Gjensidige Forsikring ASA

Earnings Release • Oct 20, 2023

Results impacted by severe weather and one-off effects

Results impacted by severe weather and one-off effects

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

Gjensidige generated a profit after tax of NOK 827 million during the third

quarter, slightly down year-on-year despite significant claims related to severe

weather events and one-off expenses. The strong momentum in revenue growth

continued, while underlying profitability decreased. Gjensidige will continue to

implement targeted measures to improve underlying profitability. The severe

weather events and one-off expenses in the third quarter impact delivery on the

Group's financial targets for 2023. The solid capital position and strong

underlying profitability secures the ability to pay out dividends according to

the dividend policy.

Gjensidige Forsikring Group recorded a profit before tax of NOK 1,119.6 million

(1,114.8) for the quarter. The profit after tax was NOK 827.4 million (858.8)

and the corresponding earnings per share were NOK 1.63 (1.69). The profit from

general insurance operations measured by the insurance service result was NOK

1,111.2 million (1,864.4), corresponding to a combined ratio of 88.0 (77.3).

- The extreme weather events put our organisation to the test. I am very proud

of how we took care of our customers when it mattered the most. Our competent

and dedicated teams immediately reached out to our customers and made a great

contribution to handle the large number of inquiries, says CEO Geir Holmgren.

- Our results were impacted by weather and one-offs this quarter. The strong

momentum in revenue growth continued and we are looking forward to further

improve our operations. We are handling inflation well and we have strong

measures in place to mitigate the effects of elevated claims frequency for motor

in Norway, Holmgren says.

Insurance revenue from general insurance increased by 13.1 per cent to NOK

9,276.2 million (8,204.4) in the quarter, or by 9.5 per cent measured in local

currency. This was due to solid renewals, effective and differentiated pricing

measures and volume growth.

The insurance service result from general insurance operations was impacted by

the weather-related claims in the third quarter, as well as one-off expenses.

Adjusted for this, it increased by 11.5 per cent.

The increase in operating expenses was mainly driven by one-offs amounting to

NOK 409.0 million, consisting of a NOK 310.0 million write-down of the

accounting value of the new core IT-system in Denmark, NOK 49.0 million in

provisions related to the announced restructuring of the Group and expenses of

NOK 50.0 million related to the renewal of a distribution agreement in Denmark.

Claims related to the storm 'Hans' in Scandinavia and the Baltics, as well as

the torrential rain in Oslo and the surrounding regions during the quarter had a

significant impact on large losses. Drought and the torrential rain also

resulted in damages on crops in Norway during the quarter. The Group recognised

total claims cost of NOK 559.2 million related to these events, net of

reinsurance and including reinstatement premiums for claims related to "Hans".

The underlying frequency loss ratio increased by 1.6 percentage points. The

development was primarily driven by Commercial and Private in Norway. The cost

ratio adjusted for the one-offs, increased by 0.1 percentage point.

The Pension segment generated a profit before tax of NOK 3.9 million (minus

83.0), reflecting increased financial income, actuarial changes with a net

negative effect of NOK 3.7 million as well as a write down of the core IT system

of NOK 61.6 million.

The financial result for the quarter was NOK 119.2 million (minus 744.5), which

corresponds to a return on total assets of 0.2 per cent (minus 1.3). The result

for the quarter was negatively impacted by rising interest rates and negative

stock markets, while a high running yield in the fixed income portfolio

contributed positively to returns.

Year-to-date the Group recorded a profit before tax of NOK 3,944.9 million

(2,643.4). The profit from general insurance operations measured by the

insurance service result was NOK 3,734.5 million (4,435.2), corresponding to a

combined ratio of 86.0 (81.4). The profit after tax was NOK 3,017.9 million

(2,122.2). Earnings per share amounted to NOK 5.93 (4.18).

The decrease in the insurance service result was driven by higher operating

expenses and large losses, in addition to an increase in the underlying

frequency loss ratio. Higher run-off gains and discounting effect contributed

positively. Insurance revenue rose by 8.3 per cent measured in local currency.

The increase in the underlying frequency loss ratio was mainly driven by

difficult weather conditions during the first quarter and the increased claims

frequency in Norway during second and third quarter.

The Pension segment recorded a result before tax of minus NOK 7.6 million (minus

5.0), reflecting an improvement in the insurance servicer result which was more

than offset by the write-down in the third quarter and lower net finance income.

The financial result for the period was NOK 714.0 million (minus 3,484.7), which

corresponds to a return on total assets of 1.2 per cent (minus 5.9). Most asset

classes contributed positively. A high running yield in the fixed income

portfolio, rising equity markets and PE generated positive returns. Higher

interest rates had a negative impact on the portfolio.

Highlights third quarter 2023 (third quarter 2022)

· Profit or loss before tax: NOK 1,119.6 million (1,114.8)

· Earnings per share: NOK 1.63 (1.69)

· Insurance revenue: NOK 9,276.2 million (8,204.4)

· Insurance service result: NOK 1,111.2 million (1,864.4)

· Combined ratio: 88.0 % (77.3%)

· Cost ratio: 17.0 % (12.5%)

· Financial result: NOK 119.2 million (-744.5)

Highlights year-to-date 2023 (2022)

· Profit or loss before tax: NOK 3,944.9 million (2,643.4)

· Earnings per share: NOK 5.93 (4.18)

· Insurance revenue: NOK 26,767.4 million (23,892.9)

· Insurance service result: NOK 3,734.5 million (4,435.2)

· Combined ratio: 86.0 % (81.4%)

· Cost ratio: 14.7 % (13.2%)

· Financial result: NOK 714.0 million (-3,484.7)

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

described at

www.gjensidige.no/reporting (https://eur02.safelinks.protection.outlook.com/?url=

http%3A%2F%2Fwww.gjensidige.no%2Freporting&data=04%7C01%7C%7C6f121ea6906e4de9c1a2

08d9991da38d%7C80184e22072c440ea8a922f52b82646d%7C0%7C0%7C637709174886993144%7CUn

known%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6M

n0%3D%7C1000&sdata=olrVzdkz1RuEnDJKcnZetjS0SXMcHDTktI6Bqwqoahg%3D&reserved=0) in

a document named APMs Alternative Performance Measures.

This release is issued by Jon Aniksdal, Communication Manager at Gjensidige

Forsikring ASA.

Date and time of publication: 07:00 CET, 20 October 2023

Contact persons, Gjensidige Forsikring ASA:

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 4,200 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 34 billion in 2022, while total

assets were NOK 135 billion.