Gjensidige Forsikring ASA

Earnings Release • Oct 21, 2022

Solid underwriting result, financial result significantly impacted by market turmoil

Solid underwriting result, financial result significantly impacted by market turmoil

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.

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

cost control resulted in the highest quarterly underwriting result in the

Group's history, when adjusted for run-off gains. The investment portfolio was

significantly hit by the development in the financial markets. The outlook for

Gjensidige's underwriting results remains good.

Gjensidige Forsikring Group recorded a profit before tax of NOK 1,485.5 million

(2,022.0) for the quarter. The profit after tax was NOK 1,105.0 million

(1,495.1) and the corresponding earnings per share were NOK 2.21 (2.99). The

profit from general insurance operations measured by the underwriting result was

NOK 1,908.8 million (1,804.0), corresponding to a combined ratio of 76.3 (76.0).

- We have delivered a very strong quarterly underwriting result. We are

confident that we will continue to stay ahead of claims inflation. Together with

our efficient operations, strong product offering and resilient markets, this

should bode well for continued solid results and attractive returns. But of

course, the most important drivers are our people and our culture. These are key

prerequisites for our success, says CEO Helge Leiro Baastad.

Earned premiums from general insurance increased by 7.1 per cent to NOK 8,046.8

million (7,516.1) in the quarter. Measured in local currency, premiums increased

by 8.2 per cent. Earned premiums increased due to solid renewals, effective and

differentiated pricing measures and volume growth.

Premium growth, partly offset by higher large losses and lower run-off gains,

drove the improvement in the underwriting result. Adjusted for the positive

Covid-19 impact on claims in the third quarter 2021, the underlying frequency

loss ratio improved by 0.8 percentage points. Commercial and the Baltics were

the main contributors to the improvement.

The Pension segment generated a lower profit for the period, driven by reduced

income as a result of the introduction of individual pension account last year

and lower financial income. The number of pension members increased and

contributed to the rise in insurance income.

The financial result for the quarter was minus NOK 328.1 million (207.5), which

corresponds to a return on total assets of minus 0.6 per cent (0.3). The result

was negatively impacted by higher interest rates, decline in the equity markets

and higher credit spreads.

Year-to-date the Group recorded a profit before tax of NOK 4,129.7 million

(5,949.3). The profit from general insurance operations measured by the

underwriting result was NOK 4,681.5 million (4,370.9), corresponding to a

combined ratio of 80.0 (79.8). The profit after tax was NOK 3,234.3 million

(4,654.7). Earnings per share amounted to NOK 6.47 (9.31). The profit includes a

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

under Other items. The increase in the underwriting result was driven by 8.0 per

cent growth in earned premiums and an improved underlying frequency loss ratio,

partly offset by higher large losses and lower run-off gains. Earned premiums

rose by 8.9 per cent measured in local currency. Adjusted for the effects of the

weather and Covid-19 claims in the same period last year, the underlying

frequency loss ratio improved by 0.8 percentage points.

The Pension segment recorded a lower profit due to reduced income as a result of

the introduction of individual pension accounts last year, higher operating

expenses and lower financial income.

The financial result for the period was minus NOK 1,211.0 million (1,565.7),

which corresponds to a return on total assets of minus 2.1 per cent (2.6). The

rise in interest rates in 2022, combined 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.

Highlights third quarter 2022 (third quarter 2021)

· Profit/(loss) before tax: NOK 1,485.5 million (2,022.0)

· Earnings per share: NOK 2.21 (2.99)

· Earned premiums: NOK 8,046.8 million (7,516.1)

· Underwriting result: NOK 1,908.8 million (1,804.0)

· Combined ratio: 76.3 (76.0)

· Cost ratio: 12.9 (13.6)

· Financial result: NOK minus 328.1 million (207.5)

Highlights year-to-date 2022 (2021)

· Profit/(loss) before tax: NOK 4,129.7 million (5,949.3)

· Earnings per share: NOK 6.47 (9.31)

· Earned premiums: NOK 23,395.8 million (21,664.8)

· Underwriting result: NOK 4,681.5 million (4,370.9)

· Combined ratio: 80.0 (79.8)

· Cost ratio: 13.6 (14.1)

· Financial result: NOK minus 1,211.0 million (1,565.7)

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 Gjensidige Forsikring Group Q3 2022.

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

Forsikring ASA.

Date and time of publication: 07:00, 21.10.2022

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 3,800 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 30 billion in 2021, while total

assets were NOK 130 billion.