May For the first time since it started up in 2007, Gjensidige Bank reported a profit before tax in the first quarter of 2010.
gjensidige annual report 2010 3 perspective th is is gjen sidige gjensidige has met new needs and requirements from the society and customers with pro-active measures. through focused customer orientation, the group has adapted the distribution to altered customer behaviour. the group currently has a unique strength in norway.
the group’s new status as a listed company does not signify any change in the long-term goals of being a profitable, leading, customer-oriented general insurance company in the nordic market.
the gjensidige experience shall characterise our encounter with the customer. it shall distinguish us from our competitors and ensure that gjensidige will be one of the most customer-oriented companies in the market in any business sector.
in the Baltics, the biggest players are foreign financial groups. only one of the five biggest companies is locally owned. the distribution model deviates somewhat from the scandinavian one, through more extensive use of agents, and this is illustrated by the substantially higher cost ratio with which the Baltic players operate.
the scandinavian general insurance markets are consolidated markets. this is particularly true for norway and sweden, where the three largest players account for 70.7 and 63.7 per cent of the market respectively, but also for denmark, where the three largest players account for 53.3 per cent of the market.
gjensidige is currently a full-fledged provider of products in general insurance and insurances of the person to norwegian private and com mercial customers. other target areas – a broad range of products in norway and general insurance in the nordic countries and the Baltics – should primarily support the core business operations by offering relation-building products and services and economies of scale, respectively.
gjensidige’s sound brand forms a good basis for the sale of new products and services to the group’s roughly one million customers in norway. Combined with a further development and expansion of the loyalty programmes in the general market and aimed at the organisation market, this will contribute to more satisfied customers and reduced customer churn. the group’s own data shows that customers who enter into a customer programme in the private and agricultural market have an average customer relationship with gjensidige that lasts a little over 12 years, whereas the other customers last a little over 5 years on the average.
Best when it counts during 2010, the business area private norway handled nearly 322,000 claims settlements. our goal is to be the company that takes best care of its customers, and this includes after a loss has occurred.
Gross premiums written 8,618.9 8,035.3 8,010.6 7,910.6 earned premiums, net of reinsurance 8,279.4 7,856.2 7,911.4 7,729.8 Claims incurred, etc. (6,296.7) (6,007.4) (5,795.6) (5,757.2)
definitions: 1. underwriting result = earned premiums, net of reinsurance - claims incurred, etc. - operating expenses 2. loss ratio, net of reinsurance = claims incurred etc./earned premiums, net of reinsurance 3. Cost ratio, net of reinsurance = operating expenses/earned premiums, net of reinsurance 4. Combined ratio, net of reinsurance = loss ratio, net of reinsurance + cost ratio, net of reinsurance a solid brand and high customer satisfaction are the key to gjensidige’s leading position in private insurance in norway. Continuous improvement and measures to increase the customer value ensure a strong customer orientation in all points of contact with the customers, resulting in increased customer satisfaction.
the new home insurance rate that was introduced in 2010 ensures an even more correct pricing of the risk associated with the customer’s home the processes for claims handling are continiously improved in order to give the customers both rapid and more correct claims settlements.
large losses* came to noK 107.5 million in 2010, compared with noK 42.7 million in the previous year. Claims incurred for 2010 were positively affected by run-off gains**, as opposed to a run-off loss in the previous year, primarily as a result of the effect of strengthening the actuarial reserves for the child insurance product in 2009.
internet gjensidige offers sector-adapted advice and sales of bundled products on open websites. in addition, the næringsnett and pensjonsnett websites give the customer access to updated information about his/her customer relationship and the possibility of reporting changes or preferences for offers on new products.
Based on gross premiums written 2010 total non-marine insurance, excluding insurances of the person
source: Customer satisfaction survey, self-initiated custumer analysis, conducted by norsk Kundebarometer/Bi.
* losses exceeding noK ten million ** run-off gain/loss = actuarial gains and losses from earlier periods
• Vekter Fund trygg, Vekter Fund Balansert and Vekter Fund offensiv
ouTlooK it is expected that the market for defined-contribution pensions will increase further after the pension reform is implemented effective 1 january 2011. gjensidige is well-positioned to take part in the expected growth.
By combining internet banking with a local presence, the bank has achieved a unique position compared with other internet-based banks.
neT incoMe froM invesTMenTs the financial results for the investment portfolio came to noK 2,704.6 million in 2010, compared with noK 2,723.2 million in 2009. the financial return was 5.2 per cent, compared with 5.5 per cent in 2009.
Customers with insurance agreement at the end of the period number 43,764 36,000 23,438 11,516 heAlth cAre services eBita-margin in per cent 17 % 5.0 6.4 8.1 7.9 1 return on finanical assets = net financial income in per cent of average financial assets including property, excluding gjensidige Bank and gjensidige pensjon og sparing. 2 return on equity = profit before tax for the period / average adjusted equity for the period. 3 the equity certificates’ share of the profit or loss for the period / average number of outstanding equity certificates in the period 4 the solvency margin is calculated at the company level and in accordance with the rules of the Financial supervisory authority of norway. 5 premiums, net of reinsurance = earned premiums, net of reinsurance / gross premiums written (total general insurance operations) 6 loss ratio, net of reinsurance = claims incurred, net of reinsurance / earned premiums, net of reinsurance 7 Cost ratio, net of reinsurance = insurance-related operating expenses / earned premiums, net of reinsurance 8 Combined ratio = loss ratio, net of reinsurance + cost ratio, net of reinsurance 9 profit margin savings, in per cent = management income for the period / average assets under management for the period 10 recognised return on paid-up policies portfolio = realised return on the portfolio 11 Value adjusted return on paid-up policies portfolio = total return on the portfolio 12 deposit-to-loan ratio = deposits as a percentage of gross lending.
this method entails that gjensidige can use more resources on all steps in the process, from advertising the positions to testing the applicants and training new employees, than was the case with traditional recruitment methods.
the Customer and Brand school is part of the academy together with management training, gjensidige’s e-learning programme and other competence-building measures.
• develop correct conduct and attitudes in keeping with the group’s values.
trAFFic Accidents took 210 lives in 2010, and 673 people were seriously injured. Fortunately, the number of mortalities and injuries is declining, but far too many lives are still being destroyed on norwegian highways.
since 2007, we have supported “jentenes trafikkaksjon” (the girls’ safe driving initiative), which is a project under the direction of the norwegian Council for road safety. girls are consistently safer drivers than boys. the purpose of the initiative is to motivate girls to demand safer driving when they get in a car with a male driver. 9,000 girls are now members of jentenes trafikkaksjon.
the elderly are especially vulnerable in traffic. gjensidige is supporting a pilot project in which selected persons are urged to participate in the refresher course 65+ for elderly drivers, which is held by the norwegian public roads administration in cooperation with the adult education association and other educational institutions.
external reports are prepared quarterly in accordance with iFrs and regulations issued by Finanstilsynet (the Financial supervisory authority of norway). these reports are approved by the Board of directors.
eQual TreaTMenT the Company only has one class of shares, and all of the shares have the same rights in the Company. at the general meeting, each share carries one vote, unless otherwise specified by law or a government decision.
When issuing new shares, the existing shareholders have pre-emptive rights. With the approval of at least 2/3 of the total number of votes represented at the general meeting, the general meeting may decide to set aside the preemptive rights. any proposal concerning setting aside the pre-emptive rights must be explained.
the general meeting is arranged in keeping with the Code of practice: - it is stipulated in the articles of association that at least three weeks’ notice shall be given for the meetings. notice of meetings and agenda papers will be made available on the group’s website www.gjensidige.com. shareholders may nevertheless be sent case documents free of charge on request. the minutes will be publicised at www.gjensidige.com as soon as they are available.
risK ManaGeMenT anD inTernal conTrol the Board of directors focuses on risk management and internal control, and this is an integral part of the Board of directors’ planned work. the Board of directors has approved “Corporate policy for risk management and internal control”. among other things, this document describes main principles for risk management and internal control, and it includes a clear description of the division of responsibility. the document is available at www.gjensidige.com.
the internal control and the systems also encompass the Company’s core values and guidelines for ethics and social responsibility.
Bjørn iversen, Chairman Kirsten ingjerd Værdal, deputy chairman Marthe sondov Margrethe ruud skjeseth lilly t. stakkeland inger tone Ødegård Mette rostad arne g. Krog john ove ottestad Benedikte Bettina Bjørn torstein indrebø even søfteland trond Bakke jens eghøj nielsen deputy members 1. ivar Kvinlaug 2. randi dille 3. Haldor lillebø 4. Kari stavne reitan eMployee represenTaTives jon aniksdal elisabeth Katai Knudsen lars Foyn Åsa Holmberg Vibeke thomassen roger Warud petter aasen deputy members 1. ellen Kristine enger 2. Harry Helmersen 3. Hanne rennemo gitte tryk (nordic)
the danish private market is mainly served by phone from a customer centre in Copenhagen and over the internet. in addition, private products are sold through partners, including Kia Motor, the danish Consumers Co-operative society (FdB), the danish association of Managers and executives and edC, denmark’s largest estate agency chain. in the danish commercial market, the distribution is mainly conducted in cooperation with brokers.
the conversion was effected by transferring the entire business to a newly founded asa with full continuity of accounting values, financial history and classification of equity.
profit/(loss) the gjensidige Forsikring group had an underwriting profit for general insurance operations of noK 796.3 million in 2010, compared with noK 817.9 million in 2009. the profit after tax for the group came to noK 2,950.4 million compared with noK 2,304.8 million in 2009. the profit for the year is equivalent to a return on equity before tax of 14.4 per cent, compared with 15.2 per cent in 2009. the profit per share (basic and diluted) came to noK 5.90, compared with noK 4.61 in 2009.
haNs-erik aNderssoN Board member andersson was elected member of gjensidige’s Board of directors in 2008. Mr. andersson acts as an adviser and has previously held the position of Ceo of skandia as well as nordic chairman for Marsh & Mclennan and executive director of Mercantile & general re. He is also chairman of the Board of directors of semcon aB, erik penser aBand Canvisa aB and a board member of Cision aB. Mr. andersson has studied statistics, economics, business law and administration at the stockholm university. andersson has been present at 18 board meetings.
online retail banking gjensidige Bank is a bank aimed at customers in the private and agricultural markets in norway. the bank offers day-to-day banking services, secured loans and consumer finance.
at year-end 2010, the average absence with doctor’s certificate due to illness in the norwegian operations was 5.2 per cent, compared with 5.0 per cent in 2009. the absence with doctor’s certificate due to illness for the group in 2010 was 4.4 per cent. the Company stands by its objective of an absence due to illness of 4 per cent.
Kjetil Kristensen gisele Marchand gunnar Mjåtvedt Mari t. skjærstad tor Øwre
Nok million Notes 1.1.-31.12.2010 1.1.-31.12.2009 operating income earned premiums from general insurance 17,063.3 15,660.4 earned premiums from pension 335.8 116.3 interest and credit commission income from banking operations 782.6 323.3 operating income from health care services 544.7 509.1 other income 64.4 61.5 total operating income 4 18,790.8 16,670.7
Nok million capital shares reserve capital ences pension equity equity conversion from Ba to asa reclassification from equity certificate capital to share capital, premium reserve and other earned equity 1 1 as at 30 september 2009 the equity certificate capital was reduced to noK 1,000.0 million and equally transferred to premium reserve and equalisation fund. in connection with conversion from limited liability mutual company (Ba) to public limited liability company (asa) the equity certificate capital is converted to share capital.
Business combinations Business combinations are accounted for by applying the purchase method. the cost of the business combination is the fair value at the date of exchange of assets acquired, liabilities incurred and equity instruments issued by the group, in exchange for control of the acquired company, and any expenses directly attributable to the business combination.
Ceded reinsurance premiums reduce gross premiums written, and are adjusted for according to the insurance period. premiums for inward reinsurance are classified as gross premiums written, and are earned according to the insurance period.
Fair value is based on market prices, after consideration of any differences in type, location or condition of the individual property. Where market prices are not available, the properties are individually assessed by discounting the expected future net cash flow by the required rate of return for each investment. the net cash flow takes into account existing rental contracts and expectations of future rental income based on the current market situation. the required rate of return is determined based on the expected future risk-free interest rate and an individually assessed risk premium, dependent on the rental situation and the location and standard of the building. an observation of yields reported from market transactions is also performed. the valuation is carried out both by external and internal expertise having substantial experience in valuing similar types of properties in geographical areas where the group’s investment properties are located.
provisions for life insurance technical provisions regarding life insurance in gjensidige pensjonsforsikring are premium reserve, claims provision and additional provision.
perspektiv 89gjensidige annual report 2010 resu lts information about contingent assets are disclosed where an inflow of economic benefits is probable. information about a contingent liability is disclosed unless the possibility of an outflow of resources is remote.
insurance products are divided in general into two main categories; lines with short or long settlement periods. the settlement period is defined as the length of time that passes after a loss or injury occurs (date of loss) until the claim is reported and then paid and settled. short-tail lines are e.g. property insurance, while long-tail lines primarily involve accident and health insurances. the uncertainty in short-tail lines of business is linked primarily to the size of the loss.
gjensidige Forsikring is adapting to the upcoming solvency ii rules, which will both replace the current capital rules and specify requirements for good risk management and reporting. one of the elements in the new rules is that it allows for the utilization of the group’s own model for setting the statutory capital requirements according to clearly defined criteria. gjensidige’s model is deemed to be a good point of departure and is further developed for this purpose.
For a portfolio of insurance contracts where the theory of probability is applied to pricing and provisioning, the principal risk that the group faces under its insurance contracts is that the actual claims and benefit payments exceed the carrying amount of the insurance liabilities. this could occur because the frequency and/or severity of claims and benefits are greater than estimated. insurance events are random, and the actual number and amount of claims and benefits will vary from year to year from the level calculated using statistical techniques.
there are several variables that affect the amount and timing of cash flows from the insurance contracts. these variables mainly relate to the characteristics of the different types of risks covered and the applied risk management procedures. the compensation paid is according to the terms specified in the insurance contract. Compensation for claims with respect of bodily injuries are calculated as the present value of lost earnings, rehabilitation expenses and other expenses that the injured party will incur as a result of the accident or disease. in most cases in norway, and also in other countries where gjensidige operates, personal injury claims are paid as a lump-sum. an exception from this is Workers’ Compensation claims in denmark, where claims may be paid as annuity payments. the calculations for those claims will include information about the severity of the loss, mortality rates, the number of years until retirement age and assumptions about future social welfare
the risk for each individual contract is therefore the probability that the unforeseen event shall occur and the uncertainty of which insurance amount this particular person was covered for. in some contracts it says the insured party has the freedom to choose the sum insured and with that this creates a variation in the portfolio’s risk. in other contracts the sum insured is predetermined, but this could either be a fixed sum or be a factor in relation to another variable quantity. this variable quantity in occupational pension contracts would typically be salary and the remaining time in service and that again creates a random variation in the portfolio’s risk.
since most contracts are based on the regulations for defined contribution schemes with account payments over a ten year period after pensionable age is reached, the Company has a very small exposure in longevity risk under ordinary occupational pension schemes. Most paid-up pensions that are transferred to the Company pay a retirement pension for life and thus have a longevity risk. the risk tariff for this cover is also calculated on the K2005 basis and includes safety margins in accordance with orders from the Financial supervisory authority of norway (Finanstilsynet).
pension insurance sensitivity analysis gjensidige pensjonsforsikring has been running their business for five years, which is a very short period compared to other participants within pension insurance. although the portfolio is clearly growing, the number of insurance cases is still very low. the number of reported disability cases has increased throughout 2010, which is expected since the pension scheme population has grown and the number of risk years has increased from four to five. But it is still too early to be able to do an extensive analysis to see whether the calculated premiums and claim occurrences are sufficient to cover the future liabilities.
the sensitivity for this part of the insurance portfolio will therefore be proportional to the factor one chooses to use as claim provision compared to the year’s risk premium.
figure 6 – cash flow paid-up policies the disability risk applies to the disability pension and/or the exemption from paying the agreed annual contributions in accordance with the pension agreement. the payments will end no later than the date normal retirement age is reached, which is usually 67 years. any claims will come after a 12 month continuous period of sick leave. the risk amount is then dependent on the agreed pension payments and the total payment period up to retirement age. Here gjensidige pensjonsforsikring as use assumptions from the same calculation basis K2005 as well as their own developed disability tables based on the recently updated norwegian disability statistics. the tables are developed in close co-operation with gjensidige Forsikring asa who has a considerable insurance portfolio with disability risk, and further takes into consideration the difference between the disability in the population compared to the disability in the portfolio. the insurance portfolio is usually subject to one or another form of risk evaluation when taking over a disability risk. For occupational pension schemes a separating of the employers into different risk groups by business type is also used. those customers who take out individual disability pensions are subject to ordinary rules concerning individual risk evaluation based on the insured party’s personal statement of health.
table 22 – reinsurance receivables and reinsurers’ share of claims provisions rating Nok million per cent Nok million per cent liQuiditY risk For most general insurers, the liquidity risk is quite limited. premium income is paid up front, and claims are paid out at a later stage. Future payments are not based on contractual payment dates, but rather when claims occur and how long the claims handling lasts. see the expected payout pattern presented in previous figure. liquidity risk in gjensidige Bank is described separately.
a large part of the fixed-income portfolio in gpF does not have an official rating. these fixed-income securities are mainly invested in norwegian banks and financial institutions.
liquidity risk stemming from failed access to liquidity is met with a liquidity buffer held to cover liabilities as they fall due.
as at 31 december 2010 the portfolio is well diversified geographically, with the largest exposure in areas of norway with the highest population density. the largest single exposure is approximately noK 9.6 million. the sum of the ten largest exposures is noK 80.9 million.
segment assets 2,052.3 1,310.6 15,762.1 739.7 7,257.2 15,763.7 338.8 (368.3) 42,856.1 other assets 3 41,250.8 total assets 84,106.8 segment liabilities 13,598.7 14,303.5 8,242.6 405.1 6,794.6 14,473.7 207.9 (346.2) 57,680.0 other liabilities 3 3,289.1 total liabilities 60,969.1 geNeral iNsuraNce
carrying amount as at 1 january 2009 1,763.4 424.8 97.3 449.8 55.7 2,790.9 as at 31 december 2009 1,507.5 338.1 85.5 416.0 7.5 2,354.6 cost as at 1 january 2010 1,662.2 495.0 155.8 648.7 907.0 3,868.7 additions 2.6 105.8 8.5 116.9 additions through business combinations 1,261.0 380.6 2.0 254.1 1,897.8 additions from internal development 39.6 39.6 disposals (11.8) 0.3 (901.8) (913.4)
carrying amount as at 1 january 2010 282.2 316.1 598.4 as at 31 december 2010 318.5 345.1 663.6 depreciation method straight-line straight-line useful life (years) 10-50 3-5 1 plant and equipment consist mainly of machinery, vehicles, fixtures and furniture. 2 at the end of the first quarter an impairment loss of noK 2.2 million on an owner-occupied property was recognised. the new value of the property was determined by using the group’s internal valuation model, cf. note 8 investment properties. the valuation was not based on observeable market prices or recent transactions. the carrying amount of the property before the impairment was noK 16.8 million.
Financial liabilities at fair value through profit or loss, initial recognition interest-bearing liabilities at fair value through profit or loss 16 303.8 303.8 1,348.9 1,348.9
17 – taX Nok million 2010 2009 spcification of tax expense tax payable (619.2) (796.6) Wealth taxes (36.0) Correction previous years 73.1 0.1 Change in deferred tax 242.5 (29.3) total tax expense (303.6) (861.8)
perspektiv 135gjensidige annual report 2010 resu lts taX eXpeNse in connection with the conversion of gjensidige Forsikring Ba to a public limited company the Ministry of Finance has consented to an exemption from capital gains taxation on the transfer of business to the newly formed public limited company under certain conditions. the consequences of the tax relief decision have been incorporated into the tax expense and tax liabilities from the current quarter. the tax relief decision involves greater complexity and discretionary assessments, which entails a greater degree of uncertainty with respect to the tax expense and tax liabilities until all the effects have ultimately been evaluated by the tax authorities.
the group Ceo has no severance pay agreement if he resigns before reaching retirement age.
Kim rud-petersen (15.3-31.12.10) 1, executive Vice president 2,115.3 223.1 136.5 2,244 lise Westly (1.3-31.12.10) 1, executive Vice president 1,325.8 164.5 309.7 1,502 the Board of directors 6 inge K. Hansen, Chairman 439.0 1.5 5,711 randi B. sætershagen, deputy Chairman 375.0 3.6 2,711
gunnhild H. andersen, employee 235.0 605 Kjetil Kristensen, employee 235.0 406 gunnar Mjåtvedt, employee 280.0 799 the Board of directors, deputies 6 sissel johanne Monsvold 27.8 john ove ottestad (1.1.10-28.6.10) 1 13.0 per gunnar skorge (24.3.10-31.12.10) 1 3.0 Marianne Bø engebretsen (28.6.10-31.12.10) 1, 11, employee
purchase aNd sale of assets as per 1 january 2010, gjensidige Forsikring asa has acquired all of the assets and liabilities of Fair Forsikring a/s, excluding shares in the subsidiaries Fair invest a/s and KommuneForsikring a/s, and all of the assets and liabilities from KommuneForsikring a/s. the insurance business in Fair Forsikring a/s and KommuneForsikring a/s is liquidated, and as a result of the transaction
Nok million Note 2010 stock purchase offering for employees allocated in 2010 18 7.5 29 – earNiNgs per share restated profit / (loss) for the year (noK million) 2,950.4 2,304.8 Weighted average number of shares 1 499,996,261 500,000,000 earnings per share (noK) 5.90 4.61 1 Holdings of own shares are not included in calculations of the number of shares.
due to adaption to the group’s accounting policies related to claims provisions gjensidige has adjusted the temporary figures at the acquisition date as presented in note 11 in the interim report for the second quarter with retrospective effect. the consequense of the adjustment is that the claims provision has been increased by dKK 35 million, deferred tax liabilities have been reduced by dKK 8.8 million and goodwill has been increased by dKK 26.2 million.
Fund for unrealised gains 150.7 200.3 Administration provision 1,114.1 1,054.1 natural perils fund provision 2,615.7 2,418.2 guarantee scheme provision 535.6 494.3 Other retained earnings 13,295.8 13,362.5 total retained equity 17,712.0 17,529.3 insurance-related liabilities in general insurance, gross Provision for unearned premiums, gross 4, 14 6,406.7 5,620.2 Claims provision, gross 4, 14 22,971.8 19,161.2 Provision for premium discounts and other profit agreements 14 82.0 41.6 security provision 4, 14 2,398.4 2,467.7 total insurance-related liabilities in general insurance, gross 31,858.9 27,290.8 provision for liabilities Pension liabilities 15 662.3 656.3 Current tax 17 380.0 881.5 deferred tax liabilites 16 62.3 69.1 Other provisions for liabilities 1,104.6 1,606.8 liabilities Liabilities related to direct insurance 9 212.0 249.0 Liabilities related to reinsurance 9 98.1 51.9 Financial derivatives 9, 10 105.0 17.7 Accrued dividend 2,350.0 1,724.8 Other liabilities 9, 16 907.4 892.5 Liabilities to subsidiaries and associates 9, 22 57.0 213.7 total liabilities 3,729.6 3,149.6 accrued expenses and deferred income Other accrued expenses and deferred income 9, 16 130.6 128.6 total accrued expenses and deferred income 130.6 128.6 tOtal eQuity anD liabilities 56,972.4 52,135.1 1 The company is converted from limited liability mutual company (BA) to public limited company (AsA). in that connection the comparable figures under equity are changed. There is no change in total equity. Restatement of the comparable figures are presented in consolidated statement of changes in equity.
Components of other comprehensive income exchange differences 4.5 4.5 Actuarial gains and losses on pension (122.9) (122.9) Tax on other comprehensive income 34.6 34.6 total components of other comprehensive income 4.5 (122.9) 34.6 (83.8)
Cash flow from operating activities Premiums paid, net of reinsurance 15,825.4 12,539.0 Claims paid, net of reinsurance (11,333.7) (8,986.2) Operating expenses paid, including commissions (2,655.4) (1,907.2) net receipts/payments on lending and borrowing (2,281.7) 56.9
subsequent to initial recognition investment properties are measured at fair value, and any changes in fair value are recognised in profit or loss.
experience in valuing similar types of properties in geographical areas where the group’s investment properties are located.
development expenditures (both internally and externally generated) is capitalized only if the development expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the group intends to and has sufficient resources to complete the development and to use or sell the asset.
nOtes share Capital At the end of the year the share capital consisted of 500 million ordinary shares with a nominal value of nOK 2, according to the statutes. All issued shares are fully paid in.
OWn shares At the end of the year the number of own shares was 26,983 (0).
insuranCe-relateD liabilities Use of estimates in calculation of insurance-related liabilities is primary applicable for claims provisions.
Discount rate The discount rate is before tax, and is composed of a risk-free interest rate, a risk premium and a market beta. The risk-free rate is equivalent to an average of five and ten year interest rate on government bonds in the respective countries the branches operate in. in addition a risk premium of 5.5 percentage points has been added.
At 31 december 2010 there are contractual obligations to tenants for renovation of nOK 2.0 million.
perspeCtive 171gjensidige AnnUAL RePORT 2010 resu lts 9 – FinanCial assets anD liabilities (COnt.)
Commodity-related contracts consist mainly of - Commodity options, which are agreements giving the right/obligation to buy or sell commodity futures at a certain price at or before a future date.
tax on items recognised directly in equity Tax payable on dividend costs 13.2 total tax on items recognised directly in equity 13.2 1 in accordance to changed regulations on annual reporting for insurance companies of 18 december 2009, deferred tax assets should not be recognised on insurance-related provisions classified as share capital, or on reinsurance-provisions.
Trond delbekk, executive Vice President 2,390.9 381.7 233.6 658.0 2,319 3 Bjørn Walle (1.1.10-31.8.10) 1, executive Vice President 1,321.9 269.4 163.8 206.0 4
1 The stated remuneration applies to the period the individual in question has held the position/office. 2 Age 62, 100 per cent salary reducing gradually to 70 percent at age 67 according to time of earning. 3 Age 62, 70 per cent salary until age 67 according to time of earning, then gjensidige Forsikring’s ordinary pension terms will take effect. 4 Age 60, 70 per cent salary until age 67 according to time of earning, then gjensidige Forsikring’s ordinary pension terms will take effect. 5 Annual fee of nOK three thousand five hundred, in addition to a per meeting fee of nOK three thousand five hundred. There have been three ordinary meetings during 2010. 6 The fee includes a fee for subsidiaries.
registered office interest held ultimate parent company gjensigestiftelsen holds 61,74 per cent of the shares in gjensidige Forsikring AsA Oslo, norway subsidiaries Fair Forsikring A/s Copenhagen, denmark 100.0 % gjensidiges Arbejdsskadeforsikring A/s Copenhagen, denmark 100.0 % gjensidige Baltic Riga, Latvia 100.0 % gjensidige Bank Holding As Førde, norway 100.0 % gjensidige norge As Oslo, norway 100.0 % gjensidige Pensjon og sparing Holding As Oslo, norway 100.0 % glitne invest As Oslo, norway 100.0 % Lokal Forsikring As Oslo, norway 100.0 % nykredit Forsikring A/s Copenhagen, denmark 100.0 % Oslo Areal As Oslo, norway 100.0 % samtrygd eigedom As Førde, norway 100.0 % strandtorget drift As Oslo, norway 100.0 % strandtorget eiendom As Oslo, norway 100.0 % Tennant Holding AB stockholm, sweden 100.0 %
associates Bilskadeinstituttet As Oslo, norway 29.5 % spareBank1 sR-Bank 1 stavanger, norway 10.8 % storebrand AsA Oslo, norway 24.3 % Vervet As Tromsø, norway 25.0 %
transaCtiOns With relateD parties inCOMe stateMent The table below shows transactions with related parties recognised in the income statement.
The shareholder list is based on the VPs shareholder registry as at 31 december 2010. A shareholder list showing the owners behind nominee accounts can be found on page 46.
As at 31 december 2010 the participants have invested 44.8 million in the stock purchase offering.
Inge K. Hansen Randi B. Sætershagen Gunnhild H. Andersen Chair Deputy Chair