Gjensidige Q2 Profit Beats Forecast, Shares +3%

Gjensidige Q2 Profit Beats Forecast, Shares +3%

Gjensidige Forsikring reported second‑quarter 2026 pretax profit of NOK 2.79 billion, exceeding the consensus average of NOK 2.56 billion compiled from 12 analyst estimates and also surpassing the highest individual forecast of NOK 2.96 billion. The insurance service result for general insurance was NOK 2.38 billion, above the consensus average of NOK 2.12 billion. The combined ratio came in at 78.9%, better than the consensus average of 81.2% and below the lowest analyst estimate of 80%. The cost ratio was 11.7%, exactly matching the consensus.

The results incorporated a one‑off negative impact of NOK 419.3 million (equivalent to DKK 290 million) arising from a Danish Supreme Court ruling that reduced the compensation threshold under the workers’ compensation scheme; this impact was disclosed in the stock‑exchange release on 12 June. Excluding this legal charge, the insurance service result increased significantly year‑on‑year, driven by continued revenue growth, improved margins and strong cost control.

Insurance revenue from general insurance amounted to NOK 11.26 billion, roughly in line with the consensus of NOK 11.24 billion. The underlying frequency loss ratio was 58.5%, well below the consensus average of 63.7%, reflecting improvements in both private and commercial lines in Norway and Denmark. Large losses, net of reinsurance, were NOK 659.6 million, above the consensus estimate of NOK 474 million. Run‑off gains and losses, net of reinsurance, recorded a loss of NOK 297.2 million, compared with analysts’ average expectation of a loss of NOK 184 million.

Profit after tax from continuing operations was NOK 2.12 billion, surpassing the consensus average of NOK 1.95 billion. Earnings per share for continuing operations were NOK 4.18, down from NOK 4.42 a year earlier. The solvency ratio under the approved partial internal model stood at 188.7%, close to the consensus of 189%. The annualised return on equity for the year‑to‑date was 33.3%, up from 31.3% in the prior year.

The group reaffirmed its 2026 financial targets: combined ratio below 82%, cost ratio around 13%, return on equity above 24%, and solvency ratio between 140% and 190%. Following the release, Gjensidige shares rose more than 3%, trading at approximately +3.5% (GJFG+3.53%).