Gjensidige Forskr Uns/Adr

Good morning everyone and welcome to Jensidis third quarter presentation. My name is Berit Nilsen and I'm head of investor relations. We will start with our CEO, Geir Holmgren, who will present the highlights of the quarter followed by our CFO, Jostein Amdal, who will take you through the numbers in more detail. We will have plenty of time for questions afterwards. Geir, over to you.

Thank you, Berit. Good morning. So, turning to page two. I am pleased to report a very strong result and quarter for Insedia. We saw solid online improvements year on year, driven by discipline, pricing, better risk selection, and operational improvements. The favorable claims environment from the first half continued into the quarter. Before turning to the results, however, I would like to highlight a few important developments. First, we continue to make good progress in home seller insurance in Norway. In less than four years, premiums have grown to 1 billion Norwegian kroner, supported by strong estate agent partnerships and the acquisition of BuySure a year ago. The new partnership with Privatmeglein, announced in the second quarter, will further expand our reach and strengthen our market position. Home seller insurance gives us access to customers at an important point in their home ownership journey. Home owners tend to be loyal and profitable customers, creating clear opportunities to broaden the relationship over time. Second, this year marks 70 years of our partnerships with the Norwegian Farmers Union. We are therefore particularly pleased to have renewed the agreement for another five years. Agriculture has always been important to UN-Syria, and the renewed partnership allows us to build on a unique shared history. To strengthen our offering to Norwegian farmers, it also lays the foundation for even closer cooperation on prevention and preparedness in the years ahead. This is something we are proud of. Third, we are strengthening distribution in private Denmark. Over the past year, targeted pricing measures have significantly improved profitability. A more efficient operating model and the sharing of best practices across markets have further strengthened the business. We are now adding tied agents to complement our direct distribution and provide proactive advice to new and existing customers. Our new partnership with CA, a Danish membership organization for highly educated professionals, will give us access to around 68,000 members. Together with your renewed agreement with the bank Spirekassen Kronnyland, these initiatives provide a strong platform for profitable growth. Finally, I would like to highlight the major residential fire at Krokstelva in July, which destroyed more than 100 homes and displaced many families. We contacted affected customers personally, established a local claims office, and mobilized our supplier network to arrange temporary housing and provide practical and financial support. Our response shows how we serve our customers, personal support when it matters, and fast, convenient digital solutions when that works best. Understanding what customers value has long been a key strength for us, and will remain so as technology and customer expectations evolve. So, turning to page three. I am proud to see that our sustained focus on customers is reflected in the strong position we hold across our markets. This week, the annual IPSOS profile survey of major Norwegian companies was released. The results confirm our strong position. We rank 12th among 101 companies across 11 industries, with 65% of respondents having a positive overall impression of Jensidia. And we are the highest ranked bank or insurance company in the survey. In Danish commercial, our latest customer survey also shows encouraging results. Our customers report higher satisfaction than the market average, with particularly positive feedback on claims handling. Together, these results reinforce something fundamental to our business. Strong customer positions are built over time, through the experiences we deliver and we trust to earn. I'm proud of the position we have built, and we will continue to strengthen it. So, with that, let me now turn to our results for the quarter. Let's move to page four. Insidia generated a profit after tax of 2 billion 77 million in the third quarter, a significant increase year on year. The increase was mainly driven by a substantial improvement in the insurance service result. The favourable claims conditions seen in the first half continued into the third quarter. Revenue growth was 3.7% in local currency, or 5.3%, excluding the non-recurring effect related to home sale insurance in private Norway last year. Growth was mainly driven by pricing measures across our private and commercial portfolios, alongside higher volumes in several product areas in private Norway. The customer portfolios in both private and commercial have increased during the last year, despite the temporary negative effect from the termination of the agreements with the fire mutuals. Looking ahead, we see attractive opportunities to accelerate profitable growth across our businesses. In Norway, targeted initiatives in private property are helping us win new customers and expand relationships with existing ones. We also see a significant potential in life, health and pension, supported by growing demand for long-term financial security and our broad customer base. This includes offering commercial customers insurance and pension through one point of entry. In Denmark, our expanded distribution capacity and new and renewed partnerships position us well for profitable growth. The online frequency loss ratio improved significantly year on year, and large losses were lower. Excluding restructuring costs in our technology division, the cost ratio was 10.7%, reflecting sustained cost discipline. The restructuring will continue to strengthen our technology capabilities, including our ability to develop and deploy AI, automation and data-driven solutions at scale. It will also simplify the organization and support further efficiency gains. Overall, our strong insurance performance in the quarter supported an annualized return on equity of 34.2%. Our capital position remains strong, reflected in a solvency ratio of 190%. Turning to page 5 for some more details. In general insurance, the insurance service result was 3 billion and 4 million with a combined ratio of 73.6%. I'm very pleased with this strong performance. Targeted price Increases in discipline risk selection contributed to lower loss ratio in both private and commercial compared to last year. Large losses were also lower than we should normally expect, while operational efficiency and continued cost discipline supported the result. Both private and commercial delivered high insurance service results year on year. In Sweden, performance was weaker, reflecting a normalization in medium-sized claims compared with last year. The corporate center result included a technology restructuring cost mentioned earlier. The financial result in the general insurance business was minus 193 million this quarter, reflecting the impact of high interest rates and wider credit spreads. Our pension business delivered a pre-tax profit of 98 million, adjusted for the change in CSM. Excluding last year's non-recurring cost on core system expense, the result also improved year on year. This reflected a higher insurance service result, as suggested for CSM, partly offset by lower net finance income. Over to page 6. As mentioned, insurance revenue increased by 3.7% in local currency this quarter. Excluding the last year's non-recurring effect, earned land growth was 5.3%. Turn to private. Revenue increased across Norway and Denmark, supported by pricing measures and, in Norway, higher volumes. As highlighted last quarter, our new partnerships with Tesla, Privatmegleren and Husærene will broaden our reach and support new businesses going forward. The Tesla partnership has had an encouraging start, while the agreements with Privatmegleren and Husærene will take effect from the beginning of 2027. As also mentioned earlier, we have increased our distribution capacity in Denmark to support profitable growth over time. In commercial, revenues increased across Norway and Denmark, reflecting price increases. Volumes decreased mainly due to our consistent prioritization of profitability over growth, including targeted price increases, particularly for larger customers, as well as somewhat increased competition. Our focus remains on writing the right business at the right price. If that means accepting lower volumes in certain parts of the portfolio, this is a trade-off we are comfortable with, as profitability remains the priority. In Sweden, both price increases and higher volumes contributed to growth. The pricing measures we have taken have strengthened profitability and give us greater flexibility going forward. We expect pricing to remain at least in line with claims cost development, while differentiated pricing will continue to support portfolio quality. Over to page 7. Progress towards our operational targets remains important, as these are key enablers for delivering on our financial ambitions. Customer retention remains high across markets. In Norway, both private and commercial continue to be temporarily affected by the termination of agreements with the five mutuals. Even so, we are pleased with our ability to retain customers in the affected areas. In Denmark, retention remained stable. We also continued to make progress on automation and digitalization. The digital distribution index improved further, with higher distribution efficiency in private and a slight improvement in commercial. Straight-through processing in Norway also increased. So, over to page 8. Sustainability remains a priority for Jensidia, and we continue to make steady progress towards our 2030 targets. We continue to hold an AAA ESG rating from MSCI, reflecting the strength of our sustainability work. We are particularly pleased with the full score for our environmental goals and performance. So with that, I will hand over to Jostein, who will present the third quarter results in more detail.

Thank you Geir, and good morning everybody. I will start on page 9. We delivered a profit before tax of 2 billion and 781 million in the third quarter. Thereby a significant increase in the general insurance result. The general insurance result increased by 733 million year-on-year. The underlying development in the pension business was positive. Excluding the non-recurring expense related to the core system last year, profit before tax adjusted for CSM improved by 25 million. This reflected a higher insurance service result adjusted for CSM, partly offset by lower net finance income. Net finance was negatively impacted by higher interest rates and credit spreads. The result from other items was higher compared to the third quarter last year, mainly reflecting lower expenses and amortization of intangible assets, as well as a higher result for mobility services. This was partly offset by higher natural perils transfers and interest expenses. Turning to page 10 to comment on the segments, starting with private. Private Norway delivered another strong quarter. The insurance service result increased by 351 million year on year, driven by continued revenue growth, lower large losses, and a 4.9 percentage point improvement in the underlying frequency loss ratio, primarily reflecting better profitability in motor. Claims inflation developed broadly in line with our expectations in the quarter. Looking ahead, we expect claims inflation in Norway in the range of 3-6% for motor, helped by favourable currency effects, and 4-6% for property. Inflationary pressure is expected to be somewhat lower in Denmark and Sweden. There is still considerable uncertainty around geopolitics, currency movements and global inflation, and we continue to monitor developments closely. It's also worth mentioning that claims cost development may differ from claims inflation, as it also reflects changes in claims frequency, the types of claims incurred, and portfolio mix. Turning to the private portfolio in Denmark, performance improved further in the quarter. The insurance service result increased by 41 million year-on-year, reflecting a stronger margin, lower large losses, and higher runoff gains. The underlying frequency loss ratio improved by one percentage point, driven by better profitability following pricing measures. The cost ratio improved by one percentage point year on year. Implemented cost efficiency measures together with continued cost discipline are improving efficiency in our Danish private business. Moving to page 11 to comment on the performance of our commercial portfolios. In Norway, the insurance service result increased significantly by 331 million compared with the third quarter last year, mainly reflecting a stronger margin. The underlying frequency loss ratio improved by 9.6 percentage points, driven by better profitability in motor, property and marine insurance, following effective pricing measures and improved risk selection. A lower frequency of mid-size claims also contributed positively. The cost ratio was 7.8% in line with last year. In Denmark, the insurance service result improved by 224 million EUR, driven primarily by a stronger margin and higher runoff gains. The underlying loss ratio improved by 7.2 percentage points, reflecting better profitability across most main products, following effective pricing measures. The cost ratio was 10.1%, down 0.5 percentage points from 2025. Turning to page 12. Our Swedish business reported a 72 million decrease in the insurance service result compared with the third quarter last year, reflecting higher loss and cost ratios. Revenue growth remained solid at 11.3% in local currency. The underlying frequency loss ratio increased by 8.2 percentage points, mainly reflecting lower profitability in property across the private and commercial portfolios, largely due to normalization in the frequency of mid-size claims. Temporary costs associated with digital claims solutions also affected the underlying frequency loss ratio negatively. The cost ratio increased by 2.5 percentage points, reflecting higher operating expenses, mainly due to temporary technology-related costs. Turning to page 13, let me comment on our pension business. The pension business delivered a pre-tax profit adjusted for changes in CSM of 98 million. Adjusted for last year's non-recurring termination expense, profit before tax adjusted for CSM improved by 25.4 million. This reflected a higher insurance service result adjusted for CSM, partly offset by lower net finance income. Net income from the unit-linked business decreased by 12.1%, adjusted for the termination expense, as higher income was more than offset by higher costs. Management income increased, driven by growth in assets under management, while higher administration fees reflected growth in the number of occupational pension members. Net finance income decreased, reflecting running yield, higher interest rates, and negative value investments to real estate. The negative impact from expected future profit sharing with customers exceeded the positive effects of lower insurance liabilities resulting from the higher interest rates. The insurance service result adjusted for CSM improved, mainly driven by the individual disability product and paid-up policies. Let's turn to the investment portfolio on page 14. The result for the quarter reflected positive returns from short-duration fixed income instruments and negative returns from bonds and equities. A high running yield contributed positively, while higher interest rates and wider credit spreads had a negative impact. The real estate portfolio delivered a positive return. It consists of six high-quality properties in Oslo's central business district and is closed to fully let, with long leases and solid tenants. The matched portfolio, net of insurance finance, and the free portfolio both delivered returns of negative 0.04% in the quarter. Overall, portfolio risk remained low. We maintain a well-balanced asset allocation with a clear focus on high credit quality. The investment strategy is therefore well positioned to withstand further market turbulence. Over to page 15. The Group's Solvency ratio remained strong at 190% at the end of the quarter. Solvency II operating earnings contributed positively to legible owned funds. As usual, this was partly offset by the formulaic dividend, which reduced owned funds by 80% of profit after tax. We issued a new tier 2 loan of 1 billion Norwegian kroner in September. At quarter end, 1.2 billion of tier 2 capital was not included in the eligible loan funds. We then redeemed an existing 1.2 billion tier 2 loan on October 7th and expect our remaining tier 2 instruments to be fully recognized going forward. The capital requirement was stable in the quarter. The increase related to growth was largely offset by currency movements. Overall, we remain in a strong capital position with continued flexibility to support profitable growth and shareholder distributions. And with that, I'll give the word back to Geir.