Gjensidige Forsikring ASA

Investor Presentation • Jan 25, 2023

25 January 2023

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Loss ratio Cost ratio

Solid full year underwriting result, financial result reflects high market volatility

• Pre-tax profit NOK 5,824m
• Underwriting result NOK 5,856m
  • o 8.3% premium growth
  • o Strong combined ratio
    • Robust operations and effective pricing measures
    • Good cost control
    • Strong performance in Norway, progress in Sweden and the Baltics
• Financial result minus NOK 651m, return minus 1.1%
• Return on equity 19.3% .

Delivered on all financial targets for 2022

Metric	Delivered 2022		Target
Combined ratio	81.4%		<85%
Cost ratio	13.7%		<14%
Solvency ratio (PIM)	179%		150-200%
ROE after tax	19.3%		>19%
Dividends	NOK 8.25		Dividend Policy

Key sustainability achievements in 2022

Key initiatives

Safer society:

• Launched first taxonomy aligned product commercial building insurance
• Implemented initiatives with MOT and UE with primary focus on mental health among the young

Sustainable claims handling:

• · Promoted reuse of equivalent motor spare parts through adjustments in supplier agreements and new scoring system
• · Collaborations with partners to promote reuse of motor repair and building materials

Responsible investments:

• · Developed model for monitoring progress on efforts to reach net-zero goal
• Launched new pension profiles with strong sustainability focus in Pension

Other initiatives:

· Signed the Science Based Targets Initiative (SBTi)

Recognitions

• · AA rating from MSCI
• Top rankings:
  • · IPSOS' reputation survey (Norway)
  • · Norwegian Business School's sustainability survey (non-life Norway)
  • PWC's Climate Index (Norway)
  • · EPSI's survey (sustainability, Nordics)

Key sustainability goals

• 80% premiums from sustainable products covered by EU taxonomy by 2025
• 35% reduction in CO2e from claims handling processes by 2025
• Net 0 emission in investment portfolio by 2050

Solid quarterly UW-result

NOK m	Q4 2022	Q4 2021	FY 2022	FY 2021
Private	748	727	3,056	2,953
Commercial	439	507	2,742	2,238
Denmark	183	260	824	1,025
Sweden	1 d	(3)	108	97
Baltics	(26)	(38)	(87)	(78)
Corporate Centre	(190)	(104)	(788)	(517)
Underwriting result	1,174	1,347	5,856	5,718
Pension	73	59	217	214
Financial result from the investment
portfolio	560	1,497	(651)	3,063
Other items	(113)	(53)	402	(196)
Profit/(loss) before tax expenses	1,694	2,850	5,824	8,799

Comments on the quarter

• Continued high premium growth
• Higher loss ratio, large losses and run-off gains
• Cost ratio continued to improve
• Investment returns reflected market conditions
  • o Q4'21 included appreciation of NOK 1.2 billion in the value of Oslo Areal's property assets

Strong operations

• High claims inflation will continue to be met with necessary pricing measures
• · Solid performance in Norway
  • o Maintained superior market position
  • o Effective pricing measures
• Moving forward on new core IT system in Denmark
• Continued good progress in Sweden
• Encouraging results from transformation programme in the Baltics

Staying ahead of claims inflation

Maintaining high retention in Norway

9.2 per cent premium growth - 8.4 per cent adjusted for currency effects

Premium development

Key drivers - premium development

• Private +6.5%, mainly price driven
• Commercial +10.5%, price and volume driven
• · Denmark +13.0%
  • o Positive 8.8% in local currency, volume and price driven
• · Sweden +1.5%
  • o Positive 5.3% in local currency, volume and price driven
• Baltics +9.5%
  • o Positive 5.4% in local currency, mainly price driven

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Record high profit for Pension

Profit and return

Assets under management

NOK bn

■Paid up policy ■Unit linked │■Other

Current bonds Bonds at amortised cost Other bonds (US/EUR IG, Sovereigns, EMD) High Yield bonds Convertible bonds Current equities PE funds Properties Other (incl. hedge funds and commodities)

Investment grade Investment grade (internal rating) Non-investment grade Non-investment grade (internal rating) Unrated

Proposed regular dividend NOK 8.25 per share

Strong track record of generating attractive shareholder returns

... supported by a strong capital position

Dividend policy

Gjensidige targets high and stable nominal dividends to its shareholders, and a pay-out ratio over time of at least 80 per cent of profit after tax. When determining the size of the dividend, the expected future capital need will be taken into account.

Over time, Gjensidige will also pay out excess capital.

Strong capital position

Eligible own funds

• Increased by operating Solvency II . earnings and result in free portfolio
• Adjusted for proposed dividend
• Minor reduction from acquisition of . Dansk Tandforsikring

Capital requirement

• Increased underwriting risk due to . premium growth, change in reinsurance programme and annual update of the internal model
• · Reduced market risk due to lower private and emerging market equity exposure

Moving ahead on operational targets

Metric	Status Q4 2022	Target 2025
Customer satisfaction	78	> 78, Group
Customer retention	90%	> 90%, Norway
	77%	> 85%, Outside Norway
Digitalisation index	11%	> +10% annually, Group
Digital claims reporting	77%	> 85%, Group
Automated claims processing	59%	> 70%, Norway

Strong customer retention in the three largest segments

· Private - Commercial - Denmark

Financial reporting according to fir and 17, from Q1 2020

Our strategy and priorities

Customer centric focus

Our priorities towards 2025

• Build on our strong and unique position in Norway
• Maintain capital discipline and attractive dividends
• Strengthen profitability and grow outside Norway

Concluding remarks

• · Solid results
• Focus on growth, strong operations and capital discipline
• Outlook remains good
  • o Expect continued strong underwriting results going forward
• Will continue to pay out attractive dividends to shareholders
  • o Board proposal for regular dividend of NOK 8.25 per share for 2022

Annual financial targets from 2023

Appendix

Roadshows and conferences post Q4 2022 results

Date	Location	Participants	Event	Arranged by
25 and 27 January	Oslo	CEO Geir Holmgren CFO Head of IR Mitra H. Negård IRO Marius M. Fjellbo	Roadshow	Gjensidige
26 January	London	CEO Geir Holmgren CFO Jostein Amdal Head of IR Mitra H. Negård	Roadshow	DNB
7 February	Oslo	CEO Geir Holmgren CFO Jostein Amdal Head of IR Mitra H. Negård	Roadshow	ABGSC
15 February	Frankfurt	CEO Geir Holmgren CFO Head of IR Mitra H. Negård	Roadshow	Carnegie

Covid- and weather effects, Q4 2021

Q4 2021	Group	Private	Commercial	Denmark	Sweden	Baltics
	Q4 2021	Q4 2021	Q4 2021	Q4 2021	Q4 2021	Q4 2021
Earned premiums	7,472	2,548	2,605	1,530	425	296
Loss ratio	67.6%	58.0%	71.6%	69.3%	81.2%	83.6%
Underlying frequency loss ratio	69.1%	61.6%	70.0%	71.4%	77.7%	88.3%
Covid - large loss						-
Covid - frequency	35	24	6	3	2	-
Covid total	35	24	6	3	2	-
Weather - large loss
Weather - frequency						-
Weather total						-
Covid effect on large loss	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Covid effect on underlying
frequency loss	0.5%	1.0%	0.2%	0.2%	0.5%	0.0%
Weather effect on large loss	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Weather effect on underlying frequency loss	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Loss ratio adjusted for weather and
covid	68.0%	59.0%	71.9%	69.5%	81.7%	83.6%
Underlying frequency loss ratio adjusted for weather and covid	69.5%	62.5%	70.2%	71.6%	78.2%	88.3%

Loss ratio Cost ratio

Loss ratio Cost ratio

Loss ratio Cost ratio

Loss ratio Cost ratio

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Large losses 4.6 percentage points - higher than expected

Large losses - reported vs. expected

ロExpected ■Reported

Large losses per segment

C = Corporate Centre. Large > NOK 10m. Veather related large losses are included Large bosses in excesso of NOK 30m per caimis charged to the Corporate Centre while up to NOX the segment in which the lage loss occurred. The Battics segment has, a retention level of EUR 0.5m. The Sweden segment has a retention level of NOK 10m.

NOK m

Large losses development

Large losses per segment - actual vs. expected

NOK m

■Expected ■Q4 2022

Run-off gains 4.4 percentage points - higher than planned

Run-off net

NOK m

□Planned ■Reported

Run-off net per segment

NOK m

Run-off % of

Run-off development

Quarterly underwriting results - seasonality in Nordic general insurance

1 Reported UW result for Q1 2016 was NOK 1,251m. Adjusted for a non-recurring income of NOK 477m related to the UW result was NOK 774m.

2) Reported UW result for Q3 2016 was NOK 712m. Adjusted for a non-recuring cost the UW result was NOK 832m.

ි Reported U.V. result for Q-2016 visel for a non-ecuring NOK 44m increase in provision for restructuring cast and NOK 23m provision for increased pay of tac the UV i essult

4) Reported UW result for Q3 2018 was NOK 573m. Adjusted for a non-recurring cost the UW result was NOK 653m.

5) Reported UW result for Q4 2018 was NOK 1,914m. Adjusted for the extra run-off gains of NOK 1.1bn the UW result was NOK 834m.

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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

• 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

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.

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Investment portfolio

Asset class	Investments, key elements1)	Benchmark
Match portfolio
Fixed income - short duration	Norwegian money market	BP Norwegian Government Duration 0.25 Index NOGOVD3M
Bonds at amortised cost	Government and corporate bonds	Yield provided in quarterly reports
Current bonds	Mortgage, sovereign and corporate bonds, investment grade bond funds and loan funds containing secured debt	IBOX COR 1-3 years QW5C index
Free portfolio
Fixed income - short duration	Norwegian money market	NBP Norwegian Government Duration 0.25 Index NOGOVD3M
Other bonds	IG bonds in internationally diversified funds externally managed and current bonds	Global Agg Corp LGCPTRUH index
High Yield bonds	Internationally diversified funds externally managed	BoAML Global HY HYDC index
Convertible bonds	Internationally diversified funds externally managed	Refinitiv Global Focus hedged Convertible UCBIFX02 Index
Current equities	Mainly internationally and domestic diversified funds externally managed	MSCIW NDDLWI Index
PE funds	Oil/ oil-service/ general (Norwegian and Nordic funds)	OSEBX index
Other	Miscellaneous

1) See quarterly report for a more detailed description.

Fixed income - short

Bonds at amortised cost

duration

Current bonds

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Credit and counterparty risk

Credit exposure

• 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	12.8	34.8	2.0	11.7
AA	3.0	8.0	4.5	25.7
র্ব	7.7	20.9	4.1	23.7
ввв	6.1	16.6	2.3	13.0
BB	0.0	0.1	0.3	1.6
B	0.1	0.3	0.2	1.0
CCC or lower	0.0	0.0	0.0	0.2
Internal rating1)	3.2	8.6	3.3	18.9
Unrated	3.9	10.6	0.7	4.2
Fixed income portfolio	36.8	100.0	17.4	100.0

Split - Counterparty	Match portfolio		Free portfolio
	NOK bn	%	NOK bn	%
Public sector	5.4	14.7	6.5	37.4
Bank/financial institutions	19.0	51.6	8.1	46.2
Corporates	12.4	33.7	2.9	16.5
Total	36.8	100.0	17.4	100.0

Capital generation year-to-date

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
Capital available	19.7	16.9	19.9	17.2	2.0
Capital requirement	11.0	10.0	8.7	7.6	1.4
Solvency ratio	179%	169%	230%	225%	143%

Figures as at 31.12.2022. The legal perspective is the regulatory approved version of the partial internal model. Solvency margins reflect best estimate reserves. 1) Own partial internal model is not validated.

Solvency II eligible own funds

Bridging the gap between IFRS equity and Solvency II capital

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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	19.7	19.9
Capital charge for non-life and health UW risk	10.4	7.8
Capital charge for life UW risk	1.7	1.7
Capital charge for market risk	4.8	4.3
Capital charge for counterparty risk	0.4	0.4
Diversification	(4.2)	(4.2)
Basic solvency capital requirement	13.2	10.1
Operational risk	1.1	1.1
Adjustments (loss-absorbing capacity of deferred tax)	(3.2)	(2.5)
Solvency capital requirement (SCR)	11.0	8.7
Surplus	8.7	11.3
Solvency ratio	179%	230%

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 31.12.2022.

1 Most of non-life and Health underwriting risk and heath insurance business is internally modelled. The stardad formula is used for other risks

2) Own partial internal model is not validated.

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Solvency II sensitivities for the approved partial internal model

Subordinated debt capacity

Gjensidige Forsikring Group

Principles for capacity

		12	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 1.7-2.2bn
  • o Utilised Tier 1 debt capacity: NOK 1.2bn
• · Tier 2 remaining capacity is 0.2bn
  • o Utilised sub debt: NOK 2.3bn
  • o Utilised natural perils fund: NOK 3.0bn

Annualised return on equity 19.3 per cent

Equity (NOK m)

Annualised return on equity (%)

Market leader in Norway

Market share - Private

Market shares Denmark

Growth opportunities outside Norway

Market shares Sweden

Market shares Baltics

rand	■ Gjensidige	■Lansforsäkringar	■ Gjensidige	Vienna
		■Trygg Hansa	■PZU	Ergo
	Folksam	■ Other		■ Other

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Others

Gjensidige Pensjonsforsikring - Paid up policies a small part of liabilities

Share of paid up policies 1)

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AUM defined contribution and paid up policies

Bonds at amortised cost Property exposure Fixed income - short duration Other financial investments Equity funds

Bonds at amortised cost Property exposure Fixed income - short duration Other financial investments Equity funds

Appendix

NOK bn

Gjensidige Pensjonsforsikring

- Well positioned for long-term growth in the Norwegian defined contribution pension market

Annual contribution (DC) and premium (DB) 1)

Ownership

10 largest shareholders 1)

No	Shareholder	Stake (%)
1	Gjensidigestiftelsen	62.24
2	Folketrygdfondet	3.76
3	BlackRock Inc	3.23
4	Deutsche Bank	3.06
5	Scotia Bank	1.37
6	The Vanguard Group, Inc	1.16
7	Nordea	1.02
8	Danske Bank	1.00
9	State Street Corporation	0.99
10	Storebrand Investments	0.91
	Total 10 largest	78.73

Geographical distribution of shares 2)

Gjensidigestiftelsen's 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

Disclaimer

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Investor Relations

Mitra Hagen Negård Head of Investor Relations

Mitra-Hagen.Negard@gjensidige.no Mobile: (+47) 957 93 631

Marius Michelsen Fjellbo Investor Relations Officer

Marius-michelsen.fjellbo@gjensidige.no Mobile: (+47) 995 67 593

Address

Schweigaards gate 21, PO Box 700 Sentrum, 0106 Oslo, Norway gjensidige.no/ir