more detail.