Gjensidige Forsikring ASA (GJF) Earnings Call Transcript & Summary

Good afternoon, everyone, and welcome to Gjensidige First Quarter 2026 Preclose Call. My name is Mitra Negard, and I am Head of Investor Relations. . With me, I have our IRO, Jonas Fougner. Please note that this call is being recorded, and the recording will be published on our Investor Relations website after the call. We will start with going through the Q1 reminder, which was published on our website yesterday. This reminder highlights relevant public information and will not include any new business updates. Afterwards, we will open up for a Q&A session. As always, we only answer questions related to already disclosed and public information. And please note that if you want to ask questions, you need to log on via the Teams app. Over to you Jonas.

You must every -- let us start with a few key dates. Our silent period starts on the first of April, and we will be releasing our Q1 results on the 29th of April. As always, we kindly ask you to forward your estimates using the template Mitra sent you yesterday. And please fill in all open cells in the sheet. We have included control lines to help you identify and avoid potential errors in your sheets. Please make sure the control lines are error free before sending the file back to us. The deadline for sending us your estimates is the 16th of April. We will publish consensus on our website on the 24th of April. Now let's move on to the reminder. As usual, we start with comments on the weather. For the sake of good order, we always remind you of the seasonality in our business with the winter quarters, Q1 and Q4 normally having higher claims ratios than the summer quarters, Q2 and Q3. There have been no significant natural peril events in Scandinavia so far this quarter. Overall, Q1 2026 has been consistently cold and dry in Norway. Denmark has also experienced relatively cold and dry conditions and also a period with heavy snowfall. Sweden started the winter with heavy snowfall and low temperatures followed by a milder period. The proposed dividend for 2025 of SEK 14.5 per share will be paid on the tenth of April, subject to approval by the AGM later today. The X date is tomorrow the 27th of March. With the sale of our Baltic operations completed on the second of January, the line for profit from discontinued operations will no longer include results from this business. As announced at Q4, the group solvency ratio in Q1 2026 will have a positive impact of around 5 percentage points from the completion.

As announced in our stock exchange release on the fifth of February following the recent ruling by the Danish Supreme Court concerning historical pricing practices in the Danish insurance market, we will reverse the provision of DKK 80 million in the first quarter of 2026. As a reminder, this provision was recognized in the first quarter of 2024 following a ruling against TIC, which was a party to the case. The reversal in the first quarter 2026 will be allocated in line with the original provisioning split with $70 million as increased insurance revenue in Corporate Center and $10 million recognized under other items. Over to large losses, the expectation for 2026 is approximately PLN 580 million per quarter. And for the sake of good order, please note that this figure is an estimate and not a guiding per quarter. Large losses are random in nature. And in terms of quarterly estimates, we simply divide the annual estimate by for -- in terms of excess reserves, there is no change in the communication. We continue to set reserves according to our best estimate. And bearing history in mind, we expect runoff gains and losses also in the future. On inflation, for the most recent comments on this topic, please refer to our Q4 2025 presentation material. Moving to solvency. As usual, we have listed the main items for the eligible funds and the capital requirement in our reminder. Remember, the effect from the completion of the sale of our Baltic operations Jonas just mentioned. Also bear in mind that the eligible funds at the end of the fourth quarter this year or fourth quarter last year included approximately EUR 800 million of the EUR 900 million Tier 2 bond we issued in October 2024. We expect the eligible amount of the Tier 2 loan to increase over time as the capital requirement increases driven by growth. And the decision to call the Tier 1 bond, which we announced on the second of March, the EUR 713 million outstanding does not affect own funds in the first quarter as the settlement date is on the seventh of April. Bear in mind the mechanics for dividend treatment when calculating eligible own funds. For the first through the third quarter, the deduction is based on the formulaic dividend equal to 80% of profit after tax. In the fourth quarter, the amount deducted is a residual of the proposed dividend for the year. Moving on to our investment portfolio. As always, we believe a good starting point for estimating returns is using the same asset allocation as the previous quarter, applying returns on the indices we have listed in the reminder. And finally, on unwinding and change in financial assumptions, remember the rules of thumb and the example calculation published on our website. And as per routine, our reminder includes updated swap rates. So with that, we will now open up for questions. Please raise your hand, and we will open your line.

Okay. There doesn't seem to be any questions. Thank you very much for your attention. And have a nice afternoon.