Gjensidige Forsikring ASA

Investor Presentation • Jul 14, 2023

Q2 2023 Interim presentation

14 July 2023

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Capital Markets Day 22 November 2023 in Oslo

Strong second quarter result

• Pre-tax profit NOK 1,334m
• Insurance service result NOK 1,509m
• 12.6% insurance revenue growth
• Higher large losses than expected
• Underlying profitability decreased, mainly impacted by motor and property insurance in Norway
• Good cost control
• Financial result minus NOK 199m, return minus 0.3%
• Return on equity 19.5%¹

Combined ratio

Pre-tax profit

This presentation contains alternative performance measures (APMs).

APMs are described at www.gjensidige.no/group/investor-relations/reports in a document named APMs Gjensidige Forsikring Group Q2 2023. 1) Annualised, YTD. Gjensidige Forsikring Group ³

Staying ahead of claims inflation

Continuous monitoring and rapid response to claims inflation

Best market terms on supplier contracts, limited exposure to inflation on materials

Building on strong competitive position in Norway – implementing further measures to meet claims development

• Good performance in Norway
• Maintained superior market position
• Strong growth momentum sustained
• Strong July first renewals and good sales in the SME sector
• Measures to mitigate increase in claims in Norway
• Strengthened pricing measures
• Adjusting terms and conditions
• Improved performance outside Norway
• Good revenue growth
• Improved underlying profitability in Sweden and the Baltics
• Moving forward on new core IT-system in Denmark

Maintaining high retention in Norway

Strengthening Gjensidige's position in Denmark

Moving forward with sustainability initiatives

• Launched the third taxonomy aligned insurance product
• Paid out grants from sustainability fund, earmarked damage prevention initiatives in the agricultural sector
• Launched a new damage preventive service for properties in Denmark
• Launched a pilot on a sensor-based service for boat owners for online monitoring and alerts
• Established the practice of using second-hand floor materials in repairs or selling to private customers
• Finalised Transparency Act reporting for all subsidiaries and identified suppliers for follow-up

Norwegian Business School's sustainability survey¹ Norway, 2023

ESG measures and customer dividend model strengthen Gjensidige's role in the Norwegian society

• More than NOK 28.5 bn paid out since 2008 • Highly valued customer proposition • 5 out of 10 customers say the customer dividend model contributes to their loyalty • 8 out of 10 customers aware of the model • 5 out of 10 non-customers aware of the model • Complements a strong brand and superior customer experiences in building loyalty Attractive customer dividends NOK ^m

Financial Performance

Solid insurance service result despite higher claims frequency and large losses

NOKm	Q2 2023	Q2 2022	YTD 2023	YTD 2022
Private	700	787	1 234	1 363
Commercial	719	852	1 112	1 290
Denmark	335	205	564	366
Sweden	50	28	104	73
Baltics	15	(13)	7	(57)
Corporate Centre	(310)	(192)	(398)	(465)
Insurance service result general insurance	1 509	1 667	2 623	2 571
Pension	(3)	(72)	(11)	78
Net financial result investment portfolio	(64)	(1 025)	470	(1 730)
Other items	(108)	(79)	(256)	610
Profit before tax expense	1 334	491	2 825	1 529

• Continued high revenue growth
• Efficient operations
• Underlying frequency loss ratio negatively impacted by motor and property insurance in Norway
• Higher insurance service results outside Norway
• Financial result reflects higher interest rates
• Pension result reflects one-offs and asymmetric recognition of losses on onerous contracts and profits on new contracts

12.6 per cent revenue growth – 8.1 per cent adjusted for currency effects

Insurance revenue development

Key drivers

• Private +6.4%, mainly price driven
• Commercial +10.1%, price and volume driven
• Denmark +25.5%
• Positive 8.6% in local currency, volume and price driven
• Sweden +8.5%
• Positive 2.2% in local currency, volume and price driven
• Baltics +29.6%
• Positive 11.5% in local currency, price and volume driven

Increased loss ratio, but within financial targets

Loss ratio development

Loss ratio (%)

Key drivers

• Effective pricing measures
• Good risk selection
• Higher large losses and run-off gains
• Higher discounting effect due to increased interest rates
• Change in underlying frequency loss ratio primarily impacted by motor and property insurance in Norway

Continued good cost control – cost ratio 13.6 per cent

Operating expenses Competitive cost ratio

• Efficient operations
• High revenue growth
• Strong cost discipline across the Group

Cost ratios

%

Good performance in Pension

Pre-tax profit Pre-tax profit adjusted for change in CSM

Other (paid up policies, risk products and company portfolio) Unit linked

Investment return of minus 0.3 per cent, driven by market conditions

Investment return per asset class Balanced investment portfolio

Fixed-income: 94%

• Listed equities: 3%
• PE funds: 2%
• Other (incl. hedge funds and commodities): 1%

High credit quality

• Investment grade: 83%
• Investment grade (internal rating): 8%
• Non-investment grade: 1%
• Non-investment grade (internal rating): 0%
• Unrated: 9%

Strong capital position

Solvency ratio

• 173% when adjusting for acquisition of portfolio from Sønderjysk Forsikring and PenSam Forsikring (expected completion Q3'23 and Q4'23 respectively)

Eligible own funds

• Contribution from operating SII earnings and result in free portfolio offset by formulaic dividend assumption

Capital requirement

• Higher insurance risk driven by growth and changes in exchange rates
• Reduction in capital requirement due to minor internal model change approved by the Norwegian FSA

1) Operating SII earnings comprise SII underwriting result and SII financial result of the match portfolio after tax. 2) 80% payout ratio according to dividend policy for the accounting year 2023. Gjensidige Forsikring Group ¹⁵

Moving ahead on operational targets

Metric	Status Q2 2023	Target 2025
Customer satisfaction	78%	> 78, Group
	90%	> 90%, Norway
Customer retention	78%	> 85%, Outside Norway
Digitalisation index	+4%	> +10% annually, Group
Digital claims reporting	75%	> 85%, Group
Automated claims processing	60%	> 70%, Norway

Strong customer retention in Norway and Denmark

Concluding remarks

• Strong quarterly results
• Strong growth momentum sustained
• Outlook remains good
• Superior market position
• Operational excellence to be further enhanced through new Group structure
• Strong capital position
• Will continue to pay out attractive dividends to shareholders

Ambitious annual financial targets from 2023

Roadshows and conferences post Q2 2023 results

Date	Location	Participants	Event	Arranged by
18 August	Oslo	CEO Geir Holmgren CFO Jostein Amdal Head of IR Mitra H. Negård	Group investor meeting	Carnegie
August	Oslo	CEO Geir Holmgren CFO Jostein Amdal Head of IR Mitra H. Negård	Roadshow	DNB
24 August	Stockholm	CEO Geir Holmgren Head of IR Mitra H. Negård	Group investor meeting	SEB
30 August	Oslo	CEO Geir Holmgren CFO Jostein Amdal Head of IR Mitra H. Negård	Analyst day
6 September	Oslo	CEO Geir Holmgren Head of IR Mitra H. Negård	Group investor meeting	DNB
7 September	London	CFO Jostein Amdal IRO Marius M. Fjellbo	Roadshow	ABGSC
20 September	London	CEO Geir Holmgren CFO Jostein Amdal Head of IR Mitra H. Negård	Group investor meeting	Bank of America
25 September	Paris	CEO Geir Holmgren Head of IR Mitra H. Negård	Roadshow	SEB

General insurance – cost ratio and loss ratio per segment

Private Commercial

Large losses higher than expected

CC = Corporate Centre. Large losses: Losses > NOK 10m. Weather related large losses are included. Large losses in excess of NOK 30m are charged to the Corporate Centre while up to NOK 30m per claim is charged to the segment in which the large loss occurred. The Baltics segment has, as a main rule, a retention level of EUR 0.5m. The Sweden segment has a retention level of NOK 10m. Gjensidige Forsikring Group 22

Large losses development

~ NOK 1.6bn in large losses expected annually (before discounting)

Expected Reported, before discounting

Large losses per segment (before discounting) actual vs. expected

Expected Q2 2023

Run-off gains 2.3 percentage points

Run-off per segment

NOK m

Run-off development

Appendix

Quarterly insurance service results - seasonality in Nordic general insurance

2022 2023

Norwegian Natural Perils Pool in brief

Details regarding the pool

• As per 1.1.2023 the premium rate is set to 0.065 per thousand of the fire insurance amount, no change from 2022
• Natural perils damages in Norway:
• o NOK 0-1,500m covered by general insurance companies based on national market share
• o NOK 1,500m-16,000m covered by the Norwegian Natural Perils Pool's reinsurance programme
• o Maximum compensation per event is NOK 16,000m
• No limit for the frequency of events

Objects covered

• Fire insurance coverage for buildings and contents in Norway includes coverage for natural catastrophes
• The pool does not cover loss of profits, motor vehicles, leisure boats, and certain other items, which are covered through ordinary insurances
• For damages on private property that cannot be insured, e.g., roads, bridges, farmland and forests, coverage may be sought through the National Natural Perils Fund

Handling of natural perils claims

Details regarding the pool

• The customers report claims to own insurance company
• The insurance company reports claims on to Finance Norway, which coordinates the Norwegian Natural Perils Pool
• Share of claims is allocated to the companies based on national market share for fire insurance
• Through own accounts, the companies cover the allocated claims costs

Gjensidige specific

• Gjensidige is a reinsurer for the pool, for its own market share
• Natural perils claims are booked in the same month as the claim occurs

Appendix

Reinsurance – overview valid as from 2023

• Reinsurance is purchased for protection of the Group's capital position and is primarily a capital management tool
• General retention level per loss/loss occurrence is NOK 100m (for the first loss the retention is NOK 200m)
• For weather-related events the retention level is NOK 250m
• Maximum retention level for the group per loss/loss occurrence/event across reinsurance programmes is NOK 600m including any reinstatement premium
• Gjensidige considers additional coverage if this is appropriate according to internal modelling and capital requirement

Practical example, natural perils claim in Norway

• A natural perils event covered by the Norwegian Natural Perils Pool occurs and is defined by Finance Norway as a single event. The total industry claim exceeds NOK 1,500m.
• Gjensidige's share of the NOK 1,500 claim is allocated according to share in the pool.
• Gjensidige is in addition allocated its share of the amount exceeding NOK 1,500m, as a reinsurer for the pool.
• Gjensidige receives claims directly, for damages not covered by the pool.
• Gjensidige's total claims related to the natural perils event exceeds Gjensidige's retention level and hits the catastrophe reinsurance programme.

• In general Gjensidige's net impact for this event is NOK 250m.

• Duration and currency matching versus technical provisions

• Credit element for increased returns
• Some inflation hedging

Free portfolio

• Focused on absolute returns
• Dynamic risk management
• Active management fixed income and equities
• Normal risk premiums basis for asset allocation and use of capital

Match portfolio Key characteristics

• Limited risk appetite
• Fixed-income:
• Currency hedging vs NOK ~ 100% o Limit +/- 10% per currency
• Equity and PE funds:
• Currency hedging 0-100%
• Fair value recognition
• Stable performance

Investment portfolio

Asset class	elements1 Investments, key	Benchmark
Match portfolio
Fixed-income NOK	Corporate and government bonds	NBP Norwegian RM1-RM3 Duration 3Y Index NORM123D3
Fixed-income DKK	Covered Bonds and government bonds	Nykredit Constant Maturity Index Bullet Covered Bonds 5Y NYKRCMB5 Index
Fixed-income other currencies	Covered bonds, corporate and government bonds	Bloomberg Euro Agg Treasury 3-5Y LET3TREU Index
Free portfolio
Fixed-income – short duration	Norwegian money market	NBP Norwegian Government Duration 0.25 Index NOGOVD3M (Alternatively: I36032NO Index Bloomberg Barclays Norway T-Bills)
Global investment grade bonds	IG bonds in internationally diversified funds externally managed	Bloomberg Global Agg Corp - Hedged to NOK H09805NO Index
Global high yield bonds	Including HY, Convertible bonds and Emerging Market Debt externally managed	Bloomberg Global HY- Hedged to NOK H00039NO Index
Other bonds	Government bonds, Fixed Income derivatives and cash	NBP Norwegian Government Duration 0.25 Index NOGOVD3M (Alternatively: I36032NO Index Bloomberg Barclays Norway T-Bills)
Listed equities	Mainly internationally and domestic diversified funds externally managed	MSCI World – Local Currency NDDLWI Index
Private Equity funds	Generalists (Norwegian and Nordic)/ Oil & Gas	Oslo Børs OSEBX index
Other	Including finance related expenses, hedge funds and commodities	NBP Norwegian Government Duration 0.25 Index NOGOVD3M (Alternatively: I36032NO Index Bloomberg Barclays Norway T-Bills)

Asset allocation – as at 30.06.2023

Match portfolio

• NOK 35.4bn
• Average duration: 3.2 years
• Average yield: 4.8%

Fixed-income NOK: 56%

Fixed-income DKK: 33%

Fixed-income other currencies: 11%

Free portfolio

• NOK 23.5bn
• Average duration fixed-income instruments: 3.1 years

• Average yield: 4.0%

• Fixed-income short duration: 35% Global investment grade bonds: 40% Global high yield bonds: 4%

• Other bonds: 6%
• Listed equities : 8%
• Private Equity funds: 5%
• Other: 3%

Credit and counterparty risk

• The portfolio consists mainly of securities in rated companies with high creditworthiness (Investment grade)
• Issuers with no official rating are mainly Norwegian savings banks, municipalities, credit institutions and power producers and distributors

Total fixed income portfolio

Split – Rating	Match portfolio			Free portfolio
	NOK bn	%	NOK bn	%
AAA	14.1	39.7	2.5	12.8
AA	3.2	9.1	6.0	30.4
A	8.6	24.2	5.4	27.3
BBB	3.5	9.9	2.2	11.2
BB	0.0	0.0	0.3	1.3
B	0.0	0.0	0.1	0.5
CCC or lower	0.0	0.0	0.0	0.1
Internal rating1	2.7	7.6	1.7	8.7
Unrated	3.3	9.3	1.5	7.7
Fixed income portfolio	35.4	100.0	19.7	100.0

Split – Counterparty			Match portfolio		Free portfolio
	NOK bn	%	NOK bn	%
Public sector	5.4	15.4	7.4	37.6
Bank/financial institutions	19.7	55.7	8.7	44.1
Corporates	10.2	29.0	3.6	18.4
Total	35.4	100.0	19.7	100.0

Capital generation year-to-date

1) Operating SII earnings comprise SII underwriting result and SII financial result of the match portfolio after tax. 2) 80% payout ratio according to dividend policy for the accounting year 2023. Gjensidige Forsikring Group ³⁵

Capital position per operational areas

NOK bn	Approved partial internal model (Group)	Approved partial internal model (general insurance)	Own partial internal model (Group)1	Own partial internal model (general insurance)1	Gjensidige Pensjonsforsikring
Eligible own funds	20.7	18.5	21.0	18.7	2.3
Capital requirement	11.5	10.5	9.3	8.2	1.6
Solvency ratio	180%	175%	226%	227%	143%

Solvency II eligible own funds

Bridging the gap between IFRS equity and Solvency II capital

Gjensidige continues to work for full approval of own partial internal model (PIM)

NOK bn	Approved PIM (Group) 1)	Own PIM (Group) 2)
Eligible own funds	20.7	21.0
Capital charge for non-life and health UW risk	11.0	8.5
Capital charge for life UW risk	1.9	1.9
Capital charge for market risk	5.1	4.5
Capital charge for counterparty risk	0.4	0.4
Diversification	-4.5	-4.4
Basic solvency capital requirement	13.9	10.9
Operational risk	1.1	1.1
Adjustments (loss-absorbing capacity of deferred tax)	-3.5	-2.8
Solvency capital requirement (SCR)	11.5	9.3
Surplus	9.2	11.7
Solvency ratio	180%	226%

Main differences between approved and own PIM

• Windstorm model: Approved PIM based on standard formula. More validation required for approval.
• Correlation between market risk and underwriting risk: Approved PIM based on standard formula. Own PIM takes account of dependencies between underwriting risk and market risk through common exposure to interest rates, inflation rates and currency rates.
• Prudential margin: Approved PIM includes general prudential margins for both market risk and underwriting risk.

Figures as at 30.06.2023.

1) Most of non-life and health iunderwriting risk and market risk related to the non-life and health insurance business is internally modelled. The standard formula is used for other risks. 2) Own partial internal model is not validated. Gjensidige Forsikring Group ³⁸

Appendix

Solvency II sensitivities for the approved partial internal model

Subordinated debt capacity – Gjensidige Forsikring Group

Principles for capacity

	T1	T2	Constraint
SII	Max 20% of Tier 1 capital	Max 50% of SCR less other T2 capital items	Must be satisfied at group and solo level

Capacity and utilisation

• Tier 1 remaining capacity is NOK 2.0-2.4bn
• Utilised Tier 1 debt capacity: NOK 1.2bn
• Tier 2 remaining capacity is NOK 0.6bn
• Utilised sub debt: NOK 2.3bn
• Utilised natural perils fund: NOK 2.8bn

Annualised return on equity 19.5 per cent

Equity (NOK m) Annualised return on equity (%)

Market leader in Norway

Market share – Total market Market share – Commercial Market share – Private 30,7% 25,7% 12,1% 5,5% 4,3% Gjensidige If Tryg Fremtind Protector 23,7% 20,7%

Growth opportunities outside Norway

Appendix

Gjensidige Pensjonsforsikring - Number five position in the growing Norwegian defined contribution pension market

• Well positioned for continued profitable organic growth
• Core focus on SME customers
• Strong profitability
• Multi-channel distribution

Market shares – total AUM NOK 449 bn

Gjensidige Pensjonsforsikring

Group policy ¹ and company portfolio Number of occupational pension members

Bonds classified as loans and recivables: 76% Property expsure: 7%

Fixed income - short duration: 17%

Appendix

New buffer for future profit arising from Life insurance

• Life insurance contracts are separated into profitable and onerous groups, based on best estimate at recognition.
• Future profits are set aside in CSM as estimated unearned profit.
• CSM released to P&L proportionately to risk reduction.
• Loss component arising from onerous contracts affects P&L directly at recognition.

Ownership

10 largest shareholders¹

No	Shareholder	Stake (%)
1	Gjensidigestiftelsen	62.24
2	Folketrygdfondet	4.24
3	BlackRock Inc	3.02
4	Deutsche Bank	3.02
5	Scotia Bank	1.72
6	The Vanguard Group, Inc	1.21
7	Nordea	1.10
8	Storebrand Investments	1.05
9	Svenska Handelsbank Group	1.01
10	Danske Bank	0.99
	Total 10 largest	79.60

Geographical distribution of shares2

Gjensidigestiftelsen ownership policy

• Long term target holding: >60%
• Can accept reduced ownership ratio in case of acquisitions and capital issues when in accordance with Gjensidige's overall strategy

1) Shareholder list based on analysis performed by Orient Capital Ltd of the register of shareholders in the Norwegian Central Securities Depository (VPS) as per 30 June 2023. This analysis provides a survey of the shareholders who are behind the nominee accounts. There is no guarantee that the list is complete. 2) Distribution of shares excluding share held by the Gjensidige Foundation (Gjensidigestiftelsen). Gjensidige Forsikring Group 47

Disclaimer

This presentation and the information contained herein have been prepared by and is the sole responsibility of Gjensidige Forsikring ASA (the "Company"). Such information is being provided to you solely for your information and may not be reproduced, retransmitted, further distributed to any other person or published, in whole or in part, for any purpose. Failure to comply with this restriction may constitute a violation of applicable securities laws. The information and opinions presented herein are based on general information gathered at the time of writing and are therefore subject to change without notice. The Company assumes no obligations to update or correct any of the information set out herein.

These materials may contain statements about future events and expectations that are forward-looking statements. Any statement in these materials that is not a statement of historical fact including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

This presentation does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. The information in this presentation is subject to verification, completion and change. The contents of this presentation have not been independently verified. While the Company relies on information obtained from sources believed to be reliable, it does not guarantee its accuracy or completeness. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its owners, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of the Company, its affiliates or any of their respective advisors or representatives or any other person shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. The Company's securities have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act"), and are offered and sold only outside the United States in accordance with an exemption from registration provided by Regulation S of the US Securities Act.

This presentation should not form the basis of any investment decision. Investors and prospective investors in securities of any issuer mentioned herein are required to make their own independent investigation and appraisal of the business and financial condition of such company and the nature of the securities. Any decision to purchase securities in the context of a proposed offering of securities, if any, should be made solely on the basis of information contained in any offering documents published in relation to such an offering. For further information about the Company, reference is made public disclosures made by the Company, such as filings made with the Oslo Stock Exchange, periodic reports and other materials available on the Company's web pages.

Gjensidige Forsikring provides alternative performance measures (APMs) in the financial reports, in addition to the financial figures prepared in accordance with the International Financial Reporting Standards (IFRS). The measures are not defined in IFRS (International Financial Report Standards) and are not necessarily directly comparable to other companies' performance measures. The APMs are not intended to be a substitute for, or superior to, any IFRS measures of performance, but have been included to provide insight into Gjensidige's performance and represent important measures for how management governs the Group and its business activities. Key figures that are regulated by IFRS or other legislation, as well as non-financial information, are not regarded as APMs. Gjensidige's APMs are presented in the quarterly report and presentation. All APMs are presented with comparable figures for earlier periods. The APMs have generally been used consistently over time. Definitions and calculations can be found at www.gjensidige.no/group/investor-relations/reports.

Investor Relations

Mitra Hagen Negård Head of Investor Relations Mobile: (+47) 957 93 631 mitra-hagen.negard@gjensidige.no Marius Michelsen Fjellbo Investor Relations Officer Mobile: (+47) 995 67 593 marius-michelsen.fjellbo@gjensidige.no Address Schweigaards gate 21, P.O. Box 700 Sentrum, NO-0106 OSLO gjensidige.no/ir