Continued strong retention, effective and differentiated pricing measures, good cost control and a favourable claims development resulted in the highest quarterly underwriting result, excluding run-off gains, in the Group's history. Returns on the investment portfolio reflected continued rebound in the financial markets. The Group's outlook remains good, supported by a strong capital position.Gjensidige Forsikring Group recorded a profit before tax ofNOK 2,048.4 million (1,271.5) for the quarter. The profit from general insurance operations measured by the underwriting result wasNOK 1,512.3 million (1,061.1), corresponding to a combined ratio of 78.2 (83.2). The return on financial assets was 0.9 percent (0.5) orNOK 550.6 million (278.8). The profit after tax wasNOK 1,550.6 million (993.2). Earnings per share amounted toNOK 3.10 (1.99). -We are very satisfied with delivering a strong third quarter result, including a record high quarterly underwriting result. Our performance inNorway is very solid and we continue to see progress outsideNorway . I am also very pleased that we once again rank number one on overall reputation in the Norwegian finance sector and number six independent of sector, according toIpsos' survey, CEO Helge Leiro Baastad says. The underwriting result was driven by 10.0 per cent growth in earned premiums, an improved underlying frequency loss ratio and lower large losses. Earned premiums rose 7.3 per cent in local currency. The underlying frequency loss ratio improved primarily due to effective and differentiated pricing measures. The Covid-19 pandemic had a slightly positive impact on the Group's claims estimated at approximatelyNOK 41 million , corresponding to 0.6 percentage point on the loss ratio. This was primarily related to travel insurance, partly offset by accident and health insurance products. The Pension operation recorded a lower profit due to higher operating expenses. All asset classes in the investment portfolio contributed positively in the third quarter except PE funds. Returns on the other asset classes reflected lower interest rates and credit spreads, in combination with strong equity markets. Year to date the Group recorded a profit before tax ofNOK 4,028.1 million (6,025.2). The result in the first nine months of 2020 was significantly impacted by negative returns on the investment portfolio in the first quarter, reflecting the turmoil in the financial market in the wake of the Covid-19 situation. The corresponding result in the first nine months of 2019 included a gain on the sale of Gjensidige Bank ofNOK 1.6 billion . The profit from general insurance operations measured by the underwriting result wasNOK 3,913.8 million (3,116.8), corresponding to a combined ratio of 80.7 (83.0). The profit after tax from continuing and discontinued operations wasNOK 3,023.5 million (5,082.8) and the corresponding earnings per share wereNOK 6.05 (10.24). The return on financial assets was 0.3 percent (2.6) orNOK 189.8 million (1,473.9). The Covid-19 pandemic caused a significant downturn in the financial markets towards the end of the first quarter, resulting in a broad decline in most asset classes. This changed in the second and third quarter, although the markets have not yet fully recovered. Highlights third quarter 2020 (third quarter 2019) · Profit/(loss) before tax:NOK 2,048.4 million (1,271.5) · Earnings per share:NOK 3.10 (1.99) · Earned premiums:NOK 6,949.0 million (6,317.0) · Underwriting result:NOK 1,512.3 million (1,061.1) · Combined ratio: 78.2 (83.2) · Cost ratio: 13.9 (14.1) · Financial result:NOK 550.6 million (278.8) Special factors and events · Dividend for 2019 was paid on30 September 2020 :NOK 6,125.0 million , corresponding toNOK 7.25 per share as a regular dividend andNOK 5.00 per share as a special dividend. Highlights year to date 2020 (year to date 2019) · Profit/(loss) before tax:NOK 4,028.1 million (6,025.2) · Earnings per share:NOK 6.05 (10.24) · Earned premiums:NOK 20,284.8 million (18,336.6) · Underwriting result:NOK 3,913.8 million (3,116.8) · Combined ratio: 80.7 (83.0) · Cost ratio: 14.5 (14.6) · Financial result:NOK 189.8 million (1,473.9) This release contains alternative performance measures (APMs). APMs are described at www.gjensidige.no/reporting in a document namedAPMs Gjensidige Forsikring Group Q3 2020. This information is subject to disclosure under the Norwegian Securities Act section §5-12. Head of Communication Øystein Thoresen. Tel: 47 952 33 382 Head of Investor RelationsMitra Hagen Negård . Tel: 47 957 93 631 Gjensidige is a leading Nordic insurance group listed on theOslo Stock Exchange . We have about 3,700 employees and offer insurance products inNorway ,Denmark ,Sweden and the Baltic states. InNorway , we also offer pension and savings. The Group's operating income was NOK 28 billion in 2019, while total assets wereNOK 112 billion .
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