annual report 2009 gjensidige.com annual report GJ e n SIDIG e 2 0 0 9 eVENTS 2009 operation :: Talks between Storebrand and Gjensidige of a possible merger terminated in March. :: In May, Gjensidige Pension and Savings was a top scorer in the Norwegian Customer Barometer survey. :: Länsförsäkringar’s insurance portfolio in the Baltics was acquired in November. :: In November Gjensidige purchased equity certificates in Sparebank1 SR-Bank totalling NOK 866 million, becoming the largest single owner of the bank. :: An agreement to acquire Handelsbanken’s portfolio of defined-contribution pensions was signed in Oc- S tober. The portfolio was taken over in January 2010. :: Operations in Sweden were converted to a branch from 1 October 2009. :: Citibank’s consumer financing business was acquired by Gjensidige Bank in December. :: FInanCIAL CalendAR 2010 Date event 23rd april General Meeting 12th mai Publication of results of first quarter 5th august Publication of results of second quarter 4th november Publication of results of third quarter 24th november Supervisory Board Meeting t 2 this is gjensidige hisis 2 Confident and satisfied customers 4 Values and vision g 5 Company history jensidige 6 The markets 8 Financial key figures 9 Non-financial key figures 10 Strategy and goals operat 18 operations i 20 General insurance Private ons 24 General insurance Commercial 28 General insurance Nordic 31 General insurance Baltic 34 Pension and savings 38 Online retail banking 42 Health care services 44 Asset management 48 Additional information perspect 50 perspective i 51 The people behind the figures ve 54 Gjensidige and the society governance 58 governance 59 Management and control 66 Equity certificate 68 Corporate governance 76 The Board of Directors 78 Group Management 80 Supervisory board, Control committee and Nomination committee res 82 results ul ts 83 Report of the Board of Directors 100 Consolidated accounts 166 Parent company accounts 211 Declaration of the Board and CEO 212 Auditor’s report 213 Statement by the Control committee 214 Statement by the Supervisory board 215 Glossary GjensiDige annuAl report 2009 1 Confident and satisfied Customers Simpler, faster and better is the guiding idea behind all of the simplification measures that were implemented in Gjensidige in 2009 and in previous years. The objective is confident and satisfied customers who want to renew their contracts with us again and again. 2009 was still affected by the turbulence in the market share at the start of 2010 relative to the We have sold security since the 1820s. Gjensi- financial sector.i t was a demanding year for a previous year. dige’s Watchman logo as we know it, a guardian number of players in Norwegian business and of lives and assets, has been our symbol since commerce and likewise for Gjensidige. We par- The efforts to simplify routines and processes 1932. All in all, this represents the values and ticularly noticed this in our income. With sound are and have been given high priority. in 2009, attitudes that have traditionally distinguished financial muscles, however, we were able to we worked on adapting our settlement organi- us internally and in our contact with the world operate relatively undisturbed by the turbulence sation to new efficiency requirements. The key at large. in 2010, Gjensidige has emerged as a around us. internally, we had time and a calm components of our staff were reviewed with a more modern, efficient company than it was enough situation to determine our own agenda, view to rationalisation. Many of the measures only a few years ago. it is even more important and we continued with the work we commenced and organisational changes that were initiated for us to manage to further develop the cultural in 2008 with further specialisation and improve- in 2008 first began to have full effect on our factors that have contributed to the customers’ ment of our customer services. resource consumption and costs last year. good impressions of our services. Sound, profes- sional and secure are values that do not become Externally, the financial crisis gave us oppor- in the second half, the operations in Sweden outdated, and it is upon these basic values that tunities, which we actively took advantage were converted to a branch, whereas the we will continue to build our operations. of, whereas other players without equivalent operations in Denmark became a branch ef- financial strength had to wait. Our banking fective 1 january 2010. During the conversion EMPLoYEE AND operations were greatly strengthened by the to branches, the trademark was changed to MANAGEMENT DEVeLoPMENT acquisition of CitiBank’s consumer loan portfolio. Gjensidige in Denmark as well. Thus, we are con- Through their efforts and responsibility, every Pensions and savings entered into an agreement ducting almost all of our insurance operations single employee in Gjensidige helps us deliver to take over Handelsbanken’s pension portfolio, under one name with the Gjensidige Watchman good results. The employees’ expertise and mo- and the Group entered in as a sizeable owner of as a common logo. tivation must be further developed. Gjensidige’s SpareBank1 SR-Bank. management and employee development, where OUR CUSTOMERS the individual has an independent responsibility Financially, 2009 was a very good year for Growth and development is of crucial impor- for his/her own development, is an important Gjensidige with a profit that will form the basis tance for Gjensidige as it is for all enterprises target area in order to ensure that the Group will for the payment of dividends to both customers that want to maintain their position in the be an attractive workplace. and the Gjensidige Foundation, which owns the market. The efforts to maximize customer equity certificates. The profit was attributed satisfaction every single time a customer in 2009, we established Gjensidige’s sales and to a combination of adequate profitability in comes into contact with us is the very basis brand school, which helps facilitate faster train- the insurance operations and good financial for our success. ing of new employees and increased expertise income. The target areas banking and pensions among our experienced customer advisors and and savings also evolved in accordance with our Gjensidige has more than two million contacts sales managers. All in all, this is an important plans even though the results continued to be with customers in a year. it is an important contribution to skills development. it is also an affected by the fact that they are in a start-up objective for us to be able to utilise these points important contribution to our efforts to ensure phase. The health services business area of contact even more effectively in order to that we will always offer valuable services to our reported a profit. generate new business by further broadening customers. the scope of our relations with each customer. A The competition is increasing from new players critical factor in this respect is to have employees in the review of the staff areas, efforts were and from banks that want to enter the general up front who can help ensure customer satisfac- made to centralise more staff functions. One insurance market, and this also affected the tion while meeting the requirements for efficient positive effect of this is that the expertise can be market in 2009. Tougher competition combined customer service. As a tool in these efforts, we concentrated, and it will be possible to develop with the Group’s objective of profitability in the have successfully established our own training stronger professional circles that are inherently insurance portfolio resulted in a slightly lower arena for sales and brand building. motivating and inspiring. 2 GjensiDige annuAl report 2009 t hisis g jensidige operat i ons tHe TREND IN 2010 The changes that were implemented in the Group in recent years have created a sound plat- form for further growth and development. The premise that Gjensidige shall be a Norwegian- perspect based and customer-controlled company is an underlying factor in the further development of the Group. i ve in recent years, the model for customer govern- ance in Gjensidige has been clarified. At the same time, the customers’ rights as owners have been strengthened through the introduction of the model with individual dividends to the customers. The Financial institutions Act was amended last year and now allows the custom- ers to exercise their ownership of Gjensidige through a financial foundation.i f the customer governance ownership is entered into a foundation, this simultaneously entails that Gjensidige Forsikring BA is converted into a public limited company. in accordance with an initiative from the customers’ elected representatives in Gjensidige, solutions have been studied in keeping with the new possibilities that the amendment in the act allows. Based on the studies that have been conducted, the Board of Directors has chosen to submit a proposal to convert Gjensidige Forsikring to a public limited company and that customer governance is continued through a financial res foundation. This proposal will be considered in ul the general meeting this spring. if the amend- ts ments are approved, it is expected that the conversion will be in place by the end of the first half of 2010. is again a relevant option in the second half customer-controlled and Norwegian-based as As a result of the turbulence in the financial of 2010. in that case, a conversion to a public specified in the strategic insights on which our markets, the Board of Directors has not yet limited company will entail that it is shares rather operations are based. implemented the general meeting’s resolution in than equity certificates that are listed. A stock 2007 to list Gjensidige on the stock exchange. exchange listing will make Gjensidige one of the if we get a satisfactory and stable stock market biggest financial players in Oslo Børs (the Oslo in the coming months, a stock exchange listing Stock Exchange).