Does Gjensidige’s CoreSuite Write-Off Reveal Shifts in Digital Strategy or Broader Ambitions for OB:GJF?

• Gjensidige Pensjonsforsikring announced that it has discontinued its CoreSuite core-IT system after determining the platform no longer meets evolving business requirements, leading to a NOK400 million pre-tax impact on the Group's pension business profit in Q3 2025.
• This decision will not affect the Group's eligible own funds or its dividend capacity under Solvency II, as these metrics exclude intangible assets from their calculations.
• We'll explore how the discontinued CoreSuite project and resulting financial charge may influence the company's existing investment narrative.

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Gjensidige Forsikring Investment Narrative Recap

To own shares in Gjensidige Forsikring, investors need to believe in the market’s continued appetite for steady insurance profits supported by disciplined pricing and strong customer retention, especially in the Norwegian core business. The recent discontinuation of the CoreSuite IT platform, while resulting in a NOK400 million pre-tax hit to the pension business in Q3 2025, is not expected to materially affect the group’s most important near-term catalyst, continued premium growth in property and motor insurance, nor does it heighten the primary risks linked to regulatory scrutiny or underwriting volatility.

In the context of technology investments and operational efficiency, the discontinuation of CoreSuite aligns in timing with recent debt financing activities, including the NOK1.2 billion Restricted Tier 1 and Tier 2 bond issuances in September 2025. This provides Gjensidige with financial flexibility to address evolving business demands and strengthen its capital base, which supports ongoing initiatives and cushions against potential macroeconomic or regulatory shocks.

Yet, investors should be aware that, despite the group's resilience to system changes, regulatory inquiries, such as those currently faced in Denmark, remain an area...

Read the full narrative on Gjensidige Forsikring (it's free!)

Gjensidige Forsikring's narrative projects NOK 47.2 billion in revenue and NOK 8.0 billion in earnings by 2028. This requires 2.1% yearly revenue growth and a NOK 1.7 billion earnings increase from the current NOK 6.3 billion.

Uncover how Gjensidige Forsikring's forecasts yield a NOK262.44 fair value, a 7% downside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community fair value estimates for Gjensidige Forsikring range from NOK185 to NOK421, illustrating a wide spectrum of investor views. While many expect pricing and retention measures to drive future growth, the diversity of these perspectives highlights the importance of considering multiple scenarios for the company’s performance.

Explore 3 other fair value estimates on Gjensidige Forsikring - why the stock might be worth as much as 50% more than the current price!

Build Your Own Gjensidige Forsikring Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Gjensidige Forsikring research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Gjensidige Forsikring research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Gjensidige Forsikring's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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