Gjensidige Forsikring ASA

Investor Presentation • Oct 21, 2022

Q3 2022 Interim presentation

21 October 2022

Quarterly update

Record high underwriting result, financial result impacted by continued market turmoil

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Loss ratio Cost ratio

Strong operations

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Moving forward to deliver on our sustainability goals

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Financial Performance

Record high quarterly UW-result, financial result hit by market turbulence

NOK m	Q3 2022		Q3 2021 YTD 2022 YTD 2021
Private	827	826	2,308	2,227
Commercial	940	712	2,303	1,731
Denmark	224	299	641	765
Sweden	51	83	88	101
Baltics	(2)	(26)	(61)	(40)
Corporate Centre	(131)	(90)	(598)	(413)
Underwriting result	1,909	1,804	4,681	4,371
Pension	46	55	144	155
Financial result from the investment portfolio	(328)	207	(1,211)	1,566
Other items	(141)	(45)	515	(143)
Profit/(loss) before tax expenses	1,486	2,022	4,130	5,949

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7.1 per cent premium growth - 8.2 per cent adjusted for currency effects

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Higher large losses and run-off gains, stable higher underlying frequency loss ratio

Q3 2021	Change in large losses (pp)	Change in run off (pp)	Change in underlying frequency loss ratio (pp)	Q3 2022

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Continued good cost control – cost ratio 12.9 per cent

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Good profit for Pension operation

Paid up policy Unit linked Other

Investment return of minus 0.6 per cent, impacted by market turmoil

-5% -3% -1% 1% 3% 5% 7% 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

Strong capital position

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Moving ahead on operational targets

Metric	Status Q3 2022	Target 2025
Customer satisfaction	79	$>$ 78, Group
	90%	> 90%, Norway
Customer retention	77%	> 85%, Outside Norway
Digitalisation index	10%	> +10% annually, Group
Digital claims reporting	77%	> 85%, Group
Automated claims processing	58%	> 70%, Norway

Strong value creation since IPO driven by solid growth, underwriting and cost discipline

NOK bn

Unique strengths provide competitive advantage

Brand awareness and strength	Quality mark in a competitive and digitalised environment
Loyal customers	Low acquisition costs and high-quality portfolio
Customer dividend model	Building loyalty and preference in Norway
Technology platform and analytical capabilities	Investing in technology and competency key to analysing Big Data and applying insight

Hard-to-copy position based on our people and culture

1 among financial institutions

Stable and high engagement score

Our priorities towards 2025

Build on our strong and unique position in Norway

Strengthen profitability and grow outside Norway

Maintain capital discipline and attractive dividends

Customer insights and relevance, supported by our customer dividend model

Efficient cost base, supported by our operational excellence in distribution and claims handling

Solid capitalisation, providing ample financial flexibility

Concluding remarks

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Appendix

Roadshows and conferences post Q3 2022 results

Date	Location	Participants	Event	Arranged by
21 October	Oslo	CEO Helge L. Baastad CFO Jostein Amdal Head of IR Mitra H. Negård	Roadshow	SEB
24 October	London	CEO Helge L. Baastad CFO Jostein Amdal Head of IR Mitra H. Negård	Roadshow	DNB
8 November	Frankfurt	CFO Jostein Amdal Head of IR Mitra H. Negård	Roadshow	Carnegie
10 November	Helsinki	CFO Jostein Amdal Head of IR Mitra H. Negård	Roadshow	Pareto
10 November	Stockholm	CFO Jostein Amdal Head of IR Mitra H. Negård	Roadshow	Pareto
16 November		CFO Jostein Amdal Head of IR Mitra H. Negård	Nordic Financials Virtual Trip	Berenberg

Covid- and weather effects, Q3 2021

Q3 2021	Group	Private	Commercial	Denmark	Sweden	Baltics
	Q3 2021	Q3 2021	Q3 2021	Q3 2021	Q3 2021	Q3 2021
Earned premiums	7,516	2,631	2,579	1,550	417	302
Loss ratio	62.4%	55.6%	63.6%	67.1%	63.1%	79.7%
Underlying frequency loss ratio	65.1%	59.6%	65.8%	71.2%	63.0%	84.6%
Covid - large loss	$\sim$	$\overline{\phantom{a}}$	$\sim$	$\overline{\phantom{a}}$	$\sim$	$\overline{\phantom{a}}$
Covid - frequency	64	32	9	21	3
Covid total	64	32	9	21	3 1
Covid effect on large loss	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Covid effect on underlying
frequency loss	0.9%	1.2%	0.3%	1.4%	0.7%	0.0%
Loss ratio adjusted for
covid	63.2%	56.9%	63.9%	68.5%	63.8%	79.7%
Underlying frequency loss ratio
adjusted for covid	65.9%	60.8%	66.1%	72.5%	63.7%	84.6%

General insurance – cost ratio and loss ratio per segment

Loss ratio Cost ratio

General insurance – cost ratio and loss ratio per segment

Loss ratio Cost ratio

Loss ratio Cost ratio

Loss ratio Cost ratio

Effect of discounting of claims provisions

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Large losses 2.5 percentage points – lower than expected

Expected Reported

Q3 2021 Q3 2022

Large losses development

Expected Q3 2022

Run-off gains 4.2 percentage points - higher than planned

Run-off net

Run-off net per segment

Run-off development

Expected average annual run-off gains of ~4 pp (~NOK 1bn) through 2022

Run-off % of earned premium

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 pension plans, the UW result was NOK 774m.

²⁾ Reported UW result for Q3 2016 was NOK 712m. Adjusted for a non-recurring NOK 120m restructuring cost the UW result was NOK 832m.

3) Reported UW result for Q4 2016 was NOK 700m. Adjusted for a non-recurring NOK 44m increase in provision for restructuring cost and NOK 23m provision for increased pay-roll tac the UW result was NOK 767m

4) Reported UW result for Q3 2018 was NOK 573m. Adjusted for a non-recurring NOK 80m restructuring 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

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Handling of natural perils claims

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Reinsurance – overview valid as from 2022

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Practical example, natural perils claim in Norway

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Investment strategy supporting high and stable nominal dividends

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Investment portfolio

Asset class	Investments, key elements 1)	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

Asset allocation – as at 30.9.2022

Fixed income - short

Bonds at amortised cost

duration

Current bonds

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Credit and counterparty risk

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Split - Rating	Match portfolio		Free portfolio
	NOK bn	$\%$	NOK bn	$\%$
AAA	13.4	35.0	1.6	10.5
AA	2.7	7.1	3.8	25.0
A	6.9	18.1	3.3	22.1
BBB	6.4	16.8	2.3	15.6
BB	0.2	0.5	0.3	2.2
$\mathsf B$	0.8	2.1	0.3	1.9
CCC or lower	0.1	0.1	0.1	0.4
Internal rating 1)	3.3	8.6	2.6	17.6
Unrated	4.4	11.6	0.7	4.6
Fixed income portfolio	38.2	100.0	15.0	100.0

Split - Counterparty	Match portfolio		Free portfolio
	NOK bn	%	NOK bn	%
Public sector	5.5	14.4	4.8	32.0
Bank/financial institutions	18.9	49.5	7.1	47.6
Corporates	13.8	36.1	3.1	20.5
Total	38.2	100.0	15.0	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	20.3	17.6	20.4	17.8	2.3
Capital requirement	10.7	9.7	8.5	7.5	1.4
Solvency ratio	190%	181%	241%	238%	170%

Solvency II eligible own funds

Bridging the gap between IFRS equity and Solvency II capital

Figures as at 30.09.2022. GPF = Gjensidige Pensjonsforsikring AS. Deferred tax: All differences in valuation of assets and liabilities are adjusted for tax. Tax is assumed on the security provision. Miscellaneous: Main effects are related to the guarantee scheme provision. Assumed dividend of 80% of profit.

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	20.3	20.4
Capital charge for non-life and health UW risk	9.8	7.5
Capital charge for life UW risk	1.6	1.6
Capital charge for market risk	5.0	4.7
Capital charge for counterparty risk	0.4	0.4
Diversification	(4.2)	(4.5)
Basic solvency capital requirement	12.6	9.7
Operational risk	1.0	1.0
Adjustments (loss-absorbing capacity of deferred tax)	(3.0)	(2.3)
Solvency capital requirement (SCR)	10.7	8.5
Surplus	9.6	11.9
Solvency ratio	190%	241%

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Solvency II sensitivities for the approved partial internal model

Subordinated debt capacity

	Т1	TЭ	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

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Annualised return on equity 18.4 per cent

Equity (NOK m)

Annualised return on equity (%)

Market leader in Norway

Market share - Commercial

Market share - Private

Growth opportunities outside Norway

Other

Topdanmark Alm.Brand Codan If Gjensidige Lansforsäkringar Trygg Hansa If Folksam Other Gjensidige Vienna PZU Ergo If Other

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

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Others

Gjensidige Pensjonsforsikring - Paid up policies a small part of liabilities

Share of paid up policies 1)

Share of paid up policies - market total Share of paid up policies - GPF

AUM defined contribution and paid up policies

Source: Finance Norway. ¹⁾ Compound annual growth rate 2010 - 2021.

Gjensidige Pensjonsforsikring - Balanced group policy portfolio

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

Appendix

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

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

Ownership

No	Shareholder	Stake (%)
$\mathbf{1}$	Gjensidigestiftelsen	62.24
$\overline{2}$	Folketrygdfondet	3.71
3	BlackRock Inc	3.11
4	Deutsche Bank	3.05
5	Nordea	1.39
6	Scotia Bank	1.37
7	The Vanguard Group, Inc.	1.15
8	Danske Bank	0.93
9	State Street Corporation	0.87
10	Storebrand Investments	0.87
	Total 10 largest	78.69

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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 informatio 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 a 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.

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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