July 14, 2015 / 5:23 AM / 2 years ago

Gjensidige Q2 pretax profit beats expectations

OSLO, July 14 (Reuters) - Norwegian non-life insurer Gjensidige posted second-quarter pretax earnings above expectations on Tuesday due to few large claims in the period and premium growth.

Gjensidige said its pretax profit fell to 1.64 billion Norwegian crowns ($202.63 million) from 1.75 billion a year earlier, beating expectations for 1.32 billion in a Reuters poll of analysts..

The firm’s combined ratio dropped to 79.4 percent from 81.2 a year earlier, against expectations for 84.2 percent.

A combined cost ratio below 100 indicates an underwriting profit, meaning an insurer is receiving more in premiums than it is spending on its operations and paying out in claims.

Gjensidige said it still aimed to keep its return on equity above 15 percent and an annual combined ratio of 90 to 93 percent. It repeated the ratio was expected to be in the lower half of the target range in the short and medium term. ($1 = 8.0937 Norwegian crowns) (Reporting by Stine Jacobsen)

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