Gjensidige Forsikring (GJNSY) AI Stock Analysis

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Gjensidige Forsikring

(OTC:GJNSY)

Rating:73Outperform

Price Target:―

Gjensidige Forsikring's strong revenue growth and profitability underpin a solid financial foundation, although rising liabilities and recent cash flow issues warrant attention. The stock's positive technical indicators suggest upward momentum, while the valuation appears reasonable given the dividend yield. Notably, the earnings call highlighted robust performance but also flagged potential risks in Denmark. These factors collectively result in a moderately positive stock assessment.

Gjensidige Forsikring (GJNSY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$12.92B

Dividend Yield2.5%

Average Volume (3M)19.00

Price to Earnings (P/E)24.8

Beta (1Y)0.35

Revenue Growth-0.78%

EPS Growth45.68%

CountryUS

Employees4,664

SectorFinancial

Sector Strength81

IndustryInsurance - Diversified

Share Statistics

EPS (TTM)0.24

Shares Outstanding500,000,000

10 Day Avg. Volume57

30 Day Avg. Volume19

Financial Highlights & Ratios

PEG Ratio2.44

Price to Book (P/B)5.87

Price to Sales (P/S)0.00

P/FCF Ratio18.39

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

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 earns revenue primarily through the underwriting of insurance policies, which involves collecting premiums from policyholders. The company generates income from various types of insurance, including motor insurance, property insurance, health insurance, and liability insurance. Investment income is another significant revenue stream, derived from the management of the premiums collected, which are invested in a diversified portfolio of financial assets. Additionally, Gjensidige benefits from economies of scale and advanced risk assessment capabilities, enabling efficient operations and competitive pricing. Strategic partnerships and collaborations with financial institutions and other entities further enhance its market reach and product offerings, contributing to its overall earnings.

Gjensidige Forsikring Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q1-2025)

% Change Since: 9.05%|

Next Earnings Date:Jul 11, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial performance with significant improvements in profit, revenue, and return on equity, driven by effective pricing strategies and high customer retention. However, challenges such as higher-than-expected large losses and performance issues in Denmark, along with potential regulatory scrutiny, present areas of concern.

Q1-2025 Updates

Positive Updates

Strong Profit Before Tax

Profit before tax was NOK1,719 million, with significant improvement in the general insurance service result to NOK1,314 million, driven by strong topline growth and lower loss ratio.

Insurance Revenue Growth

Insurance revenue increased by more than 10%, driven by price increases and high customer retention.

Improved Combined Ratio

The combined ratio declined to 86.9%, reflecting improvements in both the loss and cost ratios.

Strong Return on Equity

Investments generated returns of NOK503 million, contributing to a solid return on equity of 22.2%.

High Customer Retention

Strong customer retention in Norway with continued high levels despite significant price increases.

Negative Updates

Large Losses Impact

Large losses were somewhat higher than quarterly estimates, driven by one large fire loss in Norway.

Challenges in Denmark

Results in both Commercial and Private portfolios in Denmark declined, with Property Insurance driving the decline in the Commercial portfolio.

Regulatory Investigation in Denmark

Potential investigation by Danish authorities into pricing practices for existing and new customers, which could impact future operations.

Company Guidance

During the first quarter of 2025, Gjensidige reported a profit before tax of NOK1,719 million, with their general insurance service result reaching NOK1,314 million, marking a significant year-on-year increase. Insurance revenue rose by more than 10%, and the combined ratio improved to 86.9%, indicating enhancements in both the loss and cost ratios. The company's investment returns amounted to NOK503 million, contributing to a strong return on equity of 22.2%. Average premiums for Property Insurance increased by almost 13% over the past year, with the current rate of increase around 70%, while Motor Insurance saw average premiums rise by more than 17% during the past 12 months. Claims inflation is expected to rise between 4% and 6% over the next 12 to 18 months. The solvency ratio stood at 188%, reflecting a stable capital requirement despite market volatility, and the company remains committed to prudent financial risk-taking amidst ongoing geopolitical and economic challenges.

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

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
41.43B	37.01B	40.36B	32.76B	31.91B	29.23B
	Gross Profit
41.34B	37.01B	39.79B	32.76B	31.91B	29.23B
	EBIT
5.29B	5.50B	1.14B	5.82B	8.56B	6.16B
	EBITDA
-106.90M	0.00	585.00M	0.00	8.67B	6.34B
	Net Income Common Stockholders
5.66B	5.14B	4.13B	3.44B	7.14B	4.95B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.47B	3.69B	2.99B	3.20B	2.35B	2.86B
	Total Assets
160.73B	171.49B	148.28B	135.15B	129.82B	118.31B
	Total Debt
6.91B	5.41B	4.36B	3.78B	3.67B	2.52B
	Net Debt
-1.56B	1.73B	1.37B	588.80M	1.32B	-345.90M
	Total Liabilities
140.97B	145.47B	124.05B	109.28B	104.62B	93.03B
	Stockholders Equity
19.75B	26.01B	24.23B	25.87B	25.20B	25.28B
Cash Flow		Free Cash Flow
6.88B	3.79B	4.09B	4.15B	6.49B	6.82B
	Operating Cash Flow
-1.53B	4.21B	4.89B	4.71B	7.03B	7.33B
	Investing Cash Flow
-576.10M	-447.60M	-1.04B	2.75B	-1.40B	-513.20M
	Financing Cash Flow
-9.18B	-2.98B	-4.09B	-4.18B	-6.11B	-6.44B

Gjensidige Forsikring Technical Analysis

Technical Analysis Sentiment

Positive

Last Price25.79

Price Trends

50DMA

23.32

Positive

100DMA

21.35

Positive

200DMA

19.36

Positive

Market Momentum

MACD

0.72

Negative

RSI

67.62

Neutral

STOCH

92.89

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 25.79 is above the 20-day moving average (MA) of 24.44, above the 50-day MA of 23.32, and above the 200-day MA of 19.36, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 67.62 is Neutral, neither overbought nor oversold. The STOCH value of 92.89 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

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HIG	83 Outperform	$36.63B	12.85	18.49%	1.53%	7.55%	14.16%
ORI	75 Outperform	$9.25B	12.23	12.68%	2.90%	10.83%	20.74%
GJNSY	73 Outperform	$12.92B	24.79	28.02%	2.50%	-0.78%	45.68%
PFG	73 Outperform	$17.26B	16.51	9.70%	3.78%	5.84%	-10.64%
EQH	71 Outperform	$15.74B	14.08	56.67%	1.85%	12.41%	14.76%
AEG	70 Neutral	$10.85B	15.31	9.36%	4.27%	-5.03%	―
Sector *	64 Neutral	$12.67B	9.74	7.58%	17015.08%	12.21%	-6.96%

* Financial Sector Average

Performance Comparison

GJNSY

Gjensidige Forsikring

25.82

8.80

51.70%

AEG

Aegon

7.07

0.92

14.96%

HIG

Hartford Financial

130.98

32.37

32.83%

ORI

Old Republic International

37.81

9.23

32.30%

PFG

Principal Financial

78.89

0.57

0.73%

EQH

Equitable Holdings

53.97

14.43

36.49%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.