Gjensidige Forsikring ASA

Earnings Release • Jan 25, 2023

Solid fourth quarter and full year underwriting results. The financial result reflects high market volatility.

Solid fourth quarter and full year underwriting results. The financial result reflects high market volatility.

This release contains inside information related to Gjensidige Forsikring ASA

pursuant to the EUMarket Abuse Regulation and is subject to the disclosure

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

Strong operations, effective pricing measures, good risk selection and stringent

cost control resulted in a solid underwriting result for the quarter and full

year. The return on the investment portfolio reflects market conditions. The

outlook for Gjensidige's underwriting results remains good. The Board proposes a

regular dividend of NOK 8.25 per share.

Gjensidige Forsikring Group recorded a profit before tax of NOK 1,694.2 million

(2,850.1) for the quarter. The profit in the fourth quarter of 2021 included

appreciation of NOK 1.2 billion in the value of the property assets in the

investment portfolio, related to the sale of Oslo Areal. The profit after tax

was NOK 1,334.5 million (2,486.3) and the corresponding earnings per share were

NOK 2.64 (4.96). The profit from general insurance operations measured by the

underwriting result was NOK 1,174.4 million (1,347.4), corresponding to a

combined ratio of 85.6 (82.0).

- We are very pleased with the solid results Gjensidige has delivered. And I am

very confident that we are on the best possible trajectory to continue our

strong performance. We will stay ahead of claims inflation, and unless the

current geopolitical situation becomes dramatically worse, we do not expect to

see any significant negative spill-over to our underwriting result, says CEO

Geir Holmgren. -We will continue to create value for our stakeholders, including

paying out attractive dividends to our shareholders, Holmgren says.

-I would also like to mention the step-up in our sustainability efforts

throughout the Group. We contribute to a safer society and cut emissions both

within the investment portfolio, our claims handlings processes and internal

processes. I am also very pleased with our continued strong growth and

profitability in commercial insurance across all countries, Holmgren says.

Earned premiums from general insurance increased by 9.2 per cent to NOK 8,156.5

million (7,471.6) in the quarter. Measured in local currency, premiums increased

by 8.4 per cent. Earned premiums increased due to solid renewals, effective and

differentiated pricing measures and volume growth.

The underwriting result reflects strong premium growth, offset by a higher loss

ratio. Large losses were significantly higher and run-off gains somewhat higher

than in the same quarter in 2021.  The cost ratio continued to improve. The

underlying frequency loss ratio increased by 2.3 percentage points compared with

the same quarter in 2021. Adjusted for the positive Covid-19 impact on claims in

the fourth quarter 2021, the underlying frequency loss ratio increased by 1.8

percentage points, driven by Commercial and Denmark.

The Pension segment generated a record high profit for the period, driven by

increased operating and financial income. The financial result for the quarter

was NOK 559.9 million (1,497.4), which corresponds to a return on total assets

of 1.0 per cent (2.5). The result was positively impacted by higher equity

markets and marginally lower interest rates. Lower credit spreads also

contributed positively.

For the full year 2022, the Group recorded a profit before tax of NOK 5,823.9

million (8,799.4). The profit from general insurance operations measured by the

underwriting result was NOK 5,855.8 million (5,718.3), corresponding to a

combined ratio of 81.4 (80.4). The profit after tax was NOK 4,568.8 million

(7,141.1).  Earnings per share amounted to NOK 9.04 (14.18). The profit includes

a NOK 0.8 billion gain on the sale of Oslo Areal in the first quarter 2022,

recorded under Other items. The increase in the underwriting result was driven

by 8.3 per cent growth in earned premiums, partly offset by a higher loss ratio.

Earned premiums rose by 8.8 per cent measured in local currency. Large losses

were higher and run-off gains lower than in 2021. The underlying frequency loss

ratio increased by 0.3 percentage points. Adjusted for the effects of the

weather and Covid-19 claims in 2021, the underlying frequency loss ratio

improved by 0.1 percentage points.

The Pension segment recorded a higher profit, mainly driven by increased

insurance and financial income.

The rise in interest rates in 2022 in combination with an increase in credit

spreads has had a negative impact on fixed-income investments. Due to the rise

in interest rates, other asset classes also generated negative returns.

Commodities, Private Equity, bonds valued at amortised cost and fixed-income

investments with a short duration were the only asset classes with positive

returns in the investment portfolio during the period. The financial result for

the year was minus NOK 651.0 million (3,063.1), which corresponds to a return on

total assets of minus 1.1 per cent (5.1). Oslo Areal was sold during the fourth

quarter 2021. The transaction was closed in January 2022. A gain of NOK 0.8

billion was recorded under Other items in the first quarter 2022.

Highlights fourth quarter 2022 (fourth quarter 2021)

· Profit/(loss) before tax: NOK 1,694.2 million (2,850.1)

· Earnings per share: NOK 2.64 (4.96)

· Earned premiums: NOK 8,156.5 million (7,471.6)

· Underwriting result: NOK 1,174.4 million (1,347.4)

· Combined ratio: 85.6 (82.0)

· Cost ratio: 14.0 (14.4)

· Financial result: NOK 559.9 million (1,497.4)

Highlights year as a whole 2022 (2021)

· Profit/(loss) before tax: NOK 5,823.9 million (8,799.4)

· Earnings per share: NOK 9.04 (14.18)

· Earned premiums: NOK 31,552.3 million (29,136.4)

· Underwriting result: NOK 5,855.8 million (5,718.3)

· Combined ratio: 81.4 (80.4)

· Cost ratio: 13.7 (14.2)

· Financial result: NOK minus 651.0 million (3,063.1)

Proposed dividend

· Proposed regular dividend: NOK 4,125 million (3,850), corresponding to NOK

8.25 per share (7.70)

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 Gjensidige Forsikring Group Q4 2022.

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

Forsikring ASA.

Date and time of publication: 07:00 CET,25.January 2023.

Contact persons,Gjensidige Forsikring ASA:

Head ofCommunication, 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 offerpension and

savings. The Group's operating income was NOK 34 billion in 2022, while total

assets were NOK 135 billion.