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Investing.com -- Shares in Gjensidige Forsikring ASA (OL:GJFG) popped more than 5% Friday after the Norwegian insurer delivered a markedly stronger second quarter, with profit before tax rising to NOK 2.96 billion from NOK 1.79 billion a year earlier.
Net profit reached NOK 2.24 billion, lifting earnings per share (EPS) to NOK 4.42 from NOK 2.65 and driving the annualised return on equity to 31.3 percent.
Insurance revenue from general insurance advanced 11.7 percent to NOK 10.49 billion, powered by price increases across private and commercial lines, solid renewals, and volume gains in Denmark and Sweden.
These measures, coupled with favourable claims trends, pushed the insurance service result up to NOK 2.20 billion from NOK 1.41 billion and improved the combined ratio to 79.0 from 85.0.
The loss ratio fell 5.4 percentage points, including a ten-point improvement in the underlying frequency loss ratio.
Adjusted for first-quarter claims recognised in the period and last year’s risk-adjustment gain, the loss ratio improvement widened to 7.1 points. All business segments contributed, led by Norwegian private and commercial operations.
The cost ratio edged down 0.5 points on disciplined spending against rising revenue.
Investment portfolios and the pension unit added to earnings, reinforcing Gjensidige’s strong capital position.
Management reiterated all financial targets for 2025 and 2026.