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Gjensidige Forsikring (GJNSY)
OTHER OTC:GJNSY
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Gjensidige Forsikring
(OTC:GJNSY)
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Rating:74Outperform
Price Target:
$31.00
▲(6.97% Upside)
Gjensidige Forsikring's strong financial performance and positive earnings call are the most significant factors driving the score. The technical analysis supports a bullish outlook, while the valuation remains reasonable. The company's ability to manage liabilities and improve cash flows will be crucial for future performance.
Gjensidige Forsikring (GJNSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.48B
Dividend Yield3.09%
Average Volume (3M)106.00
Price to Earnings (P/E)23.6
Beta (1Y)0.29
Revenue Growth6.41%
EPS Growth57.63%
CountryUS
Employees4,664
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)0.45
Shares Outstanding500,000,000
10 Day Avg. Volume38
30 Day Avg. Volume106
Financial Highlights & Ratios
PEG Ratio0.78
Price to Book (P/B)3.95
Price to Sales (P/S)2.78
P/FCF Ratio27.15
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue0.31
Enterprise Value/Gross Profit0.31
Enterprise Value/Ebitda1.57
Forecast
1Y Price Target
$31.00Price Target Upside6.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Gjensidige Forsikring Business Overview & Revenue Model
Company DescriptionGjensidige Forsikring ASA provides general insurance and pension products in Norway, Sweden, Denmark, Latvia, Lithuania, and Estonia. The company operates through six segments: General Insurance Private, General Insurance Commercial, General Insurance Denmark, General Insurance Sweden, General Insurance Baltics, and Pension. It offers motor, home, accident and health, travel, leisure craft, boat, valuables, liability, commercial, marine/transport, agriculture, natural perils, life, and pet insurance products. The company also provides defined contribution occupational pension schemes for businesses, which include disability pension, spouse/cohabitant pension, and child's pension products. It distributes its products through various distribution channels comprising office channel, call center, Internet, partners, and brokers to private and commercial customers. The company was founded in 1816 and is headquartered in Oslo, Norway.
How the Company Makes MoneyGjensidige Forsikring generates revenue primarily through the collection of premiums from its various insurance products. The company underwrites policies for individuals and businesses, charging premiums that are based on the risk profile of the insured. Additionally, Gjensidige earns income from investment activities, as it invests the premiums collected in a diversified portfolio of financial assets. This investment income is a significant source of revenue, especially in low-claim years. The company also benefits from economies of scale due to its size and operational efficiency, which allow for competitive pricing in the insurance market. Partnerships with various distribution channels and intermediaries further enhance its market reach, contributing to its overall earnings.
Gjensidige Forsikring Earnings Call Summary
Earnings Call Date:Jul 11, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 24, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong quarter for Gjensidige, marked by significant profit increases, improved combined ratio, high return on equity, and strong customer loyalty. However, challenges remain, particularly around geopolitical risks and volatility in property insurance claims. Despite these challenges, the company's strong financial position and effective pricing measures indicate a positive outlook.Q2-2025 Updates
Positive Updates
Significant Profit Increase
Profit before tax reached NOK 2,955 billion, with a general insurance service result of NOK 2,200 million, showing substantial year-on-year growth.
Insurance Revenue Growth
Insurance revenue increased by 11.7%, driven by pricing measures across Private and Commercial portfolios in all geographies.
Improved Combined Ratio
The combined ratio improved by 79%, reflecting enhancements in both the loss and cost ratio.
High Return on Equity
Investment returns contributed to a solid return on equity of 31.3%.
Strong Solvency Ratio
The solvency ratio was 182% at the end of the quarter.
Customer Loyalty and Growth
Despite significant premium increases, customer loyalty remained high, and there was an increase in new customers.
Sustainability Commitment
Gjensidige reaffirmed its AAA ESG rating from MSCI, maintaining its commitment to responsible business practices.
Negative Updates
Geopolitical and Inflationary Risks
There are ongoing concerns regarding geopolitical instability, rising defense and infrastructure spending, and potential trade barriers affecting future claims costs and inflation.
Volatility in Property Insurance Claims
While there was an improvement in underlying profitability, property insurance claims remain highly volatile, with potential impacts from weather events and fires.
Challenges in Danish Commercial Portfolio
Although there were improvements, retention in the Danish Commercial portfolio was somewhat down, with ongoing emphasis on pricing and cost efficiency initiatives.
Company Guidance
In the second quarter of 2025, Gjensidige reported a significant improvement in their financial results. The profit before tax reached NOK 2,955 billion, while the general insurance service result stood at NOK 2,200 million, marking a notable year-on-year increase. Insurance revenue rose by 11.7%, and the combined ratio improved by 79%, driven by enhancements in both the loss and cost ratios. The underlying profitability saw a 7.5 percentage point boost after adjustments for adverse claim developments and risk adjustments from the previous year. Investments yielded NOK 1,102 million, contributing to a robust return on equity of 31.3%. Additionally, the solvency ratio was stable at 182% by the end of the quarter. In terms of product lines, property insurance profitability increased, supported by strategic pricing measures and a lack of significant weather events. Motor insurance in Norway also showed improvements due to continued pricing adjustments and stabilized claims costs. The company adjusted their claims inflation forecast to a range of 3% to 5%, facilitating a moderation in price increases to just above 40% for property insurance and around 16% for motor insurance. Across all segments, strong growth continued, especially in Norway, driven by effective pricing strategies and high customer retention. The Danish operations saw improved performance, partly due to favorable weather, while Swedish operations sustained positive momentum. Gjensidige also reaffirmed their AAA ESG rating from MSCI, highlighting their commitment to sustainability.Gjensidige Forsikring Financial Statement Overview
Summary
Gjensidige Forsikring exhibits strong revenue growth and solid profitability, supported by a stable balance sheet despite rising liabilities. The company's cash flow generation is healthy, but recent negative operating cash flow is a concern. Overall, the financial position is sound, but there is room for improvement in cash management and liability oversight.Income Statement
Gjensidige Forsikring has shown strong revenue growth over the years, with a recent TTM (Trailing-Twelve-Months) increase in total revenue to 41.43 billion from 37.01 billion in the previous year, representing a notable growth. The company's gross profit margin remains robust, illustrating its ability to maintain profitability from its core operations. However, the fluctuating EBIT and EBITDA margins suggest some volatility in operating efficiency, particularly with a negative EBITDA in the most recent TTM data. Despite this, the net profit margin has improved, underlining strong bottom-line performance.75
Positive
Balance Sheet
Gjensidige Forsikring maintains a healthy balance sheet with a moderate debt-to-equity ratio and a consistent equity base. The company has a substantial stockholders' equity, providing a cushion against liabilities, as reflected in the equity ratio. Nevertheless, the increasing total liabilities over the years could pose a risk if not managed carefully. The return on equity demonstrates solid profitability relative to shareholder investments, although it has shown some variability.70
Positive
Cash Flow
The cash flow statement reveals mixed performance, with a commendable free cash flow generation over the years. However, the recent TTM data shows a negative operating cash flow, which is concerning. The free cash flow to net income ratio is strong, indicating effective conversion of profits into cash. The inconsistency in cash flow metrics, particularly the operating cash flow, requires attention to ensure sustainable liquidity.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 43.51B | 37.01B | 40.36B | 32.76B | 31.91B | 29.23B |
| Gross Profit | 43.51B | 37.01B | 39.79B | 32.76B | 31.91B | 29.23B |
| EBITDA | 8.49B | 6.82B | 585.00M | 0.00 | 8.67B | 6.34B |
| Net Income | 6.56B | 5.14B | 4.13B | 3.44B | 7.14B | 4.95B |
Balance Sheet | ||||||
| Total Assets | 183.32B | 171.49B | 148.28B | 135.15B | 129.82B | 118.31B |
| Cash, Cash Equivalents and Short-Term Investments | 4.10B | 3.69B | 2.99B | 3.20B | 2.35B | 2.86B |
| Total Debt | 5.35B | 5.41B | 4.36B | 3.78B | 3.67B | 2.52B |
| Total Liabilities | 158.59B | 145.47B | 124.05B | 109.28B | 104.62B | 93.03B |
| Stockholders Equity | 24.72B | 26.01B | 24.23B | 25.87B | 25.20B | 25.28B |
Cash Flow | ||||||
| Free Cash Flow | 6.36B | 3.79B | 4.09B | 4.15B | 6.49B | 6.82B |
| Operating Cash Flow | 6.69B | 4.21B | 4.89B | 4.71B | 7.03B | 7.33B |
| Investing Cash Flow | -774.60M | -447.60M | -1.04B | 2.75B | -1.40B | -513.20M |
| Financing Cash Flow | -5.00B | -3.00B | -4.09B | -4.18B | -6.11B | -6.44B |
Gjensidige Forsikring Technical Analysis
Positive
28.98
Price Trends
27.91
Positive
26.83
Positive
23.74
Positive
Market Momentum
0.32
Negative
57.82
Neutral
81.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GJNSY, the sentiment is Positive. The current price of 28.98 is above the 20-day moving average (MA) of 28.46, above the 50-day MA of 27.91, and above the 200-day MA of 23.74, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 57.82 is Neutral, neither overbought nor oversold. The STOCH value of 81.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GJNSY.
Gjensidige Forsikring Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $10.77B | 12.28 | 14.63% | 7.23% | 14.20% | 50.32% | |
74 Outperform | $14.48B | 23.61 | 29.06% | 3.09% | 6.41% | 57.63% | |
73 Outperform | $18.77B | 16.96 | 10.16% | 3.58% | -3.34% | -3.32% | |
70 Outperform | $44.89B | 15.02 | 7.61% | 2.10% | -33.87% | -5.72% | |
69 Neutral | $12.35B | 8.72 | 14.42% | 5.59% | -6.19% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
57 Neutral | $15.32B | 41.26 | 34.30% | 1.99% | 5.05% | -47.26% |
* Financial Sector Average
GJNSY
Gjensidige Forsikring
28.98
11.38
64.66%
AEG
Aegon
7.90
1.99
33.67%
AIG
American International Group
81.02
8.94
12.40%
ORI
Old Republic International
43.35
11.52
36.19%
PFG
Principal Financial
84.24
1.69
2.05%
EQH
Equitable Holdings
51.16
9.26
22.10%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.