Gjensidige Forsikring ASA

Earnings Release • Jul 15, 2024

Second quarter 2024 result s impacted by higher claims in Norway

Second quarter 2024 result s impacted by higher claims in Norway

This release contains inside information related to Gjensidige Forsikring ASA

pursuant to the EU Market Abuse Regulation and is subject to the disclosure

requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

Higher claims for motor and property insurance in Norway had a negative impact

on the insurance service result. Adverse development in claims in the first

quarter 2024 also contributed to the deterioration of the underlying frequency

loss ratio in the second quarter. Ongoing pricing measures have been further

strengthened to improve profitability. The insurance service result was

positively impacted by changes in the risk adjustment. Delivery on the combined

ratio target for 2024 will be challenged by the results for the first half of

Highlights Second quarter Year-to-date

2024 2023 2024 2023

Group

Profit or loss before NOK million 1,830.5 1,333.9 2,906.7 2,825.3

tax

Earnings per share NOK 2.72 2.04 4.31 4.30

General Insurance

Insurance revenue NOK million 9,831.7 8,959.5 19,305.6 17,491.3

Insurance service NOK million 1,433.6 1,508.6 2,137.7 2,623.4

result

Combined ratio Per cent 85.4 83.2 88.9 85.0

Cost ratio Per cent 13.2 13.6 13.3 13.5

Financial result NOK million 514.2 -199.3 961.8 594.8

Solvency ratio, Per cent 169.8 179.8 169.8 179.8

approved Partial

Internal Model

Development during the quarter

-The second quarter results were significantly impacted by higher claims in

Norway, but we continue to have a very strong growth momentum, and our capital

position is solid, says CEO Geir Holmgren.

-We are fully committed to improve profitability. The increase in claims is

being met with significant and targeted pricing measures. We will improve the

combined ratio for the Group and the underlying frequency loss ratio for Private

and Commercial over time, and we maintain all the financial targets for 2025 and

2026, Holmgren says.

General insurance

Insurance revenue increased by 9.7 per cent to NOK 9,831.7 million in the

quarter, or by 10.0 per cent measured in local currency. This was mainly driven

by effective and differentiated pricing measures and solid renewals.

The insurance service result decreased by 5.0 per cent, reflecting 2.7

percentage points increase in the loss ratio. A change of the risk adjustment,

and a higher discounting effect contributed positively to the loss ratio. The

underlying frequency loss ratio rose 5.6 percentage points primarily driven by

higher claims frequency and claims severity for motor and property insurance in

Norway. Adverse development in claims in the first quarter 2024 for Private and

Commercial in Norway also contributed with approximately 2 percentage points to

the deterioration of the underlying frequency loss ratio in this quarter.

Ongoing pricing measures have been further strengthened to improve

profitability.

The cost ratio improved by 0.4 percentage points mainly due to efficiency

measures and growth in insurance revenue.

Pension

The pension segment recorded a profit before tax expense of NOK 185.9 million,

mainly driven by a higher net finance income.

Financial result

The financial result for the quarter was NOK 514.2 million, which corresponds to

a return on total assets of 0.8 per cent. The result for the quarter was

positively impacted by high running yields and positive equity markets. Higher

interest rates had a negative impact on the result.

This release contains alternative performance measures (APMs). APMs are

described at www.gjensidige.com/reporting

This release is issued by Christian Haraldsen, media relations officer at

Gjensidige Forsikring ASA.

Date and time of publication: 07:00 CET, 15 July 2024

Contact persons

Head of Communication, Øystein Thoresen. Tel: +47 952 33 382

Head of Investor Relations Mitra Hagen Negård. Tel: +47 957 93 631

Gjensidige is a leading Nordic insurance group listed on the Oslo Stock

Exchange. We have about 4,500 employees and offer insurance products in Norway,

Denmark, Sweden and the Baltic states. In Norway, we also offer pension and

savings. The Group's operating income was NOK 36 billion in 2023, while total

assets were NOK 148 billion.