Gjensidige slides as claims frequency weigh

Gjensidige Forsikring ASA

14/07/2023 08:33

** Shares in Gjensidige  GJFG.OL  fall 5% after the
Norwegian insurer reported Q2 results below expectations, citing
higher interest rates and increased claims frequency in Norway
    ** Gjensidige posts a quarterly pretax profit of NOK 1.33
billion ($128 million), more than 30% lower than analysts'
expectations 
    ** "Though Gjensidige's overseas operations exceeded
expectations in Q2, Norwegian Private missed consensus by -15%
and Commercial by -12%," Jefferies says in a note 
    ** Private and Commercial sectors experienced claim
frequency increases of 6.8% and 2.9% points, respectively, with
Norwegian currency weakness possibly playing a role in these
motor and property insurance trends, the broker adds
    ** The company also says that the increase in the underlying
frequency loss ratio was primarily driven by Norway, reflecting
a higher frequency of claims for motor and property insurance
    ** Gjensidige's peer Storebrand  STB.OL  slide 2% in Friday
morning trade after the company's Q2 figures missed estimates 
    ** Gjensidige shares are on track for their worst day since
March and among worst performers on STOXX 600  .STOXX  index
 

 (Reporting By Jesus Calero)
 ((Jesus.calero@thomsonreuters.com))