Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271

Integrated annual report 2021 We are Gjensidige

Chapter 1 - We are Gjensidige

Content

Chapter 1 - We are Gjensidige	2
Chapte r1 - About this report	3
Chapter 1 - The past year	4
Chapter 1 - Key figures and alternative
performance measures	6
Chapter 1 - Key figures 2021	8
Chapter 1 - Letter from the Chair	10
Chapter 1 - Letter from the CEO	12
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136

Appendix 2021 271

Chapter 1

We are Gjensidige

It all started with a sense of community. If there was a fire at the neighbouring farm, it could be rebuilt using the contributions people paid to the fire insurer – together.

Today, more than 200 years later, this principle is more important than ever. No one lives for himself alone. Everyone has to do their bit. For the environment, for balance, for security, for each other. This is who we are.

We are Gjensidige

Chapter 1 - We are Gjensidige	2
Chapte r1 - About this report	3
Chapter 1 - The past year	4
Chapter 1 - Key figures and alternative
performance measures	6
Chapter 1 - Key figures 2021	8
Chapter 1 - Letter from the Chair	10
Chapter 1 - Letter from the CEO	12
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136

Appendix 2021 271

About this report

The 2021 annual report is an integrated report based on the framework of IIRC – the International Integrated Reporting Council. It has been prepared in accordance with the Global Reporting Initiative's GRI standards and Euronext's guidelines on ESG reporting from January 2020. In the report, you can read about how we work to create value in the short and long term for our customers, owners, employees, suppliers and society at large, and how sustainability is integrated in our operations. We have chosen to use the integrated reporting framework because we believe it gives a good presentation of Gjensidige and how we create added value. Our external auditor has submitted an independent assurance statement concerning the integrated report for 2021.

The requirements for the Board of Directors' report are covered in different chapters of the integrated report. For a complete overview, see 'Appendix 1 – GRI checklist and Board of Directors' report'.

In the event of discrepancies, the Norwegian version of the annual report takes precedence.

The report is published in digital format only, and is available on our website.

Chapter 1 - We are Gjensidige	2
Chapte r1 - About this report	3
Chapter 1 - The past year	4
Chapter 1 - Key figures and alternative
performance measures	6
Chapter 1 - Key figures 2021	8
Chapter 1 - Letter from the Chair	10
Chapter 1 - Letter from the CEO	12
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

The past year

Chapter 1 - We are Gjensidige	2
Chapte r1 - About this report	3
Chapter 1 - The past year	4
Chapter 1 - Key figures and alternative
performance measures	6
Chapter 1 - Key figures 2021	8
Chapter 1 - Letter from the Chair	10
Chapter 1 - Letter from the CEO	12
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

The past year

New core system launched in Denmark

The new core system IDIT was gradually taken into use for several private insurance products in Denmark over the second half of the year. The system will provide better opportunities for the business segments to share best practices, to develop new products and price models more quickly, and will make it easier to form ecosystems with other players. The system will be rolled out in Sweden next and then in Norway.

Acquisition of Nordeuropa Forsikring

Gjensidige acquired the Swedish insurance agent Nordeuropa, which will strengthen Gjensidige's position in Sweden, especially in the Commercial segment. The company holds a particularly strong position with insurance brokers.

Issuing and redemption of bonds

Gjensidige issued two bonds in the total amount of NOK 2.4 billion. Both form part of the capital base under the Solvency II regulations. One of the bonds is perpetual, while the other has a maturity of 30 years. The bonds were issued based on a wish to utilise our borrowing capacity and to ensure an optimal capital structure. Gjensidige has also redeemed two bond loans in the total amount of NOK 1.3 billion during the year.

Schysst car subscription service

In partnership with the car subscription platform Imove and car dealer Hedin Bil, we launched a car subscription service in Sweden. The service, called Schysst, is a new mobility solution aimed at customers looking for simple, flexible access to a car. In return for a monthly fee, customers gain continuous access to a car and the option of switching cars when needed.

Acquisition of NEM Forsikring in Denmark

Nem Forsikring is a Danish insurance company with a history that goes back more than 100 years. Its activities are largely based in Jylland. At the time of acquisition, the company had a portfolio worth approximately DKK 200 million. The company's business model is based on the sale of private insurance policies in close cooperation with a number of enterprises and organisations.

Integrated services – toll road companies

Gjensidige acquired two toll service providers from Vegamot and Ferde, respectively. The two companies collect road tolls from car users with an Autopass agreement and have a total of nearly 800,000 customers. The acquisitions are part of Gjensidige's strategy to offer a wider range of services to car owners.

Introduced Ecolabel houses

In the event of a total damage of a private home for which Gjensidige controls the rebuilding process, customers can choose to build an Ecolabel house. The initiative is part of the effort to achieve our ambitious sustainability goals. Ecolabel homes are built using methods that leave a small climate footprint.

Sustainable claims settlements

We changed the rules for condemnation of cars to increase the number of cars that are repaired rather than condemnated. Previously, cars were condemnated if the damage made up 60 per cent of the car's value. Now, the damage must amount to at least 80 per cent of the value in order for a car to be condemnated. The initiative was quickly

followed up by other companies, and the new threshold became the industry standard. In the annual IPSOS survey, we had the best reputation in the financial sector.

Young people's mental health a focus of concern for Gjensidige and Gjensidigestiftelsen

Gjensidige and Gjensidigestiftelsen launched a joint initiative to promote projects that have a positive impact on young people's mental health. As part of this effort, Gjensidige entered into partnerships with the organisations MOT and Ungt Entreprenørskap, which promote mental health and life skills at school and in sports.

Capital Markets Day

Gjensidige's Capital Markets Day was held on 24 November, at which investors and other stakeholders were given a comprehensive presentation of the Company's strategy and updated goals. The event took place online.

Acquisition of Falck roadside assistance

Gjensidige agreed to acquire Falck's roadside assistance in Norway, Sweden, Finland, Estonia and Lithuania. The business had 280,000 assignments in 2020. The acquisition is in line with Gjensidige's strategy to take a holistic approach to solving the customers' needs and complements Gjensidige's products and services in the Nordic mobility space.

Sale of Oslo Areal

The commercial real estate developer Oslo Areal, in which Gjensidige owned half of the shares, was sold to Entra for approximately NOK 13.55 billion. The purpose of the sale was to create further room for Oslo Areal's strategic development.

Defined as an alternative performance measure (APM). APMs are described at www. gjensidige.no/reporting in a document named APMs Gjensidige Forsikring Group 2021 2. Based on approved partial internal model in 2018, 2019, 2020 and 2021, while 2017 is based on the regulatory capital requirements, i.e. the standard formula.

Content

Chapter 1 - We are Gjensidige	2
Chapte r1 - About this report	3
Chapter 1 - The past year	4
Chapter 1 - Key figures and alternative
performance measures	6
Chapter 1 - Key figures 2021	8
Chapter 1 - Letter from the Chair	10
Chapter 1 - Letter from the CEO	12
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

Key figures and alternative performance measures

Underwriting result general insurance 1

NOK Billion

Earned premiums general insurance

Combined ratio general insurance 1

Solvency margin 2

2017 2018 2019 2020 2021

Market value on Oslo Stock Exchange at 31.12

NOK Billion

Total return 1 NOK billion

Total return 1	Last year	Last two years	Since IPO 10.12.2010
Gjensidige Forsikring	19.6 %	32.4 %	675.7 %
Nordic Non-life ²	11.6 %	15.0 %	515.5 %

Dividend per share	Based on profit/ loss for the year	Distribution of excess capital
2021 3	7.70
2020	7.40	6.40
2019	7.25	5.00
2018	7.10
2017	7.10

Dividend reinvested.
Weighted average in local currency for Tryg, Topdanmark, Sampo and Alm. Brand.

3 Proposed.

Chapter 1 - We are Gjensidige
Chapte r1 - About this report	3
Chapter 1 - The past year	4
Chapter 1 - Key figures and alternative
performance measures	6
Chapter 1 - Key figures 2021	8
Chapter 1 - Letter from the Chair	10
Chapter 1 - Letter from the CEO	12
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige
Chapter 4 - Financial result	11
Financial statement including notes 2021
Appendix 2021	271

Chapter 1 - We are Gjensidige	2
Chapte r1 - About this report	3
Chapter 1 - The past year	4
Chapter 1 - Key figures and alternative
performance measures	6
Chapter 1 - Key figures 2021	8
Chapter 1 - Letter from the Chair	10
Chapter 1 - Letter from the CEO	12
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result
Financial statement including notes 2021
Appendix 2021	271

Key indicators sustainability
The climate and environment





Social
Our employees


Gender distribution men/women in executive positions (level 1 & 2) 14





Customers

Customer retention 6

	Unit	2021	2020	2019	2018	2017
Key indicators sustainability
The climate and environment
CO2-emissions, scope 1 and 2 3, 11	Tonnes CO2e	797	1846	5123	5 426	5 354
CO2-emissions, scope 3 travel and transport 4, 11	Tonnes CO2e	355	492	2 009	1 475
CO2 emissions own operations per employee	Tonnes CO2e/employees (FTE)	0.3	0.6	1.9
CO2-emissions, scope 3 claims processes 4, 11	Tonnes CO2e	30 581	32 036	41 522
CO2-intensity claims processes 5	Tonnes CO2e/NOK Millions	1.1	1.2	1.6
Social
Our employees
No of employees in the Group	Persons	3 710	3 676	3 674	3 893	3 834
Gender distribution men/women 13	Share	49/51	48/52	53/47	52/48	52/48
Gender distribution men/women in executive positions (level 1 & 2) 14	Share	70/30	66/34	70/30	69/31	73/27
Engagement score all employees	Score 1-10	8.3 2	8.5	7.9
Employees' perceived diversity	Score 1-10	9.2	9.1	8.8
Total course hours for all employees 1	Hours	89 329	56 131	36 785	41 874	48 720
Turnover	Per cent	8.1	7.9	10.9	12.2	10.6
Sickness absence	Per cent	3.1	3.7	3.9	3.8	3.9
Customers
Customer satisfaction	Per cent	78.8	78.5
Customer retention 6
Norway	Per cent	90.6	90.4
Outside Norway	Per cent	79.0	78.9
Digital customers 7	Per cent	83.0	80.0	77.0	73.0	70.0
Automated claims processing 8	Per cent	22.0	17.0	15.0
Digital claims settlements 8	Per cent	80.1	79.8	73.0	63.0

Key figures 2021

Chapter 1 - We are Gjensidige	2
Chapte r1 - About this report	3
Chapter 1 - The past year	4
Chapter 1 - Key figures and alternative
performance measures	6
Chapter 1 - Key figures 2021	8
Chapter 1 - Letter from the Chair	10
Chapter 1 - Letter from the CEO	12
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

	Unit	2021	2020	2019
Socially responsible investments
Carbon intensity company corporate bonds (WACI) 12	Intensity (comp. to index) 9	9.0 (26.1)
Carbon intensity listed equities (WACI) 12	Intensity (comp. to index) 9		10.7 (15.2) 11.1 (17.8)
Carbon footprint property portfolio 12	Intensity 10	8.1	7.4	8.5

Socially responsible investments
Carbon intensity company corporate bonds (WACI) 12	Intensity (comp. to index) 9	9.0 (26.1)
Carbon intensity listed equities (WACI) 12	Intensity (comp. to index) 9	10.7 (15.2) 11.1 (17.8)
Carbon footprint property portfolio 12	Intensity 10	8.1
1. Changed method of calculation from course days to cours hours, from 2020. One course days equ. 7 hours. 2. Among top 10 pct. within finance in Europe, among Peakon's customers. 3. Scope 1: Direct emissions from company cars. Scope 2: Emissions from energy consumption see chapter "Climate and environment". 4. Scope 3: See chapter "Climate and environment" 5. CO2-intensity: CO2-emissions in tonnes from claims handling processes, divided by earned premiums in NOK million from general insurance. 6. The share of customers still being customers after one year. 7. Share of digital customers, segment Private, Norway. For the remaining segments targets are set from 2022.

The share of our customer contact through digital platforms, in claims processes.
Tonnes CO2e per NOK Millions of sales. Tonnes of CO2e per NOK 1 mill. in sales revenue. Figures employed are as of September 30, and indicate weighted average carbon intensity (WACI). Scope 1-2.
Kg of CO2e per square metre. Scope 1-3.
See chapter 'Climate and environment' for an explanation. 12. See chapter 'Responsible investments' for an explanation.
2021 and 2020 group figures, 2019-2017 ex Baltics.
Numbers excl. Baltics.

Annual report 2021 | 10

Chapter 1 - We are Gjensidige

Content

Chapter 1 - We are Gjensidige	2
Chapte r1 - About this report	3
Chapter 1 - The past year	4
Chapter 1 - Key figures and alternative
performance measures	6
Chapter 1 - Key figures 2021	8
Chapter 1 - Letter from the Chair	10
Chapter 1 - Letter from the CEO	12
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

Kapittel 1 – Vi er gjensidige z

Letter from the Chair

Gjensidige had a very strong year in 2021

Gisele Marchand Chairman of the board

Content

Chapter 1 - We are Gjensidige	2
Chapte r1 - About this report	3
Chapter 1 - The past year	4
Chapter 1 - Key figures and alternative
performance measures	6
Chapter 1 - Key figures 2021	8
Chapter 1 - Letter from the Chair	10
Chapter 1 - Letter from the CEO	12
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

People, the environment and value creation

Gjensidige saw strong development in 2021, and our efforts to develop the Company's competitiveness and sustainability have continued unabated. Premium income increased markedly, the underwriting result was stronger than ever, customer satisfaction reached new record levels, and employee satisfaction increased from an already high level.

People

Gjensidige's social mission is to help its customers lead safe and problem-free lives. Safety and security are among our most basic needs, for which there will always be demand. Our task in the years ahead is to meet this need in the way customers prefer, and to identify new business opportunities related thereto.

There are several trends emerging that create new opportunities – and threats. The pandemic will continue to impact the world, although the acute phase seems to be over in the markets Gjensidige operates in. The population continues to age in all our markets, and they lead more urban lives than before. Poor mental health is an increasing problem that is climbing the agenda. The climate is changing, creating both new risks of harm and concern about the future. Rapid technological development is leading to changes in customer expectations and behaviour. Gjensidige's approach to new trends will be based on customer orientation, a key element of the company culture that permeates all product and service development.

Customer orientation is contingent on motivated, knowledgeable employees who enjoy working together and bring out the best in one another. Cultivation of the company culture is therefore a key part of Gjensidige's competitive advantage. Going forward, contact with customers will increasingly take place through digital channels, which places even greater demands on a deep understanding of customer orientation. Through insightful use of technology, Gjensidige will

become a problem-solver for customers that not only helps them to lead safe lives, but problem-free, sustainable lives. High priority will be given to investments in industry-leading technology that can help Gjensidige to take advantage of the large amount of data compiled through customer contact and history information.

The environment

Gjensidige became climate neutral in 2020 by purchasing carbon offsets that compensate for the Company's emissions. Constant efforts are made to reduce greenhouse gas emissions, and sustainability is increasingly integrated in all parts of the business.

Gjensidige has also developed climate accounts that show emissions resulting from the claims settlement process. The accounts are continuously being developed and will form the basis for identifying measures that can reduce emissions in the supply chain.

The EU taxonomy for sustainable economic activities instructs insurance companies to report how their activities contribute to climate adaptation, and the extent to which they contribute to climate change. Combined with reporting procedures Gjensidige has developed by itself, in terms of both risks and greenhouse gas (GHG) emissions, this will help us to identify opportunities for sustainable operations and sustainable solutions for our customers.

Value creation

Gjensidige delivered a very strong result in 2021, and achieved all targets set by the Board. The ambition to continue delivering strong results is clear, and ambitious but realistic targets have been adopted. I have great faith in the Company's ability to meet the Board's expectations.

Dividend

One of Gjensidige's most important obligations to its owners is to pay stable, high dividends. In 2021, the Company paid NOK 7.40 per share in ordinary dividend, and NOK 6.40 per share based on excess capital – in total NOK 6.9 billion. As a result of Gjensidige's special relationship with its customers through Gjensidigestiftelsen, a large part of the dividend went to the customers as customer dividend. The Board has proposed a dividend of NOK 7.70 per share, corresponding to NOK 3.85 billion, based on the profit performance in 2021.

A strong year

Gjensidige had a very strong year in 2021. In recognition of the employees' efforts through the year, and the results achieved, the Board decided to pay a collective bonus of NOK 26 200 to each employee.

Annual report 2021 | 12

Kapittel 1 – Vi er gjensidige

Content

Chapter 1 - We are Gjensidige	2
Chapte r1 - About this report	3
Chapter 1 - The past year	4
Chapter 1 - Key figures and alternative
performance measures	6
Chapter 1 - Key figures 2021	8
Chapter 1 - Letter from the Chair	10
Chapter 1 - Letter from the CEO	12
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

Letter from the CEO

We are well equipped to create profitable growth and contribute to a more sustainable society.

Chapter 1 - We are Gjensidige	2
Chapte r1 - About this report	3
Chapter 1 - The past year	4
Chapter 1 - Key figures and alternative
performance measures	6
Chapter 1 - Key figures 2021	8
Chapter 1 - Letter from the Chair	10
Chapter 1 - Letter from the CEO	12
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

A very good year

Gjensidige achieved very good results in 2021. The underwriting result of NOK 5.7 billion was the best we have ever achieved, excluding run-off gains. I am particularly pleased that the result reflects a good performance in practically all parts of the business, despite the fact that the pandemic strongly affected our operations also in 2021. Higher customer satisfaction and employee engagement than ever is testimony to an organisation with a strong ability to adapt.

The result of high quality

Premium income increased by 7.3 per cent, both because we attracted more customers and because we implemented market-based price increases. We had good control of claims incurred, despite extraordinary price increases on a range of materials.

Like the year before, the pandemic contributed to lower claims incurred in 2021 than in a normal year, as a result of less travel abroad and less use of cars. The contribution was not decisive to the results achieved, however. We had good control of operating expenses, and we are among the most cost-effective operators in the industry.

Progress outside Norway

In Norway, we consolidated our position as market leader in general insurance, and increased our market shares. I would like to underline that higher market shares is not a priority for us. The increase must therefore be seen as the result of a strong brand, attractive products, correct pricing, satisfied customers and, not least, a highly competent and motivated sales force.

In Denmark, we continued to improve our results according to plan and achieved good profitability. I sense strong enthusiasm in the Danish organisation, and willingness to implement the measures needed to build a robust business with the ability to grow in the Danish market.

In Sweden, we saw considerable improvement from previous years, even if we have some way to go before profitability is back at a sa-

tisfactory level. Powerful measures have been taken to create a new business model adapted to our size in the Swedish market. I am convinced that the plans we have made will be effectively implemented, and that this work will pay off.

Our results in the Baltics were not satisfactory. Over several years, we have made considerable investments in the Baltic part of the business to create a platform for profitable growth. Although it has taken longer than expected, there are signs that the investments are starting to pay off, and I expect to see better results going forward.

Our pension operations in Norway continue to grow, and profitability is good. The organisation is small, enthusiastic and very cost-effective and is becoming an increasingly important supplement to our general insurance business. We see the advantages of being a complete supplier, especially in the commercial market.

New initiatives

We implemented a number of measures to strengthen customer services also in 2021. We have developed a wide range of digital services that, in various ways, help our customers to lead easier lives. These services make being a customer of Gjensidige attractive.

As part of the development of these services, we agreed to buy two companies that collect road tolls on Norwegian roads. This is a new and exciting area for us, which, with time, may help to create an ecosystem of services for our customers.

Cost efficiency is always high on our agenda. Targeted efforts over many years of digitalisation and standardisation increasingly create opportunities for automation and rationalisation of processes.

Our focus on sustainability is creating more visible results. In 2021, we changed the rules for scrapping cars, so that more cars will be repaired rather than recycled. This makes an important contribution towards the circular economy and reduced GHG emissions.

Helge Leiro Baastad

What we learned from the pandemic

The pandemic again placed restrictions on our work on organisational and employee development. It is obvious that the pandemic has led to lasting changes in how we work. Like everyone else, we have made arrangements so that our employees can work elsewhere than in the office. At the same time, we have upgraded our offices to make it attractive for people to come and work there. Even though we will work in different ways than before, the development of our company culture will still be a key factor in our competitiveness, and it requires us to come together in both formal and informal contexts.

New goals motivate

In 2021, the Board adopted new financial targets that were communicated at our Capital Markets Day on 24 November. The targets are ambitious but realistic, and I am certain that we will manage to achieve them, thereby continuing to create added value for our customers, shareholders and society at large.

We are entering 2022 with a strong, competent and hungry organisation that is well equipped to create profitable growth and contribute to a more sustainable society

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136

Appendix 2021 271

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136

Appendix 2021 271

Mission and vision

Our goals are based on a desire to achieve positive financial results and as sustainable operations as possible. Strategically, we work on efficiency in the short term, development in the slightly longer term and sustainable value creation in the long term.

Our mission: We safeguard life, health and assets.

Our vision: We shall know the customer best and care the most.

Our position: Gjensidige is the insurance company that leads the way, constantly finding new ways to create security.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32

Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

Our core values

Our core values shall contribute to forming a common identity and corporate culture throughout the Gjensidige organisation. They shall help our employees to work well together, to concentrate their efforts on creating good customer experiences, and on creating innovation and capacity for change.

Creating a sense of security

A sense of security is created by showing trust, openness, and listening to, seeing and supporting each other.

Security creates space to challenge and it takes us further. A secure setting gives us courage.

Applying new thinking

New thinking is about being inquisitive and being willing to do things better, be they big or small. Share your own thoughts and ideas and actively engage in those of others. New ideas lead to learning, create dynamics, challenge us and take us one step further.

Going for it

Dare to go for it. Demonstrate determination and finish in style.

Go for it! That's how we face the future head-on.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

Our goals and targets

The Board has adopted financial targets and sustainability goals that will help Gjensidige to achieve its mission, vision and desired position and to meet its obligations to the Company's stakeholders. The management has adopted operational goals to ensure that we achieve our goals and targets.

High ambitions that will benefit all our stakeholders

Annual financial targets 2022–2025

Integrated sustainability goals that will safeguard people and the planet

Key sustainability targets:

• A safer society: 80 % of premium income sustainable by 2025 for products covered by the EU taxonomy for general insurance.
• Sustainable claims settlements: 35 % reduction in CO2e in claims processes by 2025. Base year 2019.
• Responsible investments: Net zero emissions in the investment portfolios by 2050.

A safer society

• The biggest indirect emissions occur in connection with claims settlements. This means that cooperating with and motivating customers and suppliers to make choices that benefit the climate and environment and encouraging more recycling and increased emphasis on the circular economy are our greatest opportunities to reduce our carbon intensity.

Sustainable claims settlements

• The most important indirect emissions originate from claims processes. Hence, the largest potential for reducing the CO2 intensity is related to the cooperation with and motivation of customers, suppliers and other partners, so that they take more climateand environmentally friendly decisions, as well as stimulating to more reuse and the circular economy.

Responsible investments

• We shall contribute to ensuring a smooth transition to a zeroemission society by 2050 and ensure compliance with our Code of Conduct, the UN Global Compact principles and the UN Principles For Responsible Investments.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

Our operational targets towards 2025

Customer orientation

Customer satisfaction, Group > 78 Customer retention:

Norway > 90 %
Outside Norway > 85 %

Effective, sustainable processes

Digitalisation index, Group > +10 % annually Digital claims reporting, Group > 85 % Automated claims processing, Norway > 70 % Reduced carbon emissions, Group 75 % (base year: 2019) Employee engagement score: top 25 % in finance in Europe No fines from authorities

Customer satisfaction (CSI): (S)

Helps to make Gjensidige the most customer-oriented general insurance company in the Nordic region and the Baltics. This requires good value propositions to customers, customer-friendly solutions and efficient claims settlements.

Customer retention: (S)

Customer retention is a measure of how well we succeed in customer orientation, and can be improved through product and service development, a wider product range, brand etc. Customer retention contributes to good customer profitability and efficient distribution of insurance products.

Digitalisation index: (S)

We shall meet customers in the channels they prefer. Customer contact through digital channels makes up an increasing share of distribution and customer service and is expected to increase going forward. The digitalisation index shows the development in digital sales, digital customer service in Norway and the number of digital customers. It measures how well we succeed in getting customers to use digital services.

Digital claims reporting and automated claims processing: (S)

Contributes to good customer experiences and cost efficiency. Require standardisation, digital claims forms and algorithms in our core system.

Reduced carbon emissions from own operations, Group: (E)

By reducing our emissions in line with scientific objectives and buying carbon offsets, we are climate-neutral in our own operations from and including 2020.

Employee engagement score: (S)

We shall ensure high engagement among our employees and implement activities where we see a falling trend based on a monthly score.

No fines from authorities (G)

We shall ensure compliance with the stringent requirements placed on us, and good corporate governance is decisive to be able to achieve our goals.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

Gjensidige's business model

Gjensidige has en integrated business model, where direct contact with customers is an essential element. Sustainability is central to core processes and follows the UN's principles for sustainable insurance. The business is conducted within the framework of our strategy, ethical guidelines (code-of-conduct) and laws and regulations, and shall create value for all our stakeholders.

We create value for the society, now and in the future

In the short term, we create value for our stakeholders by engaging in close dialogue with customers and understanding their need for financial security.

In the medium term, it is important that we understand how customer needs develop in step with changes in society, including demographics, urbanisation, technological developments and the transition to a gre ener economy. Our business model will be adapted to these trends by continuously assessing customer needs.

-

In the long term, it is our ambition to be a problem-solver for our customers. Our business model shall still contribute to creating a safer society.

Understanding risk and risk management are the foundations of our business. Climate risk is already a key part of risk management, in terms of both pricing and understanding how customers and society can adapt to climate change.
Product and service development will play a key role in incorpora ting sustainable elements in existing products and solutions, and developing new products that meet tomorrow's needs. Damage prevention is essential to the corporate strategy. Being a pro blem-solver will entail stronger incentives for damage prevention in all products, and we will increasingly give our customers sustai nable choices.
We would like to develop closer relationships with our customers by offering relevant advice and solutions with a particular focus on damage prevention. We will move from a transactions-based rela tionship via an adviser relationship to a partnership with our custo mers. Sustainable advice and choices will be essential elements of the customer dialogue going forward.
The processing of claims reports is the moment of truth in insurance. We will compensate losses in a more sustainable way in interaction with our customers and suppliers.
We are a major asset manager in the Norwegian context, and we have influence over external investment managers. In addition to emissions, we set stringent requirements for human rights, labour rights and social factors. We comply with internationally recog nised standards such as the UN Global Compact principles, the UN Principles for Sustainable Insurance and the UN Principles for Responsible Investments.

- -

Content

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136

Appendix 2021 271

Annual report 2021 | 21

Content

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

Gjensidige's strategy

Gjensidige's corporate strategy follows from our mission to safeguard lives, health and assets – a mission that is further strengthened by our sustainability ambitions. Our overarching vision is to know the customer best and care the most, which confirms our effort to find relevant solutions for our customers, based on an increasing amount of data and better models for analytical insight. Gjensidige has defined the Nordic region and the Baltics as its geographical catchment area, and we aim for continued growth in general insurance in this area, in addition to a broad range of services in the financial sector in Norway.

Global megatrends towards 2030

Global megatrends relating to demographics, health, digitalisation and climate and environmental change give rise to changes for the insurance industry that we need to understand.

The growing elderly population challenges the Scandinavian welfare model, but also provides opportunities for new products, services and partnerships. An ageing population, changes in lifestyle and poor physical and mental health lead to more complex health challenges.
Climate and nature-related risk, including adaptation to a more sustainable society, changes the risk situation for us as an insurance company and will also create new insurance needs. Climate and nature-related risk is therefore essential in our risk assessment, and as a basis for identifying threats and opportunities. This is also reflected in our endorsement of the climate-related financial disclosures (TCFD) framework.
An increasing focus on sustainability among authorities, businesses and individuals leads to new regulatory framework conditions and expectations from owners, customers and society at large, which in turn affects innovation and the further development of our products, services, claims settlements and investments. This concerns both environmental and social sustainability. We need to understand and prevent climate and nature-related risk, and help to ensure that labour and human rights are broadly safeguarded – in addition to contributing to a safer society and better health.

Our strategy is about being a problem-solver for our customers and maintaining and developing this close relationship.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

Increased urbanisation means that more people live in apartments and densely populated areas, and new technology and new ways of owning and using cars will gradually give rise to different insurance needs.
Digital user habits have implications across industries and have accelerated further through the coronavirus pandemic. The new habits create expectations of good, personal digital services – also in insurance. At the same time, technology creates new opportunities for automating and rationalising internal work processes.
Increased use of sophisticated sensors helps customers to avoid damages. New technology generates a large amount of data, and new digital tools give us more insight into customer behaviour.

These trends represent relatively certain development trends towards 2030, and form the basis for Gjensidige's strategy work. The future also holds a number of more uncertain trends, however. Gjensidige therefore systematically follows a set of strategic scenarios. The scenarios are based on the extent to which new providers pose a significant challenge in the Nordic general insurance market, and the market's ability and possibility of utilising real-time data and predictive technology.

In the strategy period, we will in particular monitor and be prepared for the development of new business models, for example relating to open platforms and sharing of data, embedded insurance, fragmentation of the value chain through the introduction of niche players and more comprehensive risk relief products.

Covid-19 has affected the world, both through the direct health consequences of the pandemic and, not least, through the indirect economic and psychological consequences of invasive measures such as social distancing. We believe that the pandemic has primarily accelerated existing trends rather than introduced new trends. In particular, we see that our own employees have improved their digital skills, and our customers' digital user habits seem to have accelerated. At the same time, our transport habits, office solutions and shopping habits have changed, with potential long-term consequences. This will generate new opportunities in the development of products and services.

An uncertain future and technological development create new customer needs

Strategic platform - sustainable choices being the foundation

Content

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

Strategic platform and strategy towards 2025

To ensure our competitiveness and successful long-term value creation, we must strike a balance between customer orientation and efficient operations. Both must be based on an analytical approach throughout the value chain. Key success factors are a strong brand, secure, flexible and cost-effective technological infrastructure and relevant, forward-looking expertise and culture. Sustainable choices and solutions are a basic precondition for long-term value creation. Factors that summarise continuous improvement and further investment in critical capabilities in line with this:

Customer needs set the premise for all product and service development, and shall foster high customer satisfaction and customer renewal. Solutions will be developed based on the customer perspective, with the focus on simplification and added value. The customer dialogue combines digital solutions and efficient omni-channel distribution.
Efficient operations are ensured through small and large measures and continuous improvement, rationalisation and automation of our processes.
Analytics-driven business processes throughout the value chain are decisive for our customer orientation and correct risk pricing. Examples include automated tariffs and customer behaviour prediction analyses in connection with customer advice and claims settlements. Analytical insight will also contribute to activities aimed at helping customers to avoid losses.
Our brand platform supports our strategic platform and focuses on customer needs: Together we will create solutions for a more secure tomorrow. We will create a stronger brand through visibility, clarity and a whole-system approach, and stand out from the competition.
Investments in a secure, flexible and cost-effective technology and analytics platform will be key for Gjensidige in the years ahead. This includes new technological infrastructure founded on cloud-based solutions, a new core system and next-generation tariffs and analytical CRM.
Good customer experiences are at the core of the Group's strategy. In order to achieve our ambition, we need to attract, develop and retain motivated and engaged employees. Gjensidige has a flat organisational structure. Diversity skills and collaboration are important preconditions for building a good business culture that reflects the diversity of our customers, and for making us more

-

attractive in the future labour market. Retaining critical expertise is an essential part of our risk assessment.

Gjensidige's sustainability strategy is divided into three overarching activities in relation to stakeholders:

Sustainability strategy in Gjensidige

• Inform: We shall develop and share knowledge to contribute to increased damage prevention and sustainable solutions for our customers and society at large.
• Interact: We shall collaborate and provide incentives for customers and suppliers to contribute to increased reuse and the circular economy.
• Invest in customers and employees to ensure that the best solutions for the climate, nature and society are chosen. The investment portfolio shall be managed responsibly in accordance with recognised principles.

Looking towards 2025, we expect the participants in our market to remain more or less the same as today. Gjensidige's strategy is based on our position for further growth and development in the individual markets, while exploiting synergies and best practices across the Group. Gjensidige has a clear ambition to achieve organic, profitable growth in all its markets.

At the same time as Gjensidige strengthens its current business model, market position and profitability, we make systematic and targeted efforts to exploit new pockets of growth and explore new, innovative products and services of greater relevance to customers' lives. We develop strategic flexibility and the required financial room for manoeuvre through continuous improvement and more efficient operations.

During the period, we will increasingly position ourselves through new customer concepts that help to prevent damage and solve customer problems. We will do this alone, together with partners or by participating in relevant ecosystems. This will ensure greater relevance in relation to our customers and make us more attractive to potential alliance partners.

A problem-solver for customers

The core of Gjensidige's more than 200-year long success story is that we have always been there for and played an important role in our customers' lives. Direct contact throughout the customer journey has given us useful insight into customer behaviour and risks and contributed to efficient sales. Overall, our strong customer orientation has given us a strong brand and high customer loyalty. Our corporate strategy is about maintaining and further developing

our close relationship with our customers. We shall attract new customers, increase the number of products per customer and maintain customer loyalty by developing new products and services that create a sense of security. In other words, our goal is to become an even stronger partner for our customers; a problem-solver that helps them to avoid damages. We will utilise new technology and build a broader value proposition – alone or in partnership with others, utilising our capabilities to become an even more relevant part of our customers lives – and thereby further strengthening ownership of the customer relationship.

We meet customer expectations and eliminate frustration.

We build customer satisfaction through reliable, differentiating customer service and advice, and competitive, correctly priced products.

We create loyalty by solving relevant problems for our customers as they arise, often by helping them to avoid damage or to create incentives for sustainable choices.

Content

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136

Appendix 2021 271

Segment-wise strategies

In Norway, we will continue to build on our strong, unique position and retain our position as market leader also in future. We will ensure that pricing is adapted to risk development and develop new products and services in close dialogue with customers, to ensure that we are a relevant part of their lives. In parallel, we continuously work on initiatives that generate cost savings, better customer experiences and greater competitiveness.

The Private segment shall win the battle for customer relationships. We will strengthen our distribution power by further developing our already strong omni-channel model and analytical CRM. At the same time, we shall ensure profitability through damage prevention, green claims settlements and even better risk selection and pricing. Our relationship with customers shall be further strengthened by developing differentiating services and new partnerships that build loyalty over time. The commercial market is expected to remain a relationship-based market where expertise is an important competitive factor. In the upcoming strategy period, we shall maintain our marketleading position and create customer value through competent, insight-based advisory services. We shall further develop our position by ensuring forward-looking customer services, with an optimal balance between digital solutions and personal advice. We shall further develop our analytical insight and how we use it, and continue to integrate damage prevention solutions in our products and services, while also creating incentives for customers to make sustainable choices, not least in the claims settlement process.

Gjensidige Pensjonsforsikring shall strengthen our position in the corporate market by continuously improving products and services and creating security for employees of our corporate customers. Our solutions shall be perceived as simple and efficient for our corporate customers and their employees. We shall make pension predictable and understandable through insight-based communication and advice, good digital solutions and quality-assured investment options. Our investments shall support the goals of the Paris Agreement and the UN's sustainability principles. In parallel, we shall continuously seek to automate manual processes and other measures that generate cost savings, better customer experiences and greater competitiveness.

Segment strategy – we must understand our customers' situation to be able to solve their problems

In Denmark, we will continue to focus on profitable growth and a stronger market position. Our new core system creates a strong platform, upon which we will build new digital solutions, sophisticated analytics models and new customer concepts. Strategic partnerships are a central element of our growth strategy. In this context, we will also take advantage of our strong position in property changeovers and health.

In Sweden and the Baltics, we will continue our transformation work. In order to promote increased profitability and a stronger position in the Swedish market, we will move towards becoming a fully digital insurance provider, based on an agile business model that is gradually developed to generate new growth and attract new partners. In the Baltics, the focus on organic growth, stronger pricing models and rationalisation measures continues.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021
Appendix 2021	271

Capital strategy

Our capital strategy will underpin our attractive dividend policy and contribute to ensuring high and stable nominal dividends on a regular basis. Gjensidige's capitalisation shall be adapted at all times to the Group's strategic goals and appetite for risk. The Group shall maintain its financial flexibility while exercising strict capital discipline that supports the return on equity target and dividend policy.

All subsidiaries will be capitalised in line with the respective statutory requirements, while capital in excess of the requirements will, as far as possible, be retained in the parent company Gjensidige Forsikring ASA. The Group will make use of subordinated loans and other external financing in a responsible and value-optimising manner and within the limits set by authorities and rating agencies.

Structural growth

Gjensidige shall take a proactive and disciplined approach to structural growth opportunities through acquisitions/mergers/strategic alliances that complement its core activities and contribute to increased investment capacity.

The Group's growth matrix remains unchanged: increased scale in general insurance in the Nordic region and the Baltics, and a broader range of services in the financial sector in Norway. At the same time, we will develop strategic alliances with providers who can give us further insight into security-related needs, changes in customer behaviour and new technological opportunities.

Socio-cultural and economic trends, including demographic changes and customer behaviour	The environment, economy, politics and regulatory changes
• Personal, adapted customer service: expectations of good, user-adapted digital services and simple customer journeys. Interaction between distribution channels. • Greater interest in sustainability (especially the environment/cli mate and health), among both private individuals and businesses. • Population ageing puts pressure on the Scandinavian welfare mo del. At the same time, the urbanisation trend continues, and more and more people live in and around the biggest towns and cities. • Customers are interested in new ways of having access to a car: new forms of ownership, rental and car sharing. • Social acceptance of automated services will increase.	• Increased climate and nature-related risk creates uncertainty about claims payments and cash flows from financial investments. At the same time, new insurance needs and the need for damage prevention services arise. • Increased and more complex health challenges. • Increased costs of compliance with statutory requirements and regulations, especially data protection and sustainability (climate, environment, health, diversity etc.). • Scarcity of talent, especially in technology, digitalisation and analytics.
Technological development and access to and utilisation of data • Technology generates large amounts of data. New digital tools create opportunities for analysing and generating insight through new combinations of structured and unstructured data.

Socio-cultural and economic trends, including demographic changes
and customer behaviour

The environment, economy, politics and regulatory changes

• Personal, adapted customer service: expectations of good,
user-adapted digital services and simple customer journeys.
Interaction between distribution channels.
• Greater interest in sustainability (especially the environment/cli
mate and health), among both private individuals and businesses.
• Population ageing puts pressure on the Scandinavian welfare mo
del. At the same time, the urbanisation trend continues, and more
and more people live in and around the biggest towns and cities.
• Customers are interested in new ways of having access to a car:
new forms of ownership, rental and car sharing.
• Social acceptance of automated services will increase.

• Increased climate and nature-related risk creates uncertainty
about claims payments and cash flows from financial investments.
At the same time, new insurance needs and the need for damage
prevention services arise.
• Increased and more complex health challenges.
• Increased costs of compliance with statutory requirements
and regulations, especially data protection and sustainability
(climate, environment, health, diversity etc.).
• Scarcity of talent, especially in technology, digitalisation
and analytics.

Technological development and access to and utilisation of data
• Technology generates large amounts of data. New digital tools create opportunities for analysing and generating insight through
new combinations of structured and unstructured data.

Different service providers are linked together on digital platforms and create new value propositions across industries.
Artificial intelligence is used increasingly to improve customer experiences.
Technology makes work processes more efficient, and a considerable number of tasks are automated.

Content

Chapter 1 - We are Gjensidige
Chapter 2 - This is us	14

Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN

Sustainable Development Goals 26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32

Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136

We support several of the UN Sustainable Development Goals (SDGs) and other sustainability initiatives under the auspices of the UN

Through its activities, Gjensidige shall implement measures that promote the SDGs and focus on the ones that are most relevant to an insurance company. The 17 SDGs are ambitious and call for a global effort to make the world a better place, focusing on the climate and the environment, social conditions and the economy. Gjensidige shall focus on promoting seven of the SDGs in particular.

3. Good Health and Well-Being

Gjensidige's main aim is to contribute to financial risk protection. Gjensidige will help to halve the number of deaths and injuries caused by road traffic accidents. Gjensidige has accident and health policies and additional services that promote general access to quality essential health-care services and disability coverage that ensures financial security.

5. Gender Equality

Gjensidige is concerned with ensuring equal opportunities for women and men, among its own employees, partners and suppliers – with regard to both fundamental labour rights and career and development opportunities. We will also work to ensure genuine, equal opportunities for women to be appointed to executive positions at all levels, and also to ensure that our suppliers and partners do the same. In 2021, Gjensidige signed Finance Norway's 'Women in Finance Charter', which aims to increase the proportion of women in executive positions in the Norwegian financial industry.

8. Decent Work and Economic Growth

Gjensidige insures enterprises that are vital to establishing workplaces, entrepreneurship, creativity and innovation, and stimulates the establishment of new and growth in existing businesses, including through access to financial services. Gjensidige endeavours to ensure that employees and partners respect labour rights and promote safe and secure working environments for all workers, including migrant workers and workers in precarious employment.

11. Sustainable Cities and Communities

Gjensidige shall, by 2030, join forces with the public authorities to help significantly reduce the number of people affected by disasters, including water-related disasters, and help to reduce the direct financial losses that follow from such disasters. Gjensidige shall support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning. Gjensidige shall also contribute through adaptation to climate change and strengthen the society's resilience to and ability to handle disasters.

12. Responsible Consumption and Production

Gjensidige shall contribute to sustainable management and efficient use of natural resources, and contribute to reducing food waste and overconsumption of resources and materials in its insurance operations. Gjensidige is concerned with greater facilitation of the circular economy, and its goal towards 2030 is to progressively improve (global) resource efficiency in consumption and production, and endeavour to increase awareness of the need for a circular economy, in accordance with the 10-Year Framework of Programmes on Sustainable Consumption and Production Patterns.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals 26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136

Appendix 2021 271

13. Climate Action

Gjensidige shall contribute to strengthening resilience and adaptive capacity to climate-related hazards and natural disasters, including providing insurance claims data to the authorities to ensure better measures are instigated to combat climate change and planning at the national level. Gjensidige shall work on damage reduction measures that strengthen individual and institutional capacity on climate change mitigation and early warning, and strengthen their knowledge of and raise awareness about the climate.

16. Peace, Justice and Strong Institutions

Gjensidige is concerned with contributing to a more just society and a labour market that promotes fundamental human and labour rights, also internationally. We will work to ensure that our suppliers and partners safeguard such rights, and promote good management and control that helps to reduce the risk of economic crime in the society.

In addition to following up the UN SDGs, Gjensidige has also signed and endorses the following UN initiatives

UN Global Compact

Website: UN Global Compact Norway

FNs prinsipper for bærekraftig forsikring

(UNEP Finance Initiative Principles for Sustainable Insurance) Website: UNEP FI Principles for Sustainable Insurance

FNs prinsipper for ansvarlige investeringer

(UN Principles for Responsible Investments) Website: UN PRI

Read more about these initiatives and our follow-up on our website: https://www.gjensidige.no/group/about-us/sustainability

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136

Appendix 2021 271

Customer promise

Customer orientation is essential to Gjensidige and permeates the Company's organisation. We shall deliver the best customer experiences and solutions for a safer tomorrow.

Our mission is to safeguard lives, health and assets. For society, we contribute to better public health, high labour force participation, sustainable management and compensation of assets. For people and businesses, we contribute by compensating financial losses when a claim arises and by offering solutions that reduce the risk of future damages and claims, while also contributing to increased sustainability in terms of the economy, resource use and the environment.

Our vision is to know the customer best and care the most. This vision reflects our view that customer orientation is a competitive advantage. Real customer orientation requires a culture in which advisory services, sales, claims processing, products, services and systems development form integral elements. It takes time to develop a culture like this, and it is difficult to copy it. Good customer experiences over time have created strong trust in Gjensidige as a brand. Our ambition is to create the best customer experiences in our industry. We call this the Gjensidige Experience.

The Gjensidige Experience

We keep our promises
We always deliver quality
We make complicated things simple
We ensure that the customer is satisfied

The Gjensidige Experience reflects our vision and our strong customer orientation culture. We always work to deliver the best solutions and experiences in all points of contact with customers. Customers shall feel that we know them, care about them, make things easy for them and help them.

Our starting point is strong. We have very satisfied customers and high customer loyalty, especially in Norway, where we have the strongest reputation in the financial sector and one of the strongest regardless of sector. Satisfaction with the Company and our advisers is measured on a continuous basis, and improvement measures are initiated based on feedback from the customers. Gjensidige has defined clear goals for customer satisfaction. The level of goal attainment influences the payment of bonuses to executive personnel and collective bonuses to all employees.

Going forward, we will work on measures to further strengthen customer satisfaction and loyalty and to attract new customers. User-friendly solutions have become an increasingly important precondition for delivering good customer experiences. Both private and commercial customers increasingly prefer to buy insurance and report claims digitally. The development of market-leading solutions for a simpler and safer future has been given very high priority.

Do you have a problem we can solve?

We make continuous efforts to further develop all points of contact between us and our customers so that all enquiries and claims, whether great or small, are dealt with in a simple, problem-free way. Analyses of customer data and alliances with other players will be crucial to be able to develop market-leading customer solutions.

In the years ahead, we will endeavour to take customer orientation one step further. Going forward, we will have a stronger focus on assuming the role of problem-solver and on delivering products, services and solutions that prevent losses from occurring.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

New technology and partnerships will enable us to be one step ahead in loss situations. This is an attractive, strong value proposition based on the Company's customer orientation. Seen in isolation, damage prevention is the measure with the single greatest effect on the economy and the climate. We see how we can better meet customers' need for security while at the same time maintaining our role as a responsible member of the society.

Even with this focus, however, we know that damages will continue to occur, and when they do, Gjensidige will do what we have always done: not only compensate customer' financial losses, but do so in a way that causes them the least possible inconvenience.

Customer dividend – a unique advantage for our Norwegian general insurance customers

Every year since Gjensidige was listed on Oslo Børs, general insurance customers in Norway have received a customer dividend. Over the years, they have received more than NOK 23 billion, corresponding to 11–16 per cent of their annual insurance premium. The background for the customer dividend model is that Gjensidige was established as a company owned by customers. Today, the customers' interests are safeguarded by Gjensidigestiftelsen, the largest shareholder in Gjensidige.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

Our markets

Gjensidige is a leading general insurance provider in the Nordic countries and the Baltic states. The Nordic general insurance markets are attractive, with high entry barriers, but also characterised by considerable competition between the established players. The Baltic general insurance market is slightly less mature, with a potential for strong growth as the standard of living continues to improve.

Gjensidige is the biggest player in the Norwegian land-based general insurance market, with a market share of just over 26 per cent in 2021, of a total market worth more than NOK 66 billion, according to statistics from Finance Norway. Gjensidige is a well-established player in the Danish market and has taken a market position that leads to economies of scale.

Gjensidige's market share in Sweden is lower than in the other markets, and the Company is in a challenger position in relation to the biggest, most established players. In the Baltics, Gjensidige is well-positioned for further growth. The Company's operations outside Norway are based on a number of small and medium-sized acquisitions over the past 15 years.

Expected normalisation of growth paths in the Nordic region in the wake of the pandemic

Annual growth in total market (local currency) 1

Due to delayed publication of statistics in some countries the chart stops at 2020.

The general insurance market in the Nordic countries is mature, while the Baltic general insurance market represents a potential for strong growth as the standard of living continues to improve. The coronavirus pandemic has influenced global developments in 2021 as well, and has massively affected the economy of the Nordic and Baltic countries. This has given rise to uncertainty about the future for businesses and individuals, especially regarding patterns in international logistics and the pace of economic recovery in general. Geopolitical uncertainty, low interest rates and financial challenges in several key economies worldwide are reflected in a somewhat chaotic financial situation. There has been a strong upturn, however, especially in the Nordic countries, thanks to large stimulus packages and a gradual easing of restrictions. Although uncertainty prevails, the outlook for economic activities in Gjensidige's market is very encouraging. The risk of pressure on insurance volumes in the wake of the pandemic is thereby considerably lower than previously.

Infection control measures in Norway and Denmark contributed to reduced activity in these countries during the year, which led to less traffic and thereby fewer motor claims in the spring. As the measures were gradually eased, the claims situation in both the private and the commercial market returned to normal. Sweden has taken a different approach to the pandemic in terms of infection control, and the total claims situation was less affected by the measures that were implemented.

Based on the most recent years' profitability levels in our insurance markets, the Nordic markets have been attractive. The high level of prosperity in the Nordic region means that people have substantial assets to insure. For private customers, the biggest products are

motor insurance, home insurance and risk-based accident and health insurance. The Scandinavian welfare model entails universal access to public health services and a broad range of social security schemes.

Private accident and health insurance serves as a supplement to these schemes. Travel, leisure craft and valuables also represent a significant volume of insurance. The Baltics stand out from Gjensidige's other insurance segments in that motor insurance dominates the market. The Baltic region is also characterised by lower customer loyalty and a larger proportion of short-term contracts, which in turn affects the competitive dynamics and creates a price-sensitive market. This trend was further enhanced through 2021 due to the coronavirus pandemic.

Property and motor insurance are the biggest products in the commercial market as well, in addition to occupational injury and employee group life insurance. Commercial customers also request a number of insurance policies tailored to their activities.

There is high customer loyalty to companies with established brands and strong partner structures in the Nordic general insurance market. A high degree of direct distribution combined with high customer loyalty and efficient operations in integrated value chains lead to low cost ratios and create high entry barriers for new players.

1 7 #5

5

Content

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

The map shows Gjensidige's position in the different markets, based on market shares for companies presented in public statistics.

Consolidated markets in Norway, Sweden and the Baltics. Further consolidation during the year.

Combined market share for top 5 companies 1

1 Due to delayed publication of statistics in some countries the chart stops at 2020.

There is considerable competition in all countries in the region. Through 2021, we have seen a further consolidation of the Scandinavian market driven by acquisitions. Tryg has bought Codan in Norway and Tryg Hansa in Sweden, while Alm Brand bought Codan in Denmark. This has changed the relative sizes between the operators in the Scandinavian insurance market seen as a whole. In all our markets, we face competition mainly from large traditional general insurance companies and bankassurance companies.

Most of the large players are companies with general insurance as their core activity, and they are largely based on integrated value chains. The smaller companies include both banks and life insurance companies, as well as pure general insurance companies.

In most of the countries, the private market consists of four or five large players and a number of small or medium-sized companies. The commercial market is generally more concentrated than the private market. Size and scale are increasingly important in order to succeed

in the insurance industry. This is driven by the need for meeting increased regulatory complexity, creating room for strategic investments and investments in technology, attracting and retaining the best qualified candidates, increased diversification and positioning to be the preferred alliance partner.

We have seen a few attempts in recent years to establish new business models. The number of such initiatives is expected to increase going forward. New regulatory guidelines and technology may usher in new business models that have the potential to challenge existing models. Our response has been to maintain and strengthen the close relationship we have with our customers through good customer orientation, at the same time as we test, learn and develop new products, solutions and business models. Efficient operations are a precondition for creating room and flexibility for investments in future competitiveness.

Annual report 2021 | 32

Content

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

5 %

Defined as an alternative performance measure (APM). APMs are described at https://www.gjensidige.no/group/investor-relations/reports in the document 'APMs Gjensidige Forsikring Group 2021'.
Companies in the overview are according to public statistics

Our insurance segments

Gjensidige Forsikring ASA is the parent company of the Gjensidige Group, and its head office is in Oslo, Norway. The Company has general insurance operations in Norway, Denmark, Sweden and the Baltic states, in addition to pension operations in Norway.

The general insurance operations include both property insurance and accident and health insurance. The Norwegian general insurance operations also include life insurance, which is pure risk insurance with a duration of up to one year, largely group life insurance.

Operations outside Norway primarily take place through branches. In the Baltics, we have a subsidiary in Lithuania with branches in Estonia and Latvia. The business is organised into six operational segments:

General Insurance Private: Market leadership and beyond

The Private segment provides a wide range of general insurance products and services to private individuals in Norway, and handles sales, customer service and claims settlement.

General Insurance Private:

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

General Insurance Commercial:

Defined as an alternative performance measure (APM). APMs are described at https://www.gjensidige.no/group/investor-relations/reports in the document 'APMs Gjensidige Forsikring Group 2021'.
Companies in the overview are according to public statistics

General Insurance Commercial: The leading commercial underwriter

The Commercial segment offers a wide range of general insurance products to commercial and agricultural customers, and the public sector in Norway. The segment handles sales, customer service and claims settlement.

Content

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

Defined as an alternative performance measure (APM). APMs are described at https://www.gjensidige.no/group/investor-relations/reports in the document 'APMs Gjensidige Forsikring Group 2021'.
Companies in the overview are according to public statistics

General Insurance Denmark: Fit for future

In Denmark, Gjensidige offers a wide range of general insurance products to private and commercial customers, including agriculture and the public sector. We also offer specialised travel insurance in the Nordic market. The segment handles sales, customer service and claims settlement. About 40 per cent of earned premiums come from the private market, while the rest comes from the commercial market.

General Insurance Denmark:

Content

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

General Insurance Sweden: An aspiring challenger

The Sweden segment includes the Group's general insurance operations in the Swedish private and commercial markets. The segment handles sales, customer service and claims settlement. About 50 per cent of earned premiums come from the private market, while the other half comes from the commercial market.

General Insurance Sweden:

Defined as an alternative performance measure (APM). APMs are described at https://www.gjensidige.no/group/investor-relations/reports in the document 'APMs Gjensidige Forsikring Group 2021'.
Companies in the overview are according to public statistics

Content

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

General Insurance Baltics:

Defined as an alternative performance measure (APM). APMs are described at https://www.gjensidige.no/group/investor-relations/reports in the document 'APMs Gjensidige Forsikring Group 2021'.
Companies in the overview are according to public statistics

General Insurance Baltics: Capitalising on attractive market growth

The Baltic segment includes the Group's general insurance operations in Lithuania, Latvia and Estonia, aimed at the private and commercial markets. The segment handles sales, customer service and claims settlement. About 50 per cent of earned premium come from the private market, while the other half comes from the commercial market.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 2 - Mission and vision	15
Chapter 2 - Our core values	16
Chapter 2 - Our goals and targets	17
Chapter 2 - Gjensidige's business model	19
Chapter 2 - Gjensidige's strategy	21
Chapter 2 - We support several of the UN
Sustainable Development Goals	26
Chapter 2 - Customer promise	28
Chapter 2 - Our markets	30
Chapter 2 - Our insurance segments	32
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	11
Financial statement including notes 2021	136
Appendix 2021	271

Pension:

Asset under management 2021 NOK 51,5 billion

Defined as an alternative performance measure (APM). APMs are described at https://www.gjensidige.no/group/investor-relations/reports in the document 'APMs Gjensidige Forsikring Group 2021'.
Companies in the overview are according to public statistics

Pension: Well positioned in a growing market

Gjensidige Pensjonsforsikring offers defined contribution occupational pension schemes for businesses, in addition to individual pension savings agreements and disability pension.

Pension is a priority area that helps to ensure that Gjensidige can be a complete supplier of insurance and pension products to private and commercial customers. The business contributes to stronger customer relations and loyalty among our general insurance customers. 'Own pension account' launched in 2021.

Chapter 1 - We are Gjensidige 2

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14

Chapter 4 - Financial statements 115

Chapter 5 - Notes

Appendix 2021 205

Content

Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - Creating value for our stakeholders 39 Chapter 2 - This is us	14
Chapter 3 - We create a sense of security Chapter 3 - Creating added value	41
Chapter 3 - Our motivated employees in Gjensidige	53 38
Chapter 3 - Climate and the environment Chapter 3 - We create a sense	66
Chapter 3 - Responsible investments of security	87 41
Chapter 3 - Good corporate governance Chapter 3 - Our engaged employees Ch Chapter 3 - Climate and the environment 65	95 53
Chapter 4 - Financial result Chapter 3 - Responsible investments	117 85

Financial statement including notes 2021	136
Chapter 3 - Good corporate governance	93
Appendix 2021	271

Gjensidige

Chapter 4 - Financial statements 115

Chapter 5 - Notes

Appendix 2021 205

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - Creating value for our stakeholders 39 Chapter 2 - This is us	14

Chapter 3 - We create a sense of security Chapter 3 - Creating added value	41
Chapter 3 - Our motivated employees in Gjensidige	53 38
Chapter 3 - Climate and the environment Chapter 3 - We create a sense	66
Chapter 3 - Responsible investments of security	87 41
Chapter 3 - Good corporate governance Chapter 3 - Our engaged employees	95 53
Ch Chapter 3 - Climate and the environment 65
Chapter 4 - Financial result Chapter 3 - Responsible investments	117 85
Financial statement including notes 2021 Chapter 3 - Good corporate governance	136 93
Appendix 2021	271

Customers a. Security and trust b. Good insurance policies and claims settlements c. Good customer service d. Prices

Employees

e. Security and meaningful work f. Competence and career development
g. Diversity
h. Labour rights

Suppliers

i. Fair competition
j. Partnership engagement
k. Financial strength
l. Ethical principles respect and integrity

Investors/owners

m. Clear mission, vision and strategy
n. Financial strength
o. Human capital
p. Management and control

Society at large

q. Compliance with laws, rules and ethical standards
r. Creating a sense of security by offering insurance and damage prevention
s. Climate, environment and CSR t. Responsible investments

Medium Very high

Gjensidige's ability to exert influence

Medium

Creating value for our stakeholders

Gjensidige has operations in six different countries, is one of the biggest companies on Oslo Børs and has many different stakeholders. By stakeholder is meant those who influence or are influenced by the Company.

Stakeholder dialogue and risk and materiality analysis

Gjensidige adopts goals, targets and strategies to ensure value crea tion in the long term. It is important that our goals, targets and stra tegies tally with stakeholder expectations. We therefore carry out an annual materiality analysis. The analysis is developed in dialogue with our stakeholders, which are customers, employees, suppliers, society at large and our investors/owners.

The ranking is based on what topics the stakeholders consider im portant and the consequences for Gjensidige if we fail to meet their expectations of our climate and environmental work, social factors, corporate governance and finances.

We have summarised our risk and materiality analysis and stakeholder needs in five areas: a safer society, motivated employees, climate and the environment, responsible investments and good management and control. The areas are described in the table below. The value created by Gjensidige in these five areas is described in more detail in respe ctive chapters of the integrated annual report.

Chapter 4 - Financial statements 115

Chapter 5 - Notes

Appendix 2021 205

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - Creating value for our stakeholders 39 Chapter 2 - This is us	14
Chapter 3 - We create a sense of security Chapter 3 - Creating added value	41
Chapter 3 - Our motivated employees in Gjensidige	53 38
Chapter 3 - Climate and the environment Chapter 3 - We create a sense	66
Chapter 3 - Responsible investments of security	87 41
Chapter 3 - Good corporate governance Chapter 3 - Our engaged employees	95 53
Ch Chapter 3 - Climate and the environment 65 Chapter 4 - Financial result Chapter 3 - Responsible investments	117 85
Financial statement including notes 2021 Chapter 3 - Good corporate governance	136 93
Appendix 2021	271

Content

Specification of the five areas our stakeholders consider most material and why they matter to Gjensidige

Most material issues	For stakeholders	For Gjensidige
Security (S)	Financial safety and security are closely connected and are regarded as important to our stakeholders.	This is a core activity in insurance and an essential ele ment of Gjensidige's strategy as a damage-preventing pro blem-solver.
Motivated employees (S)	Our employees are concerned with safe workplaces and meaningful work that satisfies their need for competence and career development. Equal opportunities and rights are important. Labour rights shall be safeguarded through the freedom of association.	Engaged, motivated employees are decisive for value creati on in the short and long term. The right expertise is decisive to be able to achieve the goals we have set.
Climate and the environment (E)	Climate and nature-related risk has become more relevant to our stakeholders, especially commercial customers. More stringent official regulations affect general insurance. Em ployees are concerned with meaningful work and with con tributing to solutions that reduce climate and environmental challenges.	Gjensidige has established goals that support emissions cuts to achieve the 1.5-degree target of the Paris Agreement. Climate and environmental change will affect insurance directly through the likelihood of increased claims incurred (physical damage), greater uncertainty relating to the return on investments, and changes in customer preferences.
Responsible investments (ESG)	Our stakeholders increasingly expect the companies we invest in to take climate and environmental challenges into account, make contributions to society, and, in particular, take responsibility for giving labour rights and corporate go vernance high priority.	In the same way that our stakeholders have expectations of us when it comes to sustainability, we follow up our invest ments to make sure that the companies we invest in give due consideration to sustainability.
Good management and control (G)	The insurance industry is subject to stringent regulation and licensing because insurance is important to ensure economic growth and financial security. Good management and control is a critical success factor for safeguarding life, health and assets. Direct and indirect taxes that finance the common good are also an important contribution.	Our core competence is a structured approach to understan ding risk, reducing risk and relieving customers of risk. That requires good management and control systems.

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige	2

Appendix 2021 205

Content

Chapter 3 - Value creation in Gjensidige 38

Chapter 3 - We create a sense of security	41
Chapter 3 - A safer society because we Chapter 3 - Creating added value
understand risk in Gjensidige	42 38
Chapter 3 - Our social commitment Chapter 3 - We create a sense	50
Chapter 3 - Effect of our efforts: A safer society 51 of security Chapter 3 - Our engaged employees	41 53
Chapter 3 - Our motivated employees Chapter 3 - Climate and the environment 65	53
Chapter 3 - Climate and the environment Chapter 3 - Responsible investments	66 85
Chapter 3 - Responsible investments Chapter 3 - Good corporate governance	87 93
Chapter 3 - Good corporate governance Chapter 4 - Financial statements	95 115
Chapter 4 - Financial result	117
Financial statement including notes 2021 Chapter 5 - Notes	136
Appendix 2021	271

of security

A safer society because we understand risk

Gjensidige plays an important role by possessing forward-looking knowledge about the risks faced by our customers and society. The right knowledge and skills is decisive to be able to give customers relevant advice and incentives to reduce risk. We also share our insight with society at large, for the purpose of avoiding or reducing the number of undesirable incidents.

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige Chapter 2 - This is us	38 14
Chapter 3 - We create a sense of security	41
Chapter 3 - A safer society because we Chapter 3 - Creating added value
understand risk in Gjensidige	42 38
Chapter 3 - Our social commitment Chapter 3 - We create a sense	50
Chapter 3 - Effect of our efforts: A safer society 51 of security Chapter 3 - Our engaged employees	41 53
Chapter 3 - Our motivated employees Chapter 3 - Climate and the environment 65	53
Chapter 3 - Climate and the environment Chapter 3 - Responsible investments	66 85
Chapter 3 - Responsible investments Chapter 3 - Good corporate governance	87 93
Chapter 3 - Good corporate governance Chapter 4 - Financial statements	95 115
Chapter 4 - Financial result	117
Financial statement including notes 2021 Chapter 5 - Notes	136
Appendix 2021 Appendix 2021	271 205

Topics of interest to our stakeholders	Our goals	Status of measures 2021	We support the following SDGs
Forward-looking analysis as the basis for damage prevention Financial safety and security are closely connected, and new damage prevention services are important to enable our stakeholders to lead good lives.	Eighty per cent of premium income from products covered by the EU taxo nomy for general insurance shall be sustainable by 2025.	• We have conducted damage preventing risk checks for 5 368 customers. • We have granted discounts of NOK 1435 million to customers who have implemented damage prevention measures. • Enhanced follow-up to ensure our suppliers meet labour rights requirements through, among other things, the reputed portal EcoVadis. • New damage-preventing services in health, property and agriculture.
We take social responsibility We give back to society by paying considerable indirect and direct taxes and by supporting non-profit organisa tions in their work to ensure safer local communities.	Collaborations with non-profit organi sations in all the countries we operate in, to contribute to a more inclusive and warmer society and equal opportunities for children and young people.	We have contributed considerable funds to society and enhanced investment in mental health • Entered into partnerships with MOT and Ungt Entrepenørskap (UE) to support their work on life skills at school and in sports. • Renewed our agreement with the Church City Mission, with particular focus on chil dren and young people in the community.

We reduce financial uncertainty and shall be rele vant in people's lives

Possible consequences of climate and environmental challenges, de mographic changes and changed health needs are examples of areas we explore. Insurance is about the distribution of risk. Gjensidige's size, product composition and geographical presence let us diversi fy such risk. Reinsurance ensures that we stand together when large losses occur. That way, we create a sense of security throughout the value chain.

Helping to prevent loss contributes to a more sustainable society: Less material damage reduces the use of resources and our climate footprint. At the same time, we must demonstrate social responsibi lity when compensating losses. That way, we work towards the triple bottom line: people, planet, profit. We will work to improve our ef forts along all three dimensions.

We aim to strengthen our position earlier in the value chain by helping and encouraging our customers to make sustainable low-risk choices. This will mean lower insurance premiums for our customers and fa vourable consequences for the environment, customers and us. We carry out a thorough assessment when entering into new customer agreements to ensure a more sustainable, low-risk customer portfo lio. The Risk Management report we have developed gives customers feedback based on their challenges and improvement potential. By sharing our knowledge of damage prevention work, we enable our customers to implement the sustainability measures required to achi eve the best terms. The risk management score shall be high and contribute to a sustainable customer portfolio.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security	41
Chapter 3 - A safer society because we
understand risk	42
Chapter 3 - Our social commitment	50
Chapter 3 - Effect of our efforts: A safer society 51
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment	66
Chapter 3 - Responsible investments	87
Chapter 3 - Good corporate governance	95
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271

We facilitate a sense of security by resolving customers' everyday challenges

Changes in customer behaviour, demographics, technology, regulations, our ways of living and the global climate are just some of the trends that give rise to new challenges, but first and foremost new possibilities. We will be there for our customers by managing their risks and solving everyday problems, thereby living up to our social mission of safeguarding lives, health and assets.

We will use our customer insight to pursue an increasingly holistic approach to their needs. Our goal is to become an even better and more relevant partner for our customers – a problem-solver with an even stronger focus on damage prevention – and thereby further strengthening our relationship with customers.

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige Chapter 2 - This is us	38 14
Chapter 3 - We create a sense of security	41
Chapter 3 - A safer society because we Chapter 3 - Creating added value
understand risk in Gjensidige	42 38
Chapter 3 - Our social commitment Chapter 3 - We create a sense	50
Chapter 3 - Effect of our efforts: A safer society 51 of security Chapter 3 - Our engaged employees	41 53
Chapter 3 - Our motivated employees Chapter 3 - Climate and the environment 65	53
Chapter 3 - Climate and the environment Chapter 3 - Responsible investments	66 85
Chapter 3 - Responsible investments Chapter 3 - Good corporate governance	87 93
Chapter 3 - Good corporate governance Chapter 4 - Financial statements	95 115
Chapter 4 - Financial result	117
Financial statement including notes 2021 Chapter 5 - Notes	136
Appendix 2021 Appendix 2021	271 205

We will offer a broader range of both products and services, either alone or together with selected partners, and start using relevant environmental technology and other solutions that will ensure practical and efficient interaction with customers.

Ageing population and complex health challenges

Technology and digitalisation

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige Chapter 2 - This is us	38 14
Chapter 3 - We create a sense of security	41
Chapter 3 - A safer society because we Chapter 3 - Creating added value
understand risk in Gjensidige	42 38
Chapter 3 - Our social commitment Chapter 3 - We create a sense	50
Chapter 3 - Effect of our efforts: A safer society 51 of security	41
Chapter 3 - Our engaged employees Chapter 3 - Our motivated employees Chapter 3 - Climate and the environment 65	53 53
Chapter 3 - Climate and the environment Chapter 3 - Responsible investments	66 85
Chapter 3 - Responsible investments Chapter 3 - Good corporate governance	87 93
Chapter 3 - Good corporate governance	95
Chapter 4 - Financial statements Chapter 4 - Financial result	115 117
Financial statement including notes 2021 Chapter 5 - Notes	136
Appendix 2021	271

Damage prevention and sharing of knowledge are our most important contributions to a sustainable society

Helping to protect lives, health and assets is good for the climate and environment, for those who avoid losses and for the economy. Our social mission as an insurance company is precisely to help to create a sense of security for our stakeholders and avoid losses.

Gjensidige works on damage prevention by informing customers and society of effective measures and by guiding customers into implementing risk reduction measures. We grant a discount to customers who implement such measures. We also contribute to the public debate by drawing attention to damage prevention.

Natural disaster claims

With the help of weather data, we send text messages to customers who are likely to be affected by bad weather and flooding. The messages are based on official weather data and our customer data, so that we avoid distributing false alarms. Every year, we receive feedback from grateful customers who have had time to secure their assets thanks to these messages.

Health

Gjensidige offers sustainable solutions by facilitating and encouraging better health. This improves life quality and prevents illnesses and injuries. Mental health is an important focus area for Gjensidige. An increasing number of young people have mental health challenges that lead to their exclusion from the labour market. By offering low-threshold services, we can prevent mental health problems at an early stage. Among other things, we offer digital self-help programmes for mental health and an online psychologist who provides ad-

vice, guidance and help to young people. We have expanded the 24/7 health service to include preventive psychologist services and are piloting an online mental health service with couples therapy. During the coronavirus pandemic, we also developed and launched damage prevention services to address the mental health needs of all our Norwegian general insurance customers, including a self-help programme and a medical helpline that includes a psychologist.

Research collaborations

In order to ensure that our products and customer service maintain a high international level at all times, we collaborate with research institutions on innovation. In the period from 2015 to 2022, we are participating in a research collaboration with, among others, the University of Oslo, the University of Bergen and the Norwegian Computing Centre in order to gain new insight into the processing of large quantities of data (big data). The project includes risk pricing, forecast and trend analyses and insurance fraud.

We collaborate with the construction company Norgesbygg and the research institute SINTEF Community on the development of construction systems and processes that will enable climate adaptation of residential buildings. We collaborate with the Norwegian Computing Centre and support their work on a scientific article about the consequences of climate change, based on our claims data.

We have established a partnership with the Norwegian School of Economics (NHH) on the Digital Innovation for Growth (DIG) centre. DIG is a unique arena where, together with a range of different partners, we can contribute to applied science on how to better succeed with sustainable innovation and value creation.

Appendix 2021 205

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige Chapter 2 - This is us	38 14
Chapter 3 - We create a sense of security	41
Chapter 3 - A safer society because we Chapter 3 - Creating added value
understand risk in Gjensidige	42 38
Chapter 3 - Our social commitment Chapter 3 - We create a sense	50
Chapter 3 - Effect of our efforts: A safer society 51 of security	41
Chapter 3 - Our engaged employees Chapter 3 - Our motivated employees Chapter 3 - Climate and the environment 65	53 53
Chapter 3 - Climate and the environment Chapter 3 - Responsible investments	66 85
Chapter 3 - Responsible investments Chapter 3 - Good corporate governance	87 93
Chapter 3 - Good corporate governance	95
Chapter 4 - Financial statements Chapter 4 - Financial result	115 117
Financial statement including notes 2021 Chapter 5 - Notes	136
Appendix 2021	271

Content

Sustainable solutions for our customers

We will strengthen our position in all key areas relating to the needs of private and commercial customers, such as mobility, and security needs relating to property and health. Our pension services in Norway supplement and support our services in the Commercial segment. Successful innovations and best practices will continue to be shared across the Group. The use of sensor technology is a good example of both. We have gained valuable experience of this in the agricultural sector, which we will transfer to the Private segment in Norway.

Bærekraftige løsninger helse, eiendom og motor Processes to achieve sustainable solutions

Another example is our extensive knowledge about the type of water damage claims to expect going forward. We have valuable insight into the development of the scope of claims and have devised scenarios for where losses are expected to arise, all the way down to the building level. This gives us a unique opportunity to implement measures that can reduce the scope of damage. To reap the benefits of this, it is important that this know-how is taken into use in connection with the planning and zoning of new developments, as well as mitigating measures in built-up areas. We have also further developed our online medical assistance services, and our latest initiatives in the mobility area, through toll collection companies in Norway and car subscription services in Sweden, are examples of interesting new services that will contribute to our growth.

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige Chapter 2 - This is us	38 14
Chapter 3 - We create a sense of security	41
Chapter 3 - A safer society because we Chapter 3 - Creating added value
understand risk in Gjensidige	42 38
Chapter 3 - Our social commitment Chapter 3 - We create a sense	50
Chapter 3 - Effect of our efforts: A safer society 51 of security	41
Chapter 3 - Our engaged employees Chapter 3 - Our motivated employees Chapter 3 - Climate and the environment 65	53 53
Chapter 3 - Climate and the environment Chapter 3 - Responsible investments	66 85
Chapter 3 - Responsible investments Chapter 3 - Good corporate governance	87 93
Chapter 3 - Good corporate governance	95
Chapter 4 - Financial statements Chapter 4 - Financial result	115 117
Financial statement including notes 2021 Chapter 5 - Notes	136
Appendix 2021	271

Three focus areas to resolve private customers' everyday challenges

We have a highly competent sales team who handle 80 per cent of our sales. The purpose is to ensure that we offer customers relevant insurance policies. The members of our sales team acquire the necessary expertise at the Gjensidige Customer and Brand School.

The different roles on the team are specialised to deal with different types of customer dialogue supported by data and analytics. This is based on a centralised, data-driven CRM unit that optimises the customer journey across all channels. Using artificial intelligence and machine learning enhances our distribution power. The result is a high-quality, market-leading distribution system and strong customer satisfaction.

We have also developed a distribution model that attends to customer communication throughout the customer journey. Digitalisation and automation create a seamless, simple customer journey for customers, at the same time as we are available when they need us.

We develop a broader value proposition to assume a more relevant place in our customers' lives

Become a preferred problem solver and partner in mobility solutions.

Help customers to secure safe and good lives at home.

Help customers to secure pension, lives and good health.

We develop a broader value proposition to assume a more relevant place in our customers' lives.

From periodic inspections to continuous monitoring

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige Chapter 2 - This is us	38 14
Chapter 3 - We create a sense of security	41
Chapter 3 - A safer society because we Chapter 3 - Creating added value
understand risk in Gjensidige	42 38
Chapter 3 - Our social commitment Chapter 3 - We create a sense	50
Chapter 3 - Effect of our efforts: A safer society 51 of security	41
Chapter 3 - Our engaged employees Chapter 3 - Our motivated employees Chapter 3 - Climate and the environment 65	53 53
Chapter 3 - Climate and the environment Chapter 3 - Responsible investments	66 85
Chapter 3 - Responsible investments Chapter 3 - Good corporate governance	87 93
Chapter 3 - Good corporate governance	95
Chapter 4 - Financial statements Chapter 4 - Financial result	115 117
Financial statement including notes 2021 Chapter 5 - Notes	136
Appendix 2021	271

1.Competitor analysis/ customer satisfaction survey, 2021 (Ipsos)

We will explore new ways of reducing the risk of losses for commercial customers

We have an industry-specific risk management process that is well received by customers, and a large proportion of customers follow the damage prevention advice they are given. Going forward, we will develop the risk management process to be able to safeguard more customers and reduce the time between assessments. We aim to enhance the risk-reducing effects of the process and explore how to further protect the climate and environment as well as social factors.

Historically, damage prevention has been based on periodic inspections, supported by measures to reduce the scope of damage. Going forward, we see a shift towards continuous monitoring based on sensors, where customers are immediately notified of any defects, to allow them to prevent losses from occurring. We will explore new approaches to risk reduction, in close dialogue with partners and customers.

Gjensidige performs annual risk checks for a large number of commercial customers, among other things to check whether maintenance is satisfactory and reduce the risk of fire, water damage, weather events and other environmental damage. Damage reduction measures result in a discount in price.

Thermal imaging is a risk assessment tool that has uncovered thousands of faults and defects in agricultural electrical installations. Most fires are in fact due to problems with electrical installations. We now offer a solution where a sensor is installed in the fuse cabinet to continuously monitor the temperature. The owner is notified of any irregularities and changes in a mobile app, enabling them to check whether action is needed to stop a potential fire before it breaks out. We check whether customers have satisfactory systems for attending to their employees' health, safety and working environment. After the risk check, customers receive feedback on areas for improvement. Risk assessments are also decisive to the pricing of insurance. We select properties for risk checks in cooperation with our customers, perform surveys, review the result with customers and help them

-

Technology projects

Cloud solutions
Digital systems
New core system

• Analytical models

Automation of risk premium calculation
Customer assessment based on AI
External and real-time data

Enables profitable growth

Short time to market
Competitive pricing
Cost effective

Customer orientation

Customer insight
Digital solutions
Advanced CRM in customer dialogue

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige Chapter 2 - This is us	38 14
Chapter 3 - We create a sense of security	41
Chapter 3 - A safer society because we Chapter 3 - Creating added value
understand risk in Gjensidige	42 38
Chapter 3 - Our social commitment Chapter 3 - We create a sense	50
Chapter 3 - Effect of our efforts: A safer society 51 of security	41
Chapter 3 - Our engaged employees Chapter 3 - Our motivated employees Chapter 3 - Climate and the environment 65	53 53
Chapter 3 - Climate and the environment Chapter 3 - Responsible investments	66 85
Chapter 3 - Responsible investments Chapter 3 - Good corporate governance	87 93
Chapter 3 - Good corporate governance	95
Chapter 4 - Financial statements Chapter 4 - Financial result	115 117
Financial statement including notes 2021 Chapter 5 - Notes	136
Appendix 2021	271

Pricing capabilities

Include claims inflation in pricing
Analytical renewals

• Risk assessment customer

•

We further develop our technological capabilities

In 2021, we paid a total of NOK 4.4 billion in taxes to the countries we operate in.

Content

to establish better internal control procedures to ensure necessary damage prevention measures. Risk checks are important to ensure customer loyalty.

We further develop our technological capabilities

Access to relevant data, and the ability to utilise them in a meaningful way, is decisive to be able to understand risk and offer customers products and services that are relevant to create a sense of security.

We invest heavily in technological and analytical platforms so as to enhance our competitive advantages. The new IT core system that is being introduced in Denmark will contribute substantially to increased efficiency. The system will be gradually introduced in Sweden and then in Norway. We will continue to improve our analytical models, which, combined with our deep customer orientation and ability to price risk correctly, will allow us to continue to grow profitably.

Direct and indirect taxes

In accordance with Gjensidige's group policy for direct and indirect taxes, we take responsibility and contribute with considerable sums in the countries we operate in. Insurance companies are not required to calculate outgoing VAT, and cannot therefore make deductions for incoming VAT.

Incentives have been established in our procurement processes to encourage the use of local craftsmen who pay taxes. This is also intended to counteract unnecessary repairs and social dumping. See also Note 9 on tax.

New measures in 2022

Follow-up of the taxonomy and sustainable product development to meet the criteria for products with the highest premium income
Further development of sensor technology in the private and commercial markets
Further develop pension, health and life insurance solutions to safeguard businesses and their employees. Continued focus on the prevention of poor mental health for our customers.
Further develop damage prevention advice for commercial customers

-

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige Chapter 2 - This is us	38 14
Chapter 3 - We create a sense of security	41
Chapter 3 - A safer society because we Chapter 3 - Creating added value
understand risk in Gjensidige	42 38
Chapter 3 - Our social commitment Chapter 3 - We create a sense	50
Chapter 3 - Effect of our efforts: A safer society 51 of security	41
Chapter 3 - Our engaged employees Chapter 3 - Our motivated employees Chapter 3 - Climate and the environment 65	53 53
Chapter 3 - Climate and the environment Chapter 3 - Responsible investments	66 85
Chapter 3 - Responsible investments Chapter 3 - Good corporate governance	87 93
Chapter 3 - Good corporate governance	95
Chapter 4 - Financial statements Chapter 4 - Financial result	115 117
Financial statement including notes 2021 Chapter 5 - Notes	136
Appendix 2021	271

Our social commitment

Through involvement in the local community and sponsorships, Gjensidige and its employees participate in various activities for the purpose of contributing to a warmer society and supporting those who need help. Gjensidige has long contributed by supporting various social causes, especially those targeting children and young people.

Partnerships with MOT and Ungt entreprenørskap to strengthen work on mental health among young people

Gjensidige has earmarked NOK 25 million for a 3–5 year investment period in young people and their mental health. We will work on preventing poor mental health among young people.

In 2021, we have entered into partnerships with the non-profit organisations MOT and Ungt Entreprenørskap to support their work on providing content for the school subject Life Skills and MOT's work in sports. That way, we will help to provide around 200,000 children with tools to manage their own mental health. In addition, parents, teachers and coaches, who play the most important roles in children's lives, will be given an opportunity to increase their knowledge.

We support the Church City Mission's work on creating better and safer local communities. Gjensidige makes a financial contribution to the Church City Mission and participates in various activities that engage our employees. For example, employees from several of our offices all over the country contribute to the knitting campaign the organisation runs before Christmas every year. It aims to create a warmer society by raising money for a Christmas celebration for disadvantaged people.

In Lithuania, we have cooperated with the aid organisation Food Bank, which distributes food to the poor, since 2007. Gjensidige supports activities and encourages employees to take part in the distribution of food packages. We are a member of the 'For a Safe Lithuania'

campaign, the purpose of which is to give children from underprivileged families an increased sense of security and self-esteem. In Latvia, we are doing a tour of the biggest schools to teach children about safety in the home.

Partnership with the Norwegian Cancer Society

Our main partnership agreement entails a strategic cooperation with the Norwegian Cancer Society. For Gjensidige, the agreement gives us the possibility to develop unique services together, for example services that help to prevent cancer, or that can ease the situation for those affected and their next of kin. This is important, as cancer is the most widespread disease in Norway. About one in three Norwegians will be diagnosed with cancer before they turn 75.

We work together with sports organisations to improve the general state of health in Norway

Gjensidige is a proud sponsor of sports, and, through our cooperation agreements, we want to highlight the joy and many positive aspects of doing sports. By doing so, we hope to motivate people to be physically active. We sponsor both elite and recreational sport, and work with organisations that have a good reputation and share our values. The sponsorship agreements establish projects with different objectives. They are intended to benefit society, promote health or create activity and recruitment among young people. Sponsorship is important to Gjensidige because it also creates valuable profiling and positive associations with the company, in addition to strengthening the internal culture and pride among our staff.

Gjensidigestiftelsen Gjensidige's social commitment in Norway must be seen in conjunction with Gjensidigestiftelsen, our biggest owner. The foundation makes substantial security and health donations that are funded by the return on the capital freed up in connection with Gjensidige Forsikring being listed on the stock exchange in 2010.

Gjensidigestiftelsen is Norway's biggest financial foundation, with two main tasks: distributing donations for the public benefit and being the biggest owner of Gjensidige Forsikring ASA. Both are about creating a good life in a safe society.

https://www.gjensidigestiftelsen.no/prosjektoversikt/

As one of many projects, we can mention that we now include mental health as a topic in a mentor programme for young handball players and track and field athletes in cooperation with MOT. The project aims to prevent poor mental health in sports.

Take me to the report

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige Chapter 2 - This is us	38 14
Chapter 3 - We create a sense of security	41
Chapter 3 - A safer society because we Chapter 3 - Creating added value
understand risk in Gjensidige	42 38
Chapter 3 - Our social commitment Chapter 3 - We create a sense	50
Chapter 3 - Effect of our efforts: A safer society 51 of security Chapter 3 - Our engaged employees	41 53
Chapter 3 - Our motivated employees Chapter 3 - Climate and the environment 65	53
Chapter 3 - Climate and the environment Chapter 3 - Responsible investments	66 85
Chapter 3 - Responsible investments Chapter 3 - Good corporate governance	87 93
Chapter 3 - Good corporate governance Chapter 4 - Financial statements	95 115
Chapter 4 - Financial result	117
Financial statement including notes 2021 Chapter 5 - Notes	136
Appendix 2021 Appendix 2021	271 205

Effect of our efforts: A safer society

Principal figures A safer society	Unit	Targets	2021	2020	2019
Damage prevention
Risk discount for damage reduction measures	NOK mill.	NA	1 435	1 411
- Norway 1	Percent	NA	7.0	7.5
Risk checks
- Norway	Number	NA	3 071	4 232	3 000
- Denmark	Number	NA	2 297	1 500	2 000
Physical inpections 2
- Norway	Number	NA	500	500	1 000
- Denmark	Number	NA	288	1 900	2 500
Electrical inspections with thermal imaging 2
- Norway	Number	NA	3 460		3 000
- Denmark	Number	NA	620	1 000	400
Sustainability fund 3	NOK mill.	NA	7.7	2.8
Media stories on damage prevention 4
- Norway	Number	NA	1 650	1 450	1 719
- Denmark	Number	NA	1 193	1 197	1 009
Godtforberedt.no 5	Number in millions	NA	3.3	2.5	1.8

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38 14
Chapter 3 - We create a sense of security	41
Chapter 3 - A safer society because we Chapter 3 - Creating added value
understand risk in Gjensidige	42 38
Chapter 3 - Our social commitment Chapter 3 - We create a sense	50
of security	41 53
Chapter 2 - This is us Chapter 3 - Effect of our efforts: A safer society 51 Chapter 3 - Our engaged employees Chapter 3 - Our motivated employees Chapter 3 - Climate and the environment 65 53 Chapter 3 - Climate and the environment Chapter 3 - Responsible investments Chapter 3 - Responsible investments Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance
	66 85
	87 93
	95
Chapter 4 - Financial statements Chapter 4 - Financial result	115 117
Financial statement including notes 2021 Chapter 5 - Notes	136
Appendix 2021	271

Principal figures A safer society	Unit	Targets	2021	2020	2019	2018	2017
Customers
Customer satisfaction	Per cent	78 in 2022	78.8	78.5
Customer retention 6
Norway	Per cent	90 in 2022	90.6	90.4
Outside Norway	Per cent	85 in 2022	79.0	78.9
Digital customers 7	Per cent	88 in 2022	83	80	77	73	70
Straight-through claims processing 8	Per cent	64 in 2022	22	17	15
Digital claims reporting 8	Per cent	80 in 2022	80.1	79.8	73	63
Direct and indirect taxes, per country and total
Total direct taxes paid	NOK mill.	NA	1 933	1 185	798
- Norway	NOK mill.	NA	1 700	1 087	721
- Denmark	NOK mill.	NA	227	101	75
- Sweden	NOK mill.	NA	3	5	1
- Baltics	NOK mill.	NA	3	3	2
Total indirect taxes paid	NOK mill.	NA	2 475	536	506
- Norway 9	NOK mill.	NA	2 261	323	318
- Denmark	NOK mill.	NA	57	144	124
- Sweden	NOK mill.	NA	144	57	53
- Baltics	NOK mill.	NA	13	13	12

Principal figures A safer society	Unit	Targets	2021	2020	2019
Customers
Customer satisfaction	Per cent	78 in 2022	78.8	78.5
Customer retention 6
Norway	Per cent	90 in 2022	90.6	90.4
Outside Norway	Per cent	85 in 2022	79.0	78.9
Digital customers 7	Per cent	88 in 2022	83	80	77
Straight-through claims processing 8	Per cent	64 in 2022	22	17	15
Digital claims reporting 8	Per cent	80 in 2022	80.1	79.8	73
Direct and indirect taxes, per country and total
Total direct taxes paid	NOK mill.	NA	1 933	1 185	798
- Norway	NOK mill.	NA	1 700	1 087	721
- Denmark	NOK mill.	NA	227	101	75
- Sweden	NOK mill.	NA	3	5	1
- Baltics	NOK mill.	NA	3	3	2
Total indirect taxes paid	NOK mill.	NA	2 475	536	506
- Norway 9	NOK mill.	NA	2 261	323	318
- Denmark	NOK mill.	NA	57	144	124
- Sweden	NOK mill.	NA	144	57	53

Share of earned premiums offered as a rebate for damage reducing measures in the Norwegian portfolio. Rebates are offered for damage preventing measures in all geographies based on the measure's risk reducing effect.
Physical inspections and electrical inspections are primarily carried out for our biggest customers and customers with special risks. Inspections were also carried out in 2020, men there were challenges in providing reliable figures from FG-control ( Finans Norge). 3. The sustainability fund was established in partnership with the Norwegian Farmers' Union and awards funding for sustainability measures based on individual and group applications.
Media stories for the purpose of damage prevention.
Gjensidige's website with damage prevention advice available to customers and society at large.
Proportion of customers remaining after one year.
Share of digital customers, segment Private, Norway. For the remaining segments targets are set from 2022.
Proportion of customer contact via digital channels during claims processes. 9. The figure for 2021 includes an estimate of VAT paid in Norway of NOK 1.9 billion accrued on acquisitions related to operations and claims.

Insurance is exempt from VAT and the tax is thus a final cost.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security	41
Chapter 3 - Our motivated employees	53
Chapter 3 - Senior group management	60
Chapter 3 - Effect of our efforts:
Our motivated employees	62
Chapter 3 - Climate and the environment	66
Chapter 3 - Responsible investments	87
Chapter 3 - Good corporate governance	95
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271

employees

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Senior group management in Gjensidige	60 38
Chapter 3 - Effect of our efforts: Chapter 3 - We create a sense
Our motivated employees of security Chapter 3 - Our engaged employees	62 41 53
Chapter 3 - Climate and the environment Chapter 3 - Climate and the environment 65	66
Chapter 3 - Responsible investments Chapter 3 - Responsible investments	87 85
Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136
Appendix 2021 Chapter 5 - Notes	271

Our motivated employees

We take steps to achieve a stimulating and engaging working environment, to enable our employees to safeguard our customers' lives, health and assets. A safe, innovative and bold corporate culture that supports our strategic ambitions is decisive to our long-term value creation.

Topics of interest to our stakeholders	Our goals	Status of measures 2021
Our employees are concerned with secure workplaces that provide opportunities for meaningful work and for fulfilling their need for competence and career de velopment. Equal opportunities and rights are important.	Motivated employees Attract, develop and retain em ployees to be able to build an organisation for the future, with core values and the customer in	Established and carried out reskilling to meet competence challenges. Level of deliveries, willingness to change, high level of engagement and good
Engaged, motivated employees are decisive for value creation in the short and long term. The right expertise is decisive to be able to achieve the goals we have set.	focus. Diversity shall characterise our staff. Labour rights are safeguarded	management during the pandemic. Applied fresh thinking with employer branding measures and how we achieve competence development when all work processes are digital, as during
	through the freedom of association.	the pandemic.

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Senior group management in Gjensidige Chapter 3 - Effect of our efforts: Chapter 3 - We create a sense	60 38
Our motivated employees of security Chapter 3 - Our engaged employees	62 41 53
Chapter 3 - Climate and the environment Chapter 3 - Climate and the environment 65	66
Chapter 3 - Responsible investments Chapter 3 - Responsible investments	87 85
Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136
Appendix 2021 Chapter 5 - Notes	271

Work model of the future

The pandemic changed the way we work and created new habits and forms of interaction. In spring 2021, a project group was appointed with the task of finding out how we can make use of lessons learned from the pandemic. The project resulted in a small number of overarching guidelines, as exhaustive, detailed rules are not expedient in a company with many employees with different needs. It will be up to the managers and employees of the different departments to come up with ways of working that, within the framework of the guidelines, balance the need for office presence with employees' wish for flexibility. We have invested in equipment that facilitates digital interaction and will adapt the premises to a more hybrid work model. Our approach is based on the realisation that neither production nor employee engagement was negatively affected by extensive working from home during the pandemic. We nonetheless believe that, for the sake of employees' health and the company's need for innovation and longterm development of the corporate culture, regular presence in the office is required.

We apply new thinking to attract new expertise

Good customer experiences are at the core of the Group's strategy. In order to achieve our ambition, we need to attract, retain and develop motivated and engaged employees. Gjensidige has a flat organisational structure. Diversity skills and collaboration are important preconditions for building a culture for productivity and to remain attractive in the future labour market. Retaining critical expertise is an essential part of our risk assessment. We work on continuous employee development in which our employees have an opportunity to influence their own development.

We see an increasing risk of turnover after the pandemic and have implemented various measures to both attract and retain staff. We make efforts to highlight Gjensidige as an attractive employer, through both digital channels and activities at relevant educational institutions, such as stands and presentations to students. In accordance with our employer branding strategy, we have established an internship scheme where students work for us part-time, 20 per cent of a full-time position for a whole academic year, in order to

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gain relevant work experience. Every year, we organise the Gjensidige Day at Gjensidige's head office, which offers a varied programme for students. We have also tested summer interns in 2021. The arrangement provides us with attractive candidates who act as ambassadors for the company after their internship, which will make us more attractive in the short and long term.

We have managed to create attention and maintain our attractiveness despite a challenging situation during the pandemic. We have organised the simple, but ground-breaking concept 'Career walk with Gjensidige', which gave students at BI Norwegian Business School an opportunity to get to know Gjensidige as a potential employer by taking a walk with one of our employees.

The initiative was well received by the students, many of whom had experienced loneliness in connection with the pandemic. In 2021, the Gjensidige Day was organised as a digital event, at which 60 students were given an opportunity to learn more about us as a company and employer.

Strategies to meet future skills needs

Recruitment

External recruitment to meet skills needs
Internal recruitment to access specific expertise across the organisation
Targeted employer branding activities

Reskill – Internal mobility through reskilling

Reskilling of employees without relevant qualifications and/or experience, but with the right personal qualities and motivation.
Increased interdisciplinariness and business understanding.
Reduces undesirable turnover.

Upskill – Talent development and career planning

Facilitate continuous, relevant learning
Provide room for and structure further education and career development
Set development requirements for employees

Gjensidige has different development strategies and pursues a learning philosophy that highlights and recognises that most learning – 70 per cent – takes place in connection with day-to-day tasks. The remaining 30 per cent comes from organised tuition and training. Learning is organised along two tracks: reskilling and upskilling.

The Gjensidige Customer and Brand School ensures that all employees have the necessary prerequisites for implementing the Group's customer orientation strategy. The school's main focus areas are sales, claims settlement and management, in addition to strategic target groups. It offers courses and programmes that underpin our corporate strategy and requirements for certification of customer advisers. All new Gjensidige employees take part in an introduction day where the CEO and other key personnel talk about the Company's strategy, competence-building, culture, brand, ethics and more practical information.

Reskilling is also an important strategic measure to reduce the need for recruitment and create increased internal mobility. Podcasts and video meetings are among the tools used to effectively reach a wider audience with the greatest possible impact. Active use of e-learning and global learning portals such as Udemy provide targeted competence-raising adapted to the individual department's need for competence.

Reskilling initiatives

For the fourth year running, we have recruited employees for an internal reskilling programme for insurance specialists, this time for the position of Sales Manager Commercial, with start-up in the first quarter of 2022. The measure is considered essential to ensure insurance expertise for the future, and our ambition to enhance the attractiveness of the sales profession, create internal mobility and address the limited access to the expertise in question internally and externally.
Established analyst school in partnership with Academic Work for the purpose of reskilling employees with an existing understanding of business, creating more internal career paths and addressing the limited access to external expertise

$$56$$

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Senior group management in Gjensidige Chapter 3 - Effect of our efforts: Chapter 3 - We create a sense	60 38
Our motivated employees of security Chapter 3 - Our engaged employees	62 41 53
Chapter 3 - Climate and the environment Chapter 3 - Climate and the environment 65	66
Chapter 3 - Responsible investments Chapter 3 - Responsible investments	87 85
Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136
Appendix 2021 Chapter 5 - Notes	271

Competence development

Piloted digital version of the executive management programme 'Fremtidens lederskap' in partnership with AFF and NHH. The aim is to create an understanding of the changes that will be required of future managers. The first ordinary course started in 2021.
Completed new Assessment programme to professionalise talent and succession development.
New group of 48 participants in a Scandinavian mentor programme for managers and talents.

In addition to courses at the Gjensidige Customer and Brand School, employees can receive funding to attend other relevant courses, webinars and master's degree programmes. Talent development is a follow-up point for executive managers, and arrangements are in place to facilitate internal mobility and the mentor programme as a supplement to top talents' personal growth and development. The programme will help to promote Gjensidige's culture and contribute to internal exchange of experience across divisions and business areas. Customised management development programmes have been developed for groups of managers with different experience backgrounds, from newly appointed managers to the senior group management.

Partnerships with educational institutions are important for the development of competence and innovation, but also to highlight job opportunities.

We continue our strategic partnership with BI Norwegian Business School, which provides increased access to research, courses and programmes under BI's lifelong learning initiative and gives us exposure to students and the possibility of participating in various events at their places of study across the country. Through Advisory Councils for relevant master's degree programmes, we contribute relevant insight to enable the programmes to better meet the business sector's future need for expertise. Gjensidige also has a partnership agreement with the Norwegian School of Economics (NHH), in which we are the strategic partner for NHH's research programme 'Digital

Innovation for Growth'. The agreement includes an obligation to provide staff who can contribute their expertise.

In addition, these agreements give members of staff an opportunity to work with academic research groups on various issues of relevance to Gjensidige's further development. The agreements entail greater access to continuing education for employees.

Development measures

In the engagement survey, development possibilities are emphasised as a strength for the Company. A stable high score, 8.3 in 2021, among the top 10 per cent in the Finance category In Europe.

We work to ensure that all employees feel a sense of security and the freedom to be who they are, and through this help us to deliver on our core values: create a sense of security, apply new thinking, go for it. our managers shall understand the value of diversity, and integrate diversity management into their day-to-day work. We achieve this by, among other things, cultivating diversity and creating a learning organisation, for example training activities, a feedback culture and continuous organisational learning. Competence, good management and a strong corporate culture are key factors for succeeding. Thorough training in ethics, data protection, information security and knowledge about our products are essential elements of our training programmes in our own academy.

The right competence in the right place at the right time is vital to maintaining our competitiveness. To be able to live up to our vision, our employees must reflect the diversity of our customers.

We follow up our employees' job satisfaction and their experience of the work situation through the monthly dynamic engagement survey 'MyVoice'.

The results are updated continuously, are relevant, and provide a good basis for understanding and following up how employees perceive their work situation 'here and now'. 'My Voice' is an operative management tool that provides a basis for adjusting measures as needed

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Senior group management in Gjensidige Chapter 3 - Effect of our efforts: Chapter 3 - We create a sense	60 38
Our motivated employees of security Chapter 3 - Our engaged employees	62 41 53
Chapter 3 - Climate and the environment Chapter 3 - Climate and the environment 65	66
Chapter 3 - Responsible investments Chapter 3 - Responsible investments	87 85
Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136
Appendix 2021 Chapter 5 - Notes	271

to ensure the greatest possible effect. The HR Department follows up and implements measures for entities that deviate significantly from the goal of employee engagement and job satisfaction. The survey also provides us with strategic insight. Employee engagement is included in the follow-up and performance evaluation of all managers in the Group.

Work continues to develop broad diversity among our employees

Our equality and diversity programme is important. Efforts continue to develop a broad diversity among our employees and utilise this to create added business value. By drawing on each other's knowledge, skills, competencies and experience as a source of development and innovation, we can improve our ability to develop and deliver the services and products customers ask for.

Gjensidige focuses on the gender balance and increasing the percentage of women in senior positions. Diversity and an inclusive corporate culture shall help Gjensidige to become a more attractive, socially responsible employer for different stakeholders.

Signed the Women in Finance Charter to highlight our commitment to equality

There is zero tolerance of all forms of discrimination. Wage growth for women and men is continuously measured and followed up. Any unexplained differences that are identified receive special follow-up. The Diversity and Inclusion Committee convenes every quarter. The committee comprises representatives of the HR Department and the trade union. We have established a collaboration with Seema to increase our understanding of the importance of diversity and diversity management as a sustainable competitive advantage. Through the Women in Finance Charter, we have undertaken to set internal targets for our management-level gender balance.

Follow-up of goal attainment is integrated in the remuneration of managers.

Examples of other measures implemented in 2021:

In the course of the year, we have certified a further two diversity managers under the auspices of Seema and Standard Norge. We cooperate with NAV through the project 'Vi inkluderer' ('We include'), as part of the national initiative to promote inclusion.
We have carried out several culture-building and learning activities such as webinars, best practice interviews and articles on diversity and inclusion.
We have partnered with the ODA network; a non-profit organisation that has worked to promote more women and diversity in technology since 2005.
We have developed a conversational tool consisting of various templates that managers can use when talking to employees before, during and after a parental leave.
We offer webinars about how employees on leave can take care of themselves in terms of physical activity, exercise and rest. We work in a structured way on the activity and reporting obligation to uncover the risk of discrimination and barriers to equality, and implement necessary measures.
The Diversity and Equality Committee held four meetings in 2021.

Based on analytical insight and various strategies, we will attract, develop and retain the right competence for the future

Integrated employee engagement as an important element of bonus programmes for managers

Two People Review sessions are conducted per year in which the senior management is evaluated in terms of how well they succeed with management, competence building, diversity (including gender equality and equal pay) and strategic staff planning. Financial targets and sustainability goals are followed up in the Business Review, which is also conducted by the CEO twice a year. In the determination of the bonus for the CEO and the senior group management the achievement of financial and sustainability targets constitutes the basis.

A high response rate of 89 per cent, aggregated in the three last

rounds in December, and a stable high engagement score throughout the year show that Gjensidige is among the top 10 per cent in finance among Peakons customers in Europe.

Safeguarding of labour rights (ILO) and close cooperation with employee representatives are essential in the dialogue with employees

All of our employees have full freedom of association, and a large proportion of our employees are covered by collective agreements. Collective wage bargaining takes place in accordance with the agreement with the trade unions. Gjensidige recognises ILO conventions and supports the organisation's promotion of decent work based on social justice and internationally recognised labour rights.

The cooperation between the Company's management and the employees' trade unions is systematic and good, and it is based on a well-established structure with regular meetings of various committees. Rules have been adopted for what processes and decisions union representatives shall be involved in. Union representatives are paid by the Company.

Under Norwegian law, employees of the Group are entitled to be represented on the Company's governing bodies. Employee representatives are elected by and from among the employees. The company management maintains a close dialogue with union representatives in

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Senior group management in Gjensidige	60 38
Chapter 3 - Effect of our efforts: Chapter 3 - We create a sense
Our motivated employees of security Chapter 3 - Our engaged employees	62 41 53
Chapter 3 - Climate and the environment Chapter 3 - Climate and the environment 65	66
Chapter 3 - Responsible investments Chapter 3 - Responsible investments	87 85
Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136
Appendix 2021 Chapter 5 - Notes	271

connection with restructuring processes. The Company shall attend to those who are affected in the best possible way. This concerns everything from decisions, information, finding alternative positions in the Company, to offering assistance from external advisers and finding new jobs for those who are made redundant.

Health, safety and the environment (HSE) are given the highest priority, and various measures have been carried out for employees working from home during the pandemic

Systematic HSE work is given high priority in Gjensidige. We therefore work on preventing and following up sickness absence and on making adaptations for employees with disabilities. An ergonomic workstation assessment is carried out for all new employees as soon as possible by a physiotherapist or an occupational therapist. Special adaptation procedures have been adopted for employees who have or wish to prevent health problems arising. Our work on HSE is monitored through audits. All incidents that can represent a risk must be reported in the Company's nonconformity system. Independent HSE audits are conducted in Norway, Sweden and Denmark to verify satisfactory working conditions. Working environment issues are integrated in the annual HSE survey to identify matters requiring special attention. Each department defines an action plan that is followed up by the respective managers, at the same time as each department conducts an HSE risk assessment. Our goal is not only to prevent sickness absence and injuries, but also to ensure that Gjensidige is a health-promoting workplace.

Inclusive workplace

Gjensidige is an Inclusive Workplace enterprise. We use various benefit schemes from NAV to ensure that employees do not fall outside the labour market. Gjensidige has a range of measures and a special programme for entities with a high level of sickness absence. Our 'Focus projects' have had a great impact, leading to reduced sickness absence and greater employee satisfaction. Gjensidige has measures in place that help to ensure that older employees can continue working until they reach retirement age. The measures vary between countries. Examples of measures include the possibility of reduced

working hours and extra holidays. We endeavour to achieve universal design in all our office buildings. We cooperate with NAV on work training for people who, for various reasons, have been outside the labour market, with the goal of avoiding exclusion. See also our review in accordance with the activity and reporting obligation in Appendix 4.

The Company has a well-established internal and external notification channel for employees, customers and others

The HR Department has established procedures for following up notifications. All reports are reviewed and measures implemented as needed, with dismissal as the ultimate consequence for employees who have violated the Code of Conduct.

Gjensidige during the unusual year and after the pandemic

Gjensidige has had three focus areas during the Covid-19 crisis: to take social responsibility and prevent the spread of infection, to create a sense of security for our employees and to maintain growth and profitable operations. With security as an important objective, we have facilitated new forms of management and work from a distance. We have followed the official advice, monitored the infection trend closely and managed the office occupancy rate.

We have completed a risk assessment of the Company's infection control situation.
Dedicated questions in the employee survey relating to the coronavirus situation have given us insight into how employees perceived the information, security, cooperation and efficiency until society and offices were reopened.
The HSE survey conducted in the Nordic region in 2021 shows a high score for employees' satisfaction with the company's health, safety and environmental work.
Six HSE audits conducted; two in Norway, two in Sweden and two in Denmark.
Sickness absence remained stable throughout the year, with a slight reduction towards the end of the year. We also take a conscious approach to achieving a good work-life balance for our employees.

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Senior group management in Gjensidige	60 38
Chapter 3 - Effect of our efforts: Chapter 3 - We create a sense
Our motivated employees of security Chapter 3 - Our engaged employees	62 41 53
Chapter 3 - Climate and the environment Chapter 3 - Climate and the environment 65	66
Chapter 3 - Responsible investments Chapter 3 - Responsible investments	87 85
Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136
Appendix 2021 Chapter 5 - Notes	271

The following are examples of special HSE measures implemented during the pandemic

Infection control equipment and home office equipment made available to employees, and offer of digital ergonomic home workstation assessment.
Carried out digital cultural activities with a goal of building a culture and a sense of belonging across organisational boundaries.
Low-threshold psychosocial support available through the occupational health service.

Effect of measures in 2021:

Magnet Awards honours the best communication work in employer branding and recruitment in Norway.
Gjensidige received a bronze and silver, respectively, in the open category and the 'overall employer branding of the year' category.
Gjensidige is ranked in the top 50 in Universum's survey among professionals in IT, law and finances. In 2021, as before, Gjensidige was named the most attractive employer in insurance among economists.
Career programme aimed at retaining, developing, recognising and rewarding sellers in the Private division. In 2021, 199 participants completed Module 1, 180 completed Module 2, and 40 completed Module 3.
Carried out competence-raising measures for agile, customer-oriented development in the Private division, focusing on continuous improvement and innovation, including the seventh intake for Lean Green Belt certification 144 participants and Management Development 98 participants.
Throughout 2021, we have achieved a stable high score on the statement 'People from all backgrounds are treated fairly at Gjensidige'. The score in November 2021 was 9.1, up from November 2020.

Measures to be implemented in 2022

Continue measures to make adaptations to the work model of the future
New measures to reduce the risk of undesirable turnover post-pandemic

Silver medal to 'Career walk with Gjensidige' at the Magnet Awards and bronze medal for our comprehensive work on employer branding

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Senior group management in Gjensidige	60 38
Chapter 3 - Effect of our efforts: Chapter 3 - We create a sense
Our motivated employees of security Chapter 3 - Our engaged employees	62 41 53
Chapter 3 - Climate and the environment Chapter 3 - Climate and the environment 65	66
Chapter 3 - Responsible investments Chapter 3 - Responsible investments	87 85
Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136
Appendix 2021 Chapter 5 - Notes	271

Senior group management

Helge Leiro Baastad CEO

Helge Leiro Baastad (1960) has been CEO of Gjensidige since 2003.

He is a member of the board of Finance Norway and Kavli Holding AS.

Baastad joined Gjensidige in 1998 as manager of the private market, and in 2000, he was appointed Executive Vice President responsible for group marketing and support functions. He has previously held various senior management positions with Jordan AS and Denofa Lilleborg Fabrikker. Baastad holds an MSc EBA degree (siviløkonom) from the Norwegian School of Economics (NHH).

Jostein Amdal CFO Finance

Jostein Amdal (1965) has been CFO since 1 October 2016.

Amdal joined Gjensidige as director of finance in 2002, and has since served as Chief Risk Officer and Head of Capital Management and M&A. Before joining Gjensidige, he held various management positions with If, Storebrand and Kværner.

Amdal holds an MSc EBA degree (siviløkonom) as well as a graduate programme in economics and business administration (høyere avdeling), both from the Norwegian School of Economics (NHH).

Aysegül Cin EVP, Sweden and Baltics

Aysegül Cin (1981) has been Executive Vice President of the Swedish segment since 1 September 2018. Cin is Chair of the Board of ADB Gjensidige.

Cin joined Gjensidige in 2006 as a trainee. She has previously held several senior positions in the Group in the Private, Corporate Development, Strategy and M&A and Claims divisions, and most recently as Director of CRM and Digital Channels in the Commercial division.

Cin is a member of the board of Norsk Tipping. She holds an MSc in Industrial Economics and Technology Management (sivilingeniør) from the Norwegian University of Science and Technology (NTNU) and Karlsruhe University in Germany.

Janne Flessum EVP People, Strategy and Communication. (EVP Analytics, Product and Price as of 17 January 2022)

Janne Flessum (1971) has been Executive Vice President from 2018.

Flessum joined Gjensidige as Head of Investor Relations in 2011, and took over responsibility for M&A and Capital Management in 2016. She has previously served as an investment analyst and portfolio manager with Orkla, corporate finance adviser with Kreditkassen, and as an auditor with Coopers & Lybrand.

Flessum holds an MBA degree (siviløkonom) from BI Norwegian Business School.

René Fløystøl EVP Private

Rene Fløystøl (1981) has been Executive Vice President of the Private division since 1 June 2020.

Fløystøl joined Gjensidige in 2011 and has held several management positions in the Group. In the Private division, he has held positions such as Executive Vice President of Group Performance Management, the Customer Centre and, most recently, Digitalisation and Development.

Fløystøl holds an MBA degree (siviløkonom) from BI Norwegian Business School.

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Senior group management in Gjensidige	60 38
Chapter 3 - Effect of our efforts: Chapter 3 - We create a sense
Our motivated employees of security Chapter 3 - Our engaged employees	62 41 53
Chapter 3 - Climate and the environment Chapter 3 - Climate and the environment 65	66
Chapter 3 - Responsible investments Chapter 3 - Responsible investments	87 85
Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136
Appendix 2021 Chapter 5 - Notes	271

Lars G. Bjerklund EVP Commercial

Lars G Bjerklund (1971) has been Executive Vice President of the Commercial division since 1 September 2018.

He joined Gjensidige in 2003 and has held various senior management positions in the Group. In the last few years, he has been COO of General Insurance Sweden, claims director with responsibility for motor and travel claims, and managed the SME and agriculture segment of the Commercial division for several years.

Bjerklund holds a Master of Marketing and Management from the Norwegian School of Marketing (NMH), and an MBA from the Norwegian School of Economics (NHH).

Catharina Hellerud EVP Analytics, Product and Price (Chief Risk Officer as of

17 January 2022)

Catharina Hellerud (1968) has been Executive Vice President of Analytics, Product and Price since 2016 until 17 January 2022. She was also Chair of the Board of Gjensidige Pensjonsforsikring until January 2022.

Hellerud joined Gjensidige in 2007 as Head of IR and served as CFO from 2011 to 2016. She has previously held positions at Oslo Børs and as an accountant with Ernst & Young.

Hellerud is a member of the board of Mesta AS.

Hellerud is a state authorised public accountant from the Norwegian School of Economics (NHH) and holds an MBA degree (siviløkonom) from BI Norwegian Business School.

Mats C. Gottschalk EVP Denmark

Gottschalk joined Gjensidige in 2011 as EVP with responsibility for strategy and M&A. He has also been ECP Commercial. He was previously executive director in the Investment Banking Division of Goldman Sachs International, and has held various positions with J.P. Morgan in London.

Gottschalk holds an MSc in Industrial Economics and Technology Management (sivilingeniør) from the Norwegian University of Science and Technology (NTNU) and the University of St. Gallen.

Jørgen Ringdal EVP, adviser to the CEO

Jørgen Ringdal (1960) has been working as adviser to the CEO since 1 March 2021 and will continue until his agreed retirement on 1 May 2022.

Ringdal joined Gjensidige in 1996 and has held various executive positions in the Group since 1997, including as head of Organisation and HR, Group Staff/Shared Services and Finance. He has previously held senior management positions with Norges Bank and KPMG, among others.

Ringdal holds an MSc EBA degree (siviløkonom) from the Norwegian School of Economics (NHH) and is a state authorised public accountant.

Berit Nilsen EVP. People, Strategy and Communication as of 17 January 2022

Berit Nilsen (1973) has been Executive Vice President of People, Strategy and Communication in Gjensidige since 17 January 2022.

Nilsen joined Gjensidige in 2012, and has held several management positions at Group level, including Risk management, Economy- and Businesscontrolling and Group strategy. She has previously had several leading positions at Tryg and has also worked as an engineer in Aker.

Nilsen holds an MSc in Marine Engineering (sivilingeniør) at NTNU, and has a Master of Arts from the University of Oslo and Université Strasbourg in France.

Tor Erik Silset EVP Technology and Infrastructure

Tor Erik Silset (1976) has been Executive Vice President of Technology and Infrastructure since 1 June 2020.

Silset joined Gjensidige in 2005 from Deloitte Consulting. He has previously held a range of different roles and management positions in the Private and Commercial divisions and in Finance and Group Performance Management at group level, most recently as head of property/liability insurance in the Nordic region and national manager for Analysis, Product and Price in Denmark.

Silset holds an MBA degree (siviløkonom) from BI Norwegian Business School.

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Senior group management in Gjensidige	60 38
Chapter 3 - Effect of our efforts: Chapter 3 - We create a sense

Our motivated employees of security	62 41
Chapter 3 - Our engaged employees Chapter 3 - Climate and the environment Chapter 3 - Climate and the environment 65	53 66
Chapter 3 - Responsible investments Chapter 3 - Responsible investments	87 85
Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136

Effect of our efforts: Our motivated employees

Key indicators, sustainability
Employee engagement


Staffing (permanent employees)






Gender balance by employee category 5




Distribution by employment relationship

Principal figures, our employees	Unit	Targets	2021	2020	2019	2018	2017
Key indicators, sustainability
Employee engagement
Engagementsscore all employees 5	Score fra 1-10	> 8	8.3 7	8.5	7.9
Employees pursuid diversity 5	Score fra 1-10	> 8	9.2	9.1	8.8
Staffing (permanent employees)
Number of employees in the Group 4	Persons	NA	3 710	3 676	3 674	3 893	3 834
Gender distribution men/women 6	Per cent	<60/ >40	49/51	48/52	53/47	52/48	52/48
- Norway men/women	Per cent	<60/ >40	53.1/46.9	52.5 /47.5	52.8/47.2	51.9/48.1	52.7/47.3
- Denmark men/women	Per cent	<60/ >40	55.5/45.5	53.9 /46.1	52.8/47.2	53.3/46.7	53.4/46.6
- Sweden men/women	Per cent	<60/ >40	53.0/47.0	53.2 /46.8	52.8/47.2	54.0/46.0	54.1/45.9
- Baltics men/women	Per cent	<60/ >40	26.0/74.0	28/ 72	22.8/77.2
Gender balance by employee category 5
Senior group management, men/women	Per cent	<60/ >40	70/30	70/30	70/30	64/36	78/22
Other managers, men/women	Per cent	<60/ >40	61/39	61/39	62/38	63/37	64/36
No managerial responsibility, men/women	Per cent	<60/ >40	47/53	48/52	51/49	51/49	51/49
Gender distribution men/women in executive positions (level 1 & 2) Per cent		<60/ >40	70/30	66/34	70/30	69/31	73/27
Distribution by employment relationship
- Permanent employees	Per cent	NA	76.2	81.0	81.8	79.6	81.7
- Temporary replacement	Per cent	NA	4.9	5.0	5.3	5.4	4.6
- External consultant	Per cent	NA	16.7	12.0	9.0	10.2	8.2
- Temporary replacement from agency	Per cent	NA	2.2	2.0	3.9	4.8	5.5

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Senior group management in Gjensidige	60 38
Chapter 3 - Effect of our efforts: Chapter 3 - We create a sense

Our motivated employees of security	62 41
Chapter 3 - Our engaged employees Chapter 3 - Climate and the environment Chapter 3 - Climate and the environment 65	53 66
Chapter 3 - Responsible investments Chapter 3 - Responsible investments	87 85
Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136

Permanent employees by country 6





New employees, age and gender






Age composition and gender, all employees

Principal figures, our employees	Unit	Targets	2021	2020	2019	2018	2017
Permanent employees by country 6
- Permanent employees, Norway, men/women	Persons	NA	1087/960	1043/942	1021/920
- Permanent employees, Denmark, men/women	Persons	NA	418/335	400/342	382/341
- Permanent employees, Sweden, men/women	Persons	NA	116/103	132/116	140/125
- Permanent employees, Baltics, men/women	Persons	NA	183/524	196/502
- Permanent employees, total, men/women	Persons	NA	2145/1581	1771/1905
New employees, age and gender
- New employees, age < 20, men/women	Persons	NA	0/0	3/1	0/0	0/0	1/3
- New employees, age 20–29, men/women	Persons	NA	52/34	40/38	66/45	62/44	85/43
- New employees, age 30–39, men/women	Persons	NA	62/38	60/32	55/36	53/34	51/65
- New employees, age 40–49, men/women	Persons	NA	32/25	32/31	24/26	31/34	33/14
- New employees, age 50–59, men/women	Persons	NA	19/10	11/10	8/5	11/16	1/3
" - New employees, age > 60, men/women	Persons	NA	2/0	0/1	0/1	1/1	1/0
Age composition and gender, all employees
- Age < 20, men/women	Persons	NA	0/0	3/1	0/0	0/0	1/4
- Age 20–29, men/women	Persons	NA	182/158	188/173	231/172	242/177	272/190
- Age 30–39, men/women	Persons	NA	450/382	429/376	404/381	421/423	457/432
- Age 40–49, men/women	Persons	NA	451/378	446/385	425/382	477/404	457/416
- Age 50–59, men/women	Persons	NA	358/357	354/351	346/342	363/375	378/356
- Age > 60, men/women	Personer	NA	180/123	155/114	144/110	138/110	105/86
Gender distribution, Board	Per cent	NA	40.0	40.0	50.0
Turnover	Per cent	NA	8.1	7.9	10.9	12.2	10.6

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Senior group management in Gjensidige	60 38
Chapter 3 - Effect of our efforts: Chapter 3 - We create a sense

Our motivated employees of security	62 41
Chapter 3 - Our engaged employees Chapter 3 - Climate and the environment Chapter 3 - Climate and the environment 65	53 66
Chapter 3 - Responsible investments Chapter 3 - Responsible investments	87 85
Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136

Salary 5

Average pay by country and gender

- Norway men/women NOK

Womens' share of mens' salary, all employees

-

Unit	Targets	2021	2020	2019	2018	2017


NOK	NA	797.130/ 694.554	768.627/ 662.341	726.671/ 605.963	725.235/ 608.211	694.595/ 583.810
DKK	NA	665.835/ 550.511	649.250/ 536.382
SEK	NA	668.985/ 622.341	603.459/ 585.682
Prosent	NA	14.7%/ 12.6%

Per cent	NA	87.1	87.4	86.0	83.9	84.1
Per cent	NA	82.7	84.4	116.7
Per cent	NA	93.0	96.8	96.8
Per cent	NA	73.5
Per cent	NA	92.0

Hours	NA	89 329	56 131	36 785	41 874	48 720
Number	NA	58 650	29 207
Hours	NA	31	20
NOK	NA	12 800	15 300
Per cent	NA	74.1 %	73.3 %	70.1 %

Persons	NA	2 638	886	489	88	1 068
Persons	NA	3 398	308	2 553
Persons	NA	3 490	329	571	191	246

Competence development

Number of employees with completed e-learning courses in anti-money laundering, ethics and security

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Senior group management in Gjensidige	60 38
Chapter 3 - Effect of our efforts: Chapter 3 - We create a sense

Our motivated employees of security	62 41
Chapter 3 - Our engaged employees Chapter 3 - Climate and the environment Chapter 3 - Climate and the environment 65	53 66
Chapter 3 - Responsible investments Chapter 3 - Responsible investments	87 85
Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136

Competence development cont.
Authorised advisers	Persons	NA

Authorization person insurance	Persons	NA	367
Analysts with completed further education	Persons	NA	183

Health, safety, the environment

Principal figures, our employees	Unit	Targets	2021	2020	2019	2018	2017
Competence development cont.
Authorised advisers	Persons	NA
Authorization general insurance	Persons	NA	415	406	373	396
Authorization person insurance	Persons	NA	367	105
Analysts with completed further education	Persons	NA	183
Hours of training of frontline customer staff	Hours	NA	25 064	25 064	25 064	25 064	25 064
Health, safety, the environment
Sickness absence	Per cent	NA	3.1	3.7	3.9	3.8	3.9
- Norway men/women	Per cent	NA	2.2/4.8	2.9/4.7	3.3/6.2	3.0/6.2	2.7/6.4
- Denmark men/women	Per cent	NA	1.8/3.0	1.4/2.6	1.7/3.8	2.0/3.8	2.2/4.3
- Sweden men/women	Per cent	NA	1.0/3.7	1.5/3.7	1.8/4.1	2.2/4.4	2.3/3.6
- Baltics men/women	Per cent	NA	1.3/3.7	0.2/0.2	2.8/7.2
Parental leave, days of absence - men/women	Per cent	NA	29/71	29/71	30/70	23/77	26/74
Parental leave, gender distribution, number of persons	Per cent	NA	50/50	48/52	50/50	49/51	50/50
Absence due to child sickness, men women (Nordic countries)	Per cent	NA	41/59	48/52	39/61	39/61	41/59

Changed method of calculation from course days to cours hours, from 2020. One course days equ. 7 hours. 2. The numbers in this overview are based on the mandate of the Gjensidige academy in three countries, including digital learning related to the roll-out of WOW365. The numbers also include time used on training of frontline customer staff, but not the time used by employees on external courses. 3. Cost per employee for competence development is based on the Gjensidige academy's budget and includes costs related to external courses for the employees. The indirect costs incurred by training related to WOW365 are not included in the calculation. The average number of course hours per employee is the total number of course hours divided on the number of permanent employees. 4. The figures for the number of employees concern persons with permanent employment, for all years. For 2021, the number of full time equvialents (FTE) is estimated to be 3 637. 5. Numbers excl. Baltics.
2021 and 2020 group figures, 2019-2017 group figures ex Baltics.
Among top 10 pct. within finance in Europe, among Peakon's customers.

	Chapter 1 - We are Gjensidige	2
	Chapter 2 - This is us	14
	Chapter 3 - Value creation in Gjensidige	38
	Chapter 3 - We create a sense of security	41
	Chapter 3 - Our motivated employees	53
	Chapter 3 - Climate and the environment	66
	Chapter 3 - Ambitious goals for emission cuts
	in our own operations	69
	Chapter 3 - Lowest possible climate footprint
	and take social responsibility	70
	Chapter 3 - We create value in partnership
	with our suppliers	72
	Chapter 3 - Our follow-up of the EU taxonomy 73
	Chapter 3 - Climate-related financial
	disclosures (TCFD)	74
	Chapter 3 - Effect of our measures:
	Climate and the environment	84
	Chapter 3 - Responsible investments	87
	Chapter 3 - Good corporate governance	95
Chapter	Chapter 4 - Financial result	117
	Financial statement including notes 2021	213

Appendix 2021 271

environment

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige	2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Climate and the environment in Gjensidige	66 38
Chapter 3 - Ambitious goals for emission cuts Chapter 3 - We create a sense
in our own operations of security	69 41
Chapter 3 - Lowest possible climate footprint Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 and take social responsibility	70
Chapter 3 - We create value in partnership Chapter 3 - Responsible investments	85
Chapter 3 - Good corporate governance with our suppliers	72 93
Chapter 3 - Our follow-up of the EU taxonomy 73
Chapter 3 - Climate-related financial Chapter 4 - Financial statements	115
disclosures (TCFD)	74
Chapter 3 - Effect of our measures: Chapter 5 - Notes
Climate and the environment	84
Appendix 2021 Chapter 3 - Responsible investments	205 87
Chapter 3 - Good corporate governance	95
Chapter Chapter 4 - Financial result	117
Financial statement including notes 2021	213
Appendix 2021	271

Climate and the environment

Although Gjensidige's activities do not pollute the natural environment, we are affected by climate and nature-related risk both in terms of an expected increase in claims, new regulations and changed risk in our investments. We are concerned with helping our customers to understand the consequences, allowing them to make the necessary adaptations.

Topics of interest to our stakeholders	Our goals	Status of measures 2021
Climate and nature-related risk has become more relevant to our stakeholders, especially commercial customers. More stringent official regulations affect general insurance. Employees are concerned with meaningful work and with contributing to solutions that reduce climate and environmental challenges.	Sustainable products Eighty per cent of premium income from products covered by the EU taxonomy for general insurance shall be sustainable by 2025. Sustainable claims settlements	• We have adopted updated goals for sustainable products and are working on integrating the EU's taxonomy require ments for climate adaptation in our most important products. • We have reduced our emissions relating to claims settle ments by 26 per cent since 2019. • We have reduced emissions from our operations by 84 per
	Thirty-five per cent reduction in GHG emissions by 2025, compared with 2019.	cent, compared to the base year 2019, and compensated the rest with carbon offsets. • Climate risk and possibilities for insurance and investments
	Reduce our own climate footprint and buy carbon offsets We shall reduce the climate footprint of our operations by 75 per cent by 2025, and compensate the rest with carbon offsets.	are described in the appendix 'Financial consequences of climate change – TCFD'.

Chapter 1 - We are Gjensidige
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Creating added value Chapter 3 - Climate and the environment in Gjensidige	66 38
Chapter 3 - Ambitious goals for emission cuts Chapter 3 - We create a sense
in our own operations of security	69 41
Chapter 3 - Lowest possible climate footprint Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 and take social responsibility	70
Chapter 3 - We create value in partnership Chapter 3 - Responsible investments	85
Chapter 3 - Good corporate governance with our suppliers	72 93
Chapter 3 - Our follow-up of the EU taxonomy 73
Chapter 3 - Climate-related financial Chapter 4 - Financial statements	115
disclosures (TCFD)	74
Chapter 3 - Effect of our measures: Chapter 5 - Notes
Climate and the environment	84
Appendix 2021	205
Chapter 3 - Responsible investments	87
Chapter 3 - Good corporate governance	95
Chapter
Chapter 4 - Financial result	117 213
Financial statement including notes 2021
Appendix 2021

Our goal of reduced emissions requires a commitment in all parts of the business

Seen in isolation, general insurance has a limited climate footprint, but we can influence our customers, suppliers and the companies we invest in to reduce their emissions and implement climate adaptation measures and reducing the nature risk.

We have established ambitious goals of reducing emissions from our own activities. This means that we will still focus on reducing direct emissions from company cars, using renewable energy and reducing the amount of travel. We compensate for the rest of our emissions by supporting GHG reduction and social sustainability projects.

We make structured efforts in the value chain of our insurance activities. Relevant know-how and insight is decisive to be able to reduce emissions, contribute to climate adaptation and be considerate of the environment. We are continuously developing our understanding of risk to ensure that our customers are provided with relevant services and products that safeguard the climate and environment in the best way possible. We are working on innovative products and services that will help to ensure a much smaller climate footprint from general insurance and help to reduce GHG emissions from the use of materials in claims processes. To achieve this, we need to further develop our terms and conditions and cooperation with our suppliers. We are also concerned with ensuring that our suppliers demonstrate social responsibility, and therefore require them to comply with the UN Global Compact principles. Our requirements for compliance with human and labour rights shall also be based on the provisions of the Transparency Act. See a more detailed description at www.gjensidige.no.

The new ambition of net zero emissions by 2050 also affects our investment activities. We will continue working on reshaping our investment portfolio so that it becomes net zero by 2050. Our policy for responsible investments has been updated in line with this goal, and we will adapt the portfolio to achieve the net zero target by 2050

GHG emission reduction targets supporting the Paris Agreement (max. 1.5 C0 global temperature rise)

By 2025: 80 per cent of premium income from sustainable products.

Emissions relating to claims settlements reduced by 35 per cent.

Insurance portfolios

Emission production based on scientific goals.

Compensated by carbon offsets from 2020.

Own operations

Gradual transition to zero emissions by 2050.

Investment portfolios

Chapter 1 - We are Gjensidige
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Climate and the environment in Gjensidige	66 38
Chapter 3 - Ambitious goals for emission cuts Chapter 3 - We create a sense
in our own operations of security	69 41
Chapter 3 - Lowest possible climate footprint Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 and take social responsibility	70
Chapter 3 - We create value in partnership Chapter 3 - Responsible investments	85
Chapter 3 - Good corporate governance with our suppliers	72 93
Chapter 3 - Our follow-up of the EU taxonomy 73
Chapter 3 - Climate-related financial Chapter 4 - Financial statements	115
disclosures (TCFD)	74
Chapter 3 - Effect of our measures: Chapter 5 - Notes
Climate and the environment	84
Appendix 2021 Chapter 3 - Responsible investments	205 87
Chapter 3 - Good corporate governance	95
Chapter Chapter 4 - Financial result	117
Financial statement including notes 2021
Appendix 2021

Environmental and energy-efficient operations As a certified Eco-Lighthouse, we use an environmental management system for our own operations and premises. An annual environmental report is prepared that documents the status of implemented environmental measures, as well as action plans for the coming year. The offices must be recertified every three years. We were recertified most recently in 2021. Annual reporting and regular recertification ensure that our offices live up to the highest standards for environmentally friendly operations. This includes setting environmental requirements of our suppliers, having measures to reduce energy and water consumption, and reducing emissions associated with our internal activities. In addition, it means working to minimise waste, ensuring that we sort our waste, and reducing travel that involves GHG emissions. In order to ensure that we impact the environment as little as possible, all our 11 Norwegian offices that have more than 30 employees are certified Eco-Lighthouses. Eco-Lighthouse is a national environmental certification scheme run by the Eco-Lighthouse Foundation and corresponds to an ISO certification. The foundation was established by key organisations in the private and public sector. In addition, our Danish head office holds a silver certificate in accordance with the DGNB Green Building Council Denmark. Gjensidige did not cause illegal emissions or receive fines or other sanctions relating to the environment in 2021.

Certified Eco-Lighthouse

Scope 1: Direct emissions

We have established a policy that entails that CO2 emissions from company cars cannot exceed 130 grams per kilometre. At our head office, we have three electric cars that employees can use, which reduces the use of fossil fuel vehicles. Our premises are located close to public transport, and employees are encouraged not to drive to work.

Scope 2: Energy consumption

We make systematic efforts to reduce our impact on the natural environment by limiting our consumption of energy. All our premises are rented, and when finding new premises, we give priority to climate and environmental considerations. Our head office at Schweigaardsgate 21 is certified to BREEAM-NOR Excellent standard.

Scope 3: Travel and waste

Lockdown was one of the things that characterised 2021. We have achieved a 78 per cent reduction in air travel compared with the base year 2019. Waste is recycled in accordance with Eco-Lighthouse requirements. Digitalisation targets have been set for the customer dialogue in order to reduce the amount of paper used, and computers that are not used by our employees are sold to contribute to recycling. A total of 90 per cent of discarded computers are reused in cooperation with a supplier (84 per cent in 2020). Mobile phones are reused in the organisation as far as possible, and the rest are safely recycled.

Ambitious goals for emission cuts in our own operations

Gjensidige aims to cut emissions in its own operations and to compensate for the rest with VER carbon offsets. Gjensidige has been a climate compensated company since 2020. See our sustainability policy, which includes our climate and environmental responsibility, at www.gjensidige.no/group/about-us/sustainability.

We have cut 5 980 tonnes of CO₂e/84 per cent in our own operations since 2019

Chapter 1 - We are Gjensidige
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Climate and the environment in Gjensidige	66 38
Chapter 3 - Ambitious goals for emission cuts Chapter 3 - We create a sense
in our own operations of security	69 41
Chapter 3 - Lowest possible climate footprint Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 and take social responsibility	70
Chapter 3 - We create value in partnership Chapter 3 - Responsible investments	85
Chapter 3 - Good corporate governance with our suppliers	72 93
Chapter 3 - Our follow-up of the EU taxonomy 73
Chapter 3 - Climate-related financial Chapter 4 - Financial statements	115
disclosures (TCFD)	74
Chapter 3 - Effect of our measures: Chapter 5 - Notes
Climate and the environment Appendix 2021	84 205
Chapter 3 - Responsible investments	87
Chapter 3 - Good corporate governance Chapter	95
Chapter 4 - Financial result 117
Financial statement including notes 2021
Appendix 2021

Lowest possible climate footprint and take social responsibility

Preventing losses is our number one priority. When claims nonetheless arise, Gjensidige shall help customers as quickly as possible and in our claims processes we strive to choose materials with a lower climate footprint. We take social responsibility by following up that customers are satisfied and that our suppliers comply with our requirements.

Gjensidige's customer satisfaction score is high among customers who have reported a claim. Good emergency preparedness, digitalised claims settlements and automated payments have contributed to cost-effective settlements. Gjensidige is a major purchaser at the local level, and collaborates with external partners to retain any residual value in insurance claims. Objects that were previously discarded are now increasingly kept for repair and resale, including household contents and other movable property such as bicycles, computers, music systems, TVs, handbags, national costumes etc.

We look for solutions that retain residual value in even more cases.

Reduced material consumption relating to claims settlements by 168 tonnes compared with 2020.
Changed limit for scrapping from 60 per cent to 80 per cent of the price of a new car. As a result, we repair more cars and reduce the amount of waste. The initiative was very well received by the car industry and other insurance companies, and quickly became the industry standard.
The share of reuse in motor claims is relatively unchanged from 2020, but several pilots have been initiated to increase the share towards 2025.

Compensation of property and household contents claims
When a claim is reported, we make sure that our customers feel safe
and well-informed about the choices recommended. Gjensidige has
an extensive network of local assessors in every country, who assess
the scope of damage. When replacing the loss, materials are chosen
based on social factors, the environment and financial durability. Lo
cal assessors and the use of video surveys mean there is less need to
travel, both for customers and assessors. Gjensidige cooperates with
other contracted suppliers and representatives of industry organisati
ons to find new, sustainable solutions for customers and the environ
ment, including by reducing waste and transport.

The measures we work on include:

More stringent requirements of our most important suppliers for reporting on compliance with human rights, labour rights, climate footprint and anti-corruption.
The use of video in inspections/surveys.
New mobile phone repair partner to ensure extended service life and reuse.
Testing of sensor technology (water and fire).
Point repair.
Handling of residual value (we cooperate with Miko Trading, Panter Verdisikring AS and GIAB to ensure recycling and promote the circular economy).
Nordic Swan Ecolabel rebuilding after total loss of private homes
Five per cent environmental dividend if the building becomes BRE-EAM NOR certified to a 'Very Good' standard or better.

Compensation of motor claims

Repairing damage to and covering losses for cars and other vehicles represent a large percentage of Gjensidige's claims incurred and a substantial part of our climate footprint. This is an area in which we wish to achieve sustainable solutions. The proportion of repairs and reuse of car parts is a topic in every country we operate in. We cooperate with car dismantlers that contribute to ensuring that, when a car is condemnated the resources are recycled and used in new products. The measures we work on include: • Reuse of car parts has long been a priority and is still of central im-

portance to promoting environmental responsibility and reducing the cost of second-hand parts where expedient (Norway has the most expensive parts and the lowest consumption of second-hand parts in Europe).
New projects have been initiated to increase the use of secondhand car parts, reduce the number of condemnated cars, increase

We have cut 10 941 tonnes of CO2e/ 26 per cent in our claims processes since 2019

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security	41
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment	66
Chapter 3 - Ambitious goals for emission cuts
in our own operations	69
Chapter 3 - Lowest possible climate footprint
and take social responsibility	70
Chapter 3 - We create value in partnership
with our suppliers	72
Chapter 3 - Our follow-up of the EU taxonomy 73
Chapter 3 - Climate-related financial
disclosures (TCFD)	74
Chapter 3 - Effect of our measures:
Climate and the environment	84
Chapter 3 - Responsible investments	87
Chapter 3 - Good corporate governance	95
Chapter Chapter 4 - Financial result	117
Financial statement including notes 2021
Appendix 2021	271

the use of car window repairs and increase the repair rate in accor dance with our sustainable repairs model – 'Smart Repair'.

Contributing to increased employment in garages.
From 2022, Gjensidige will also compensate for emissions rela ting to claims settlements for private car insurance, in the form of support for emission reduction and social sustainability projects.

Waste from property and motor claims

Waste relating to claims settlements leads to relatively low emissi ons, but the amount of waste in itself is considerable. In the countries Gjensidige operates in, arrangements are in place for responsible ma nagement and recycling in public waste management schemes. Con demnated cars are sold to professional car breakers who decompose and resell car parts and materials such as steel and aluminium, which are then used as input in new products.

For example:

2.946 tonnes of aluminium resold to partners
5.699 tonnes of steel resold to partners
Waste from water and fire damage handled with the help of our partners, subject to stringent requirements

Measures to be implemented in 2022

Increasing the total loss guarantee threshold from 60 to 80 per cent in order to reduce the number of condemnated cars from 1 January 2022
Emissions from private car insurance claims settlements compensated by offsets from 1 January 2022
New requirements related to the environment and social conditions in our framework agreements with our property suppliers.

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Climate and the environment in Gjensidige	66 38
Chapter 3 - Ambitious goals for emission cuts Chapter 3 - We create a sense
in our own operations of security	69 41
Chapter 3 - Lowest possible climate footprint Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 and take social responsibility	70
Chapter 3 - We create value in partnership Chapter 3 - Responsible investments	85

Chapter 3 - Good corporate governance with our suppliers	72 93
Chapter 3 - Our follow-up of the EU taxonomy 73
Chapter 3 - Climate-related financial Chapter 4 - Financial statements	115
disclosures (TCFD)	74
Chapter 3 - Effect of our measures: Chapter 5 - Notes
Climate and the environment	84
Appendix 2021 Chapter 3 - Responsible investments	205 87
Chapter 3 - Good corporate governance	95
Chapter Chapter 4 - Financial result	117
Financial statement including notes 2021	213

We create value in partnership with our suppliers

Gjensidige's requirements for procurement processes are set out in the Group procurement policy, which applies to Gjensidige Forsikring ASA and all its subsidiaries. All our suppliers must sign a self-declaration on corporate social responsibility that requires compliance with the 10 UN Global Compact principles.

Our suppliers confirm that they will:

Ensure that guidelines relating to internationally recognised principles for human and labour rights are complied with and that suppliers follow up their sub-suppliers of goods and/or services.
Ensure that products delivered to Gjensidige are of high environmental quality, that the precautionary principle is complied with and that environmental technology has been implemented as far as possible.

Gjensidige expects manufacturers and suppliers to conduct their business in accordance with the 10 UN Global Compact principles. The principles cover human rights, labour rights, the environment and anti-corruption. Read more on our website. competition takes place on equal terms. All material procurements are ordered electronically. As far as possible, all suppliers shall use electronic invoicing. Competitive tender procedures are carried out with the help of digital

• Compliance with ethical requirements, including anti-corruption. There is a greater focus on reuse and the circular economy in our procurements. We set stringent environmental and quality requirements of the choice of materials, and demand reuse as far as possible. The choice of materials shall never be at the expense of safety. All suppliers must answer questions about the environment, employment conditions, ethics and their requirements of subcontractors. The companies are then given a score and feedback on points for improvement. Compliance with our requirements is monitored, and we enter into dialogue to get suppliers to remedy shortcomings. Failure to do so is considered breach of contract.

portals. The use of digital tools ensures that all processes are documented and verifiable, prevents irregularities and reduces the consumption of paper.

Companies that provide services in connection with claims payments for damaged buildings in Norway must be certified in Startbank. Startbank is a register of suppliers that is used by purchasers in the fields of building, construction, public administration, insurance and real estate. This ensures that qualified suppliers are law-abiding and that The vast majority of procurements are made locally. This means that, as far as possible, our partners/suppliers are available in the area where a need has arisen or a loss occurred. No suppliers have been excluded on the basis of screening, but everyone receives feedback on areas for improvement based on scores for ESG status reporting.

We follow up our most important suppliers' compliance with the self-declaration on corporate social responsibility through the recognised EcoVadis portal.

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Climate and the environment in Gjensidige	66 38
Chapter 3 - Ambitious goals for emission cuts Chapter 3 - We create a sense
in our own operations of security	69 41
Chapter 3 - Lowest possible climate footprint Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 and take social responsibility	70
Chapter 3 - We create value in partnership Chapter 3 - Responsible investments	85
Chapter 3 - Good corporate governance with our suppliers	72 93
Chapter 3 - Our follow-up of the EU taxonomy 73
Chapter 3 - Climate-related financial Chapter 4 - Financial statements	115
disclosures (TCFD)	74
Chapter 3 - Effect of our measures: Chapter 5 - Notes
Climate and the environment Appendix 2021	84 205
Chapter 3 - Responsible investments	87

Chapter 3 - Good corporate governance	95
Chapter Chapter 4 - Financial result	117
Financial statement including notes 2021	213

Our follow-up of the EU taxonomy

In line with the EU taxonomy for sustainable economic activities, we will work on adapting relevant products and services to meet the criteria for sustainable non-life insurance. By 2025, 80 per cent of the products and services that fall within the scope of the taxonomy shall meet the criteria for sustainable non-life insurance.

The taxonomy regulations are still under development. We follow this closely, and are prepared to make necessary adjustments along the way. Our assessment is that the following criteria in the EU taxonomy are relevant to us, and will further develop measures to meet these:

Gjensidige uses a forward-looking modelling of climate risk as the basis for pricing.

In partnership with the Norwegian Computing Centre, we have conducted analyses that combine claims data with weather data and climate projections to arrive at a better basis for tariffs and correct pricing going forward. In 2021, Gjensidige has funded a piece of scientific work on precipitation that is based on these analyses. We aim to further develop the use of such scenarios and analyses to achieve the best possible basis for pricing.

Our insurance products contain incentives for damage prevention measures.

Gjensidige already offers discounts to customers who carry out risk reduction and damage prevention measures. It is our ambition to offer more damage-reducing products and services going forward.

We develop innovative insurance coverage that meets climate adaptation requirements.

Gjensidige already offers products and services linked to climate-related claims, for example natural disasters and operational disruptions. New products and services are at the core of the Group's strategy of being the customer's 'damage-preventing problem-solver'.

Systems have been established for sharing data and know-how with public authorities in the areas we operate in.

Gjensidige shares claims data and knowledge about the consequences of climate change with the Norwegian authorities in cooperation with Finance Norway. We also share claims data with the Danish and Swedish authorities on demand, especially relating to property. We will accommodate any requests for additional sharing of claims data, in line with the taxonomy's specifications.

Gjensidige has a long-standing tradition of having the highest standards for claims settlements, especially in the Norwegian market.

Gjensidige provides close follow-up and helps customers when claims arise. Of minor claims, 80.1 per cent are reported online. We have an emergency response and test system that ensures customers receive the help they need in a disaster situation.

Gjensidige is concerned with reducing emissions, and since 2019, emissions from claims processes have been reduced by 10,941 tonnes of CO2 equivalents (CO2e). We support reuse and the circular economy, which is also one of the environmental objectives of the EU taxonomy. We have reduced waste relating to claims settlements by 732 tonnes, compared with 2019.

The investment portfolio

The taxonomy is also relevant to our investments, and we will consider them in relation to the requirements and report when data from investment activities are made available, from 2023 at the latest. The requirement for sustainability in our investment activities has been key, and we will reshape our portfolio towards net zero emissions by 2050.

See the chapter on responsible investments for a more detailed review of this.

70/100 of earned premiums estimated to be EU taxonomy eligible.

Content

2
14
2 38
41 14

53
66 38

69 41
53
Chapter 3 - Climate and the environment 65 70
85
Chapter 3 - Good corporate governance 72 93
Chapter 3 - Our follow-up of the EU taxonomy 73
115
74

84
205 87
95

117
213
271

Climate-related financial disclosures (TCFD)

Climate change affects Gjensidige's core business through increased physical risks, transition risks and liability risks. Gjensidige will help to ensure that we, our partners and customers work to achieve the cli mate goals of the Paris Agreement and reduce nature-related risk.

Summary

Gjensidige is concerned with raising awareness of effective climate measures that help to re duce GHG emissions. Climate risk and opportunities are considered on the basis of the three categories physical, transition and liability risks, and affect all types of risk at Gjensidige.

Gjensidige endorsed the TCFD in 2020 to show our support of the work on ensuring that climate-related information becomes more widely available in society.
Gjensidige has signed the UN Environmental Principles for Finance and the Principles for Sustainable Insurance (UN PSI), and will contribute to increased transparency and rele vant information.
The material consumption in claims processes has been calculated for frequency motor and property claims to highlight GHG emissions in Scope 3.
In the investment portfolio, emissions have been calculated for the property portfolio. We work to be able to report the carbon intensity of other investment portfolios as well.
Gjensidige achieved climate neutrality in its own operations in 2020 by buying carbon offsets. We make continuous efforts to reduce our direct and indirect greenhouse gas emissions.
The corporate management bonus programme is linked to the degree of sustainability goal attainment, including the development in carbon intensity.

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige Chapter 3 - Value creation in Gjensidige	2 38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Creating added value Chapter 3 - Climate and the environment in Gjensidige Chapter 3 - Ambitious goals for emission cuts Chapter 3 - We create a sense	66 38
in our own operations of security	69 41
Chapter 3 - Lowest possible climate footprint Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 and take social responsibility	70
Chapter 3 - We create value in partnership Chapter 3 - Responsible investments	85
Chapter 3 - Good corporate governance with our suppliers	72 93
Chapter 3 - Our follow-up of the EU taxonomy 73
Chapter 3 - Climate-related financial Chapter 4 - Financial statements	115
disclosures (TCFD)	74
Chapter 3 - Effect of our measures: Chapter 5 - Notes
Climate and the environment	84
Appendix 2021 Chapter 3 - Responsible investments	205 87
Chapter 3 - Good corporate governance	95
Chapter Chapter 4 - Financial result	117
Financial statement including notes 2021	213
Appendix 2021	271

Climate risks

Physical risks

Changes in value arising from physical damage as a result of climate change – both acute and chronic. May arise as a result of natural disasters or long-term developments causing negative changes in value for properties and companies.

Transition risks

Financial risk arising from the transition to a low-emission society. Sectors with high greenhouse gas emissions may face challenges relating to policies and regulation, for example from higher emission costs. At the same time, support may be granted for competing technologies. This will represent a risk for owners of fossil energy, among others.

Liability risks

Financial risk relating to financial liability/claims for compensation for losses due to climate change. An underlying company that is held accountable for its negative environmental impact, for example through a climate lawsuit, may face major claims for compensation, which may negatively affect the value of the company.

1. Corporate governance

Division of responsibility

Climate risk is integrated in Gjensidige's corporate governance. The risk of weather-related events has always been integrated in pricing models and asset management. Climate risk affects multiple areas, and Gjensidige is directly exposed in both the insurance portfolio and the investment portfolio. The greatest risk in the investment portfolio is deemed to be transition risks. In a broader, more long-term perspective, climate risk also has the potential to affect insurance risk, financial risk, operational risk and business and strategic risk.

A clear division of responsibility has been established between the Board, the CEO and the rest of the organisation. A sustainability council has been set up to advise the corporate management team, and to ensure consistent management of climate risk in the Group. The council is chaired by the Head of Sustainability.

Board of Directors – adopts sustainability goals and strategy (management responsibility), and follows up the status of measures and their effect (supervisory responsibility).

CEO – implements the sustainability strategy throughout the Group, follows up goal attainment status and reports the status of measures and their effect to the Board.

EVPs and heads of subsidiaries – implement the sustainability strategies and measures at segment level.

Sustainability council – interdisciplinary team tasked with following up measures and their effect throughout the Group to ensure goal attainment.

Follow-up of climate risk

The Board reviews climate-related issues as part of the corporate strategy, and a dedicated sustainability strategy is being drawn up, specifying how the goals are to be achieved. Climate risk is also integrated in the Own Risk And Solvency Assessment (ORSA), and capital needs are reported to the Board in a five-year perspective.

The individual core areas are responsible for following up climate and environmental risk as part of their day-to-day operation, and for contributing to the attainment of relevant measures. A quarterly sustainability report based on input from the core areas is prepared for the purpose of monitoring the status of measures. The sustainability council and the corporate management receive a quarterly sustainability report, and the Board is informed of the status. The Head of Sustainability convenes meetings on at least a quarterly basis, or as needed.

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Climate and the environment in Gjensidige	66 38
Chapter 3 - Ambitious goals for emission cuts Chapter 3 - We create a sense
in our own operations of security	69 41
Chapter 3 - Lowest possible climate footprint Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 and take social responsibility	70
Chapter 3 - We create value in partnership Chapter 3 - Responsible investments	85
Chapter 3 - Good corporate governance with our suppliers	72 93
Chapter 3 - Our follow-up of the EU taxonomy 73
Chapter 3 - Climate-related financial Chapter 4 - Financial statements	115
disclosures (TCFD)	74
Chapter 3 - Effect of our measures: Chapter 5 - Notes
Climate and the environment Appendix 2021	84 205
Chapter 3 - Responsible investments	87
Chapter 3 - Good corporate governance Chapter	95
Chapter 4 - Financial result	117
Financial statement including notes 2021
Appendix 2021	271

2. Gjensidige's climate strategy

Insurance largely consists of one-year contracts that enable the Company to change prices and coverage as the need arises. In simplified terms, one could say that increased insurance risk as a result of climate change is not necessarily negative for insurance companies, since increased claims payments will be compensated by higher premiums or changes in coverage.

In a longer-term perspective and not least from a societal perspective, significantly higher claims payments as a result of climate change will be problematic, as it may ultimately lead to insurance premiums becoming too expensive or to certain areas not being insurable in practice.

More knowledge about consequences is very important to be able to put a price on risk. In cooperation with the Norwegian Computing Centre, Gjensidige has therefore combined recognised climate models with claims data, and started work on assessing climate consequences in the short, medium and long term.
Gjensidige is also monitoring the results of public agencies' climate change assessments. In the countries where Gjensidige has operations, more precipitation is expected in the form of rain, and rising sea levels in the long term, which will increase the risk of damage.
Climate risk will increase the need for expertise in the investment community, and knowledge about any transition risks in the investment portfolio.
Climate risk is a key issue in the cooperation with fund managers

Inform	Increase knowledge about the consequences of climate change for our customers, suppliers and society at large. Use this know ledge to develop targeted damage prevention measures.

Interact	Cooperate with customers and suppliers/partners to be able to deliver sustainable solutions. Monitor our own carbon footprint through continuous follow-up.

Invest	Invest in competence-building for our employees, customers and suppliers/partners. Make sure that our financial investments are socially responsible.

Threat

If insurance contracts fail to reflect increased climate risk, this can have negative consequences for the underwriting result. Different risks can become so great that they are no longer insurable, resulting in loss of business and customers having to carry the risk themselves.

Opportunity

Correct risk pricing and insurance terms can increase Gjensidige's business volume and earnings. With the use of data and expertise, Gjensidige can prevent damages.

Threat

New risks arise as a result of the green transition, and because it is difficult to identify more long-term consequences of the transition.

Opportunity

We understand the consequences of the green transition and price new risks correctly, and act as a driving force in the transition process.

Chapter 1 - We are Gjensidige
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Climate and the environment in Gjensidige	66 38
Chapter 3 - Ambitious goals for emission cuts Chapter 3 - We create a sense
in our own operations of security	69 41
Chapter 3 - Lowest possible climate footprint Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 and take social responsibility	70
Chapter 3 - We create value in partnership Chapter 3 - Responsible investments	85
Chapter 3 - Good corporate governance with our suppliers	72 93
Chapter 3 - Our follow-up of the EU taxonomy 73
Chapter 3 - Climate-related financial Chapter 4 - Financial statements	115
disclosures (TCFD)	74
Chapter 3 - Effect of our measures: Chapter 5 - Notes
Climate and the environment Appendix 2021	84 205
Chapter 3 - Responsible investments	87
Chapter 3 - Good corporate governance	95
Chapter Chapter 4 - Financial result 117
Financial statement including notes 2021
Appendix 2021

Opportunity

We understand risks and adapt our terms and conditions to ensure that the insurance risk is acceptable.

Physical risks – Threats and opportunities

Transition risks – threats and opportunities

Liability risks – threats and opportunities

Threat

Risk of more lawsuits as a consequence of product liability or board liability.

Content

a. Climate-related threats and opportunities

We believe that climate risk will have a widespread impact and affect the economy in many ways in all the areas we operate in. This will affect our stakeholders and their need for products, but climate risk will probably affect different products and risk types differently in terms of both time and scope.

Climate change will lead to both threats and opportunities in the short, medium and long term. The greatest uncertainty is associated with transition risks, because they lie further ahead in time and the consequences of technological development and consumer behaviour are difficult to predict.

Climate change will impact the whole value chain and the choice of methods and materials in claims settlements. Several initiatives have been launched that will contribute to more recycling and promote the circular economy.

The investment portfolio is considered to be most exposed to transition risks. An important part of our climate strategy is therefore to raise the level of awareness and expertise to be able to understand climate-related threats and opportunities so that stakeholders gain a good understanding of financial risk going forward.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security	41
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Ambitious goals for emission cuts	66
in our own operations	69
Chapter 3 - Lowest possible climate footprint
and take social responsibility	70
Chapter 3 - We create value in partnership
with our suppliers	72
Chapter 3 - Our follow-up of the EU taxonomy 73
Chapter 3 - Climate-related financial
disclosures (TCFD)	74
Chapter 3 - Effect of our measures:
Climate and the environment	84
Chapter 3 - Responsible investments	87
Chapter 3 - Good corporate governance	95
Chapter Chapter 4 - Financial result	117
Financial statement including notes 2021
Appendix 2021	213 271

b. Climate risk for Gjensidige in the short, medium and long term

Climate change will have different consequences for Gjensidige's products and investments in the short, medium and long term. The assessment is based on the RCP 8.5 scenario for global warming, and is marked with letter and numerical codes explained below. RCP 8.5 is considered an unlikely high-risk scenario and is used because it is recommended by the Norwegian authorities. 'M' is market risk, 'I' is insurance risk and 'O' is operational risk. The colour describes the type of climate risk.

Insurance risk

The most important climate risks impacting the insurance portfolio:

I1: Property, physical risks: The risk of a higher claims frequency and claims for payment as a result of increased torrential rain and flooding. We have already seen significant consequences in the form of insuran ce claims relating to weather events.

I2: Property, transition risks: Changed risk exposure and insurance ne eds among our customers. When the weather changes, and legislation, markets and trends change to accommodate the demands of a future zero-emission society, our understanding of risk must be updated and reflected in our products and terms and conditions. Tariffs must be updated continuously. The time horizon depends on the product type and risk assessment. -

I6: Agriculture: Increased risk of losses as a result of flooding, lands lides and drought. Increased frequency of claims relating to crop and animal diseases as a result of new diseases and migrating species. A warmer climate will extend the growth period and have a positive effect on crops in the Nordic region.

Chapter 1 - We are Gjensidige
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Climate and the environment in Gjensidige	66 38
Chapter 3 - Ambitious goals for emission cuts Chapter 3 - We create a sense
in our own operations of security	69 41
Chapter 3 - Lowest possible climate footprint Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 and take social responsibility	70
Chapter 3 - We create value in partnership Chapter 3 - Responsible investments	85
Chapter 3 - Good corporate governance with our suppliers	72 93
Chapter 3 - Our follow-up of the EU taxonomy 73
Chapter 3 - Climate-related financial Chapter 4 - Financial statements	115
disclosures (TCFD)	74
Chapter 3 - Effect of our measures: Chapter 5 - Notes
Climate and the environment Appendix 2021	84 205
Chapter 3 - Responsible investments	87
Chapter 3 - Good corporate governance	95
Chapter Chapter 4 - Financial result 117
Financial statement including notes 2021
Appendix 2021

Market risk

Transition risks are considered most important to the investment portfolio as a result of consequences of more stringent regulation and carbon emission requirements, a different cost situation and market-related changes, all of which will affect the return on investments. The IPCC scenarios (RCP 2.6, 4.5 and 8.5) indicate different degrees of transition risks, but physical risks will also be significant in RCP 8.5.

The most important climate risks impacting the investment portfolio:

M1: Property, physical risks: Investments in property exposed to multiple weather events due to climate changes incurring increased expenses for adaptations to avoid losses, but also to ensure that property is insurable. The degree of exposure in Gjensidige's properties is currently low, and there is little risk of them becoming stranded assets, but it will be an important factor in future investments.

M2: Regulation, transition risks: More stringent emission requirements entail an increased risk of loss in the value of investments that fail to meet the requirements, and a corresponding increase in the value of investments that quickly adapt to the requirements. A substantial proportion of Gjensidige's investments is currently in renewable energy, and we are cautious about entering sectors exposed to climate risk.

M3: Technological development: Gjensidige sees both opportunities and threats relating to which companies and business models are able to utilise technology.

It has been assessed whether any of the assets can be said to be stranded assets, without this having been the case. Stranded assets are assets that have reduced or no value before the expiry of the originally assumed useful life as a result of changes in external conditions.

Operational risk

Climate risk will affect the Company in many ways, and all core areas, from pricing, product development, customer dialogue to claims settlement, will require new follow-up procedures. Some of the risks that have been assessed are described below:

O1: Gjensidige's liability risks: Lawsuits against Gjensidige and losses incurred by others as a result of the Company's activities.

O2: Method for pricing, underwriting and provisions: Changes in the frequency and size of claims must be integrated in price models to ensure correct pricing.

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14

	Chapter 1 - We are Gjensidige	2
	Chapter 3 - Value creation in Gjensidige	38
	Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
	Chapter 3 - Our motivated employees	53
	Chapter 3 - Creating added value Chapter 3 - Climate and the environment in Gjensidige	66 38
	Chapter 3 - Ambitious goals for emission cuts Chapter 3 - We create a sense
	in our own operations of security	69 41
	Chapter 3 - Lowest possible climate footprint Chapter 3 - Our engaged employees	53
	Chapter 3 - Climate and the environment 65 and take social responsibility	70
	Chapter 3 - We create value in partnership Chapter 3 - Responsible investments	85
	Chapter 3 - Good corporate governance with our suppliers	72 93
	Chapter 3 - Our follow-up of the EU taxonomy 73
	Chapter 3 - Climate-related financial Chapter 4 - Financial statements	115
	disclosures (TCFD)	74
	Chapter 3 - Effect of our measures: Chapter 5 - Notes
	Climate and the environment	84
	Appendix 2021 Chapter 3 - Responsible investments	205 87
	Chapter 3 - Good corporate governance	95
Chapter	Chapter 4 - Financial result	117
	Financial statement including notes 2021	213
Appendix 2021		271

c. Assessment of consequences of climate scenarios

Gjensidige has chosen to apply the most conservative scenario – RCP 8.5 – in its assessment of climate consequences in the short, medium and long term.

Although there is agreement on climate change, great uncertainty is attached to transition risks, especially in the long term. Increased knowledge will probably enable the population, the business sector and the authorities to make adaptations to both avoid and reduce risk.

Climate and weather-related claims currently make up a limited part of Gjensidige's total claims incurred. Although certain effects are identified for certain types of claims in the short term, the changes are expected to take place gradually and with the greatest effect from 2050. Transitional risks are expected to be most significant in the investment portfolio, but our exposure to the industries that are expected to be hit the hardest is currently limited.

Scenario RCP 8.5

The no-action scenario is recommended by the Norwegian authorities as the basis for calculations, and also provides a good indication of the consequences we must expect if the measures fail to have the desired effect. The effect of floods as a result of increased precipitation and less snow will change gradually up until 2100 and is estimated as follows:

Reduced spring flood: 50 per cent
Increased autumn flood: up to 60 per cent

Scenario up until 2100 – Norwegian Computing Centre

The project with the Norwegian Computing Centre has looked specifically at projections of water damage due to external factors. Natural damage, as defined in the Natural Damage Act (such as floods and storm surges), is not included because the pricing and distribution of such claims are subject to special regulation.

Loss projections based on climate model data up until 2100 show that total claims payments will increase in most of the country. While some counties will see a gradual increase throughout the period, others will have a relatively flat or negative development up until 2050, followed by an increase.
For Norway as a whole, the claims development is expected to be fairly stable up until 2050, before it is expected to increase by 40 per cent towards 2100.
In the former counties of Hedmark, Buskerud, Vestfold, Telemark and Vest-Agder, an increase in total claims payments of approximately 50 per cent is expected towards the end of the century.
For the former counties of Østfold, Akershus and Sogn og Fjordane, the projections show an increase of 70 per cent during the same period.
A corresponding mapping is planned for Denmark as well.
Insights from the project will be used in research and knowledge development. Among other things, a scientific article has been written that will be submitted for publication in the Journal of the Royal Statistical Society, and the models used in the project are now considered relevant also for other European countries.

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Climate and the environment in Gjensidige	66 38
Chapter 3 - Ambitious goals for emission cuts Chapter 3 - We create a sense
in our own operations of security	69 41
Chapter 3 - Lowest possible climate footprint Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 and take social responsibility	70
Chapter 3 - We create value in partnership Chapter 3 - Responsible investments	85
Chapter 3 - Good corporate governance with our suppliers	72 93
Chapter 3 - Our follow-up of the EU taxonomy 73
Chapter 3 - Climate-related financial Chapter 4 - Financial statements	115
disclosures (TCFD)	74
Chapter 3 - Effect of our measures: Chapter 5 - Notes
Climate and the environment Appendix 2021	84 205
Chapter 3 - Responsible investments	87
Chapter 3 - Good corporate governance Chapter	95
Chapter 4 - Financial result
Financial statement including notes 2021
Appendix 2021	271

3. Risk management Identification and assessment of climate risk

Good risk selection and the right pricing are decisive for financial strength and profitability. The expected increase in the scope of natural disasters as a result of environmental and climate change is addressed in our activities, such as the development of products, financial planning, pricing, rebuilding and damage prevention measures. Environmental and climate change affects risk assessments and the pricing of insurance, and the effects of extreme weather and changes in risk exposure are assessed on a continuous basis, based on experience, expert assessments and future projections.

Climate and environmental risk affects all risk types

Management of climate risk

Gjensidige has joined forces with the Norwegian Computing Centre to be able to understand the consequences of expected climate change. The results of this work will be used for the pricing of risk going forward. By sharing claims data, Gjensidige also contributes to increasing knowledge about the long-term development in claims resulting from climate change. Gjensidige shall guide its customers into taking the environment, weather events and social factors into account both before and after a loss, for example in connection with the reinstatement of buildings. This means lower insurance premiums for our customers and beneficial consequences for the environment, customers and Gjensidige.

Integration into established risk management processes

Weather-related events have always been an important factor in risk pricing, both when developing tariffs and in connection with underwriting in the commercial market.
We purchase reinsurance for the purpose of distributing risk and as protection against large-scale events. We also team up with our partners to ensure a correct understanding of risk, and for the purpose of reporting.
We monitor all products on an ongoing basis to ensure profitability and consider the need for repricing.
The Own Risk and Solvency Assessment (ORSA) considers total risk exposure in relation to the capital situation going forward.
The actuary conducts independent assessments to ensure sufficient provisions.
All decision-making processes include an assessment of sustainability, for example strategic projects or product development processes.

Gjensidige's response to physical risks

Close monitoring of developments in weather-related events to ensure correct pricing of risk.
Risk reduction measures focusing on surface water issues, notification of customers and cooperation with the authorities to reduce the consequences of more weather-related claims.
Reinsurance limits Gjensidige's losses relating to major weatherrelated events. Gjensidige's internal model is used to assess the effect of different natural disasters and climate-related losses. Analyses have been conducted that show that Gjensidige's financial losses resulting from what are known as 1-in-200-year events will be limited, even if more conservative assumptions about the frequency of such claims are applied.
In Norway, many natural disaster claims are compensated through the Norwegian Natural Perils Pool, which is regulated by the Natural Perils Insurance Act. Membership of the Pool is compulsory for all insurance companies that sell property insurance (fire insurance) in Norway. The Pool is an equalisation mechanism whereby claims and costs are distributed between the member companies in proportion to their share of the market. The following natural perils are covered by the Pool: storms, landslides/avalanches, floods, storm surges, earthquakes and volcanic eruptions. In accordance with the pertaining regulations, each natural disaster claim will only be covered up to a certain amount, which limits Gjensidige's losses relating to such claims. As of 1 January 2020, the insurance companies' total liability for an individual natural disaster claim is limited upwards to NOK 16 billion. Because Gjensidige will only be charged corresponding to its share of the market and the Company has taken out reinsurance for natural disaster claims, Gjensidige's losses relating to such claims will be very limited.

Gjensidige's response to transition risks

In the longer term, Gjensidige expects transition risks to impact all segments of insurance.We believe that people's awareness and attitudes can change, and that this can mean that Gjensidige must adapt its operations accordingly. Sustainable alternatives to all our main products will therefore be developed by 2025. This type of development is expected to be gradual, allowing Gjensidige to adapt its products and services to the market over time.
The Commercial segment and investments may be subject to considerable transition risk. EU action plans may give rise to new risks and opportunities for us. The EU has a clear ambition to en-

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Climate and the environment in Gjensidige	66 38
Chapter 3 - Ambitious goals for emission cuts Chapter 3 - We create a sense
in our own operations of security	69 41
Chapter 3 - Lowest possible climate footprint Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 and take social responsibility	70
Chapter 3 - We create value in partnership Chapter 3 - Responsible investments	85
Chapter 3 - Good corporate governance with our suppliers	72 93
Chapter 3 - Our follow-up of the EU taxonomy 73
Chapter 3 - Climate-related financial Chapter 4 - Financial statements	115
disclosures (TCFD)	74
Chapter 3 - Effect of our measures: Chapter 5 - Notes
Climate and the environment Appendix 2021	84 205
Chapter 3 - Responsible investments	87
Chapter 3 - Good corporate governance	95
Chapter Chapter 4 - Financial result	117
Financial statement including notes 2021	213
Appendix 2021	271

courage increased recycling and promote the circular economy, and to limit the amount of waste. Gjensidige will contribute to achieving the EU goals by reducing its carbon footprint through a greater focus on damage prevention and the choice of materials in claims processes.

• Gjensidige's strategy entails net zero emissions in the investment portfolio by 2050 and including ESG and climate risk in all our decisions and investment analyses. Gjensidige uses external tools such as the Paris Agreement Capital Transition Assessment (PACTA) for scenario analyses and stress testing to gain a better understanding of climate risk in the investment portfolio. Read more about how Gjensidige follows up its investment strategy in the chapter 'Responsible investments'.

Gjensidige's response to liability risks.

We have reinsurance coverage although our liability in damages relating to lack of climate action is limited as a result of maximum amount limits.

4. Goals and methods

Insurance is a knowledge business that does not directly affect the environment to any material extent. However, we can help to achieve a more sustainable society by reducing our own climate footprint and use our market power in relation to our suppliers and in our investments.

Goal

The Board has adopted an ambition for a 35 per cent reduction in CO2e in claims processes by 2025, and for net zero GHG emissions in the investment portfolios by 2050. In addition, emissions associated with our own operations will be continuously reduced for Scope 1, 2 and 3, and emissions that are not cut will be compensated by recognised carbon offsets.

Methods

Gjensidige has been certified as an Eco-Lighthouse since 2008, and works continuously on measures to reduce the environmental and climate-related consequences of its own operations. Most of the carbon footprint for Gjensidige's own operations comes from energy consumption (Scope 2) and air travel by own employees (Scope 3).

Climate accounts for claims processes

Gjensidige has prepared climate accounts for the consumption of materials and energy in claims processes (Scope 1, 2 and 3) and to be able to measure carbon intensity. We would like to initially assess different initiatives to promote the circular economy, for example

more repairs, reuse, reduced waste and different measures for reducing transport costs and more climate and environmentally friendly reconstruction.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security	41
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment	66
Chapter 3 - Ambitious goals for emission cuts
in our own operations	69
Chapter 3 - Lowest possible climate footprint
and take social responsibility	70
Chapter 3 - We create value in partnership
with our suppliers	72
Chapter 3 - Our follow-up of the EU taxonomy 73
Chapter 3 - Climate-related financial
disclosures (TCFD)	74
Chapter 3 - Effect of our measures:
Climate and the environment	84
Chapter 3 - Responsible investments	87
Chapter 3 - Good corporate governance	95
Chapter Chapter 4 - Financial result	117
Financial statement including notes 2021	213

Appendix 2021 271

Model for calculating the material consumption in claims processes

Gjensidige shall make proactive efforts to reduce the carbon intensity of its claims processes. That requires in-depth insight into material con sumption in insurance claims where Gjensidige compensates losses. In order to be able to calculate the materials consumed in fairly complex processes that involve many suppliers and partners, models have been devised based on the material consumption for the most common claims (frequency claims), for the purpose of converting material consumption into CO 2 equivalents (CO 2e). Models have been prepared for three types of claims, which will form the basis for a normalised result in the climate accounts for claims processes (Scope 3).

The calculation of total material consumption does not provide an exact and exhaustive figure, but, based on a materiality assessment, we belie ve it gives the best estimate of current consumption. The material consumption is calculated in tonnes and converted into CO 2e with the help of licensed software for the conversion of material consumption: DEFRA (2021). Greenhouse gas reporting: Conversion factors. Department for Bu siness, Energy & Industrial Strategy, and NVE Electricity disclosure 2021. The material consumption models shall be evaluated annually to ensure that they continue to provide the best estimate of material consumption in claims processes

Material consumption, frequency motor claims

Material consumption, frequency property claims

The assumptions behind this average calculation of material
consumption are based on car makes and models with a high
market share, and frequency claims.
The reference claim is estimated in the loss assessment system
DBS, which is operated by Bilskadekontoret ('the car claims office'),
part of Finance Norway Insurance Services, and shows the actual use
of materials for motor vehicles. Separate assessments of frequency
claims have been conducted in Denmark, Sweden and the Baltics.
The following materials are included in the claims climate accounts:
• Glass
• Steel
• Aluminium
• Plastic
• Batteries
• Reuse of car parts based on estimate
• The use of new car parts generates an equivalent amount
of recyclable waste
• Scrapping waste is based on recycling of materials such
as glass, aluminium and steel
Vehicle write-offs are settled in cash. To ensure we have the right
theoretical basis for calculating Gjensidige's material consumption,
we have assumed, based on the official registration system (TFF),
that 22 per cent of scrapped cars are replaced by new cars (28 per
cent in 2019)

The following assumptions were used in the calculation of average
material consumption and waste generated for fire and water damage
frequency claims:
Fire damage:
• Replacing floors and walls
• Cleaning and painting surfaces
• Electronics
• Waste corresponding to consumption of new materials
Water damage:
• Plain kitchen cabinet fronts
• Parquet flooring
• Repair as a result of water seeping through the floor
• Waste corresponding to consumption of new materials
Materials included in the climate accounts for claims:
• Wood
• Plasterboard
• Insulation
• Paint
• Plastic
• Electronics

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige	2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Climate and the environment in Gjensidige	66 38
Chapter 3 - Ambitious goals for emission cuts Chapter 3 - We create a sense
in our own operations of security	69 41
Chapter 3 - Lowest possible climate footprint Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 and take social responsibility	70
Chapter 3 - We create value in partnership Chapter 3 - Responsible investments	85
Chapter 3 - Good corporate governance with our suppliers	72 93
Chapter 3 - Our follow-up of the EU taxonomy 73
Chapter 3 - Climate-related financial Chapter 4 - Financial statements	115
disclosures (TCFD)	74
Chapter 3 - Effect of our measures: Chapter 5 - Notes
Climate and the environment	84
Appendix 2021 Chapter 3 - Responsible investments	205 87
Chapter 3 - Good corporate governance	95
Chapter Chapter 4 - Financial result	117
Financial statement including notes 2021	213
Appendix 2021	271

Effect of our measures: Climate and the environment

Principal figures climate and the environment	Unit	Target	2021	2020	2019	2018	2017
Natural disaster claims
Share of natural disaster claims of earned premiums from property insurance 7	Per cent	NA	1.9	6.5
Natural disaster claims in acc. with market share from the Norwegian Natural Perils Pool, total	NOK mill.	NA	117.4	376.8	116.2	127.5	180.7
- Storms	NOK mill.	NA	76.5	82.0	74.5	65.1	49.2
- Storm surges	NOK mill.	NA	1.6	25.1	1.4	0.6	1.0
- Floods	NOK mill.	NA	11.9	25.6	21.9	42.0	98.4
- Landslides/avalanches	NOK mill.	NA	27.5	244.0	18.4	19.6	31.9
- Earthquakes	NOK mill.	NA	0.0	0.1	0.0	0.2	0.2
Taxonomy non-life insurance products, according to the EU taxonomy regulation
Share of earned premiums eligible 6	Per cent		70.0
Share of earned premiums aligned 6	Per cent	80	NA
Climate and the environment - own operations
Greenhouse gas emissions
Scope 1: Direct emissions 1	Tonnes CO₂e	NA	389	456	463
Scope 2: Energy, market based 2	Tonnes CO₂e	NA	408	1 390	4 660
Scope 2: Energy, location based 2, 9	Tonnes CO₂e	NA	656	604	752
Scope 3: Indirect emissions	Tonnes CO₂e	NA	355	492	2 009
Total emissions scope 1-3	Tonnes CO₂e	-75 %	1 152	2 338	7 132
Change from the year of reference 2019	Per cent	-75 %	-84 %	-67 %
CO2-intensity own operations 4	Tonnes CO₂e/ MNOK	NA	0.0	0.1	0.3
GHG emissions per employee 3	Per cent	NA	0.3	0.6	1.9

Natural disaster claims Share of natural disaster claims of earned premiums from property insurance 7 Natural disaster claims in acc. with market share from the Norwegian Natural Perils Pool, total Taxonomy non-life insurance products, according to the EU taxonomy regulation Share of earned premiums eligible 6 Per cent 70.0 Share of earned premiums aligned 6 Per cent 80 NA Climate and the environment - own operations Greenhouse gas emissions CO2-intensity own operations 4 Tonnes CO₂e/

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige	2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees Chapter 3 - Creating added value	53
Chapter 3 - Climate and the environment in Gjensidige	66 38
Chapter 3 - Ambitious goals for emission cuts Chapter 3 - We create a sense
in our own operations of security	69 41
Chapter 3 - Lowest possible climate footprint Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 and take social responsibility	70
Chapter 3 - We create value in partnership Chapter 3 - Responsible investments	85
Chapter 3 - Good corporate governance with our suppliers	72 93
Chapter 3 - Our follow-up of the EU taxonomy 73
Chapter 3 - Climate-related financial Chapter 4 - Financial statements	115
disclosures (TCFD)	74
Chapter 3 - Effect of our measures: Chapter 5 - Notes
Climate and the environment	84
Appendix 2021 Chapter 3 - Responsible investments	205 87
Chapter 3 - Good corporate governance	95
Chapter Chapter 4 - Financial result	117
Financial statement including notes 2021	213
Appendix 2021	271

Transportation, employees with company cars (scope 1)

Business travels

Waste

Principal figures climate and the environment	Unit	Target	2021	2020	2019	2018	2017
Transportation, employees with company cars (scope 1)
Diesel fuel	Liter	NA	39 450	74 132	79 120
Petrol fuel	Liter	NA	109 560	89 213	75 051
Energy consumption (scope 2)
District heating	MWh	NA	2 370	1 780	1 830
Electricity with warranty of origin 8 , 9	MWh	100 %	6 421	4 360	0
Electricity without warranty of origin	MWh	0	0	2 899	8 342	12 671	12 773
Renewable energy as a share of total 8	Per cent	NA	73	48	0	0	0
Business travels
Airflights	Number	NA	2 834	2 781	12 820
Waste
Food waste	Tonnes	NA	16	24
Paper	Tonnes	NA	31	22
Electronics	Tonnes	NA	2	4
Residual waste	Tonnes	NA	96	81
Share of waste sorted by source	Per cent	NA	66	62
Paper consumption per employee 3	Tonnes	NA	0.01	0.01
Water
Water consumption	Cubic metres	NA	9 098
Water consumption per employee 3	Cubic metres	NA	2.5
Claims processes material consumption and GHG emissions in the value chain (Scope 3)
GHG emissions from claims processes	Tonnes CO₂e	NA	30 581	32 036	41 522
Change from reference year 2019	Percent	-35	-26	-23
Property - material consumption	Tonnes	NA	8 376	8 198	7 136
Property - waste	Tonnes	NA	8 467	8 940	8 071
Total CO₂e, property	Tonnes CO2e	NA	6 736	6 585	8 331
Total CO₂e intensity, property 5	Tonnes CO₂e/ NOK mill.	NA	0.7	0.8

Water

Claims processes material consumption and GHG emissions in the value chain (Scope 3)

			GHG emissions from claims processes
		Chando from roforonco voar

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige	2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Creating added value
Chapter 3 - Climate and the environment in Gjensidige	66 38
Chapter 3 - Ambitious goals for emission cuts Chapter 3 - We create a sense
in our own operations of security	69 41
Chapter 3 - Lowest possible climate footprint Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 and take social responsibility	70
Chapter 3 - We create value in partnership Chapter 3 - Responsible investments	85
Chapter 3 - Good corporate governance with our suppliers	72 93
Chapter 3 - Our follow-up of the EU taxonomy 73
Chapter 3 - Climate-related financial Chapter 4 - Financial statements	115
disclosures (TCFD)	74
Chapter 3 - Effect of our measures: Chapter 5 - Notes
Climate and the environment	84
Appendix 2021	205
Chapter 3 - Responsible investments	87
Chapter 3 - Good corporate governance	95
Chapter
Chapter 4 - Financial result	117
Financial statement including notes 2021	213
Appendix 2021	271

Scope1: Direct emissions from company cars.
Scope 2: Emissions relating to energy consumption, market based with Guarantees of Origin. 3. Employees measured as full-time equivalents (FTE).
Calculated as total CO2e from own operations, measured in relation to total earned premiums in NOK mill.
Carbon intensity: Tonnes of CO2 emissions from claims processes by earned premiums in NOK mill. from general insurance.
Share of earned premiums for those products that can be classified as sustainable acc. to the EU criteria for sustainable non-life general insurance (eligibility), acc.

to the climate adapatation objecitve.

Total natural disaster claims, as defined by the Norwegian Natural Disaster Act, and as a share of the total claims in NOK mill. 8. Guarantees of origin purchased to ensure that use of energy in operations are renewable, as regards market based energy. With regard to location based energy a relatively low number of CO2e are indicated, because of a high share of renewable energy in the locations where Gjensidige run its operations. 9. The Nordic market, and Norway in particular, is having a very high proportion of renewable energy resulting in very low CO2e for energy also location based. 10. The ESG screening of our procurement is conducted by the use of the EcoVadis platform, and includes our largest suppliers.

Repairs using second-hand car parts

Principal figures climate and the environment	Unit	Target	2021	2020	2019
Claims processes material consumption and GHG emissions in the value chain (Scope 3)
Motor - material consumption	Tonnes	NA	4 843	5 189	5 549
Motor - waste	Tonnes	NA	11 663	13 122	12 793
CO₂e Motor	Tonnes CO₂e	NA	23 846	25 452	33 191
Total CO₂e intensity motor 5	Tonnes CO₂e/ NOK milll.	NA	2.8	3.2
Repairs using second-hand car parts
Norway	Per cent	NA	1.7	1.3	1.2
Sweden	Per cent	NA	12.1	11.1	12.5
Denmark	Per cent	NA	2.2	3.0	3.1
Baltics	Per cent	NA	28
Circular materials
Material consumption - Aluminum	Tonnes	NA	2 946	3 262	3 183
Aluminum concerted into CO₂e	Tonnes CO₂e	NA	63	70	68
Material consumption steel	Tonnes	NA	5 699	6 523	6 487
Steel converted into CO₂e	Tonnes CO₂e	NA	121.4	140.0	139.0
Supplier follow-up, compliance with sustainability requirements
Procurements with externally verified sustainability evaluation 10	Number	50 within 2021	59	31	21
Suppliers signed sustainability self-declaration	Per cent	100	94	94	85

Circular materials

Supplier follow-up, compliance with sustainability requirements

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66
in Gjensidige Chapter 3 - Responsible investments Chapter 3 - We create a sense	38 87
Chapter 3 - Our asset management of security	88 41
Chapter 3 - Effect of our efforts: Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 Responsible investments	94
Chapter 3 - Responsible investments Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	85 95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136
Appendix 2021 Chapter 5 - Notes	271

investments

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value in Gjensidige	66 38
Chapter 3 - Responsible investments Chapter 3 - We create a sense	87

Chapter 3 - Our asset management of security	88 41
Chapter 3 - Effect of our efforts: Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 Responsible investments	94
Chapter 3 - Responsible investments Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	85 95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136

Our asset management

Responsible investments are about striking a balance between the environment, social responsibility and profitability in our asset management. We make systematic efforts to ensure that our investments are managed properly and sustainably.

The purpose of the investment portfolio is primarily to cover our actuarial liabilities and to contribute to the Group achieving its ROE target. Gjensidige takes limited risk in its asset management.

Topics of interest to our stakeholders	Our goals	Status of measures 2021	We support the following SDGs
Increased expectations that the companies we in vest in take climate and environmental challenges into account, make contributions to society and take responsibility for giving labour rights and corporate governance high priority.	• Support the objective of the Paris Agreement through net zero emissions in the investment portfolios by 2050. • Exclude companies we believe are in breach of international standards on which the UN Global Compact is based. • By 2025, have an increased share of external ly managed sustainable and ESG funds. • Make it easier for customers to take sustaina bility and social responsibility into account in their pension and savings.	What we have achieved • Adopted goal of net zero emissions from the investment portfolio by 2050. • Measured and reported GHG emissions from the portfolio (equities, bonds and property). • Introduced new routines for voting in directly owned equity investments. • Certified six new properties to BREEAM-NOR in 2021, which provides us with a share 45 % certified properties by the end of 2021.

Our ambition is net zero emissions in 2050, and we actively monitor our carbon intensity

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value in Gjensidige	66 38
Chapter 3 - Responsible investments Chapter 3 - We create a sense	87
Chapter 3 - Our asset management of security	88 41
Chapter 3 - Effect of our efforts: Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 Responsible investments	94

Chapter 3 - Responsible investments Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	85 95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136

High credit quality

Responsible investments

Responsible investments is a collective term for investment strategies that entail the incorporation of sustainability issues, which include environmental, social and governance criteria, in analysis made before investments are made and in the investor's role during the investment period. Gjensidige's investment horizon indicates that an understanding of the connection between sustainable development, risk and return is an important precondition for succeeding. There are several different approaches to responsible investments, and this chapter describes Gjensidige's approach in more detail. Gjensidige believes that companies that incorporate sustainability into their practices have better prospects of profitability because they

have a better understanding of risk management and market developments than other companies.

Investment portfolio, general insurance

The investment portfolio for general insurance includes all investment funds in the Group, except for investment funds in the Pension segment. A large part of the asset management is outsourced to external managers, while the Group's investment function concentrates on asset allocation, risk management and the selection of managers. Direct property investments take place via the company Oslo Areal, in which Gjensidige has an ownership interest of 50 per cent until the sale which was conducted in January 2022

Investment portfolio at 31 Dec. 2021

Investment portfolio at 31 Dec. 2021

The investment portfolio consists of two parts: a match portfolio and a free portfolio. The match portfolio is intended to correspond to the Group's technical provisions. It is invested in fixed-income instruments whose duration is adapted to match the technical provisions.

The free portfolio consists of various assets. The allocation of assets in this portfolio must be seen in connection with the Group's capitalisation and risk capacity, and the Group's risk appetite at all times.

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value in Gjensidige	66 38
Chapter 3 - Responsible investments Chapter 3 - We create a sense	87
Chapter 3 - Our asset management of security	88 41
Chapter 3 - Effect of our efforts: Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 Responsible investments Chapter 3 - Responsible investments	94 85
Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136
Appendix 2021 Chapter 5 - Notes	271

Our asset management is based on the 10 UN Global Compact principles, which promote human rights, labour standards, the environment and anti-corruption work. The work is enshrined in Gjensidige's group policy for responsible investments and pertaining instructions, available at www.gjensidige.no.
We have signed the UN Principles for Responsible Investment (UN PRI), affirming our commitment to act in the best interest of our stakeholders in a long-term perspective. The endorsement reflects our support for recognition of the importance of sustainability.
Gjensidige supports the Paris Agreement, and, based on the IPCC reports, we consider it necessary for achieving the goals of the agreement to adopt a strategy for net zero emissions from the investment portfolio by 2050.
We have signed the Carbon Disclosure Project (CDP) as an Investor Signatory to support companies' reporting of their environmental impact and the strategies and measures they use to reduce carbon emissions.
We are a member of the Norwegian Forum for Responsible and Sustainable Investments (NORSIF), and support the work on developing and promoting sustainable investments as a dedicated field in Norway, and share experience and knowledge across the Norwegian financial community.

The Group's Chief Investment Officer (CIO) is responsible for ensuring compliance with the policy and the guidelines for responsible investments. Analyses from external sources such as Sustainalytics form the basis for considering dialogue with companies and exclusion from Gjensidige's investment universe. Companies with serious or systematic breaches of Gjensidige's ethical guidelines that fail to take satisfactory steps to correct their conduct shall be placed on the list of excluded companies. Members of our asset management team are responsible for compiling information about companies that violate Gjensidige's policies and guidelines. The Chief Investment Officer (CIO) and the Chief Risk Officer (CRO) make the decision to change Gjensidige's exclusion list based on the recommendation of these employees.

When a company is excluded, the shares in that company are immediately sold from our internally managed portfolios. If an excluded company is part of an externally managed portfolio, we will enter into dialogue with the manager about exclusion and/or follow-up of the company. Managers who are unable to provide a satisfactory explanation within a reasonable time or who fail to demonstrate willingness to satisfy Gjensidige's guidelines will not be given new investment mandates. The CIO decides in each case whether the violation is severe enough for existing investments to be terminated. We only enter into agreements with external investment managers who have appropriate guidelines and a history of responsible investments. This is a very important criterion in the selection of new external managers. Further details

Gjensidige's work on responsible investments

		External investment managers
Equities	Bonds	Property	All asset classes
Negative screening based on own exclusion list	Negative screening based on own exclusion list.	The BREEAM NOR environmental classification system is used for new buil dings, complete renovations and partially for buildings in use.	Negative screening based on own exclusion list.
Active ownership	Active ownership	Active ownership	Active ownership
Where expedient, we seek to influence companies through dialogue with the company's management, and we exercise our right to vote at the compa ny's general meetings. Analyses include opportunities and risks relating to ESG assess ments of the investments.	Sustainability is a part of all credit analyses that form the basis for investments in corporate bonds, and in the ongoing dialogue with companies and the dialogue prior to bond issues.	Through Oslo Areal, Gjensi dige invests in environmen tal buildings and locations, around public transport hubs in particular.	Proponent for changing investment mandates and individual invest ments that are not in accordance with Gjensidige's policy for respon sible investments. A material part of the assessment of new and existing external mana gers.

about the exclusion process and criteria are available in the Group Policy for Responsible Investments, which is available at www.gjensidige.no.

Gjensidige considers good relations with external managers to be very important, as this can give us greater influence on underlying companies than we can achieve directly.

Our work on responsible investments is summarised in the table below.

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value in Gjensidige	66 38
Chapter 3 - Responsible investments Chapter 3 - We create a sense	87
Chapter 3 - Our asset management of security	88 41
Chapter 3 - Effect of our efforts: Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 Responsible investments Chapter 3 - Responsible investments	94 85

Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136

Development past year

Gjensidige has signed the UN PRI and adapted its policies and rules of procedure accordingly. The group policy for responsible investments (as approved by the Board) instructs those responsible for asset management to analyse ESG-related issues, including climate risk, in connection with all decisions.

In 2021, we have developed and incorporated several of the recommendations from UN PRI, and developed goals for GHG emissions, and further improve future reporting. Gjensidige reported to UN PRI for the first time in 2021.

In 2021, it was decided to exclude 20 companies from Gjensidige's investment portfolio, while 14 previously excluded companies were removed from the exclusion list. The companies that were removed from the list have either changed their conduct or sold companies following pressure from investors, authorities and other stakeholders. At year-end 2021, a total of 113 companies had been excluded and one placed on the observation list, compared with 107 excluded companies and one on the observation list at the start of the year. See financial highlights/KPI table at the end of the chapter.

In 2021, we contacted 7 external investment managers about 14 companies in their portfolios that were on the list of excluded companies or companies under observation.

Our dialogue with external managers resulted in a decision to sell our holdings with one manager that did not meet our ESG requirements. In addition, one mandate was replaced by another one with satisfactory ESG guidelines.

Real estate investments have been made through the property company Oslo Areal. This company engages in property development and management in the Oslo area and invests in environmentally friendly buildings near public transport hubs. The company uses the BREEAM-NOR environmental classification system for new buildings and complete restorations. In 2021 six properties have been certified

according to BREEAM In Use; Drammensveien 131, Grensesvingen 7, Sørkedalsveien 6, Tordenskioldsgate 6, Pilestredet 33 og Tullinsgate 2. There are plans for the certification of two more properties in 2022. Oslo Areal actively follows up the portfolio, and, because few people have occupied the buildings in 2021 due to Covid-19, energy consumption has been considerably reduced. In 2021 energy audits have been conducted at several properties; Grensesvingen 7, Tordenskiolds gate 6 og Nedre Vollgate 11. The findings from these audits are employed in relation to the real estate management, but not least in order to plan and execute energy measures.

Oslo Areal has participated in the Enova project «Regional networks for re-use» with the objective of mapping and creating a market place for material resources which can be re-used in rehabilitation or dismantling. In the project a mapping of reuse was conducted of Grenseveien 78, Sørkedalsveien 6, in addition to Christian Krogs gate. As a result of the mapping of Grenseveien 78, one could easily communicate to relevant stakeholders which materials were available. This led to the reuse, in stead of depositing, of approximately 57 tonnes of materials.

Financial climate risk is about how climate change can lead to unforeseen changes in financial assets. The Task Force on Climate-related Financial Disclosures (TCFD) has identified three risk categories. The biggest financial climate risk for Gjensidige's investment portfolio is assumed to arise in the transition to a low-emission society where climate regulation, more stringent emission requirements, a different cost situation and changes in market preferences can affect the value of investments.

Details concerning these assessments are described in the appendix 'Climate-related Financial Disclosures (TCFD)'. Gjensidige uses external tools such as the Paris Agreement Capital Transition Assessment (PACTA) for scenario analyses and stress testing to gain a better understanding of climate risk in the investment portfolio.

In accordance with our goal of net zero emissions in the investment portfolios by 2050 and the recommendations of the TCFD and the UN Environmental Programme Financial Initiative (UNEP FI), Gjensidige wishes to measure and report GHG emissions from the investment portfolio. Measurement and reporting of emissions will give us information about the source of the emissions and where Gjensidige can direct efforts to reduce its climate footprint. Going forward, this will help to evaluate the effect of our internal sustainability efforts and progress towards the strategic objective of net zero emissions from the investment portfolio by 2050.

Scope 1 and 2 emissions in underlying companies in the investment portfolio are included in Gjensidige's Scope 3 emissions. In 2021, Gjensidige reported Scope 1 and 2 emission figures for 84 per cent of the investment portfolio. Emission figures are reported in a format that is compatible with the TCFD recommendations.

In 2020, we measured emissions from the equity and property portfolio. The measurement for 2021 has been expanded compared with the year before, by including emission figures for the bond portfolio, which makes up a considerable part of Gjensidige's investments. To enable reporting, estimates from S&P Trucost Ltd have been used in addition to reported data, to increase the coverage. Over and above this, Gjensidige has also 5 per cent invested in assets where it is

n

-

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value in Gjensidige	66 38
Chapter 3 - Responsible investments Chapter 3 - We create a sense	87
Chapter 3 - Our asset management of security	88 41
Chapter 3 - Effect of our efforts: Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 Responsible investments Chapter 3 - Responsible investments	94 85
Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136
Appendix 2021 Chapter 5 - Notes	271

currently not possible to measure emissions, for example unlisted loan funds and unlisted shares. The portfolio's carbon footprint, compared with respective indices, is shown in a table at the end of this chapter. A coverage of at least 75 per cent is recommended for carbon footprinting, and the portfolio has a coverage of 84 per cent.

In addition to the reported scope 1 and 2 carbon footprints at the end of this chapter, we have also calculated emission intensities including scope 3 upstream first tier emissions. Scope 3 emissions are at an early stage in terms of methods utilized and should be used with great caution. For total direct and first tier indirect emissions, Gjensidige's listed equity portfolio has a weighted-average carbon intensity (WACI) of 17.1 (20.6) (relevant index) and the corporate bonds portfolio a WACI of 12.1 (31.6) (relevant index) based on reported data and S&P Trucost 1 estimates.

primarily concerned with transition risk. The purpose of the scenario analysis is to improve our understanding of the climate risk associated with exposure to sectors and technologies affected by climate change and climate action. Internally, we have conducted a scenario analysis and a stress test of the portfolio, using climate scenarios from the Network for Greening of the Financial System (NGFS). The results indicate that the transition risk is limited but negative for the portfolio seen as a whole. The risk is limited because the portfolio is largely exposed to safe bonds in sectors that are not directly affected by climate action, for example the financial sector. The transition risk is probably much higher for the equity portfolio, but our overall exposure to equities is limited. We have also used the PACTA tool from the 2° Investing Initiative. The results largely concur with our internal analyses. The sector exposure for Gjensidige's investment portfolio at year-end 2021 is shown in the table on this page.

For property investments, Oslo Areal reports greenhouse gas emissions in accordance with the GHG Protocol. The most recently reported emissions indicate an increase from 7.4 kg/m2 in 2020 to 8.1 kg/m2 in 2021 for emissions from Scope 1–3. The increase of 0.7 kg/m2 is primarily due to an increase in the calculation factors for electricity. In accordance with our strategy, energy efficiency measures have also been implemented for several properties to contribute to a permanently lower carbon intensity, and the specific energy consumption for the portfolio has been reduced from 149 kWh/m2 in 2020, to 144 kWh/m2 in 2021. The property portfolio in Oslo Areal makes up 11 per cent of Gjensidige's total investment portfolio. Gjensidige makes active efforts to encourage investment managers and companies to improve their reporting of emissions. Financial consequences of climate risk Through the year, we have conducted several analyses of the portfolio to gain a better understanding of the climate risk. The analysis is We consider the oil and gas industry and parts of the power supply sector to be associated with the greatest transition risk in our portfolio. The exposure to oil and gas-related activities is primarily related to unlisted equity investments, where the sector makes up approximately 35 per cent of the exposure. In the power supply category, Gjensidige is largely invested in bonds in Norwegian hydropower plants. We consider the transition risk associated with these investments to be considerably lower than in other parts of the power supply sector. These considerations are confirmed by the results of the scenario analyses, where the exposure to Norwegian power producers contribute to a positive climate risk. Transition risk will also depend on how quickly alternative technologies, legislation and regulations develop. In the short term, we consider the EU's Green Deal and the initiatives linked to Fit for 55+, direct and indirect taxes on emissions in Norway and the price of allowances in the EU's emissions trading system to be important catalysts of such transition risk, and they are therefore monitored closely.

Sector exposure

Sector	Distribution
Financial activities	40.1 %
Real estate activities	21.6 %
Public administration	13.7 %
- of which state/government-guaranteed/ supranational	8.6 %
Power and supply	8.3 %
Service activities	6.2 %
Industry	4.4 %
Oil and gas	0.9 %
Transport. shipping and offshore	1.2 %
Agriculture. forestry and fishing	0.1 %
Building and construction	0.2 %
Not classified	3.3 %
Total	100.0 %

The table includes investments in funds, equities, derivatives and bonds. They are grouped on the basis of the Statistical Classification of Economic Activities in the European Community (NACE). Property directly owned through Oslo Areal is included in real estate activities. Bank deposits are included in financial activities.

Reproduction of any information, data or material in any form is prohibited except with the prior written permission of the relevant party. Such party, its affiliates and suppliers ("Content Providers") do not guarantee the accuracy, adequacy, completeness, timeliness or availability of any Content and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such Content. In no event shall Content Providers be liable for any damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with any use of the Content. A reference to a particular investment or security, a rating or any observation concerning an investment that is part of the Content is not a recommendation to buy, sell or hold such investment or security, does not address the suitability of an investment or security and should not

be relied on as investment advice.

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value in Gjensidige	66 38
Chapter 3 - Responsible investments Chapter 3 - We create a sense	87
Chapter 3 - Our asset management of security	88 41
Chapter 3 - Effect of our efforts: Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 Responsible investments Chapter 3 - Responsible investments	94 85
Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136
Appendix 2021 Chapter 5 - Notes	271

Considerable discretion, and thereby uncertainty, is attached to these assessments. Going forward, the assessment of financial risk will be improved through better GHG emission data and further use of scenario analyses. Continuous efforts are made to further develop methods and strategies for assessing and reducing the financial climate risk in the portfolio. This will make it possible to single out the positive opportunities associated with downside risks and more easily define degrees of risk exposure.

The physical risk associated with Gjensidige's investments mainly concerns properties in Oslo Areal. More specifically 17 properties, all in a central location in Oslo, which make up a considerable proportion of the investment portfolio. Although the properties are concentrated in the same geographical area, the physical risk is deemed to be low. The property investments are considered to be equipped to withstand transition risk, as a result of strict energy requirements and other regulations. The remaining part of the investment portfolio is deemed to be well diversified and does not entail any concentrated risk over and above systematic risk. risk; the unit-linked portfolio, where customers carry the financial risk; and the corporate portfolio, consisting of the Company's equity and subordinated loans. The purpose of the asset management is to achieve a competitive return for the pension profiles included in the unit-linked portfolio, and to meet obligations to customers in the group policy portfolio. GPF only uses externally managed funds in the allocation in the unitlinked portfolio, but makes all decisions concerning strategy, asset

The goal of net zero emissions from the investment portfolio by 2050 is one of the results of this work.

Pensjonsforsikring (GPF)

intended to cover actuarial liabilities where GPF carries the financial

Management of customer assets in Gjensidige GPF manages assets on behalf of its customers. Its main products are group occupational pensions, which are defined contribution schemes with pertaining risk coverage, management of pension capital certificates and paid-up policies, individual unit-linked pension and individual disability pension. Total assets under management at 31 Dec. 2021 amounted to NOK 52.3 billion. The portfolios are divided into the group policy portfolio, which is The follow-up of investment managers follows internal Gjensidige guidelines. Any breaches of the exclusion list by investment managers who are only used in GPF's customer portfolios and not Gjensidige's own portfolios will be followed up by GPF. The pension profiles and funds customers can choose are labelled with the Morningstar Sustainability Rating (if one is available). GPF aims at establishing a regular carbon footprint report for its management of pension profiles and single funds during 2022. GPF is committed to achieve net zero GHG emissions within the pension profiles by 2050. During the first quarter of 2022 a sustainability profile only investing in funds according to Art. 9 of the EU SFDR regulation, will be launched.

classes, portfolio construction, manager selection and risk management itself. GPF follows the group policy for responsible investments and cooperates with the Group's investment department. The selection of investment managers for the customer portfolios is based on a comprehensive selection process carried out by the investment centre on assignment for, and in cooperation with, GPF. All external investment managers are required to have a clear policy for responsible investment integrated in their processes. All the funds included in the customer portfolios and the group policy and company portfolios are screened against Gjensidige's exclusion list every quarter.

Customer portfolio at 31 Dec. 2021

Customer portfolio at 31 Dec. 2021

New measures

Continuous efforts are made to improve existing processes and new measures in the area of responsible investments. We can exert the greatest influence through active dialogue on ESG criteria with our external fund managers, and incorporate ESG requirements in the mandates we establish. As well as investments in individual companies and investment mandates, the dialogue will concern the investment managers' active ownership, reporting of ESG criteria and their work towards the UN Sustainable Development Goals. In general, we will make efforts to incorporate more of the UN PRI recommendations where it is considered relevant after the first reporting in 2021.
There is a focus on further improvement and analysis of our carbon footprint and development of scenario analyses of climate risk.
Gjensidige Pensjonsforsikring will launch new pension products with a more distinct sustainability profile during the first half of 2022.
Adopted goal of reducing GHG emissions from the investment portfolio to net zero by 2050. Measures going forward will include setting emission paths for the portfolio and sectors to devise more short-term emission targets. Consideration will also be given to how existing responsible investment tools can be adapted to the new goal.

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us Chapter 1 - We are Gjensidige	14 2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value in Gjensidige	66 38
Chapter 3 - Responsible investments Chapter 3 - We create a sense	87
Chapter 3 - Our asset management of security Chapter 3 - Effect of our efforts: Chapter 3 - Our engaged employees	88 41 53
Chapter 3 - Climate and the environment 65 Responsible investments Chapter 3 - Responsible investments	94 85
Chapter 3 - Good corporate governance Chapter 3 - Good corporate governance	95 93
Chapter 4 - Financial result Chapter 4 - Financial statements	117 115
Financial statement including notes 2021	136
Appendix 2021 Chapter 5 - Notes	271

1. Proportion of externally managed assets.
1. Tonnes of CO2e per NOK 1 mill. in sales revenue. Numbers indicate weighted average carbon intensity (WACI). Scope 1-2.
1. Total tonnes / kg of CO2e per sq. M.
1. Tonnes of CO2e per NOK 1 mill. in GDP. Domestic/exported/imported.
1. Total tonnes of CO2e. Scope 1-2.

Content

Principal figures, Responsible investments	Unit	Target	2021	2020	2019	2018
Carbon emissions investment portfolio, excl. sovereign and municipal bonds, cash and derivatives 8	Emissions	2050: Net 0	214 156
Carbon intensity investment portfolio, excl. sovereign and municipal bonds, cash and derivatives (WACI) 5	Intensity	2050: Net 0	8.2
Carbon intensity listed equities (WACI) 1, 5	Intensity (comp. to index)	2050: Net 0	10.7 (15.2)	11.1 (17.8)
Carbon intensity company corporate bonds (WACI) 1, 5	Intensity (comp. to index)	2050: Net 0	9.0 (26.1)
Carbon intensity sovereign and municipal bonds 1, 7	Intensity (comp. to index)	2050: Net 0	36.2 (43.8)
Carbon emissions- and intensity real estate 2, 6	Emissions / intensity	2025: 7.68	1 289 / 8.1	1 366 / 7.4	1 564 / 8.5
Share of properties with environmental certification (BREEAM-Nor)	Share of total sqm.	2025: 100 %	45 %	21 %	17 %
Companies excluded from the investment portfolio	Number	NA	113	107	103
Exclusions by cause 3
· Labour conditions	Number	NA	5	6	7	8
· Corruption	Number	NA	11	11	13	13
· Human rights	Number	NA	40	27	26	25
· The environment	Number	NA	27	24	23	23
· Controversial weapons	Number	NA	43	45	40	30
External managers that have signed UN PRI 4	Proportion	2025: 100 %	98.7 %
External managers used with companies on Gjensidige's exclusion list	Number / Proportion followed up	100 % followed up	7 / 100 %	9 / 100 %	11 / 100 %

^1. Figures employed are as of September 30.

Effect of our efforts: Responsible investments

^2. Scope 1-3.

^3. The company may be excluded for more than one reason.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security	41
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment	66
Chapter 3 - Responsible investments	87
Chapter 3 - Good corporate governance	95
Chapter 3 - Responsible business – order in
our own house	96
Chapter 3 - Emerging risks	98
Chapter 3 - Our internal management system
is decisive to our social mission	101
Chapter 3 - Effect of our efforts: Good
corporate governance	105
Chapter 3 - Gjensidige's Board of Directors
comprises broad expertise	106
Chapter 3 - Corporate governance	110
Chapter 3 - Our commitment to our owners
and creditors	114
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271

governance

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige Chapter 3 - Value creation in Gjensidige	2 38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66
Chapter 3 - Responsible investments in Gjensidige	87 38
Chapter 3 - We create a sense Chapter 3 - Good corporate governance of security	95 41
Chapter 3 - Responsible business – order in Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 our own house	96
Chapter 3 - Emerging risks Chapter 3 - Responsible investments	98 85
Chapter 3 - Our internal management system Chapter 3 - Good corporate governance	93
is decisive to our social mission	101
Chapter 3 - Effect of our efforts: Good Chapter 4 - Financial statements	115
corporate governance	105
Chapter 3 - Gjensidige's Board of Directors Chapter 5 - Notes
comprises broad expertise	106
Chapter 3 - Corporate governance Appendix 2021	110 205
Chapter 3 - Our commitment to our owners
and creditors	114
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271

Responsible business – order in our own house

Gjensidige is dependent on the trust of our surroundings to carry out our social mission, namely safeguarding lives, health and assets. A comprehensive understanding of risk, with clear policies and guidelines, is essential to create the trust we need.

Topics of interest to our stakeholders	Our goals	Status of measures 2021	UN SDGs
The insurance industry is subject to stringent regulation and licensing because insurance is important to ensure economic growth and financial security. Good management and control is a critical success factor for safeguarding lives, health and assets. Direct and indirect taxes that finance the common good are also an important contribution. Our core competence is a structured approach to understanding risk, reducing risk and relieving customers of risk. That requires good management and control systems, for example for IT security, investments and assessment of insurance risk.	• Our business shall be characterised by propriety and reliability, with effective risk management and good internal control, which will also contribute to better products, services and processes. • In addition to complying with external and internal rules, decisions and actions shall also be in line with Gjensidige's values and Code of Conduct, in a manner that creates and preserves value for customers, owners, employees and society at large.	Further developed risk models and risk management • We have further developed our model for incorpora ting climate risk in tariff setting and asset manage ment. • No serious incidents in 2021 relating to information security, data protection, corruption or money laun dering. • Carried out 2 audits of suppliers.

Read more at www.gjensidige.no, in Note 3 and in the Pillar III report

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige Chapter 3 - Value creation in Gjensidige	2 38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66
Chapter 3 - Responsible investments in Gjensidige Chapter 3 - We create a sense	87 38
Chapter 3 - Good corporate governance of security	95 41
Chapter 3 - Responsible business – order in Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 our own house	96
Chapter 3 - Emerging risks Chapter 3 - Responsible investments	98 85
Chapter 3 - Our internal management system Chapter 3 - Good corporate governance	93
is decisive to our social mission	101
Chapter 3 - Effect of our efforts: Good Chapter 4 - Financial statements	115
corporate governance	105
Chapter 3 - Gjensidige's Board of Directors Chapter 5 - Notes
comprises broad expertise	106
Chapter 3 - Corporate governance Appendix 2021	110 205
Chapter 3 - Our commitment to our owners
and creditors	114
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021

Gjensidige employs distinct roles and responsibility to ensure our follow-up of the Board's policies and other guidelines.

We have a robust framework and procedures to ensure that we only take on risks we understand, of a scope we can handle.

The General Meeting has an independent nomination committee that nominates members to the Board. The Board has overall responsibility for ensuring that the Group is managed responsibly, including responsibility for strategy, finances, the environment, social conditions and compliance with laws and regulations. This entails ensuring that the work on risk management and internal control is organised, documented and reported on in an expedient manner. The Board has appointed three sub-committees, and each board member is a member of one of these committees. The committees are preparatory and are tasked with exploring matters in depth and enabling the Board to monitor the financial reporting process and the systems for internal control and risk management. In addition, a remuneration committee assists the Board on matters relating to remuneration. The Board has adopted the Company's strategy with sustainability as the foundation for all activities. The Board has also adopted policies to be able to monitor goal attainment and compliance with internal rules and external legislation, and the management reports on the status of this on a quarterly basis. The established governance structure applies to finances, the environment, social conditions and compliance with laws and regulations. The governance structure is described in more detail in the chapter on corporate governance, in Note 3 to the accounts and in the Pillar 3 report.

Gjensidige depends on the trust of customers, suppliers, the authorities, shareholders and society at large to be able to run its business. The Company's Code of Conduct shall ensure that all employees act in a way that maintains trust in the Company. All Gjensidige's activities must stand up to public scrutiny. The remuneration of executive personnel is linked to value creation over time, reflects responsibilities and expertise and is based on measurable outcomes. This is described in more detail in Note 8 to the accounts and in the chapter on corporate governance.

Corporate governance and control of different types of risk

The Group's risk management system consists of three lines of defence, as described in the table on this page. The first line is responsible for compliance with laws and regulations, including policies and guidelines. The second-line functions are independent of operational activities and submit their reports directly to the CEO and the Board or the board committees. The control functions are also responsible for organising and attending to comprehensive and ongoing risk assessments and follow-up. The third line is the Board's control function.

Roles and responsibilities of the three lines of defense

1st Line of defence

All managers and employees

Exercises risk management and internal control.

2nd Line of defence

Centralised, independent control functions

Identifies, assesses, quantifies, monitors and reports on risk. Provides advice and guidance.

3rd Line of defence

Group internal audit

Provides independent confirmation and advice on corporate governance, risk management and internal control.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security	41
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment	66
Chapter 3 - Responsible investments	87
Chapter 3 - Good corporate governance	95
Chapter 3 - Responsible business – order in
our own house	96
Chapter 3 - Emerging risks	98
Chapter 3 - Our internal management system
is decisive to our social mission	101
Chapter 3 - Effect of our efforts: Good
corporate governance	105
Chapter 3 - Gjensidige's Board of Directors
comprises broad expertise	106
Chapter 3 - Corporate governance	110
Chapter 3 - Our commitment to our owners
and creditors	114
Chapter 4 - Financial result	117
Financial statement including notes 2021
Appendix 2021	271

Emerging risks

The risk picture Gjensidige sees is complex and constantly changing. Emerging risks are potential new or changed risks that typically develop over time, often as a result of changes in climate, the political or social situation and/or technological innovation.

The main purpose of the analysis is to identify and monitor these types of potential emerging risks and their possible consequences for the Company, so that the necessary measures and adjustments can be implemented at an early stage. Examples of emerging risks that may affect our business are climate change, exposure to cyber threats, increased use of digital currency and nanotechnology.

Gjensidige has established a comprehensive approach to new and emerging risks as part of the risk management framework, in which we identify and analyse a broad range of new and emerging risks and consider their potential impact on the Company. Risks that are considered material and/or about which we have limited knowledge are given priority and analysed in more detail.

Social customer behaviour

Sharing economy Mental health Socioeconomic inequality

The environment

Plastic and microplastics Physical risk (climate) Transition risk (climate) Gene technology Resource scarcity Bio diversity

Technology

Cyber threats Nanotechnology Autonomous vehicles Digital currency Quantum computing

Financial/political/ regulatory

Disruption in the supply chain Class action Rising debt levels Geopolitical conflict

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige Chapter 3 - Value creation in Gjensidige	2 38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66
Chapter 3 - Responsible investments in Gjensidige	87 38
Chapter 3 - We create a sense Chapter 3 - Good corporate governance of security	95 41
Chapter 3 - Responsible business – order in Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 our own house	96
Chapter 3 - Emerging risks Chapter 3 - Responsible investments	98 85
Chapter 3 - Our internal management system Chapter 3 - Good corporate governance	93
is decisive to our social mission	101
Chapter 3 - Effect of our efforts: Good Chapter 4 - Financial statements	115
corporate governance	105
Chapter 3 - Gjensidige's Board of Directors Chapter 5 - Notes
comprises broad expertise	106
Chapter 3 - Corporate governance Appendix 2021	110 205
Chapter 3 - Our commitment to our owners
and creditors	114
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271

Our risk types and our follow-up

We have a robust framework and procedures to ensure that we only take on risks we understand, of a scopwe can handle. Our risk strategy and risk management are based on four types of risk: business and strategic risk, insurance risk, financial risk and operational risk. Climate and environmental risk affects all the above. Read more about climate risk in the section 'Climate-related financial disclosures (TCFD)'

Business and strategic risk
Types of risk	Strategy	Risk management	Goals and methods
Financial loss or missed opportunities due to the inability to • establish or carry out business plans and strategies • make decisions • allocate resources or respond to changes in the environment	The overriding objective of Gjensidige's manage ment of business and strategic risk is to ensure that the Group's risk level is within the adopted risk appetite.	Risk is managed by identifying, assessing and handling the most important business and strategic risks. The point of departure for this identification is strategic objectives. As part of the Company's strategy process, we identify and consider global trends and scenarios to be able to analyse how they may affect our risk situation, including our competitive situation and framework conditions. We also carry out a dedicated process for the purpose of identifying and monitoring potential emerging risks.	Risk assessments are carried out annually, with quarterly follow-up and reporting to the management and Board.
Insurance risk
Types of risk	Strategy	Risk management	Goals and methods
The risk of incorrect pricing of risk. Higher claims incurred than expected.	Gjensidige shall primarily accept risk in its core area of business, which is general insurance in the Nordic countries and the Baltics. Our willingness to accept risk is highest for produ ct areas in which we have high competence and access to relevant data. Other business areas shall contribute to the Group's total growth and profitability, but with limited risk appetite.	The underwriting policy adopted by the Board sets out guidelines for the basic principles and responsibility for product and tariff development, risk selection and the stipulation of terms and conditions, and pricing of individual risks. The policy for technical provisions adopted by the Board sets out the overriding principles for stipulating such provisions.	Monitoring and assessment of underwriting results and insu rance risk, seen in relation to prognoses, is a vital, integrated part of the day-to-day management of the business. A retention limit specifies the maximum loss Gjensidige as a group is willing to accept for an incident, and stipulates the level of Gjensidige's reinsurance programme. Reinsurance is purchased to protect the Company against major individual events such as natural disasters and large individual losses. The independent actuary function performs control tasks re lating to technical provisions, the taking out of insurance and the reinsurance programme. Reporting of results and prognoses, as well as separate risk reporting, regularly takes place to the management and Board. The Chief Actuary prepares reports on the technical provisions.

Business and strategic risk
Types of risk	Strategy	Risk management	Goals and methods
Financial loss or missed opportunities due to the inability to • establish or carry out business plans and strategies • make decisions • allocate resources or respond to changes in the environment	The overriding objective of Gjensidige's manage ment of business and strategic risk is to ensure that the Group's risk level is within the adopted risk appetite.	Risk is managed by identifying, assessing and handling the most important business and strategic risks. The point of departure for this identification is strategic objectives. As part of the Company's strategy process, we identify and consider global trends and scenarios to be able to analyse how they may affect our risk situation, including our competitive situation and framework conditions. We also carry out a dedicated process for the purpose of identifying and monitoring potential emerging risks.	Risk assessments are carried out annually, with quarterly follow-up and reporting to the management and Board.
Insurance risk
Types of risk	Strategy	Risk management	Goals and methods
The risk of incorrect pricing of risk. Higher claims incurred than expected.	Gjensidige shall primarily accept risk in its core area of business, which is general insurance in the Nordic countries and the Baltics. Our willingness to accept risk is highest for produ ct areas in which we have high competence and access to relevant data. Other business areas shall contribute to the Group's total growth and profitability, but with limited risk appetite.	The underwriting policy adopted by the Board sets out guidelines for the basic principles and responsibility for product and tariff development, risk selection and the stipulation of terms and conditions, and pricing of individual risks. The policy for technical provisions adopted by the Board sets out the overriding principles for stipulating such provisions.	Monitoring and assessment of underwriting results and insu rance risk, seen in relation to prognoses, is a vital, integrated part of the day-to-day management of the business. A retention limit specifies the maximum loss Gjensidige as a group is willing to accept for an incident, and stipulates the level of Gjensidige's reinsurance programme. Reinsurance is purchased to protect the Company against major individual events such as natural disasters and large individual losses. The independent actuary function performs control tasks re lating to technical provisions, the taking out of insurance and the reinsurance programme. Reporting of results and prognoses, as well as separate risk reporting, regularly takes place to the management and Board. The Chief Actuary prepares reports on the technical provisions.

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige Chapter 3 - Value creation in Gjensidige	2 38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66
Chapter 3 - Responsible investments in Gjensidige	87 38
Chapter 3 - We create a sense Chapter 3 - Good corporate governance of security	95 41
Chapter 3 - Responsible business – order in Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 our own house	96
Chapter 3 - Emerging risks Chapter 3 - Responsible investments	98 85
Chapter 3 - Our internal management system Chapter 3 - Good corporate governance	93
is decisive to our social mission	101
Chapter 3 - Effect of our efforts: Good Chapter 4 - Financial statements	115
corporate governance	105
Chapter 3 - Gjensidige's Board of Directors Chapter 5 - Notes
comprises broad expertise	106
Chapter 3 - Corporate governance Appendix 2021	110 205
Chapter 3 - Our commitment to our owners
and creditors	114
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271

Financial risk

Financial risk
Types of risk	Strategy	Risk management	Goals and methods
Changes in the value of financial assets and liabilities as a result of exposure to interest rates, inflation, exchange rates, credit margins, property prices and share prices. Liquidity risk, the inability to make pay ments when they fall due or the need to realise investments at a high cost or lower value to make payments.	The investment portfolio consists of two parts: a match portfolio and a free portfolio. The primary purpose of the investments made is to support the insurance business by securing the value of insurance liabilities against fluctuations in market variables. Some investments are also made to help to achi eve the Group's overall profitability goals, with a controlled downside risk. The investment strategy is adopted by the Board and sets limits for the allocation of investment funds.	The match portfolio, which is intended to correspond to the Group's technical provisions, is invested in fixed-income instru ments whose duration and currency are adapted to match the technical provisions. A dynamic risk management model provides the necessary framework for adapting risk in the event of changes in market conditions and/or a weak development in financial income. The investment strategy defines several risk limitations, both at the aggregate level and by different types of risks and invest ments, for the purpose of achieving a diversified investment portfolio.	Daily reports are prepared for the purpose of follow -up and monitoring of Gjensidige's investments to ensure that they are within the limits at all times. The reporting is carried out by a dedicated department in order to ensure independent follow-up. Monitoring of risk also takes place through stress tests, where the buffer capital must be sufficient at all times to be able to withstand the risk of a sharp simul taneous fall in the value of all asset classes.
Operational risk
Types of risk	Strategy	Risk management	Goals and methods
The risk of a potential incident or event arising that has financial consequences and/or a negative impact on reputation. Operational risk can be due to: • human error • process errors • weaknesses in systems • non-compliance with external and internal laws and regulations • external events	The overriding objective of operational risk mana gement is to ensure that the Group's risk level is within the adopted risk appetite. Operational risk shall be reduced as far as practi cally possible in areas that it is assumed can have a material negative impact on Gjensidige's reputa tion. For other operational risk, a balanced approach shall form the basis for efficient, forward-looking operations.	Risk management and internal control are done by identifying, assessing and managing material operational risks based on key objectives, deliveries and material processes. Risks are identi fied, assessed and managed by managers and experts in accor dance with the established risk matrix and processing rules. Factors that affect risk and our risk management culture include: • Values, ethical principles and standards. • Organisation: well-defined, clear lines of reporting and a clear division of responsibility; governing documents and procedures. • Know-how, competence, training and courses. • Documented activities to ensure compliance with processes or procedures. • Follow-up of incidents.	Risk assessments are carried out annually, with quar terly follow-up and reporting to the management and Board.

Operational risk

human error
process errors
weaknesses in systems
non-compliance with external and internal laws and regulations
external events

$$_{101}$$

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige Chapter 3 - Value creation in Gjensidige	2 38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66

Chapter 3 - Responsible investments in Gjensidige Chapter 3 - We create a sense	87 38
Chapter 3 - Good corporate governance of security	95 41
Chapter 3 - Responsible business – order in Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 our own house	96
Chapter 3 - Emerging risks Chapter 3 - Responsible investments	98 85

Chapter 3 - Our internal management system Chapter 3 - Good corporate governance	93
is decisive to our social mission 101
Chapter 3 - Effect of our efforts: Good Chapter 4 - Financial statements	115
corporate governance	105
Chapter 3 - Gjensidige's Board of Directors Chapter 5 - Notes
comprises broad expertise	106
Chapter 3 - Corporate governance Appendix 2021	110 205
Chapter 3 - Our commitment to our owners
and creditors	114

Chapter 4 - Financial result	117
Financial statement including notes 2021	136

Our internal management system is decisive to our social mission

Gjensidige is dependent on the trust of our surroundings to carry out our social mission, safeguarding lives, health and assets. Ethics are essential in this context.

Ethical and customer-friendly business operations

Gjensidige is subject to laws and regulations that set out requirements for consumer protection, and is concerned with safeguarding consumer interests through, among other things, information and advice to customers, the expertise of our employees and good product development processes.

Gjensidige shall have a corporate culture where each individual employee exercises good judgement. Our value creation shall take place in accordance with our Code of Conduct, which is described in a number of policy documents adopted by the Board.

Our Code of Conduct describes our values and underlines that all our activities must stand up to public scrutiny. Together with other documents, the Code of Conduct describes what is acceptable conduct and requires all employees to behave in a respectful, considerate and generally polite manner in relation to colleagues, competitors, customers and others.

Our internal regulations include a prohibition against role conflicts that can prevent impartial conduct in relation to customers, suppliers, shareholders or other business connections.

The risk of criminal offences and violations of our Code of Conduct is monitored as part of our internal control system. The Board has chief responsibility for risk management and internal control, and the CEO is responsible for the implementation. Our most important risk areas and internal control are reviewed annually by the Board. Risk management and internal control are described in more detail in Note 3 and the Pillar III report.

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige Chapter 3 - Value creation in Gjensidige	2 38

Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66
Chapter 3 - Responsible investments in Gjensidige	87 38
Chapter 3 - We create a sense Chapter 3 - Good corporate governance of security	95 41
Chapter 3 - Responsible business – order in Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 our own house	96
Chapter 3 - Emerging risks Chapter 3 - Responsible investments	98 85
Chapter 3 - Our internal management system Chapter 3 - Good corporate governance	93
is decisive to our social mission 101
Chapter 3 - Effect of our efforts: Good Chapter 4 - Financial statements	115
	105
corporate governance
Chapter 3 - Gjensidige's Board of Directors Chapter 5 - Notes
comprises broad expertise	106
Chapter 3 - Corporate governance Appendix 2021	110 205
Chapter 3 - Our commitment to our owners
and creditors	114
Chapter 4 - Financial result	117
Financial statement including notes 2021	136

Training in and follow-up of compliance with ethical requirements

In the performance appraisal interview, all employees must state whether they have experienced ethical dilemmas and confirm to their line manager that they are familiar with the Code of Conduct.
All new employees must undergo necessary training and confirm that they have familiarised themselves with the Code of Conduct.
The induction programme for new employees includes the following compulsory e-learning courses:
- The Gjensidige Experience
- Information security
- Ethics, please
Data protection
Money laundering
Sustainability
The induction day for all new employees includes an ethics course.
Ethics course for all new managers.
The status of ethics is included in the six-monthly senior management follow-up, 'People Review'.
We are affiliated to the FinAut authorisation scheme, which requires all sellers/advisers to pass two knowledge tests: one digital test in ethical dilemmas and one practical test.

Data protection (GDPR)

Gjensidige processes personal data in accordance with the provisions of the Personal Data Act and the General Data Protection Regulation (GDPR). The group policy and instructions for the processing of personal data set out detailed requirements and principles for ensuring compliance with the statutory requirements. Gjensidige's employees are bound by a statutory duty of secrecy about all matters relating to our customers. Data protection training is mandatory for all employees and is also a part of the introductory programme for new employees. Access to personal data shall only be granted to employees who need it in the course of their work. The Company shall not obtain other personal data than it needs for the specific purposes for which they are processed. Personal data shall only be used and stored for as long as this is necessary for the purposes, and must then be erased, unless special requirements for storage are authorised by law.

The respective EVPs have overriding responsibility for the processing of personal data and internal control relating thereto. Other managers are responsible for ensuring that employees who have access to personal data have the competence and other qualifications required to comply with the applicable personal data regulations and the Company's internal guidelines for data protection.

Gjensidige has data protection officers whose main task is to inform and advise the management on the Company's obligations under data protection legislation, and to inform and advise employees who process personal data. The data protection officers monitor compliance with external and internal regulations and are in contact with the Norwegian Data Protection Authority, and with customers and employees who have queries about the processing of personal data. Customers and others Gjensidige processes personal data about can request access to the information stored about them at any time, and they can demand that incorrect information be corrected. Requests for access may be rejected in special cases following a concrete assessment, for example in connection with the investigation of insurance fraud. Our privacy statement is available at www.gjensidige.no. It describes how we handle personal data.

Information security more important than ever

Information security is about protecting information both electronically and physically. The main focus is to strike a balance between confidentiality, integrity and access to information. Gjensidige's business operations are largely about the processing and management of information. Good information security is therefore essential to maintaining our customers' trust and the Group's reputation and competitiveness.

Based on the security policy adopted by the Board, an information security management system has been established pursuant to ISO/ IEC27001/2, which regulates requirements of information security at Gjensidige. The security requirements are published in both Norwegian and English on the Group's intranet pages, and are accessible to all employees. Group Security sets the premise for all security activities and coordinates work on Gjensidige's security culture and crisis preparedness work. The department is organised under Group Risk Management and Control.

IT Security is organised as a separate department under Technology and Infrastructure and has executive responsibility for all technical security measures, access control and security monitoring of systems and infrastructure.

Gjensidige has modern security solutions that support remote work for all employees. The infrastructure only permits employees to log on from units owned by Gjensidige, and all activity on the Group's infrastructure is monitored by the external and internal security centres.
All employees have undergone security training through induction courses, e-learning courses and information through internal collaborative platforms
Phishing activity targeting the Group's users has increased considerably during the pandemic, but has not led to any incidents of significance
Active membership of the Information Security Forum (ISF) and Nordic Financial CERT helps to ensure updated expertise and capacity to be able to monitor cyber risk in general and the financial sector in particular.

There were no serious personal data breaches in Gjensidige in 2021

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige	2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66
Chapter 3 - Responsible investments in Gjensidige	87 38
Chapter 3 - We create a sense Chapter 3 - Good corporate governance of security	95 41
Chapter 3 - Responsible business – order in Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 our own house	96
Chapter 3 - Emerging risks Chapter 3 - Responsible investments	98 85

Chapter 3 - Our internal management system Chapter 3 - Good corporate governance	93
is decisive to our social mission 101
Chapter 3 - Effect of our efforts: Good Chapter 4 - Financial statements	115
corporate governance	105
Chapter 3 - Gjensidige's Board of Directors Chapter 5 - Notes
comprises broad expertise	106
Chapter 3 - Corporate governance Appendix 2021	110 205
Chapter 3 - Our commitment to our owners
and creditors	114
Chapter 4 - Financial result	117
Financial statement including notes 2021	136

• All Gjensidige's service providers must complete a requirements document and meet the Group's security requirements. All documents from suppliers are checked and more extensive control is carried out of business-critical providers, including inspections of suppliers

Complaints handling

Gjensidige has established a complaints system whereby customer complaints can be considered at three levels.

Level 1: The customer's case officer.
Level 2: The customer ombudsman (the Company's internal complaints board). The customer ombudsman service is staffed by highly experienced claims settlement personnel who can take a fresh look at the case without being influenced by the original case officer's personal assessment.
Level 3: The Norwegian Financial Services Complaints Board (Finansklagenemnda), which is a joint complaints board for the whole insurance industry that comprises representatives of the consumer authorities, the financial industry and independent experts. The composition ensures that the independent representatives decide the outcome of cases in which the consumer authorities and the financial industry disagree.
The customer ombudsman saw an increase in complaints of 45,7 per cent from the year before, as a result of a rise in travel insurance claims relating to Covid-19.
In the Private division, there was a decrease in complaints of 28 per cent. As many as 81 per cent of the complaints were considered within two weeks, compared with 82 per cent in 2020.
The Commercial division saw a decrease in complaints of 33 per cent from 2020. As many as 67 per cent of the complaints were considered within two weeks, compared with 78 per cent in 2020.

Notification channel

Gjensidige shall have a low threshold for reporting unpleasant matters. Employees who wish to raise such matters can contact their manager, the HR Department, their HSE manager, an employee representative or the safety delegate. Everyone has a duty to report criminal matters, or situations where life or health is at risk. A poster with

instructions on procedures for whistleblowing is easily accessible on our intranet site.

All employees are encouraged to notify their immediate superior or the unit responsible for the matter the report concerns, as well as through the external notification channel.

We have notification channels in all countries we operate in.

An internal channel for reporting ethics-related matters
An external channel for reporting irregularities and malpractices, corruption, money laundering etc.

Internal notifications are dealt with by the Company's HR Department based on clear procedures. External notifications are dealt with by Gjensidige's Internal Investigation Unit. If the investigation uncovers matters that warrant criticism, the HR Department will take over the case and consider whether to impose sanctions. The CEO will decide whether to report employees to the police. Relevant matters are reported to the Group's risk committee and the Board. Whistleblowers are protected by law and the Company's internal regulations, and employees who report such matters shall not be subjected to reprisals. External notifications are anonymous unless the whistleblower chooses to give their name. Employees may also report matters to this mailbox anonymously, as may customers, suppliers and other external stakeholders.

Measures to combat anti-competitive activities

Gjensidige's Board has adopted a group policy on prohibited restrictions of competition. It concerns and sets out measures to combat, among other things, illegal collaboration and abuse of a dominant position, which are the main activities targeted by the Norwegian Competition Act. In addition, there are dedicated procedures concerning cooperation and exchange of information between competitors via Finance Norway, to prevent illegal competitive practices.

Anti-corruption

Gjensidige does not accept any forms of corruption. Corruption is in breach of our Code of Conduct and can have major consequences

for both our employees and the Company. We therefore focus on awareness-raising and preventive activities. Gjensidige has been and shall continue to be a company in which everything we do must stand up to public scrutiny.

For Gjensidige, the risk of corruption will largely be related to the Company's sale of insurance and investment advice to the private and public sector, entering into agreements and the procurement of goods and services. Our definition of corruption follows from the Norwegian Penal Code:

'... any person who for himself/herself or others demands, receives or accepts an offer of an improper advantage in connection with the conduct of a position, an office or performance of an assignment, or gives or offers any person an improper advantage in connection with the conduct of a position, an office or performance of an assignment'.

Gjensidige's internal regulations state that the Company has zero tolerance for corruption and anything resembling corruption. The regulations consist of instructions and a group policy adopted by the Board. The group policy for corporate social responsibility, the group policy on the Code of Conduct, the group policy on specific ethical guidelines relating to hospitality activities and guidelines on welfare measures, seminars and gifts are also relevant in this context.

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige Chapter 3 - Value creation in Gjensidige	2 38

Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66
Chapter 3 - Responsible investments in Gjensidige	87 38
Chapter 3 - We create a sense Chapter 3 - Good corporate governance of security	95 41
Chapter 3 - Responsible business – order in Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 our own house	96
Chapter 3 - Emerging risks Chapter 3 - Responsible investments	98 85
Chapter 3 - Our internal management system Chapter 3 - Good corporate governance	93
is decisive to our social mission 101
Chapter 3 - Effect of our efforts: Good Chapter 4 - Financial statements	115
	105
corporate governance
Chapter 3 - Gjensidige's Board of Directors Chapter 5 - Notes
comprises broad expertise	106
Chapter 3 - Corporate governance Appendix 2021	110 205
Chapter 3 - Our commitment to our owners
and creditors	114
Chapter 4 - Financial result	117
Financial statement including notes 2021	136

Gjensidige does not allow giving or receiving bribes or facilitation payments. The rules apply to managers and employees at all levels of the Company, also in countries where Norwegian law does not apply. Special rules have been stipulated for employees with responsibility for relations with customers and suppliers.

Our anti-corruption programme consists of three main elements:

1. Preventive activities	Includes clear definitions and rules, clear authorisations, risk mapping, training and information material.
2. Control and detection	Includes audits, compliance activi ties, notification/whistleblowing, reporting and internal investigati on.
3. Follow-up and sanctions	Takes place in accordance with po licies and rules of procedure, and are decided by HR and, ultimately, the CEO

The programme gives a detailed description of what is meant by corruption, examples of acceptable and unacceptable behaviour, and assignments intended to contribute to reflection on difficult situations. It is not permitted to accept gifts worth more than NOK 500. Regardless of the gift's value, it must not be accepted if it means that the employee's impartiality or independence can be placed in doubt. All gifts and hospitality activities must be registered in the Company's gift and hospitality register. All managers are responsible for establishing procedures and processes in their area of responsibility in order to prevent and uncover irregularities and fraudulent acts, including corruption. The Internal Investigation Unit is tasked with uncovering corruption, and it is responsible for investigating concrete cases where improper conduct is suspected. The unit shall also contribute to establishing and developing procedures and processes that can prevent and uncover such matters. The programme is revised on an annual basis. Quarterly reports on irregularities and malpractices are submitted to the Board.

The rules are available at www.gjensidige.no, on the intranet and in e-learning courses, and managers shall contribute to ensuring that employees are aware of the rules. The purpose is to prevent and help to put a stop to activities that may entail a breach of the regulations at an early stage. All new employees in the Group participate in an introductory course at which ethics and corruption are on the agenda. Gjensidige does not make donations to politicians, political parties or organisations with a mainly political agenda.

Money laundering and financing of terrorism

Gjensidige is obliged to take a risk-based approach to money laundering and financing of terrorism in relation to its customers, based on the customer relationship and the type of products and transactions involved. In practice, this means that we carry out a risk assessment in connection with the sale of insurance to new and existing customers, and with the payment of claims. The risk assessment is comprehensive and is based on characteristics of the customer, the customer relationship, the product, the transaction and other matters of relevance. Employees who have contact with customers undergo thorough training in anti-money laundering regulations and procedures. This applies in all parts of the Group.

All customers are checked regularly against sanction lists and lists of politically exposed persons. The risk assessment may result in more extensive customer due diligence measures. Clear guidelines have been drawn up for when such measures shall be initiated, and how to handle a situation when it arises. If measures fail to clarify the situation, the Company will carry out further investigations in order to clarify whether the transaction can be carried out. The investigations are carried out by the Company's investigation department, which comprises employees who have previously worked in the police and have expertise in and experience of investigation. In cases where there is a suspicion of money laundering or financing of terrorism, and control measures have failed to clarify the suspicion, Gjensidige will report the matter as a suspicious transaction to the Norwegian

National Authority for Investigation and Prosecution of Economic and Environmental Crime (Økokrim). If a suspicion of money laundering or financing of terrorism cannot be clarified, the Company will not enter into the insurance contract or settle the claim, to the extent that such sanctions are permitted by law.

A solid defence against money laundering is not only necessary because it is regulated by law. In the insurance business, money laundering often goes hand in hand with insurance fraud. At Gjensidige, we consider the fight against money laundering as a natural part of good risk selection, based on the principle 'know your customers'. The money laundering policy has been adopted by the Board, and a risk assessment focusing on money laundering is presented to the Board and the senior group management once a year. The importance of combating money laundering is clearly communicated at all levels.

Our anti-corruption programme includes an overall description that has been made available to all employees.

Annual report 2021 | 105

Good corporate governance
Ethics

- Cases of harassment and discrimination reported via the notification channel



Anti-corruption

Customer complaints



Anti-money laundering

Personal data (GDPR)

Information security

Principal figures, good corporate governance	Unit	Target	2021	2020	2019	2018	2017
Good corporate governance
Ethics
- Incidents in the notification channel	Number	NA	44	39	114	NA	NA
- Cases of harassment and discrimination reported via the notification channel	Number	NA	1	0	0	0	0
- Cases under internal investigation, including cases of threats	Number	NA	52	49	65	59	51
- Total fraud checks	Number	NA	7 386	8 748	8 666	6 028	2 974
- Customer due diligence (reinforced controls)	Number	NA	199	114	14	43	20
Anti-corruption
- Procurements covered by agreements 1	Per cent		94	94	85	90	87
Customer complaints
- Customer complaints, Norway	Number	<600	842	1 183	1 095	1 262	1 299
- Successful complaints	Percent	NA	29	23	28	28	27
- Complaints upheld by the Financial Services Complaints Board	Per cent	NA	15	26	26	23	16
Anti-money laundering
- Cases reported to the authorities (Økokrim 2)	Number	NA	22	24	10	10	6
Personal data (GDPR)
- Incidents reported to the authorities	Number	NA	82	52	57
Information security
- Internal audits	Number	NA	7	14	16
- External audits	Number	NA	2	2	4	11	1
Fines	NOK	0	0	0	0	0	0

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige	2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66
Chapter 3 - Responsible investments in Gjensidige	87 38
Chapter 3 - We create a sense Chapter 3 - Good corporate governance of security	95 41
Chapter 3 - Responsible business – order in Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 our own house	96
Chapter 3 - Emerging risks Chapter 3 - Responsible investments	98 85
Chapter 3 - Our internal management system Chapter 3 - Good corporate governance	93
is decisive to our social mission	101
Chapter 3 - Effect of our efforts: Good Chapter 4 - Financial statements	115
corporate governance	105
Chapter 3 - Gjensidige's Board of Directors Chapter 5 - Notes
comprises broad expertise	106
Chapter 3 - Corporate governance Appendix 2021	110 205
Chapter 3 - Our commitment to our owners
and creditors	114
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271

Proportion of procurements with an underlying framework agreement that includes a requirement for a CSR statement. 2. Økokrim is Norway's National Authority for Investigation and Prosecution of Economic and Environmental Crime.

Content

Effect of our efforts: Good corporate governance

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige Chapter 3 - Value creation in Gjensidige	2 38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66
Chapter 3 - Responsible investments in Gjensidige	87 38
Chapter 3 - We create a sense Chapter 3 - Good corporate governance of security	95 41
Chapter 3 - Responsible business – order in Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 our own house	96
Chapter 3 - Emerging risks Chapter 3 - Responsible investments	98 85
Chapter 3 - Our internal management system Chapter 3 - Good corporate governance	93
is decisive to our social mission	101
Chapter 3 - Effect of our efforts: Good Chapter 4 - Financial statements	115
corporate governance	105
Chapter 3 - Gjensidige's Board of Directors Chapter 5 - Notes
comprises broad expertise	106
Chapter 3 - Corporate governance Appendix 2021	110 205
Chapter 3 - Our commitment to our owners
and creditors	114
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271

Gjensidige's Board of Directors comprises broad expertise

Gisele Marchand – Chair

Gisele Marchand (1958) holds an MBA from Copenhagen Business School.

Marchand was elected Chair of the Board in 2018, and has been a member of Gjensidige's Board of Directors since 2010. She is Chair of the Remuneration Committee and a member of the Risk Committee.

Marchand is a board member and Chair of the Audit Committee in Norgesgruppen ASA and Chair of the Board of Norgesgruppen Finans Holding AS. Furthermore, she is a member of the board and Chair of the Audit Committee of Scatec ASA. She is a member of the board of Selvaag Bolig ASA, where she is also a member of the Remuneration Committee and Chair of the Audit Committee. She is a board member of Eiendomsspar AS, Victoria Eiendom AS, , and Chair of the Board of Nationaltheatret AS and Boligbygg Oslo KF. She is a member of Entra Eiendom AS's Nomination Committee. She has also previously been a member of a number of other boards, including Norske Skog ASA and Oslo Børs AS.

Marchand has previously been CEO of the law firm Haavind AS, Eksportfinans AS, the Norwegian Public Service Pension Fund, and the Bates Group and Executive Vice President at Den norske Bank, with responsibility for retail and commercial customers in Norway.

Marchand has extensive management experience from the financial sector, in addition to insurance expertise through many years on Gjensidige Forsikring's Board. Marchand also has broad expertise in sustainable development from several different sectors.

Gisele Marchand is independent of key employees, main business partners and the main shareholder.

Marchand is up for re-election to the Board in 2022. Number of shares in Gjensidige: 1 481.

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige	2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66
Chapter 3 - Responsible investments in Gjensidige	87 38
Chapter 3 - We create a sense
Chapter 3 - Good corporate governance of security	95 41
Chapter 3 - Responsible business – order in Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 our own house	96
Chapter 3 - Emerging risks Chapter 3 - Responsible investments	98 85
Chapter 3 - Our internal management system Chapter 3 - Good corporate governance	93
is decisive to our social mission	101
Chapter 3 - Effect of our efforts: Good Chapter 4 - Financial statements	115
corporate governance	105
Chapter 3 - Gjensidige's Board of Directors Chapter 5 - Notes
comprises broad expertise	106
Chapter 3 - Corporate governance Appendix 2021	110 205
Chapter 3 - Our commitment to our owners
and creditors	114

Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271

Eivind Elnan – Board member

Elnan is Chair of the Board of Ax Innovasjon AS, Industrivegen 10 Verdal AS, FPS Holding AS and Boligbyggelaget Midt. Elnan is also a member of the board of Gjensidigestiftelsen.

Eivind Elnan (1974) has been a member of Gjensidige's Board of Directors since 2017. He holds an MSc in Industrial Economics and Technology Management (sivilingeniør) from the Norwegian University of Science and Technology (NTNU). Ellen Kristin Enger (1963) was elected employee representative to Gjensidige's Board of Directors in 2020.

Eivind Elnan is independent of key employees and main business partners.

Elnan attended all the board meetings in 2021. Elnan is up for re-election to the Board in 2022.

Number of shares in Gjensidige: 2 200.

Ellen Kristin Enger – Board member

Elnan has founded and built up several technology companies, including Securo AS and Hypoxic Technologies AS, which in 2017 become part of the German Wagner Group, and where he is now the general manager. Enger is a member of the board of Gjensidige Pensjonskasse and the Finance Sector Union of Norway's Vestfold and Telemark branch, and a deputy member attending meetings of the Finance Sector Union's central executive committee.

Elnan has previous work experience from Securo AS, Innherred Vekst AS and Accenture and other firms. Enger attended all the board meetings in 2021.

She works as a certified insurance adviser in accident and health insurance at Gjensidige Forsikring.

Enger has worked in Gjensidige Forsikring since 1986. She is also Gjensidige Forsikring's chief union representative.

Enger is up for re-election to the Board in 2022. Number of shares in Gjensidige: 1 211.

Gunnar Robert Sellæg – Board member

Gunnar Robert Sellæg (1973) was elected to the Board for the first time in 2020, and is also a member of the Remuneration Committee.

Sellæg has a master's degree (sivilingeniør) from the Norwegian University of Science and Technology the Department of Chemical Engineering, with emphasis on process control.

He is Chair of the Board of Catenda AS, Mimiro AS, Dogu-SalesScreen AS, Inspera AS and Laft.io AS, and a member of the board of NTEASA and Amedia AS and Dossier Solutions AS.

Sellæg has broad experience of startups, digital initiatives, innovation and internationalisation, including services such as WiMP/Tidal, E24, Min Sky and Appear.in/Whereby. He has held various positions at Schibsted, including as CEO of Aftenposten Multimedia AS, CEO of Aspiro AB, and Chief Product Officer and EVP Markets at Telenor Group ASA. In 2017, he was one of the three entrepreneurs who started Spring Capital Polaris, where he is currently partner and investor.

Gunnar Robert Sellæg represents Gjensidigestiftelsen and is independent of key employees and main business partners.

Sellæg attended all the board meetings in 2021. Sellæg is up for re-election to the Board in 2022. Number of shares in Gjensidige: 0.

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige	2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66
Chapter 3 - Responsible investments in Gjensidige	87 38
Chapter 3 - We create a sense
Chapter 3 - Good corporate governance of security	95 41
Chapter 3 - Responsible business – order in Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 our own house	96
Chapter 3 - Emerging risks Chapter 3 - Responsible investments	98 85
Chapter 3 - Our internal management system Chapter 3 - Good corporate governance	93
is decisive to our social mission	101
Chapter 3 - Effect of our efforts: Good Chapter 4 - Financial statements	115
corporate governance	105
Chapter 3 - Gjensidige's Board of Directors Chapter 5 - Notes
comprises broad expertise	106
Chapter 3 - Corporate governance Appendix 2021	110 205
Chapter 3 - Our commitment to our owners
and creditors	114
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271

Vibeke Krag – Styremedlem

Vibeke Krag (1962) has been a member of Gjensidige's Board of Directors since 2018.

Krag has a master's degree in law (cand.jur.) from the University of Copenhagen, and a Board Leadership Masterclass from Copenhagen Business School.

She is a member of the board of Nykredit A/S, Nykredit Realkredit A/S, Heimstaden AB, Heimstaden Bostad AB (Publ) and Konkurrencerådet (the Danish competition authority), appointed by the Danish government. Krag is also on the Board of Representatives of the Danish pension group ATP, and a member of the board of several small public institutions. She is also a member of the Nomination Committee for the University of Copenhagen.

Krag has broad management experience, legal expertise and extensive expertise and experience in insurance. She also has considerable experience of board work in a number of companies in the insurance, finance and energy sectors as well as public boards and committees. Vibeke Krag is independent of key employees, main business partners and the main shareholder.

Krag attended all the board meetings in 2021.

Krag is up for re-election in 2022. Number of shares in Gjensidige: 1 500.

Tor Magne Lønnum – Board member

Tor Magne Lønnum (1967) was elected to the Board for the first time in 2020.

Lønnum is a registered public accountant from BI Norwegian Business School, and holds the exam for state-authorised public accountants from the Norwegian School of Economics (NHH), as well as an Executive Master of Business and Administration from the University of Bristol and Ecole Nationale des Ponts et Chaussées. Lønnum is a member of the board of Recover Nordic. He is currently CFO of Falck A/S.

Lønnum has experience as Chair of the Board of Lindorff, and a board member of TGS Nopec Geophysical Company ASA, Bakkafrost and SR Bank. He has previous experience as CFO of Aimia Inc., Tryg as and Tryg Forsikring as. Lønnum also has experience as Manager of KPMG AS, CFO and EVP for Strategy and Group Development of Gjensidige NOR Forsikring and as CFO of Gjensidige Forsikring ASA. Tor Magne Lønnum is independent of key employees, main business partners and the main shareholder.

Lønnum was vacant from one ordinary board meeting and recused himself for one extraordinary board meeting in 2021.

Lønnum is up for re-election to the Board in 2022. Number of shares in Gjensidige: 12 000.

Ruben Pettersen – Board member

Ruben Petersen (1988) was elected employee representative to Gjensidige's Board of Directors in 2020.

Pettersen holds a bachelor's degree in business and administration with a major in economics from Trondheim Økonomiske Høgskole.

He has worked in Gjensidige Forsikring since 2013. He is the main employee representative for the Private division at Gjensidige Forsikring.

Pettersen attended all the board meetings in 2021.

Pettersen is up for re-election to the Board in 2022. Number of shares in Gjensidige: 513.

Content

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige	2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66
Chapter 3 - Responsible investments in Gjensidige Chapter 3 - We create a sense	87 38
Chapter 3 - Good corporate governance of security	95 41
Chapter 3 - Responsible business – order in Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 our own house	96
Chapter 3 - Emerging risks Chapter 3 - Responsible investments	98 85
Chapter 3 - Our internal management system Chapter 3 - Good corporate governance	93
is decisive to our social mission	101
Chapter 3 - Effect of our efforts: Good Chapter 4 - Financial statements	115
corporate governance	105
Chapter 3 - Gjensidige's Board of Directors Chapter 5 - Notes
comprises broad expertise	106
Chapter 3 - Corporate governance Appendix 2021	110 205
Chapter 3 - Our commitment to our owners
and creditors	114
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271

Hilde Merete Nafstad – Board member

Hilde Merete Nafstad (1963) has been a member of Gjensidige's Board of Directors since 2017.

Nafstad holds an MBA degree (siviløkonom) from BI Norwegian Business School.

Nafstad is a member of the board of Gjensidigestiftelsen, and holds several directorships in Equinor's international subsidiaries. Nafstad is VP of Finance and Control at Equinor. Nafstad has previously held several senior positions at Equinor (formerly Statoil), Norsk Hydro, Saga Petroleum and the Ministry of Petroleum and Energy.

Hilde Merete Nafstad is independent of key employees and main business partners.

Nafstad attended all the board meetings in 2021 Nafstad is up for re-election to the Board in 2022. Number of shares in Gjensidige: 2 946.

Terje Seljeseth – Board member

Terje Seljeseth (1960) has been a member of Gjensidige's Board of Directors since 2018.

ADB candidate/IT from Oslo Computer College (Datahøgskolen i Oslo) and a degree in mathematics/informatics from the University of Oslo.

Seljeseth is Chief Product Officer and a member of the board of Videocation.no AS, which he also founded. Until recently, he also worked on investments and analytics at Blommenholm Industrier, the biggest owner of Schibsted, with a controlling interest. He is a member of the board of Headhunter.ru in Russia, TX Markets in Switzerland and Spond AS in Norway. He held the position of CEO of Schibsted for many years and was responsible for developing Schibsted Classified Media (now Adevinta) and the business area Products and Technology. In addition, he has held various executive positions in technology at Schibsted, where he in 1999 started FINN.no and managed the company the first ten years.

Seljeseth is independent of key employees, main business partners and the main shareholder.

Seljeseth is up for re-election in 2022. Number of shares in Gjensidige: 2 505.

Sebastian Buur Gabe Kristiansen – Board member

Sebastian Buur Gabe Kristiansen (1987) joined Gjensidige's Board of Directors as an employee representative in 2020.

He is the union representative for Forsikringsforbundet at Gjensidige Forsikring in Denmark.

Gabe Kristiansen has a financial degree in insurance, pension and secured credit from Niels Brock in Copenhagen, and supplementary education from the Danish Insurance Academy.

Gabe Kristiansen has held various positions at both Alka Forsikring and If. At Gjensidige, he has worked on claims processing and system development.

Gabe Kristiansen attended all the board meetings in 2021.

Gabe Kristiansen is up for re-election to the Board in 2023. Number of shares in Gjensidige: 417.

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige	2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66
Chapter 3 - Responsible investments in Gjensidige	87 38
Chapter 3 - We create a sense Chapter 3 - Good corporate governance of security	95 41
Chapter 3 - Responsible business – order in Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 our own house	96
Chapter 3 - Emerging risks Chapter 3 - Responsible investments	98 85
Chapter 3 - Our internal management system Chapter 3 - Good corporate governance	93
is decisive to our social mission	101
Chapter 3 - Effect of our efforts: Good Chapter 4 - Financial statements	115
corporate governance	105
Chapter 3 - Gjensidige's Board of Directors Chapter 5 - Notes
comprises broad expertise	106
Chapter 3 - Corporate governance Appendix 2021	110 205
Chapter 3 - Our commitment to our owners
and creditors	114
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271

Corporate governance

Good corporate governance is important to ensure value creation over time, and to increase people's trust in the Company. Our statement on corporate governance is based on the Norwegian Code of Practice for Corporate Governance, adopted by the Norwegian Corporate Governance Board (NUES). This section is structured in accordance with the Code of Practice.

1. Statement on corporate governance

This statement is based on the principle of 'comply or explain'. There are no major deviations. However, in line with the requirements of the Code of Practice, we nonetheless include a statement on each point in accordance with the Code of Practice of 17 October 2018, later updated on 14 October 2021. Minor deviations are noted and explained.

2. The business

The Articles of Association describe the object of the business and set clear limits for its content. Gjensidige is a financial services group, and is subject to the restrictions and rules set out in the Financial Undertakings Act. Within this framework, Gjensidige primarily operates as a general insurance group in the Nordic countries and the Baltic states. In Norway, the Group is also engaged in life and pension insurance.

The Board sets clear objectives for the business with a view to creating value for the shareholders. The objectives take the surrounding world into account, including sustainability. They are described in the chapter 'Our goals and targets'. The objectives are revised and adopted on an annual basis.

Gjensidige's goals, strategies and risk appetite are reviewed on an ongoing basis, and at least once a year.

The Board works on strategic priorities throughout the year, and tests the assumptions on which Gjensidige's corporate strategy and under-

lying strategies are based, for the purpose of necessary adjustment. This takes place in connection with the Board's strategy seminar in June, and towards the end of the year.

3. Equity and dividends

The Board has a clearly communicated solvency and dividend policy adapted to the Company's objectives, strategy and risk appetite. It is available at www.gjensidige.no. The policy emphasises an annual cash dividend, and that any excess capital will not be retained by the Company, but will be disbursed to the shareholders over time.

Gjensidige's solvency and capital needs are, in principle, defined by the rules adopted by the authorities. The standard requirements that have been adopted are based on average figures. The Board would like solvency and capital requirements to be defined in relation to Gjensidige's actual exposure at all times, and it has therefore invested considerable resources in the Group's own internal model, which provides continuous, qualified information about solvency and capital needs. The model constitutes a good, relevant decision-making basis for the Board in the areas covered by the model, and has been approved by the Financial Supervisory Authority, subject to some additional conditions. The Board has also decided that Gjensidige shall meet the requirements for an A-rating, which also has implications for its final solvency and capital decisions.

It is considered expedient for the Board to be authorised by the General Meeting to make decisions concerning the distribution of dividends throughout the year if there are financial grounds for doing so. Such decisions must be formally based on the most recently approved annual accounts, and will, if relevant, come in addition to the dividend adopted by the General Meeting. Such authorisation must be decided by the General Meeting, and it will apply until the next annual general meeting, no longer, however, than until 30 June the following year.

The Board believes it is expedient for the Board to be authorised to purchase own shares, partly to fulfil the Group's share savings programme and remuneration schemes for employees, and partly so that shares can be used as consideration in connection with the acquisition of businesses or for subsequent sale or cancellation. Such authorisation must be decided by the General Meeting and will apply until 30 June the following year.

The Board believes it is expedient for the Board to be authorised to raise subordinated loans and other external financing, and to trade in the bonds issued at all times under the Company's subordinated bond issues. Such authorisation must be decided by the General Meeting and will apply until the next annual general meeting, no longer, however, than until 30 June the following year.

Furthermore, the Board believes it is expedient for the Board to be given limited authority to increase the share capital through subscription for new shares. Such authorisation must be decided by the General Meeting and will apply until 30 June the following year. Reference is made to the items to be considered by the General Meeting for more information and for the conditions that are set.

Deviation: The Code of Practice recommends that the grounds for such authorisations should be explained and that they should be limited to defined purposes. The Board fundamentally agrees with this, but believes that a certain degree of flexibility is necessary. As long as the authorisations are clearly limited in time and scope, and, in reality, merely adjust and rationalise the undertaking's capital structure, the Board's management authorisation should include powers to make such decisions rather than having to hold an extraordinary general meeting.

4. Equal treatment of shareholders and transactions with related parties

Shareholders' pre-emption rights in connection with an increase in share capital is an important and fundamental right in a good, harmonious shareholder community, and the pre-emption right can only be waived in exceptional circumstances. Waiving of this right will be based on the Company's and shareholders' mutual interests. In such case, there will be full openness about the matter, and the shareholders will receive identical information simultaneously through a stock exchange announcement and subsequently on our website. This also applies if the Board utilises the authorisations it has been granted. The Board's transactions in own shares must always comply with the arm's length principle and be on ordinary market terms. Transactions between related parties and group companies must take place on commercial terms, and on the basis of an independent evaluation if the transaction is not immaterial.

5. Shares and negotiability

There are no provisions in the Company's Articles of Association that limit the right to own, trade or vote for shares in the Company.

6. General meetings

The annual general meeting is an important arena for all shareholders. The company held the general meeting online for the first time in 2021. The solution safeguards the shareholders' rights by giving them an opportunity to participate electronically, ask questions and vote directly for each item on the agenda, using their phone, tablet or computer. Prior to the meeting, the shareholders have ample opportunity to contact the Company to clarify matters or to get help to rai-

se items at the meeting. More information is available on our website. The Chair of the Board opens the general meeting in accordance with the Company's Articles of Association. The General Meeting elects the chair of the meeting.

The Board is aware that the Code of Practice recommends that it should be made possible to vote for individual candidates to the Board and Nomination Committee. Elections are demanding in financial undertakings, partly because of official suitability requirements and partly because of the requirements of the Board's combined expertise, i.e. to ensure a functioning board with broad expertise. The Board underlines that elections require an extensive process. All shareholders can submit proposals for candidates, and the Nomination Committee contacts the biggest shareholders in writing. All submitted views are taken into account. The Board considers this work to be very important to the Company's business, position and further development.

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige	2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66
Chapter 3 - Responsible investments in Gjensidige	87 38
Chapter 3 - We create a sense
Chapter 3 - Good corporate governance of security	95 41
Chapter 3 - Responsible business – order in Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 our own house	96
Chapter 3 - Emerging risks Chapter 3 - Responsible investments	98 85
Chapter 3 - Our internal management system Chapter 3 - Good corporate governance	93
is decisive to our social mission	101
Chapter 3 - Effect of our efforts: Good Chapter 4 - Financial statements	115
corporate governance	105
Chapter 3 - Gjensidige's Board of Directors Chapter 5 - Notes
comprises broad expertise	106
Chapter 3 - Corporate governance Appendix 2021	110 205
Chapter 3 - Our commitment to our owners
and creditors	114
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271

Deviation: The Code of Practice recommends that it should be made possible to vote for individual candidates to the Board and Nomination Committee. Elections are demanding in financial undertakings, partly because of official suitability requirements and partly because of the requirements of the Board's combined expertise. The election is therefore organised such that the General Meeting votes on the Nomination Committee's overall recommendation.

7. Nomination Committee

The Company has a Nomination Committee, as provided for in the Articles of Association, comprising four to six members. The General Meeting elects the chair and members, and stipulates the committee's remuneration.

The committee members are independent of the shareholder-elected board members and executive personnel.

The Nomination Committee's duties include proposing candidates for the Board and the Nomination Committee and proposing the remuneration of the members of these bodies, as well as the remuneration of the Board's select committees. In financial undertakings, the General Meeting elects the Chair of the Board. The Chair is elected from among the shareholder-elected board members. One of the board members elected from among the employees therefore takes part in discussions and decisions on the recommendation for Chair of the Board. This is by our own choice, and it is in accordance with the principle of workplace democracy that generally prevails in Norway.

The Nomination Committee also submits a recommendation for the election of the external auditor. The Board's Audit Committee is responsible for preparing the Company's election of the auditor and for giving its recommendation before the Nomination Committee's recommendation is presented to the General Meeting.

The Nomination Committee is easily accessible to shareholders, and the process is subject to deadlines to ensure that the views of all shareholders are made known before the relevant discussions take place in the Nomination Committee.

8. The Board

In the Board's opinion, the composition of the Board safeguards the interests of the shareholders as a whole, and the Company's needs for competence, capacity and diversity.

At least two of the shareholder-elected members are independent of the Company's main shareholder. The Chair of the Board is independent of the Company's main shareholder, Gjensidigestiftelsen, and have the same relationship to all shareholders. No executive personnel or representatives of business associates are members of the Board. The shareholder-elected board members are elected by the General Meeting, and in accordance with the Articles of Association, for one year at a time. The employee representatives are elected for two years at a time. The Nomination Committee encourages board members to own shares in the Company.

9. The work of the Board

The board has held 10 ordinary board meetings in 2021, of which one is a strategy seminar over 3 days. In addition, four extraordinary events have taken place as well as one meeting on circulation. In 2021. The meetings have been held on Teams, with the exception of in the period September to November.

In accordance with the law, the Board has established three board committees made up of the Company's board members – the Remuneration Committee, the Audit Committee and the Risk Committee. The committees' mandates are based on a Group perspective. The board committees are preparatory committees and do not have the power to make decisions. In line with the Code of Practice, the majority of the Audit Committee's members are independent of the Company. In the Board's experience, the introduction of board committees has improved its work, and has led to deeper and stronger involvement in the business's challenges and initiatives.

In accordance with the Financial Undertakings Act, the Company has established four independent control functions that each play a key role within their areas of responsibility – the Risk Management function, the Compliance function, the Actuary function and the Internal Audit function. Those involved are all employees of the Company. The internal auditor – the head of the Internal Audit function – is appointed by the Board, which also decides the auditor's salary, and has a special position as the Board's most important control officer. The others are appointed by the CEO. The functions are described in more detail in Note 3. The Board emphasises that these functions have a close relationship with the Board through board work and reporting, and, in particular, the work in the board committees.

The Board has adopted rules of procedure for its work, and works on the basis of an annual plan. Transparency and room for input to the Board are given emphasis. The board members have effective access to material relevant to their board work through the Admincontrol portal.

If a board member is disqualified on grounds of partiality, he/she cannot be involved in consideration of the matter in question, and must leave the board room and is excluded from involvement in the matter. If the Chair of the Board has been directly or indirectly involved in a matter, another board member has chaired the meeting instead. The Board carries out an annual self-evaluation, with or without external help. The Nomination Committee has access to the evaluation. It also

holds discussions with the Board and the Company's management on their work and the expertise needed to meet the challenges that are expected to arise in the longer term.

10. Risk management and internal control

The Board complies with the Code of Practice in its work on risk management and internal control. The Company's most important risk areas and the internal control system are continuously reviewed.

The work on internal control is based on the COSO principles, which comprise three lines of defence. They are the management's own control measures (first line), the Compliance and Risk Management functions' control measures (second line) and the Internal Audit (third line). Gjensidige is first and foremost an insurance group. The independent actuary function is therefore an important and necessary part of the Board's work, as a control function for actuarial tasks, including assessment of the technical provisions.

2
14
2 38

41 14
53
66
87 38
95 41
53
Chapter 3 - Climate and the environment 65 96
98 85
Chapter 3 - Good corporate governance 93
101
115
105

106
110 205

114
117
136
271

The accounting department has established processes for good internal control, and focuses on having the right expertise and sufficient resources to be able to prepare the accounts and other statutory reporting in accordance with the applicable laws and regulations. The reporting of deviations and other established systematic reporting gives the Board insight into the processes and status.

In the Board's opinion, the control environment is good and functions as intended. The framework for the assessment of risk – identification and qualification of risks – is continuously quantified and evaluated. Control activities and the coordination of the different control environments are adopted annually by and in consultation with the Board. The Board's Audit Committee is responsible for information, communication and risk monitoring.

In connection with risk management, the Board adopts annual risk limits in light of the Company's future plans, financial strength and the capital plan communicated to the shareholders. See Note 3 for more information.

The Board's report on CSR and sustainability is integrated in this report. Consideration for society at large is an integral part of Gjensidige's strategy and a precondition for long-term value creation.

11. Remuneration of the Board

The Board's remuneration is decided by the General Meeting on the Nomination Committee's recommendation, and is described in Note 8.

None of the board members have share options or other incentives issued by the Company. Reference is made to the Nomination Committee's presentation, assessment and proposal, which are available on the Company's website www.gjensidige.no.

12. Remuneration of executive personnel The Board has adopted guidelines for a remuneration scheme that applies to executive personnel. It is presented to the General Meeting each year, together with a report on any deviations that have taken place since the previous annual general meeting. The statement and the report on remuneration of executive personnel are available at www.gjensidige.no.

The guidelines help to ensure good alignment between shareholder and employee interests. The remuneration scheme is linked to value creation over time, and is based on quantifiable factors that the employee can influence. A ceiling has been set for performance-based remuneration.

13. Information and communications

The Board has adopted an IR policy for the Company's reporting of financial and other investor information. It is based on openness and takes into account the requirement for equal treatment of shareholders and other stakeholders in the securities market. The IR policy is published at www.gjensidige.no. The IR policy also regulates the Company's contact with shareholders.

14. Corporate takeovers

Guidelines have been adopted for how the Board shall respond to any takeover bids. The guidelines are in accordance with the Code of Practice.

The Board points out that Gjensidigestiftelsen owns more than 60 per cent of the shares, and that a takeover bid process would there fore be unusual. However, the Board is prepared to engage in such dialogue out of consideration for the shareholders as a whole, and to take part in value-creating discussions with any parties with inte resting value propositions.

15. The external auditor

The external auditor submits his/her plan for the performance of the audit each year. The plan is initially discussed by the Board's Audit Committee, and is also seen in conjunction with other internal con trol and risk management plans. The plan is considered at a board meeting with the external auditor in attendance. The external auditor plays an important role, and it is his/her task to confirm to the General Meeting that the accounts adopted by the Board are correct. The Bo ard places great emphasis on openness in relation to the external au ditor and the audit team, and on ensuring good, efficient cooperation with employees, and that the auditor has the access he/she requires.

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige	2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66
Chapter 3 - Responsible investments in Gjensidige	87 38
Chapter 3 - We create a sense Chapter 3 - Good corporate governance of security	95 41
Chapter 3 - Responsible business – order in Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 our own house	96
Chapter 3 - Emerging risks Chapter 3 - Responsible investments	98 85
Chapter 3 - Our internal management system Chapter 3 - Good corporate governance	93
is decisive to our social mission	101
Chapter 3 - Effect of our efforts: Good Chapter 4 - Financial statements	115
corporate governance	105
Chapter 3 - Gjensidige's Board of Directors Chapter 5 - Notes
comprises broad expertise	106
Chapter 3 - Corporate governance Appendix 2021	110 205
Chapter 3 - Our commitment to our owners
and creditors	114
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271

It is primarily the Audit Committee and the Company's management that are in continuous contact with the external auditor. The Nomi nation Committee is tasked with evaluating the external auditor's overall contribution, and recommending election or re-election. The Audit Committee plays a key role in preparing the election of the auditor. The Nomination Committee occasionally proposes changing the external auditor, irrespective of the auditor's contribution, in part to ensure new impulses and assessments, and in part to subject the audit to competitive tender.

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige	2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66
Chapter 3 - Responsible investments in Gjensidige	87 38
Chapter 3 - We create a sense
Chapter 3 - Good corporate governance of security	95 41
Chapter 3 - Responsible business – order in Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 our own house	96
Chapter 3 - Emerging risks Chapter 3 - Responsible investments	98 85
Chapter 3 - Our internal management system Chapter 3 - Good corporate governance	93
is decisive to our social mission	101
Chapter 3 - Effect of our efforts: Good Chapter 4 - Financial statements	115
corporate governance	105
Chapter 3 - Gjensidige's Board of Directors Chapter 5 - Notes
comprises broad expertise	106
Chapter 3 - Corporate governance Appendix 2021	110 205
Chapter 3 - Our commitment to our owners
and creditors	114

Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271

Our commitment to our owners and creditors

Gjensidige shall make sure that the financial market participants have an adequate basis for assessing the Group's value, and for engaging in dialogue with owners, potential investors, analysts and other market participants. Gjensidige's goal is to distribute high, stable nominal dividends to its shareholders, and maintain a payout ratio of at least 80 per cent of profit after tax over time. In addition, Gjensidige will over time distribute excess capital.

Gjensidige shall have an open dialogue with all capital market stakeholders, and follows the Oslo Børs Code of Practice for Investor Relations.The IR Policy adopted by the Board is available at www.gjensidige.no/investor. We will make sure that financial market participants have an adequate basis for assessing the Group's value through simultaneous access to the same correct, clear and relevant information at all times. The information must be consistent and well-balanced. As a rule, we do not disclose specific guidance for future financial performance.

Each quarter, we meet with investors and analysts to discuss our results and business operations. A member of Gjensidige's Investor Relations team usually attends these meetings, possibly together with the CEO and/or the CFO, or another relevant executive from the Company.

Covid-19 led to changes in our contact with investors in 2021. The meetings have largely been conducted either by video or phone. The same applied to conferences and other seminars. The high frequency of meetings was maintained through the year, and the level of service and degree of information remained at a high level despite the lack of physical meetings.

Return on the Gjensidige share

The Gjensidige share yielded a total return for the shareholders of 20 per cent in 2021. Oslo Børs recorded a total return of 23 per cent during the same period. Since the Company was listed on the stock exchange in December 2010, the Gjensidige share has yielded a total return of 676 per cent.The average daily trading volume on Oslo Børs was around 500 000 shares in 2021, and the share is one of the 25 most liquid shares listed there. In addition, a substantial number of shares are traded in other marketplaces.

Gjensidige Forsikring total return (indexed) and volume in 2021

Financial calendar 2022
24 March 2022	Annual General Meeting
27 April 2022	Release of first quarter results
15 July 2022	Release of second quarter results
21 October 2022	Release of third quarter results

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige	2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66
Chapter 3 - Responsible investments in Gjensidige	87 38
Chapter 3 - We create a sense
Chapter 3 - Good corporate governance of security	95 41
Chapter 3 - Responsible business – order in Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 our own house	96
Chapter 3 - Emerging risks Chapter 3 - Responsible investments	98 85
Chapter 3 - Our internal management system Chapter 3 - Good corporate governance	93
is decisive to our social mission	101
Chapter 3 - Effect of our efforts: Good Chapter 4 - Financial statements	115
corporate governance	105
Chapter 3 - Gjensidige's Board of Directors Chapter 5 - Notes
comprises broad expertise	106
Chapter 3 - Corporate governance Appendix 2021	110 205
Chapter 3 - Our commitment to our owners
and creditors	114

Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271

Dividend and dividend policy

Gjensidige pursues a shareholder-friendly capital and dividend policy, and the Gjensidige share is and should be a dividend-paying share.

High and stable dividend over time

Based on profit/ Distribution of Dividend per share loss for the year excess capital		Twenty biggest shareholders as of 31 Dec. 2021 2
2021 1 7.70	1	Gjensidigestiftelsen
2020 7.40 6.40	2	Folketrygdfondet
2019 7.25 5.00	3	BlackRock Inc
2018 7.10	4	Deutsche Bank
2017 7.10	5	Nordea
1. Proposed dividend for 2021 will be adopted by the Annual General Meeting on 24 March 2022.	6	Scotia Bank
Gjensidige's goal is to distribute high and stable nominal dividends	7	The Vanguard Group, Inc
to shareholders, the expected future capital need will be taken into	8	State Street Corporation
account. When determining the size of the dividend, consideration	9	Danske Bank
will be given to expected future capital needs. Over time, Gjensidige will also distribute excess capital.	10	Storebrand Investments
	11	ORIX Corporation
The Board has proposed a dividend based on the profit for 2021 of	12	KLP Kapitalforvaltning
NOK 3 850 million, corresponding to NOK 7.70 per share. This cor responds to a pay-out ratio of 54 per cent of the Group's profit after	13	Svenska Handelsbanken Group
tax. The dividend for the 2021 financial year will be adopted by the	14	DNB ASA
General Meeting on 24 March 2022. The adopted dividend will be	15	BNP Paribas Group
distributed to those registered as shareholders on the date of the meeting. The Gjensidige share will be traded ex dividend on 25 March	16	Barclays Bank
2022, the settlement date will 28 March 2022 and the dividend will	17	Arctic Asset Mgt
be disbursed on 6 April 2022.	18	UBS Group AG
Gjensidigestiftelsen's share of the dividend amounts to NOK 2.4 billi	19	Societe Generale
on. Pursuant to the foundation's statutes, the dividend relating to the	20	Legal & General Group

profit for the year will be passed on to Gjensidige's general insurance customers in Norway. The customer dividend will be adopted by the foundation's General Meeting in the second quarter of 2022.

Ownership

At year-end 2021, Gjensidige had approximately 36,000 shareholders. The 20 biggest owners represented a total of 84.2 per cent of the shares in the Company.

2.The list of shareholders is based on an analysis of the register of shareholders in the Norwegian Securities Depository (VPS) per 31 December 2021, conducted by Orient Capital Ltd. The analysis maps the owners behind the various nominee accounts. There is no guarantee that the list is correct.

Chapter 1 - We are Gjensidige	2
Content Chapter 2 - This is us	14
Chapter 1 - We are Gjensidige	2
Chapter 3 - Value creation in Gjensidige	38
Chapter 3 - We create a sense of security Chapter 2 - This is us	41 14
Chapter 3 - Our motivated employees	53
Chapter 3 - Climate and the environment Chapter 3 - Creating added value	66
Chapter 3 - Responsible investments in Gjensidige	87 38
Chapter 3 - We create a sense
Chapter 3 - Good corporate governance of security	95 41
Chapter 3 - Responsible business – order in Chapter 3 - Our engaged employees	53
Chapter 3 - Climate and the environment 65 our own house	96
Chapter 3 - Emerging risks Chapter 3 - Responsible investments	98 85
Chapter 3 - Our internal management system Chapter 3 - Good corporate governance	93
is decisive to our social mission	101
Chapter 3 - Effect of our efforts: Good Chapter 4 - Financial statements	115
corporate governance	105
Chapter 3 - Gjensidige's Board of Directors Chapter 5 - Notes
comprises broad expertise	106
Chapter 3 - Corporate governance Appendix 2021	110 205
Chapter 3 - Our commitment to our owners
and creditors	114

Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271

Gjensidigestiftelsen aims for a leading, long-term ownership of Gjensidige and wishes to contribute to ensuring predictable and stable ownership. According to the ownership policy, the goal is an ownership fraction that exceeds 60/40 over time, but Gjensidigestiftelsen has expressed willingness to consider a reduced ownership fraction in the event of any acquisitions or capital increases that are in accordance with Gjensidige's overall strategy.

Wide geographical distribution of shareholders, with a strong national base 1.

As of 31 Dec. 2021, excl. Gjensidigestiftelsen

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Chapter 4 - Strategy and outlook	134
Financial statement including notes 2021	136
Appendix 2021	271

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Chapter 4 - Strategy and outlook	134
Financial statement including notes 2021	136
Appendix 2021	271

Financial result

Strong operations, effective pricing measures, good risk selection and stringent cost control resulted in the highest ever underwriting result (excl. run-off gains) and profit in the history of the Group. The Group delivered on all its financial targets and the outlook for Gjensidige remains promising. The Board proposes an ordinary dividend of NOK 7.70 per share.

Statement on the annual accounts

Gjensidige reports consolidated financial information pursuant to the International Financial Reporting Standards (IFRS). In accordance with the requirements of Norwegian accounting legislation, the Board confirms that the requirements for the going concern assumption have been met and that the annual accounts have been prepared on this basis. The preparation of the accounts and application of the chosen accounting principles involve using assessments and estimates, and necessitate the application of assumptions that affect the carrying amount of assets and liabilities, income and expenses. The estimates and the pertaining assumptions are based on experience and other factors. The uncertainty associated with this means that the actual figures may deviate from the estimates. Insurance liabilities in particular are associated with this type of uncertainty.

The Group recorded a profit before tax expense of NOK 8,799.4 million (6,341.7) for the period.

The profit from general insurance operations measured by the underwriting result was NOK 5,718.3 million (5,075.6), corresponding to a combined ratio of 80.4 (81.3).

The profit after tax expense was NOK 7,141.1 million (4,953.9). Earnings per share amounted to NOK 14.28 (9.91).

The increase in the underwriting result was driven by 7.3 per cent growth in earned premiums and higher run-off gains. Earned premi-

ums rose 8.8 per cent measured in local currency. The underlying fre quency loss was unchanged. Adjusted for the effects of the weather and Covid-19 claims, the underlying frequency loss ratio improved by
1.4 percentage points.
The landslide at Gjerdrum incurred a net effect of 0.7 percentage points on the Group's combined ratio in 2020.
The extraordinarily cold winter in Norway in the first quarter resulted in significantly higher freeze and fire claims for property insurance compared with the first quarter in 2020. The impact on the underlying frequency loss ratio for the year was 0.7 percentage points.
The Covid-19 pandemic had a positive impact on the Group's claims, estimated at approximately NOK 347 million (296), corresponding to 1.2 percentage points (1.1) on the loss ratio. The positive effect was primarily due to less travel activity and driving.
The Pension segment recorded a higher profit due to higher operating income.
The return on financial assets was 5.1 per cent (2.2) or NOK 3,063.1 million (1,341.7). The rise in interest rates in 2021 had a negative impact on fixed income investments with a long duration. At the same time, lower credit margins contributed positively. There were also some positive effects from higher inflation (lower real rates) in the

fixed-income portfolio. Net of these changes, there was a modest positive return on fixed income securities. Due to low real rates in an environment with good real growth and increasing inflation (from low levels) in the economy, equities, commodities and real estate performed well and made strong contributions to the financial result.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Chapter 4 - Strategy and outlook	134
Financial statement including notes 2021	136
Appendix 2021	271

Important events in 2021

The coronavirus pandemic

The coronavirus pandemic has had a significant impact on global developments in 2021 as well, and has massively affected society's day-to-day functioning. Great uncertainty is associated with patterns in international logistics and the pace of economic recovery in general. The health and safety of our employees, customers and other stakeholders has continued to be a priority through the second year of the pandemic. Gjensidige has followed up the infection control measures introduced by the authorities by offering employees flexible work arrangements while continuing to impose restrictions on social events and travel. Technological solutions have been further improved through 2021 to ensure that customers get the service level they deserve, and that other important functions work as intended. Our capable, dedicated employees have adjusted to the situation through the changes and maintained a very high customer service level throughout the year while also ensuring good operations.

New financial and operational targets

In autumn 2021, the Board adopted updated financial targets that apply to each year from 2022 up to and including 2025. Operational targets were also adopted that we aim to reach during 2025. They were described in more detail in connection with the Capital Markets Day in November 2021. See page 19 for an overview of the new targets.

Capital and balance sheet optimisation

Gjensidige works continuously on balance sheet and capital optimisation in order to ensure attainment of the Group's financial targets as well as an efficient capital structure and sufficient financial flexibility.

In February 2021, a dividend of NOK 1,200.0 million was distributed, corresponding to NOK 2.40 per share, and in November a dividend of NOK 2,000.0 million, corresponding to NOK 4.00 per share, representing the distribution of excess capital. In April 2021, we paid a regular dividend of NOK 3,700.0 million relating to the profit for 2020.

The Board has proposed a regular dividend of NOK 3,850 million, corresponding to NOK 7.70 per share, based on the profit for 2021. This corresponds to a pay-out ratio of 54 per cent of the Group's profit after tax.

In April, Gjensidige Forsikring ASA issued a perpetual Tier 1 loan and a Tier 2 loan with a 30 year term to maturity, both in the amount of NOK 1,200 million. The placements were made at favourable terms of 3M NIBOR + 225bp and 3M NIBOR + 110bp, respectively. The loans were listed on Oslo Børs in June. The perpetual Tier 1 loan of NOK 1,000 million that was issued in 2016 was redeemed in September 2021. Gjensidige Pensjonsforsikring AS (GPF) redeemed the Tier 2 loan of NOK 300 million in June.

At year-end 2021, the remaining capacity to issue Tier 1 loans amounted to between NOK 2.3 and NOK 2.8 billion, and Tier 2 loans to NOK 0.7 billion. It is not Gjensidige's ambition to fully utilise this capacity, but it will consider the possibilities for issuing further loans contingent on satisfactory market terms. In addition, other balance sheet and capital optimisation measures will be continuously assessed.

Strong reputation, high customer satisfaction and loyalty

Gjensidige has a strong reputation and brand in Norway. For the 30th year in a row, Ipsos has conducted a profile survey that maps the population's attitudes to large Norwegian companies. Once again, Gjensidige had the best reputation in the financial sector, and came in sixth place overall. That is the same high ranking as in the past two years. And not only that; Gjensidige was ranked at the very top among all the 115 companies in the category economy and profitability. The company also made it into the top 10 in the categories corporate social responsibility (4) and advertising and information (7). Customer satisfaction surveys show that Gjensidige's customers continued to be very satisfied throughout 2021. Customer satisfaction has remained at a stable high level of 79 throughout the year. Satisfaction is

highest among customers who have had an injury. One explanation for this development is that we have been very accessible and provided good service throughout the year, despite the ongoing pandemic. Customer satisfaction is high in Gjensidige Norway, which confirms high satisfaction with our services. About 85 per cent of premiums in the Private segment come from private customers who are members of an affinity or loyalty programme. These customers often show even stronger loyalty than average. Our most loyal insurance customers are those who have the most products.

New core system

Gjensidige is developing a new core system, called IDIT, for general insurance. IDIT will be a platform that gives us long-term flexibility for the development of new products and services in order to improve customer experiences. The new core system will strengthen our profitability and competitiveness and contribute to significant cost effects in the long term. The investment in the new core system is expected to be managed in line with the current cost ratio target. The system was taken into use for external customers in Denmark duringr the second quarter, and was initially used for selected private insurance. We will gradually include commercial products in Denmark, and eventually implement the system in Sweden and finally Norway.

Unique customer dividend model in Norway

The arrangement whereby Gjensidige's biggest owner, the Gjensidigestiftelsen, pays dividend to our customers, is unique. Every year since the Company was listed on the stock exchange, Gjensidigestiftelsen has paid customer dividend to its Norwegian general insurance customers based on how much they pay in insurance premiums. During this period, customers have received an annual amount corresponding to 11–16 per cent of their premium. We measure customers' awareness of the customer dividend on an ongoing basis. In the fourth quarter 2021, 90 per cent of customers were aware of the customer dividend model and 79 per cent stated that the model contributed to their wanting to continue as customers. Awareness of the customer dividend system among potential customers was 60 per cent.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Chapter 4 - Strategy and outlook	134
Financial statement including notes 2021	136
Appendix 2021	271

Good cooperation with partners

Gjensidige has many years' experience of partnership agreements. Distribution in cooperation with our partners is an important part of the business model in all the Group's geographic locations and segments. Our partnership agreements are usually structured so that the customer dialogue takes place directly with Gjensidige. Gjensidige works closely with its strategic partners, and good management of partnership agreements will be given priority also in the time ahead.

Gjensidige has a close partnership with Nordea and is co-located in 21 locations. Under the collaboration agreement, Gjensidige undertakes to refer potential banking customers to Nordea and Nordea to refer insurance customers to Gjensidige. In addition, we promote each other's products in digital sales and marketing channels. The partnership includes the Private and Commercial segments.

Gjensidige has agreements with 11 mutual fire insurers after the agreement was renewed in 2020. From 1 January, we took over full responsibility for areas where four mutual fire insurers have terminated their cooperation with us, and have established dedicated offices in these locations. In the mutual fire insurers' areas, customers are insured by Gjensidige and serviced by the mutual fire insurers as agents.

The distribution partnership between Gjensidige and Nykredit ended on 1 May 2021. The termination of the agreement provides for the possibility of collaborating with new partners in the Danish banking sector, and in connection with the NEM transaction, we started our collaborations with Middelfart Sparekasse and Sparekassen Kronjylland. In addition, we have expanded our partnership network in Denmark by entering into an agreement with Home, a leading Danish estate agent. This will help to consolidate our position in private property insurance.

Acquisition of Falck's road service companies

In December 2021, Gjensidige Forsikring ASA agreed to acquire Falck's road service companies in Norway Sweden, Finland, Estonia and

Lithuania (Falck RSA Nordic and Baltics) from the Falck group for SEK 1.4 billion. The company is a leading road service provider in those five countries, with more than 1,400 recovery vehicles across 370 stations. Falck offers all forms of roadside assistance to motorists, from simple on-site repairs to transport to a garage. Insurance and roadside assistance are all about creating a sense of security and solving problems for customers. The areas of activity are therefore very well matched, and the acquisitions are in line with Gjensidige's strategy of becoming a problem-solver for its customers.

The acquisition will be completed in the first quarter 2022.

Sale of Oslo Areal

In December 2021, Gjensidige Forsikring ASA and AMF Pensionsförsäkring AB entered into an agreement on the sale of their respective holdings of 50 per cent in Oslo Areal to Entra ASA, for a total price of approximately NOK 13.55 billion. The purpose of the sale is to provide more room for the strategic development of Oslo Areal. Gjensidige received sales proceeds of NOK 6.8 billion for its 50 per cent holding when the transaction was completed in January 2022. The gain from the sale amounts to about NOK 2 billion, NOK 1.2 billion of which were recognised in the Group's income statement for the fourth quarter 2021, and the remaining NOK 0.8 billion will be recognised in the income statement for the first quarter 2022.

Acquisition of NEM Forsikring

In April 2021, Gjensidige Forsikring entered into an agreement for the acquisition of NEM Forsikring from the group of owners consisting of Sparekassen Kronjylland, Middelfart Sparekasse, NEM s.m.b.a. and Smidt & Kromand Holding A/S. The acquisition was completed in October 2021 and will strengthen Gjensidige's strategy for profitable growth in Denmark.

NEM Forsikring is a locally based insurance company that goes back more than 100 years. The company's business model is based on the sale of private insurance policies in close cooperation with a number

of enterprises and organisations, in addition to sales of insurance products to commercial customers. The company collaborates with savings banks, estate agents and a trade union.

Equity and capital position

The Group's equity amounted to NOK 25,205.2 million (25,284.5) at the end of the year. The return on equity for the year was 31.0 per cent (19.2). The solvency ratios at the end of the year were:

• Approved Partial Internal Model1: 190 per cent

• Own Partial Internal Model2: 233 per cent

The Group has a robust solvency position and Gjensidige believes that the Covid-19 pandemic will not have an impact on the Group's ability to continue as a going concern.

Gjensidige has an 'A' rating from Standard & Poor's.

Off-balance sheet commitments and derivatives

As part of the Groups investment activities, an agreement has been entered into for the investment of up to NOK 2,323.0 million (582.8) in loan funds with secured loans and various private equity and property fund investments, in addition to the amounts recognised in the balance sheet. In addition, Oslo Areal has a credit facility of a total of NOK 4 billion, of which NOK 1.7 billion (2.4) had been used as of 31 December 2020.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Chapter 4 - Strategy and outlook	134
Financial statement including notes 2021	136
Appendix 2021	271

Profit performance Group	2021	2020
NOK millions
General Insurance Private	2 953.3	2 757.4
General Insurance Commercial	2 237.7	2 096.6
General Insurance Denmark	1 024.9	800.5
General Insurance Sweden	97.2	76.1
General Insurance Baltics	(77.7)	67.7
Corporate Centre - costs related to owner	(399.3)	(331.2)
Corporate Centre - reinsurance 1	(117.8)	(391.5)
Underwriting result general insurance	5 718.3	5 075.6
Pension	213.7	166.8
Financial result from the investment portfolio	3 063.1	1 341.7
Amortisation and impairment losses of excess value – intangible assets	(117.6)	(182.1)
Other items	(78.1)	(60.2)
Profit/(loss) before tax expense	8 799.4	6 341.7
Alternative performance measures
Large losses 2. 3	954.7	955.6
Run-off gains/(losses) 2	1 306.5	1 122.3
Earned premiums from general insurance	29 136.4	27 160.5

3 063.1	1 341.7
(117.6)	(182.1)

Profit performance Group	2021	2020
NOK millions
Earned premiums changes in general insurance. local currency 2	8.8 %	7.5 %
Loss ratio 2	66.2 %	66.8 %
Underlying frequency loss ratio 2. 4	67.4 %	67.4 %
Cost ratio 2	14.2 %	14.5 %
Combined ratio 2	80.4 %	81.3 %
Solvency ratio 2	190.3 %	198.0 %

Large losses in excess of NOK 30.0 million are charged to the Corporate Centre, while claims of less than NOK 30.0 million are charged to the segment in which the large losses occur. As a main rule, the Baltics segment has a retention level of EUR 0.5 million, while the Swedish segment has a retention level of NOK 10 million. Large losses allocated to the Corporate Centre amounted to NOK 239.4 million (431.1). Accounting items related to reinsurance are also included.
Defined as an alternative performance measure (APM). APMs are described at www.gjensidige.no/reporting in a document named APMs Gjensidige Forsikring Group 2021.
Large losses = loss events in excess of NOK 10.0 million.
Underlying frequency loss ratio = claims incurred etc. excluding large losses and run-off gains/(losses) divided by earned premiums.
Solvency ratio = Ratio of total eligible own funds to meet the SCR over the Solvency Capital Requirement.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Chapter 4 - Strategy and outlook	134
Financial statement including notes 2021	136
Appendix 2021	271

Cash flow

Gjensidige is primarily an insurance company in which investments are part of the operational cash flow and therefore largely affected by strategic decisions. The Company's ability to self-finance investments is good. The net cash flow from operational activities mainly consists of payments in the form of premiums, net payments made/received in connection with buying and selling securities, plus payments in the form of claims settlement costs, purchases of reinsurance, administration expenses and tax. The net cash flow from operational activities was NOK 7,026.8 million (7,334.7) in 2021. The positive cash flow in 2021 can be explained by incoming premiums exceeding the Group's payments.

The net cash flow from investment activities mainly consists of payments made/received in connection with the acquisition of subsidiaries and associated companies, owner-occupied property, plant and equipment, plus dividend from associated companies and joint ventures. The net cash flow from investment activities in 2021 was minus NOK 1,399.6 million (minus 513.2). The negative cash flow is primarily due to the acquisition of subsidiaries.

The net cash flow from financing activities mainly consists of payments made/received in connection with external debt financing and the payment of dividend to shareholders. The net cash flow from financing activities in 2021 was minus NOK 6,106.8 million (minus 6,454.7). The negative cash flow is due to the payment of dividend.

Gjensidige achieved all its financial targets in 2021.

The combined ratio was 80.4 per cent – well above the target of 86–89 per cent, thanks to a sound result in Norway and Denmark. The Covid-19 situation had a positive contribution of 1.2 per cent on the loss ratio. The proportion of large losses was slightly lower than expected for the year, while run-off gains were more or less in line with the planned releases.

The cost/income ratio was 14.2 per cent. Adjusted for the Baltics segment, the cost/income ratio was 13.6 per cent.

Gjensidige had a solid capital position with a solvency margin at yearend 2021 of 190 per cent, adjusted for the proposed dividend of NOK 3,850 million based on the profit for 2021.

The return on equity was 31.0 per cent, reflecting good results and an efficient capital base.

The underwriting result outside Norway (excl. run-off gains) was NOK 809 million, well above the 2022 target of NOK 750 million.

Metric	Target	Delivered 2021
Combined ratio 1	86-89 % 2	80.4 %
Cost ratio 1	< 15 %	14.2 %
Solvency ratio (PIM)	150-200 %	190 %
ROE after tax 1	> 20 % 3	31.0 %
UW result outside Norway	NOK 750 million (in 2022) 4	NOK 809 million
Dividends	Dividend policy	NOK 7.70 per share (+4.1 %)

Defined as an alternative performance measure (APM). APMs are described at www.gjensidige.no/reporting in a document named APMs Gjensidige Forsikring Group 2021. 2. Assuming annual run-off gains ~NOK 1 billion through 2022. Corresponds to 90-93 per cent given zero run-off gains.
Corresponds to >16 per cent given zero run-off gains.
Excluding run-off.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Chapter 4 - Strategy and outlook	134
Financial statement including notes 2021	136
Appendix 2021	271

Operational targets

Operational targets are important to strengthen our competitiveness and ensure future profitability for Gjensidige.

The Group's customer satisfaction continued to increase and was well above the target for 2022, with a historically high score in the Private segment and a continued high level in the Commercial segment. One of the factors behind this development was very high availability and good customer service.

The customer retention figures in Norway were still at a very high level, while the figures outside Norway have potential for improvement.

The sales efficiency increased by 25 per cent compared with the base year 2017. The improvement reflects increased sales in the Private segment, but other segments also saw increased sales efficiency.

The proportion of automated tariffs increased as the methodology started to be applied to more products and insurance policies, thereby providing a basis for considerably swifter response to changes in market dynamics. Efforts to automate all tariff-based products will continue towards 2022.

The proportion of digital claims was stable over the year at 80 per cent (the target level), thanks to ongoing efforts to improve customers' experience of digital solutions and effective measures to raise their motivation to report claims online. The proportion of claims for which the processing was fully automatic (straight through) increased to 22 per cent in 2021. Work on developing these digital services will continue going forward.

Costs relating to claims settlements were further reduced to a total of NOK 659 million, especially driven by a positive development in insurance fraud and procurements.

Metric	Status 2021	Target 2022
Customer satisfaction (CSI)	79	> 78, Group
Customer retention	91 %	> 90 %, Norway
	79 %	> 85 %, outside Norway
Sales effectiveness	+25 %	+ 10 %, Group
Automated tariffs	55 %	100 %, Group
Digital claims reporting	80 %	80 %, Norway
Claims straight-through processing	22 %	64 %, Norway
Claims cost	NOK 659 million	Reduce by NOK 500 million, Group

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result
Chapter 4 - Strategy and outlook	134
Financial statement including notes 2021	136
Appendix 2021	271

General Insurance Private

The underwriting result increased by 7.1 per cent, driven by growth in earned premiums, higher run-off gains and a lower underlying frequency loss ratio. Large losses were somewhat higher than the previous year.

Earned premiums increased by 6.7 per cent, mainly driven by price increases for motor, property and accident and health insurance, as well as higher volumes for motor insurance. Lower demand for travel insurance due to the pandemic resulted in slightly lower earned premiums for this product line.

The loss ratio improved by 0.3 percentage points, reflecting the same improvement in the underlying frequency loss ratio, mainly related to motor when adjusted for the Covid-19 impact on claims and accident and health insurance. The extraordinarily cold winter in Norway in the first quarter resulted in significantly higher freeze and fire claims for property insurance compared with the first quarter the previous year. The impact on the loss ratio for the year was 1.4 percentage points.

The Covid-19 pandemic had a positive impact on claims, estimated at approximately NOK 189 million (240), corresponding to 1.9 (2.5) on the loss ratio. This was primarily related to low travel activity. Adjusted for the effects of the weather and Covid-19 claims, the underlying frequency loss ratio improved by 2.4 percentage points compared with 2020. The cost ratio increased by 0.2 percentage points

General Insurance Private	2021	2020
NOK millions
Earned premiums	10 068.0	9 433.6
Claims incurred etc.	(5 787.5)	(5 450.7)
Operating expenses	(1 327.2)	(1 225.5)
Underwriting result	2 953.3	2 757.4
Amortisation and impairment losses of excess value – intangible assets	(26.4)	(29.2)
Large losses 1	123.1	89.0
Run-off gains/(losses) 1	491.8	438.0
Loss ratio 1	57.5 %	57.8 %
Underlying frequency loss ratio 1	61.1 %	61.5 %
Cost ratio 1	13.2 %	13.0 %
Combined ratio 1	70.7 %	70.8 %
Customer retention rate 2	89.8 %	89.5 %

Defined as an alternative performance measure (APM). APMs are described at www.gjensidige.no/reporting in a document named APMs Gjensidige Forsikring Group 2021.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result
Chapter 4 - Strategy and outlook	134
Financial statement including notes 2021	136
Appendix 2021	271

General Insurance Commercial

The underwriting result improved by 6.7 per cent. The result reflects significantly increased earned premiums and higher runoff gains, partly offset by higher large losses.

Earned premiums increased by 12.9 per cent, reflecting effective pricing measures, solid renewals and portfolio growth including one large new contract. All the main product lines recorded higher earned premiums.

The loss ratio increased by 2.2 percentage points, mainly driven by a significantly higher level of large losses. The underlying frequency claims ratio increased by 0.3 percentage points compared with the previous year. The extraordinarily cold winter in Norway in the first quarter resulted in higher freeze and fire claims for property insurance compared with the first quarter in 2020. The impact on the loss ratio for 2021 was 1.1 percentage points.

The Covid-19 pandemic had a slightly positive impact on claims, estimated at approximately NOK 45 million (119), corresponding to 0.4 percentage points (1.3) on the loss ratio. This was primarily related to lower travel activity.

Adjusted for the effects of the weather and Covid-19 claims, the underlying frequency loss ratio improved by 1.5 percentage points compared with in 2020, driven by the continued focus on pricing and good risk selection.

The cost ratio improved by 0.9 percentage points, mainly reflecting the increase in earned premiums and a continued focus on cost efficiency.

The cost ratio increased by 0.2 percentage points mainly due to higher premiums and continued focus on cost efficiency.

General Insurance Commercial	2021	2020
NOK millions
Earned premiums	10 083.5	8 929.0
Claims incurred etc.	(6 930.5)	(5 943.9)
Operating expenses	(915.3)	(888.4)
Underwriting result	2 237.7	2 096.6
Large losses 1	503.4	255.7
Run-off gains/(losses) 1	531.7	444.4
Loss ratio 1	68.7 %	66.6 %
Underlying frequency loss ratio 1	69.0 %	68.7 %
Cost ratio 1	9.1 %	9.9 %
Combined ratio 1	77.8 %	76.5 %
Customer retention rate 2	91.4 %	91.5 %

Defined as an alternative performance measure (APM). APMs are described at www.gjensidige.no/reporting in a document named APMs Gjensidige Forsikring Group 2021.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result
Chapter 4 - Strategy and outlook	134
Financial statement including notes 2021	136
Appendix 2021	271

General Insurance Denmark

The underwriting result increased by 28.0 per cent, or 35.0 per cent measured in local currency. The increase was driven by an improvement in the underlying frequency loss ratio, lower large losses and higher earned premiums.

Earned premiums increased by 1.5 per cent. Measured in local currency, earned premiums increased by 6.8 per cent, driven by volume and price increases in the commercial segment, in addition to the contribution from NEM. Price increases for workers' compensation were substantial in 2021, in response to index increases for this product. Higher demand for travel insurance contributed positively to premium growth. Premiums in the private segment were somewhat lower compared to the previous year.

The loss ratio decreased by 3.4 percentage points, driven by a 1.4 percentage point improvement in the underlying frequency loss ratio and lower large losses. Adjusted for the effects of the Covid-19 claims, the underlying frequency loss ratio improved by 2.1 percentage points compared with the same period in 2020, driven by property insurance in the private segment and higher profitability for most product lines in the commercial segment.

The Covid-19 pandemic had a positive impact on claims compared with the same period the previous year. The impact during the year was estimated at approximately NOK 98 million (124), corresponding to 1.6 (2.1) percentage points on the loss ratio. This was primarily related to less travel and driving.

The cost ratio was broadly stable.

General Insurance Denmark	2021	2020
NOK millions
Earned premiums	5 999.0	5 910.2
Claims incurred etc.	(4 113.1)	(4 250.2)
Operating expenses	(861.0)	(859.5)
Underwriting result	1 024.9	800.5
Amortisation and impairment losses of excess value – intangible assets	(31.8)	(69.3)
Run-off gains/(losses) 1	38.8	149.2
Earned premiums in local currency (DKK) 1	132.8	128.7
Premieinntekter i lokal valuta (DKK) 1	4 389.4	4 106.6
Loss ratio 1	68.6 %	71.9 %
Underlying frequency loss ratio 1	70.1 %	71.6 %
Cost ratio 1	14.4 %	14.5 %
Combined ratio 1	82.9 %	86.5 %
Customer retention rate 2	81.1 %	81.6 %

Defined as an alternative performance measure (APM). APMs are described at www.gjensidige.no/reporting in a document named APMs Gjensidige Forsikring Group 2021.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result
Chapter 4 - Strategy and outlook	134
Financial statement including notes 2021	136
Appendix 2021	271

General Insurance Sweden

The underwriting result increased by 27.6 per cent. The increase in the underwriting result was driven by higher earned premiums, an improvement in the underlying frequency loss ratio and lower operating expenses, which were partly offset by higher large losses and lower run-off gains.

Earned premiums increased by 3.6 per cent. Measured in local currency, earned premiums increased by 5.8 per cent, mainly driven by volume growth and price increases in the commercial portfolio, slightly offset by a decrease in volume and the termination of an unprofitable partner agreement in the private portfolio.

The loss ratio increased by 0.2 percentage points, due to higher large losses and lower run-off gains. The underlying frequency loss ratio improved by 1.7 percentage points. Adjusted for the effects of the Covid-19 claims, the underlying frequency loss ratio increased by 0.3 percentage points compared with 2020, driven by the private property and health insurance lines.

The cost ratio improved by 1.3 percentage points as a result of cost-saving initiatives and higher earned premiums.

The Covid-19 pandemic had a marginally positive impact on claims, estimated at approximately NOK 10.0 million (minus 23.0), corresponding to 0.6 percentage points (minus 1.4) on the loss ratio. This was related to less travel and less use of health insurance. Customer retention rate 2 79.2 % 77.1 % 1. Defined as an alternative performance measure (APM). APMs are described at www.gjensidige.no/reporting in a document named APMs Gjensidige Forsikring Group 2021. 2. The customer retention rate is the percentage of Gjensidige's customers that have been customers during the last twelve months.

General Insurance Sweden	2021	2020
NOK millions
Earned premiums	1 649.4	1 592.0
Claims incurred etc.	(1 257.3)	(1 209.9)
Operating expenses	(294.9)	(306.0)
Underwriting result	97.2	76.1
Amortisation and impairment losses of excess value – intangible assets	(42.9)	(67.5)
Run-off gains/(losses) 1	50.0	30.0
Earned premiums in local currency (DKK) 1	51.9	62.5
Premieinntekter i lokal valuta (DKK) 1	1 646.3	1 556.1
Loss ratio 1	76.2 %	76.0 %
Underlying frequency loss ratio 1	76.3 %	78.0 %
Cost ratio 1	17.9 %	19.2 %
Combined ratio 1	94.1 %	95.2 %
Customer retention rate 2	79.2 %	77.1 %

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result
Chapter 4 - Strategy and outlook	134
Financial statement including notes 2021	136
Appendix 2021	271

General Insurance Baltics

The underwriting result was minus NOK 77.7 million (positive 67.7). The decrease was due to a higher frequency loss ratio, partly offset by higher run-off gains.

Earned premiums decreased by 2.2 per cent. Measured in local currency, earned premiums increased by 3.3 per cent, driven by the health and property insurance lines, but partly offset by lower volumes in the private travel insurance line due to the Covid-19 pandemic and lower prices for private motor insurance due to fierce competition.

The loss ratio increased by 12.5 percentage points, driven by a higher underlying frequency loss ratio, partly offset by higher runoff gains. The underlying frequency loss ratio increased by 15.8 percentage points. Adjusted for the effects of Covid-19 claims, the underlying frequency loss ratio increased by 14.5 percentage points compared with the same period in 2020, mainly driven by the motor and property insurance lines.

The Covid-19 pandemic had a positive impact on claims, estimated at approximately NOK 5.0 million (20.0), corresponding to 0.4 percentage points (1.7) on the loss ratio. This was related to less travel activity.

The cost ratio was stable.

General Insurance Baltics	2021	2020
NOK millions
Earned premiums	1 150.2	1 175.7
Claims incurred etc.	(894.0)	(767.2)
Operating expenses	(333.8)	(340.7)
Underwriting result	(77.7)	67.7
Amortisation and impairment losses of excess value – intangible assets	(12.8)	(16.0)
Run-off gains/(losses) 1	0.0	0.5
Earned premiums in local currency (DKK) 1	50.5	13.4
Premieinntekter i lokal valuta (DKK) 1	113.1	109.6
Loss ratio 1	77.7 %	65.3 %
Underlying frequency loss ratio 1	82.1 %	66.4 %
Cost ratio 1	29.0 %	29.0 %
Combined ratio 1	106.8 %	94.2 %
Customer retention rate 2	68.8 %	68.3 %

Defined as an alternative performance measure (APM). APMs are described at www.gjensidige.no/reporting in a document named APMs Gjensidige Forsikring Group 2021.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result
Chapter 4 - Strategy and outlook	134
Financial statement including notes 2021	136
Appendix 2021	271

Pension

The profit before tax expense increased by 28.1 per cent due to higher operating income.

Administration fees rose by 10.2 per cent, driven by growth in the customer portfolio. Insurance income increased by 19.4 per cent as explained above. Management income was 22.7 per cent above the previous year, reflecting the increase in assets under management.

Operating expenses increased by 7.5 per cent mainly due to a higher headcount.

Net financial income was NOK 31.5 million (36.0).

The recognised return on the paid-up policy portfolio was 4.4 per cent (3.5). The average annual interest guarantee was 3.4 per cent.

Assets under management increased by 21.4 per cent or NOK 9,064.7 million, driven by a positive development in the market. Total pension assets under management amounted to NOK 51,426.4 million (42,361.7) including the group policy portfolio of NOK 8,242.0 million (7,664.1).

ROE after tax was 14.9 per cent (13.1), reflecting a higher profit.

So far, the introduction of individual pension accounts has not led to any significant change in the market dynamics. The transfer of policies related to the individual pension account scheme was completed in November 2021.

Pension	2021	2020
NOK millions
Administration fees	174.1	158.1
Insurance income	97.1	81.3
Management income etc.	223.9	182.4
Operating expenses	(312.9)	(291.1)
Net operating income	182.2	130.7
Net financial income	31.5	36.0
Profit/(loss) before tax expense	213.7	166.8
Operating margin 1	36.80 %	30.99 %
Recognised return on the paid-up policy port folio 2	4.38 %	3.48 %
Value-adjusted return on the paid-up policy portfolio 3	4.63 %	2.99 %
Return on equity 1	14.9 %	13.1 %
Solvency ratio 4	146.5 %	146.2 %
Customer retention rate 2	68.8 %	68.3 %

Defined as an alternative performance measure (APM). APMs are described at www.gjensidige.no/reporting in a document named APMs Gjensidige Forsikring Group 2021.
Recognised return on the paid-up policy portfolio = realised return on the portfolio.
Value-adjusted return on the paid-up policy portfolio = total return on the portfolio.
Solvency ratio = Ratio of total eligible own funds to meet the SCR over Solvency Capital Requirement.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Chapter 4 - Strategy and outlook	134
Financial statement including notes 2021	136
Appendix 2021	271

Management of financial assets and properties

The Group's investment portfolio includes all investment funds in the Group, except for investment funds in the Pension segment. The investment portfolio is split into two parts: a match portfolio and a free portfolio. The match portfolio is intended to correspond to the Group's technical provisions. It is invested in fixed-income instruments that match the duration and currency of the technical provisions. The free portfolio consists of various assets. The allocation of assets in this portfolio must be seen in conjunction with the Group's capitalisation and risk capacity, as well as the Group's risk appetite at all times. Results from the use of derivatives for tactical and risk management purposes are assigned to the respective asset classes. Currency exposure related to fixed-income investments is generally hedged 100 per cent, within a permitted range of +/- 10 per cent per currency. Currency risk related to equities can be hedged between 0 and 100 per cent.

At the end of the period, the investment portfolio totalled NOK 59.8 billion (58.9). The financial result was NOK 3,063.1 million (1,341.7), which corresponds to a return on total assets of 5.1 per cent (2.2).

Match portfolio

The match portfolio amounted to NOK 36.4 billion (36.4). The portfolio had a return of 2.2 per cent (1.2), excluding changes in the value of bonds recognised at amortised cost. The result reflects low interests rates and market movements in the first quarter. Bonds recognised at amortised cost amounted to NOK 15.5 billion (15.4). Unrealised excess value amounted to NOK 0.4 billion (1.0) at the end of the period.

The reinvestment rate for new investments in the portfolio of bonds held at amortised cost was approximately 2.6 per cent (3.0) for the year. The running yield on the portfolio of bonds held at amortised cost was 3.5 per cent (3.3) at the end of the period. The average duration of the match portfolio was 3.6 years (3.7). The average term to maturity for the corresponding insurance liabilities was 3.8 years (4.0).

The distribution of counterparty risk and credit rating is shown in the charts on the next page. Securities without an official credit rating amounted to NOK 7.5 billion (7.7). Of these securities, 7.8 per cent (11.9) were issued by Norwegian savings banks, while the remainder were mostly issued by Norwegian power producers and distributors, property companies, industry and municipalities. Bonds with a coupon linked to the development of the Norwegian and Danish consumer price index accounted for 3.2 per cent (4.0) of the match portfolio. The geographical distribution3 of the match portfolio is shown in the chart above.

Free portfolio

The free portfolio amounted to NOK 23.4 billion (22.5) at the end of the year. The return was 9.5 per cent (3.6), reflecting strong returns in real estate and equities (including PE).

Fixed-income instruments

The fixed-income instruments in the free portfolio amounted to NOK 11.5 billion (12.3), of which fixed income – short duration investments accounted for NOK 4.9 billion (5.0). The rest of the portfolio was invested in Norwegian government bonds and international bonds (investment grade, high yield and convertible bonds). The total return on fixed-income instruments in the free portfolio was 0.7 per cent (4.2).

At the end of the year, the average duration in the portfolio was approximately 2.6 years. The distribution of counterparty risk and credit rating are shown in the charts on this page. Securities without an official credit rating amounted to NOK 2.9 billion (2.4). Of these securities, 3.0 per cent (17.4) were issued by Norwegian savings banks, while the remainder were mostly issued by industry and municipalities. The geographical distribution of the fixed-income instruments in the free portfolio is shown in the chart on the previous page.

Equity portfolio

The total equity holding at the end of the quarter was NOK 4.8 billion

(3.6), of which NOK 3.3 billion (2.4) consisted of current equities and NOK 1.4 billion (1.2) of PE funds. The return on current equities was 11.7 per cent (0.6). PE funds yielded a return of 32.7 per cent (negative 7.7).

Property portfolio

At the end of the year, the exposure to commercial real estate in the portfolio was NOK 6.0 billion (5.1). The property portfolio had a return of 32.7 per cent (7.8), reflecting value appreciation on the property assets in Oslo Areal. Gjensidige Forsikring and AMF Pensionsförsäkring AB have entered into an agreement for the sale of Oslo Areal. The transaction was closed in January 2022 and the remaining profit from the transaction will be booked in the first quarter 2022.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Chapter 4 - Strategy and outlook	134
Financial statement including notes 2021	136
Appendix 2021	271

At the end of 2021

Geographical distribution Match portfolio

Credit rating fixed income instruments Counterparty risk fixed income instruments

Geographical distribution Free fixed income portfolio

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Chapter 4 - Strategy and outlook	134
Financial statement including notes 2021	136
Appendix 2021	271

Financial assets and properties	Return in per cent				Result Carrying amount 31.12.
NOK millions	2021	2020	2021	2020	2021	2020
Match portfolio
Fixed income - short duration 6	0.8	1.9	37.5	93.4	4 837.5	4 948.9
Bonds at amortised cost	3.8	3.6	590.9	541.8	15 489.1	15 360.2
Current bonds 1	1.1	(1.3)	171.8	(206.6)	16 094.5	16 071.5
Match portfolio total	2.2	1.2	800.2	428.6	36 421.0	36 380.6
Free portfolio
Fixed income - short duration 6	0.3	0.9	19.0	72.3	4 909.3	4 987.0
Other bonds 2	0.8	7.6	35.4	429.5	4 067.7	5 187.6
High yield bonds 3	4.0	(7.5)	30.0	(36.2)	1 226.1	402.3
Convertible bonds 3	0.6	11.6	8.1	172.6	1 325.7	1 680.8
Current equities 4	11.7	0.6	349.6	14.6	3 328.2	2 390.3
PE funds	32.7	(7.7)	430.3	(92.8)	1 439.8	1 206.3
Properties	31.4	7.8	1 551.6	384.4	6 018.0	5 128.5
Other 5	(15.8)	(2.4)	(161.0)	(31.4)	1 067.9	1 524.0
Free portfolio total	9.5	3.6	2 262.9	913.1	23 382.7	22 506.8
Financial result from the investment portfolio 7	5.1	2.2	3 063.1	1 341.7	59 803.8	58 887.4
Financial income in Pension			31.5	36.0
Interest expense on subordinated debt Gjensidige Forsikring ASA			(37.5)	(29.6)
Interest expense on the lease liability			(29.5)	(29.6)
Net income from investments			3 027.6	1 318.5

The item includes discounting effects of the insurance liabilities in Denmark and Sweden, and a mismatch between interest rate adjustments on the liability side in Denmark and the corresponding interest rate hedge. Investments include mortgage, sovereign and corporate bonds, investment grade bond funds and loan funds containing secured debt. 2. The item includes investment grade and current bonds. Investment grade and emerging market bonds are investments in internationally diversified funds that are externally managed.
Investments in internationally diversified funds that are externally managed.
Investments mainly in internationally diversified funds that are externally managed. The equity risk exposure is reduced by NOK 310.9 million due to derivatives.
The item mainly comprises hedge funds, commodities, profit/loss effects from a total return swap with Gjensidige Pensjonskasse and finance-related expenses.
The content of these items is identical to the items previously named Money market. The name change is related to the implementation of EU regulation 2017/1131 on money market funds in Norwegian law.

The regulation entails a strict definition of money market instruments and, although it concerns funds, it is expected to restrict what can be labelled Money market.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result
Chapter 4 - Strategy and outlook	134
Financial statement including notes 2021	136
Appendix 2021	271

Events after the balance sheet date

The sale of Oslo Areal was completed on 12 January 2022 and resulted in a gain of NOK 0.8 billion, to be recorded in the first quarter 2022.

Board liability insurance

Gjensidige Forsikring ASA has taken out board liability insurance for the Group and subsidiaries. The insurance covers the Board's and the CEO's legal personal liability for pure property damage caused by the performance of their duties.

Changes in framework conditions/regulations Solvency position

In 2018, Gjensidige was granted approval by the Financial Supervisory Authority to use a partial internal model to calculate regulatory capital requirements. The model that was approved was more conservative than the model Gjensidige originally applied for. The Financial Supervisory Authority set as a condition that the standard formula would be used to calculate the risk of storms, and the standard formula's correlation between market and insurance risk. In addition, the Authority's conditions entail slightly higher capital requirements for market risk and insurance risk than Gjensidige originally applied for. Gjensidige Forsikring ASA and the Gjensidige Forsikring Group's appeal against the Authority's decision on the calibration of market risk was partially granted in the third quarter 2020. In addition, Gjensidige was granted approval of a minor modification of the insurance risk model in the second quarter 2021. Gjensidige believes that the partial internal model, without the conditions imposed by the Financial Supervisory Authority, provides a better representation of risk and will continue working for approval of Gjensidige's own version of the partial internal model. IFRS 17 Insurance Contracts: Gjensidige is working on implementing the new accounting standard IFRS 17 on insurance contracts, which is expected to enter into force on 1 January 2023. The standard will affect the Group's accounts by introducing material changes to the measurement and presentation of income and expenses. For further information, see Note 1: Accounting principles.

Allocation of the profit before other income and expenses

The Group's profit amounted to NOK 7,141.1 million. The Board has adopted a dividend policy that forms the basis for the dividend proposal submitted to the General Meeting. The Board proposes a dividend of NOK 3,850 million for the 2021 financial year. This corresponds to NOK 7.70 per share, based on the profit for 2021. The ordinary dividend corresponds to a pay-out ratio of 54 per cent of the Group's profit after tax. Gjensidige's capitalisation is adapted at all times to the Group's adopted strategic goals and appetite for risk. The Group shall maintain its financial freedom of action in parallel with strong capital discipline that supports the Group's targeted return on equity.

It is proposed that the parent company's profit before other components of income and expense of NOK 5,674.4 million be allocated as follows:

	NOK millions
Dividend paid	2 000.0
Dividend proposed	3 850.0
Transferred to/(from) undistributable reserves	279.8
Transferred to/(from) other retained earnings	(455.4)
Allocated	5 674.4

Other comprehensive income and expense as presented in the income statement are not included in the allocation of profit.

The Board has decided to pay employees of Gjensidige Forsikring ASA a collective bonus corresponding to NOK 26,200, including holiday pay, per full-time employee. The bonus is based on the underwriting result, market share development and customer satisfaction. In addition, the Board has, on a discretionary basis, considered development in the organisation, engagement, expertise and the Company's profit for the year seen in relation to the dividend policy. The Board wishes to thank each individual employee for their contribution to Gjensidige's results in 2021.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Chapter 4 - Strategy and outlook	134
Financial statement including notes 2021	136
Appendix 2021	271

Strategy and outlook

The Group's annual financial targets and solvency target through 2025 are as follows:

A combined ratio below 85 per cent.
Annual run-off gains of approximately NOK 1 billion are still expected in 2022.
A cost ratio below 14 per cent.
A solvency margin based on the partial internal model (the regulatory approved model) of between 150 and 200 per cent.
Return on equity after tax of more than 19 per cent.

These are financial targets and should not be regarded as guidance for any specific quarter or year. Unexpected circumstances relating to the weather, the proportion of large losses and run-off gains or losses could contribute to a combined ratio that is above or below the annual target range.

Gjensidige's ambition is to become the most customer-oriented general insurance company in the Nordic region. The Group's priority is to retain its strong and unique position in Norway and to continue improving its profitability outside Norway. Furthermore, the Group will focus on ensuring continued capital discipline, including delivering attractive returns to shareholders. A fundamental prerequisite for long term value creation is sustainable choices and solutions. The top three priorities are contributing to a safer society, sustainable claims handling and responsible investments.

Geopolitical uncertainty, low interest rates and financial challenges in several key economies reflect an uncertain economic situation. As in the rest of the world, the pandemic has had a significant impact on the economies in Gjensidige's markets. However, there has been a strong rebound, particularly in the Nordics, thanks to large stimulus packages and gradual easing of restrictions. Although there is still uncertainty, the forecast for economic activity in Gjensidige's markets is encouraging.

Organic growth is expected to be in line with nominal GDP growth in Gjensidige's market areas in the Nordic and Baltic countries over time. At the Group level, near-term growth is expected to be higher. In addition, profitable growth will be achieved by pursuing a disciplined acquisition strategy, as has been done successfully in the past.

Staying ahead of claims inflation is key to maintaining good profitability and has high priority in Gjensidige. Claims inflation experienced during the fourth quarter was in line with expectations. Gjensidige is vigilantly monitoring developments in the relevant markets for signs

that inflation might increase beyond the current expectation. Gjensidige will continue to put through necessary price increases in response.

The Covid-19 pandemic has had a limited impact on Gjensidige's insurance operations. Overall, the pandemic has had a positive impact on claims costs. We expect activity in our markets and claims to continue to gradually return to more normal levels, following the roll out of vaccination programmes.

In the next few years, it is expected that Gjensidige's business model and the type of market participants will broadly stay the same. Gjensidige has different positions and preconditions for further growth and development in the different segments and geographies. Best practices will be implemented across segments and borders where this is natural and expedient. Profitability will be prioritised over growth.

A key strategic priority in the next few years is maintaining and cultivating the direct customer relationship. Gjensidige aims to achieve greater relevance and create sales opportunities by offering customers a broader value proposition than ever before – in terms of both services and products, alone or in partnership with other providers. The goal is to become an even better and more relevant partner for customers – a problem-solver with a stronger focus on damage prevention – thereby further strengthening the customer relationship.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Chapter 4 --Strategy and outlook	134
Financial statement including notes 2021	136
Appendix 2021	271

Continued investments in technology and data are key to reducing costs and achieving enhanced functionality and flexibility. This is necessary to enable more flexible partner integration and product modularity. The launch of next-generation tariffs, CRM and investments in a new core system and IT infrastructure are important in order to succeed in becoming an analytics-driven company. This will result in better customer experiences and more efficient operations and create sufficient capacity for innovation. Gjensidige has launched its new core IT system for Private Denmark and will gradually implement it in other parts of the Danish operations and other geographies. The investment is expected to be handled within the current cost ratio target.

Gjensidige has a robust investment strategy, although returns are sensitive to market conditions.

The Group has high capital buffers in relation to internal risk models, statutory solvency requirements and its target rating. The Board considers the Group's capital situation and financial strength to be very strong.

There is always considerable uncertainty associated with the assessment of future developments. However, the Board remains confident in Gjensidige's ability to deliver solid earnings and dividend growth over time.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

notes 2021

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Consolidated income statement

198.0	(279.7)

NOK millions	Notes	2021	2020
Operating income
Earned premiums from general insurance		29,136.4	27,160.5
Earned premiums from pension		1,026.5	913.8
Other income including eliminations		243.4	185.6
Total operating income	4	30,406.3	28,259.9
Net income from investments
Results from investments in associates and joint ventures	5	1,523.3	338.8
Interest income and dividend etc. from financial assets		746.8	1,006.4
Net changes in fair value on investments (incl. property)		198.0	(279.7)
Net realised gain and loss on investments		829.0	469.6
Interest expenses and expenses related to investments		(269.5)	(216.7)
Total net income from investments	6	3,027.6	1,318.5
Total operating income and net income from investments		33,433.9	29,578.4
Claims
Claims incurred etc. from general insurance		(19,286.5)	(18,133.5)
Claims incurred etc. from pension		(755.3)	(674.5)
Total claims		(20,041.8)	(18,808.0)
Operating expenses
Operating expenses from general insurance		(4,131.6)	(3,951.4)
Operating expenses from pension		(312.9)	(291.1)
Other operating expenses		(30.6)	(4.1)
Amortisation and impairment losses of excess value - intangible assets		(117.6)	(182.1)
Total operating expenses	7	(4,592.7)	(4,428.7)
Total expenses		(24,634.5)	(23,236.6)
Profit/(loss) before tax expense	4	8,799.4	6,341.7

NOK millions	Notes	2021	2020
Tax expense	9	(1,658.3)	(1,387.8)
Profit/(loss)		7,141.1	4,953.9
Profit/(loss) attributable to:
Owners of the company		7,141.1	4,953.8
Non-controlling interests			0.1
Total		7,141.1	4,953.9
Earnings per shares, NOK (basic and diluted)	24	14.28	9.91

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Consolidated statement of comprehensive

income

Other comprehensive income
Other comprehensive income that will not be reclassified subsequently to profit or loss




Other comprehensive income that will be reclassified subsequently to profit or loss





Comprehensive income attributable to:

NOK millions	Notes	2021	2020
Profit/(loss)		7,141.1	4,953.9
Other comprehensive income
Other comprehensive income that will not be reclassified subsequently to profit or loss
Remeasurements of the net defined benefit liability/asset	10	(150.4)	(112.2)
Share of other comprehensive income of associates and joint ventures		0.8	(1.4)
Tax on other comprehensive income that will not be reclassified subsequently to profit or loss	9	37.6	28.0
Total other comprehensive income that will not be reclassified subsequently to profit or loss		(112.0)	(85.5)
Other comprehensive income that will be reclassified subsequently to profit or loss
Exchange differences from foreign operations		(417.8)	436.3
Tax on other comprehensive income that will be reclassified subsequently to profit or loss	9	63.7	(67.2)
Total other comprehensive income that will be reclassified subsequently to profit or loss		(354.1)	369.1
Total other comprehensive income		(466.1)	283.5
Comprehensive income		6,675.0	5,237.4
Comprehensive income attributable to:
Owners of the company		6,675.0	5,237.3
Non-controlling interests			0.1
Total		6,675.0	5,237.4

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Consolidated statement of financial position

Notes	2021	2020

11	3,954.5	3,773.4
11	1,732.0	1,132.4
ട്	1,280.9	3,760.2
5	4,247.9
12	1,440.3	1,149.6
10	262.5	338.5
5, 13	1,735.1	2,365.6
13	695.6	1,294.3
3, 14	6,464.0	5,526.1
ਹੈ ਤੇ	31,026.4	30,968.9
13	59.8	151.9
3, 15	21,337.7	20,934.7
13	42,989.7	34,586.4
13	8,220.0	7,702.7
3, 15	938.6	565.0
13	2,348.1	2,861.1

の	24.1	20.7
16	1,042.8	1,062.0
	22.2	118.3
	129,822.1	118,312.0

2-1
Vibeke Krag
Styremediem

NOK millions	Notes	2021	2020
Assets
Goodwill	11	3,954.5	3,773.4
Other intangible assets	11	1,732.0	1,132.4
Investments in associates and joint ventures	5	1,280.9	3,760.2
Investments in associates and joint ventures held for sale	5	4,247.9
Owner-occupied and right-of-use property, plant and equipment	12	1,440.3	1,149.6
Pension assets	10	262.5	338.5
Financial assets
Interest-bearing receivables from joint ventures	5, 13	1,735.1	2,365.6
Financial derivatives	13	695.6	1,294.3
Shares and similar interests	13, 14	6,464.0	5,526.1
Bonds and other securities with fixed income	13	31,026.4	30,968.9
Bonds held to maturity	13	59.8	151.9
Loans and receivables	13, 15	21,337.7	20,934.7
Assets in life insurance with investment options	13	42,989.7	34,586.4
Receivables related to direct operations and reinsurance	13	8,220.0	7,702.7
Other assets and receivables	13, 15	938.6	565.0
Cash and cash equivalents	13	2,348.1	2,861.1
Other assets
Deferred tax assets	9	24.1	20.7
Reinsurers' share of insurance-related liabilities in general insurance, gross	16	1,042.8	1,062.0
Prepaid expenses and earned, not received income		22.2	118.3
Total assets		129,822.1	118,312.0

NOK millions	Notes	2021	2020
Equity and liabilities
Equity
Share capital		999.9	1,000.0
Share premium		1,430.0	1,430.0
Natural perils capital		2,829.3	2,612.9
Guarantee scheme provision		762.3	715.5
Other equity		19,182.9	19,525.4
Total equity attributable to owners of the company		25,204.5	25,283.8
Non-controlling interests		0.7	0.7
Total equity	17	25,205.2	25,284.5
Insurance liabilities
Premium reserve in life insurance		7,894.5	7,364.1
Provision for unearned premiums, gross, in general	16	12,047.0	11,314.5
insurance Claims provision, gross	16	28,895.0	28,534.3
Other technical provisions		487.7	419.2
Financial liabilities
Subordinated debt	13, 18	2,396.1	1,498.8
Financial derivatives	13	497.6	767.4
Liabilities in life insurance with investment options	13	42,989.7	34,586.4
Other financial liabilities	13, 19	3,377.8	2,777.3
Liabilities related to direct insurance and reinsurance	13	832.3	783.4
Other liabilities
Pension liabilities	10	712.4	716.8
Lease liability	12	1,271.3	1,016.4
Other provisions	19	613.5	300.7
Current tax	9	1,522.7	1,559.9
Deferred tax liabilities	9	614.2	956.2
Accrued expenses and received, not earned income	19	465.2	432.0
Total liabilities		104,616.9	93,027.5
Total equity and liabilities		129,822.1	118,312.0

February 2022 The Board of Gjensidige Forsikring ASA

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Consolidated statement of changes in equity

NOK millions
Equity as at 31.12.2019 attributable to owners of the



1.1.-31.12.2020
Comprehensive income



Transactions with owners of the company






Equity as at 31.12.2020 attributable to the owners of the

NOK millions	Share capital	Own shares	Share premium	Other paid-in capital	Perpetual Tier 1 capital	Exchange differences	Remeasure ment of the net defined benefit liab./asset	Other earned equity	Total equity
Equity as at 31.12.2019 attributable to owners of the company	1,000.0	(0.0)	1,430.0	69.5	1,002.3	565.9	(2,058.1)	24,182.1	26,191.6
Non-controlling interests									0.6
Equity as at 31.12.2019									26,192.2
1.1.-31.12.2020
Comprehensive income
Profit/(loss) (the controlling interests' share)					45.8			4,908.0	4,953.8
Total other comprehensive income				0.5		368.6	(84.1)	(1.4)	283.5
Comprehensive income				0.5	45.8	368.6	(84.1)	4,906.6	5,237.3
Transactions with owners of the company
Own shares		0.0						(13.1)	(13.0)
Dividend								(6,124.9)	(6,124.9)
Equity-settled share-based payment transactions				13.3					13.3
Perpetual Tier 1 capital					0.6			(0.6)
Perpetual Tier 1 capital - interest paid					(46.5)				(46.5)
Total transactions with owners of the company		0.0		13.3	(45.8)			(6,138.6)	(6,171.0)
Accounting policy change in Oslo Areal AS								25.9	25.9
Equity as at 31.12.2020 attributable to the owners of the company	1,000.0	(0.0)	1,430.0	83.3	1,002.2	934.5	(2,142.2)	22,976.1	25,283.8
Non-controlling interests									0.7
Equity as at 31.12.2020									25,284.5

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

NOK millions	Share capital	Own shares	Share premium	Other paid-in capital	Perpetual Tier 1 capital	Exchange differences	Remeasure ment of the net defined benefit liab./asset	Other earned equity	Total equity
1.1.-31.12.2021
Comprehensive income
Profit/(loss) (the controlling interests' share)					51.3			7,089.7	7,141.1
Total other comprehensive income				(0.5)		(353.5)	(112.8)	0.8	(466.1)
Comprehensive income				(0.5)	51.3	(353.5)	(112.8)	7,090.5	6,675.0
Transactions with owners of the company
Own shares		(0.1)						(23.4)	(23.4)
Dividend								(6,899.5)	(6,899.5)
Equity-settled share-based payment transactions				17.8					17.8
Perpetual Tier 1 capital					197.2			(0.8)	196.4
Perpetual Tier 1 capital - interest paid					(45.5)				(45.5)
Total transactions with owners of the company		(0.1)		17.8	151.6			(6,923.6)	(6,754.3)
Equity as at 31.12.2021 attributable to the owners of the company	1,000.0	(0.1)	1,430.0	100.5	1,205.2	581.0	(2,255.0)	23,143.0	25,204.5
Non-controlling interests									0.7
Equity as at 31.12.2021									25,205.2

See note 17 for further information about the equity items.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Consolidated statement of cash flows

NOK millions	2021	2020
Cash flow from operating activities
Premiums paid, net of reinsurance	45,068.9	32,866.1
Claims paid, net of reinsurance	(19,260.5)	(18,943.3)
Net receipts/payments of premium reserve transfers	(10,643.2)	(2,804.8)
Net receipts/payments from financial assets	(2,478.9)	1,138.4
Operating expenses paid, including commissions	(3,797.2)	(3,746.1)
Taxes paid	(1,933.3)	(1,185.3)
Net other receipts/payments	71.0	9.8
Net cash flow from operating activities	7,026.8	7,334.7
Cash flow from investing activities
Net receipts/payments from sale/acquisition of subsidiaries, associates and joint ventures	(867.0)
Net receipts/payments on sale/acquisition of owner-occupied property, plant and equipment and intangible assets	(532.6)	(513.2)
Dividends from associated companies
Net cash flow from investing activities	(1,399.6)	(513.2)

NOK millions	2021	2020
Cash flow from financing activities
Payment of dividend	(6,899.5)	(6,124.9)
Net receipts/payments on subordinated debt incl. interest	864.2	(45.5)
Net receipts/payments on other short-term liabilities	0.4
Net receipts/payments on sale/acquisition of own shares	(23.4)	(13.0)
Repayment of lease liabilities	(173.4)	(178.9)
Payment of interest related to lease liabilities	(29.5)	(29.9)
Tier 1 issuance/instalments	200.0
Tier 1 interest payments	(45.5)	(46.5)
Net cash flow from financing activities	(6,106.8)	(6,438.6)
Net cash flow	(479.6)	383.0
Cash and cash equivalents at the start of the year	2,861.1	2,419.5
Net cash flow	(479.6)	383.0
Effect of exchange rate changes on cash and cash equivalents	(33.5)	58.6
Cash and cash equivalents at the end of the year	2,348.1	2,861.1
Specification of cash and cash equivalents
Cash and deposits with credit institutions ¹	2,348.1	2,861.1
Total cash and cash equivalents	2,348.1	2,861.1
¹ Including source-deductible tax account	97.7	89.1

Reconciliation of changes in liabilities from financing activities is found in note 13.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Notes

1. Accounting policies

Reporting entity

Gjensidige Forsikring ASA is a publicly listed company domiciled in Norway. The company's head office is located at Schweigaardsgate 21, Oslo, Norway. The consolidated financial statements of the Gjensidige Forsikring Group (Gjensidige) as at and for the year ended 31 December 2021 comprise Gjensidige Forsikring ASA and its subsidiaries and Gjensidige's interests in associates and joint ventures. The activities of Gjensidige consist of general insurance and pension. Gjensidige does business in Norway, Sweden, Denmark, Latvia, Lithuania and Estonia.

The accounting policies applied in the consolidated financial statements are described below. The policies are used consistently throughout Gjensidige with the exception of one difference that is permitted in accordance with IFRS 4 about insurance contracts. See description under the section Claims provision, gross.

Basis of preparation

Statement of compliance

The consolidated financial statements have been prepared in accordance with IFRSs endorsed by EU, and interpretations that should be adopted as of 31 December 2021, Norwegian disclosure requirements as set out in the Accounting Act as at 31 December 2021 and additional disclosure requirements in accordance with the Norwegian Financial Reporting Regulations for Non-Life Insurance Companies (FOR 2015-12-18-1775) pursuant to the Norwegian Accounting Act.

New standards adopted

Gjensidige has not implemented any new standards with effect from 1 January 2021.

New standards and interpretations not yet adopted

A number of new standards, changes to standards and interpretations have been issued for financial years beginning after 1 January 2021. They have not been applied when preparing these consolidated financial statements. Those that may be relevant to Gjensidige are mentioned below. Gjensidige does not plan early implementation of these standards.

IFRS 9 Financial instruments (2014) in the insurance operations

IFRS 9 addresses the accounting for financial instruments and is effective for annual periods beginning on or after 1 January 2018. See also the section below about delayed implementation. The standard introduces new requirements for the classification and measurement of financial assets, including a new expected loss model for the recognition of impairment losses, and changed requirements for hedge accounting.

IFRS 9 contains three primary measurement categories for financial assets: amortised cost, fair value through other comprehensive income, and fair value through profit or loss. Financial assets will be classified as either at amortised cost, at fair value through other comprehensive income, or at fair value through profit or loss, depending on how they are managed and which contractual cash flow properties they have. IFRS 9 introduces a new requirement in connection with financial liabilities earmarked at fair value, where changes in fair value that can be attributed to the liabilities' credit risk are presented in other comprehensive income rather than over profit or loss.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

and if the credit risk has not increased significantly, the provision shall equal 12-month expected credit losses. If the credit risk has increased significantly, the provision shall equal lifetime expected credit losses. This dual approach replaces today's collective impairment model.

Preliminary assessments indicate that the financial assets will be measured according to fair value through profit or loss. Surplus/deficit values in portfolios measured at amortised cost will have a positive/negative effect on the opening balance when implementing IFRS 9.

Amendments to IFRS 4 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (2016)

The amendments to IFRS 4 permit entities that predominantly undertake insurance activities the option to defer the effective date of IFRS 9 until 1 January 2023. The effect of such a deferral is that the entities concerned may continue to report under the existing standard, IAS 39 Financial Instruments. In addition, the insurance sector of a financial conglomerate is allowed to defer the application of IFRS 9 until 1 January 2023, where all of the following conditions are met:

no financial instruments are transferred between the insurance sector and any other sector of the financial conglomerate other than financial instruments that are measured at fair value with changes in fair value recognised through the profit of loss account by both sectors involved in such transfers;
the financial conglomerate states in the consolidated financial statements which insurance entities in the group are applying IAS 39;
disclosures requested by IFRS 7 are provided separately for the insurance sector applying IAS 39 and for the rest of the group applying IFRS 9.

Gjensidige is a financial conglomerate that mainly has business within insurance and has therefore decided to make use of this exception.

IFRS 17 Insurance Contracts (2017)

IFRS 17 Insurance Contracts was published on May 18, 2017, with effect from 1 January 2021. IASB has decided to defer the effective date of IFRS 17 to the reporting period beginning on January 1, 2023.

IFRS 17 establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts and supersedes IFRS 4 Insurance contracts. The new standard applies to insurance contracts issued, to all reinsurance contracts and to investment contracts with discretionary participating features provided the entity also issues insurance contracts.

Gjensidige's choice of portfolios of insurance contracts is based on the following:

where decisions are made
how high up in the product structure the products can be aggregated and still be considered to carry equal risk
the materiality of individual portfolios based on size

On this basis, it has been decided that the level of aggregation for portfolios of insurance contracts will be based on a combination of Gjensidige's product and segment structure. Management reporting takes place at segment level, while the product structure is the risk assessment level.

Each portfolio of insurance contracts will either be placed in a group of contracts that at initial recognition are unlikely to become onerous at a later stage or with contracts that are onerous at initial recognition. Contracts issued more than one year apart will not be placed in the same group.

Insurance contracts in Gjensidige's general insurance operations mainly have a coverage period of one year or less and will therefore qualify for the use of a simplified method called the Premium Allocation Approach (PAA), to measure the liability for remaining coverage. Under the PAA approach, the liability for remaining coverage corresponds to premiums received at initial recognition minus insurance acquisition costs. The General Measurement Model (GMM) will be used to measure liabilities for incurred claims. Insurance contracts with a coverage period of more than one year will also be calculated under the simplified method, and it is assumed that the result of this calculation will not differ significantly from the general method. The transition to discounted claims provisions and the introduction of risk adjustment will have a significant effect on the opening balance. Based on preliminary calculations, it does not appear that the change of method will have a significant impact on our day-to-day results.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212

24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Insurance contracts in Gjensidige's life insurance operations primarily have a coverage period of more than one year and will therefore be measured using the general method. The transition to this method, and the introduction of the contractual service margin (CSM) and risk adjustment will have a significant effect on the Pension segment's opening balance. The change of method is also expected to have a significant impact on our day-to day results. The effects have not been quantified, as they cannot be reliably estimated at present.

Insurance income, insurance expenses and financial insurance income or expenses will be presented separately in the income statement. Reinsurance will be presented on separate lines.

Based on our preliminary assessments and on the basis of Gjensidige's current operations, other amendments to standards and interpretation statements will not have a significant effect.

Basis of measurement

The consolidated financial statements have been prepared based on the historical cost principle with the following exceptions:

derivatives are measured at fair value
financial instruments at fair value through profit or loss are measured at fair value

Functional and presentation currency

Functional currency

Functional currency is determined for each company in Gjensidige, based on the currency within the primary economic environment where each company operates. Transactions in the company's accounts are measured in the subsidiary's functional currency. Transactions in foreign currency are translated to functional currency based on the day rate at the transaction date. At the end of each reporting period, monetary items in foreign currency are translated at the closing rate, non-monetary items are measured at historical cost translated at the time of the transaction and non-monetary items denominated in foreign currency at fair value are translated at the exchange rates prevailing at the date of calculation of fair value. Exchange rate differences are recognised continuously in the income statement during the accounting period.

Presentation currency

The consolidated financial statements are presented in NOK. The mother company and the different branches have respectively Norwegian, Swedish, Danish kroner and Euro as functional currency.

For companies with other functional currencies, balance sheet items are translated at the exchange rate at the balance sheet date, including excess values on acquisition, and profit and loss accounts at an annual average rate. Exchange rate differences are recognised in other comprehensive income.

In case of loss of control, significant influence or joint control, accumulated exchange rate differences that are recognised in other comprehensive income related to investments attributable to controlling interests, are recognised in the income statement.

Exchange gains and losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely in the foreseeable future, are considered to form a part of the net investment in the foreign operation and are recognised in other comprehensive income.

Goodwill arising on the acquisition of a foreign operation and fair value adjustments of the carrying amount of assets and liabilities arising on the acquisition of the foreign operation are treated as assets and liabilities in the functional currency of the foreign operation.

All financial information is presented in NOK, unless otherwise stated.

Due to rounding differences, figures and percentages may not add up to the total.

Segment reporting

The operating segments are determined based on Gjensidige's internal organisational management structure and the internal financial reporting structure to the chief operating decision maker. In Gjensidige Forsikring Group, the Senior Group Management is responsible for evaluating and following up the performance of the segments and is considered the chief operating decision maker. Gjensidige reports on six operating segments, which are independently managed by managers responsible for the respective segments depending on the products and services offered, distribution and settlement channels, brands and customer

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

profiles. Identification of the segments is based on the existence of segment managers who report directly to the Senior Group Management/CEO and who are responsible for the performance of the segment under their charge. Based on this Gjensidige reports the following operating segments:

General insurance Private
General insurance Commercial
General insurance Denmark
General insurance Sweden
General insurance Baltics
Pension

The recognition and measurement principles for Gjensidige's segment reporting are based on the IFRS principles adopted in the consolidated financial statements.

Inter-segment pricing is determined on arm's length distance.

Consolidation policies

Subsidiaries

Subsidiaries are entities controlled by Gjensidige Forsikring. Gjensidige Forsikring controls an investee when it is exposed, or has the rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. If the Group has the majority of voting rights in an entity, the entity is presumably a subsidiary of the Group. The Group evaluates all relevant facts and circumstances in order to evaluate whether the Group has control of the entity in which it is invested. Among other things, ownership, voting rights, ownership structure and relative strengths, as well as options controlled by the Group and shareholder agreements or other agreements.

The result, as well as each component in other comprehensive income, is attributable to the Group and to non-controlling interests, although this results in deficits of non-controlling interests. If necessary, the accounts of subsidiaries are adjusted to be in line with the Group's accounting policies.

Associates and joint ventures

Gjensidige has investments in associates and joint ventures.

Associates are entities in which Gjensidige has a significant, but not a controlling or joint control, influence over the financial and operational management. Normally this will apply when Gjensidige has between 20 and 50 per cent of the voting power of another entity.

Joint ventures are defined as companies where there exists a contractual agreement giving joint control together with one or more parties. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. The Group's joint venture has investment properties that are accounted for at fair value.

Associates and joint ventures are accounted for using the equity method, and initial recognition is at cost. Any goodwill is reduced with impairment losses. The investor's share of the investee's profit or loss and amortisation of excess value is recognised in the investor's profit or loss. Distributions received from an investee reduce the carrying amount of the investment.

The Group's share of earnings from investments in associates and joint ventures is presented on a separate line in the income statement. Changes in other income and expenses in these investments are included in other income and expenses. Correspondingly, the group's share of recognitions directly to equity in the underlying investment is presented in the Group's equity statement.

See note 5 for a further description of Gjensidige's joint venture.

Transactions eliminated on consolidation

Intra-group balances and transactions, and unrealised income and expenses arising from intragroup transactions, are eliminated in the consolidated financial statements. Unrealised gains arising from transactions with equity accounted companies are eliminated against the investment to the extent of Gjensidige's interest. Unrealised losses are eliminated in the same way, but only to the extent that there is no evidence of impairment.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Business combinations

Business combinations are accounted for by applying the acquisition method. The cost of the business combination is the fair value at the date of exchange of assets acquired, liabilities incurred, and equity instruments issued by Gjensidige, in exchange for control of the acquired company, and any expenses directly attributable to the business combination.

The purchase price allocation of the business combination changes if there is new information about the fair value applicable per date for acquisition of control. The allocation can be changed up to 12 months after the acquisition date (if the purchase price allocation that was completed at the acquisition date was preliminary). Non-controlling interests are calculated on the non-controlling interests of identifiable assets and liabilities or at fair value.

Goodwill is calculated as the sum of the purchase price and book value of non-controlling interest and fair value of previously owned interests, less the net value of identifiable assets and liabilities calculated at the acquisition date.

If the fair value of net assets in the business combination exceeds the purchase price (negative goodwill), the difference is recognised immediately at the acquisition date.

Cash flow statement

Cash flows from operating activities are presented according to the direct method, which gives information about material classes and payments.

Operational activities are primary activities within each of the Group's business areas. Investment activities include the purchase and sale of assets that are not considered cash equivalents, and which are not included in the Group's primary activities. Financing activities include raising and repaying loans, as well as collecting and servicing equity.

Cash and bank deposits with maturity less than three months ahead are considered cash. Certificates and bonds with a similar short residual maturity are not classified as cash equivalents.

Recognition of revenue and expenses

Operating income and operating expenses consist of income and expenses in relation to the business in the different business areas, see below.

Earned premiums from general insurance

Insurance premiums are recognised over the term of the policy. Earned premiums from general insurance consist of gross premiums written and ceded reinsurance premiums.

Gross premiums written include all amounts Gjensidige has received or is owed for insurance contracts where the insurance period starts before the end of the accounting period. At the end of the period provisions are recorded, and premiums written that relate to subsequent periods are adjusted for.

Ceded reinsurance premiums reduce gross premiums written and are adjusted for according to the insurance period. Premiums for inward reinsurance are classified as gross premiums written and are earned according to the insurance period.

Earned premiums from pension

Earned premiums from pension consist of earned risk premium and administration expenses in relation to the insurance contracts.

Claims incurred

Claims incurred consist of gross paid claims less reinsurers' share, in addition to a change in provision for claims, gross, also less reinsurers' share. Direct and indirect claims processing costs are included in claims incurred. The claims incurred contain run-off gains/losses on previous years' claims provisions.

Operating expenses

Operating expenses consist of salaries and administration and sales costs.

Net income from investments

Financial income consists of interest income on financial investments, dividend received, realised gains related to financial assets, change in fair value of financial assets at fair value

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

through profit or loss, and gains on financial derivatives. Interest income on interest rate instruments is recognised in profit or loss using the effective interest method.

Financial expenses consist of interest expenses on loans that are not part of the banking operations, realised losses related to financial assets, change in fair value of financial assets at fair value through profit or loss, recognised impairment on financial assets and recognised loss on financial derivatives. All expenses related to loans measured at amortised cost are recognised in profit or loss using the effective interest method.

Tangible assets

Owner-occupied property, plant and equipment

Recognition and measurement

Items of owner-occupied property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the item. In cases where equipment or significant items have different useful lives, they are accounted for as separate components. Owner-occupied property is defined as property that is used by Gjensidige for conducting its business.

Subsequent costs

Subsequent costs are recognised in the asset's carrying amount when it is probable that the future economic benefits associated with the asset will flow to Gjensidige, and the cost of the asset can be measured reliably. If the subsequent cost is a replacement cost for part of an item of owner-occupied property, plant and equipment, the cost is capitalized and the carrying amount of what has been replaced is derecognised. Repairs and maintenances are recognised in profit or loss in the period in which they are incurred.

Depreciation

Each component of owner-occupied property, plant and equipment are depreciated using the straight-line method over estimated useful life. Land, leisure houses and cottages are not depreciated. The estimated useful lives for the current and comparative periods are as follows, with technical installations having the highest depreciation rate:

owner-occupied property 10-50 years
right-of-use property 2-10 years
plant and equipment 3-10 years

-

• right-of-use plant and equipment 1-3 years

Depreciation method, expected useful life and residual values are reassessed annually. An impairment loss is recognised if the carrying amount of an asset is less than the recoverable amount.

Leases

Gjensidige recognises all identifiable lease agreements as a lease liability and a corresponding right-of-use asset, with the following exemptions:

short-term leases (defined as 12 months or less)
low value assets

For these leases, Gjensidige recognises the lease payments as other operating expenses in the statement of profit or loss when they incur.

The lease liability is initially measured at the present value of the lease payments for the right to use the underlying asset during the lease term. The lease term represents the noncancellable period of the lease, together with periods covered by an option to extend the lease when Gjensidige is reasonably certain to exercise this option, and periods covered by an option to terminate the lease if Gjensidige is reasonably certain not to exercise that option.

Gjensidige applies a single discount rate to a portfolio of leases with reasonably similar characteristics (for example similar remaining lease term).

The lease liability is subsequently measured by increasing the carrying amount to reflect the interest on the lease liability, reducing the carrying amount to reflect the lease payments made and subsequent measurement of the carrying amount to reflect any reassessment of lease modifications, or to reflect adjustments in lease payments due to an adjustment in an index or rate.

The lease liability is shown in a separate line in the statement of financial position. The right-of-use asset is initially measured at cost, comprising the amount of the initial measurement of the lease liability, plus any down payment.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

The right-of-use asset is subsequently measured at cost less accumulated depreciation and impairment losses. Depreciations are according to IAS 16 Property, Plant and Equipment, except that the right-of-use asset is depreciated over the earlier of the lease term and the remaining useful life of the right-of-use asset. IAS 36 Impairment of Assets applies to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.

The right-of-use asset is included in the accounting line Owner-occupied property, plant and equipment.

The interest effect of discounting the lease liability is presented separately from the depreciation charge for the right-of-use asset. The depreciation expense is presented with other depreciations, whereas the interest effect of discounting is presented in the line Expenses related to investments and interest expenses.

Intangible assets

Goodwill

Goodwill acquired in a business combination represents cost price of the acquisition in excess of Gjensidige's share of the net fair value of identifiable assets, liabilities and contingent liabilities in the acquired entity at the time of acquisition. Goodwill is recognised initially at cost and subsequently measured at cost less accumulated impairment losses.

For investments accounted for according to the equity method, carrying amount of goodwill is included in the carrying amount of the investment.

Other intangible assets

Other intangible assets which consist of customer relationships, trademarks, internally developed software and other intangible assets that are acquired separately or as a group are recognised at historical cost less accumulated amortisation and accumulated impairment losses. New intangible assets are capitalized only if future economic benefits associated with the asset are probable and the cost of the asset can be measured reliably.

Development expenditures (both internally and externally generated) is capitalized only if the development expenditure can be measured reliably, the product or process is technically and

commercially feasible, future economic benefits are probable, and Gjensidige intends to and has sufficient resources to complete the development and to use or sell the asset.

Amortisation

Intangible assets, other than goodwill is amortised on a straight-line basis over the estimated useful life, from the date that they are available for use. The estimated useful lives for the current and comparative periods are as follows:

•	customer relationships	5–10 years
•	internally developed software	5–8 years
•	other intangible assets	1–10 years

The amortisation period and amortisation method are reassessed annually. An impairment loss is recognised if the carrying amount of an asset is less than the recoverable amount.

Impairment of non-financial assets

Indicators of impairment of the carrying amount of tangible and intangible assets are assessed at each reporting date. If such indicators exist, then recoverable amount of an assets or a cash generating unit is estimated. Indicators that are assessed as significant by Gjensidige and might trigger testing for an impairment loss are as follows:

significant reduction in earnings in relation to historical or expected future earnings
significant changes in Gjensidige's use of assets or overall strategy for the business
significant negative trends for the industry or economy
other external and internal indicators

Goodwill is tested for impairment annually. The annual testing of goodwill is performed in the third quarter.

Recoverable amount is the greater of the fair value less costs to sell and value in use. In assessing value in use, estimated future cash flows are discounted to present value using a pre-tax discount rate that reflects the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets generating cash inflows that are largely independent of cash inflows from other assets or groups of assets (cash-generating unit). Goodwill is allocated to the cash-generating unit expecting to benefit from the business combination.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Impairment losses are recognised in profit or loss if the carrying amount of an asset or cashgenerating unit exceeds its estimated recoverable amount. Impairment losses recognised in respect of cash-generating units are allocated first to the carrying amount of goodwill and then proportionally to the carrying amount of each asset in the cash-generating unit. Previously recognised impairment losses are for assets except for goodwill, reversed if the prerequisites for impairment losses are no longer present. Impairment losses will only be reversed if the recoverable amount does not exceed the amount that would have been the carrying amount at the time of the reversal if the impairment loss had not been recognised.

Impairment losses recognised for goodwill will not be reversed in a subsequent period. On disposal of a cash generating unit, the goodwill attributable will be included in the determination of the gain or loss on disposal.

Technical provisions

Provision for unearned premiums, gross

The provision for unearned premiums, gross reflects the accrual of premiums written. The provision corresponds to the unearned portions of the premiums written. No deduction is made for any expenses before the premiums written are accrued.

Claims provision, gross

The claims provision comprises provisions for anticipated future claims payments in respect of claims incurred, but not fully settled at the reporting date. These include both claims that have been reported (RBNS – reported but not settled) and those that have not yet been reported (IBNR – incurred but not reported). The provisions related to reported claims are assessed individually by the Claims Department, while the IBNR provisions are calculated based on empirical data for the time it takes from a loss or claim occurring (date of loss) until it is reported (date reported). Based on experience and the development of the portfolio, a statistical model is prepared to calculate the scope of post-reported claims. The appropriateness of the model is measured by calculating the deviation between earlier postreported claims and post-reported claims estimated by the model.

Claims provisions are not normally discounted. For contracts with annuity payments over a long horizon, discounting is performed. IFRS 4 permits the use of different policies within Gjensidige in this area.

Claims provisions contain an element that is to cover administrative expenses incurred in settling claims.

Adequacy test

A yearly adequacy test is performed to verify that the level of the provisions is sufficient compared to Gjensidige's liabilities. Current estimates for future claims payments for Gjensidige's insurance liabilities at the reporting date, as well as related cash flows, are used to perform the test. This includes both claims incurred before the reporting date (claims provisions) and claims that will occur from the reporting date until the next annual renewal (premium provisions). Any negative discrepancy between the original provision and the liability adequacy test will entail provision for insufficient premium level.

Provisions for life insurance

Technical provisions regarding life insurance in Gjensidige Pensjonsforsikring are premium reserve and additional provision.

The technical provisions related to the unit linked contracts are determined by the market value of the financial assets. The unit linked contracts portfolio is not exposed to investment risk related to the customer assets since the customers are not guaranteed any return. In addition, there is a portfolio of annuity contracts which have an average 3.4 per cent annually guaranteed return on assets.

Reinsurers' share of insurance-related liabilities in general insurance, gross

Reinsurers' share of insurance-related liabilities in general insurance, gross is classified as an asset in the balance sheet. Reinsurers' share of provision for unearned premiums, gross and reinsurers' share of claims provision, gross are included in reinsurers' share of insurancerelated liabilities in general insurance, gross. The reinsurers' share is less expected losses on claims based on objective evidence of impairment losses.

Financial instruments

Financial instruments are classified in one of the following categories

at fair value through profit or loss:
investments held to maturity
loans and receivables
financial derivatives

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

financial liabilities at amortised cost
financial liabilities classified as equity

Recognition and derecognition

Financial assets and liabilities are recognised when Gjensidige becomes a party to the instrument's contractual terms. Initial recognition is at fair value. For instruments that are not derivatives or measured at fair value through profit or loss, transaction expenses that are directly attributable to the acquisition or issuance of the financial asset or the financial liability, are included. Normally initial recognition will be equal to the transaction price. Subsequent to initial recognition the instruments are measured as described below.

Financial assets are derecognised when the contractual rights to cash flows from the financial asset expire, or when Gjensidige transfers the financial asset in a transaction where all or practically all the risk and rewards related to ownership of the assets are transferred.

At fair value through profit or loss

Financial assets and liabilities are classified at fair value through profit or loss if they are held for trading or are designated as such upon initial recognition. All financial assets and liabilities can be designated at fair value through profit or loss if

the classification reduces a mismatch in measurement or recognition that would have arisen otherwise as a result of different rules for the measurement of assets and liabilities
the financial assets are included in a portfolio that is measured and evaluated regularly at fair value

Transaction expenses are recognised in profit or loss when they incur. Financial assets at fair value through profit or loss are measured at fair value at the reporting date. Changes in fair value are recognised in profit or loss.

The category at fair value through profit or loss comprise the classes shares and similar interests, bonds and other fixed income securities, loans, interest-bearing liabilities and liabilities in life insurance with investment options.

Investments held to maturity

Investments held to maturity are non-derivative financial assets with payments that are fixed, or which can be determined in addition to a fixed maturity date, in which a business has intentions and ability to hold to maturity with the exception of

those that the business designates as at fair value through profit or loss at initial recognition
those that meet the definition of loans and receivables

Investments held to maturity are measured at amortised cost using the effective interest method, less any impairment losses.

The category investments held to maturity comprises the class bonds held to maturity.

Loans and receivables

Loans and receivables are non-derivative financial assets with payments that are fixed or determinable. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses.

Interest-free loans are issued to finance fire alarm systems within agriculture for loss prevention purposes. These loans are repaid using the discount granted on the main policy when the alarm system is installed.

The category loans and receivables comprise the classes obligations classified as loans and receivables, loans, receivables related to direct operations and reinsurance, other receivablesand cash and cash equivalents.

Financial derivatives

Financial derivatives are used in the management of exposure to equities, bonds and foreign exchange in order to achieve the desired level of risk and return. The instruments are used both for trading purposes and for hedging of other balance sheet items. Any trading of financial derivatives is subject to strict limitations.

Gjensidige uses financial derivatives, amongst other to hedge foreign currency exchanges arising from the ownership of foreign subsidiaries with other functional currency.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Transaction expenses are recognised in profit or loss when they incur. Subsequent to initial recognition financial derivatives are measured at fair value and changes in fair value are recognised in profit or loss.

The category financial derivatives comprise the class financial derivatives at fair value through profit or loss.

Financial liabilities at amortised cost

Financial liabilities are measured at amortised cost using the effective interest method. When the time horizon of the financial liability's due time is quite near in time the nominal interest rate is used when measuring amortised cost.

The category financial liabilities at amortised cost comprises subordinated debt, interestbearing liabilities, other financial liabilities and liabilities related to direct insurance reinsurance.

Financial liabilities classified as equity

Gjensidige has perpetual tier 1 capital accounted for as equity. The instruments are perpetual, but the principal can be repaid on specific dates, for the first time five years after it was issued. The agreed terms meet the requirements in the EU's CRR/Solvency II regulations and the instruments are included in Gjensidige's Tier 1 capital for solvency purposes. These regulatory requirements mean that Gjensidige has a unilateral right not to repay interest or the principal to the investors. As a consequence of these terms, the instruments do not meet the requirement for a liability in IAS 32 and are therefore presented on the line perpetual Tier 1 capital under equity. Further, it implies that the interest is not presented under Total interest expenses but as a reduction in other equity.

Other items classified as equity

Natural perils capital and guarantee scheme provision are accounted for as equity because the funds belong to the group. As a consequence, they do not meet the requirement for liability in IAS 32 and are therefore presented as funds within equity.

Definition of fair value

Subsequent to initial recognition, investments at fair value through profit or loss are measured at the amount each asset/liability can be settled to in an orderly transaction between market participants at the measurements date.

Different valuation techniques and methods are used to estimate fair value depending on the type of financial instruments and to which extent they are traded in active markets. For financial instruments traded in active markets, listed market prices or traders' prices are used, while for financial instruments not traded in an active market, fair value is determined using appropriate valuation methods.

For further description of fair value, see note 13.

Definition of amortised cost

Subsequent to initial recognition, investments held to maturity, loans and receivables and financial liabilities that are not measured at fair value are measured at amortised cost using the effective interest method. When calculating effective interest rate, future cash flows are estimated, and all contractual terms of the financial instrument are taken into consideration. Fees paid or received between the parties in the contract and transaction costs that are directly attributable to the transaction, are included as an integral component of determining the effective interest rate.

Impairment of financial assets

Loans, receivables and investments held to maturity

For financial assets that are not measured at fair value, an assessment of whether there is objective evidence that there has been a reduction in the value of a financial asset or group of assets is made on each reporting date. Objective evidence might be information about credit report alerts, defaults, issuer or borrower suffering significant financial difficulties, bankruptcy or observable data indicating that there is a measurable reduction in future cash flows from a group of financial assets, even though the reduction cannot yet be linked to an individual asset.

An assessment is first made to whether objective evidence of impairment of financial assets that are individually significant exists. Financial assets that are not individually significant or

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

that are assessed individually, but not impaired, are assessed in groups with respect to impairment. Assets with similar credit risk characteristics are grouped together.

If there is objective evidence that the asset is impaired, impairment loss is calculated as the difference between the carrying amount of the asset and the present value of estimated future cash flows discounted at the original effective interest rate. The loss is recognised in profit or loss.

Impairment losses are reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised. The reversal shall not result in the carrying amount of the financial asset exceeding the amount of the amortised cost if the impairment had not been recognised at the time the loss was reversed. Reversal of previous losses on impairment is recognised in profit or loss.

Dividend

Dividend from investments is recognised when the Group has an unconditional right to receive the dividend. Proposed dividend is recognised as a liability from the point in time when the General Meeting approves the payment of the dividend.

Provisions

Provisions are recognised when Gjensidige has a legal or constructive obligation as a result of a past event, it is probable that this will entail the payment or transfer of other assets to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

Information about contingent assets is disclosed where an inflow of economic benefits is probable. Information about a contingent liability is disclosed unless the possibility of an outflow of resources is remote.

Provision for restructuring is recognised when Gjensidige has approved a detailed and formal restructuring plan which has commenced or has been announced. Provisions are not made for future expenses attributed to the operations.

Events after the balance sheet date

New information after the balance sheet date of Gjensidige's financial position at the balance sheet date is taken into account in the financial statement. Events after the balance sheet date that do not affect the company's financial position at the balance sheet date, but which will affect the company's financial position in the future, are disclosed if this is material.

Pensions

Pension liabilities are assessed at the present value of future pension benefits that are recognised as accrued at the reporting date. Future pension benefits are calculated on the basis of expected salary at the retirement date. Pension assets are valued at fair value. Net pension liability is the difference between the present value of future pension benefits and the fair value of the pension assets. Employer's social security cost is recognised during the period under which an underfunding occurs. Net pension liability is shown in the balance sheet on the line Pension liabilities. Any overfunding is recognised to the extent that it is likely that the overfunding can be utilised. An overfunding in a funded plan cannot be offset against an underfunding in an unfunded plan. If there is a net overfunding in the funded plan, it is recognised as Pension assets.

The period's pension cost (service cost) and net interest expense (income) are recognised in the income statement and are presented as an operating cost in the income statement. Net interest expense is calculated using the discount rate for the liability at the beginning of the period of the net liability. Net interest expense therefore consists of interest on the obligation and return on the assets.

Deviations between estimated pension liability and estimated value of pension assets in the previous financial year and actuarial pension liability and fair value of pension assets at the beginning of the year are recognised in other comprehensive income. These will never be reclassified through profit or loss.

Gains and losses on curtailment or settlement of a defined benefit plan are recognised in the income statement at the time of the curtailment or settlement.

Mandatory contributions to the defined contribution plans are recognised as employee expenses in the income statement when accrued.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Share-based payment

Gjensidige has a share saving program for employees and a share-based remuneration scheme for senior executives. The share savings program is an arrangement with settlement in shares, while the remuneration scheme is an arrangement with settlement in both shares and cash.

The share-based payment arrangements are measured at fair value at the time of allocation and is not changed afterwards. Fair value is accrued over the period during which employees acquire the right to receive the shares. Share-based payment arrangements which are recovered immediately are recognised as expenses at the time of allocation. Vesting conditions are taken into account by adjusting the number of equity instruments included in the measurement of the transaction amount so that, ultimately, the amount recognised shall be based on the number of equity instruments that eventually vest. Non-vesting conditions and possible market conditions are reflected in the measurement of fair value, and no adjustment of the amount charged as expenses is done upon failing to meet such conditions.

The cost of share-based transactions with employees is recognised as an expense over the average recovery period. For arrangements that are settled in shares, the value of the allocated shares in the period is recognised as a salary expense in the income statement with a corresponding increase in other paid-in equity. For arrangements settled in cash, which is only applicable for Gjensidige's obligation to withhold an amount for the employees' tax liability and transfer this amount in cash to the tax authorities on behalf of the employee, the value of the conditional share allotment granted is recognised as a salary expense in the income statement with a corresponding increase in other paid-in equity . Employers' social security costs are calculated based on the fair value of the shares on each balance sheet date. The amount is recognised in the income statement over the expected vesting period and accrued according to IAS 37.

Share-based payment arrangements settled by one of the shareholders in the ultimate mother company is also recognised as a share-based payment transaction with settlement in equity.

See note 22 for a further description of Gjensidige's share-based payment arrangements and their measurement method.

Tax

Income tax expense comprises the total of current tax and deferred tax.

Current tax

Current tax is tax payable on the taxable profit for the year, based on tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax

Deferred tax is determined based on differences between the carrying amount and the amounts used for taxation purposes, of assets and liabilities at the reporting date. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that they can be offset by future taxable income. If deferred tax arises in connection with the initial recognition of a liability or asset acquired in a transaction that is not a business combination, and it does not affect the financial or taxable profit or loss at the time of the transaction, then it will not be recognised.

Deferred tax liabilities are recognised for temporary differences resulting from investments in subsidiaries and associates, except in cases where Gjensidige is able to control the reversal of temporary differences, and it is probable that the temporary difference will not be reversed in foreseeable future. Deferred tax assets that arise from deductible temporary differences for such investments are only recognised to the extent that it is probable that there will be sufficient taxable income to utilise the asset from the temporary difference, and they are expected to reverse in the foreseeable future.

Deferred tax liabilities and deferred tax assets are offset when there is a legally enforceable right to offset those assets/liabilities and when deferred tax liabilities/deferred tax assets relate to the same fiscal authority. Set off is only applied where deferred tax benefits can be utilized by providing group contributions.

Recognition

Current tax and deferred tax are recognised as an expense or income in the income statement, with the exception of deferred tax on items that are recognised in other comprehensive income, where the tax is recognised in other comprehensive income, or in cases where deferred tax arises as a result of a business combination. For business combinations, deferred tax is calculated on the difference between fair value of the acquired assets and liabilities and their carrying amount. Goodwill is recognised without provision for deferred tax.

Related party transactions

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Intra-group balances and transactions are eliminated in preparing the consolidated financial statements.

The provider of intra-group services, that are not considered core activities, will as a main rule, allocate its incurred net costs (all costs included) based on a Cost-Plus method, which includes direct and indirect costs, as well as a mark-up for profit. Group functions of a purely administrative nature (such as IT, purchasing, accounting) are priced based on the cost-plus method.

Identified functions that are categorized as core activities (reinsurance, distribution, claims handling) will be charged out with a reasonable mark up or alternatively at market price if identifiable, comparable prices exist.

Transactions with affiliated companies

The Fire Mutuals operate as agents on behalf of Gjensidige. For these services commission is paid. The Fire Mutuals are also independent insurance companies with fire and natural damage on their own account. Gjensidige provides various services to support this insurance operation. For these services and to reinsure the Fire Mutuals' fire insurance Gjensidige receives payment based on arm's length distance.

Non-current assets held for sale and discontinued operations

A discontinued operation is a part of Gjensidige that either has been disposed of or is classified as held for sale and:

represents a separate major line of business or geographical area of operations,
is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations or
is a subsidiary acquired exclusively with a view to resale.

Assets that meet the criteria to be classified as held for sale are measured at the lower of its carrying amount and fair value less costs to sell.

must be committed to a plan to sell the asset, which is expected to qualify for recognition as a completed sale within one year from the date of classification.

When Gjensidige is committed to a plan to sell, which involves loss of control of a subsidiary, all the assets and liabilities for that subsidiary shall be classified as held for sale when the criteria above are met, regardless of whether Gjensidige will retain a non-controlling interest in its former subsidiary after the sale.

Profit after tax expense from discontinued operations is presented on a separate line in the consolidated income statement. Comparative figures will be restated. Net cash flows attributable to discontinued operations will be presented on separate lines in the consolidated statement of cash flows. Comparative figures will be restated. Assets and liabilities held for sale will be presented as separate lines in the statement of financial position. Comparative figures will not be restated.

2. Use of estimates

The preparation of the financial statements under IFRS and the application of the adopted accounting policies require that management make assessments, prepare estimates and apply assumptions that affect the carrying amounts of assets and liabilities, income and expenses. The estimates and the associated assumptions are based on experience and other factors that are assessed as being justifiable based on the underlying conditions. Actual figures may deviate from these estimates. The estimates and associated prerequisites are reviewed regularly. Changes in accounting estimates are recognised in the period the estimates are revised if the change only affects this period, or both in the period the estimates change and in future periods if the changes affect both the existing and future periods. Assumptions and major sources of estimation uncertainty that have a significant risk of resulting in a material adjustment to the carrying amount of insurance-related liabilities within the next financial year are discussed below.

Insurance-related liabilities

Use of estimates in calculation of insurance-related liabilities is primarily applicable for claims provisions.

Insurance products are divided in general into two main categories; lines with short or long settlement periods. The settlement period is defined as the length of time that passes after a

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

loss or injury occurs (date of loss) until the claim is reported and then paid and settled. Shorttail lines are e.g. property insurance, while long-tail lines primarily involve accident and health insurances. The uncertainty in short-tail lines of business is linked primarily to the size of the loss.

For long-tail lines, the risk is linked to the fact that the ultimate claim costs must be estimated based on experience and empirical data. For certain lines within accident and health insurances, it may take ten to 15 years before all the claims that occurred in a calendar year are reported to the company. In addition, there will be many instances where information reported in a claim is inadequate to calculate a correct provision. This may be due to ambiguity concerning the causal relationship and uncertainty about the injured party's future work capacity etc. Many personal injury claims are tried in the court system, and over time the level of compensation for such claims has increased. This will also be of consequence to claims that occurred in prior years and have not yet been settled. The risk linked to provisions for lines related to insurances of the person is thus affected by external conditions. To reduce this risk, the company calculates its claims liability based on various methods and follows up that the registered provisions linked to ongoing claims cases are updated at all times based on the current calculation rules. See note 3 and note 16.

3. Risk and capital management

Introduction

Gjensidige's core business is general insurance, and the risk related to non-life and health insurance risk is therefore a major part of the risk Gjensidige is exposed to. Gjensidige is also exposed to life insurance risk through its operations in Gjensidige Pensjonsforsikring AS. Financial risk is also a material risk for the group.

In this note, the effects of Covid-19 will be described first. Then the business structure and the risk management system are presented. Thereafter the different risks and management of these risks will be described. Finally, the capital requirement for these risks and the capital management will be described.

Covid-19

The outbreak of the corona virus, Covid-19, and the measures taken to limit infection have affected the results for the financial year 2021. All effects of Covid-19 are considered to be within what one with a certain probability can expect to occur. The risk is mainly related to market risk, insurance risk and operational risk. Based on current information, the internal model is considered to capture the risk related to Covid-19. Alternative scenarios have been implemented to assess possible downside scenarios related to Covid-19, and Gjensidige is considered to be well capitalized to handle risk related to Covid-19.

The insurance business

For the insurance business as a whole, Covid-19 has resulted in improved underwriting results. The risk related to "long-covid" and side effects of the vaccine are assessed to be low. In general, lower activity in society results in fewer claims. Increased inflation (above expected level) might lead to larger claim payments going forward, but insurance premiums are already increased in order to take account of a continued high expected inflation level.

Investments

Gjensidige is exposed to negative market movements, but the risk level with the current asset allocation is moderate compared to the adopted limits and capacity. Risk management is operated as before with dynamic management based on market development and the portfolio's return.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Operational performance

The majority of employees have worked at home offices throughout the Covid-19 period. The operation of the Group has been more or less normal throughout the period after the outbreak of Covid-19. The Groups operations are now carried out more or less normally and there is reason to believe that the operation will function as normal also going forward, even if the government measures are prolonged. If employees should become infected and ill from Covid-19, crisis plans have been prepared, and the Group's crisis management has been in full operation throughout the Covid-19 period. It has not been observed that changes in the work situation due to the Covid-19 period have affected the company's internal control.

Business structure

Gjensidige's simplified Group structure.is shown in Figure 1.

Figure 1 – Simplified Group structure

Operation, development, procurement and follow-up of vendors related to information and communication technology services are carried out in the subsidiary Gjensidige Business Services AB.

Risk management system

The risk management system is organised with three lines and is an integral part of corporate governance. The figure below shows the overall principles for this organization, as well as roles and responsibilities.

The Board has the overall responsibility for the business risk management and control and supervises that this works. The board also adopts an overall risk appetite for the most important risks areas in the Group. As part of this work, it is ensured that necessary governing documents and procedures are in place.

The Board has established an Organisation and Remuneration Committee, an Audit Committee and a Risk Committee consisting of chosen Board members. The Audit Committee is tasked with preparing the Board's monitoring of the financial reporting process, the effectiveness of the systems for risk management and internal control, as well as the Company's internal audit function. The Risk Committee is also a preparatory committee that is to assess the Group companies' ability and desire to take risk, as well as to ensure a clear connection between overall strategy, risk management and capital planning. The aim of both committees is to strengthen and increase the efficiency of the Board's discussions and

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

contribute to improvements in the future. In addition, an Organisation and Remuneration Committee assists the Board in remuneration matters. Gjensidige Forsikring ASA has established strategies, policies and more detailed guidelines, routines and authorisation rules for the main risk areas. Group policies are subject to approval by the Board of each company within the Group based on local legislation.

The CEO has an overall responsibility for the ongoing risk management of the group. The Group's Capital Management committee is a body for monitoring and allocating capital for the entire Group and has an advisory role regarding the assessment and proposal of changes in use of capital. The Group's Risk Control Committee is a body for the Groups risk management and internal control and shall assist in monitoring the Group's risk situation, risk management and internal control. Both committees are chaired by the Group CEO. Furthermore, a Sustainability Council has been established headed by the Chief Sustainability Officer (CSO). This is an interdisciplinary body that ensures a comprehensive and uniform approach to sustainability issues in the Group. Relevant issues related to sustainability are addressed from the Sustainability Council to the Capital Management Committee or Risk Control Committee when needed.

Responsibility for the day-to-day risk management is delegated to the responsible line managers who must ensure that risk management and internal control system is established within their areas of responsibility and that relevant risk management activities are carried out. Furthermore, the individual manager shall ensure that risk owners are designated and that necessary measures are implemented.

All employees must within their areas contribute to the achievement of corporate goals and to risk management in line with established guidelines. There are established procedures and guidelines that must be followed, and risk management and internal control is therefore carried out as a part of the employee's daily work. Some functions, such as risk-, complianceand security coordinator, anti-money laundry officer and quality functions reviewing distribution and claims handling are organized as a part of first line management in order to assist with the maintenance of that line's responsibility for risk management and internal control. Handling of non-conformities is part of risk management and shall take place in accordance with established routines.

The various control functions in the second line are organized under the Chief Risk Officer (CRO) in Gjensidige Forsikring ASA.

The second line consist of centralised control functions for risk management, compliance, actuary issues and Group security;

The Risk Management function is responsible for maintaining and further developing the Group's risk management system so that the system at all times is satisfactory and in accordance with regulatory requirements and the Board's guidelines. The function should also organize and maintain a comprehensive and ongoing process for risk assessment and follow-up, have an overview of the most material risks the Group is or may be exposed to, and what this means for the Group solvency. The risk management function is headed by the CRO in Gjensidige Forsikring ASA. The CRO has the overall responsibility for establishing the procedures for performing risk management and reporting risk exposures as well as monitoring Board approved limits. CRO has a professional and independent reporting line to the CEO and the Board.
The compliance function function's main tasks are to help ensure that legal requirements, regulations or governing documents are complied with, that operational risk incidents that also are breaches of compliance are followed up and reported (including to national data auditors where necessary) and that the internal control system operates in accordance with the requirements. The compliance function is headed by the Chief Compliance Officer (CCO). COO has a professional and independent reporting line to the CEO and to the Board.
The actuarial function is responsible for coordinating the calculation and control of the technical provisions, but it has no responsibility for developing technical claim provision models or regular technical claim provision calculations. The function is also responsible for independent control of the internal model through the validation process. The function's responsibilities are limited to controlling activities, and the function must be independent of the operational activities with a separate reporting line. The head of the actuary function has a professional and independent reporting line to the CEO and the Board.
Group security is responsible for monitoring, reviewing and improving the information security management system. Group security is headed by the Chief Security Officer (CSO).

Independence is ensured by the CEO appointing the head of the second line functions and determines their remuneration. Managers of second line functions cannot be removed without the consent of the board. Their salary shall not be based on Gjensidige Forsikring ASA's result.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

The responsibility for all investment management is centralized in the Group's Investment Center organized under the CFO. A group-wide credit committee headed by the CFO has been established to set credit limits for individual issuers and general guidelines for counterparty risk. The function for monitoring and reporting financial returns and compliance with limits in financial management reports to the CRO to ensure independent follow-up.

The third line is the Group's Internal Audit function, which monitors the risk management and internal control system in the Group. Group Internal Audit will, through a risk-based approach, provide assurance to the organisation's board and senior management, on how effectively the organisation assesses and manages its risks, including the way the first and second lines operate. The function's tasks cover all elements of an organisation's risk management framework. The audit function reports directly to the Board of Gjensidige Forsikring ASA.

General insurance

Risk description

General insurance covers non-life and health insurance contracts. The Gjensidige Forsikring Group is exposed to general insurance risk in Norway, Sweden, Denmark and the Baltics. Gjensidige's current risk appetite is large in the core area of general insurance in the Nordic

and Baltic countries. The risk appetite is the greatest in areas which Gjensidige has high structural competence and access to relevant data. Other business areas shall contribute to the Group's total growth and profitability, but with limited risk appetite.

In order to describe general insurance risk, the most important components are elaborated below, and these are reserve risk, premium risk and lapse risk.

Reserve risk

Reserve risk is the risk that the current claims provisions are not sufficient to cover the development of already incurred claims and related expenses. Reserve risk reflects the emergence of uncertainty related to:

Actual claims' size (for reported, but not yet settled claims, i.e. RBNS) being higher than expected,
Claims incurred but not yet reported (IBNR) being greater than expected, and
Claim payments being paid out at a different time to that expected.

The cost of reported claims not yet paid (RBNS) is estimated by a claims handler for each individual claim and is based on relevant information available from claims reports, loss adjusters, medical certificates and information about the costs of settling claims with similar characteristics in previous periods. The key statistical methods used for calculating claims provisions for claims incurred but not yet reported (IBNR) are:

"Chain ladder" methods, which use historical data to estimate the proportions of the paid and incurred to date of the ultimate claim costs.
"Expected loss ratio" methods (e.g. "Bornhuetter-Ferguson"), which use Gjensidige's expectation of the loss ratio for a line of business in the estimation of future claims payments.
Methods where "Chain ladder" and "Expected loss ratio" methods are used in combination. One advantage of the use of these methods is that more weight can be given to experience data when the run-off development of the actual claim year has become more stable.

The methods used will depend on the line of business and the time period of data available. Some methods assume that future claim development will follow the same pattern as

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

historical claims. There are reasons why this may not always be the case, and it may be necessary to modify model parameters. The reasons why historical claims not necessarily project the future can be:

Economic, legal and social trends and social inflation (e.g. a shift in court awards)
Changes in the mix of insurance contracts
The impact of large losses

IBNR provisions and provisions for outstanding claims are initially estimated at a gross level, and a separate calculation is carried out to estimate the size of reinsurance recoveries. The estimation of IBNR is generally subject to a greater degree of uncertainty than the estimation of the cost of settling claims already notified (RBNS), where information about the claim is available. There may be cases where certain claims may not be apparent to the insured until many years after the event that gave rise to the claims.

Estimation uncertainty is an inherent character of the claim provisions. Several factors contribute to this uncertainty and include claim frequency and claim severity. An increase in the frequency of claims can be due to seasonal effects and more sustainable effects. During the winter season snow and cold weather will cause an increase in the frequency of claims in Motor insurance. In Property insurance, a cold winter will cause an increase in the frequency of claims due to frozen water pipes and increased use of electrical power and open fireplaces for heating of the houses. Shifts in the level of claims frequency may occur due to e.g. change in customer behaviour and new types of claims. The effect on the profitability of a permanent

change in the level of claims frequency will be high. In Motor insurance in Norway, for example, an increase of one percentage point in the level of claims frequency will increase the loss ratio by three to four percentage points based on the current level of claims.

Growth in severity of claims may, for example, be driven by the development of consumer price index (CPI) and salary increases. In Property insurance, the severity of claims will be influenced by inflation and specifically by increased building costs, which in the past has been slightly higher than CPI. For accident and health, the insurance policies are divided into two main groups, one with fixed sum insured and another part where the compensation is adjusted in accordance with a public/government index (in Norway: "G" - the basic amount in the National Insurance Scheme). This is the case in Workers' Compensation, for instance. The Group writes Workers' Compensation insurance in Norway and Denmark. The regulation of this line of business is quite different in these countries. In Norway Workers' Compensation covers both accident and diseases, while in Denmark diseases are covered by a governmental body. The compensation in Norway is exclusively in the form of lump sums, while in Denmark the compensation consists of both lump sums and annuity payments. Annuity payments are calculated on the basis of assumptions about mortality, interest rate and retirement age. For bodily injuries, the severity of claims is also influenced by court awards, which tend to increase the compensation more than the general inflation. This is also a significant factor, due to the long period typically required to settle these cases.

The tables below show how total claims in Gjensidige develop over time.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Table 1a – Analysis of claims development, general insurance

NOK millions	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	Total
Gross
Estimated claims cost
At the end of the accident year	16,042.9	13,794.4	15,718.2	15,343.4	13,224.7	14,864.4	16,305.6	17,282.1	16,055.5	17,700.5	18,270.1
- One year later	16,291.4	13,720.7	15,590.7	15,014.9	13,200.5	15,110.4	16,153.0	17,316.1	16,330.5	17,791.0
- Two years later	16,332.8	13,634.3	15,405.6	14,879.2	13,107.8	15,073.2	16,126.9	17,359.0	16,239.4
- Three years later	16,140.0	13,462.9	15,213.9	14,830.6	13,176.0	15,202.2	16,013.2	17,301.6
- Four years later	15,937.3	13,290.6	15,081.0	14,776.4	13,153.9	15,120.3	15,960.8
- Five years later	15,818.2	13,165.8	14,971.4	14,687.4	13,101.9	15,101.8
- Six years later	15,672.8	12,973.1	14,843.9	14,617.9	13,026.6
- Seven years later	15,507.4	12,943.7	14,798.6	14,533.9
- Eight years later	15,433.6	12,852.4	14,619.9
- Nine years later	15,387.3	12,701.1
- Ten years later	15,292.1

Estimated amount as at 31.12.2021	15,292.1	12,701.1	14,619.9	14,533.9	13,026.6	15,101.8	15,960.8	17,301.6	16,239.4	17,791.0	18,270.1
Total disbursed	14,540.9	11,955.0	13,887.5	13,632.9	12,086.0	13,756.1	14,533.5	15,441.3	13,944.1	14,146.3		9,458.3 147,381.9
Claims provision	751.2	746.1	732.4	901.0	940.6	1,345.8	1,427.3	1,860.3	2,295.4	3,644.7	8,811.8	23,456.6
Prior -year claims provision and loss adjustment provision												5,438.4
Total												28,895.0
Net of reinsurance
Estimated claims cost
At the end of the accident year	15,037.0	13,586.2	14,953.2	15,211.6	13,223.3	14,617.8	15,756.3	16,995.5	15,700.8	17,323.8	18,091.6
- One year later	15,221.4	13,507.0	14,781.9	14,841.4	13,199.4	14,862.2	15,594.3	16,945.3	15,949.3	17,463.3
- Two years later	15,321.8	13,436.1	14,691.6	14,728.4	13,100.4	14,825.3	15,514.5	16,975.3	15,889.8
- Three years later	15,196.3	13,259.0	14,496.8	14,677.6	13,167.3	14,914.4	15,408.1	16,930.4
- Four years later	14,990.1	13,077.7	14,378.9	14,623.6	13,145.5	14,836.9	15,343.8
- Five years later	14,870.9	12,952.1	14,269.2	14,534.5	13,093.5	14,789.1
- Six years later	14,725.1	12,761.8	14,141.8	14,464.4	13,020.4
- Seven years later	14,578.1	12,731.6	14,096.5	14,381.8
- Eight years later	14,504.3	12,638.9	13,928.3
- Nine years later	14,458.0	12,497.1
- Ten years later	14,415.0
Estimated amount as at 31.12.2021	14,415.0	12,497.1	13,928.3	14,381.8	13,020.4	14,789.1	15,343.8	16,930.4	15,889.8	17,463.3	18,091.6
Total disbursed	13,663.7	11,760.5	13,196.0	13,483.3	12,079.8	13,443.6	13,940.2	15,102.9	13,631.9	14,029.3		9,442.9 143,774.1
Claims provision	751.2	736.6	732.2	898.5	940.6	1,345.5	1,403.6	1,827.5	2,257.9	3,434.0	8,648.7	22,976.3
Prior -year claims provision and loss adjustment provision												5,449.5
Total												28,425.8

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137

Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Table 1b – Analysis of claims development, Gjensidige Forsikring ASA

NOK millions	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	Total
Gross
Estimated claims cost
At the end of the accident year	16,042.9	13,515.5	15,428.4	14,993.1	12,877.3	14,376.9	15,445.9	16,530.8	15,246.9	16,951.4	17,276.2
- One year later	16,291.4	13,462.1	15,319.7	14,636.7	12,851.2	14,630.0	15,294.4	16,573.5	15,526.7	17,053.5
- Two years later	16,332.8	13,383.0	15,141.2	14,517.6	12,766.0	14,606.5	15,265.5	16,625.6	15,441.3
- Three years later	16,140.0	13,213.4	14,953.3	14,468.4	12,831.3	14,744.4	15,153.9	16,578.7
- Four years later	15,937.3	13,037.4	14,825.6	14,415.6	12,811.5	14,663.3	15,109.1
- Five years later	15,818.2	12,919.6	14,717.7	14,329.8	12,768.0	14,650.3
- Six years later	15,672.8	12,734.6	14,593.2	14,255.8	12,700.6
- Seven years later	15,507.4	12,703.8	14,547.6	14,172.8
- Eight years later	15,433.6	12,610.5	14,370.6
- Nine years later	15,387.3	12,458.3
- Ten years later	15,292.1
Estimated amount as at 31.12.2021	15,292.1	12,458.3	14,370.6	14,172.8	12,700.6	14,650.3	15,109.1	16,578.7	15,441.3	17,053.5	17,276.2
Total disbursed	14,540.9	11,732.5	13,649.1	13,295.0	11,772.6	13,318.6	13,706.6	14,743.9	13,187.6	13,456.5		8,729.0 142,132.3
Claims provision	751.2	725.9	721.5	877.8	928.0	1,331.7	1,402.5	1,834.8	2,253.7	3,597.0	8,547.2	22,971.3
Prior -year claims provision and loss adjustment provision												5,279.4
Total												28,250.7
Net of reinsurance
Estimated claims cost
At the end of the accident year	15,037.0	13,309.9	14,663.6	14,868.2	12,877.3	14,133.2	14,920.6	16,250.7	14,916.0	16,591.7	17,108.6
- One year later	15,221.4	13,250.4	14,511.0	14,505.4	12,851.0	14,384.9	14,769.1	16,214.9	15,176.0	16,751.0
- Two years later	15,321.8	13,186.6	14,427.3	14,390.6	12,761.8	14,361.4	14,694.8	16,255.2	15,124.8
- Three years later	15,196.3	13,011.4	14,236.3	14,341.4	12,827.1	14,459.1	14,590.7	16,219.7
- Four years later	14,990.1	12,830.1	14,123.6	14,288.6	12,807.2	14,382.1	14,527.8
- Five years later	14,870.9	12,712.3	14,015.6	14,202.8	12,763.7	14,339.7
- Six years later	14,725.1	12,527.3	13,891.1	14,128.7	12,698.5
- Seven years later	14,578.1	12,496.5	13,845.6	14,047.0
- Eight years later	14,504.3	12,403.2	13,679.0
- Nine years later	14,458.0	12,259.9
- Ten years later	14,415.0
Estimated amount as at 31.12.2021	14,415.0	12,259.9	13,679.0	14,047.0	12,698.5	14,339.7	14,527.8	16,219.7	15,124.8	16,751.0	17,108.6
Total disbursed	13,663.7	11,534.0	12,957.4	13,169.2	11,770.5	13,008.0	13,145.2	14,414.0	12,894.3	13,350.6		8,716.1 138,623.0
Claims provision	751.2	725.9	721.5	877.8	928.0	1,331.7	1,382.6	1,805.7	2,230.4	3,400.4	8,392.5	22,547.7
Prior -year claims provision and loss adjustment provision												5,279.3
Total												27,827.0

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021 Gjensidige Forsikring Group	136 137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

The duration (average time between the date of loss until the claim is finally settled) differs significantly between the types of risk under consideration. Long duration will increase the company's exposure to inflation. The figure below shows the duration of different products.

Figure 4 – Duration of different products

Premium risk

Premium risk relates to future exposures, future claims and their related expenses. Exposure arises on unexpired risk from contracts already underwritten (i.e. the "unearned" exposure) and from future underwritten contracts.

Premium risk originates from the following factors:

Uncertainty in premium rates
Uncertainty in claim severity
Uncertainty in claim frequency
Uncertainty in timing of claims payments
Uncertainty in operating and claims handling expenses

Lapse risk

Lapse risk is defined as the risk of a change in value caused by deviations from the actual rate of policy lapses from their expected rates, i.e. an increase in the level of customers leaving the company. Gjensidige considers lapse risk to be limited for non-life and health insurance business, as the main effect of higher lapse rates will be a reduction in future profit.

Risk exposure

Reserve risk and premium risk are both material risks. Lapse risk contributes only marginally to the total risk exposure for both the Gjensidige Forsikring Group and Gjensidige Forsikring ASA. For reserve risk, most of the claims provisions and related risk exposure are related to lines of business exposed to personal injury, where it takes long time to settle claims. A large part of the reserve risk is related to lines of business such as "Workers' compensation insurance", "Motor vehicle liability insurance" and "Income protection insurance". For premium risk, the risk exposure is mainly related to "Motor insurance" and "Fire and other damage to property insurance".

Risk concentration

Gjensidige's general insurance portfolio is largest in Norway, but Gjensidige also has a significant part of its general insurance business in Denmark, Sweden and the Baltics.

Gjensidige has developed governing documents for insurance risk. The purpose is to diversify the types of insurance risks, and within each of these categories achieve a sufficiently large population of risks to reduce the fluctuation in the expected outcome. There are detailed guidelines that ensure that the risks underwritten are within Gjensidige's risk appetite. Experience shows that the larger the portfolio of similar insurance contracts, the smaller the relative variability around the expected outcome will be. In addition, a more diversified portfolio is less likely to be affected by a change in any subset of the portfolio. The two tables below show that Gjensidige has a well-diversified portfolio both between countries and between products. The portfolio consists mainly of private insurance and insurance related to small and medium-sized commercial business.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Table 2a – Gross premiums written per line of business, Gjensidige Forsikring Group

NOK millions	Gross premiums written 2021	Per cent of total	Gross premiums written 2020	Per cent of total

Medical expense insurance	1,497.4	4.7%	1,418.8	4.8%
Income protection insurance	1,631.9	5.2%	1,457.8	5.0%
Workers' compensation insurance	1,212.5	3.8%	1,053.9	3.6%
Motor vehicle liability insurance	3,512.1	11.1%	3,365.7	11.5%
Other motor insurance	5,889.0	18.7%	5,517.3	18.8%
Marine, aviation and transport insurance	368.5	1.2%	342.0	1.2%
Fire and other damage to property insurance	10,650.5	33.7%	9,976.0	34.1%
General liability insurance	1,160.0	3.7%	995.1	3.4%
Assistance	1,114.5	3.5%	1,018.3	3.5%
Health insurance	1,836.4	5.8%	1,589.3	5.4%
Other non-life insurance	1,546.7	4.9%	1,508.5	5.1%
Non-proportional non-life reinsurance	120.3	0.4%	136.9	0.5%
Pension - insurance with profit participation	391.8	1.2%	333.8	1.1%
Pension - index-linked and unit-linked insurance	634.7	2.0%	580.0	2.0%
Total	31,566.3	100.0%	29,293.4	100.0%

Table 2b – Gross premiums written per line of business, Gjensidige Forsikring ASA

	Gross premiums		Gross premiums
NOK millions	written 2021	Per cent of total	written 2020	Per cent of total
Medical expense insurance	1,272.6	4.4%	1,220.2	4.5%
Income protection insurance	1,582.4	5.4%	1,423.3	5.2%
Workers' compensation insurance	1,212.5	4.1%	1,053.9	3.9%
Motor vehicle liability insurance	3,039.2	10.4%	2,890.4	10.6%
Other motor insurance	5,624.1	19.2%	5,292.8	19.5%
Marine, aviation and transport insurance	359.6	1.2%	334.4	1.2%
Fire and other damage to property insurance	10,419.9	35.7%	9,787.5	36.0%
General liability insurance	1,120.5	3.8%	962.0	3.5%
Assistance	1,091.5	3.7%	998.8	3.7%
Health insurance	1,836.4	6.3%	1,589.3	5.8%
Non-proportional non-life reinsurance	149.3	0.5%	161.4	0.6%
Other	1,516.7	5.2%	1,481.5	5.4%
Total	29,224.7	100.0%	27,195.4	100.0%

Table 3 – Gross premiums written per segment, Gjensidige Forsikring Group

NOK millions	Gross premiums written 2021	Per cent of total	Gross premiums written 2020	Per cent of total

General Insurance Private	10,485.6	33.2%	9,807.1	33.5%
General Insurance Commercial	10,740.7	34.0%	9,477.0	32.4%
General Insurance Denmark	6,150.7	19.5%	6,109.0	20.9%
General Insurance Sweden	1,747.7	5.5%	1,653.4	5.6%
General Insurance Baltics	1,256.4	4.0%	1,209.1	4.1%
Pension	1,026.5	3.3%	913.8	3.1%
Corporate Center/reinsurance	158.7	0.5%	123.9	0.4%
Total	31,566.3	100.0%	29,293.4	100.0%

Managing insurance risk

Management of insurance risk is described in chapter "Creating added value in Gjensidige" and subchapter "Good corporate governance."

Risk mitigation

Insurance risk is mitigated through several arrangements, like for instance reinsurance and hedging of inflation.

Reinsurance

Gjensidige Forsikring ASA buys reinsurance as a protection against catastrophic events (such as windstorms) and large individual claims. The reinsurance programme is mainly bought to protect the Group's equity capital. Gjensidige purchases almost exclusively non-proportional reinsurance contracts with sufficiently high retentions for coverage of relatively few, large losses. Subsidiaries are reinsured by Gjensidige Forsikring ASA, and the subsidiaries' reinsurance exposure is included in the reinsurance programme for the Gjensidige Forsikring ASA. The maximum retention level per loss/event for the Group, approved by the Board, was NOK 500 million in 2021, unchanged from 2020. The reinsurance program for 2021 is placed within this limit, where the general retention per loss/loss occurrence is NOK 100 million. For catastrophe events such as natural perils the retention is NOK 200 million. For some insurance risks Gjensidige purchases reinsurance coverage that will reduce the retention level to under 100 million. Decisions concerning the reinsurance programme are based on an analysis of exposure, claims history, Gjensidige's internal model simulations and Gjensidige's capitalization. As a general requirement, all reinsurers need to be rated "A- "or better by

		s, Gjensidige Forsikring ASA
--	--	------------------------------	--	--	--

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Standard & Poor's (or the equivalent from other rating agencies) when entering into a contract with Gjensidige.

Hedging of inflation rate for Danish workers' compensation Gjensidige is exposed to the risk of increased inflation on most of its technical provisions. Increased inflation will result in higher future claim payments than earlier expected. A large part of this inflation risk is related to Danish workers' compensation, which is hedged through inflation swaps.

Risk sensitivity

Sensitivity tests are performed in order to show how different risks impact the profit or loss for the year, and thereby impact the equity at the year-end, please see table 4. Combined Ratio (CR) is the key measure of profitability for the general insurance business. The calculations show the effect of a change of one per cent in CR, which can be caused by both premium risk and reserve risk. Premium risk related to changes in loss frequency and severity of claims is also shown. Note that tax impact is not included in the calculations. Changes in inflation assumptions will mainly affect the claims provisions (reserve risk) but is counteracted by inflation swaps.

Table 4 – Potential loss based on different sensitivities

	Gjensidige Forsikring Group		Gjensidige Forsikring ASA
NOK millions	2021	2020	2021	2020
Change in CR (1%-point)	302.2	280.7	279.0	259.8
Change in loss frequency (1%-point)	2,728.0	2,275.6	2,707.2	2,254.1
Change in severity of claims (+10%)	1,486.9	1,337.2	1,397.5	1,260.5

Changes in the composition of the insurance portfolio may have an impact on the effect of the changes in the frequency and severity of claims.

Life insurance

Risk description

The Gjensidige Forsikring Group is exposed to life insurance risk through products sold in Gjensidige Pensjonsforsikring AS (GPF). GPF has a relatively large risk appetite within occupational defined contribution plans and private savings, moderate risk appetite within collective disability and survivor benefits and individual disability plans and low risk appetite

within capital-intensive and complicated products (paid-up defined benefit policies). In order to describe life insurance risk, the most important components are elaborated below, and these are; mortality, longevity, disability, catastrophe, lapse and expense risk.

Mortality risk

Mortality risk is the risk that actual mortality rates are higher than expected. It is defined as a permanent increase in mortality rates for all ages. Higher mortality rates will result in higher claim payments to the surviving spouse or children. Mortality risk in Gjensidige Pensjonsforsikring AS is low because there is a limited amount of policies covering mortality risk. In addition, mortality rates are low, so increased mortality will have limited impact. This means that increased mortality is not the dominant risk for Gjensidige Pensjonsforsikring AS, but the risk of decreased mortality; longevity risk.

Longevity risk

Longevity risk is the risk that actual mortality rates are lower than expected. Lower mortality will result in a higher total of pension payments for guaranteed products. The company cannot charge additional premium for contractual periods previously entered into. The risk for the company is that the provisions that shall cover all future claims are insufficient.

Gjensidige Pensjonsforsikring AS is especially exposed to longevity risk linked to the paid-up policies, where Gjensidige Pensjonsforsikring AS is liable to pay a defined benefit until death or other agreed time.

Disability risk

Disability risk is the risk that actual disability is higher than expected and/or the recovery is lower than expected. Higher disability rates, but also lower recovery rates will increase the claim payments. Both individual and collective disability products expose Gjensidige Pensjonsforsikring AS to disability risk. Apart from lapse risk, disability risk is one of the major insurance risks for Gjensidige Pensjonsforsikring AS.

Catastrophe risk

Catastrophe risk is defined as the risk of an immediate increase in mortality due to a catastrophic event. Mortality risk is in general low, and the scenario for catastrophe risk will have a very small impact on Gjensidige Pensjonsforsikring AS' portfolio.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021 Gjensidige Forsikring Group	136 137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Lapse risk

Lapse risk is the risk of an increase in lapse rates, i.e. the risk of an increase in customers leaving the company. This is mainly relevant in Solvency II aspects, because Solvency II takes into account expected future profit. Lapse risk reflects the risk of a potential reduction of the expected future profit if customers leave the company. Lapse risk is mainly related to unitlinked products and represents an important risk for the company in Solvency II. However, should a large number of customers choose to leave the company, the effect on the capital position will be limited. Reduced expected future profit will lead to a reduction in eligible own funds, but will be offset by a lower capital requirement.

Expense risk

Expense risk is the risk of actual expenses being higher than expected. The risk is related to the administration result which is the expected administration income minus the expected expenses for the whole lifetime of the products that fall within the contract boundary.. For some products, the company cannot increase the administration fee if even the expenses should increase (e.g. guaranteed paid-up policies). For other products, the company can increase the administration fee for the future and thereby reduce the losses.

Risk exposure

Gjensidige Pensjonsforsikring AS offers several disability pension products and for this reason disability risk is a material risk. In addition, longevity risk is a substantial risk because of the portfolio of paid-up policies. If risk is measured according to Solvency II principles, then the lapse risk is the dominating risk. This is the case in Solvency II because expected future profit is accounted for.

Risk concentration

Life insurance consists of policies in the Norwegian market. The portfolio derives mainly from small and medium-sized commercial customers all over the country and in different industries. Risk concentration is therefore considered to be limited.

Management of insurance risk is described in chapter "Creating added value in Gjensidige" and subchapter "Good corporate governance."

Financial risk

Risk description

Financial risk is the risk of experiencing losses due to changes in macroeconomic conditions and/or changes in financial asset values and liabilities. Gjensidige is exposed to these types of risk through the Group's investment activities. The risk is managed at the aggregate level and handled through the guidelines for asset management and investment strategies, which have been drawn up for Gjensidige Forsikring ASA and its subsidiaries. The primary purpose of the investments is to support the insurance business by securing the value of insurance liabilities against fluctuations in market variables. Funds beyond this will be invested to help achieve the Group's overall profitability goals, with a controlled downside risk.

Investments for general insurance and life insurance are managed separately. Financial risk related to general insurance and life insurance is described separately where appropriate.

The investment portfolio for general insurance is split into two parts: a match portfolio and a free portfolio. The match portfolio is intended to correspond to the Group's technical provisions in order to reduce interest rate risk, currency risk and to some extent inflation risk. It is invested in fixed-income instruments with a duration matched to the duration of the technical provisions. The free portfolio consists of various assets. The allocation of assets in this portfolio must be seen in relation to the Group's capitalization and risk capacity, as well as the Group's risk appetite at all times.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Table 5 – Asset allocation general insurance

	2021 NOK		2020 NOK

		millions Per cent		millions Per cent
Match portfolio
Fixed income – short duration 6	4,837.5	8.1%	4,948.9	8.4%
Bonds at amortised cost	15,489.1	25.9%	15,360.2	26.1%
Current bonds 1	16,094.5	26.9%	16,071.5	27.3%
Match portfolio total	36,421.0	60.9%	36,380.6	61.8%
Free portfolio
Fixed income – short duration 6	4,909.3	8.2%	4,987.0	8.5%
Other bonds 2	4,067.7	6.8%	5,187.6	8.8%
High Yield bonds 3	1,226.1	2.1%	402.3	0.7%
Convertible bonds 3	1,325.7	2.2%	1,680.8	2.9%
Current equities 4	3,328.2	5.6%	2,390.3	4.1%
PE funds	1,439.8	2.4%	1,206.3	2.0%
Properties	6,018.0	10.1%	5,128.5	8.7%
Other 5	1,067.9	1.8%	1,524.0	2.6%
Free portfolio total	23,382.7	39.1%	22,506.8	38.2%
Investment portfolio total	59,803.8	100.0%	58,887.4	100.0%

¹ The item includes the market value of the interest rate hedge in Denmark. Investments include mortgage, sovereign and corporate bonds, investment grade bond funds and loan funds containing secured debt.

² The item includes investment grade, emerging market debt (EMD) and current bonds. Investment grade bonds and EMD are investments in internationally diversified funds that are externally managed.

3 Investments in internationally diversified funds that are externally managed. 4 Investments mainly in internationally diversified funds that are externally managed. The equity risk exposure is reduced by NOK 310.9 million due to derivatives. ⁵ The item includes paid-in capital in Gjensidige Pensjonskasse, hedge funds and commodities. ⁶ The content of these items is identical to the items previously named Money market. The name change is related to implementation of EU regulation 2017/1131 on money market funds in Norwegian law. The regulation entails a strict definition of money market instruments and, although it concerns funds, it is expected to restrict what can be labelled Money market.

Gjensidige Pensjonsforsikring AS manages several portfolios including unit-linked portfolio, paid-up policy portfolio, other group policy portfolio and company portfolio. Gjensidige Pensjonsforsikring AS does not carry investment risk for the unit-linked portfolio. The other

portfolios expose the Company's equity to risk.

Table 6 – Asset allocation Gjensidige Pensjonsforsikring AS, excluding the unit-linked portfolio

NOK millions	2021	2020
Fixed income – short duration 6	1,660.2	1,493.4
Bank deposits	62.6	167.1
Loan and receivables	5,902.5	5,718.7
Current bonds	271.7	84.8
Equities	30.8	3.7
Properties	1,194.3	1,036.4
Total	9,122.1	8,504.1

⁶ The content of these items is identical to the items previously named Money market. The name change is related to implementation of EU regulation 2017/1131 on money market funds in Norwegian law. The regulation entails a strict definition of money market instruments and, although it concerns funds, it is expected to restrict what can be labelled Money market.

Risk exposure

Within market risk the largest risks are spread risk and equity risk for Gjensidige Forsikring Group and Gjensidige Forsikring ASA. Holdings in related undertakings are in general treated as equity risk in Gjensidige Forsikring ASA, while the risk is fully consolidated for Gjensidige Forsikring Group. Consequently, equity risk is greatest for Gjensidige Forsikring ASA. The investments in property through Oslo Areal AS contribute to property risk as at 31. December. Gjensidige Forsikring and AMF Pensionsförsäkring AB have entered into an agreement for the sale of Oslo Areal. The transaction was closed in January 2022. There is also some currency risk, while the interest rate risk and concentration risk have a small contribution to the total risk exposure.

Spread risk

Spread risk is the risk related to the values of assets, liabilities and financial instruments due to changes in the level or volatility of credit spreads over the risk-free interest rate term structure. It is the fixed-income portfolio that is exposed to spread risk.

The tables below show allocation of the fixed-income portfolio per sector and per rating category at year-end in 2021 and 2020. Investments in fixed-income funds are not included in the tables.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Table 7 – Allocation of the fixed-income portfolio per sector

	Gjensidige Forsikring Group		Gjensidige Forsikring ASA
	2021	2020	2021	2020
Government bonds	20.3%	19.3%	18.9%	17.7%
Corporate bonds	77.8%	80.7%	79.5%	82.3%
Structured notes	1.0%		0.5%
Collateralised securities	0.9%		1.1%
Total	100.0%	100.0%	100.0%	100.0%

Table 8 – Allocation of the fixed-income portfolio per rating category

		Gjensidige Forsikring Group		Gjensidige Forsikring ASA
	2021	2020	2021	2020
AAA	30.3%	33.6%	31.4%	34.6%
AA	13.3%	13.9%	13.3%	14.8%
A	17.4%	17.6%	14.6%	15.2%
BBB	16.6%	12.4%	16.6%	12.1%
BB
B
CCC or lower
Not rated	22.4%	22.6%	24.1%	23.4%
Total	100.0%	100.0%	100.0%	100.0%

Issuers without a rating from an official rating company are mainly investments in the Norwegian fixed-income portfolio. These are mainly investments in Norwegian savings banks, municipalities, property companies and Norwegian power producers and distributors.

Equity risk

Equity risk is the risk related to the values of assets, liabilities and financial instruments as a result of changes in the level or volatility of market prices of equities. For both the Gjensidige Forsikring Group and Gjensidige Forsikring ASA the equity exposures are mainly investments in Norwegian equity funds and internationally diversified funds, with the majority focusing on developed markets. There are also investments in several private equity funds with exposure mainly in the Nordic region.

The equity portfolio has no significant exposures in single shares. The largest equity exposures are presented in Note 14.

Property risk

Property risk is the risk related to the value of assets, liabilities and financial instruments due to changes in the level or volatility of market prices of property.

As at 31. December Gjensidige Forsikring ASA has a 50 per cent share in Oslo Areal AS, which is fully consolidated in the solvency calculations. The Group has in addition a part of the portfolio invested in property funds.

Interest rate risk

Interest rate risk is the risk related to the value of assets, liabilities and financial instruments due to changes in the term structure of interest rates or interest rate volatility. For both the Gjensidige Forsikring Group and Gjensidige Forsikring ASA the interest rate risk is small as the maturity of the fixed income portfolio is aligned with the insurance obligations. For the Group, there is a further reduction in interest rate risk as the interest rate exposure in the non-life and life insurance business is in opposition to each other.

Figure 5a shows the expected pay-out pattern for the premium and claims provisions for the general insurance operation as at year-end 2021 and 2020, respectively.

Figure 5a – Payout pattern insurance liabilities, Gjensidige general insurance

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Figure 5b shows the corresponding pay-out pattern for Gjensidige Forsikring ASA. The average duration for Gjensidige Forsikring ASA is similar to that of the general insurance operation.

Figure 5b – Payout pattern insurance liabilities, Gjensidige Forsikring ASA

As mentioned, the match portfolio is intended to correspond to the Gjensidige Forsikring Group's technical provisions in order to reduce interest rate risk. There is also some interest rate risk in the free portfolio.

The table below shows the maturity profile of the fixed-income portfolio for general insurance. Derivatives are not included in the table.

Table 9 – Maturity profile (numbers of years) fixed-income portfolio

NOK millions	2021	2020
Maturity
0-1	11,124.0	10,500.8
1-2	8,726.8	5,922.8
2-3	4,745.3	8,060.3
3-4	4,212.1	3,697.6
4-5	4,264.5	3,352.8
5-6	3,108.5	3,327.1
6-7	2,108.9	2,946.1
7-8	2,377.0	1,253.3
8-9	2,270.4	1,991.8
9-10	890.8	2,896.1
>10	3,959.8	4,684.2
Total	47,788.1	48,632.8

Gjensidige Pensjonsforsikring has paid-up defined benefit policies and other products with a guaranteed annual return. The current interest rate level is below the guaranteed interest rate. So far Gjensidige Pensjonsforsikring has had a satisfactory return, but as the investment portfolio matures, reinvestment will be performed at today's interest rate levels, with lower expected returns. A further reduction in interest rates will make it more difficult to find investments with a sufficient return to achieve the annual guaranteed return.

Following the financial crisis in 2008 efforts have been made to reform the IBOR (Interbank Borrowing Rates) and replace it with alternative reference rates. Changes in reference rates can affect measurement, hedge accounting and note information, primarily for financial instruments as well as discounting of insurance liabilities.

Gjensidige has little outstanding of financial instruments and insurance products that are being priced using LIBOR as reference but are invested in loan funds in UK and USA, where LIBOR is the reference rate. New reference rates, SONIA and SOFR are already implemented in the market. The transition has largely been smooth, since market participants have agreed on standards for incorporating the new interest rates in the loan documentation.

Regarding EURIBOR and the Scandinavian IBORs the transition to new reference rates is probably not as imminent. No date has been set for the transition, but it may be that the change that has taken place in the leading markets (USD and GBP) means that a transition is forcing itself here as well. In all new agreements where either NIBOR, STIBOR, EURIBOR or CIBOR are used as reference rate, mechanisms to secure potential transitions to alternative reference rates are embedded. For the time being there are no plans to terminate NIBOR. However, the control mechanism regarding the banks' quotation of the NIBOR rate is more formalized compared to the standards in 2008. Nor the Euro area, Sweden or Denmark have concluded termination of their respective IBOR rates. Gjensidige is attentive to the development.

The risk exposure related to financial instruments and insurance liabilities as a consequence of the transition is considered to be low. The IBOR reform will not change the risk management strategy.

Foreign exchange risk

Foreign exchange risk is the risk related to the value of assets, liabilities and financial instruments due to changes in currency exchange rates.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021 Gjensidige Forsikring Group	136 137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Gjensidige Forsikring Group underwrites insurance in the Scandinavian and Baltic countries, and thus has insurance liabilities in the corresponding currencies. The foreign exchange risk, at both group and company level, is generally hedged by matching technical provisions with investments in the corresponding currency.

Counterparty default risk

Counterparty default risk reflects possible losses due to unexpected default of the counterparties and debtors of Gjensidige Forsikring Group.

The Gjensidige Forsikring Group and Gjensidige Forsikring ASA are exposed to counterparty risk through the investments in securities and derivatives, cash at banks, and through receivables from intermediaries and reinsurance contracts.

Liquidity risk

Liquidity risk is defined as the inability to meet payments when due, or by the need to realise investments at a high cost to meet payments. For most general insurers, liquidity risk is quite limited. Premium income is paid up front, and claims are paid out at a later stage. Future payments are not based on contractual payment dates, but rather on when claims arise and how long the claims handling takes. This will result in a positive net cash flow under normal circumstances. Large net outflows would generally only arise as a result of acquisitions or the recapitalisation of subsidiaries. In addition, liquidity needs may arise in connection with margin payments for financial instruments. In the event of a large claim or catastrophic event, the payments will take place sometime after the event, and the reinsurers will cover most of the cost within a short time of the payments having been made to the claimants. In an extreme scenario, reinsurers could fail to honour their obligations after a catastrophic event.

Risk concentration

The risk concentration regarding financial investments is defined as risk regarding the accumulation of exposures within the same geographical area, industry sector etc.

For both the Gjensidige Forsikring Group and Gjensidige Forsikring ASA sector concentration of fixed-income securities are regulated by the guidelines for credit exposure, which is a part of the Group Credit policy. The guidelines define a number of industry sectors together with allocation limits to each sector in order to ensure diversification in the total portfolio. The current allocation of fixed-income securities meets the guidelines requirement.

The equity investments in Gjensidige Forsikring ASA are mainly investments in internationally diversified funds. Investments are both in developed and emerging markets, together with funds in the Norwegian market. The degree of diversification, both for sector and geographical concentration, is thus dependent of the composition in the fund structure.

Geographical concentrations of fixed-income securities in the match portfolios of the Gjensidige Forsikring Group and Gjensidige Forsikring ASA are mainly proportional to the amount of technical provisions in the various countries, in which business is conducted. Geographical concentration of fixed-income securities in the free portfolio is monitored by using a look-through approach in respect of the fixed-income funds. Fixed-income funds consist of internationally diversified funds in asset classes like investment grade, high yield and convertible bond funds.

Each counterparty shall have a credit limit defined in NOK kroner applicable to the Gjensidige Forsikring Group. The guidelines for establishment of the Group's credit limits are regulated by the Group Credit policy. The purpose is to ensure that the loss risk in the Group do not exceed the risk appetite. It is continuously monitored that the exposure do not exceed the credit limits.

The fixed income – short duration portfolio mainly consists of Norwegian bonds and certificates, thereby ensuring liquid assets are held in the portfolio.

Managing financial risk

Management of financial risk is described in chapter "Creating added value in Gjensidige" and subchapter "Good corporate governance."

Risk mitigation

The Gjensidige Forsikring Group and Gjensidige Forsikring ASA use several risk mitigation techniques. The match portfolio is intended to correspond to the Group's technical provisions in order to reduce interest rate risk, currency risk and to some extent inflation risk. It is invested in fixed-income instruments with a duration matched to the duration of the technical provisions.

An overview of other risk mitigation techniques is given below.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021 Gjensidige Forsikring Group	136 137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Hedging exchange rate exposure

Limits have been defined for managing currency risk. Financial derivatives, primarily forward contracts, are used in the ongoing management to keep the exposure within the defined limits. For investments in foreign subsidiaries and branches, a strategy has been implemented with the purpose of minimizing effects on surplus capital as a consequence of changes in the foreign exchange rates. This is implemented by using internal loans between the parent company and branches and use of forward contracts and/or options.

Hedging inflation exposure

As described under insurance risk, inflation risk related to Danish workers' compensation is for the most part hedged through inflation swaps.

Hedging interest rate exposure in Denmark

Interest rate risk is a significant risk factor associated with the Workers' Compensation business in Denmark due to the high volume and duration of technical provisions related to the product. Most of the interest rate risk exposure in insurance liabilities is hedged using interest rate swaps. The advantage of using interest rate swaps in contrast to bonds is that instruments with desired duration are available in the Danish swap market, but not in the bond market.

Hedging equity exposure

Equity exposure is hedged to a certain extent by the use of put options and futures.

Counterparty default risk – OTC derivatives

The over-the-counter (OTC) derivatives are covered by ISDA Master agreements, which set out standard terms that apply to all the transactions entered between parts. The Master Agreement allows parties to limit their financial exposure under OTC transactions on a net basis. The Credit Support Annex (CSA) is a legal document that defines the rules under which collateral is posted or transferred between swap counterparties to mitigate the credit risk arising from derivative positions. As at 31. December Gjensidige has not pledged collateral for OTC derivatives.

Risk sensitivity

Sensitivity analysis is performed at the Gjensidige Group level. The sensitivity analysis shows the effect in the accounts of different predefined scenarios. As the effects are on the values in the accounts, assets measured at amortized cost are disregarded. The unrealized excess value will be affected by changes in the interest rate and/or the credit spread. The following assumptions are made for the different risk drivers:

Equities: It is assumed that the market value of equities decreases with 10 per cent. It includes stress on all equities including hedge funds and private equity.
Interest rate: It is assumed that the yield curve increases 100 bps. The effect is for assets only, except for liabilities that are discounted in the accounts.
Credit spread: It is assumed a 100 bps increase in the credit spreads.
Property: It is assumed 10 per cent decrease in the property value.

The table below shows the effect of the different sensitivities.

Table 10 – Potential loss based on different sensitivities

		Gjensidige Forsikring Group 2021 2020
NOK millions
Equity down 10%	(554.2)	(458.9)
Interest rate up 100 bps	(344.5)	(409.7)
Spread level up 100 bps	(773.7)	(648.5)
Properties down 10%	(797.5)	(627.3)

Operational risk

The risk that potential events or circumstances may arise and have a financial consequence and / or loss of reputation. Operational risk can result from human error, system weaknesses, process errors or external events. Management of operational risk is described in chapter "Creating added value in Gjensidige" and subchapter "Good corporate governance."

Business and strategic risk

The risk of financial losses or lost opportunities due to the inability to establish and implement business plans and strategies, make decisions, allocate resources or respond to changes in the environment.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Management of strategic risk and business risk is described in chapter "Creating added value in Gjensidige" and subchapter "Good corporate governance".

Climate risk

Climate risk is risk related to changes in climate. Management of climate risk and business risk is described in chapter "Creating added value in Gjensidige" and subchapter "Climate and the environment ".

Capital management

Gjensidige shall have a capitalization that is adapted to the Group's strategic targets and risk appetite at all times. The Group shall maintain its financial flexibility and at the same time exercise a stringent capital discipline that supports the return on equity target. Any future excess capital will be distributed to the shareholders over time.

The target zone for the solvency ratio is between 150 per cent and 200 per cent. This target applies to both the regulatory approved model (legal perspective) and the model with its own calibration (own partial internal model). Solvency ratio levels shall support an 'A' rating from Standard & Poor's, stabilize regular dividends over time, ensure financial flexibility for smaller acquisitions and organic growth that is not funded through retained earnings, and provide a buffer against regulatory changes.

All subsidiaries will be capitalized in line with the respective regulatory requirements, while capital in excess of the requirements will, as far as possible, be held in the parent company Gjensidige Forsikring ASA. The Group will make use of all forms of Tier 1 and Tier 2 capital, including subordinated debt, in a responsible and value-optimizing manner and in line with the limits set by regulators and rating agencies.

Requirements for Gjensidige's capitalisation are specified in a capital management policy approved by the Board. A department under the CRO is responsible for the capital management and must ensure that the requirements in the capital management policy are followed.

In 2018, Gjensidige received an approval by the Financial Supervisory Authorities (FSA) to use a partial internal model to calculate the regulatory solvency capital requirement. The approved partial internal model is more conservative than the model Gjensidige applied for. The FSA required the use of the standard formula to calculate storm risk, and the standard formula's correlation between market and underwriting risk. The FSA's requirements also include somewhat higher capital requirement for market and underwriting risk compared with Gjensidige's initial application. Gjensidige believes that the partial internal model, without the imposed conditions from the FSA, provides a better presentation of the risk, and will continue to make efforts to get Gjensidige's own version of the partial internal model approved.

Gjensidige is well capitalized and satisfies the target zone, both by the use of the approved partial internal model and by its own partial internal model.

The Group's solvency ratios at the end of 2021 were calculated to be:

190 per cent based on Gjensidige's approved partial internal model
233 per cent based on Gjensidige's own partial internal model

The capital position is calculated based on Gjensidige's understanding of requirements and principles given in laws and prescriptions.

Figure 6 – Capital development from 2020 to 2021

The solvency II balance

deviates from accounting principles.

principles are:

• Intangibles are valued to zero under Solvency II

provision)

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

The guarantee scheme provision is treated as a liability under Solvency II, while it is treated as equity according to accounting principles
Different valuation of deferred tax as a result of the differences above

According to Solvency II principles, technical provisions are the sum of a best estimate and a risk margin. For non-life insurance and health insurance, the best estimate for technical

provisions can be divided into premium provisions and claims provisions. The tables below
show the technical provisions for Gjensidige Forsikring ASA and the Gjensidige Forsikring
Group in accordance with Solvency II principles and accounting principles.

Table 11a – Technical provisions for Gjensidige Forsikring Group

	2021				2020
NOK millions	Accounting (IFRS)	Solvency II	Difference Accounting (IFRS)		Solvency II	Difference
Claims provisions for non-life and health insurance	28,895.0	27,091.9	(1,803.0)	28,534.3	26,105.5	(2,428.8)
Premium provisions for non-life and health insurance	12,187.2	3,119.8	(9,067.4)	11,433.6	3,556.1	(7,877.5)
Technical provisions for life insurance (best estimate)	51,231.7	48,651.8	(2,579.8)	42,250.5	40,762.6	(1,487.9)
Risk margin		2,764.2	2,764.2		2,524.1	2,524.1
Total technical provisions	92,313.9	81,627.8	(10,686.1)	82,218.5	72,948.4	(9,270.1)

Table 11b – Technical provisions for Gjensidige Forsikring ASA

NOK millions

Total technical provisions
Risk margın
Premium provisions for non-life and health insurance
Claims provisions for non-life and health insurance

2021
Accounting (NGAAP)	Solvency II	Difference	Accounting (NGAAP)	Solvency II	Difference
28,250.7	26,453.2	(1,797.5)	28,097.3	25,669.8	(2,427.5)
11,493.2	2,628.8	(8,864.4)	10,882.0	3,220.2	(7,661.8)
	1,436.6	1,436.6		1,426.6	1,426.6
39,743.9	30,518.7	(9,225.2)	38,979.3	30,316.6	(8,662.7)
					2020

Claims provisions for non-life and health insurance are discounted in Solvency II, while the claims provisions (except claims provisions for workers' compensation product in Denmark and bodily injuries for motor insurance in Sweden and Baltics) are undiscounted in the accounting figures. The claims provision in Solvency II does not include planned run-off gains, as the accounting claims provisions. All other assumptions for Solvency II purposes are identical with the accounting assumptions.

Premium provisions for non-life and health insurance are calculated as the current value of future cash-flows for unexpired risk for contracts within contract boundaries. Premium provisions according to accounting principles correspond to the unexpired proportion of premiums written for contracts in force at the valuation date, where no deductions are made for any expenses before the written premiums are accrued. The practical consequence of this difference is mainly that future profit for the contracts Gjensidige is liable for are included as eligible capital in the Solvency II balance sheet. As the premium provisions according to Solvency II are discounted this will also result in a difference.

Technical provisions for life insurance are based on a market value approach according to Solvency II principles, where future cash-flows are discounted using the Solvency II interest rate curve. This is different from accounting principles where the guaranteed interest rate is used. Also, the main difference between accounting and Solvency II principles, for index- and unit-linked insurance, is the inclusion of future profits in Solvency II.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

A risk margin is added to the technical provisions according to Solvency II principles. The risk margin is calculated as the cost of holding the capital needed to cover the solvency capital requirement through the entire run-off, if all business was terminated.

Note that the Solvency II interest rate curves with no volatility adjustment are used for determining the Solvency II technical provisions, and that no transitional measures are used for the calculations.

Eligible capital

Eligible capital to meet the Solvency Capital Requirement is the difference between assets and liabilities.

Table 12 – Eligible capital to cover the Solvency Capital Requirement

Gjensidige Forsikring Group Gjensidige Forsikring ASA

	Gjensidige Forsikring Group		Gjensidige Forsikring ASA
NOK millions	2021	2020	2021	2020
Assets over liabilities according to Solvency II principles (insurance)	22,860.7	23,352.1	22,320.7	22,984.6
Own shares	(0.1)	(0.0)	(0.1)	(0.0)
Proposed dividend	(3,850.0)	(4,900.0)	(3,850.0)	(4,900.0)
Subordinated liabilities (insurance)	3,630.0	2,525.9	3,630.0	2,224.0
Basic own funds	22,640.6	20,977.9	22,100.6	20,308.6
Total eligible own funds to meet the SCR	22,640.6	20,977.9	22,100.6	20,308.6

Eligible own funds are divided into three capital groups according to Solvency II regulations. Gjensidige has mainly tier 1 capital, which is considered to be capital of best quality. Of the total amount of tier 1 capital, NOK 1,212 million comes from the restricted tier 1 category. This is the market value of bonds issued by Gjensidige Forsikring ASA (nominal amount of NOK 1,200 million).

The tier 2 capital for the Gjensidige Forsikring Group and Gjensidige Forsikring ASA consists of natural perils capital and subordinated liabilities. Natural perils capital can only be used to cover claims related to natural perils but can in an insolvent situation also be used to cover other liabilities. The subordinated liabilities comprise of bonds issued by Gjensidige Forsikring ASA (nominal amount of NOK 2,400 million). The market value of these bonds is NOK 2,418 million per 31.12.2021.

Gjensidige has no tier 3 capital.

Details regarding the hybrid capital are specified in note 18.

Table 13 – Eligible own funds to meet the Solvency Capital Requirement, split by tiers

	Gjensidige Forsikring Group		Gjensidige Forsikring ASA
NOK millions	2021	2020	2021	2020
Tier 1	17,393.3	16,854.1	16,853.3	16,486.6
Of this; Restricted tier 1 capital	1,212.0	1,015.0	1,212.0	1,015.0
Tier 2	5,247.3	4,123.8	5,247.3	3,821.9
Of this; Natural perils capital	2,829.3	2,612.9	2,829.3	2,612.9
Of this; Subordinated liabilities	2,418.0	1,510.9	2,418.0	1,209.0
Total eligible own funds to meet SCR	22,640.6	20,977.9	22,100.6	20,308.6

Table 14 – Eligible own funds to meet Minimum Capital Requirement, split by tiers

	Gjensidige Forsikring Group		Gjensidige Forsikring ASA
NOK millions	2021	2020	2021	2020
Tier 1	17,393.3	16,854.1	16,853.3	16,486.6
Of this; Restricted tier 1 capital	1,212.0	1,015.0	1,212.0	1,015.0
Tier 2	1,170.1	1,031.0	969.5	876.6
Total eligible basic own funds to meet MCR/minimum consolidated group SCR	18,563.4	17,885.1	17,822.8	17,363.2

Regulatory capital requirement

The regulatory requirement is based on the approved partial internal model.

The solvency capital requirement is based on different sources of risks. The main risks for Gjensidige Forsikring ASA and Gjensidige Forsikring Group are non-life and health insurance risk and market risk. Non-life and health insurance risk is mainly related to uncertainty in insurance result for the next year (premium risk) and the risk of the claims provisions not being sufficient (reserve risk). Counterparty default risk and operational risk also contribute to the capital requirement. A diversification benefit is accounted for as all risks will not occur at the same time. The capital requirement is also adjusted for future tax benefit which would occur if a loss equal to the solvency capital requirement should occur. This tax benefit can only be accounted for if it is reasonable that the company is able to continue with its business after such a loss.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Table 15 – Regulatory Solvency Capital Requirement

Gjensidige Forsikring Group			Gjensidige Forsikring ASA
NOK millions	2021	2020	2021	2020
Capital available	22,640.6	20,977.9	22,100.6	20,308.6
Capital charge for non-life and health uw risk	9,321.2	8,721.9	9,089.9	8,564.9
Capital charge for life uw risk	2,051.9	1,449.7
Capital charge for market risk	7,687.6	6,623.4	6,950.7	5,999.7
Capital charge for counterparty risk	309.3	331.7	230.3	303.2
Diversification	(5,179.4)	(4,426.0)	(3,510.5)	(3,199.8)
Basic SCR	14,190.6	12,700.5	12,760.4	11,668.0
Operational risk	974.9	934.5	872.8	813.8
Adjustments (risk-reducing effect of deferred tax)	(3,268.9)	(3,037.6)	(2,861.3)	(2,742.2)
Total capital requirement	11,896.6	10,597.5	10,771.9	9,739.6
Solvency ratio	190.3%	198.0%	205.2%	208.5%

The capital requirement increases from 2020 to 2021 and is mainly due to the following:

Non-life and health insurance risk increases as a result of growth
Life insurance risk increases as a result of growth in the portfolio as well as a change in portfolio composition due to the introduction of individual pension account
Market risk increases as a result of increased exposure to property and equities, as well as increased market risk related to life insurance.

In addition to the Solvency Capital Requirement (SCR), there is a defined minimum level of capital. The latter is called Minimum Capital Requirement (MCR) for solo companies and minimum consolidated group Solvency Capital Requirement for insurance groups. If the capital falls below this level, the company or group will be prohibited to continue the business any further.

The minimum consolidated group SCR is the sum of the minimum capital requirement of the judicial entities belonging to the group. The minimum consolidated capital requirement for Gjensidige Forsikring Group is NOK 5,850 million, which constitute 49 per cent of the SCR.

Table 16 –			Regulatory Minimum Capital Requirement
------------	--	--	----------------------------------------

	Gjensidige Forsikring Group		Gjensidige Forsikring ASA
NOK millions	2021	2020	2021	2020
Total eligible own funds to meet the MCR/minimum consolidated group SCR	18,563.4	17,885.1	17,822.8	17,363.2
MCR/minimum consolidated group SCR	5,850.4	5,155.1	4,847.3	4,382.8
Capital surplus	12,713.0	12,730.1	12,975.4	12,980.4
MCR margin	317.3%	346.9%	367.7%	396.2%

Capital in excess

The regulatory capital surplus for the Gjensidige Forsikring Group, Gjensidige Forsikring ASA and subsidiaries are given in the table below.

Table 17 – Capital in excess of legal requirements

NOK millions	2021	2020
Gjensidige Forsikring Group	10,744.0	10,380.5
Gjensidige Forsikring ASA	11,328.8	10,568.9
ADB Gjensidige	117.3	263.2
Gjensidige Pensjonsforsikring AS	845.3	657.1
NEM Forsikring A/S	137.7

There are some restrictions on Gjensidige Forsikring ASA's and Gjensidige Pensjonsforsikring's ability to access or use the Group's assets, as well as settling its obligations. Group contributions added together with dividends must not exceed justifiable payment of dividend based on a company's financial strength and operations. Distributions from insurance companies must be within profit for the year. If it is desired to distribute more than this, then it has to be approved in advance by the Financial Supervisory Authority (FSA).

Changes in the Solvency II regulation

Several changes in the Solvency regulations have been suggested regarding the calculation of the capital requirement and eligible own funds. These changes are not expected to have any major impact on the capital position of Gjensidige based on Gjensidige's current balance sheet.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Stress test

The stress test for the Gjensidige Forsikring Group is defined in the Capital Management policy approved by the Board. The main purpose of the stress test is to demonstrate that there is sufficient capital even after extreme but possible negative events. The stress test is performed by summing up probable losses from the various areas of the business. Stress parameters for investments are chosen in order to reflect a loss probability of 1 in 200 on a quarterly basis. Diversification is accounted for by choosing diversified parameters. Tax effects are accounted for as a deferred tax asset would arise after a large financial loss.

The stress test is performed on a monthly basis for the Gjensidige Forsikring Group, including Gjensidige Pensjonsforsiking AS.

The outcome of the stress test at year-end 2021 and 2020 is presented below.

The stress test for 2021 shows a drop in the solvency ratio of 27.3 percentage points before and after stress.

Table 18a – Stress test financial assets 2021

NOK millions	Scenario	Decrease in value
Market risk		(4,113.2)
Insurance risk (life and non-life)		(1,024.6)
Tax	Positive effect of reduced tax	1,010.0
Reduction of capital requirement after stress Due to lower carrying amount		595.6
Pension liabilities	Salary, G-regulation, mortality	(90.7)
Reduction of surplus capital after stress		(3,622.9)
Effect on surplus capital
Available capital before stress		22,640.6
Capital requirement before stress		11,896.6
Surplus without buffer before stress		10,744.0
Surplus without buffer after stress		7,121.1
Solvency ratio after stress		163.0%
Solvency ratio before stress		190.3%

Table 18b – Stress test financial assets 2020

NOK millions	Scenario	Decrease in value
Market risk		(3,629.8)
Insurance risk (life and non-life)		(891.5)
Tax	Positive effect of reduced tax	914.7
Reduction of capital requirement after stress Due to lower carrying amount		568.4
Pension liabilities	Salary, G-regulation, mortality	(70.5)
Reduction of surplus capital after stress		(3,108.8)
Effect on surplus capital
Available capital before stress		20,977.9
Capital requirement before stress		10,597.5
Surplus without buffer before stress		10,380.5
Surplus without buffer after stress		7,271.7
Solvency ratio after stress		172.5%
Solvency ratio before stress		198.0%

The following assumptions apply for 2021:

The equity risk stress is 20 per cent. It includes stress on all equities including hedge funds, private equity and commodities.
Interest rate risk is calculated on a 100 bp change in the interest rates. It includes effect on both assets and liabilities. The interest rate scenario is the strictest of an interest rate increase or decrease.
The property stress is 10 per cent.
Credit spread risk: 0 per cent loss on government bonds and municipality bonds. 1 per cent increase in the credit spread for other bonds.
Insurance risk: For non-life and health insurance business the stress is based on 3 percentage points annual increase in combined ratio. For life insurance business the stress is based on 20 per cent annual increase in disability.
Tax effect: A loss equal to the stress scenario results in a tax benefit that will have a positive effect.

Annual report 2021 | 178

Content

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

4. Segment information

The group has six reportable segments, as described below, which offers different products and services within different geographical areas. The Groups reportable segments are identified based on the Group's internal reporting. The Group CEO holds regular meetings with its reporting managers for the different segments, concerning performance management, which focuses on future measures to ensure performance and deliveries. General insurance is the Group's core activity. General insurance is divided into five segments, mainly based on the customer's geographical placement. Other operational segments deliver products and services mainly to customers in Norway.

Description of the segments

General Insurance Private

The Private segment offers a wide range of general insurance products and services to private customers in Norway, and handles sales, customer services and claims settlements. General Insurance Commercial

The Commercial segment offers a wide range of general insurance products for commercial customers, agricultural customers and the public sector in Norway. The segment handles sales, customer service and claims settlement.

General Insurance Denmark

The Danish segment includes the Group's general insurance operations in the private, commercial and municipal markets in Denmark. The segment handles sales, customers and claims settlements.

General Insurance Sweden

The Swedish segment includes the Group's general insurance operations in the private and commercial markets in Sweden. The segment handles sales, customer service and claims settlements.

General Insurance Baltics

The Baltics segment includes the Group's general insurance operations in Lithuania, Latvia and Estonia, aimed at the private and commercial market. The segment handles sales, customer service and claims settlement.

Pension

The Pension segment offers defined contribution occupational pension schemes for businesses, in addition to individual pension savings agreements and disability pension. Pension is a priority area that helps to ensure that Gjensidige can be a complete supplier of insurance and pension products to private and commercial customers. The business contributes to stronger customer relations and loyalty among our general insurance customers.

Description of the segment's income and expenses

Segment income is defined as earned premiums for general insurance and administration fees, insurance income and management income etc. for Pension. Segment expenses are defined as claims incurred for general insurance and for Pension, operating expenses for all segments and net income from investments for Pension. The segment result is defined as the underwriting result for general insurance and the profit before tax expense for Pension.

1.1.-31.12.

		Segment income 2		Claims		Operating expenses		Net income from investments Segment result/profit/(loss)		before tax expense
1.1.-31.12.
NOK millions	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019
General Insurance Private	10,068.0	9,433.6	(5,787.5)	(5,450.7)	(1,327.2)	(1,225.5)			2,953.3	2,757.4
General Insurance Commercial	10,083.5	8,929.0	(6,930.5)	(5,943.9)	(915.3)	(888.4)			2,237.7	2,096.6
General Insurance Denmark	5,999.0	5,910.2	(4,113.1)	(4,250.2)	(861.0)	(859.5)			1,024.9	800.5
General Insurance Sweden	1,649.4	1,592.0	(1,257.3)	(1,209.9)	(294.9)	(306.0)			97.2	76.1
General Insurance Baltics	1,150.2	1,175.7	(894.0)	(767.2)	(333.8)	(340.7)			(77.7)	67.7
Pension	1,250.3	1,096.3	(755.3)	(674.5)	(312.9)	(291.1)	31.5	36.0	213.7	166.8
Eliminations etc. 1	205.8	123.2	(304.0)	(511.5)	(547.6)	(517.4)	2,996.1	1,282.4	2,350.4	376.7
Total	30,406.3	28,259.9	(20,041.8)	(18,808.0)	(4,592.7)	(4,428.7)	3,027.6	1,318.5	8,799.4	6,341.7

¹ Eliminations etc. consist of internal eliminations and other income and expenses not directly attributable to one single segment and large losses of NOK 239.4 million (431.1). ² There is no significant income between the segments at this level in 2021 and 2020.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

5. Shares in associates and joint ventures

NOK millions	Registered office	Interest held	Cost 31.12.2021	Carrying amount 31.12.2021	Cost 31.12.2020	Carrying amount 31.12.2020
Associates
Malling & Co Eiendomsfond IS ¹	Oslo, Norway	21.4 %	868.2	1,194.3	803.2	1,036.4
Interferens I ApS ²	Viborg, Denmark	54.8 %	86.6	86.6
Joint ventures
Oslo Areal AS	Oslo, Norway	50.0%	1,086.9	4,247.9	1,086.9	2,723.8
Total investments in associates and joint ventures			2,041.8	5,528.8	1,890.1	3,760.2
¹ In addition, the Investment option portfolio in Gjensidige Pensjonsforsikring AS holds a 32.3% share in the fund. ² Voting right is limited at 50%
NOK millions	Assets	Equity	Liabilities	Revenues	Profit/(loss)	Profit/(loss) recognised
For the whole company 2021
Associates - additional information
Malling & Co Eiendomsfond IS	4,546.7	4,473.8	72.9	109.6	100.2
Interferens I ApS	162.8	162.8			13.7
Joint ventures - additional information
Oslo Areal AS						1,523.3
Total investments in associates and joint ventures	4,709.5	4,636.6	72.9	109.6	113.9	1,523.3
For the whole company 2020
Associates - additional information
Malling & Co Eiendomsfond IS	3,727.4	3,618.2	109.2	103.5	96.6
Joint ventures - additional information
Oslo Areal AS						338.8
Total investments in associates and joint ventures	3,727.4	3,618.2	109.2	103.5	96.6	338.8

Associates


Joint ventures


¹ In addition, the Investment option portfolio in Gjensidige Pensjonsforsikring AS holds a 32.3% share in the fund. ² Voting right is limited at 50%

For the whole company 2021
Associates - additional information


Joint ventures - additional information


For the whole company 2020
Associates - additional information

Joint ventures - additional information

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

For the whole company
Joint ventures and associates - additional information
NOK millions	Interferens I ApS
Income statement - items


Statement of financial position - items







Receivables from joint ventures
Oslo Areal AS

	2021		2020
		Malling & Co		Malling & Co
NOK millions	Interferens I ApS	Eiendomsfond IS	Oslo Areal AS	Eiendomsfond IS	Oslo Areal AS
Income statement - items
Operating income			466.5		505.5
Profit/(loss) after tax expense	13.7	100.2	3,046.7	96.6	677.7
Statement of financial position - items
Current assets		0.5	28.1	0.7	41.6
Fixed assets	162.8	1,416.6	13,651.3	1,416.6	11,045.3
Receivables from related parties		3,129.1		2,309.9
Cash and cash equivalents		0.5	57.9	0.2	129.1
Other liabilities		72.9	1,771.3	15.9	1,037.0
Liabilities to related parties			3,470.3	93.2	4,731.5
Equity	162.8	4,473.8	8,495.8	3,618.2	5,447.5

NOK millions	2021	2020
Gjensidige's share of loan	1,735.1	2,365.6
Total receivables on joint ventures	1,735.1	2,365.6

Percentage of votes held is the same as percentage of interest held for all investments if not stated otherwise.

Gjensidige and AMF Pensionsforsäkring (AMF) owns Oslo Areal AS as a joint venture (50/50), as each party has rights to its share of the net assets of the arrangement. The parties will make joint investments in the Norwegian real estate market through Oslo Areal. The

investment is recognised according to the equity method of NOK 1.1 billion at year end. Gjensidige Forsikring has granted a loan to Oslo Areal amounting to NOK 1.7 billion at year end. The loan is interest-bearing and total loan limit is NOK 4.0 billion.

Both Gjensidige and AMF sold their interests in Oslo Areal as at 12 January 2022. The loan was settled as at the same date.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

6. Net income from investments

NOK millions	2021	2020
Net income and gains/(losses) from investments in subsidiaries, associates and joint ventures
Net income from associates and joint ventures	1,523.3	338.8
Total net income and gains/(losses) from investments in subsidiaries, associates and joint ventures	1,523.3	338.8
Net income and gains/(losses) from buildings and other real
Owner-occupied properties
Net gains/(losses) from sale of owner-occupied properties		0.6
Impairment owner-occupied properties		0.1
Total net income and gains/(losses) from owner-occupied		0.7
Total net income and gains/(losses) from buildings and other		0.7
Net income and gains/(losses) from financial assets at fair value through profit or loss, designated upon initial recognition Shares and similar interests
Dividend income	11.0	7.8
Unrealised gains/(losses) from shares and similar interests	355.3	(202.2)
Realised gains/(losses) from shares and similar interests	523.0	649.5
Total net income and gains/(losses) from shares and similar	889.3	455.2
Bonds and other fixed-income securities
Net interest income/(expenses) from bonds and other fixed income-securities	150.4	267.8
Unrealised gains/(losses) from bonds and other fixed-income securities	176.3	(122.2)
Realised gains/(losses) from bonds and other fixed-income	(21.7)	427.8
Total net income and gains/(losses) from bonds and other fixed-income securities	304.9	573.4
Derivatives
Net interest income/(expenses) from derivatives	(72.2)	27.0
Unrealised gains/(losses) from derivatives	(242.9)	185.4
Realised gains/(losses) from derivatives	149.9	(604.4)
Total net income and gains/(losses) from derivatives	(165.2)	(391.9)

Total net income and gains/(losses) from financial assets at fair value through profit or loss, designated upon initial recognition

	2021	2020

	1,523.3	338.8
	1,523.3	338.8
eal

S		0.6 0.1
d		0.7
ther		0.7

1,029.1	636.7

NOK millions	2021	2020
Net income and gains/(losses) from bonds held to maturity
Net interest income from bonds held to maturity	0.8	1.0
Realised gains/(losses) from bonds held to maturity	(0.3)	(0.7)
Total net income and gains/(losses) from bonds held to	0.5	0.3
Net income and gains/(losses) from loans and receivables
Net interest income/(expenses) from loans and receivables	570.0	578.1
Net gains/(losses) from loans and receivables	47.9	21.9
Net gains/(losses) from changes in exchange rates on loans and receivables	61.9	9.6
Total net income and gains/(losses) from loans and	679.8	609.5
Net income and gains/(losses) from financial liabilities at amortised cost
Net interest income/(expenses) from subordinated debt	(42.4)	(41.5)
Total net income and gains/(losses) from financial liabilities at amortised cost	(42.4)	(41.5)
Net other financial income/(expenses) 1	(75.8)	(53.7)
Discounting of claims provision classified as interest expense	(28.8)	(11.4)
Change in discount rate claims provision	(58.2)	(161.0)
Total net income from investments	3,027.6	1,318.5
Specifications Interest income and expenses from financial assets and liabilities not recognised at fair value through profit or loss
Total interest income from financial assets not recognised at fair value through profit or loss	570.8	575.6
Total interest expenses from financial assets not recognised at fair value through profit or loss	(42.4)	(41.5)

1 Net other financial income/(expenses) include financial income and expenses not attributable to individual classes of financial assets or liabilities, and financial administration costs.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

7. Expenses

NOK millions	2021	2020
Operating expenses
Depreciation and value adjustments (note 11 and note 12), excl. depreciation properties	548.4	666.5
Employee benefit expenses (note 8)	3,533.5	3,251.3
ICT costs	797.0	695.8
Consultants' and lawyers' fees	136.2	87.8
Commissions	575.1	621.7
Other expenses 1	(997.5)	(894.4)
Total operating expenses	4,592.7	4,428.7

Operating expenses





Other expenses


Other specifications
Employee benefit expenses


Pension cost
Pension cost - multi
Pension cost
Share

Auditor's fee (incl. VAT)


Other non

Wages and salaries	2,600.6	2,401.5
Social security cost	574.8	535.8
Pension cost - defined contribution plan (note 10)	258.1	226.1
Pension cost - multi -employer plan (AFP) (note 10)	26.3	22.5
Pension cost - defined benefit plan (note 10)	51.0	47.8
Share -based payment (note 22)	22.6	17.6
Total employee benefit expenses	3,533.5	3,251.3
Auditor's fee (incl. VAT)
Statutory audit	7.1	5.8
Other assurance services	0.5	0.4
Other non -assurance services	0.2	1.0
Other services other than auditing	0.5	0.5
Total auditor's fee (incl. VAT)	8.4	7.7

¹ Other expenses include cost allocations to claims and finance.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

8. Remuneration to related parties

The average number of employees in the Group was 3,789 (3,634).

Guidelines for the upcoming financial year Remuneration of the CEO

The CEO's salary and other benefits are stipulated by the Board on the basis of an overall assessment that takes into account Gjensidige's remuneration scheme and market salary for corresponding positions.

The fixed salary is assessed and stipulated annually on the basis of the wage growth in society in general and in the financial industry in particular. Variable remuneration (bonus) is decided by the Board on the basis of agreed goals and deliveries. It can amount to up to 50 per cent of the fixed salary including holiday pay. Variable remuneration is earned annually and is based on an overall assessment of financial and non-financial performance over the last two years. Variable remuneration is not included in the pension basis. The assessment takes into account the enterprise's overall performance targets for return on equity adjusted for dividends related to distribution of excess capital and transactions and combined ratio, as well as developments in customer satisfaction. In addition, it emphasizes the CEO's personal contribution to the Group's historical and future results and wealth creation, compliance with the Group's vision, values, ethical guidelines and management principles.

Variable remuneration relating to Gjensidige's performance is decided on the basis of the past two years' performance. Half of the variable remuneration is paid in the form of a contingent promise of shares in Gjensidige Forsikring ASA, 1/3 of which will be released in each of the following three years. Restricted variable remuneration that has not yet been disbursed may be reduced if subsequent results and developments indicate that it was based on incorrect assumptions. The CEO does not receive performance-based benefits over and above the above-mentioned bonus but may receive payments in kind such as a car arrangement and the coverage of costs for electronic communication. Payments in kind shall be related to the CEO's function in the Group, and otherwise be in line with market practice.

The retirement age of the CEO is 62. It is possible to retire after the age of 60 if the Board or CEO so wishes. The CEO has pension rights pursuant to Gjensidige's closed defined-benefit pension scheme. Pursuant to the CEO's employment contract, he is entitled to a pension corresponding to 100 per cent of his annual salary on retirement at the age of 62, which is then reduced in steps to 70 per cent upon reaching the age of 67 at full vesting period.

On retirement after the age of 60, a corresponding agreed reduction applies from 100 per cent upon retirement to 70 per cent upon reaching the age of 67. From the age of 67, the pension is calculated on the basis of the Company's ordinary entitlement earning period of 30 years and is 70 per cent of the fixed salary with a full earning period. Company car arrangements and other benefits are retained until the age of 67.

The CEO has a period of notice of six months and is not entitled to severance pay or termination benefits if he leaves the Company earlier.

Remuneration of executive personnel and employees who can materially influence the Group's risk

Remuneration of the senior group management is stipulated by the CEO, in accordance with limits discussed with the remuneration committee and on the basis of guidelines issued by the Board. Correspondingly, the Group's guidelines are used as the basis for other executive personnel and employees who can materially influence risk.

The overall remuneration is decided on the basis of the need to offer competitive terms in the various business areas. It shall contribute to attracting and retaining executive personnel with the desired expertise and experience who promote the Group's core values and development.

The fixed salary is assessed and stipulated annually on the basis of wage growth in society in general and in the financial industry in particular. Variable remuneration (bonus) to executive personnel is earned annually and is based on an overall assessment of financial and nonfinancial performance over the two last years. The assessment takes into account a combination of the enterprise's overall performance targets for return on equity adjusted for extraordinary dividends and transactions and combined ratio, as well as developments in customer satisfaction. In addition, it evaluates the target achievement of the business unit in question, as well as personal contribution relating to compliance with the Group's vision, values, ethical guidelines and management principles. Half of the variable remuneration is in the form of a promise of shares in Gjensidige Forsikring ASA, one third of which are released in each of the following three years. Restricted variable remuneration that has not yet been disbursed may be reduced if subsequent results and developments indicate that it was based on incorrect assumptions.

The individual variable remuneration may amount to up to 30 per cent of the annual salary including holiday pay. Variable pay is not included in the pension basis.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

After consulting with the remuneration committee, the CEO may make exceptions for special positions if this is necessary to be able to offer competitive terms. Payments in kind to executive personnel shall be related to their function in the Group, and otherwise be in line with market practice.

The retirement age for some members of the senior group management is 62, the others have a retirement age of 70. Of the current members of the senior group management, four are members of the closed Norwegian defined-benefit pension scheme. Given the full earnings period, they are entitled to a pension of 70 per cent of final salary at the full vesting period of 30 years at age 67. Six members are part of the Company's defined-contribution pension scheme. The Company continues a previously agreed individual pension agreement for one member of the senior group management.

In Sweden, the general retirement age is 65 years. In Denmark, the general retirement age is 70 years.

Members of the senior group management have a period of notice of six months. No members of the senior group management today have agreements of severance pay or payment of pay after termination of employment.

In accordance with local practice in Denmark and the Baltic, there are certain individual agreements on severance pay in connection with resignation in Gjensidige Forsikring ASA in these countries.

Remuneration of personnel with supervisory tasks

The remuneration of personnel with control and supervisory tasks shall be independent of the performance of the business area they are in charge of.

None of the executive personnel with supervisory tasks currently has variable bonus schemes. The fixed salary is based on the Group's general principles of competitively, but not leading wages.

Pension benefits and payments in kind follow the Group's general arrangement.

Remuneration of officers of the Company and other employees with remuneration corresponding to executive personnel

The remuneration shall follow the guidelines set out above. There are currently no such employees.

Binding guidelines for shares, subscription rights etc. for the upcoming financial year

Of the variable remuneration earned in 2020 by the CEO and other employees covered by the Regulations relating to remuneration in financial institutions, 50 per cent of the gross earned variable remuneration will be given in the form of a contingent promise of shares in Gjensidige Forsikring ASA. One third of the shares will be released in each of the following three years, provided that the conditions for allocations are fulfilled.

The Board has decided to continue the Group's share savings programme for employees in 2021. The CEO and executive personnel are entitled to take part in the programme on a par with other Gjensidige employees. Under the current programme, employees can save through deductions from their salary for the purchase of shares in Gjensidige Forsikring ASA for up to NOK 90,000 per year. Purchases take place quarterly following publication of the results. A discount of 25 per cent of the purchase price is offered, limited upwards to NOK 7,500. For those who keep the shares and are still employed in the Group, one bonus share is awarded for every four share they have owned for more than two years.

Report on executive remuneration in the preceding financial year

In accordance with the guidelines, one employee in the finance department has been offered up to 50 per cent variable remuneration.

The Board confirms that the guidelines on the remuneration of executive personnel for 2020 set out in last year's statement have been complied with.

Remuneration to the senior group management and the board

NOK millions	2021	2020
Short-term benefits to employees	46,900.6	46,105.5
Pension benefits	6,589.9	6,487.9
Share-based payment	4,704.1	5,133.8
Total	58,194.5	57,727.2

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

9. Tax

NOK millions	2021	2020
Specification of tax expense
Tax payable	(1,966.3)	(1,623.2)
Correction previous years	(38.9)	52.6
Change in deferred tax	346.9	182.8
Total tax expense	(1,658.3)	(1,387.9)
Deferred tax liabilities and deferred tax assets
Taxable temporary differences
Property, plant and equipment and intangible assets	312.3	55.6
Shares, bonds and other securities	409.3	834.5
Profit and loss account	(135.4)	207.3
Account for deferred income tax from technical provisions including security provision	2,809.6	3,266.8
Other taxable temporary differences	143.9	220.2
Total taxable temporary differences	3,539.7	4,584.4
Deductible temporary differences
Loans and receivables	(40.6)	(31.5)
Provisions for liabilities	(596.6)	(297.5)
Pension liabilities	(399.2)	(332.8)
Other deductible temporary differences	(7.3)	(46.3)
Total deductible temporary differences	(1,043.7)	(708.1)
Loss carried forward	(130.5)	(95.2)
Net temporary differences	2,365.5	3,781.1
Net deferred tax liabilities	590.1	935.5
Of this non-assessed deferred tax assets	24.1	20.7
Deferred tax liabilities	614.2	956.2

NOK millions	2021	2020
Reconciliation of tax expense
Profit before tax expense	8,799.4	6,341.7
Estimated tax of profit before tax expense (25%)	(2,199.9)	(1,585.4)
Tax effect of
Different tax rate in foreign subsidiaries	4.4	7.9
Valuation allowance and reversal of loss carried forward in subsidiaries	(9.8)
Dividend received	4.5	1.9
Tax exempted income and expenses	190.3	46.3
Tax on interest on Perpetual Tier 1 capital	13.7	11.6
Associates and joint ventures	380.8	84.7
Non-tax-deductible expenses	(3.5)	(7.5)
Correction previous years	(38.9)	52.6
Total tax expense	(1,658.3)	(1,387.8)
Effective rate of income tax	18.8%	21.9%
Loss carried forward
2022 - 2026
Later or no due date	130.5	95.2
Total loss carried forward	130.5	95.2
Change in deferred tax
Deferred tax liabilities as at 1 January	935.5	1,147.5
Change in deferred tax recognised in profit or loss continuing
operations	(346.9)	(182.8)
Change in deferred tax recognised in other comprehensive income
and directly in the balance sheet
Pensions	(37.6)	(28.1)
Companies sold and purchased	38.7
Exchange rate differences	0.4	(0.4)
Change in deferred tax recognised directly in the balance sheet
Adjustment related to merger with Nykredit and Mølholm		(0.9)
Net deferred tax liabilities as at 31 December	590.1	935.5
Tax recognised in other comprehensive income
Deferred tax pensions	37.6	28.1
Tax payable on exchange rate differences	63.7	(67.2)
Total tax recognised in other comprehensive income	101.3	(39.1)

Tax expense

	2021	2020

	(1,966.3)	(1,623.2)
	(38.9)	52.6
	346.9	182.8
	(1,658.3)	(1,387.9)


	312.3	55.6
	409.3	834.5
	(135.4)	207.3
s including	2,809.6	3,266.8
	143.9	220.2
	3,539.7	4,584.4

	(40.6)	(31.5)
	(596.6)	(297.5)
	(399.2)	(332.8)
	(7.3)	(46.3)
	(1,043.7)	(708.1)
	(130.5)	(95.2)
	2,365.5	3,781.1
	590.1	935.5
	24.1	20.7
	614.2	956.2

incorporated into the tax expense and tax liabilities from the fourth quarter 2010. The tax relief decision involves greater complexity related to taxable gains from the assets and liabilities which were transferred, which entails a greater degree of uncertainty with respect to the tax expense and tax liabilities until all the effects have ultimately been evaluated by the tax authorities.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021 Gjensidige Forsikring Group	136 137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

The main result from the tax relief decision mentioned above, is that an increase in taxable gain from sale of shares in Gjensidige held by Gjensidigestiftelsen, leads to an increase in the taxable basis for depreciation in Gjensidige, which in turn give a decrease in tax payable. In February 2015, Gjensidige received a decision from the Central Tax Office for Large Enterprises in connection with the calculation of a tax gain as a result of the conversion of Gjensidige Forsikring BA into a public limited company (ASA) in 2010. The decision meant an increase in the taxable basis for depreciation and thus reduced the tax payable for 2010 and the following years for Gjensidige. Gjensidigestiftelsen received a similar decision and appealed the decision on the grounds that there was no basis for the change and that the tax office had based its decision on an incorrect valuation. Gjensidige decided to join the complaint.

The appeal was processed by the Tax Appeal Board on 27th January 2020 but was not accepted. For Gjensidige's part, the tribunal's decision entails a reduction of tax payable for 2010 by NOK 42.4 million. If the increased depreciation basis in the decision is used as a basis for the following years, this results in a further reduction in tax payable by approximately NOK 140 million.

Gjensidigestiftelsen has filed a lawsuit to have its decision of the Appeals Board changed. Gjensidige supports Gjensidigestiftelsens's view, but did not take part in the lawsuit. For Gjensidige, this means that the Tax Appeals Board's decision has final effect for 2010. The reduction in tax payable for 2010 has consequently been recognised as income of NOK 42.4 million plus interest in the accounts for 2020. Judgment in the mentioned trial was handed down on 20 August 2021 and is final. In the judgment, Gjensidigestiftelsen wins with its view and the original gain calculation thus stands for the foundation's part. For the following years, the outcome of Gjensidigestiftelsen's lawsuit may be significant, even if Gjensidige is not a party to the case. Gjensidige await the outcome of the final determination from the tax office for these years.

Gjensidige has not yet recognised a reduction in tax payable for the years 2011-2020 in the accounts.

10. Pension

Gjensidige Forsikring is required to have an occupational pension plan pursuant to the Norwegian Act relating to Mandatory Occupational Pensions. The Company's pension plans meet the requirements of the Act.

Gjensidige has both defined contribution and defined benefit plans for its employees. The defined benefit plan has been placed in a separate pension fund and is closed to new employees. New employees become members of the defined contribution pension plan.

Defined contribution plan

Defined contribution pension is a private pension plan that supplements the National Insurance scheme. Benefits from the pension plan come in addition to retirement pension from the National Insurance scheme. The retirement age is 70.

The defined contribution plan is a post-employment benefit plan under which Gjensidige pays fixed contributions into a separate entity and there is no legal or constructive obligation to pay further amounts. The rates are seven per cent of earnings between 0 and 7.1 times the National Insurance basic amount (G) and 20 per cent of earnings between 7.1 and 12 G. Disability pension, spouse/cohabitant pension and child's pension are also included in the plan subject to more detailed rules.

Gjensidige Forsikring's branches and some of its subsidiaries have a defined contribution pension plan corresponding to the plan in Gjensidige Forsikring in Norway.

Defined benefit plan

Description of the plan

Together with benefits from the National Insurance scheme and any paid-up policies from former employment relationships, the retirement pension amounts to approximately 70 per cent of the final salary, given a full earning period of 30 years. The retirement age is 70, but it is 65 for underwriters.

The defined benefit plan is a post-employment benefit plan that entitles employees to contractual future pension benefits. Disability pension, spouse/cohabitant pension and child's pension are also included in the plan subject to more detailed rules.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

In addition, Gjensidige has pension liabilities to some employees over and above the ordinary group pension agreement. This applies to employees with a lower retirement age, employees who earn more than 12 times the National Insurance basic amount (G) and supplementary pensions.

The ordinary retirement pension is a funded plan where the employer contributes by paying into the pension assets. Pension over and above the ordinary group pension agreement is an unfunded plan that is paid for through operations.

Actuarial assumptions

Actuarial assumptions are shown in the table. The discount rate is the assumption that has the greatest impact on the value of the pension liability.

Wage growth, pension increases, and the adjustment of the National Insurance basic amount are based on historical observations and expected future inflation. Wage growth is set at 3.0 per cent (2.7) and is adjusted for age based on a decreasing trend. The year-on-year nominal wage growth 2021/22 is calculated to be 1.23 per cent (0.83). The reason for the low wage growth is that the pension plan is closed to new members and that the average age of employee members is 58.9 years (58.2).

The discount rate is based on a yield curve stipulated on the basis of the covered bond yield. The discount rate is based on observed interest approximately ten years ahead. The market's long-term view of the interest rate level is estimated on the basis of the required real interest rate, inflation and future credit risk. An interpolation has been made in the period between the observed interest and long-term market expectations. A discount curve has thus been calculated for each year in which pensions will be disbursed.

The sensitivity analysis is based on only one assumption being changed at a time, while all the others remain constant. This is seldom the case, since several of the assumptions co-vary.

Risk

The risk in the net pension liability is a combination of the pension plan itself, the pension liability, pension assets, financing level and the co-variation between pension liabilities and pension assets.

Gjensidige is exposed to financial risk since the pension assets are managed in Gjensidige Pensjonskasse as an investment choice portfolio. The financial risk is related to investments in equities, interest-bearing securities and property. Most of the investments are in securities funds and bonds. The financial risk comprises stock market, interest rate, credit, currency and liquidity risk, whereas the greatest risk factor is interest rate risk. This risk (interest rate risk) must be seen in connection with the interest rate risk for the insurance liabilities on the liability side. Financial risk in pension assets is estimated using defined stress parameters for each asset class and assumptions about how the development of the different asset classes will co-vary.

The pension assets are higher than the calculated pension liabilities. However, it must be tested whether the use of pension assets has a limitation. It is expected that part of the overfunding will be used to finance new earnings or be returned to the sponsor. A reduction in the liabilities (for example due to a rise in interest rates) will be partially offset by an increase in potential overfunding. The risk factors below must therefore be seen in the light of the overfunding.

Interest rate risk

The pension assets' exposure to interest rate risk is deemed to be moderate because the market value-weighted duration is approximately 4.8 years (4.7). The portfolio value will fall by approximately 5.8 per cent in the event of a parallel shift in the yield curve of plus one percentage point.

The pension liability will increase by approximately 13.2 per cent in the event of a parallel shift in the whole yield curve (fall in interest) of minus one percentage point. The value will fall by approximately 10.8 per cent in the event of an interest rate increase of one percentage point.

In the situation of rising interest rates, overfunding will be affected. An increase in interest rates will lead to a reduced liability, but in the funded scheme the pension adjustment (asset ceiling) will increase and in turn increase the liability. With a one per cent increase in interest rates, the present value of the pension adjustment (asset ceiling) will amount to approximately 5.7 per cent of the pension obligation or approximately NOK 131 million.

Credit risk

The pension assets' exposure to credit risk is deemed to be moderate. Most of the pension fund's fixed-income investments shall be within "investment grade". If the credit risk on a

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

global basis were to increase by a factor corresponding to the factor used in stress tests for pension funds (equal to a deterioration in relation to the 99.5 percentile), this would lead to a fall of approximately nine per cent in the bond portfolio.

The pension liabilities are exposed to some credit risk because the Norwegian covered bond yield, which forms the basis for determining the discount rate, entails a certain credit risk.

Equity and real estate risk

The pension assets are exposed to the stock market and the real estate market through equity funds and real estate funds. At the end of the year, the exposure was 19.5 per cent, divided into 11.5 per cent shares and 8.0 per cent in real estate.

The market value of shares fluctuates sharply. Gjensidige Pensjonskasse continuously measures the equity risk in the pension assets based on the principles in Solvency II. The principles for measuring equity risk are based on the fact that the risk increases when shares rise in value and that the risk declines when shares have fallen in value. As at 31 December 2021, the risk (equal to a deterioration in relation to the 99.5 percentile) is set at 39 per cent. Property risk is set at 25 per cent based on the principles in Solvency II.

Life expectancy and disability

The life expectancy assumptions are based on the K2013BE table as reported by FNO (Finans Norge) AS.

The rate of disability is based on the IR73 table. This measures long-term disability. The incidence of disability is low compared to many other employers.

Gjensidige's employees could be involved in big disaster-like events such as plane crashes, bus crashes, as spectators at sporting events or through incidents in the workplace. If such an event occurs, the pension liability could significantly increase. Gjensidige has invested in disaster insurance that means that it will receive compensation if such an event occurs.

Wage growth

Future pension benefits depend on future wage growth and the development of the National Insurance basic amount (G). If wage growth in the Company is lower than the increase in G, the benefits will be reduced.

Wage growth will deviate from the path defined by employees getting higher or lower wage growth than what the job indicates. Gjensidige manages employees' wage growth based on collective agreements and individual agreements. Salary levels can increase strongly from one year to the next.

If wage growth is one percentage point higher, it will lead to approximately 3.7 per cent increase in the liability. If wage growth is one percentage point lower, it will lead to approximately 2.6 per cent decrease in the liability. If G is one percentage point higher it will lead to approximately 1.4 per cent decrease in the liability.

Minimum requirement for the level of pension assets

The pension assets must meet certain minimum requirements defined in Norwegian laws, regulations and in orders issued by the Financial Supervisory Authority of Norway (FSA).

If the level of the pension assets falls below a lower limit, Gjensidige will have to pay extra pension contributions to bring them up to the lower limit. On certain conditions, Gjensidige will also be repaid pension assets.

Gjensidige Pensjonskasse measures risk based on requirements set by the Financial Supervisory Authority in the form of stress tests. These tests should reflect 99.5 per cent value at risk. The pension fund has a solvency capital margin of 164 per cent without the use of transitional rules, which indicates that there is no requirement to provide pension funds to improve the pension fund's solvency.

Private collective pension (AFP)

As a member of Finance Norway, Gjensidige has a collective (AFP) pension agreement for its employees. AFP is a defined benefit scheme funded jointly by many employers.

The administrator of the pension plan has not presented calculations that allocate the pension assets or liabilities in the plans to the individual member enterprises. Gjensidige therefore recognises the plan as a defined contribution plan.

If the administrator of the AFP plan presents such allocation figures, this could result in the plan being recognised as a defined benefit plan. It is difficult, however, to arrive at an allocation key that is acceptable to the members. An allocation key based on the Gjensidige's share of total annual pay will not be acceptable since such a key is too simple and will not adequately reflect the financial liabilities.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

NOK millions		Funded 2021 Unfunded 2021	Total 2021		Funded 2020 Unfunded 2020	Total 2020
Present value of the defined benefit obligation
As at 1 January	2,211.8	716.8	2,928.7	2,102.7	610.6	2,713.3
Current service cost	27.3	11.7	38.9	25.6	10.1	35.6
Employers' national insurance contributions of current service cost	5.2	2.2	7.4	4.9	1.9	6.8
Interest cost	36.0	11.1	47.1	45.2	12.3	57.6
Actuarial gains and losses	103.6	8.7	112.3	241.7	120.4	362.1
Benefits paid	(120.6)	(35.0)	(155.6)	(117.0)	(34.5)	(151.5)
Employers' national insurance contributions of benefits paid	(14.6)	(6.4)	(21.0)	(17.6)	(6.4)	(23.9)
Effect of business combinations and disposals	16.4		16.4
The effect of the asset ceiling	50.1		50.1	(73.6)		(73.6)
Foreign currency exchange rate changes		(1.5)	(1.5)		2.4	2.4
As at 31 December	2,315.0	707.6	3,022.6	2,211.8	716.8	2,928.7
Fair value of plan assets
As at 1 January	2,550.4		2,550.4	2,347.0		2,347.0
Interest income	42.4		42.4	52.2		52.2
Return beyond interest income	11.9		11.9	175.8		175.8
Contributions by the employer	91.4	6.4	97.7	109.9	6.4	116.2
Benefits paid	(120.6)		(120.6)	(117.0)		(117.0)
Employers' national insurance contributions of benefits paid	(14.6)	(6.4)	(21.0)	(17.6)	(6.4)	(23.9)
Effect of business combinations and disposals	11.9		11.9
As at 31 December	2,572.8		2,572.8	2,550.4		2,550.4
Amount recognised in the balance sheet
Present value of the defined benefit obligation	2,315.0	707.6	3,022.6	2,211.8	716.8	2,928.7
Fair value of plan assets	(2,572.8)		(2,572.8)	(2,550.4)		(2,550.4)
Net defined benefit obligation/(benefit asset)	(257.7)	707.6	449.8	(338.5)	716.8	378.3
Pension expense recognised in profit or loss
Current service cost	27.3	11.7	38.9	25.6	10.1	35.6
Interest cost	36.0	11.1	47.1	45.2	12.3	57.6
Interest income	(42.4)		(42.4)	(52.2)		(52.2)
Employers' national insurance contributions	5.2	2.2	7.4	4.9	1.9	6.8
Defined benefit pension cost	26.0	25.0	51.0	23.4	24.3	47.8
The expense is recognised in the following line in the income statement
Total operating expenses	26.0	25.0	51.0	23.4	24.3	47.8
Remeasurement of the net defined benefit liability/asset recognised in other comprehensive income
Cumulative amount as at 1 January			(2,914.8)			(2,802.9)
Return on plan assets			11.9			175.8
Changes in demographic assumptions			(126.0)			(136.5)
Changes in financial assumptions			13.7			(225.6)
The effect of the asset ceiling			(50.1)			73.6
Exchange rate differences			(0.4)			0.6
Cumulative amount as at 31 December			(3,065.7)			(2,914.8)
The effect of the asset ceiling
Cumulative amount as at 1 January						73.6

Present value of the defined benefit obligation











Fair value of plan assets








Amount recognised in the balance sheet



Pension expense recognised in profit or loss





The expense is recognised in the following line in the income statement

Remeasurement of the net defined benefit liability/asset recognised in other comprehensive income







The effect of the asset ceiling

Change in the effect of the asset ceiling	50.1	(73.6)
Cumulative amount as at 31 December	50.1

Gjensidige Forsikring Group

Content

Chapter 2 - This is us 14 Chapter 3 - Value creation in Gjensidige 38 Chapter 4 - Financial result 117 Financial statement including notes 2021 136 Gjensidige Forsikring Group 137 Notes: 1. Accounting policies 143 2. Use of estimates 155 3. Risk and capital management 156 4. Segment information 178 5. Shares in associates and joint ventures 179 6. Net income from investments 181 7. Expenses 182 8. Remuneration to related parties 183 9. Tax 185 10. Pension 186 11. Goodwill and intangible assets 192 12. Owner-occupied property, plant and equipment 195 13. Financial assets and liabilities 197 14. Shares and similar interests 203 15. Loans and receivables 204 16. Insurance-related liabilities and reinsurers' share 204 17. Equity 205 18. Hybrid capital 207 19. Provisions and other liabilities 207 20. Related party transactions 208 21. Contingent liabilities 210 22. Share-based payment 210 23. Events after the balance sheet date 212 24. Equity per share 212 Gjensidige Forsikring ASA 213 Statement from the Board and the CEO 265 Auditor`s report 266	Chapter 1 - We are Gjensidige	2



































Assurance report sustainability 270

Actuarial assumptions

Other specifications

	2021	2020
Actuarial assumptions
Discount rate - one point on the interest rate curve	1.98%	1.67%
Future salary increases 1	3.00%	2.65%
Change in social security base amount	3.00%	2.77%
Other specifications
Amount recognised as expense for the defined contribution plan	258.2	226.1
Amount recognised as expense for Fellesordningen LO/NHO	26.3	22.5
Expected contribution to Fellesordningen LO/NHO next year	27.5	23.2
Expected contribution to the defined benefit plan for the next year	101.3	94.7

¹ Future salary increases represent our expected average future salary increase for the industry. Since Gjensidige has a closed plan, average future salary increase for Gjensidige's population is 1.23 per cent

(0.83). See explanation under Actuarial assumptions.

Per cent	Change in pension benefit obligation 2021	Change in pension benefit obligation 2020
Sensitivity
- 1%-point discount rate	13.2%	12.6%
+ 1%-point discount rate	(10.8%)	(10.6%)
- 1%-point salary adjustment	(2.6%)	(3.1%)
+ 1%-point salary adjustment	3.7%	3.8%
- 1%-point social security base amount	1.7%	1.7%
+ 1%-point social security base amount	(1.4%)	(1.6%)
- 1%-point future pension increase	0.0%	0.0%
+ 1%-point future pension increase	11.3%	10.8%
10% decreased mortality	3.1%	2.9%
10% increased mortality	(4.2%)	(4.0%)

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result 117

Financial statement including notes 2021 136
Gjensidige Forsikring Group 137
Notes:
1. Accounting policies 143
2. Use of estimates 155
3. Risk and capital management 156
4. Segment information 178
5. Shares in associates and joint ventures 179
6. Net income from investments 181
7. Expenses 182
8. Remuneration to related parties 183
9. Tax 185
10. Pension 186
11. Goodwill and intangible assets 192
12. Owner-occupied property, plant
and equipment 195
13. Financial assets and liabilities 197
14. Shares and similar interests 203
15. Loans and receivables 204
16. Insurance-related liabilities and
reinsurers' share 204
17. Equity 205
18. Hybrid capital 207
19. Provisions and other liabilities 207
20. Related party transactions 208
21. Contingent liabilities 210
22. Share-based payment 210
23. Events after the balance sheet date 212
24. Equity per share 212

Gjensidige Forsikring ASA 213
Statement from the Board and the CEO 265
Auditor`s report 266
Assurance report sustainability 270

NOK millions

Valuation hierarchy 2021 NOK millions	Level 1 Quoted prices in active markets	Level 2 Valuation techniques based on observable market data	Level 3 Valuation techniques based on non - observable market data	Total 2021

Shares and similar interests		501.7		501.7
Bonds		2,022.2		2,022.2
Loans, receivables and bank deposits		48.9		48.9
Total		2,572.8		2,572.8
Valuation hierarchy 2020	Level 1	Level 2	Level 3
	Quoted prices in active	Valuation techniques based on observable	Valuation techniques based on non - observable

NOK millions

Shares and similar interests

Derivatives

NOK millions	market data	Total 2020

Shares and similar interests	499.9	499.9
Bonds	2,017.3	2,017.3
Derivatives	33.2	33.2
Total	2,550.4	2,550.4

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

11. Goodwill and intangible assets

				Other
NOK millions	Goodwill	Customer relationship	Software	intangible assets	Total
Cost
As at 1 January 2020	3,816.7	1,465.4	1,253.2	842.7	7,378.0
Additions		(3.9)	169.1	19.6	184.8
Additions from internal development			16.8		16.8
Disposals/reclassifications		(495.8)	(661.4)		(1,157.2)
Exchange differences	230.2	96.9	28.9	59.9	415.8
As at 31 December 2020	4,046.9	1,062.5	806.6	922.2	6,838.2
Uncompleted projects			593.1		593.1
As at 31 December 2020, including uncompleted projects	4,046.9	1,062.5	1,399.6	922.2	7,431.2
Amortisation and impairment losses
As at 1 January 2020	(262.2)	(1,305.1)	(761.2)	(674.9)	(3,003.3)
Amortisation		(89.0)	(236.3)	(108.3)	(433.6)
Disposals/reclassifications		495.8	579.8		1,075.7
Exchange differences	(11.3)	(89.6)	(15.4)	(47.8)	(164.1)
As at 31 December 2020	(273.5)	(987.8)	(433.1)	(831.0)	(2,525.4)
Carrying amount
As at 1 January 2020	3,554.6	160.3	796.7	167.9	4,679.4
As at 31 December 2020	3,773.4	74.7	966.5	91.2	4,905.9
Cost
As at 1 January 2021	4,046.9	1,062.5	806.6	922.2	6,838.2
Additions/change in cost			271.3	141.5	412.7
Additions through business combinations	332.6	343.5		4.8	680.8
Disposals/reclassifications		(44.1)	(180.0)	(0.6)	(224.8)
Exchange differences	(159.6)	(40.4)	(18.9)	(43.7)	(262.5)
As at 31 December 2021	4,219.9	1,321.5	878.9	1,024.1	7,444.4
Uncompleted projects			840.5		840.5
As at 31 December 2021, including uncompleted projects	4,219.9	1,321.5	1,719.4	1,024.1	8,284.9
Amortisation and impairment losses
As at 1 January 2021	(273.5)	(987.8)	(433.1)	(831.0)	(2,525.4)
Amortisation		(51.0)	(200.7)	(76.3)	(328.0)
Disposals/reclassifications		37.3	123.1	0.6	161.0
Exchange differences	8.1	38.3	8.5	39.0	93.9
As at 31 December 2021	(265.4)	(963.3)	(502.1)	(867.6)	(2,598.4)
Carrying amount
As at 1 January 2021	3,773.4	74.7	966.5	91.2	4,905.9
As at 31 December 2021	3,954.5	358.2	1,217.3	156.5	5,686.5
Amortisation method	N/A	Straight -line	Straight -line	Straight -line
Useful life (years)	N/A	5 -10	5 - 8	1 -10

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

The Group's intangible assets are either acquired or internally developed. Goodwill, customer relationships, trademarks and parts of other intangible assets are all acquired through business combinations and are a result of a purchase price allocation of initial cost of the acquisition. Software is developed for use in the insurance business. External and internal assistance used in relation with implementation or substantial upgrade of software, including adjustment of standard systems, are capitalized as intangible assets. Amortisation is included in the accounting line Expenses.

The Group has acquired several companies in 2021. MGA Insurance Holding AB was included in segment Sweden from the acquisition in March. NEM Forsikring AS was included in segment Denmark from the acquisition in October. Flyt AS was part of the Group from October, but is not insurance business.

It has been assessed whether goodwill and intangible assets have been negatively affected by Covid-19, without this being the case.

Impairment testing goodwill

The carrying amount of goodwill in the Group as at 31 December 2021 is NOK 3,954.5 million.

NOK millions	2021	2020
Goodwill - Segment
General Insurance Denmark	2,972.5	2,960.3
General Insurance Sweden	232.7	224.2
General Insurance Private	128.7	128.7
General Insurance Baltics	440.6	460.2
Other	180.1
Total	3,954.5	3,773.4

Each of the units above is the smallest identifiable group of assets that generates cash inflows and are considered as separate cash-generating units. Normally, each segment will be considered as a cash-generating unit. Acquired portfolios are integrated into the operations in the various countries and have joint management follow-up and management. The annual assessment of impairment losses was carried out in the third quarter of 2021. The acquisition of NEM Forsikring AS and Flyt AS was not included in the impairment test due to recent acquisition. An indication assessment was also carried out in the other quarters in order to assess whether new circumstances call for new impairment testing of goodwill.

Recoverable amount for the cash-generating units is determined based on an assessment of the value in use. The value in use is based on a discounting of future cash flows, with a relevant discount rate that takes into account maturity and risk.

Budgets/prognoses and the period for which the cash flows are projected

The projection of cash flows is based on budget and forecast for the next five years reviewed by the management and approved by the Board of Directors. The growth in this 5-year period is higher than the long-term growth expectancy. In the period after 2025 a lower annual growth has been used than in the budget period to arrive at a normal level before a terminal value is calculated. The terminal value is calculated in 2030. Gjensidige normally has a tenyear horizon on its models, as the acquired companies are in a growth phase and a shorter period will give a less correct view of expected cash flows. The long-term growth rate beyond the board approved plan, is no higher than the long-term growth in the market for the respective cash generating units.

The management's method

As far as possible, the management has sought to document the assumptions upon which the models are based through external information. External information is first and foremost used in the assessment of discount rate and exchange rates. When it comes to future cash flows, the management has also considered the degree of historical achievement of budgets. If expected budgeted results are not achieved, the management has conducted a deviation analysis. These deviation analyses are reviewed by the Board of Directors of the respective subsidiaries, as well as the management in Gjensidige Forsikring.

Level of combined ratio (CR)

The expected CR level is both in the growth period and when estimating the terminal value considered to be from 73.5 to 97.5.

	CR-level when calculating
growth period	terminal value
86.9-89.8 %	89.8 %
91.2-95.3 %	91.2 %
73.5-81.1 %	81.1 %
92.0-97.5 %	92.0 %
	CR-level in

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Growth rate in terminal value calculation

The growth rate is determined to 2.5 per cent in Scandinavia and 3.0 per cent in Baltics. This is the same growth as in 2020. The growth rate corresponds to the best estimate of long-term nominal GDP growth for the various countries and represents the expectations for growth in the various insurance markets.

Discount rate

The discount rate is before tax, and is composed of a risk-free interest rate, a risk premium and a market beta. The discount rate used corresponds to the group's required return of 6 per cent, same as in 2020. The group's required return represents the group's risk appetite, and this is the same regardless of country. Land risk is corrected directly in the cash flow on all units. An assessment has been made of whether a discount rate per. geography would have given a different outcome. As a rate that is specific to the asset is not directly available in the market, a rate with a corresponding deduction is used to estimate the discount rate. To

determine the discount rate, we use the capital value model as a starting point. The risk-free interest rate corresponds to a ten-year interest rate on government bonds in the respective countries in which the subsidiaries and branches operate. In order to determine the beta, the starting point is observable values for Nordic non-life insurance companies. Compared with the group's required rate of return, the calculated discount rates are lower and therefore the group's required rate of return is used as the discount rate.

Sensitivity analysis to key assumptions

The excess values related to the acquisitions are based on different key assumptions. If these assumptions change significantly from expected in the impairment models, a need for impairment may arise. See table.

Sensitivity table goodwill

General Insurance Denmark
General Insurance Sweden
General Insurance Private
General Insurance Baltics

Discount rate increases by 1% pp Growth reduces by 2% pp compared to expected next 3 years CR increases by 2% pp next 3 years Growth reduces by 1% pp i terminal value calculation compared to expected All circumstances occur simultaneously General Insurance Denmark No need for impairment No need for impairment No need for impairment No need for impairment No need for impairment General Insurance Sweden No need for impairment No need for impairment No need for impairment No need for impairment No need for impairment General Insurance Private No need for impairment No need for impairment No need for impairment No need for impairment No need for impairment General Insurance Baltics No need for impairment No need for impairment No need for impairment No need for impairment No need for impairment

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

12. Owner -occupied property, plant and equipment

NOK millions
Cost







Depreciation and impairment losses





Carrying amount



Cost








Depreciation and impairment losses





Carrying amount

NOK millions	Owner -occupied property	Right -of -use property	Plant and equipment 1	Right -of -use plant and equipment	Total

Cost As at 1 January 2020	30.9	1,190.5	445.6	17.2	1,684.2
Additions	0.6	85.8	43.3	3.6	133.3
Disposals	(1.1)	(65.2)	(125.1)	(6.9)	(198.2)
Exchange differences	0.2	24.0	6.7	0.6	31.4
As at 31 December 2020	30.6	1,235.2	370.5	14.4	1,650.6
Uncompleted projects			76.5		76.5
As at 31 December 2020, including uncompleted projects	30.6	1,235.2	447.0	14.4	1,727.1

Depreciation and impairment losses
As at 1 January 2020	(0.6)	(159.1)	(302.8)	(6.6)	(469.1)
Depreciation	(0.1)	(177.8)	(48.4)	(6.7)	(233.0)
Disposals	0.1	24.0	102.0	6.8	132.9
Exchange differences As at 31 December 2020	(0.0) (0.7)	(3.1) (316.1)	(5.0) (254.1)	(0.2) (6.7)	(8.4) (577.6)

Carrying amount
As at 1 January 2020	30.3	1,031.4	192.7	10.5	1,264.9
As at 31 December 2020	29.9	919.1	192.9	7.7	1,149.6

Cost As at 1 January 2021	30.6	1,235.2	370.5	14.4	1,650.6
Additions through business combinations		13.2	62.5		75.7
Additions		448.0	14.0	3.2	465.3
Disposals	(0.3)	(102.9)	(70.7)	(5.1)	(179.1)
Exchange differences	(0.1)	(20.1)	(4.8)	(0.3)	(25.3)
As at 31 December 2021	30.2	1,573.4	371.5	12.3	1,987.3
Uncompleted projects			90.7		90.7
As at 31 December 2021, including uncompleted projects	30.2	1,573.4	462.1	12.3	2,077.9
Depreciation and impairment losses
As at 1 January 2021	(0.7)	(316.1)	(254.1)	(6.7)	(577.6)
Depreciation	(0.1)	(170.2)	(46.3)	(3.9)	(220.4)
Disposals	0.1	79.5	66.4	5.7	151.7
Exchange differences		5.5	3.1	0.1	8.6
As at 31 December 2021	(0.6)	(401.3)	(230.9)	(4.9)	(637.7)
Carrying amount
As at 1 January 2021	29.9	919.1	192.9	7.7	1,149.6
As at 31 December 2021	29.5	1,172.1	231.3	7.4	1,440.2

Depreciation method Useful life (years)	Straight -line 10 -50	Straight -line 2 -10	Straight -line 3 -10	Straight -line 1 - 3

¹ Plant and equipment consist mainly of machinery, vehicles, fixtures and furniture.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Owner-occupied property in Gjensidige mainly consists of leisure houses and cottages.

There are no restrictions on owner-occupied property, plant and equipment. Owner-occupied property, plant and equipment are not pledged as security for liabilities.

Gjensidige has assessed the consequences of Covid-19 in valuing owner-occupied and rightto-use property, plant and equipment, without having found a need for write-downs of any of the values. Similarly, it has been assessed whether any of the assets can be said to be stranded assets, without this having been the case. Stranded assets are assets that have reduced or no value before the expiry of the originally assumed useful life as a result of changes in external conditions.

Lease liabilities

NOK millions	2021	2020
Lease liability
Undiscounted lease liability 1 January	1,104.5	1,233.7
Effect of discounting of the lease liability	(88.1)	(108.6)
Discounted lease liability 1 January	1,016.4	1,125.1
Summary of the lease liability in the financial statements
As at 1 January	1,016.4	1,125.1
Change in lease liability	405.2	(6.8)
New lease liabilities	39.4	53.7
Paid installment (Cash flow)	(173.4)	(178.9)
Paid interest (Cash flow)	(29.7)	(29.9)
Accrued interest (Profit and loss)	29.7	29.9
Exchange rate differences (Other comprehensive income)	(16.2)	23.3
As at 31 December	1,271.3	1,016.4
Variable rent expensed in the period
Expenses related to short-term contracts (including short term low value contracts)	0.4	9.5
Expenses related to low value contracts (excluding short term low value contracts)	4.6	4.6
Undiscounted lease liability and maturity of cash flows
Less than 1 year	205.9	196.6
1-2 years	186.9	182.7
2-3 years	165.9	161.8
3-4 years	146.3	133.4
4-5 years	140.0	129.2
More than 5 years	495.9	300.9
Total undiscounted lease liability as at 31 December	1,340.8	1,104.5
Weighted average interest rate	2.6 %	2.8 %

Undiscounted lease liability and maturity of cash flows

To determine whether a contract contains a lease, it is considered whether the contract conveys the right to control the use of an identified asset. This is for Gjensidige considered to be the case for office leases, leases for cars and some office machines etc. However, the main part of the latter group is exempted for recognition due to low value. IT agreements are not considered to fall under IFRS 16 since these are based on the purchase of capacity that is not physically separated and thus not identifiable.

The rental period is calculated based on the duration of the agreement plus any option periods if these with reasonable certainty will be exercised. Joint expenses etc. are not recognised in the lease liability for the rental contracts.

The discount rate for the rental contracts is determined by looking at observable borrowing rates in the bond market for each of the countries in which Gjensidige operates. The interest rates are adapted to the actual lease contracts duration and currency. The discount rate for the leasing cars is determined based on an assessment of which loan interest Gjensidige would achieve for financing cars from a financing company.

Payment of interest related to lease liabilities is presented as cash flow from financing activities as this is best in accordance with the objective of the rental agreements.

Gjensidige has recognised its lease liabilities at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate at the date of initial application, as well as the recognition of related right-of-use assets to an amount corresponding to the lease liability according to the modified retrospective approach. However, for the largest rental agreements in Norway, Sweden and Denmark, Gjensidige chose as at 1 January 2019 to recognise the right-of-use asset at the carrying amount as if the standard had been applied since the commencement date but discounted using the lessee's incremental borrowing rate at the date of initial application. Transaction costs are not included.

Gjensidige has chosen to recognise deferred tax on the net value of assets and liabilities. This represented a deferred tax asset of NOK 20.1 million. The difference between this and the lease liability, less deferred tax, amounted to NOK 61.4 million and was recognised directly in equity on 1 January 2019.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Gjensidige has not received a reduction in rental costs or other relief as a result of Covid-19, and therefore has no further information in accordance with IFRS 16.60A.

Gjensidige has entered into a lease agreement for Schweigaardsgate 23 in Oslo from 19 August 2022. The lease is for 10 years and will result in an increase in the right-of-use property and lease obligation by approximately NOK 120 million.

13. Financial assets and liabilities

Fair value

Financial assets and liabilities measured at fair value are carried at the amount each asset/liability can be settled to in an orderly transaction between market participants at the measurements date at the prevailing market conditions.

Different valuation techniques and methods are used to estimate fair value depending on the type of financial instruments and to which extent they are traded in active markets. Instruments are classified in their entirety in one of three valuation levels in a hierarchy on the basis of the lowest level input that is significant to the fair value measurement in its entirety. The different valuation levels and which financial assets/liabilities that are included in the respective levels are accounted for below.

Quoted prices in active markets

Quoted prices in active markets are considered the best estimate of an asset/liability's fair value. A financial asset/liability is considered valued based on quoted prices in active markets if fair value is estimated based on easily and regularly available prices and these prices represent actual and regularly occurring transactions at arm's length principle. Financial assets/liabilities valued based on quoted prices in active markets are classified as level one in the valuation hierarchy.

The following financial assets are classified as level one in the valuation hierarchy:

Listed shares
Norwegian government/government backed bonds and other fixed income securities
Exchange traded funds (ETF)

Valuation based on observable market data

When quoted prices in active markets are not available, the fair value of financial assets/liabilities is preferably estimated on the basis of valuation techniques based on observable market data.

A financial asset/liability is considered valued based on observable market data if fair value is estimated with reference to prices that are not quoted, but are observable either directly (as prices) or indirectly (derived from prices). Financial assets/liabilities valued based on observable market data are classified as level two in the valuation hierarchy.

The following financial assets/liabilities are classified as level two in the valuation hierarchy:

Currency derivatives, equity options and forward rate agreements, in which fair value is derived from the value of underlying instruments. These derivatives are valued using common valuation techniques for derivatives (option pricing models etc.).
Equity funds, bond funds, hedge funds and combination funds, in which fair value is estimated based on the fair value of the underlying investments of the funds.
Bonds, certificates or index bonds that are unlisted, or that are listed but where transactions are not occurring regularly. The unlisted instruments in this category are valued based on observable yield curves and estimated credit spreads where applicable.
Listed subordinated notes where transactions are not occurring regularly.

Valuation based on non-observable market data

When neither quoted prices in active markets nor observable market data is available, the fair value of financial assets/liabilities is estimated based on valuation techniques which are based on non-observable market data.

A financial asset/liability is considered valued based on non-observable market data if fair value is estimated without being based on quoted prices in active markets or observable market data. Financial assets/liabilities valued based on non-observable market data are classified as level three in the valuation hierarchy.

The following financial assets are classified as level three in the valuation hierarchy:

• Unlisted private equity investments. The private equity investments that are not organized as funds are valued using cash flow analysis, price multiples and recent market transactions. The private equity investments that are organized as funds are valued based

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

on NAV (Net Asset Value) as reported by the administrators in accordance with IPEV guidelines (International Private Equity and Venture Capital Valuation. Because of late reporting from the funds, the NAV from the previous quarterly reporting is used in estimating fair value. The NAV is then assessed for discretionary adjustments based on objective events since the last reporting date. Objective events may be the development in underlying values of listed companies since the last reporting, changes in regulations or substantial market movements.

• Loan funds containing secured debt and real estate funds. The funds are valued based on reported NAV values as reported by the fund administrators. Because of late reporting from the funds, the NAV values from the previous quarterly reporting are used in estimating fair value.

The valuation process for financial assets classified as level three

In consultation with the Investment Performance and Risk Measurement department, the Chief Investment Officer decides which valuation models will be used when valuing financial assets classified as level three in the valuation hierarchy. The models are evaluated as required. The fair value and results of the investments and compliance with the stipulated limits are reported weekly to the Chief Financial Officer and Chief Executive Officer, and monthly to the Board.

Sensitivity financial assets level three

Shares and similar interests (mainly unlisted private equity investments and loan funds and real estate funds), as well as bonds and other fixed-income securities are included in level three in the valuation hierarchy. General market downturns or a worsening of the outlook can affect expectations of future cash flows or the applied multiples, which in turn will lead to a reduction in the value of shares and similar interests. Bonds and other fixed-income securities primarily have interest rate and credit risk as a result of changes in the yield curve or losses due to unexpected default on Gjensidige's debtors. However, the sensitivity to change in the yield curve is reduced through hedging using interest rate swaps classified as level 2.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Financial assets
Financial derivatives


	Financial assets at fair value through profit or loss, designated upon initial recognition





Financial assets held to maturity

Loans and receivables






Financial liabilities
Financial derivatives



	Financial liabilities at fair value through profit or loss, designated upon initial recognition

Financial liabilities at amortised cost

NOK millions	Notes	Carrying amount 2021	Fair value 2021	Carrying amount 2020	Fair value 2020
Financial assets
Financial derivatives
Financial derivatives at fair value through profit or loss		692.5	692.5	1,291.2	1,291.2
Financial derivatives subject to hedge accounting		3.1	3.1	3.2	3.2
Financial assets at fair value through profit or loss, designated upon initial recognition
Shares and similar interests	14	6,464.0	6,464.0	5,526.1	5,526.1
Bonds and other fixed income securities		31,026.4	31,026.4	30,968.9	30,968.9
Shares and similar interests in life insurance with investment options		35,588.8	35,588.8	29,467.1	29,467.1
Bonds and other fixed income securities in life insurance with investment options		7,400.9	7,400.9	5,119.3	5,119.3
Loans		2.1	2.1	1.9	1.9
Financial assets held to maturity
Bonds held to maturity		59.8	60.2	151.9	153.0
Loans and receivables
Bonds and other fixed income securities classified as loans and receivables	15	21,331.8	21,784.2	20,927.0	22,300.8
Loans		1,738.9	1,738.9	2,371.5	2,371.5
Receivables related to direct operations and reinsurance		8,220.0	8,220.0	7,702.7	7,702.7
Other receivables	15	938.6	938.6	565.0	565.0
Cash and cash equivalents		2,348.1	2,348.1	2,861.1	2,861.1
Total financial assets		115,815.0	116,267.7	106,956.8	108,331.7
Financial liabilities
Financial derivatives
Financial derivatives at fair value through profit or loss		456.7	456.7	767.4	767.4
Financial derivatives subject to hedge accounting		40.9	40.9
Financial liabilities at fair value through profit or loss, designated upon initial recognition
Debt in life insurance with investment options		42,989.7	42,989.7	34,586.4	34,586.4
Financial liabilities at amortised cost
Subordinated debt	18	2,396.1	2,418.0	1,498.8	1,510.9
Other financial liabilities	19	3,377.8	3,377.8	2,777.3	2,777.3
Liabilities related to direct insurance and reinsurance		832.3	832.3	783.4	783.4
Total financial liabilities		50,093.4	50,115.4	40,413.4	40,425.4
Gain/(loss) not recognised in profit or loss			430.8		1,362.8

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Valuation hierarchy 2021

The table shows a valuation hierarchy where financial assets/liabilities are divided into three levels based on the method of valuation.

NOK millions	Level 1 Quoted prices in active markets	Level 2 Valuation techniques based on observable market data	Level 3 Valuation techniques based on non observable market data	Total

Financial assets
Financial derivatives
Financial derivatives at fair value through profit or loss		692.5		692.5
Financial derivatives subject to hedge accounting		3.1		3.1
Financial assets at fair value through profit or loss, designated upon initial recognition
Shares and similar interests	142.0	4,721.3	1,600.8	6,464.0
Bonds and other fixed income securities	12,178.2	18,066.2	782.0	31,026.4
Shares and similar interests in life insurance with investment options		35,588.8		35,588.8
Bonds and other fixed income securities in life insurance with investment options		7,400.9		7,400.9
Loans			2.1	2.1
Financial assets at amortised cost
Bonds held to maturity	60.2			60.2
Bonds and other fixed income securities classified as loans and receivables		21,784.2		21,784.2
Loans			1,738.9	1,738.9
Financial liabilities
Financial derivatives
Financial derivatives at fair value through profit or loss	351.4	105.3		456.7
Financial derivatives subject to hedge accounting		40.9		40.9
Financial liabilities at fair value through profit or loss, designated upon initial recognition
Liabilities in life insurance with investment options		42,989.7		42,989.7
Financial liabilities at amortised cost
Subordinated debt		2,418.0		2,418.0

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Valuation hierarchy 2020

The table shows a valuation hierarchy where financial assets/liabilities are divided into three levels based on the method of valuation.

NOK millions Financial assets	Level 1 Quoted prices in active markets	Level 2 Valuation techniques based on observable market data	Level 3 Valuation techniques based on non observable market data	Total
Financial derivatives
Financial derivatives at fair value through profit or loss		1,291.2		1,291.2
Financial derivatives subject to hedge accounting	3.2			3.2
Financial assets at fair value through profit or loss, designated upon initial recognition
Shares and similar interests Bonds and other fixed income securities	146.2 12,849.4	4,101.8 17,841.5	1,278.2 277.9	5,526.1 30,968.9
Shares and similar interests in life insurance with investment options		29,467.1		29,467.1
Bonds and other fixed income securities in life insurance with investment options		5,119.3		5,119.3
Loans			1.9	1.9
Financial assets at amortised cost
Bonds held to maturity	153.0			153.0
Bonds and other fixed income securities classified as loans and receivables		22,300.8		22,300.8
Loans			2,371.5	2,371.5
Financial liabilities Financial derivatives Financial derivatives at fair value through profit or loss		767.4		767.4

Financial liabilities at fair value through profit or loss, designated upon initial recognition Liabilities in life insurance with investment options		34,586.4		34,586.4
Financial liabilities at amortised cost Subordinated debt		1,510.9		1,510.9

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Reconciliation of financial assets valued based on non-observable market data (level 3) 2021

l otal
Loans at fair value
Bonds and other fixed income securities
Shares and similar interests

NOK millions		Net realised/ unrealised							Amount of net realised/ unrealised gains recognised in profit or loss that are attributable to
	As at 1.1.2021	gains recognised in profit or loss	Purch ases	Sales	Settle ments	Transfers into/out of level 3	Currency effect	As at 31.12.2021	instruments held as at 31.12.2021
Shares and similar interests	1,278.2	306.6	187.8	(157.4)		(14.2)	(0.3)	1,600.8	307.1
Bonds and other fixed income securities	277.9	41.1	582.5	(98.2)			(21.3)	782.0
Loans at fair value	1.9			(0.1)				2.1
Total	1,558.0	347.7	770.6	(255.8)		(14.2)	(21.6)	2,384.8	307.1

Reconciliation of financial assets valued based on non-observable market data (level 3) 2020

Shares and similar interests
Bonds and other fixed income securities
Loans at fair value
lotal

		Net realised/ unrealised gains				Transfers			Amount of net realised/ unrealised gains recognised in profit or loss that are attributable to instruments
NOK millions	As at 1.1.2020	recognised in profit or loss	Purch ases	Sales	Settle ments	into/out of level 3	Currency effect	As at 31.12.2020	held as at 31.12.2020
Shares and similar interests	1,306.3	(126.9)	164.8	(66.4)			0.4	1,278.2	(126.9)
Bonds and other fixed income securities	708.6	(19.1)		(469.2)			57.7	277.9
Loans at fair value	2.2	1.6		(1.9)				1.9	1.8
Total	2,017.1	(144.4)	164.8	(537.6)			58.1	1,558.0	(125.1)

Reconciliation of liabilities arising from financing activities 2021

Perpetual Tier 1 capital
Subordinated debt

			Non-cash flows
				Exchange	As at
NOK millions	As at 1.1.2021	Cash flows	Aqui-sitions	differences Other changes	31.12.2021
Perpetual Tier 1 capital ¹	1,002.2			6.2	1,205.2
Subordinated debt	1,498.8			0.9	2,396.1

¹ Including accrued interest, NOK 8.3 million.

Reconciliation of liabilities arising from financing activities 2020

				Non-cash flows
				Exchange	As at
NOK millions	As at 1.1.2020	Cash flows	Aqui-sitions	differences Other changes	31.12.2020
Perpetual Tier 1 capital ¹	1,002.3			(0.0)	1,002.2
Subordinated debt	1,498.4			0.4	1,498.8

¹ Including accrued interest, NOK 2.6 million.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

14. Shares and similar interests

NOK millions	Organisation number	Type of fund 31.12.2021		NOK millions	Organisation number	Type of fund 31.12.2021
Gjensidige Forsikring ASA Norwegian financial shares and primary capital				American Century Concentrated Global Growth Equity Fund		Equity fund	177.6
certificates SpareBank 1 Østlandet	920 426 530		8.9	Incentive Active Value Fund Cl. A EUR Unrestricted		Hedge fund	164.7
SpareBank 1 SMN	937 901 003		7.8			Private equity
Sparebanken Vest	832 554 332		6.8	HitecVision VI LP		fund	158.8
Sogn Sparebank	837 897 912		0.7	Danske Invest Norske Aksjer Institusjon I	981 582 020	Equity fund	147.2
Total Norwegian financial shares and primary				Storebrand Norge I	981 672 747	Equity fund	135.2
capital certificates			24.2	Northzone VIII LP		Private equity fund	124.5
Other shares				Norvestor VII LP		Private equity	118.0
SOS International A/S			108.8			fund
Cloudberry Clean Energy ASA	919 967 072		53.2	HitecVision Private Equity V LP		Private equity	99.1
Sampo Oyj			33.4			fund
Sikri Holding AS	823 843 542		18.3	Signord IS - A		Private equity fund	97.6
Telenor ASA	982 463 718		15.6	Invesco Credit Partners LP		Hedge fund	83.7
Paydrive AB			14.2			Private equity
Norse Atlantic ASA	926 645 986		12.2	HitecVision VII LP		fund	66.8
Helgeland Invest AS	939 150 234		11.0			Private equity
Sector Asset Management AS	887 139 342		9.5	HitecVision Private Equity IV LP		fund	53.0
Entra ASA	999 296 432		7.9	Barings Global Special Situations Credit Fund		Hedge fund	52.2
Mimiro Holding AS	821 186 382		7.4	NPEP Erhvervsinvest IV IS		Private equity	43.8
Scalepoint Technologies Limited			7.3			fund
Helgeland Industriutvikling AS	826 335 912		5.7	HitecVision Asset Solution LP		Private equity	41.6
Nordic Credit Rating AS	917 685 991		5.5			fund
Orkla ASA	910 747 711		5.1	Other funds			489.6
Alm. Brand A/S			4.7	Total funds			6,038.5
Storebrand ASA	916 300 484		4.2	1 Norwegian Private Equity funds organised as internal partnerships do not have organisation
Bonheur ASA	830 357 432		3.6
Aker BP ASA	989 795 848		3.5	Shares and similar interests owned by branches
Deep Value Driller AS	926 410 652		2.9	Shares and similar interests owned by Gjensidige			6.8
Other shares			29.8	Forsikring ASA, Danish branch Total shares and similar interests owned by
Total other shares			363.7	branches			6.8
Funds 1				Total shares and similar interests owned by
Shenkman Global Convertible Bond Fund		Convertible bond fund	1,325.7	Gjensidige Forsikring ASA			6,433.2
Nordea Stabile Aksjer Global	989 851 020	Equity fund	577.2	Shares and similar interests owned by other
RBC Funds Lux - Global Equity Focus Fund		Equity fund	520.1	group companies
AB SICAV I - Global Core Equity Portfolio		Equity fund	424.7	Shares and similar interests owned by Gjensidige			30.8
Storebrand Global Indeks	989 133 241	Equity fund	411.6	Pensjonsforsikring AS Total shares and similar interests owned by other
Allspring Global (Lux) Worldwide Fund - Emerging Markets Equity Fund		Equity fund	386.0	group companies			30.8
JSS Sustainable Equity - Global Thematic		Equity fund	339.8	Total shares and similar interests owned by the Gjensidige Forsikring Group			6,464.0

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

15. Loans and receivables

Loans and receivables

NOK millions	2021	2020

Loans and receivables
Bonds classified as loans and receivables	21,331.8	20,927.0
Other loans	5.9	7.7
Total loans and receivables	21,337.7	20,934.7
Other receivables
Receivables in relation with asset management	482.3	359.0
Other receivables and assets	456.3	206.0
Total other receivables	938.6	565.0

Other receivables

Bonds are securities classified as loans and receivables in accordance with IAS 39. Receivables in relation with asset management is short-term receivables regarding financial investments.

Beyond the liabilities that arise from insurance contracts, Gjensidige Forsikring has not issued guarantees for which provisions have been made.

16. Insurance-related liabilities and reinsurers' share

Claims and claims handling costs

Increase in liabilities

NOK millions		2021			2020
Movements in insurance-related liabilities and reinsurers' share	Gross	Reinsurers' share	Net of reinsurance 1	Gross	Reinsurers' share	Net of reinsurance 1
Claims and claims handling costs
Claims reported and claims handling costs	12,464.7	(543.8)	11,921.0	14,179.3	(613.5)	13,565.8
Claims incurred, but not reported	16,069.6		16,069.6	13,985.6	(2.0)	13,983.6
Total as at 1 January	28,534.4	(543.8)	27,990.6	28,164.8	(615.5)	27,549.4
Acquisitions through business combinations and portfolios	170.5		170.5
Claims paid, prior year claims	(7,201.2)	7.7	(7,193.5)	(7,287.0)	(39.2)	(7,326.1)
Increase in liabilities
Arising from current year claims	20,759.4	(167.8)	20,591.5	19,583.6	(342.5)	19,241.1
- of this paid	(11,536.7)	127.0	(11,409.8)	(11,741.0)	547.3	(11,193.7)
Arising from prior years (run-off)	(1,419.3)	112.8	(1,306.5)	(1,076.7)	(45.6)	(1,122.3)
Other changes, including effects from discounting	87.0		87.0	176.0		176.0
Exchange differences	(499.0)	(5.0)	(504.1)	714.6	(48.4)	666.2
Total as at 31 December	28,895.0	(469.1)	28,425.9	28,534.3	(543.8)	27,990.6
Claims reported and claims handling costs	14,838.5	(328.5)	14,510.1	12,464.7	(543.8)	11,921.0
Claims incurred, but not reported	14,056.4	(140.6)	13,915.8	16,069.6	0.0	16,069.6
Total as at 31 December	28,895.0	(469.1)	28,425.9	28,534.4	(543.8)	27,990.6
Provisions for unearned premiums in general insurance
As at 1 January	11,314.6	(43.4)	11,271.2	10,499.1	(45.2)	10,453.9
Additions through acquisitions	187.3	(6.2)	181.1	0.0	0.0	0.0
Increase in the period	30,443.3	(600.2)	29,843.1	28,370.2	(630.8)	27,739.5
Release in the period	(29,734.0)	606.9	(29,127.1)	(27,788.4)	634.0	(27,154.4)
Exchange differences	(164.2)	1.0	(163.2)	233.6	(1.5)	232.1
Total as at 31 December	12,047.1	(42.0)	12,005.1	11,314.6	(43.4)	11,271.2

Provisions for unearned premiums in general insurance

-

¹ For own account.

NOK millions	2021	2020
Discounted claims provision, gross - annuities	6,181.0	6,469.6
Nominal claims provision, gross - annuities	6,585.5	6,561.3

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

The claims provisions shall cover future claims payments. The claims provisions for insurances with annuity payments are converted to present value (discounted), whereas other provisions are undiscounted.

The reason why the claims provisions for annuities are discounted is due to very long cash flows and substantial future interest income. The claims for workers' compensation in Denmark are paid either as annuities or as lump-sum indemnities (which are calculated mainly as discounted annuities). Therefore, it is most expedient to regard the whole portfolio as annuities. For Swedish and Baltic bodily injuries for motor insurance are paid as lifelong annuities. The discount rate used is the swap rate.

The next year, run-off gains are expected to be around NOK 1,000 million.

17. Equity

Share capital

At the end of the year the share capital consisted of 500 million ordinary shares with a nominal value of NOK 2, according to the statutes. All issued shares are fully paid in.

The owners of ordinary shares have dividend and voting rights. There are no rights attached to the holding of own shares.

In thousand shares	2021	2020
Issued 1 January	500,000	500,000
Issued 31 December	500,000	500,000

Own shares

In the column for own shares in the statement of changes in equity the nominal value of the company's holdings of own shares is presented. Amounts paid in that exceeds the nominal value is charged to other equity so that the cost of own shares reduces the Group's equity. Gains or losses on transactions with own shares are not recognised in the income statement.

At the end of the year the number of own shares was 39,696 (11,800).

A total of 363,010 (238,679) own shares at an average share price of NOK 203.51 (192.92) have been acquired to be used in Gjensidige's share-based payment arrangements. Of these 276,822 (199,340) shares have been sold to employees, at the same price, but with a

discount in the form of a contribution, see note 22. In addition, 18,829 (19,495) shares have been allocated to executive personnel within the share-based remuneration scheme and 39,463 (44,940) bonus shares have been allocated to employees in the share savings programme. The number of own shares is increased by 27,896 (reduced by 6,729) through the year.

Share premium

Payments in excess of the nominal value per share are allocated to share premium.

Other paid-in capital

Other paid in equity consists of wage costs that are recognised in profit and loss as a result of the share purchase program for employees.

Perpetual Tier 1 capital

Perpetual Tier 1 capital consists of a perpetual hybrid instrument in Forsikring ASA, classified as equity.

Exchange differences

Exchange differences consist of exchange differences that occur when converting foreign subsidiaries and branches, and when converting liabilities that hedge the company's net investment in foreign subsidiaries and branches.

Remeasurement of the net defined benefit liability/asset

Remeasurement of the net defined benefit liability/asset consists of the return of plan assets beyond interest income and gains/losses occurring by changing the actuarial assumptions used when calculating pension liability.

Other earned equity

Other earned equity consists of this year's and previous year's retained earnings that are not disposed to other purposes and includes provisions for compulsory funds (natural perils fund, guarantee scheme).

Natural perils capital

All insurance companies that take out fire insurance in Norway are obliged under Norwegian law to be a member of the Norwegian Natural Perils Pool. Objects in Norway and Svalbard that

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

are insured against fire damage are also insured against natural damage, if the damage to the thing in question is not covered by other insurance. Natural peril is defined as claim in direct relation to natural hazard, such as landslide, storm, flood, storm surge, earthquake or eruption. It is the individual insurance company that is the insurer, ie issues insurance certificates, settles and has direct contact with the customers. The Natural Perils Pool administers the equalization between the companies. Natural perils capital is capital that can only be used to cover claims for natural damage, but which in an insolvent situation can also be used to cover other obligations.

Guarantee scheme

Norwegian companies and companies from the EEA area with a branch in Norway are members of the Guarantee Scheme for non-life insurance. The purpose of the guarantee scheme is to prevent or reduce losses for individuals and small and medium-sized businesses if their insurance companies are unable to meet their obligations. The provision for guarantee scheme is restricted capital and shall contribute to securing claims arising from an agreement on direct non-life insurance, to the insured and injured third party.

Dividend

Proposed and approved dividend per ordinary share

As at 31 December

NOK millions	2021	2020
As at 31 December NOK 7.70 kroner (7.40) based on profit for the year 1	3,850.0	3,700.0
NOK 0.00 kroner (6.40) based on excess capital distribution		3,200.0

1 Proposed dividend for 2021 is at the reporting date recognised in Gjensidige Forsikring ASA's financial statement, but not in the Group's financial statement. The dividend does not have any tax consequences.

Shareholders

Shareholders owning more than 1 per cent

Investor	Ownership in %
Gjensidigestiftelsen	62.24%
Folketrygdfondet	4.23%
DWS Investments (Frankfurt)	2.91%
Nordea Investment Mgt (Copenhagen)	1.42%
BlackRock Investment Mgt – Index (San Fransisco)	1.31%
1832 Asset Mgt (Dynamic Funds) (Toronto)	1.31%
BlackRock Investment Mgt (London)	1.21%
Vanguard Group (Philadelphia)	1.02%

The shareholder list is based on the VPS shareholder registry as of 31 December 2021.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

18. Hybrid capital

Subordinated debt

	FRN Gjensidige Forsikring ASA 2021/2051 SUB	FRN Gjensidige Forsikring ASA 2014/2044 SUB
ISIN	NO0010965437	NO0010720378
Issuer	Gjensidige Forsikring ASA	Gjensidige Forsikring ASA
Principal, NOK millions	1,200	1,200
Currency	NOK	NOK
Issue date	07/04/2021	02/10/2014
Maturity date	07/04/2051	03/10/2044
First call date	07/10/2026	02/10/2024
Interest rate	NIBOR 3M + 1.10%	NIBOR 3M + 1.50%
General terms
Regulatory regulation	Solvency II	Solvency II
Regulatory call	Yes	Yes
Conversion right	No	No

Perpetual Tier 1 capital

ASA

ISIN	NO0010965429
Issuer	Gjensidige Forsikring ASA
Principal, NOK millions	1,200
Currency	NOK
Issue date	07/04/2021
Maturity date	Perpetual
First call date	07/04/2026
Interest rate	NIBOR 3M + 2.25%
General terms
Regulatory regulation	Solvency II
Regulatory call	Yes

Regulatory regulation	Solvency II
Regulatory call	Yes
Conversion right	No

19. Provisions and other liabilities

NOK millions	2021	2020
Other provisions and liabilities
Restructuring costs 1	59.0	68.9
Bonus provisions	190.8	184.2
Other provisions 2	363.6	47.6
Total other provisions and liabilities	613.5	300.7
Restructuring costs 1
Provisions as at 1 January	68.9	74.4
New provisions	13.5	22.6
Reversal of provisions	0.0	0.0
Provisions used during the year	(22.6)	(29.2)
Exchange rate differences	(0.8)	1.1
Provision as at 31 December	59.0	68.9

¹ In 2021, NOK 13,5 million was allocated to restructuring provision, due to a decision of changes in Norway, Denmark and Baltic. The processes have been communicated to all parties affected by the changes .

2 In 2020 most of Other provisions were classified under Other liabilit ies.

Other financial liabilites

Outstanding accounts Fire Mutuals	20.0	48.2
Accounts payable	555.6	234.7
Liabilities to public authorities	295.8	289.4
Motor insurance tax to Norwegian Motor Insurers' Bureau (TFF)	1,822.1	1,651.9
Deposit for toll tags	209.7
Other liabilities	474.5	553.2

Total other financial liabilities	3,377.8	2,777.3
Accrued expenses and deferred income
Liabilities to public authorities	53.5	63.9
Accrued personnel cost	325.1	307.6
Other accrued expenses and deferred income	86.6	60.5
Total accrued expenses and deferred income	465.2	432.0

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

20. Related party transactions

Overview

Gjensidige Forsikring ASA is the Group's parent company. See note 5 in Gjensidige Forsikring ASA for specification of subsidiaries and joint ventures. In addition other related parties are specified below.

	Registered office	Interest held
Ultimate parent company
Gjensigestiftelsen holds 62.24 per cent of the shares in Gjensidige Forsikring ASA	Oslo, Norway
Other related parties/cooperating companies 1
Fire Mutuals	All over the country, Norway
Gjensidige Pensjonskasse	Oslo, Norway	94.7%

Ultimate parent company
Other related parties/cooperating companies 1


Transactions
Income statement

¹ Cooperating companies are defined as companies with which Gjensidige Forsikring has entered into a long-term strategic alliance.

The table below shows transactions the parent company has with related parties recognised in the income statement.

NOK millions	2021			2020
	Income	Expense	Income	Expense
Earned premiums written and gross claims	38.0	6.9	32.8	45.7
Administration expenses	207.7	1,073.1	175.0	927.6
Interest income and expenses	27.4		44.5
Gain and losses on sale and impairment losses on subsidiaries and liquidation of subsidiaries		70.9	5.6
Total	273.1	1,150.9	257.9	973.3

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Dividends

The table below shows a summary of dividend to/from ultimate parent company and related parties.

Dividends

	2021		2020
NOK millions	Received	Given	Received	Given
Dividends
Gjensidigestiftelsen (proposed and declared in Gjensidige Forsikring ASA)		2,396.2		3,049.8
Gjensidigestiftelsen (special dividend paid in 2021)		1,244.8
Gjensidige Pensjonsforsikring AS - inntektsført, ikke mottatt	150.0
Lokal Forsikring AS	6.5
Total dividends	156.5	3,641.0		3,049.8

Balances

The table below shows a summary of receivables/liabilities the parent company has from/to related parties.

NOK millions	2021			2020
	Receivables	Liabilities	Receivables	Liabilities
Non-interest-bearing receivables and liabilities	177.2	231.9	26.1	85.4
Interest-bearing receivables and liabilities - joint ventures held for sale	1,735.4		2,365.6
Subordinated loan - Gjensidige Pensjonsforsikring AS	300.0
Reinsurance deposits, premiums and claims provision		97.0		105.8
Total balances within the Group	2,212.6	328.9	2,391.7	191.2
Fire Mutuals and Gjensidige Pensjonskasse 2	111.0	33.7	111.0	48.2
Total balances	2,323.6	362.6	2,502.7	239.4

² Gjensidige Forsikring ASA is a sponsor of Gjensidige Pensjonskasse and has contributed with funds equivalent to NOK 111.0 million.

Guarantees

Gjensidige Forsikring ASA is responsible externally for any insurance claim arising from the cooperating mutual fire insurers' fire insurance business, see note 21.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

21. Contingent liabilities

NOK millions	2021	2020
Guarantees and committed capital
Committed capital, not paid	2,323.0	582.8
Credit facility Oslo Areal	2,264.9	1,634.4

As part of its ongoing financial management, Gjensidige has undertaken to invest up to NOK 2,323.0 million (582.8) in loan funds containing senior secured debt and various private equity and real estate investments, over and above amounts recognized in the balance sheet.

The timing of the outflow of capital is dependent on when the funds are making capital calls from their investors. Average remaining operating time for the funds, based on fair value, is slightly less than three years (four) and slightly less than four years (five) in average including option for of extension.

Gjensidige Forsikring has granted a loan to Oslo Areal amounting to NOK 1.7 billion (2.4) at year end. The loan is interest-bearing and total loan limit is NOK 4.0 billion. The loan has been repaid as of 12 January 2022.

Gjensidige Forsikring is liable externally for any insurance claim arising in the cooperating mutual fire insurers' fire insurance operations.

According to the agreement with Gjensidige Pensjonskasse the return, if not sufficient to cover the pension plans guaranteed interest rate, should be covered from the premium fund or through contribution from Gjensidige Forsikring.

The Group is involved in disputes of various kinds. There is often uncertainty associated with litigation. Nevertheless, based on available information, the Group is of the opinion that the cases will be resolved without significant negative impact, neither individually nor collectively, on the Group's result or liquidity. For disputes where the Group considers that there is a more than 50 per cent probability that a financial obligation will arise, provisions have been made based on the best estimate.

22. Share-based payment

Description of the share-based payment arrangements

As at 31 December 2021, Gjensidige has the following share-based payment arrangements:

Share-based remuneration for executive personnel with settlement in equity and cash (remuneration scheme)
Equity-settled share savings program for employees

Share-based remuneration for executive personnel with settlement in equity and cash (remuneration scheme)

Gjensidige has established equity-settled share-based payment for the group management and more explicitly defined executive personnel.

As described in the Board's statement on the stipulation of pay and other remuneration in the remuneration report on Gjensidige's website, half of the variable remuneration is paid in the form of shares in Gjensidige Forsikring ASA, one third of which will be available in each of the following three years. The part that is to cover the tax liability is withheld and settled in the form of cash (net settlement) and the remaining is distributed in the form of shares.

The fair value at the grant date is measured based on the market price. The amount is recognised as payroll expenses at grant date with a corresponding increase in other paid-in equity, both for the part that is settled in shares and for the part that is settled in cash to cover the tax obligations. No specific company-related or market-related entitlement criteria apply to the shares, but the Company may carry out a reassessment if subsequent results and development suggest that the bonus was based on incorrect assumptions. The expected allocation is set to 100 per cent. No adjustment is made to the value of the cash-settled share based on the share price at the reporting date. The number of shares is adjusted for dividend paid.

Equity-settled share savings program for employees

Gjensidige has established a share savings programme for employees of the Group with the exception of employees of Gjensidige Baltic. All employees are given an opportunity to save an annual amount of up to NOK 90,000. Saving take the form of fixed deductions from salary that is used to buy shares four times a year. The employees are offered a discount in the form of a contribution of 25 per cent, limited upwards to NOK 7,500 kroner per year, which corresponds to the maximum tax-exempt discount. Employees will receive one bonus share

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212

Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

for every four shares they have owned for more than two years, provided that they are still employed by the Company or have become retired. No other vesting conditions exists in this arrangement.

The fair value at grant date is based on the market price. The discount is recognised as payroll expenses at the time of allocation with a corresponding increase in other paid-in equity. The value of the bonus shares is recognised as payroll expenses over the vesting period, which is two years, with a corresponding increase in other paid-in equity.

Fair value measurement

The fair value of the shares allocated through the share-based payment for executive personnel and the cash to cover the tax obligations is calculated on the basis of the share price at grant date. The amount is recognised immediately.

Fair value of the bonus shares allocated through the share savings program is calculated on the basis of the share price at grant date, taking into account the likelihood of the employee still being employed after two years and that he/she has not sold his/her shares during the same two-year period. The amount is recognised during the vesting period which is two years.

The following assumptions were used in the calculation of fair value at the time of calculation:

	Remuneration scheme		Share savings
	2021	2020	2021	2020
Weighted average share price (NOK)	201.20	189.00	203.13	192.65
Expected turnover	N/A	N/A	10%	10%
Expected sale	N/A	N/A	5%	5%
Lock-in period (years)	3	3	2	2
Expected dividend (NOK per share) 1	9.93	6.45	9.93	6.45

¹ The expected return is based on the Group's actual profit/loss after tax expense as of the third quarter, grossed up to a full year, plus the maximum distribution of dividend corresponding to 80 per cent (80) of the profit after tax expense. This was carried out as a technical calculation because the Company's forecast for the fourth quarter result was not available at the time the calculations were carried out.

Payroll expenses

NOK millions	2021	2020
Share-based remuneration for key personnel	7.2	8.3
Share savings programme for employees	15.4	9.3
Total expenses (note 7)	22.6	17.6

Total expenses (note 7)	22.6	17.6
Share savings programme for employees	15.4	9.3
Share-based remuneration for key personnel	7.2	8.3

Share savings programme

	2021	2020
The number of bonus shares
Outstanding 1 January	90,979	95,154
Granted during the period	68,288	48,196
Forfeited during the period	(2,626)	(2,751)
Released during the period	(39,463)	(44,940)
Cancelled during the period	(3,892)	(4,680)
Outstanding 31 December	113,286	90,979
Exercisable 31 December	0	0
Average remaining life of outstanding bonus shares	1.04	0.96
Weighted average fair value of bonus shares granted	179.88	175.94
Weighted average share price of bonus shares released during the period	203.13	192.65

Weighted average exercise price will always be 0, since the scheme comprises bonus shares and not options.

Remuneration scheme

	Number of	Number of cash settled	Number of	Number of cash settled
	shares 2021	shares 2021	shares 2020	shares 2020
The number of shares
Outstanding 1 January	41,445	37,734	38,453	34,672
Granted during the period	16,669	15,346	19,931	18,284
Exercised during the period	(18,829)	(17,136)	(19,495)	(17,546)
Cancelled during the period	(2,991)	(2,617)
Modification dividend during the period	1,710	1,551	2,556	2,324
Outstanding 31 December	38,004	34,878	41,445	37,734
Exercisable 31 December	0	0	0	0
Average remaining life of outstanding shares	0.78	0.79	0.80	0.80
			2021	2020
Weighted average fair value of shares granted 2			201.20	189.00
Weighted average share price of shares released during the period			206.41	201.02
Fair value of shares granted that are to be settled in cash			214.00	191.40

² The fair value is calculated based on the market value of the share at the time of allocation.

Weighted average exercise price will always be 0, since the scheme comprises shares and not options.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Notes:
1. Accounting policies	143
2. Use of estimates	155
3. Risk and capital management	156
4. Segment information	178
5. Shares in associates and joint ventures	179
6. Net income from investments	181
7. Expenses	182
8. Remuneration to related parties	183
9. Tax	185
10. Pension	186
11. Goodwill and intangible assets	192
12. Owner-occupied property, plant
and equipment	195
13. Financial assets and liabilities	197
14. Shares and similar interests	203
15. Loans and receivables	204
16. Insurance-related liabilities and
reinsurers' share	204
17. Equity	205
18. Hybrid capital	207
19. Provisions and other liabilities	207
20. Related party transactions	208
21. Contingent liabilities	210
22. Share-based payment	210
23. Events after the balance sheet date	212
24. Equity per share	212
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Shares and right to shares held by the senior group management and the Board

Number	Shares not exercised 2021	Shares held 2021	Shares not exercised 2020	Shares held 2020

The senior group management
Helge Leiro Baastad, CEO	14,928	76,255	15,330	65,383
Jørgen Inge Ringdal, Executive Vice President	4,889	30,175	5,116	28,263
Catharina Hellerud, Executive Vice President	5,381	25,614	5,509	23,611
Mats C. Gottschalk, Executive Vice President	5,568	22,490	5,875	20,331
Jostein Amdal, Executive Vice President	6,178	19,845	6,311	17,657
Janne Merethe Flessum, Executive Vice President	4,309	6,535	3,646	5,226
Aysegul Cin, Executive Vice President	3,844	2,657	2,736	1,803
Lars Gøran Bjerklund, Executive Vice President	4,326	1,430	3,037	403
Rene Fløystøl, Executive Vice President	1,307	3,763	111	3,286
Tor Erik Silset, Executive Vice President	1,322	3,960	170	3,390

The Board
Gisele Marchand, Chairman		1,481		1,481
Eivind Elnan		2,200		2,200
Hilde Merete Nafstad		2,946		2,946
Vibeke Krag		1,500		1,500
Terje Seljeseth		2,505
Tor Magne Lønnum		12,000		11,000
Gunnar Sellæg
Ellen Kristin Enger, staff representative		1,211		1,005
Ruben Pettersen, staff representative		513		202
Sebastian Buur Gabe Kristiansen, staff

Number	Shares not exercised 2021	Shares held 2021	Shares not exercised 2020	Shares held 2020

The senior group management
Helge Leiro Baastad, CEO	14,928	76,255	15,330	65,383
Jørgen Inge Ringdal, Executive Vice President	4,889	30,175	5,116	28,263
Catharina Hellerud, Executive Vice President	5,381	25,614	5,509	23,611
Mats C. Gottschalk, Executive Vice President	5,568	22,490	5,875	20,331
Jostein Amdal, Executive Vice President	6,178	19,845	6,311	17,657
Janne Merethe Flessum, Executive Vice President	4,309	6,535	3,646	5,226
Aysegul Cin, Executive Vice President	3,844	2,657	2,736	1,803
Lars Gøran Bjerklund, Executive Vice President	4,326	1,430	3,037	403
Rene Fløystøl, Executive Vice President	1,307	3,763	111	3,286
Tor Erik Silset, Executive Vice President	1,322	3,960	170	3,390

The Board
Gisele Marchand, Chairman		1,481		1,481
Eivind Elnan		2,200		2,200
Hilde Merete Nafstad		2,946		2,946
Vibeke Krag		1,500		1,500
Terje Seljeseth		2,505
Tor Magne Lønnum		12,000		11,000
Gunnar Sellæg
Ellen Kristin Enger, staff representative		1,211		1,005
Ruben Pettersen, staff representative		513		202
Sebastian Buur Gabe Kristiansen, staff

Number	Shares not exercised 2021	Shares held 2021	Shares not exercised 2020	Shares held 2020
The senior group management
Helge Leiro Baastad, CEO	14,928	76,255	15,330	65,383
Jørgen Inge Ringdal, Executive Vice President	4,889	30,175	5,116	28,263
Catharina Hellerud, Executive Vice President	5,381	25,614	5,509	23,611
Mats C. Gottschalk, Executive Vice President	5,568	22,490	5,875	20,331
Jostein Amdal, Executive Vice President	6,178	19,845	6,311	17,657
Janne Merethe Flessum, Executive Vice President	4,309	6,535	3,646	5,226
Aysegul Cin, Executive Vice President	3,844	2,657	2,736	1,803
Lars Gøran Bjerklund, Executive Vice President	4,326	1,430	3,037	403
Rene Fløystøl, Executive Vice President	1,307	3,763	111	3,286
Tor Erik Silset, Executive Vice President	1,322	3,960	170	3,390

The Board
Gisele Marchand, Chairman		1,481		1,481
Eivind Elnan		2,200		2,200
Hilde Merete Nafstad		2,946		2,946
Vibeke Krag		1,500		1,500
Terje Seljeseth		2,505
Tor Magne Lønnum		12,000		11,000
Gunnar Sellæg
Ellen Kristin Enger, staff representative		1,211		1,005
Ruben Pettersen, staff representative		513		202
Sebastian Buur Gabe Kristiansen, staff representative		417

23. Events after the balance sheet date

The sale of Oslo Areal was completed on 12 January 2022 and resulted in a gain of NOK 0.8 billion to be recorded in the first quarter 2022.

No further significant events have occurred after the balance sheet date.

24. Equity per share

NOK millions	2021	2020
Profit/(loss) for the year	7,141.1	4,953.8
Weighted average number of shares 1	499,973,659	499,988,919
Weighted average number of shares share-based payment	105,176	107,145
Weighted average number of shares, diluted 1	500,078,835	500,096,064
Earnings per share (NOK), basis	14.28	9.91
Earnings per share (NOK), diluted	14.28	9.91

¹ Holdings of own shares are not included in the calculations of the number of shares.

Chapter 1 - We are Gjensidige	2

Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Income statement Gjensidige Forsikring ASA

7	(3,859.4)	(3,748.3)

NOK millions	Notes	2021	2020
Premiums etc.
Earned premiums, gross	4	28,491.7	26,608.4
Ceded reinsurance premiums		(589.3)	(623.6)
Total earned premiums, net of reinsurance		27,902.4	25,984.8
Claims
Gross claims	4	(18,381.5)	(17,765.7)
Claims, reinsurers' share		53.5	399.4
Total claims incurred, net of reinsurance		(18,328.0)	(17,366.3)
Insurance-related operating expenses
Insurance-related administration expenses incl.
commissions for received reinsurance and sales expenses	7	(3,859.4)	(3,748.3)
Received commission for ceded reinsurance and profit share		7.3	9.8
Total insurance-related operating expenses		(3,852.1)	(3,738.5)

Profit/(loss) of technical account		5,722.2	4,880.0
Net income from investments
Income from investments in subsidiaries and joint ventures		156.5
Impairment losses of investments in subsidiaries and joint ventures		(70.9)	5.6
Interest income and dividend etc. from financial assets		738.2	971.1
Changes in fair value on investments		234.1	(271.4)
Realised gain and loss on investments		815.9	480.6
Administration expenses related to investments, including interest expenses		(252.5)	(198.9)
Total net income from investments	6	1,621.3	987.1
Other income		4.1	4.9
Other expenses		(42.3)	(31.7)
Profit/(loss) of non-technical account		1,583.1	960.4
Profit/(loss) before tax expense		7,305.3	5,840.4

NOK millions	Notes	2021	2020
Tax expense	9	(1,630.9)	(1,350.7)
Profit/(loss) before components of other comprehensive income		5,674.4	4,489.7
Other comprehensive income Other comprehensive income that are not reclassified to profit or loss
Changes in estimates related to defined benefit plans	10	(148.8)	(109.6)
Tax on other comprehensive income that are not reclassified to profit or loss	9	37.2	27.4
Total other comprehensive income that are not reclassified to profit or loss		(111.6)	(82.2)
Other comprehensive income that may be reclassified to profit or loss
Exchange differences from foreign operations		(316.0)	334.9
Tax on items that may be reclassified to profit or loss	9	66.8	(64.9)
Total other comprehensive income that may be reclassified to profit or loss		(249.1)	270.0
Comprehensive income		5,313.6	4,677.5

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Balance Gjensidige Forsikring ASA

NOK millions	Notes	2021	2020
Assets
Goodwill		3,009.1	3,131.1
Other intangible assets		359.4	546.1
Total intangible assets	11	3,368.6	3,677.2
Investments
Buildings and other real estate
Owner-occupied property	12	28.5	28.5
Right-of-use property	12	1,097.5	831.6
Subsidiaries and joint ventures
Shares in subsidiaries and joint ventures	5	4,009.8	3,585.3
Shares in subsidiaries and joint ventures held for sale	5	1,086.9
Interest-bearing receivables on subsidiaries and joint ventures 13, 20		2,035.4	2,365.6
Financial assets measured at amortised cost
Loans and receivables	13, 15	15,433.0	15,214.1
Financial assets measured at fair value
Shares and similar interests (incl. shares and similar interests
measured at cost)	13, 14	6,433.2	5,522.4
Fixed income securities	13	27,376.9	28,245.9
Subordinated loans	13	1.8	1.9
Financial derivatives	13	695.5	1,294.3
Other financial assets	13	111.0	111.0
Total investments		58,309.5	57,200.7
Reinsurers' share of insurance-related liabilities, gross
Reinsurers' share of provision for unearned premiums, gross	16	38.2	39.9
Reinsurers' share of claims provision, gross	16	423.7	516.6
Total reinsurers' share of insurance-related liabilities, gross		461.9	556.6
Receivables
Receivables related to direct operations	13	7,871.4	7,347.5
Receivables related to reinsurance	13	69.3	113.4
Receivables within the group	20	177.2	26.1
Other receivables	13, 15	162.2	253.5
Total receivables		8,280.1	7,740.6
Other assets
Plant and equipment	12	89.0	111.1
Cash and cash equivalents	13	1,875.9	2,365.0
Pension assets	10	260.2	336.1
Total other assets		2,225.0	2,812.1
Prepaid expenses
Other prepaid expenses		6.3	97.2
Total prepaid expenses		6.3	97.2

Total assets		72,651.4	72,084.3

NOK millions	Notes	2021	2020
Equity and liabilities
Paid in equity
Share capital		1,000.0	1,000.0
Own shares		(0.1)	(0.0)
Share premium		1,430.0	1,430.0
Perpetual Tier 1 capital		1,205.2	1,002.2
Other paid-in equity		97.3	80.6
Total paid in equity		3,732.4	3,512.8
Retained equity
Funds etc.
Natural perils capital		2,829.3	2,612.9
Guarantee scheme provision		762.3	715.5
Other retained earnings		10,327.4	11,201.4
Total retained earnings		13,919.0	14,529.9
Total equity	17	17,651.5	18,042.7
Subordinated debt	13, 18	2,396.1	1,198.9
Insurance-related liabilities in general insurance, gross
Provision for unearned premiums, gross	4, 16	11,386.7	10,792.8
Claims provision, gross	4, 16	28,250.7	28,097.3
Provision for premium discounts and other profit agreements		106.5	89.1
Total insurance-related liabilities in general insurance, gross		39,743.9	38,979.3
Provision for liabilities
Pension liabilities	10	703.6	712.9
Current tax	9	1,453.8	1,501.9
Deferred tax liabilities	9	852.5	1,198.9
Other provisions	19	587.1	288.9
Total provision for liabilities		3,597.0	3,702.6
Liabilities
Liabilities related to direct insurance	13	426.5	428.1
Liabilities related to reinsurance	13	40.9	69.8
Financial derivatives	13	497.6	767.4
Accrued dividend	17	3,850.0	4,900.0
Lease liability	12	1,195.6	928.9
Other liabilities	13, 19	2,641.0	2,615.4
Liabilities to subsidiaries and associates	13, 20	231.9	85.4
Total liabilities		8,883.5	9,794.9
Accrued expenses and deferred income
Other accrued expenses and deferred income	19	379.4	365.9
Total accrued expenses and deferred income		379.4	365.9
Total equity and liabilities		72,651.4	72,084.3

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227

3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Statement of changes in equity Gjensidige Forsikring ASA

1.1.-31.12.2020
Comprehensive income
Profit/(loss) before components of other comprehensive


Transactions with the owners of the company






1.1.-31.12.2021
Comprehensive income
Profit/(loss) before components of other comprehensive


Transactions with the owners of the company

NOK millions	Share capital	Own shares	Share premium	Other paid-in capital	Perpetual Tier 1 capital	Exchange differences	Changes in estimates related to def. benefit plans	Other earned equity	Total equity
Equity as at 31.12.2019	1,000.0	(0.0)	1,430.0	67.4	1,002.3	338.2	(2,057.1)	16,531.2	18,311.9
1.1.-31.12.2020
Comprehensive income
Profit/(loss) before components of other comprehensive income					45.8			4,443.9	4,489.7
Total other comprehensive income				0.5		269.5	(82.2)		187.8
Comprehensive income				0.5	45.8	269.5	(82.2)	4,443.9	4,677.5
Transactions with the owners of the company
Own shares		0.0						(13.1)	(13.0)
Dividend								(4,899.9)	(4,899.9)
Equity-settled share-based payment transactions				12.7					12.7
Perpetual Tier 1 capital					0.6			(0.6)
Perpetual Tier 1 capital - interest paid					(46.5)				(46.5)
Total transactions with the owners of the company		0.0		12.7	(45.8)			(4,913.6)	(4,946.6)
Equity as at 31.12.2020	1,000.0	(0.0)	1,430.0	80.6	1,002.2	607.7	(2,139.4)	16,061.5	18,042.7
1.1.-31.12.2021
Comprehensive income
Profit/(loss) before components of other comprehensive					51.3			5,623.0	5,674.4
income
Total other comprehensive income				(0.5)		(248.6)	(111.6)		(360.7)
Comprehensive income				(0.5)	51.3	(248.6)	(111.6)	5,623.0	5,313.6
Transactions with the owners of the company
Own shares		(0.1)						(23.4)	(23.4)
Dividend								(5,849.5)	(5,849.5)
Equity-settled share-based payment transactions				17.2					17.2
Perpetual Tier 1 capital					197.2			(0.8)	196.4
Perpetual Tier 1 capital - interest paid					(45.5)				(45.5)
Total transactions with the owners of the company		(0.1)		17.2	151.6			(5,873.6)	(5,704.8)
Equity as at 31.12.2021	1,000.0	(0.1)	1,430.0	97.3	1,205.2	359.1	(2,251.0)	15,810.9	17,651.5

See note 17 for further information about the equity items.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137

Gjensidige Forsikring ASA Notes:	213

1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Statement of cash flows Gjensidige Forsikring ASA

NOK millions 2021 2020 Cash flow from operating activities Premiums paid, net of reinsurance 28,152.2 26,013.8 Claims paid, net of reinsurance (17,633.8) (17,562.0) Net receipts/payments from financial assets 1,519.9 3,097.4 Operating expenses paid, including commissions (3,146.8) (3,183.0) Taxes paid (1,875.8) (1,124.8) Net cash flow from operating activities 7,015.8 7,241.3 Cash flow from investing activities Net receipts/payments from sale/acquisition of subsidiaries, associates and joint ventures (1,057.7) Net receipts/payments on sale/acquisition of owner-occupied property, plant and equipment and intangible assets (31.3) 149.0 Dividends from subsidiaries 6.5

2021	2020

28,152.2	26,013.8
(17,633.8)	(17,562.0)
1,519.9	3,097.4
(3,146.8)	(3,183.0)
(1,875.8)	(1,124.8)
7,015.8	7,241.3

(1,057.7)
(31.3)	149.0
6.5
(1,082.5)	149.0

NOK millions	2021	2020
Cash flow from financing activities
Payment of dividend	(6,899.5)	(6,124.9)
Net receipts/payments on subordinated debt incl. interest	1,169.0	(33.7)
Net receipts/payments on other short-term liabilities	204.4
Net receipts/payments on loans between Group companies	(297.0)	(6.8)
Payments regarding intra-group equity transactions	(525.9)	(434.9)
Net receipts/payments on sale/acquisition of own shares	(23.4)	(13.0)
Repayment of lease liabilities	(159.3)	(163.3)
Payment of interest related to lease liabilities	(27.9)	(28.1)
Tier 1 issuance/instalments	200.0
Tier 1 interest payments	(45.5)	(46.5)
Net cash flow from financing activities	(6,405.1)	(6,851.1)
Net cash flow	(471.8)	539.2
Cash and cash equivalents at the start of the year	2,365.0	1,796.1
Net cash flow	(471.8)	539.2
Effect of exchange rate changes on cash and cash equivalents	(17.3)	29.7
Cash and cash equivalents at the end of the year ¹	1,875.9	2,365.0
¹ Including source-deductible tax account	75.0	70.1

Reconciliation of changes in liabilities from financing activities is found in note 13.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Notes

1. Accounting policies

Reporting entity

Gjensidige Forsikring ASA is a publicly listed company domiciled in Norway. Gjensidige's head office is located at Schweigaardsgate 21, Oslo, Norway. The activities of Gjensidige consist of general insurance. Gjensidige does business in Norway, Sweden and Denmark.

The accounting policies applied in the financial statements are described below. The policies are used consistently throughout Gjensidige with the exception of one difference that is permitted in accordance with IFRS 4 about insurance contracts. See description under the section Claims provision, gross.

Basis of preparation

Statement of compliance

The financial statements have been prepared in accordance with the Norwegian Accounting Act and Norwegian Financial Reporting Regulations for Non-Life Insurance Companies (FOR-2015-12-18-1775). The Norwegian Financial Reporting Regulations for Insurance Companies is to a great extent based on IFRSs endorsed by EU, and interpretations.

New standards adopted

Gjensidige has not implemented any new standards with effect from 1 January 2021.

New standards and interpretations not yet adopted

A number of new standards, changes to standards and interpretations have been issued for financial years beginning after 1 January 2021. They have not been applied when preparing these financial statements. Those that may be relevant to Gjensidige are mentioned below. Gjensidige does not plan early implementation of these standards.

IFRS 9 Financial instruments (2014)

IFRS 9 addresses the accounting for financial instruments and is effective for annual periods beginning on or after 1 January 2018. See also the section below about delayed

implementation. The standard introduces new requirements for the classification and measurement of financial assets, including a new expected loss model for the recognition of impairment losses, and changed requirements for hedge accounting.

Impairment provisions according to IFRS 9 shall be measured using an expected loss model, instead of an incurred loss model as in IAS 39. The impairment rules in IFRS 9 will be applicable to all financial assets measured at amortised cost and interest rate instruments at fair value through other comprehensive income. In addition, loan commitments, financial guarantee contracts and lease receivables are within the scope of the standard. The measurement of the provision for expected credit losses on financial assets depends on whether the credit risk has increased significantly since initial recognition. At initial recognition and if the credit risk has not increased significantly, the provision shall equal 12-month expected credit losses. If the credit risk has increased significantly, the provision shall equal lifetime expected credit losses. This dual approach replaces today's collective impairment model.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Amendments to IFRS 4 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (2016)

Gjensidige is an insurance company and has therefore decided to make use of this exception.

IFRS 17 Insurance Contracts (2017)

IFRS 17 Insurance Contracts, published on May 18, 2017 with effect from 1 January 2021. IASB has decided to defer the effective date of IFRS 17 to the reporting period beginning on January 1 2023.

Gjensidige's choice of portfolios of insurance contracts is based on the following:

where decisions are made
how high up in the product structure the products can be aggregated and still be considered to carry equal risk
the materiality of individual portfolios based on size

Insurance income, insurance expenses and financial insurance income or expenses will be presented separately in the income statement. Reinsurance will be presented on separate lines.

Based on our preliminary assessments and on the basis of Gjensidige's current operations, other amendments to standards and interpretation statements will not have a significant effect.

Basis of measurement

The financial statements have been prepared based on the historical cost principle with the following exceptions:

derivatives are measured at fair value
financial instruments at fair value through profit or loss are measured at fair value

Functional and presentation currency

Functional currency

Functional currency is determined for each the company and the branches in Gjensidige, based on the currency within the primary economic environment where each entity operates. Transactions in the company's/branches' accounts are measured in the company's/branches' functional currency. Transactions in foreign currency are translated to functional currency based on the day rate at the transaction date. At the end of each reporting period, monetary items in foreign currency are translated at the closing rate, non-monetary items are measured at historical cost translated at the time of the transaction and non-monetary items

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

denominated in foreign currency at fair value are translated at the exchange rates prevailing at the date of calculation of fair value. Exchange rate differences are recognised continuously in the income statement during the accounting period.

Presentation currency

The financial statements are presented in NOK. The mother company and the different branches have respectively Norwegian, Swedish and Danish kroner as functional currency. For branches with other functional currencies, balance sheet items are translated at the exchange rate at the balance sheet date, including excess values on acquisition, and profit and loss accounts at an annual average rate. Exchange rate differences are recognised in other comprehensive income.

Exchange gains and losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely in the foreseeable future, are considered to form a part of the net investment in the foreign branch and are recognised in other comprehensive income.

Goodwill arising on the acquisition of a foreign portfolio and fair value adjustments of the carrying amount of assets and liabilities arising on the acquisition of the foreign branch are treated as assets and liabilities in the functional currency of the foreign branch.

All financial information is presented in NOK, unless otherwise stated.

Due to rounding differences, figures and percentages may not add up to the total.

Segment reporting

Private, General insurance Commercial, General insurance Denmark and General insurance Sweden, which are independently managed by managers responsible for the respective segments depending on the products and services offered, distribution and settlement channels, brands and customer profiles. Identification of the segments is based on the existence of segment managers who report directly to the Senior Group Management/CEO and who are responsible for the performance of the segment under their charge. Segment information is shown in note 4 in the consolidated financial statements.

The recognition and measurement principles for Gjensidige's segment reporting are based on the IFRS principles adopted in the consolidated financial statements.

Inter-segment pricing is determined on arm's length distance.

Subsidiaries, associated companies and joint ventures

Subsidiaries, associated companies and joint ventures are recognised using the cost method.

Cash flow statement

Cash flows from operating activities are presented according to the direct method, which gives information about material classes and payments.

Operational activities are primary activities within Gjensidige. Investment activities include the purchase and sale of assets that are not considered cash equivalents, and which are not included in Gjensidige's primary activities. Financing activities include raising and repaying loans, as well as collecting and servicing equity.

Cash and bank deposits with maturity less than three months ahead are considered cash. Certificates and bonds with a similar short residual maturity are not classified as cash equivalents.

Recognition of revenue and expenses

Premiums

Insurance premiums are recognised over the term of the policy. Gross premiums earned are calculated on the basis of the amounts Gjensidige has received or is owed for insurance contracts where the insurance period starts before the end of the period (gross premiums written). At the end of the period provisions are recorded, and premiums written that relate to

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

subsequent periods are adjusted for (change in gross provision for unearned premiums). Earned premiums net of reinsurance are calculated by applying equivalent accrual to premium for ceded reinsurance, which reduces the corresponding gross premiums. Premiums for inward reinsurance are classified as gross premiums written and are earned according to the insurance period.

Claims incurred

Claims incurred consist of gross paid claims less reinsurers' share, in addition to a change in gross provision for claims, gross, also less reinsurers' share. Direct and indirect claims processing costs are included in claims incurred. The claims incurred contain run-off gains/losses on previous years' claims provisions.

Insurance-related operating expenses

Insurance-related operating expenses consist of insurance-related administration expenses including commissions for received reinsurance and sales expenses, less received commissions for ceded reinsurance and profit share.

Net income from investments

Financial income consists of interest income on financial investments, dividend received, realised gains related to financial assets, change in fair value of financial assets at fair value through profit or loss, and gains on financial derivatives. Interest income on interest rate instruments is recognised in profit or loss using the effective interest method.

Financial expenses consist of interest expenses on loans, realised losses related to financial assets, change in fair value of financial assets at fair value through profit or loss, recognised impairment on financial assets and recognised loss on financial derivatives. All expenses related to loans measured at amortised cost are recognised in profit or loss using the effective interest method.

Tangible assets

Owner-occupied property, plant and equipment

Recognition and measurement

Items of owner-occupied property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures

that are directly attributable to the acquisition of the item. In cases where equipment or significant items have different useful lives, they are accounted for as separate components. Owner-occupied property is defined as property that is used by Gjensidige for conducting its business.

Subsequent costs

Depreciation

Each component of plant and equipment are depreciated using the straight-line method over estimated useful life. Land, leisure houses and cottages are not depreciated. The estimated useful lives for the current and comparative periods are as follows, with technical installations having the highest depreciation rate:

•	owner-occupied property	10-50 years
•	right-of-use property	2-10 years
•	plant and equipment	3-10 years
•	right-of-use plant and equipment	1-3 years

Depreciation method, expected useful life and residual values are reassessed annually. An impairment loss is recognised if the carrying amount of an asset is less than the recoverable amount.

Leases

Gjensidige recognises all identifiable lease agreements as a lease liability and a corresponding right-of-use asset, with the following exemptions:

short-term leases (defined as 12 months or less)
low value assets

For these leases, Gjensidige recognises the lease payments as other operating expenses in the statement of profit or loss when they incur.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Gjensidige applies a single discount rate to a portfolio of leases with reasonably similar characteristics (for example similar remaining lease term).

The lease liability is included in the accounting line Other liabilities in the statement of financial position. The right-of-use asset is initially measured at cost, comprising the amount of the initial measurement of the lease liability, plus any down payment.

The right-of-use property is shown in a separate line in the statement of financial position, while right-of-use plant and equipment is included in the line Plant and equipment.

The interest effect of discounting the lease liability is presented separately from the depreciation charge for the right-of-use asset. The depreciation expense is presented with other depreciations, whereas the interest effect of discounting is presented in the line Administration expenses related to investments, including interest expenses.

Intangible assets

Goodwill

Goodwill acquired in acquisition of portfolios represents cost price of the acquisition in excess of Gjensidige's share of the net fair value of identifiable assets, liabilities and contingent liabilities in the acquired portfolio at the time of acquisition. Goodwill is recognised initially at cost and subsequently measured at cost less accumulated impairment losses.

Other intangible assets

Development expenditures (both internally and externally generated) is capitalized only if the development expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and Gjensidige intends to and has sufficient resources to complete the development and to use or sell the asset.

Amortisation

•	customer relationships	5–10 years
•	internally developed software	5–8 years
•	other intangible assets	1–10 years

The amortisation period and amortisation method are reassessed annually. An impairment loss is recognised if the carrying amount of an asset is less than the recoverable amount.

Impairment of non-financial assets

Indicators of impairment of the carrying amount of tangible and intangible assets are assessed at each reporting date. If such indicators exist, then recoverable amount of an assets or a cash

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

generating unit is estimated. Indicators that are assessed as significant by Gjensidige and might trigger testing for an impairment loss are as follows:

significant reduction in earnings in relation to historical or expected future earnings
significant changes in Gjensidige's use of assets or overall strategy for the business
significant negative trends for the industry or economy
other external and internal indicators

Goodwill is tested for impairment annually. The annual testing of goodwill is performed in the third quarter.

Technical provisions

Provision for unearned premiums, gross

Claims provision, gross

Claims provisions contain an element that is to cover administrative expenses incurred in settling claims.

Adequacy test

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Reinsurers' share of insurance-related liabilities in general insurance, gross

Financial instruments

Financial instruments are classified in one of the following categories:

at fair value through profit or loss
investments held to maturity
loans and receivables
financial derivatives
financial liabilities at amortised cost
financial liabilities classified as equity

Recognition and derecognition

Financial assets and liabilities are recognised when Gjensidige becomes a party to the instrument's contractual terms. Initial recognition is at fair value. For instruments that are not derivatives or measured at fair value through profit or loss, transaction expenses that are directly attributable to the acquisition or issuance of the financial asset or the financial liability, are included. Normally the initial recognition value will be equal to the transaction price. Subsequent to initial recognition the instruments are measured as described below.

At fair value through profit or loss

• the classification reduces a mismatch in measurement or recognition that would have arisen otherwise as a result of different rules for the measurement of assets and liabilities

• the financial assets are included in a portfolio that is measured and evaluated regularly at fair value

The category at fair value through profit or loss comprise the classes shares and similar interests, subordinated loans and bonds and other fixed income assets.

Investments held to maturity

those that the business designates as at fair value through profit or loss at initial recognition
those that meet the definition of loans and receivables

Investments held to maturity are measured at amortised cost using the effective interest method, less any impairment losses.

The category investments held to maturity comprises the class bonds held to maturity.

Loans and receivables

The category loans and receivables comprise the classes bonds classified as loans and receivables, loans, receivables related to direct operations and reinsurance, receivables from group companies, other receivables and cash and cash equivalents.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result 117
Financial statement including notes 2021 136
Gjensidige Forsikring Group 137
Gjensidige Forsikring ASA 213
Notes:
1. Accounting policies 217
2. Use of estimates 227
3. Risk and capital management 228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures 231
6. Net income from investments 233
7. Expenses 234
8. Remuneration to related parties 235
9. Tax 237
10. Pension 238
11. Goodwill and intangible assets 244
12. Owner-occupied property, plant
and equipment 247
13. Financial assets and liabilities 249
14. Shares and similar interests 255
15. Loans and receivables 256
16. Insurance-related liabilities and
reinsurers' share 256
17. Equity 257
18. Hybrid capital 259
19. Provisions and other liabilities 259
20. Related party transactions 260
21. Contingent liabilities 262
22. Share-based payment 262
23. Events after the balance sheet date 264
Statement from the Board and the CEO 265
Auditor`s report 266
Assurance report sustainability 270
Appendix 2021 271

Financial derivatives

Gjensidige uses financial derivatives, amongst other to hedge foreign currency exchanges arising from the ownership of foreign subsidiaries with other functional currency.

The category financial derivatives comprise the class financial derivatives at fair value through profit or loss.

Financial liabilities at amortised cost

The category financial liabilities at amortised cost comprises subordinated debt, interestbearing liabilities, other financial liabilities, liabilities related to direct insurance and reinsurance and liabilities within Gjensidige.

Financial liabilities classified as equity

Other items classified as equity

Definition of fair value

For further description of fair value, see note 13.

Definition of amortised cost

Impairment of financial assets

Loans, receivables and investments held to maturity

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

group of financial assets, even though the reduction cannot yet be linked to an individual asset.

An assessment is first made to whether objective evidence of impairment of financial assets that are individually significant exists. Financial assets that are not individually significant or that are assessed individually, but not impaired, are assessed in groups with respect to impairment. Assets with similar credit risk characteristics are grouped together.

Dividend

Dividend from investments is recognised when Gjensidige has an unconditional right to receive the dividend. Proposed dividend is recognised as a liability in accordance with the Accounting Act and Regulations on Simplified Application of International Accounting Standards (FOR 2008-01-21 no. 57). This implies that dividend reduces equity in the fiscal year the dividend provision relates to.

Provisions

Events after the balance sheet date

Pensions

Gains and losses on curtailment or settlement of a defined benefit plan are recognised in the income statement at the time of the curtailment or settlement.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234

8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant and equipment	247
13. Financial assets and liabilities	249

14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Mandatory contributions to the defined contribution plans are recognised as employee expenses in the income statement when accrued.

Share-based payment

The share-based payment arrangements are measured at fair value at the time of allocation and is not changed afterwards. Fair value is accrued over the period during which employees acquire the right to receive the shares. Share-based payment arrangements which are recovered immediately are recognised as expenses at the time of allocation. Vesting conditions are taken into account by adjusting the number of equity instruments included in the measurement of the transaction amount so that, ultimately, the amount recognised shall be based on the number of equity instruments that eventually vest. Non-vesting conditions and possible market conditions are reflected in the measurement of fair value, and no adjustment of the amount recognised as expenses is done upon failing to meet such conditions.

The cost of share-based transactions with employees is recognised as an expense over the average recovery period. For arrangements that are settled in shares, the value of the allocated shares in the period is recognised as a salary expense in the income statement with a corresponding increase in other paid-in equity. For arrangements settled in cash, which is only applicable for Gjensidige's obligation to withhold an amount for the employee's tax liability and transfer this amount in cash to the tax authorities on behalf of the employee, the value of the conditional share allotment granted is recognised as a salary expense in the income statement with a corresponding increase in other paid-in equity. Employers' social security costs are calculated based on the fair value of the shares on each balance sheet date. The amount is recognised in the income statement over the expected vesting period and accrued according to IAS 37.

Share-based payment arrangements settled by one of the shareholders in the ultimate mother company is also recognised as a share-based payment transaction with settlement in equity.

See note 22 for a further description of Gjensidige's share-based payment arrangements and their measurements method.

Tax

Income tax expense comprises the total of current tax and deferred tax.

Current tax

Deferred tax

Recognition

Related party transactions

Intra-group balances and transactions are eliminated in preparing the consolidated financial statements.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259

19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Transactions with affiliated companies

The Fire Mutuals operate as agents on behalf of Gjensidige Forsikring. For these services commission is paid. The Fire Mutuals are also independent insurance companies with fire and natural damage on their own account. Gjensidige provides various services to support this insurance business. For these services and to reinsure the Fire Mutuals' fire insurance, Gjensidige receives payment based on arm's length distance.

Non-current assets held for sale and discontinued operations

A discontinued operation is a part of Gjensidige that either has been disposed of or is classified as held for sale and

represents a separate major line of business or geographical area of operations,
is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations or
is a subsidiary acquired exclusively with a view to resale.

Assets that meet the criteria to be classified as held for sale are measured at the lower of its carrying amount and fair value less costs to sell.

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the asset must be available for immediate sale in its present condition. The management must be committed to a plan to sell the asset, which is expected to qualify for recognition as a completed sale within one year from the date of classification.

2. Use of estimates

Insurance-related liabilities

Use of estimates in calculation of insurance-related liabilities is primarily applicable for claims provisions.

Insurance products are divided in general into two main categories; lines with short or long settlement periods. The settlement period is defined as the length of time that passes after a loss or injury occurs (date of loss) until the claim is reported and then paid and settled. Shorttail lines are e.g. property insurance, while long-tail lines primarily involve accident and health insurances. The uncertainty in short-tail lines of business is linked primarily to the size of the loss.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

3. Risk and capital management

For information about insurance and financial risk please refer to note 3 in the consolidated financial statements that cover both Gjensidige Forsikring ASA and Gjensidige Forsikring Group.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266

Assurance report sustainability	270
Appendix 2021	271

4. Premiums and claims etc. in general insurance

For segment information according to IFRS 8 please refer to note 4 in the consolidated financial statements. The information below is worked out based on the requirements in the Norwegian Financial Reporting Regulations for Non-Life Insurance Companies.

Non-life insurance and reinsurance obligations (direct business and accepted proportional reinsurance)

Premiums earned

						Marine,	Fire and
	Medical	Income	Workers' compen	Motor vehicle	Other	aviation and	other damage to	General		Miscellane ous
	expense	protection	sation	liability	motor	transport	property	liability		financial	Health
NOK millions	insurance	insurance	insurance	insurance	insurance	insurance	insurance		insurance Assistance	loss	insurance
Premiums written
Gross - direct business and accepted proportional reinsurance	1,272.6	1,582.4	1,212.5	3,039.2	5,624.1	359.6	10,419.9	1,120.5	1,091.5	1,516.7	1,836.4
Gross - accepted non-proportional reinsurance
Reinsurers' share		(1.3)	(32.1)	(20.4)		(45.4)	(458.5)	(24.6)		(1.5)
Net	1,272.6	1,581.1	1,180.4	3,018.8	5,624.1	314.2	9,961.4	1,095.9	1,091.5	1,515.2	1,836.4
Premiums earned
Gross - direct business and accepted proportional reinsurance	1,251.9	1,557.7	1,187.3	3,003.9	5,412.9	359.7	10,129.0	1,060.8	1,083.3	1,491.4	1,804.0
Gross - accepted non-proportional reinsurance
Reinsurers' share		(1.3)	(32.0)	(20.4)		(45.7)	(459.6)	(24.2)		(1.5)
Net	1,251.9	1,556.4	1,155.3	2,983.6	5,412.9	314.0	9,669.4	1,036.6	1,083.3	1,489.9	1,804.0
Claims incurred
Gross - direct business and accepted proportional reinsurance		(1,024.4) (1,043.7)		(642.4) (1,290.3) (3,805.6)			(228.3) (6,870.9)	(736.1)		(478.3) (1,014.2) (1,196.5)
Gross - accepted non-proportional reinsurance
Reinsurers' share		(0.9)	16.2	14.2		(0.4)	27.7	(2.9)
Net		(1,024.4) (1,044.5)		(626.2) (1,276.1) (3,805.6)			(228.7) (6,843.2)	(739.0)		(478.3) (1,014.2) (1,196.5)
Gross claims incurred		(1,024.4) (1,043.7)		(642.4) (1,290.3) (3,805.6)			(228.3) (6,870.9)	(736.1)		(478.3) (1,014.2) (1,196.5)
Incurred during the year		(1,026.5) (1,172.2)		(993.3) (1,965.2) (3,810.2)			(246.4) (7,040.5)	(748.2)		(473.5) (1,040.8) (1,184.0)
Incurred previous years	2.1	128.5	350.9	675.0	4.6	18.1	169.6	12.1	(4.8)	26.6	(12.5)
Provision for unearned premiums, gross	364.8	522.0	294.5	1,245.7	2,855.4	43.4	4,493.0	371.2	417.1	378.9	400.5
Claims provision, gross	242.8	3,791.1	8,430.8	5,319.6	850.0	107.9	5,142.0	1,628.4	164.7	436.2	1,920.8

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Non-proportional reinsurance obligations

NOK millions

Premiums written

Premiums earned

NOK millions	Health reinsurance	Casualty reinsurance	Marine, aviation, transport reinsurance	Property reinsurance	Total
Premiums written
Gross - direct business and accepted proportional reinsurance					29,075.4
Gross – accepted non-proportional reinsurance	9.3	23.7	1.1	115.2	149.3
Reinsurers' share				(4.5)	(588.2)
Net	9.3	23.7	1.1	110.7	28,636.4
Premiums earned
Gross - direct business and accepted proportional reinsurance					28,342.1
Gross – accepted non-proportional reinsurance	9.6	24.0	1.0	115.0	149.6
Reinsurers' share				(4.5)	(589.3)
Net	9.6	24.0	1.0	110.6	27,902.4
Claims incurred
Gross - direct business and accepted proportional reinsurance					(18,330.7)
Gross – accepted non-proportional reinsurance	4.3	(6.3)	0.2	(49.0)	(50.8)
Reinsurers' share		(0.4)		(0.1)	53.5
Net	4.3	(6.6)	0.2	(49.0)	(18,328.0)
Gross claims incurred	4.3	(6.3)	0.2	(49.0)	(18,381.5)
Incurred during the year	4.3	(6.3)	0.2	(49.0)	(19,751.6)
Incurred previous years					1,370.0
Provision for unearned premiums, gross					11,386.7
Claims provision, gross	34.4	54.8	1.1	125.9	28,250.7
NOK millions			Norway	Sweden	Denmark
Breakdown of revenue by geographical area
Gross premium written direct business			21,483.1	1,808.9	5,917.6

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Appendix 2021	271

5. Shares in subsidiaries and joint ventures

				Carrying amount		Carrying amount
NOK millions	Registered office		Interest held Cost 31.12.2021		31.12.2021 Cost 31.12.2020	31.12.2020
Subsidiaries and joint ventures
Gjensidige Norge AS	Oslo, Norway	100%	195.7	0.2	195.7	0.2
Gjensidige Pensjonsforsikring AS	Oslo, Norway	100%	681.9	681.9	681.9	681.9
Samtrygd AS	Oslo, Norway	100%	1.3	0.1	1.3	0.1
Lokal Forsikring AS	Oslo, Norway	100%	24.0	0.3	31.4	7.8
Ejendomsselskabet Krumtappen 2 A/S	Copenhagen, Denmark	100%	1.1	1.1	1.1	1.1
Försäkringshuset Amb & Rosèn AB	Stockholm, Sweden	100%	7.4	4.4	7.4	4.4
Gjensidige Business Services AB	Stockholm, Sweden	100%	1,149.9	1,149.9	668.0	668.0
ADB Gjensidige	Vilnius, Lithuania	100%	1,020.9	1,017.3	1,020.9	1,017.3
Vardia Försäkring AB	Stockholm, Sweden	100%	70.7	1.5	89.5	84.8
Försäkringsakademin JW AB	Stockholm, Sweden	100%	40.9	29.3	44.5	32.9
MGA Insurance Holding AB (group)	Stockholm, Sweden	100%	57.2	57.2
Schysst Mobility i Sverige AB	Stockholm, Sweden	100%	10.5	10.5
Gjensidige Mobilitet AS	Trondheim, Norway	100%
Nem Forsikring A/S	Skanderborg, Denmark	100%	591.4	591.4
Flyt AS	Bergen, Norway	100%	464.6	464.6
Oslo Areal AS	Oslo, Norway	50%	1,086.9	1,086.9	1,086.9	1,086.9
Total subsidiaries and joint ventures			5,404.5	5,096.7	3,828.6	3,585.3

NOK millions		Assets	Equity	Liabilities	Revenues ¹	Profit/(loss)

For the whole company 2021

Subsidiaries - additional information
Gjensidige Norge AS		0.2	0.2
Gjensidige Pensjonsforsikring AS		53,179.9	1,039.2	52,140.7	1,281.8	162.0
Samtrygd AS		0.1	0.1			0.0
Lokal Forsikring AS		0.3	0.3			0.0
Försäkringshuset Amb & Rosèn AB		1.7	1.5	0.2		1.7
Gjensidige Business Services AB ADB Gjensidige		1,220.5 1,911.0	1,108.5 548.8	112.0 1,362.2	1,140.3	(65.4) (111.9)
Ejendomsselskabet Krumtappen 2 A/S		1.4	1.4			(0.1)
Vardia Försäkring AB		1.3	(1.8)	3.1		(0.1)
Försäkringsakademin JW AB		7.4	6.6	0.7		(4.1)
MGA Insurance Holding AB (group)		95.9	56.9	39.0	(1.3)	(0.7)
Schysst Mobility i Sverige AB		7.7	6.7	1.0	0.8	(3.9)
Gjensidige Mobilitet AS
Nem Forsikring A/S		581.8	281.9	299.9	83.4	(0.6)
Flyt AS		683.4	177.2	506.2	15.8	(3.6)

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

NOK millions	Assets	Equity	Liabilities	Revenues ¹	Profit/(loss)
For the whole company 2020
Subsidiaries - additional information
Gjensidige Norge AS	0.2	0.2			0.0
Gjensidige Pensjonsforsikring AS	43,945.6	1,026.8	42,918.8	1,132.3	124.1
Samtrygd AS	0.1	0.1			0.0
Lokal Forsikring AS	7.9	7.9	0.0		0.0
Försäkringshuset Amb & Rosèn AB	1.0	3.8	(2.8)		1.3
Gjensidige Business Services AB	766.1	690.5	75.6		23.2
ADB Gjensidige	1,971.4	660.6	1,310.8	1,187.5	105.2
Gjensidige Tech AS (former Gjensidige Bolighandel AS)					(0.4)
Ejendomsselskabet Krumtappen 2 A/S	1.5	1.5	0.0		0.1
Vardia Försäkring AB	20.7	17.4	3.3		1.7
Försäkringsakademin JW AB	15.0	14.2	0.8		(2.7)
Certes Sak AB	5.9	5.9	0.0		0.0
Total subsidiaries	46,735.2	2,428.8	44,306.4	2,319.8	252.5

For the whole company 2020
Subsidiaries - additional information














For the whole company
Joint ventures - additional information Oslo Areal AS


Receivables from joint ventures Oslo Areal AS

¹ Operating income. For companies where financial income is operating income, financial income is included. For other companies, financial income is not included.

NOK millions	2021	2020
Profit/(loss) after tax expense	3,046.7	677.7
Equity	8,495.8	5,447.5

2021	2020
1,735.1	2,365.6
1,735.1	2,365.6

Percentage of votes held is the same as percentage of interest held for all investments.

granted a loan to Oslo Areal amounting to NOK 1.7 billion at year end. The loan is interestbearing and total loan limit is NOK 4.0 billion.

Both Gjensidige and AMF sold their interests in Oslo Areal as at 12 January 2022. The loan was settled as at the same date.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137

Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

6. Net income from investments

NOK millions	2021	2020
Net income and gains/(losses) from investments in subsidiaries, associates and joint ventures
Net income from investments in subsidiaries, associates and joint ventures	156.5
Impairment on investments in subsidiaries, associates and joint ventures	(70.9)	5.6
Total net income and gains/(losses) from investments in subsidiaries, associates and joint ventures	85.6	5.6
Net income and gains/(losses) from financial assets at fair value through profit or loss, designated upon initial recognition Shares and similar interests
Dividend income	11.0	7.8
Unrealised gains/(losses) from shares and similar interests	355.3	(202.2)
Net realised gains/(losses) from shares and similar interests	523.0	649.5
Total net income and gains/(losses) from shares and similar interests	889.3	455.2

Bonds and other fixed-income securities Net interest income/(expenses) from bonds and other fixed-income securities	143.9	261.6
Unrealised gains/(losses) from bonds and other fixed-income securities	195.9	(128.9)
Net realised gains/(losses) from bonds and other fixed-income securities	(28.5)	427.4
Total net income and gains/(losses) from bonds and other fixed income securities	311.3	560.1
Derivatives
Net interest income/(expenses) from derivatives	(72.2)	27.0
Unrealised gains/(losses) from derivatives	(230.4)	187.6
Net realised gains/(losses) from derivatives	149.9	(597.6)
Total net income and gains/(losses) from derivatives	(152.7)	(382.9)
Total net income and gains/(losses) from financial assets at fair value through profit or loss, designated upon initial recognition	1,048.0	632.4

	2021	2020
diaries,
nd joint	156.5
joint	(70.9)	5.6
	85.6	5.6
r value
	11.0	7.8
	355.3	(202.2)
ાડ	523.0	649.5
ar interests	889.3	455.2
d-income-	143.9	261.6
me	195.9	(128.9)
ome	(28.5)	427.4
r fixed-	311.3	560.1

	(72.2)	27.0
	(230.4)	187.6
	149.9	(597.6)
	(152.7)	(382.9)
at fair nition	1,048.0	632.4

NOK millions	2021	2021
Net income and gains/(losses) from loans and receivables
Net interest income/(expenses) from loans and receivables	571.8	574.6
Net gains/(losses) from loans and receivables	47.9	21.9
Net gains/(losses) from changes in exchange rates on loans and receivables	61.9	9.6
Total net income and gains/(losses) from loans and receivables	681.6	606.1
Net other financial income/(expenses) 1	(106.8)	(84.6)
Discounting of claims provision classified as interest expense	(28.8)	(11.4)
Change in discount rate claims provision	(58.2)	(161.0)
Total net income from investments	1,621.3	987.1
Specifications Interest income and expenses from financial assets and liabilities not recognised at fair value through profit or loss Total interest income from financial assets not recognised at fair value through profit or loss	571.8	574.6
Specification of other financially related income and expenses not recognised in net income from investments Net interest from bank deposits and subordinated loan classified as other income and other expenses	(36.3)	(26.8)
1 Net other financial income/(expenses) include financial income and expenses not attributable to individual classes of financial assets or liabilities, and financial administration costs.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

7. Expenses

NOK millions	2021	2020
Insurance-related administration expenses incl. commissions for received reinsurance and sales expenses
Depreciation and value adjustments (note 11 and note 12), excl. depreciation properties	387.8	536.1
Employee benefit expenses (note 8)	3,202.4	2,963.7
ICT costs	933.7	712.5
Consultants' and lawyers' fees	113.4	78.6
Commissions	429.3	484.2
Other expenses 1	(1,207.2)	(1,026.8)
Total insurance-related operating expenses incl. commissions for received reinsurance and sales expenses	3,859.4	3,748.3
Of which sales expenses
Employee benefit expenses	1,573.8	1,481.9
Commission	424.8	510.8
Other sales expenses	403.7	407.5
Total sales expenses	2,402.2	2,400.2
Other specifications
Employee benefit expenses
Wages and salaries	2,324.4	2,154.4
Social security cost	535.9	506.6
Pension cost - defined contribution plan (note 10)	247.3	218.8
Pension cost - multi-employer plan (AFP) (note 10)	24.9	21.4
Pension cost - defined benefit plan (note 10)	49.4	46.5
Share-based payment (note 22)	20.5	16.0
Total employee benefit expenses	3,202.4	2,963.7
Auditor's fee (incl. VAT)
Statutory audit	4.6	4.3
Other assurance services	0.5	0.1
Other non-assurance services	0.2	0.9
Other services other than auditing	0.4	0.1
Total auditor's fee (incl. VAT)	5.6	5.5

¹ Other expenses include cost reductions for Gjensidige Forsikring ASA regarding duties performed for subsidiaries and cost allocations to claims and finance.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Appendix 2021	271

8. Remuneration to related parties

The average number of employees in the Company was 2,870 (2,842).

Guidelines for the upcoming financial year Remuneration of the CEO

The CEO has a period of notice of six months and is not entitled to severance pay or termination benefits if he leaves the Company earlier.

Remuneration of executive personnel and employees who can materially influence the Group's risk

The individual variable remuneration may amount to up to 30 per cent of the annual salary including holiday pay. Variable pay is not included in the pension basis.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

In Sweden, the general retirement age is 65 years. In Denmark, the general retirement age is 70 years.

In accordance with local practice in Denmark and the Baltic, there are certain individual agreements on severance pay in connection with resignation in Gjensidige Forsikring ASA in these countries.

Remuneration of personnel with supervisory tasks

The remuneration of personnel with control and supervisory tasks shall be independent of the performance of the business area they are in charge of.

None of the executive personnel with supervisory tasks currently has variable bonus schemes. The fixed salary is based on the Group's general principles of competitively, but not leading wages.

Pension benefits and payments in kind follow the Group's general arrangement.

Remuneration of officers of the Company and other employees with remuneration corresponding to executive personnel

The remuneration shall follow the guidelines set out above. There are currently no such employees.

Binding guidelines for shares, subscription rights etc. for the upcoming financial year

Report on executive remuneration in the preceding financial year

In accordance with the guidelines, one employee in the finance department has been offered up to 50 per cent variable remuneration.

The Board confirms that the guidelines on the remuneration of executive personnel for 2020 set out in last year's statement have been complied with.

Remuneration to the senior group management and the board

NOK millions	2021	2020
Short-term benefits to employees	46,900.6	46,105.5
Pension benefits	6,589.9	6,487.9
Share-based payment	4,704.1	5,133.8
Total	58,194.5	57,727.2

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249

14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

9. Tax

NOK millions	2021	2020
Specification of tax expense
Tax payable	(1,893.0)	(1,569.4)
Correction previous years	(46.4)	52.6
Change in deferred tax	308.5	166.1
Total tax expense	(1,630.9)	(1,350.7)
Deferred tax liabilities and deferred tax assets
Taxable temporary differences
Property, plant and equipment and intangible assets	1,121.1	1,267.8
Shares, bonds and other securities	438.0	846.5
Profit and loss account	41.3	80.1
Account for deferred income from technical provisions including	2,800.2	3,266.8
Total taxable temporary differences	4,400.6	5,461.3
Deductible temporary differences
Loans and receivables	(40.6)	(31.5)
Provisions for liabilities	(587.1)	(288.9)
Net pension liabilities	(395.1)	(332.8)
Total deductible temporary differences	(1,022.8)	(653.3)
Net temporary differences	3,377.7	4,808.0
Deferred tax liabilities	852.5	1,198.9
Reconciliation of tax expense
Profit before tax expense	7,305.3	5,840.4
Estimated tax of profit before tax expense (25%)	(1,826.3)	(1,460.1)
Tax effect of
Dividend received	42.0	1.9
Tax exempted income and expenses	188.8	46.6
Tax on interest on Perpetual Tier 1 capital	13.7	11.6
Non-tax-deductible expenses	(2.0)	(2.3)
Profit with lower tax rate	(0.7)	(1.1)
Correction previous years	(46.4)	52.6
Total tax expense	(1,630.9)	(1,350.7)
Effective rate of income tax	22.3%	23.1%

Change in deferred tax Deferred tax liabilities as at 1 January Change in deferred tax recognised in profit or loss Change in deferred tax recognised in other comprehensive income Pensions	1,198.9 (308.5)	1,391.4 (166.1)




	(37.2)	(27.4)
Exchange differences	(0.8)	2.0
Change in deferred tax recognised directly in the balance sheet
Adjustment related change in excess value/cost of shares Mølholm		(0.9)
Net deferred tax liabilities as at 31 December	852.5	1,198.9
Tax recognised in other comprehensive income
Deferred tax pensions	37.2	27.4
Tax payable on exchange rate differences	66.8	(64.9)
Total tax recognised in other comprehensive income	104.1	(37.5)

Tax expense

In connection with the conversion of Gjensidige Forsikring BA to a public limited company in 2010, the Ministry of Finance consented an exemption from capital gains taxation on the transfer of business to the newly formed public limited company under certain conditions. The consequences of the tax relief decision, as calculated by the company, have been incorporated into the tax expense and tax liabilities from the fourth quarter 2010. The tax relief decision involves greater complexity related to taxable gains from the assets and

	2021	2020

	(1,893.0)	(1,569.4)
	(46.4)	52.6
	308.5	166.1
	(1,630.9)	(1,350.7)

	1,121.1	1,267.8
	438.0	846.5
	41.3	80.1
luding	2,800.2	3,266.8
	4,400.6	5,461.3

	(40.6)	(31.5)
	(587.1)	(288.9)
	(395.1)	(332.8)
	(1,022.8)	(653.3)
	3,377.7	4,808.0
	852.5	1,198.9

	7,305.3	5,840.4
	(1,826.3)	(1,460.1)

	42.0	1.9
	188.8	46.6
	13.7	11.6
	(2.0)	(2.3)
	(0.7)	(1.1)
	(46.4)	52.6
	(1,630.9)	(1,350.7)
	22.3%	23.1%

liabilities which were transferred, which entails a greater degree of uncertainty with respect to the tax expense and tax liabilities until all the effects have ultimately been evaluated by the tax authorities.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Enterprises in connection with the calculation of a tax gain as a result of the conversion of Gjensidige Forsikring BA into a public limited company (ASA) in 2010. The decision meant an increase in the taxable basis for depreciation and thus reduced the tax payable for 2010 and the following years for Gjensidige. Gjensidigestiftelsen received a similar decision and appealed the decision on the grounds that there was no basis for the change and that the tax office had based its decision on an incorrect valuation. Gjensidige decided to join the complaint.

Gjensidige has not yet recognised a reduction in tax payable for the years 2011-2020 in the accounts.

10. Pension

Defined contribution plan

Gjensidige Forsikring's branches and some of its subsidiaries have a defined contribution pension plan corresponding to the plan in Gjensidige Forsikring in Norway.

Defined benefit plan

Description of the plan

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Actuarial assumptions

Actuarial assumptions are shown in the table. The discount rate is the assumption that has the greatest impact on the value of the pension liability.

The sensitivity analysis is based on only one assumption being changed at a time, while all the others remain constant. This is seldom the case, since several of the assumptions co-vary.

Risk

Interest rate risk

Credit risk

The pension assets' exposure to credit risk is deemed to be moderate. Most of the pension fund's fixed-income investments shall be within "investment grade". If the credit risk on a

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228

4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

The pension liabilities are exposed to some credit risk because the Norwegian covered bond yield, which forms the basis for determining the discount rate, entails a certain credit risk.

Equity and real estate risk

Life expectancy and disability

The life expectancy assumptions are based on the K2013BE table as reported by FNO (Finans Norge) AS.

The rate of disability is based on the IR73 table. This measures long-term disability. The incidence of disability is low compared to many other employers.

Wage growth

Minimum requirement for the level of pension assets

The pension assets must meet certain minimum requirements defined in Norwegian laws, regulations and in orders issued by the Financial Supervisory Authority of Norway (FSA).

Private collective pension (AFP)

As a member of Finance Norway, Gjensidige has a collective (AFP) pension agreement for its employees. AFP is a defined benefit scheme funded jointly by many employers.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

NOK millions		Funded 2021 Unfunded 2021	Total 2021		Funded 2020 Unfunded 2020	Total 2020
Present value of the defined benefit obligation
As at 1 January	2,184.9	712.9	2,897.8	2,082.9	608.1	2,691.0
Current service cost	26.1	11.5	37.6	24.6	9.9	34.6
Employers' national insurance contributions of current service cost	5.0	2.2	7.2	4.7	1.9	6.6
Interest cost	35.5	11.0	46.5	44.8	12.3	57.1
Actuarial gains and losses	101.8	9.3	111.1	238.9	119.1	358.0
Benefits paid	(120.6)	(35.0)	(155.6)	(116.9)	(34.5)	(151.3)
Employers' national insurance contributions of benefits paid	(14.2)	(6.4)	(20.5)	(17.1)	(6.4)	(23.5)
Effect of business combinations and disposals	2.9	(0.3)	2.6	(3.4)		(3.4)
The effect of the asset ceiling	50.1		50.1	(73.6)		(73.6)
Foreign currency exchange rate changes		(1.5)	(1.5)		2.4	2.4
As at 31 December	2,271.6	703.6	2,975.2	2,184.9	712.9	2,897.8
Fair value of plan assets
As at 1 January	2,521.0		2,521.0	2,324.7		2,324.7
Interest income	41.9		41.9	51.7		51.7
Return beyond interest income	12.3		12.3	174.7		174.7
Contributions by the employer	88.5	6.4	94.8	106.6	6.4	113.0
Benefits paid	(120.6)		(120.6)	(116.9)		(116.9)
Employers' national insurance contributions of benefits paid	(14.2)	(6.4)	(20.5)	(17.1)	(6.4)	(23.5)
Effect of business combinations and disposals	2.8		2.8	(2.7)		(2.7)
As at 31 December	2,531.7		2,531.7	2,521.0		2,521.0

Amount recognised in the balance sheet
Present value of the defined benefit obligation	2,271.6	703.6	2,975.2	2,184.9	712.9	2,897.8
Fair value of plan assets	(2,531.7)		(2,531.7)	(2,521.0)		(2,521.0)
Net defined benefit obligation/(benefit asset)	(260.2)	703.6	443.4	(336.1)	712.9	376.8
Pension expense recognised in profit or loss
Current service cost	26.1	11.5	37.6	24.6	9.9	34.6
Interest cost	35.5	11.0	46.5	44.8	12.3	57.1
Interest income	(41.9)		(41.9)	(51.7)		(51.7)
Employers' national insurance contributions	5.0	2.2	7.2	4.7	1.9	6.6
Pension cost	24.7	24.7	49.4	22.4	24.1	46.5
The expense is recognised in the following line in the income statement
Insurance-related adm. expenses including provisions for received reinsurance and sales
expenses	24.7	24.7	49.4	22.4	24.1	46.5
Remeasurement of the net defined benefit liability/asset recognised in other comprehensive income
Cumulative amount as at 1 January			(2,910.7)			(2,801.7)
Return on plan assets			12.3			174.7
Changes in demographic assumptions			(124.9)			(135.8)
Changes in financial assumptions			13.8			(222.2)
The effect of the asset ceiling			(50.1)			73.6
Exchange rate differences			(0.4)			0.6
Cumulative amount as at 31 December			(3,059.9)			(2,910.7)
The effect of the asset ceiling
Cumulative amount as at 1 January						73.6

Present value of the defined benefit obligation











Fair value of plan assets








Amount recognised in the balance sheet




Pension expense recognised in profit or loss






The expense is recognised in the following line in the income statement
Insurance-related adm. expenses including provisions for received reinsurance and sales
expenses
Remeasurement of the net defined benefit liability/asset recognised in other comprehensive income








The effect of the asset ceiling

Change in the effect of the asset ceiling	50.1	(73.6)
Cumulative amount as at 31 December	50.1

Gjensidige Forsikring ASA

Content

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Actuarial assumptions

Other specifications

	2021	2020
Actuarial assumptions
Discount rate - a point on the interest rate curve	1.98%	1.67%
Future salary increases 1	3.00%	2.65%
Change in social security base amount	3.00%	2.77%
Other specifications
Amount recognised as expense for the defined contribution plan	247.3	218.8
Amount recognised as expense for Fellesordningen LO/NHO	24.9	21.4
Expected contribution to Fellesordningen LO/NHO next year	25.7	22.0
Expected contribution to the defined benefit plan for the next year	97.5	91.9

under Actuarial assumptions.

Sensitivity

Per cent	Change in pension benefit obligation 2021	Change in pension benefit obligation 2020

Sensitivity
- 1%-point discount rate	13.1%	12.6%
+ 1%-point discount rate	10.8%	(10.6%)
- 1%-point salary adjustment	2.5%	(3.0%)
+ 1%-point salary adjustment	3.6%	3.7%
- 1%-point social security base amount	1.6%	1.7%
+ 1%-point social security base amount	(1.4%)	(1.5%)
- 1%-point future pension increase	0.0%	0.0%
+ 1%-point future pension increase	11.2%	10.8%
10% decreased mortality	3.1%	3.0%
10% increased mortality	(4.2%)	(4.0%)

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Valuation hierarchy 2021 NOK millions	Level 1 Level 2 Valuation techniques Quoted prices based on in active observable markets market data	Total 2021
Shares and similar interests	493.7	493.7
Bonds	1,989.9	1,989.9
Loans, receivables and bank deposits	48.1	48.1
Total	2,531.7	2,531.7

Valuation hierarchy 2020	Level 1	Level 2	Level 3
		Valuation	Valuation
		techniques	techniques
	Quoted prices	based on	based on non - observable
	in active	observable
NOK millions	markets	market data	market data	Total 2020

Shares and similar interests		494.1		494.1
Bonds		1,994.1		1,994.1
Derivatives		32.8		32.8
Total		2,521.0		2,521.0

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Appendix 2021	271

11. Goodwill and intangible assets

				Other
NOK millions	Goodwill	Customer relationship	Software	intangible assets	Total
Cost
As at 1 January 2020	3,050.1	1,205.7	1,003.6	611.3	5,870.8
Additions/change in cost		(3.9)	87.5		83.6
Additions from internal development			16.8		16.8
Disposals/reclassifications		(495.8)	(499.9)		(995.7)
Exchange differences	180.9	85.2	27.3	50.4	343.8
As at 31 December 2020	3,231.1	791.2	635.3	661.7	5,319.2
Uncompleted projects			78.0		78.0
As at 31 December 2020, including uncompleted projects	3,231.1	791.2	713.3	661.7	5,397.3
Amortisation and impairment losses
As at 1 January 2020	(100.0)	(1,044.3)	(535.7)	(495.3)	(2,175.3)
Amortisation		(56.8)	(200.7)	(67.8)	(325.3)
Disposals/reclassifications		495.8	412.2		908.0
Exchange differences		(72.6)	(14.9)	(40.2)	(127.6)
As at 31 December 2020	(100.0)	(677.8)	(339.0)	(603.3)	(1,720.1)
Carrying amount
As at 1 January 2020	2,950.1	161.4	748.6	116.0	3,976.2
As at 31 December 2020	3,131.1	113.4	374.3	58.4	3,677.1
Cost
As at 1 January 2021	3,231.1	791.2	635.3	661.7	5,319.2
Disposals/reclassifications		(44.1)	(142.1)		(186.2)
Exchange differences	(122.0)	(30.2)	(8.0)	(33.7)	(193.7)
As at 31 December 2021	3,109.1	716.9	485.2	628.0	4,939.3
Uncompleted projects			127.4		127.4
As at 31 December 2021, including uncompleted projects	3,109.1	716.9	612.6	628.0	5,066.7
Amortisation and impairment losses
As at 1 January 2021	(100.0)	(677.8)	(339.0)	(603.3)	(1,720.1)
Amortisation		(21.3)	(128.0)	(44.5)	(193.7)
Disposals/reclassifications		37.3	116.0		153.3
Exchange differences		25.4	5.7	31.4	62.4
As at 31 December 2021	(100.0)	(636.5)	(345.3)	(616.4)	(1,698.1)
Carrying amount
As at 1 January 2021	3,131.1	113.4	374.3	58.4	3,677.1
As at 31 December 2021	3,009.1	80.5	267.3	11.7	3,368.5
Amortisation method	N/A	Straight -line	Straight -line	Straight -line
Useful life (years)	N/A	5 -10	5 - 8	1 -10

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

The company's intangible assets are either acquired or internally developed. Goodwill, customer relationships, trademarks and parts of other intangible assets are all acquired through acquisition of portfolios or mergers and are a result of a purchase price allocation of initial cost of the acquisition. Software is developed for use in the insurance business. External and internal assistance used in relation with implementation or substantial upgrade of software, including adjustment of standard systems, are capitalized as intangible assets. Amortisation is included in the accounting line Insurance-related administration expenses including commissions for received reinsurance and sales expenses.

The company has not acquired any portfolios in 2021. It has been assessed whether goodwill and intangible assets have been negatively affected by Covid-19, without this being the case.

Impairment testing goodwill

The carrying amount of goodwill in the company as at 31 December 2021 is NOK 3,009.1 million.

	NOK millions

NOK millions	2021	2020
Goodwill
General Insurance Denmark	2,664.4	2,771.2
General Insurance Sweden	216.0	231.2
General Insurance Private	128.7	128.7
Total	3,009.1	3,131.1

Each of the units above is the smallest identifiable group of assets that generates cash inflows and are considered as separate cash-generating units. Normally, each segment will be considered as a cash-generating unit. Acquired portfolios are integrated into the operations in the various countries and have joint management follow-up and management. The annual assessment of impairment losses was carried out in the third quarter of 2021. An indication assessment was also carried out in the other quarters in order to assess whether new circumstances call for new impairment testing of goodwill.

Budgets/prognoses and the period for which the cash flows are projected

The projection of cash flows is based on budget and forecast for the next five years reviewed by the management and approved by the Board of Directors. The growth in this five-year period is higher than the long-term growth expectancy. In the period after 2025 a lower annual growth has been used than in the budget period to arrive at a normal level before a terminal value is calculated. The terminal value is calculated in 2030. Gjensidige normally has a ten-year horizon on its models, as the acquired companies are in a growth phase and a shorter period will give a less correct view of expected cash flows. The long-term growth rate beyond the board approved plan, is no higher than the long-term growth in the market for the respective cash generating units.

The management's method

Level of combined ratio (CR)

The expected CR level is both in the growth period and when estimating the terminal value considered to be from 73.5 to 95.3.

CR-level when calculating
terminal value
89.8 %
91.2 %
81.1 %

Growth rate in terminal value calculation

The growth rate is determined to 2.5 per cent in Scandinavia and the same that was used in 2020. The growth rate corresponds to the best estimate of long-term nominal GDP growth for the various countries and represents the expectations for growth in the various insurance markets.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Discount rate

The discount rate is before tax, and is composed of a risk-free interest rate, a risk premium and a market beta. The discount rate used corresponds to the group's required return of 6 per cent, same as in 2020. The group's required return represents the group's risk appetite, and this is the same regardless of country. Land risk is corrected directly in the cash flow on all units. An assessment has been made of whether a discount rate per geography would have given a different outcome. As a rate that is specific to the asset is not directly available in the market, a rate with a corresponding deduction is used to estimate the discount rate. To determine the discount rate, we use the capital value model as a starting point. The risk-free interest rate corresponds to a ten-year interest rate on government bonds in the respective

countries in which the subsidiaries and branches operate. In order to determine the beta, the starting point is observable values for Nordic non-life insurance companies. Compared with the group's required rate of return, the calculated discount rates are lower and therefore the group's required rate of return is used as the discount rate.

Sensitivity analysis to key assumptions

		Growth reduces by 2% pp		Growth reduces by 1% pp i
	Discount rate increases by	compared to expected next 3	CR increases by 2% pp next 3	terminal value calculation	All circumstances occur
Sensitivity table goodwill	1% pp	years	years	compared to expected	simultaneously
General Insurance Denmark	No need for impairment	No need for impairment	No need for impairment	No need for impairment	No need for impairment
General Insurance Sweden	No need for impairment	No need for impairment	No need for impairment	No need for impairment	No need for impairment
General Insurance Private	No need for impairment	No need for impairment	No need for impairment	No need for impairment	No need for impairment

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Appendix 2021	271

12. Owner -occupied property, plant and equipment

	Owner -occupied	Right -of -use	Plant and	Right -of -use plant and
NOK millions	property	property	equipment 1	equipment	Total
Cost
As at 1 January 2020	28.5	1,109.7	383.5	16.5	1,538.1
Additions		47.7	25.4	3.6	76.6
Disposals		(54.4)	(118.0)	(6.2)	(178.6)
Exchange differences		20.5	2.6	0.5	23.6
As at 31 December 2020	28.5	1,123.4	293.5	14.4	1,459.7
Uncompleted projects			11.0		11.0
As at 31 December 2020, including uncompleted projects	28.5	1,123.4	304.4	14.4	1,470.7
Depreciation and impairment losses
As at 1 January 2020		(143.1)	(252.3)	(6.2)	(401.6)
Depreciation		(161.6)	(42.9)	(6.4)	(210.9)
Disposals		15.2	95.7	6.2	117.1
Exchange differences		(2.4)	(1.6)	(0.2)	(4.2)
As at 31 December 2020		(291.8)	(201.1)	(6.7)	(499.6)
Carrying amount
As at 1 January 2020	28.5	966.7	179.5	10.3	1,184.9
As at 31 December 2020	28.5	831.6	103.4	7.7	971.1
Cost
As at 1 January 2021	28.5	1,123.4	293.5	14.4	1,459.7
Additions		447.8		3.2	451.1
Disposals		(98.8)	(60.8)	(5.1)	(164.6)
Exchange differences		(15.7)	(0.8)	(0.3)	(16.8)
As at 31 December 2021	28.5	1,456.8	231.9	12.3	1,729.4
Uncompleted projects		-	24.0	-	24.0
As at 31 December 2021, including uncompleted projects	28.5	1,456.8	255.9	12.3	1,753.4
Depreciation and impairment losses
As at 1 January 2021		(291.8)	(201.1)	(6.7)	(499.6)
Depreciation		(157.0)	(33.1)	(3.9)	(194.1)
Disposals		85.0	59.3	5.7	150.0
Exchange differences		4.5	0.6	0.1	5.1
As at 31 December 2021		(359.3)	(174.3)	(4.9)	(538.5)
Carrying amount
As at 1 January 2021	28.5	831.6	103.4	7.7	971.1
As at 31 December 2021	28.5	1,097.5	81.6	7.4	1,214.9
Depreciation method	Straight -line	Straight -line	Straight -line	Straight -line
Useful life (years)	10 -50	2 -10	3 -10	1 - 3
1 Plant and equipment consist mainly of machinery, vehicles, fixtures and furniture.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Appendix 2021	271

Owner-occupied property in Gjensidige mainly consists of leisure houses and cottages.

There are no restrictions on owner-occupied property, plant and equipment. Owner-occupied property, plant and equipment are not pledged as security for liabilities.

Lease liabilities

NOK millions	2021	2020
Lease liability
Undiscounted lease liability 1 January	1,008.6	1,167.2
Effect of discounting of the lease liability	(79.7)	(106.7)
Discounted lease liability 1 January	928.9	1,060.5
Summary of the lease liability in the financial statements
As at 1 January	928.9	1,060.5
Change in lease liability	29.9	15.8
New lease liabilities	409.0	(4.6)
Paid installment (cash flow)	(159.3)	(163.3)
Paid interest (cash flow)	(28.0)	(28.1)
Accrued interest (profit and loss)	28.0	28.1
Exchange rate differences (other comprehensive income)	(12.8)	20.5
As at 31 December	1,195.6	928.9
Variable rent expensed in the period
Expenses related to short-term contracts (including short term low value contracts)	0.3	9.5
Expenses related to low value contracts (excluding short term low value contracts)		0.3
Undiscounted lease liability and maturity of cash flows
Less than 1 year	181.7	179.9
1-2 years	173.4	166.4
2-3 years	155.9	147.1
3-4 years	136.7	122.2
4-5 years	131.3	118.4
More than 5 years	480.5	274.7
Total undiscounted lease liability as at 31 December	1,259.5	1,008.6

Payment of interest related to lease liabilities is presented as cash flow from financing activities as this is best in accordance with the objective of the rental agreements.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Gjensidige has not received a reduction in rental costs or other relief as a result of Covid-19, and therefore has no further information in accordance with IFRS 16.60A.

13. Financial assets and liabilities

Fair value

Quoted prices in active markets

The following financial assets are classified as level one in the valuation hierarchy:

Listed shares
Norwegian government/government backed bonds and other fixed income securities
Exchange traded funds (ETF)

Valuation based on observable market data

When quoted prices in active markets are not available, the fair value of financial assets/liabilities is preferably estimated on the basis of valuation techniques based on observable market data.

The following financial assets/liabilities are classified as level two in the valuation hierarchy:

Currency derivatives, equity options and forward rate agreements, in which fair value is derived from the value of underlying instruments. These derivatives are valued using common valuation techniques for derivatives (option pricing models etc.).
Equity funds, bond funds, hedge funds and combination funds, in which fair value is estimated based on the fair value of the underlying investments of the funds.
Bonds, certificates or index bonds that are unlisted, or that are listed but where transactions are not occurring regularly. The unlisted instruments in this category are valued based on observable yield curves and estimated credit spreads where applicable.
Listed subordinated notes where transactions are not occurring regularly.

Valuation based on non-observable market data

The following financial assets are classified as level three in the valuation hierarchy:

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

The valuation process for financial assets classified as level three

Sensitivity financial assets level three

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137

Gjensidige Forsikring ASA Notes:	213

1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Financial assets
Financial derivatives

Financial assets at fair value through profit or loss, designated upon initial recognition


Loans and receivables







Financial liabilities
Financial derivatives


Financial liabilities at amortised cost

NOK millions	Notes	Carrying amount 2021	Fair value 2021	Carrying amount 2020	Fair value 2020
Financial assets
Financial derivatives
Financial derivatives at fair value through profit or loss		695.5	695.5	1,294.3	1,294.3
Financial assets at fair value through profit or loss, designated upon initial recognition
Shares and similar interests	14	6,433.2	6,433.2	5,522.4	5,522.4
Bonds and other fixed income securities		27,376.9	27,376.9	28,245.9	28,245.9
Loans		1.8	1.8	1.9	1.9
Loans and receivables
Bonds and other fixed income securities classified as loans and receivables	15	15,429.3	15,786.6	15,208.3	16,210.0
Loans		2,039.2	2,039.2	2,371.5	2,371.5
Receivables related to direct operations and reinsurance		7,940.7	7,940.7	7,460.9	7,460.9
Receivables from group companies	20	177.2	177.2	26.1	26.1
Other receivables		273.2	273.2	364.5	364.5
Cash and cash equivalents		1,875.9	1,875.9	2,365.0	2,365.0
Total financial assets		62,242.8	62,600.2	62,860.8	63,862.6
Financial liabilities
Financial derivatives
Financial derivatives at fair value through profit or loss		456.7	456.7	767.4	767.4
Financial derivatives subject to hedge accounting		40.9	40.9
Financial liabilities at amortised cost
Subordinated debt	18	2,396.1	2,418.0	1,198.9	1,209.0
Other liabilities	19	2,641.0	2,641.0	2,615.4	2,615.4
Liabilities related to direct insurance and reinsurance		467.4	467.4	497.9	497.9
Liabilities within the group	20	231.9	231.9	85.4	85.4
Total financial liabilities		6,234.0	6,255.9	5,164.9	5,175.0
Gain/(loss) not recognised in profit or loss			335.4		991.6

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Valuation hierarchy 2021

The table shows a valuation hierarchy where financial assets/liabilities are divided into three levels based on the method of valuation.

NOK millions

	Level 1	Level 2 Valuation techniques based on observable market data	Level 3 Valuation techniques based on non observable market data	Total
NOK millions	Quoted prices in active markets

Financial assets
Financial derivatives
Financial derivatives at fair value through profit or loss		695.5		695.5
Financial assets at fair value through profit or loss, designated upon initial recognition
Shares and similar interests	142.0	4,691.4	1,599.8	6,433.2
Bonds and other fixed income securities	10,682.7	15,912.3	782.0	27,376.9
Loans			1.8	1.8
Financial assets at amortised cost
Bonds and other fixed income securities classified as loans and receivables		15,786.6		15,786.6
Loans			2,039.2	2,039.2
Financial liabilities
Financial derivatives
Financial derivatives at fair value through profit or loss	351.4	105.3		456.7
Financial derivatives subject to hedge accounting		40.9		40.9
Financial liabilities at amortised cost
Subordinated debt		2,418.0		2,418.0

Financial assets
Financial derivatives

Financial assets at fair value through profit or loss, designated upon initial recognition



Financial assets at amortised cost


Financial liabilities
Financial derivatives


Financial liabilities at amortised cost

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Valuation hierarchy 2020

The table shows a valuation hierarchy where financial assets/liabilities are divided into three levels based on the method of valuation.

NOK millions

NOK millions	Level 1 Quoted prices in active markets	Level 2 Valuation techniques based on observable market data	Level 3 Valuation techniques based on non observable market data
				Total
Financial assets
Financial derivatives
Financial derivatives at fair value through profit or loss		1,294.3		1,294.3
Financial assets at fair value through profit or loss, designated upon initial recognition
Shares and similar interests	146.2	4,099.0	1,277.3	5,522.4
Bonds and other fixed income securities	11,893.0	16,074.9	277.9	28,245.9
Loans			1.9	1.9
Financial assets at amortised cost
Bonds and other fixed income securities classified as loans and receivables		16,210.0		16,210.0
Loans			2,371.5	2,371.5
Financial liabilities
Financial derivatives
Financial derivatives at fair value through profit or loss		767.4		767.4
Financial liabilities at fair value through profit or loss, designated upon initial recognition
Interest-bearing liabilities at fair value through profit or loss
Financial liabilities at amortised cost
Subordinated debt		1,209.0		1,209.0

Financial assets Financial derivatives
Financial assets at fair value through profit or loss, designated upon initial recognition


Financial assets at amortised cost
Financial liabilities Financial derivatives
Financial liabilities at fair value through profit or loss, designated upon initial recognition Interest-bearing liabilities at fair value through profit or loss
Financial liabilities at amortised cost

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Appendix 2021	271

Reconciliation of financial assets valued based on non-observable market data (level 3) 2021

		Net realised/ unrealised gains				Transfers			Amount of net realised/unreali sed gains recognised in profit or loss that are attributable to instruments
NOK millions	As at 1.1.2021	recognised in profit or loss	Purch ases	Sales	Settle ments	into/out of level 3	Currency effect	As at 31.12.2020	held as at 31.12.2021
Shares and similar interests	1,277.3	306.6	187.8	(157.4)		(14.2)	(0.3)	1,599.8	307.1
Bonds and other fixed income securities	277.9	41.1	582.5	(98.2)			(21.3)	782.0
Loans	1.9			(0.1)				1.8
Total	1,557.1	347.7	770.2	(255.8)		(14.2)	(21.6)	2,383.5	307.1

Reconciliation of financial assets valued based on non-observable market data (level 3) 2020

Total
Loans
Bonds and other fixed income securities
Shares and similar interests

		Net realised/ unrealised gains					Amount of net realised/unreali sed gains recognised in profit or loss that are attributable to instruments
							held as at 31.12.2020
							(126.9)

							1.8
Total	2,016.9	(144.4)	164.1	(537.6)	58.1	1,557.1	(125.1)

es	20		2	1
----	----	--	---	---	--

Reconciliation of liabilities arising from financing activities 2021

				Non-cash flows
			Exchange		As at
NOK millions	As at 1.1.2021	Cash flows	Aquisitions	differences Other changes	31.12.2021
Perpetual Tier 1 capital ¹	1,002.2	196.8		6.2	1,205.2
Subordinated debt	1,198.9	1,196.4		0.8	2,396.1

¹ Including accrued interest, NOK 8.3 million.

Reconciliation of liabilities arising from financing activities 2020
		Non-cash flows
			Exchange		As at
NOK millions	As at 1.1.2020	Cash flows	Aquisitions	differences Other changes	31.12.2020
Perpetual Tier 1 capital ¹	1,002.3			(0.0)	1,002.2
Subordinated debt	1,198.6			0.3	1,198.9

¹ Including accrued interest, NOK 2.6 million.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233

7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

14. Shares and similar interests

NOK millions	Organisation number		NOK millions	Organisation number	Type of fund 31.12.2021
Gjensidige Forsikring ASA			Funds 1
Norwegian financial shares and primary capital certificates			Shenkman Global Convertible Bond Fund		Convertible bond fund	1,325.7
SpareBank 1 Østlandet	920 426 530	8.9	Nordea Stabile Aksjer Global	989 851 020	Equity fund	577.2
SpareBank 1 SMN	937 901 003	7.8	RBC Funds Lux - Global Equity Focus Fund		Equity fund	520.1
Sparebanken Vest	832 554 332	6.8	AB SICAV I - Global Core Equity Portfolio		Equity fund	424.7
Sogn Sparebank	837 897 912	0.7	Storebrand Global Indeks	989 133 241	Equity fund	411.6
Total Norwegian financial shares and primary capital certificates		24.2	Allspring Global (Lux) Worldwide Fund - Emerging Markets Equity Fund		Equity fund	386.0
			JSS Sustainable Equity - Global Thematic		Equity fund	339.8
Other shares SOS International A/S		108.8	American Century Concentrated Global Growth Equity Fund		Equity fund	177.6
Cloudberry Clean Energy ASA	919 967 072	53.2	Incentive Active Value Fund Cl. A EUR		Hedge fund	164.7
Sampo Oyj		33.4	Unrestricted
Sikri Holding AS	823 843 542	18.3	HitecVision VI LP		Private equity fund	158.8
Telenor ASA	982 463 718	15.6	Danske Invest Norske Aksjer Institusjon I	981 582 020	Equity fund	147.2
Paydrive AB		14.2	Storebrand Norge I	981 672 747	Equity fund	135.2
Norse Atlantic ASA	926 645 986	12.2			Private equity
Helgeland Invest AS	939 150 234	11.0	Northzone VIII LP		fund	124.5
Sector Asset Management AS	887 139 342	9.5			Private equity
Entra ASA	999 296 432	7.9	Norvestor VII LP		fund	118.0
Mimiro Holding AS	821 186 382	7.4	HitecVision Private Equity V LP		Private equity	99.1
Scalepoint Technologies Limited		7.3			fund
Helgeland Industriutvikling AS	826 335 912	5.7	Signord IS - A		Private equity	97.6
Nordic Credit Rating AS	917 685 991	5.5	Invesco Credit Partners LP		fund Hedge fund	83.7
Orkla ASA	910 747 711	5.1			Private equity
Alm. Brand A/S		4.7	HitecVision VII LP		fund	66.8
Storebrand ASA	916 300 484	4.2			Private equity
Bonheur ASA	830 357 432	3.6	HitecVision Private Equity IV LP		fund	53.0
Aker BP ASA	989 795 848	3.5	Barings Global Special Situations Credit Fund		Hedge fund	52.2
Deep Value Driller AS	926 410 652	2.9	NPEP Erhvervsinvest IV IS		Private equity	43.8
Other shares		29.8			fund
Total other shares		363.7	HitecVision Asset Solution LP		Private equity fund	41.6
			Other funds			489.6
			Total funds			6,038.5

¹ Norwegian Private Equity funds organised as internal partnerships do not have organisation

Shares and similar interests owned by branches

Shares and similar interests owned by Gjensidige	6.8
Forsikring ASA, Danish branch
Total shares and similar interests owned by
branches	6.8
Total shares and similar interests owned by
	6,433.2
Gjensidige Forsikring ASA

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Appendix 2021	271

15. Loans and receivables

NOK millions 2021 2020 Loans and receivables Bonds classified as loans and receivables 15,429.3 15,208.3 Other loans 3.7 5.8 Total loans and receivables 15,433.0 15,214.1 Other receivables Receivables in relation with asset management 128.4 196.1 Other receivables 33.8 57.4

NOK millions	2021	2020
Loans and receivables
Bonds classified as loans and receivables	15,429.3	15,208.3
Other loans	3.7	5.8
Total loans and receivables	15,433.0	15,214.1
Other receivables
Receivables in relation with asset management	128.4	196.1
Other receivables	33.8	57.4
Total other receivables	162.2	253.5

Bonds are securities classified as loans and receivables in accordance with IAS 39. Receivables in relation with asset management is short-term receivables regarding financial investments.

Beyond the liabilities that arise from insurance contracts, Gjensidige Forsikring has not issued guarantees for which provisions have been made.

16. Insurance-related liabilities and reinsurers' share

Claims and claims handling costs

Increase in liabilities

NOK millions		2021			2020
Movements in insurance-related liabilities and reinsurers' share	Gross		Reinsurers' share Net of reinsurance 1	Gross		Reinsurers' share Net of reinsurance 1
Claims and claims handling costs
Claims reported and claims handling costs	12,161.4	(516.6)	11,644.7	13,843.6	(554.5)	13,289.1
Claims incurred, but not reported	15,936.0		15,936.0	13,849.7		13,849.7
Total as at 1 January	28,097.3	(516.6)	27,580.7	27,693.3	(554.5)	27,138.8
Claims paid, prior year claims	(7,050.5)		(7,050.5)	(7,515.0)		(7,515.0)
Increase in liabilities
Arising from current year claims	19,751.6	(167.6)	19,584.0	18,834.8	(359.6)	18,475.2
- of this paid	(10,788.7)	128.6	(10,660.1)	(10,703.8)	480.9	(10,222.8)
Arising from prior years (run-off)	(1,370.1)	114.1	(1,256.0)	(1,069.1)	(39.8)	(1,108.9)
Other changes, including effects from discounting	87.0		87.0	176.0		176.0
Exchange differences	(476.0)	17.8	(458.2)	681.1	(43.7)	637.4
Total as at 31 December	28,250.7	(423.7)	27,827.0	28,097.3	(516.6)	27,580.7
Claims reported and claims handling costs	14,329.8	(286.9)	14,042.9	12,161.4	(516.6)	11,644.7
Claims incurred, but not reported	13,920.9	(136.8)	13,784.0	15,936.0		15,936.0
Total as at 31 December	28,250.7	(423.7)	27,827.0	28,097.3	(516.6)	27,580.7
Provisions for unearned premiums
As at 1 January	10,792.8	(39.9)	10,752.9	10,003.0	(42.3)	9,960.7
Increase in the period	29,225.1	(588.3)	28,636.8	27,195.6	(646.7)	26,548.9
Earned in the period	(28,491.7)	589.3	(27,902.4)	(26,608.4)	650.3	(25,958.1)
Exchange differences	(139.6)	0.8	(138.8)	202.7	(1.3)	201.4
Total as at 31 December	11,386.7	(38.2)	11,348.5	10,792.8	(39.9)	10,752.9

Provisions for unearned premiums

¹ For own account.

NOK millions	2021	2020
Discounted claims provision, gross - annuities	6,049.3	6,335.7
Nominal claims provision, gross - annuities	6,437.7	6,419.7

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Appendix 2021	271

The next year, run-off gains are expected to be around NOK 1,000 million.

17. Equity

Share capital

At the end of the year the share capital consisted of 500 million ordinary shares with a nominal value of NOK 2, according to the statutes. All issued shares are fully paid in.

The owners of ordinary shares have dividend and voting rights. There are no rights attached to the holding of own shares.

In thousand shares	2021	2020
Issued 1 January	500,000	500,000
Issued 31 December	500,000	500,000

Own shares

At the end of the year the number of own shares was 39,696 (11,800).

Share premium

Payments in excess of the nominal value per share are allocated to share premium.

Other paid-in capital

Other paid in equity consists of wage costs that are recognised in profit and loss as a result of the share purchase program for employees.

Perpetual Tier 1 capital

Perpetual Tier 1 capital consists of a perpetual hybrid instrument in Forsikring ASA, classified as equity.

Exchange differences

Remeasurement of the net defined benefit liability/asset

Other earned equity

Natural perils capital

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

All insurance companies that take out fire insurance in Norway are obliged under Norwegian law to be a member of the Norwegian Natural Perils Pool. Objects in Norway and Svalbard that are insured against fire damage are also insured against natural damage, if the damage to the thing in question is not covered by other insurance. Natural peril is defined as claim in direct relation to natural hazard, such as landslide, storm, flood, storm surge, earthquake or eruption. It is the individual insurance company that is the insurer, ie issues insurance certificates, settles and has direct contact with the customers. The Natural Perils Pool administers the equalization between the companies. Natural perils capital is capital that can only be used to cover claims for natural damage, but which in an insolvent situation can also be used to cover other obligations.

Guarantee scheme

Dividend

Proposed and approved dividend per ordinary share

NOK millions	2021	2020
As at 31 December NOK 7.70 kroner (7.40) based on profit for the year 1	3,850.0	3,700.0
NOK 0.00 kroner (6.40) based on excess capital distribution		3,200.0

Shareholders

Shareholders owning more than 1 per cent

Investor	Ownership in %
Gjensidigestiftelsen	62.24 %
Folketrygdfondet	4.23 %
DWS Investments (Frankfurt)	2.91 %
Nordea Investment Mgt (Copenhagen)	1.42 %
BlackRock Investment Mgt – Index (San Fransisco)	1.31 %
1832 Asset Mgt (Dynamic Funds) (Toronto)	1.31 %
BlackRock Investment Mgt (London)	1.21 %
Vanguard Group (Philadelphia)	1.02 %

The shareholder list is based on the VPS shareholder registry as of 31 December 2021.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

18. Hybrid capital

Subordinated debt

	FRN Gjensidige Forsikring ASA 2021/2051 SUB	FRN Gjensidige Forsikring ASA 2014/2044 SUB
ISIN	NO0010965437	NO0010720378
Issuer		Gjensidige Forsikring Gjensidige Forsikring
Principal, NOK millions	1,200	1,200
Currency	NOK	NOK
Issue date	07/04/2021	02/10/2014
Maturity date	07/04/2051	03/10/2044
First call date	07/10/2026	02/10/2024
Interest rate	NIBOR 3M + 1.10 %	NIBOR 3M + 1.50 %

General terms

Regulatory regulation	Solvency II	Solvency II
Regulatory call	Yes	Yes
Conversion right	No	No

Perpetual Tier 1 capital

FRN Gjensidige Forsikring ASA 2016/PERP C HYBRID

ASA

Solvencv
ਰਟ

ISIN	NO0010965429
Issuer	Gjensidige Forsikring ASA
Principal, NOK millions	1,200
Currency	NOK
Issue date	07/04/2021
Maturity date	Perpetual
First call date	07/04/2026
Interest rate	NIBOR 3M + 2,25 %
General terms
Regulatory regulation	Solvency II
Regulatory call	Yes
Conversion right	No

19. Provisions and other liabilities

Solvencv II

ರ್ಧಿಗಳು ಮಾಡಿದ್ದಾರೆ. ಇದರ್ಗದ ಮಾರ್ಥಿಗಳು ಮಾರ್ಗದ ಮಾರ್ಗದ ಮಾರ್ಗದ ಮಾರ್ಗದ ಮಾರ್ಗದ ಮಾರ್ಗದ ಮಾರ್ಗ್ನಿಯ ಮೊದಲ್ಲಿ ಮಾರ್ಗ್ನಿ ಮಾರ್ಗ್ (೧೯೭೬) ನಿರ್ಮಿಸಿದ ಮಾರ್ಗ್ಯಾಂಡಿಯೋಗಿ ಮಾರ್ಗ್ (೧೯೭೬) ನಿರ್ಮಿಸಿದ ಮಾ

ಲ

NOK millions	2021	2020
Other provisions and liabilities
Restructuring costs 1	56.5	65.5
Bonus provisions	181.0	175.9
Other provisions 2	349.5	47.6
Total other provisions and liabilities	587.1	288.9
Restructuring costs 1
Provision as at 1 January	65.5	71.6
New provisions	12.0	18.4
Reversal of provisions	0.0	0.0
Provisions used during the year	(20.2)	(25.5)
Exchange rate difference	(0.7)	1.0
Provision as at 31 December	56.5	65.5

1 In 2021 NOK 12.0 million was allocated to restructuring provision, due to a decision of changes in processes in Norway and Denmark. The processes have been communicated to all parties affected by the changes.

² In 2020 most of Other provisions were classified under Other liabilities.

Other liabilities
Outstanding accounts Fire Mutuals	20.0	48.2
Accounts payable	126.6	116.7
Liabilities to public authorities	264.4	284.5
Motor insurance tax to Norwegian Motor Insurers' Bureau (TFF)	1,822.1	1,651.9
Other liabilities	408.0	514.1
Total other liabilities	2,641.0	2,615.4
Other accrued expenses and deferred income
Liabilities to public authorities	48.6	59.8
Accrued personnel costs	299.7	287.7
Other accrued expenses and deferred income	31.1	18.4
Total other accrued expenses and deferred income	379.4	365.9

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Appendix 2021	271

20. Related party transactions

Overview

Ultimate parent company

	Registered office	Interest held
Ultimate parent company
Gjensigestiftelsen holds 62.24 per cent of the shares in Gjensidige Forsikring ASA	Oslo, Norway
Other related parties/cooperating companies 1
Fire Mutuals	All over the country, Norway
Gjensidige Pensjonskasse	Oslo, Norway	94.7 %

Other related parties/cooperating companies 1

¹ Cooperating companies are defined as companies with which Gjensidige Forsikring has entered into a long-term strategic alliance.

Transactions

Income statement

The table below shows transactions the parent company has with related parties recognised in the income statement.

Gain and losses on sale and impairment losses on subsidi
Interest income and expenses
Administration expenses
Earned premiums written and gross claims

2021		2020
Income	Expense	Income	Expense
38.0	6.9	32.8	45.7
207.7	1,073.1	175.0	927.6
27.4		44.5
	70.9	5.6
273.1	1,150.9	257.9	973.3

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Appendix 2021	271

Dividends

The table below shows a summary of dividend to/from ultimate parent company and related parties.

Dividends

	2021			2020
NOK millions	Received	Given	Received	Given
Dividends
Gjensidigestiftelsen (proposed and declared)	0.0	2,396.2		3,049.8
Gjensidigestiftelsen (special dividend paid in 2021)	0.0	1,244.8
Gjensidige Pensjonsforsikring AS - inntektsført, ikke mottatt	150.0
Lokal Forsikring AS	6.5
Total dividends	156.5	3,641.0		3,049.8

Balances

The table below shows a summary of receivables/liabilities the parent company has from/to related parties.

	2021		2020
NOK millions	Receivables	Liabilities	Receivables	Liabilities
Non-interest-bearing receivables and liabilities	177.2	231.9	26.1	85.4
Interest-bearing receivables and liabilities - joint ventures held for sale	1,735.4		2,365.6
Subordinated loan - Gjensidige Pensjonsforsikring AS	300.0
Reinsurance deposits, premiums and claims provision		97.0		105.8
Total balances within the Group	2,212.6	328.9	2,391.7	191.2
Fire Mutuals and Gjensidige Pensjonskasse 2	111.0	33.7	111.0	48.2
Total balances	2,323.6	362.6	2,502.7	239.4

² Gjensidige Forsikring ASA is sponsor of Gjensidige Pensjonskasse and has contributed with funds equivalent to NOK 111.0 million.

Guarantees

Gjensidige Forsikring ASA is responsible externally for any insurance claim arising from the cooperating mutual fire insurers' fire insurance business, see note 21.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Appendix 2021	271

21. Contingent liabilities

NOK millions	2021	2020
Guarantees and committed capital
Committed capital, not paid	2,323.0	582.8
Credit facility Oslo Areal	2,264.9	1,634.4

Gjensidige Forsikring is liable externally for any insurance claim arising in the cooperating mutual fire insurers' fire insurance operations.

22. Share-based payment

Description of the share-based payment arrangements

As at 31 December 2021, Gjensidige has the following share-based payment arrangements:

Share-based remuneration for executive personnel with settlement in equity and cash (remuneration scheme)
Equity-settled share savings program for employees

Share-based remuneration for executive personnel with settlement in equity and cash (remuneration scheme)

Gjensidige has established equity-settled share-based payment for the group management and more explicitly defined executive personnel.

Equity-settled share savings program for employees

corresponds to the maximum tax-exempt discount. Employees will receive one bonus share

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Appendix 2021	271

for every four shares they have owned for more than two years, provided that they are still employed by the Company or have become retired. No other vesting conditions exists in this arrangement.

Fair value measurement

The following assumptions were used in the calculation of fair value at the time of calculation

	Remuneration scheme		Share savings
	2021	2020	2021	2020
Weighted average share price (NOK)	201.20	189.00	203.13	192.65
Expected turnover	N/A	N/A	10%	10%
Expected sale	N/A	N/A	5%	5%
Lock-in period (years)	3	3	2	2
Expected dividend (NOK per share) 1	9.93	6.45	9.93	6.45

Payroll expenses

NOK millions	2021	2020
Share-based remuneration for key personnel	5.7	7.0
Share savings programme for employees	14.7	8.9
Total expenses (note 7)	20.5	16.0

Share savings programme

	2021	2020
The number of bonus shares
Outstanding 1 January	86,928	90,484
Granted during the period	65,668	46,253
Forfeited during the period	(2,604)	(2,549)
Released during the period	(37,397)	(42,514)
Cancelled during the period	(3,835)	(4,569)
Movement to/(from) during the period	(87)	(177)
Outstanding 31 December	108,673	86,928
Exercisable 31 December	0	0
Average remaining life of outstanding bonus shares	1.04	0.96
Weighted average fair value of bonus shares granted	179.88	175.94
Weighted average share price of bonus shares released during the period	203.13	192.65

Weighted average exercise price will always be 0, since the scheme comprises bonus shares and not options.

Remuneration scheme

		Number of cash		Number of cash
	Number of shares 2021	settled shares 2021	Number of shares 2020	settled shares 2020
The number of shares
Outstanding 1 January	32,967	30,308	30,190	27,405
Granted during the period	13,300	12,400	16,249	15,065
Exercised during the period	(14,655)	(13,475)	(15,512)	(14,036)
Cancelled during the period	(2,991)	(2,617)
Modification dividend during the period	1,357	1,259	2,040	1,874
Outstanding 31 December	29,978	27,875	32,967	30,308
Exercisable 31 December	0	0	0	0
Average remaining life of outstanding shares	0.78	0.79	0.80	0.80
			2021	2020
Weighted average fair value of shares granted 2			201.20	189.00
Weighted average share price of shares released during the period			206.41	201.02
Fair value of shares granted that are to be settled in cash			214.00	191.40

² The fair value is calculated based on the market value of the share at the time of allocation.

Weighted average exercise price will always be 0, since the scheme comprises shares and not options.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Notes:
1. Accounting policies	217
2. Use of estimates	227
3. Risk and capital management	228
4. Premiums and claims etc. in general insurance 229
5. Shares in subsidiaries and joint ventures	231
6. Net income from investments	233
7. Expenses	234
8. Remuneration to related parties	235
9. Tax	237
10. Pension	238
11. Goodwill and intangible assets	244
12. Owner-occupied property, plant
and equipment	247
13. Financial assets and liabilities	249
14. Shares and similar interests	255
15. Loans and receivables	256
16. Insurance-related liabilities and
reinsurers' share	256
17. Equity	257
18. Hybrid capital	259
19. Provisions and other liabilities	259
20. Related party transactions	260
21. Contingent liabilities	262
22. Share-based payment	262
23. Events after the balance sheet date	264

Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Appendix 2021	271

Shares and right to shares held by the senior group management and the Board

Number	Shares not exercised 2021	Shares held 2021	Shares not exercised 2020	Shares held 2020

The senior group management
Helge Leiro Baastad, CEO	14,928	76,255	15,330	65,383
Jørgen Inge Ringdal, Executive Vice President	4,889	30,175	5,116	28,263
Catharina Hellerud, Executive Vice President	5,381	25,614	5,509	23,611
Mats C. Gottschalk, Executive Vice President	5,568	22,490	5,875	20,331
Jostein Amdal, Executive Vice President	6,178	19,845	6,311	17,657
Janne Merethe Flessum, Executive Vice President	4,309	6,535	3,646	5,226
Aysegul Cin, Executive Vice President	3,844	2,657	2,736	1,803
Lars Gøran Bjerklund, Executive Vice President	4,326	1,430	3,037	403
Rene Fløystøl, Executive Vice President	1,307	3,763	111	3,286
Tor Erik Silset, Executive Vice President	1,322	3,960	170	3,390

The Board
Gisele Marchand, Chairman		1,481		1,481
Eivind Elnan		2,200		2,200
Hilde Merete Nafstad		2,946		2,946
Vibeke Krag		1,500		1,500
Terje Seljeseth		2,505
Tor Magne Lønnum		12,000		11,000
Gunnar Sellæg
Ellen Kristin Enger, staff representative		1,211		1,005
Ruben Pettersen, staff representative		513		202
Sebastian Buur Gabe Kristiansen, staff

Number	Shares not exercised 2021	Shares held 2021	Shares not exercised 2020	Shares held 2020
The senior group management
Helge Leiro Baastad, CEO	14,928	76,255	15,330	65,383
Jørgen Inge Ringdal, Executive Vice President	4,889	30,175	5,116	28,263
Catharina Hellerud, Executive Vice President	5,381	25,614	5,509	23,611
Mats C. Gottschalk, Executive Vice President	5,568	22,490	5,875	20,331
Jostein Amdal, Executive Vice President	6,178	19,845	6,311	17,657
Janne Merethe Flessum, Executive Vice President	4,309	6,535	3,646	5,226
Aysegul Cin, Executive Vice President	3,844	2,657	2,736	1,803
Lars Gøran Bjerklund, Executive Vice President	4,326	1,430	3,037	403
Rene Fløystøl, Executive Vice President	1,307	3,763	111	3,286
Tor Erik Silset, Executive Vice President	1,322	3,960	170	3,390
The Board
Gisele Marchand, Chairman		1,481		1,481
Eivind Elnan		2,200		2,200
Hilde Merete Nafstad		2,946		2,946
Vibeke Krag		1,500		1,500
Terje Seljeseth		2,505
Tor Magne Lønnum		12,000		11,000
Gunnar Sellæg
Ellen Kristin Enger, staff representative		1,211		1,005
Ruben Pettersen, staff representative		513		202
Sebastian Buur Gabe Kristiansen, staff

Number	Shares not exercised 2021	Shares held 2021	Shares not exercised 2020	Shares held 2020
The senior group management
Helge Leiro Baastad, CEO	14,928	76,255	15,330	65,383
Jørgen Inge Ringdal, Executive Vice President	4,889	30,175	5,116	28,263
Catharina Hellerud, Executive Vice President	5,381	25,614	5,509	23,611
Mats C. Gottschalk, Executive Vice President	5,568	22,490	5,875	20,331
Jostein Amdal, Executive Vice President	6,178	19,845	6,311	17,657
Janne Merethe Flessum, Executive Vice President	4,309	6,535	3,646	5,226
Aysegul Cin, Executive Vice President	3,844	2,657	2,736	1,803
Lars Gøran Bjerklund, Executive Vice President	4,326	1,430	3,037	403
Rene Fløystøl, Executive Vice President	1,307	3,763	111	3,286
Tor Erik Silset, Executive Vice President	1,322	3,960	170	3,390

The Board
Gisele Marchand, Chairman		1,481		1,481
Eivind Elnan		2,200		2,200
Hilde Merete Nafstad		2,946		2,946
Vibeke Krag		1,500		1,500
Terje Seljeseth		2,505
Tor Magne Lønnum		12,000		11,000
Gunnar Sellæg
Ellen Kristin Enger, staff representative		1,211		1,005
Ruben Pettersen, staff representative		513		202
Sebastian Buur Gabe Kristiansen, staff representative		417

23. Events after the balance sheet date

The sale of Oslo Areal was completed on 12 January 2022 and resulted in a gain of NOK 0.8 billion to be recorded in the first quarter 2022.

No further significant events have occurred after the balance sheet date.

Annual report 2021 | 265

Content

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Statement from the Board and the CEO

The Board of Directors and the CEO have today considered and approved the integrated annual report for Gjensidige Forsikring ASA, the Group and parent company, for the 2021 calendar year and as of 31 December 2021. The integrated annual report includes the annual accounts, the Directors' report and statements on corporate governance and corporate social responsibility.

The consolidated accounts have been prepared in accordance with the EU-approved IFRS standards and pertaining interpretation statements applicable as of 31 December 2021, disclosure requirements that follow from the Norwegian Accounting Act as of 31 December 2021, and more detailed disclosure requirements that follow from the Regulations relating to annual accounts for general insurance companies (Regulations No 1775 of 18 December 2015) issued pursuant to the accounting Act.

We hereby declare that, to the best of our knowledge:

the 2021 annual accounts for the Group and the parent company have been prepared in accordance with applicable accounting standards;
the information in the accounts gives a true and fair picture of the Group and the parent company's assets, liabilities, financial position and overall performance as of 31 December 2021;
the integrated annual report, prepared in accordance with the International Integrated Reporting Framework (IR), meets the requirements for the content of the Directors' report, the statement on corporate governance, and the Global Reporting Initiative's (GRI) standards for corporate social responsibility and sustainability reporting;
the integrated annual report for the Group and the parent company, including the Directors' report, gives a true and fair picture of
the Group and the parent company's development, performance and position,
key risk and uncertainty factors facing the Group and the parent company.

Gisele Marchand Chair

Eivind Elnan Board member

Gunnar Robert Sellæg Board member

Ellen Kristin Enger Board member

Vibeke Krag Board member

Tor Magne Lønnum Board member

Ruben Pettersen Board member

Helge Leiro Baastad CEO

Hilde Merete Nafstad Board member

Terje Seljeseth Board member

Sebastian Buur Gabe Kristiansen Board member

February 2022 The Board of Gjensidige Forsikring ASA

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Auditor`s report

To the General Meeting of Gjensidige Forsikring ASA INDEPENDENT AUDITOR'S REPORT

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Gjensidige Forsikring ASA, which comprise:

The financial statements of the parent company Gjensidige Forsikring ASA (the Company), which comprise the balance sheet as at 31 December 2021, the income statement, statement of changes in equity and cash flow statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and
The consolidated financial statements of Gjensidige Forsikring ASA and its subsidiaries (the Group), which comprise the balance sheet as at 31 December 2021, the income statement, statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion:

the financial statements comply with applicable statutory requirements,
the financial statements give a true and fair view of the financial position of the Company as at 31 December 2021, and its financial performance and its cash flows for the year then ended in accor-
dance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway, and • the financial statements give a true and fair view of the financial
position of the Group as at 31 December 2021, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the EU.

Our opinion is consistent with our additional report to the Audit Committee.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company and the Group as required by laws and regulations and the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation (537/2014) Article 5.1 have been provided.

We have been the auditor of the Company for 5 years from the election by the general meeting of the shareholders on 6 April 2017 for the accounting year 2017.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Deloitte AS Dronning Eufemias gate 14, Postboks 221 Sentrum NO-0103 Oslo, Norway

Tel: +47 23 27 90 00 www.deloitte.no

-

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Appendix 2021	271

Measurement of claims provision

Key audit matter How the matter was addressed in the audit Measurement of the Groups claims provisions is based on different methods and models and a number of assumptions and estimates related to future developments that are uncertain. The accounting principles are described in note 1, significant accounting estimates are described in in note 2, insurance risk is described in note 3 and insurance provisions are specified in note 16. The calculation models, assumptions and estimates applied are of great significance when measuring the claims provisions. The most important assumptions and estimates relate to: • Estimate of future claims payments • Determination of the margin included in the claims provisions to address the uncertainty ons.

related to calculated provisions.

The calculation models, assumptions and estimates are essential for the measurement of claims provisions and are therefore identified as a key audit matter.

Gjensidige has established various control activities related to the measurement of claims provisi-

We assessed and tested the design of control activities related to data source, calculation models and determination of assumptions. For a sample of these controls, we tested if they operated effectively in the reporting period.

We challenged and evaluated the choice of models and the use of assumptions and estimates in the measurement of claims provisions.

We assessed whether the disclosure information related to claims provisions is adequate.

We have involved our own actuaries in the work to assess choice of models and the use of assumpti-

ons.

IT systems: Controls relevant for financial reporting and data quality

sourced to service providers. The IT systems are essential to recording and reporting of transactions and to provide data for significant estimates and calculations as well to as obtain relevant additional information. Refer to note 3 for further information

Key audit matter How the matter was addressed in the audit Gjensidige has an extensive IT environment with a variety of different IT systems that support financial reporting. IT systems include both in-house developed and standardized systems with different degrees of adaptations and changes. A significant part of the IT operations and infrastructure is out-Gjensidige has established an overall governance model and control activities related to its IT systems. We have obtained an understanding of the overall governance model for IT systems that are relevant for financial reporting.

on operational risk in Gjensidige.

Good governance and control of IT systems in Gjensidige and service providers are essential for ensuring accurate, complete and reliable financial reporting and is thus identified as a key audit mat-

ter.

We have assessed the design of control activities related to IT operations that are relevant for financial reporting, change management and access controls. For a sample of these controls, we tested if they operated effectively in the reporting period.

We assessed the third party confirmation (ISAE 3402) from several of Gjensidige's service providers to assess whether the service provider had adequate internal controls in areas that are important for Gjensidige's financial reporting.

We used our own IT specialists to understand the overall governance model for IT systems and in the assessment and testing of control activities related to IT.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270

Appendix 2021	271

The Board of Directors and the Managing Director (management) are responsible for the other information presented in the integrated annual report. The other information comprises information in the annual report but does not include the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover other information.

In connection with our audit of the financial statements, our responsibility is to read the other information presented with the financial statements. The purpose is to consider if there is material inconsistency between the other information presented with the financial statements and the financial statements or our knowledge obtained in the audit, or whether the other information presented with the financial statements otherwise appears to be materially misstated. We are required to report if there is a material misstatement in the other information presented with the financial statements. We have nothing to report in this regard.

Based on our knowledge obtained in the audit, it is our opinion that the other information

is consistent with the financial statements and
contains the information required by applicable legal requirements regarding the Board of Directors' report.

Our opinion about other information applies correspondingly for the statements on Corporate Governance and Corporate Social Responsibility.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway, and for the preparation and true and fair view

of the consolidated financial statements of the Group in accordance with International Financial Reporting Standards as adopted by the EU, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's and the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern. The financial statements of the Company use the going concern basis of accounting insofar as it is not likely that the enterprise will cease operations. The consolidated financial statements of the Group use the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error. We design and perform audit procedures responsive to those risks, and obtain

audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's or the Group's internal control.
evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
conclude on the appropriateness of management's use of the going concern basis of accounting, and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company and the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company and the Group to cease to continue as a going concern.
evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves a true and fair view.
obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on Other Legal and Regulatory Requirements Report on compliance with Regulation on European Single Electronic Format (ESEF)

Opinion

We have performed an assurance engagement to obtain reasonable assurance that the financial statements with file name gjensidigeforsikring-2021-12-31-nb have been prepared in accordance with Section 5-5 of the Norwegian Securities Trading Act (Verdipapirhandelloven) and the accompanying Regulation on European Single Electronic Format (ESEF).

In our opinion, the financial statements have been prepared, in all material respects, in accordance with the requirements of ESEF.

Management's Responsibilities

Management is responsible for preparing, tagging and publishing the financial statements in the single electronic reporting format required in ESEF. This responsibility comprises an adequate process and the internal control procedures which management determines is necessary for the preparation, tagging and publication of the financial statements.

Auditor's Responsibilities

Our responsibility is to express an opinion on whether the financial statements have been prepared in accordance with ESEF. We conducted our work in accordance with the International Standard for Assurance Engagements (ISAE) 3000 – "Assurance engagements other than audits or reviews of historical financial information". The standard requires us to plan and perform procedures to obtain reasonable assurance that the financial statements have been prepared in accordance with the European Single Electronic Format.

As part of our work, we performed procedures to obtain an understanding of the company's processes for preparing its financial statements in the European Single Electronic Format. We evaluated the completeness and accuracy of the iXBRL tagging and assessed management's use of judgement. Our work comprised reconciliation of the financial statements tagged under the European Single Electronic Format with the audited Financial resultsin human-readable format. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Oslo, 16 februay 2022, Deloitte AS

Eivind Skaug statsautorisert revisor

Deloitte AS Dronning Eufemias gate 14, Postboks 221 Sentrum NO-0103 Oslo, Norway

Tel: +47 23 27 90 00 www.deloitte.no

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117

Financial statement including notes 2021	136
Gjensidige Forsikring Group	137
Gjensidige Forsikring ASA	213
Statement from the Board and the CEO	265
Auditor`s report	266
Assurance report sustainability	270
Appendix 2021	271

Oslo, 16 februay 2022, Deloitte AS

Eivind Skaug State Authorised Public Accountant

Frank Dahl Sustainability Expert

Assurance report sustainability

To the Board of Directors of Gjensidige Forsikring ASA INDEPENDENT AUDITOR'S ASSURANCE REPORT ON INTEGRATED ANNUAL REPORT 2021

We have been engaged by the Board of Directors of Gjensidige Forsikring ASA to provide limited assurance in respect of the sustainability information presented in Integrated annual report 2021. The assurance covers information on Key indicators sustainability in Chapter 1, information presented in Chapter 3 - Value creation in Gjensidige and in Appendix 2021, hereinafter referred to as the "Report". Our responsibility is to provide a limited level of assurance on the subject matters concluded on below.

Responsibilities of the Board of Directors

The Board of Directors are responsible for the preparation and presentation of the Report prepared in accordance with GRI Standards, level Core, and other reporting criteria described in the Report. They are also responsible for establishing such internal controls that they determine are necessary to ensure that the information is free from material misstatement, whether due to fraud or error.

Auditor's responsibilities

Our responsibility is to express a limited assurance conclusion on the information in the Report. We have conducted our work in accordance with ISAE 3000 (Revised) Assurance Engagements other than Audits or Reviews of Historical Financial Information, issued by the International Auditing and Assurance Standards Board.

Deloitte AS is subject to International Standard on Quality Control 1 and, accordingly, applies a comprehensive quality control system, including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

We have complied with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, which is fo-

unded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.
The procedures performed in a limited assurance engagement vary in
nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtai
ned is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.
Considering the risk of material misstatement, our work included ana
lytical procedures and interviews with management and individuals
responsible for sustainability management, as well as a review on a
sample basis of evidence supporting the information in the Report.
We believe that our work provides an appropriate basis for us to provi
de a conclusion with a limited level of assurance on the subject mat ters.
Conclusions
Based on our work, nothing has come to our attention causing us not
to believe that:
• Gjensidige has completed a materiality analysis to identify mate
rial sustainability aspects to include in the Report, as described
in the Report and in accordance with the GRI Standards.

Gjensidige has applied procedures to identify, collect, compile and validate information for 2021 to be included in the Report, as described in the Report.
The information presented for 2021 is consistent with data ac cumulated as a result of these procedures and appropriately presented in the Report.

• Gjensidige applies a reporting practice for its sustainability reporting aligned with the Global Reporting Initiative (GRI) Standards reporting principles and the reporting fulfils level Core according to the GRI Standards. Gjensidige's GRI Con tent Index presented in Appendix 1 in the Report, appropri ately reflects where information on each of the disclosures of the GRI Standards can be found in the Gjensidige - Inte grated Annual Report 2021.

Deloitte AS Dronning Eufemias gate 14, Postboks 221 Sentrum NO-0103 Oslo, Norway

Tel: +47 23 27 90 00 www.deloitte.no

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136

Appendix 2021 271

Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136

Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
288 certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

Appendix 1 – GRI Content Index and Board of Directors Report

The integrated annual report 2021 for the Gjensidige group is prepared according to the Global Reporting Initiative (GRI) Standards, the reporting level Core.

In accordance with the GRI Standards, an assessment of relevance has been conducted in order to identify the most relevant sustainability issues for Gjensidige and our stakeholders. This assessment is further elaborated in chapter 3 – Creating added value in Gjensidige. The table below indicates according to which GRI standards we consider the relevance of these issues. References are provided as to where to find the information related to the different GRI elements in our integrated annual report. This encompass both the information providing a partial and a complete description, according to the requirements of the GRI standards. The table below also indicates which reported GRI elements that at the same time comply with the information required for the Board of Directors' Report. In relation to this, general reporting elements which are not compulsory for reporting at the GRI Core level, are also included. In our opinion, the present reporting should mainly be in accordance with the GRI reporting principles, as well as fulfilling the Core level of the GRI Standards. In addition, the Norwegian Accounting Act's requirements on corporate social responsibility are fulfilled.

We have commissioned Deloitte AS to conduct an independent attestation of our reporting, according to the GRI Standards. The attestation is based on the standard ISAE3000 «Revised, assurance engagements other than audits or reviews of historic, financial information», published by the International Auditing and Assurance Standard Boards, and is issued with a moderate degree of certainty. The auditor's statement is cited at page 270.

Abbreviations applied: See next page

GRI Content Index and Board of Directors' report

GRI reference	Requirements for the Board of	Directors' Report Description of the GRI Standards	Comments	Page
General requirements
Organisational profile	Rskl§ 3-3a
102-1		Name of the organisation	Gjensidige Forsikring ASA	1
102-2	NRS 16 2-4	Activities, brands, products, and ser vices	Gjensidige's business model, Our markets, Our insurance segments	19, 30-31, 32-37
102-3	NRS 16 2-4	Location of headquarters	Schweigaardsgate 21, Oslo, Norway
102-4	NRS 16 2-4	Location of operations	Note 5 Gjensidige Forsikring ASA
102-5		Ownership and legal form	Corporate governance, and Our commitment to our owners and cre ditors	110-113, 114-116
102-6		Markets served	Our insurance segments	32-37
102-7		Scale of the organization	Our insurance segments	32-37
102-8		Information on employees and other workers	Our motivated employees	53-65
102-9		Supply chain	Gjensidige's business model	19
102-10		Significant changes to the organization and its supply chain	No substantial changes in 2021; Gjensidige's business model, Our markets, Our insurance segments	19, 30-31, 32-37

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136

Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

	Requirements for the Board of
GRI reference		Directors' Report Description of the GRI Standards	Comments	Page
102-11		Precautionary principle or approach	Included in Sustainability policy, and by the suppliers' requirements, fol lowing the self-declaration on corpo rate social responsibility
102-12		External initiatives	See appendix 3	283-284
102-13		Membership of associations	See appendix 3	283-284
Strategy
102-14	NRS 16 2	Statement from senior decision-maker	Statement from senior decision maker	10-11
102-15	NRS 16 2.7	Key impacts, risks, and opportunities	Gjensidige's strategy	21-25
Ethics and integrity
102-16		Values, principles, standards, and norms of behavior	Our core values Our mission and vision	15, 16
Governance		Our mission and vision
102-18 – 102-37 Rskl §3-3b /	Vphl5-8a	Governance structure	Corporate governance, Emerging risks	110-113, 98-100
102-38,39		Annual total compensation ratio	Our motivated employees	63-64
Stakeholder engagement
102-40		List of stakeholder groups	Creating values for our stakeholders	39-40
102-41		Collective bargaining agreements	Our motivated employees: ILO and cooperation with union representati ves. All employees have full freedom of association. Norway: 58.8 % union members. Denmark: 87.97 % encompassed by collective agreements. Sweden: 97 % union members.	57
102-42		Identifying and selecting stakeholders	Creating values for our stakeholders	39-40
102-43		Approach to stakeholder engagement	Creating values for our stakeholders	39-40
102-44		Key topics and concerns raised	Creating values for our stakeholders	39-40

Abbreviations applied:

Rskl = the Norwegian Accounting Act (Regnskapsloven),

NRS = Norwegian Accounting Standards Board (Norsk Regnskapsstiftelse),

Vphl = the Norwegian Securities Trading Act (Verdipapirhandelloven), Vpf = the Norwegian Securities Regulation (Verdipapirforskriften)

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136

Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

GRI reference	Requirements for the Board of	Directors' Report Description of the GRI Standards	Comments
Reporting practice
102-45		Entities included in the consolidated financial statements
102-46		Defining report content and topic Boun daries
102-47		List of material topics	Creating values for our stakeholders; include. Risk and materiality assess ment
102-48		Restatements of information	Not relevant
102-49		Changes in reporting	About this report
102-50		Reporting period	1.1.2021-31.12.2021
102-51		Date of previous report	1.1.2020-31.12.2020
102-52		Reporting cycle	Annual. In addition, quarterly market reports
102-53		Contact point	https://www.gjensidige.no/group/in vestor-relations/ir-contacts
102-54		Claims of reporting in accordance with the GRI Standards	About this report. Reporting accor ding to the Core level
102-55		GRI content index	See appendix 1
102-56		External assurance	Attestation statement from Deloitte
Issue spesific requirements
Economic topics
103-1 – 103-3	NRS 16 2.5/2.6	Management approach – Economic	Values created 2021 - Financial result
201	Rskl §3-3a	Economic Performance	Statement concerning the annual accounts
201-1	NRS 16 2.5/2.6	Direct economic value generated and distributed	Statement concerning the annual accounts
201-2	NRS 16 2.7/2.10	Financial implications and other risks and opportunities due to climate change	Climate-related financial disclosures (TCFD), Responsible investments, Emerging risks,
201-3		Defined benefit plan obligations and other retirement plans

GRI reference	Requirements for the Board of	Directors' Report Description of the GRI Standards	Comments	Page
Reporting practice
102-45		Entities included in the consolidated financial statements	Note 5 Gjensidige Forsikring ASA	179-180
102-46		Defining report content and topic Boun daries	About this report	3
102-47		List of material topics	Creating values for our stakeholders; include. Risk and materiality assess ment	39-40
102-48		Restatements of information	Not relevant
102-49		Changes in reporting	About this report	3
102-50		Reporting period	1.1.2021-31.12.2021
102-51		Date of previous report	1.1.2020-31.12.2020
102-52		Reporting cycle	Annual. In addition, quarterly market reports
102-53		Contact point	https://www.gjensidige.no/group/in vestor-relations/ir-contacts
102-54		Claims of reporting in accordance with the GRI Standards	About this report. Reporting accor ding to the Core level	3
102-55		GRI content index	See appendix 1	272-279
102-56		External assurance	Attestation statement from Deloitte	266-271
Issue spesific requirements
Economic topics
103-1 – 103-3	NRS 16 2.5/2.6	Management approach – Economic	Values created 2021 - Financial result	117-135
201	Rskl §3-3a	Economic Performance	Statement concerning the annual accounts
201-1	NRS 16 2.5/2.6	Direct economic value generated and distributed	Statement concerning the annual accounts	118
201-2	NRS 16 2.7/2.10	Financial implications and other risks and opportunities due to climate change	Climate-related financial disclosures (TCFD), Responsible investments, Emerging risks,	74-83, 92-93, 98-100
201-3		Defined benefit plan obligations and other retirement plans	Note 10 Pension	186-191

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136

Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

GRI reference	Requirements for the Board of	Directors' Report Description of the GRI Standards	Comments
202		Market presence
202-2		Proportion of senior management hired from the local community	Our motivated employees: All seg ments have locally employed mana gers, with the exception of segment managers for Sweden and Denmark.
204		Procurement practices
204-1		Proportion of spending on local suppli ers	We create value in partnership with our suppliers
205	Rskl §3-3c	Anti-corruption
205-2	NRS 16 2.2	Communication and training about anti corruption policies and procedures	Our internal management system is decisive to our social mission.
205-3	NRS 16 2.2	Confirmed incidents of corruption and actions taken	Effect of our efforts - Good corpora te governance
206		Anti-competitive behavior
206-3	NRS 16 2.2	Legal actions for anti-competitive behavior, anti-trust, and monopoly practices	Effect of our efforts - Good corpora te governance
207		Tax
207-4		Country-by-country reporting	Effect of our efforts - A safer society – Direct and indirect taxes paid local ly, and Note 9.
Environmental topics
103-1 – 103-3	Rskl §3-3a, c	Management approach – Environment	Climate and the environment
301		Materials
301-1	Rskl §3-3a, c	Materials used by weight and volume	Effect of our efforts - Climate and the environment
302		Energy
302-1	Rskl §3-3a, c	Energy consumption within the organi sation	Effect of our efforts - Climate and the environment, Appendix 6 – Climate account

GRI reference	Requirements for the Board of	Directors' Report Description of the GRI Standards	Comments	Page
202		Market presence
202-2		Proportion of senior management hired from the local community	Our motivated employees: All seg ments have locally employed mana gers, with the exception of segment managers for Sweden and Denmark.	60-61
204		Procurement practices
204-1		Proportion of spending on local suppli ers	We create value in partnership with our suppliers	72
205	Rskl §3-3c	Anti-corruption
205-2	NRS 16 2.2	Communication and training about anti corruption policies and procedures	Our internal management system is decisive to our social mission.	101-104
205-3	NRS 16 2.2	Confirmed incidents of corruption and actions taken	Effect of our efforts - Good corpora te governance	105
206		Anti-competitive behavior
206-3	NRS 16 2.2	Legal actions for anti-competitive behavior, anti-trust, and monopoly practices	Effect of our efforts - Good corpora te governance	105
207		Tax
207-4		Country-by-country reporting	Effect of our efforts - A safer society – Direct and indirect taxes paid local ly, and Note 9.	184-185
Environmental topics
103-1 – 103-3	Rskl §3-3a, c	Management approach – Environment	Climate and the environment	66-86
301		Materials
301-1	Rskl §3-3a, c	Materials used by weight and volume	Effect of our efforts - Climate and the environment	85-86
302		Energy
302-1	Rskl §3-3a, c	Energy consumption within the organi sation	Effect of our efforts - Climate and the environment, Appendix 6 – Climate account	84-85, 292-293

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136

Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

	Requirements
GRI reference	for the Board of	Directors' Report Description of the GRI Standards	Comment	Page
305		Emissions
305-1	Rskl §3-3a, c	Direct (Scope 1) GHG emissions	Effect of our efforts - Climate and the environment, Appendix 6 – Climate account	84-85, 292-293
305-2	Rskl §3-3a, c	Energy indirect (Scope 2) GHG emissi ons	Effect of our efforts - Climate and the environment, Appendix 6 – Climate account	84-85, 292-293
305-3	Rskl §3-3a, c	Other indirect (Scope 3) GHG emissions Effect of our efforts - Climate and	the environment, Appendix 6 – Climate account	84-85, 294-296
305-4	Rskl §3-3a, c	GHG emission intensity	Effect of our efforts - Climate and the environment, Appendix 6 – Climate account	84-85, 292-293
305-5	Rskl §3-3a, c	Reduction of GHG emissions	Climate and the environment, TCFD, Effect of our efforts - Climate and the environment, Appendix 6 – Climate account	66-86, 292-293
306		Effluents and waste
306-3	Rskl §3-3a, c	Waste generated	Effect of our efforts - Climate and the environment, Appendix 6 – Climate account	85-86, 292-293
306-4	Rskl §3-3a, c	Waste diverted from disposal	Effect of our efforts - Climate and the environment, Appendix 6 – Climate account	85-86, 292-293
307		Environmental Compliance
307-1	Rskl §3-3a, c	Non-compliance with environmental laws and regulations	No cases in 2021
308		Supplier Environmental Assessment
308-2	Rskl §3-3a, c	Negative environmental impacts in the supply chain and actions taken	Climate and the Environment	67-73
Social topics
103-1 – 103-3	Rskl §3-3a, c	Management approach – Social	Creating values for our stakeholders, Our motivated employees	39-49, 53-64

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136

Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

GRI reference	Requirements for the Board of	Directors' Report Description of the GRI Standards	Comments
401		Employment
401-1	Rskl §3-3c	New employee hires and employee turnover	Effect of our efforts - Our motivated employees
401-3	Rskl §3-3c	Parentel leave	Effect of our efforts - Our motivated employees
402		Labour / Management Relations
402-1		Minimum notice periods regarding ope rational changes	Our motivated employees: Mecha nism implemented to involve and prepare employees' representatives for eventual downsizing, including duly pre-notice.
403		Occupational Health and Safety
403-9	Rskl §3-3a, c	Work-related injuries	Our motivated employees: No serious injuries or accidents involving employees in 2021.
404		Training and Education
404-1		Average hours of training per year per employee	Effect of our efforts - Our motivated employees
405		Diversity and Equal Opportunity
405-1	Rskl §3-3c	Diversity of governance bodies and em ployees	Effect of our efforts - Our motivated employees
405-2	Rskl §3-3c	Ratio of basic salary and renumeration of women to men	Effekten av innsatsen vår – våre engasjerte ansatte
405-3	Likestillings- og diskriminerings loven §26	Statement on equality	Effect of our efforts - Our motivated employees Appendix 4 - Statement on equality
406		Non-discrimination
406-1	NRS 16 2.10	Incidents of discrimination and correcti ve actions taken	Our motivated employees, Appendix 4 Statement on equality: No deviations reported through the notification channel, nor through the mailbox for ethical operations.

Requirements for the Board of	Directors' Report Description of the GRI Standards	Comments	Page

	turnover	Effect of our efforts - Our motivated employees	62-65
Rskl §3-3c	Parentel leave	Effect of our efforts - Our motivated employees	65

	rational changes	Our motivated employees: Mecha nism implemented to involve and prepare employees' representatives for eventual downsizing, including duly pre-notice.	57

Rskl §3-3a, c	Work-related injuries	Our motivated employees: No serious injuries or accidents involving employees in 2021.	58

	employee	Effect of our efforts - Our motivated employees	64

	ployees	Effect of our efforts - Our motivated employees	62-64
	women to men	Effekten av innsatsen vår – våre engasjerte ansatte	62-64
diskriminerings loven §26	Statement on equality	Effect of our efforts - Our motivated employees Appendix 4 - Statement on equality	283-287

	ve actions taken	Our motivated employees, Appendix 4 Statement on equality: No deviations reported through the notification channel, nor through the mailbox for ethical operations.	53-65, 283-287

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136

Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

GRI reference	Requirements for the Board of	Directors' Report Description of the GRI Standards	Comment	Page
407		Freedom of Association and Collective Bargaining
407-1	NRS 16 2.10	Operations and suppliers in which the right to freedom of association and col lective bargaining may be at risk	We create value in partnership with our suppliers. Follow-up of our sup pliers. No significant risk identified related to own operations	72
408		Child labor
408-1	Rskl §3-3c	Operations and suppliers at significant risk for incidents of child labor	Banned by local law. Our sustaina bility policy requires compliance with the Global Compact principles, including ban on child labour. No significant risk identified related to own operations. See Follow-up of our suppliers	72
409		Forced or Compulsory Labor
409-1	Rskl §3-3c	Operations and suppliers at significant risk for incidents of forced or compuls ory labor	Banned by local law. Our sustainabi lity policy requires compliance with the Global Compact principles, inclu ding ban on forced labour. No significant risk identified related to own operations. See Follow-up of our suppliers	72
412		Human Rights Assessment
412-3	Rskl §3-3c	Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening	Value created in Gjensidige – We cre ate value in partnership in partners hip with our suppliers. Covered both by own operations, re quirements for suppliers, and as part of the follow-up of the investments. All contracts contain clauses also concerning human rights.	72

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136

Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

GRI reference	Requirements for the Board of	Directors' Report Description of the GRI Standards	Comments	Page
414		Supplier Social Assessment
414-1	Rskl §3-3c	New suppliers that were screened using social criteria	We create value in partnership in partnership with our suppliers	72
414-2	Rskl §3-3c	Negative social impacts in the supply chain and actions taken	We create value in partnership in partnership with our suppliers	72
415		Public Policy
415-1		Political contribution	Good corporate governance. Gjensidige offers no direct nor indire ct support for political parties	104
417		Marketing and Labelling
417-2		Incidents of non-compliance concerning product and service information and labeling	Effect of our efforts - Good corpora te governance	101-105
417-3		Incidents of non-compliance concerning marketing communications	Effect of our efforts - Good corpora te governance	101-105
418		Customer Privacy
418-1		Substantiated complaints concerning breaches of customer privacy and losses of customer data	Effect of our efforts - Good corpora te governance	101-105
	Other legal requirements to be reported
	NRS 3	Events after the balance sheet day	Statement concerning the annual account	133
	NRS 16 2.5	Research and development	Statement concerning the annual account	118
	NRS 16 2.5.3	Cash flow	Statement concerning the annual account	122
	NRS 16 2.5.2	Financial position and capital base	Statement concerning the annual account	118
	NRS 16 2.8	Continued operations	Statement concerning the annual account	118
	NRS 16 2.9	Allocation of the profit before other income and expenses	Statement concerning the annual account	133
	Vphl §5-5/ Vpf §5-2	Declaration from the Board of Directors, and the CEO		265

Other legal requirements to be reported

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136

Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

Appendix 2 – Selection of governing documents

Governing documents shall ensure that Gjensidige as a group acts in accordance with the requirements set by society, the expectations of important stakeholders to the group, and the ambitions set by the board and management. Selected documents are published in their entirety on www.gjensidige.no, but some internal documents are also relevant for understanding Gjensidige's framework for good governance and control.

Governing documents classified as Public are posted at www.gjensidige.no

Governing documents	Status
Risk management
Group policy for risk management and internal controls	Internal
Underwriting policy	Internal
Capital management policy	Internal
Risk management and control	Public
Group policy for sustainability	Public
Ethics
Ethical rules - Gjensidige (Code-of-conduct)	Public
Instructions for gifts and relations activities	Internal
Policy on forbidden competitive limitations	Internal
Whistel blowing	Public
HR
Instruction for diversity	Internal
Personal policy	Internal
Guidelines for internal mobility	Internal
Procurement
Group Procurement Policy	Public
Procurement Guideline	Internal

Governing documents	Status
Security
Information Security policy	Internal
Specific security requirements for a selection of employees(s. a. HR, Group Procurement, Techno logy and Infrastructure, Sales and Claims services, Investor Relations, M&A, Capital Management)	Internal
Privacy
Privacy declaration available at all web-sites in all countries	Public
Group policy for treatment of personal information Internal
Instructions for treatment of personal information	Internal
Instruction for treatment of personal information for employees	Internal
Klagebehandling
Instruction for complaints handling in the compani es and at the customer representative	Internal
Anti-Corruption
Handbook for anti-corruption	Public
Group policy for rectifying irregularities and fraud, including corruption	Internal
Instructions for rectifying irregularities and fraud, included corruption	Internal

Governing documents	Status
Anti-Money Laundry
Policy for measures against money laundering and the finance of terror	Internal
Taxes
Tax, group policy	Public
Capital management
Group policy for Responsible Investments	Public
Strategy for investments	Internal
Instructions for Exercise of Ownership Rights	Public
Instructions for Exclusions	Public
Investor Relations
Corporate policy for financial and other investor information (IR policy)	Public
Governance
The Articles of Association of Gjensidige Forsikring ASA	Public
Rules of procedure for the nomination committee of Gjensidige Forsikring ASA	Public
Instruction for the Board of Directors in Gjensidige Forsikring ASA	Public

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

Appendix 3 – Signatures and ratings

Gjensidige has signed various relevant UN initiatives to demonstrate our support for the promotion of sustainability, globally and locally.

Ratingbyåer	Result
Morgan Stanley (MSCI)	AA
Sustainalytics	20.5 Medium Risk
Standard & Poor's (S&P)	A/Stable
ISS	C
Carbone Disclosures Project (CDP) C
Ipsos	No. 1: The best financial undertaking in Ipsos's reputation survey in Norway, and NO 6 among all rated companies in Norway
Sustainability Barometer	No. 4, Sustainability Barometer, conducted by the Norwegian Business School BI
Sustainable Brand Index	No. 2, Sustainable Brand Index among insurance companies in Norway
Universum	Best within insurance in Norway
We are member of:
UN Global Compact
UN EP FI PSI
UN PRI
NORSIF
Carbone Disclosures Project (CDP)

Norway, and NO 6 among all rated companies in Norway
Business School BI	N V I N E J E S R N 2 A 0 R 2 B 1 SUSTAINABLE BRAND INDEX
Norway

Annual report 2021 | 282

Content

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

We support the following initiatives:
Paris agreement 2015
Task Force on Climate related Financial Disclosures (TCFD)
The Guide against Greenwashing (Grønnvaskingsplakaten)	By signing the Guide against Greenwashing we have committed ourselves to ten objectives related to open and sincere commu nication of our sustainability policy and practice. Communication and promotion must be based on actual improvements of our ope rations – our own business model and value chain.
Charter for kvinner I finans	follow-up of four principles. To have one member of the corporate management with a dedicated responsibility for the follow-up of gender balance and inclusion; to set internal targets for gender ba lance at all levels of management and within expert functions; an ambition that progression of fulfilling these targets will be reflec ted by the compensation of our managers.
Koalisjonen for Ansvarlig Næringsliv	Koalisjonen for Ansvarlig Næringsliv www.koalisjonenkan.no
Certifications
Eco-lighthouse in Norway	Re-certified our head office in Oslo in 2021
DGNB – Green Building Council Denmark	Our Denmark head office in Copenhagen became silver certified in 2021.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021

Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

Appendix 4 – Statement on equality

At Gjensidige, we work to make sure that we have an inclusive culture where everyone is treated equally and with respect. We must acknowledge our employees' knowledge, competencies and strengths, regardless of gender, pregnancy, leave of absence for childbirth or adoption, care responsibilities, ethnicity, religion, beliefs, functional impairment, sexual orientation, gender identity and gender expression, and combinations of the above. This report covers the Norwegian part of Gjensidige Forsikring ASA, hereinafter referred to as Gjensidige unless otherwise specified.

Part 1 – Gender equality status

Proportion of women by job level (managerial level)	2019	2020	2021
Level 1 1	30.0 %	30.0 %	30.0 %
Level 2	30.3 %	36.8 %	35.5 %
Level 3	41.0 %	42.0 %	45.3 %
Level 4	38.6 %	34.6 %	28.8 %
Level 5	66.7 %	100.0 %	NA
Other levels	48.7 %	47.8 %	47.5 %
Proportion of women on the Board of Directors	50.0 %	40.0 %	40.0 %

Average pay (all employees) NOK
Women	638.764	681.013	693.391
Men		755.071 793.948	793.596
Women's pay as a proportion of men's (by job level)
Level 1			88.6 %
Level 2			94.6 %
Level 3			93.7 %
Level 4			101.4 %
Level 5			NA
Other levels			89.7 %

Parental leave (total number of person-days)	2019	2020	2021
Women	14.320	13.242	8.442
Men	6.189	5.522	4.062
Sickness absence
Women	5.46 %	4.13 %	4.94 %
Men	2.77 %	2.47 %	2.24 %
Absence due to child sickness (to tal number of person-days)
Women	1.694	1.793	1.565
Men	1.042	1.685	992
Proportion of part-time employ ment
Women	13.5 %	12.2 %	9.30 %
Men	3.9 %	3.9 %	2.90 %
Proportion of temporary employ ment
Women	7.1 %	6.3 %	1.50 %
Men	4.4 %	4.9 %	2.20 %

Management level 1 is the senior group management and therefore also includes managers in the branches Sweden and Denmark.

NA. There are currently no managers at level 5.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021

Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

At Gjensidige, all employees are normally hired in full-time positions. An exception can be made if an employee applies for a temporary reduction in working hours for social, health-related or other weighty welfare reasons, or a permanent reduction in working hours due to, e.g. permanent disability. Some of our employees work less than 100 per cent of a full-time position, but they are positions of a temporary nature, such as internships. On this basis, we believe we can say for certain that none of our employees work part-time involuntarily.

Pay review

Position group	No of women	No of men	Proportion of women	Ratio of women's to men's wages and salaries in cash
Total	905	1.048	46 %	87 %
Lawyer	4	8	33 %	102 %
Actuary	7	4	64 %	90 %
Analyst	52	55	49 %	96 %
Controller	8	7	53 %	83 %
Technical consultant	118	126	48 %	88 %
Business support	10	9	53 %	76 %
Business developer	37	35	51 %	93 %
ICT employee	27	75	26 %	90 %
Customer service representative	44	37	54 %	98 %
Manager	95	148	39 %	90 %
Product developer	22	17	56 %	100 %
Project manager	6	8	43 %	74 %
Sales support	43	18	70 %	90 %
Seller	242	337	42 %	89 %
Service consultant	23	8	74 %	104 %
Claims processor	141	66	68 %	96 %
Underwriter	7	21	25 %	71 %

This pay review applies to the Norwegian part of Gjensidige Forsikring ASA, but similar reporting on equal pay is carried out in Sweden and Denmark. The table only shows groups of positions where more than five women and/or men are employed.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136

Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

Part 2 – Work to promote equality and combat discrimination

Principles, procedures and standards for equality and anti-discrimination

At Gjensidige, we work to make sure that we have a good, inclusive corporate culture where everyone is treated equally and with respect. We wish to develop an organisation in which diversity characterises our activities and generates new ideas and perspectives. It should be possible for all our employees to balance their work and personal life, and we want to make arrangements to help them achieve this. We expect all employees to be respectful and considerate and to display common courtesy in relation to colleagues, competitors, customers and others. We believe that we make each other better by being inclusive and engaged.

We have zero tolerance for discrimination and harassment, and anyone who feels that they are being discriminated or harassed/bullied shall be taken seriously. We have well established guidelines to prevent unwanted sexual attention.

Our principles and procedures for equality and anti-discrimination are aligned with the company's HR strategy and the pertaining guidelines, personnel policy and ethical rules (Code of Conduct).

We signed the Women in Finance Charter initiative in 2021, with the objective of increasing the proportion pf women in management and specialist positions. Our goal for 2022 is to secure a good gender balance of at least 40/60 in management and specialist positions in the company.

Our efforts to ensure equality and non-discrimination in practice

Gjensidige has good processes in place to ensure employee representatives are involved in recruitment, pay reviews, health and safety work, reorganisation and staff reductions.

In cooperation with the HR department, the employee representatives are involved in the work of fulfilling the company's activity and reporting obligation. We have looked at factors in our organisation that can contribute to discrimination and be an obstacle to equality in connection with recruitment, pay and working conditions, promotion, opportunities for development, adaptation and possibilities of combining work and family life, in addition to other relevant factors.

Our efforts to identify the risk of discrimination and obstacles to equality

Gjensidige makes continuous efforts to ensure equality and prevent discrimination. We have a Diversity and Inclusion Committee consisting of trade union and HR representatives, which meets every quarter.

The new engagement survey 'My Voice' was introduced in November 2019 for the entire Gjensidige Group (excluding the Baltics), and the figures here apply to Gjensidige Forsikring ASA, Gjensidige Pensjonsforsikring and Gjensidige Business Service. We have thereby gone from annual measurements to continuous development and learning through monthly engagement surveys. Throughout 2021, the claim 'People from all backgrounds are treated fairly at Gjensidige' has returned a stable high score. In November 2021, the score was 9.2, up from 9.1 in November 2020, on a scale from 1 to 10. The proportion of negative scores (0–6) has gone down from 4 per cent to 3 per cent during the same period. We also ask the following question: 'If I were to experience gross misconduct or violations, I am certain that Gjensidige would take steps to resolve the situation'. The score in November 2021 was 8.9, up from 8.7 in November 2020. The proportion of negative scores (0–6) has gone down from 7 per cent to 6 per cent during the same period. We keep a close eye on the proportion of negative responses to these two questions, as we work to ensure that all our employees are treated fairly regardless of their background. We also have zero tolerance of discrimination, violations and misconduct.

Through our health and safety work, we make similar targeted efforts to achieve higher job satisfaction, reduced sickness absence and a healthy working environment for all our employees. In line with the company's action plan for health, safety and environmental work, we conduct an annual HSE survey that forms the basis for HSE risk assessments and measures. The survey also touches on employees' experiences of being exposed to unwanted sexual attention and bullying. All managers with personnel responsibility are responsible for following up the results and presenting them to their departments. The results form the basis for completion of the HSE Risk Assessment form. All managers contribute to achieving the measures in the action plan by putting bullying/harassment, unwanted sexual attention, threats and threatening behaviour on the agenda for departmental meetings where the pertaining guidelines are also reviewed. Managers are also responsible for ensuring that all employees are familiar with the company's handbooks, which include ethics, company regulations and descriptions of various HR processes, including whistleblowing procedures.

In cooperation with employee representatives (represented on the Diversity and Inclusion Committee), the HR department works to identify the risk of discrimination and obstacles to equality, and possible reasons for this. We have looked at the likelihood of individual risks/ obstacles arising in different HR areas, in addition to the seriousness of the individual risk/obstacle.

We identified the following risks of discrimination and obstacles to equality

Our work to identify risks of discrimination and obstacles to equality found the same overall risks as in 2020, and that initiated efforts have helped to reduce several of them. This means that our hiring processes do not sufficiently secure the level of diversity we wish to achieve, from beginning to end.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136

Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

The pay review has given us a good picture of the pay gap between women and men, when we look at gender in isolation. We have based the review on already established groups of positions, and mapped the reasons for the pay gap in the individual groups. The findings are mainly linked to differences in experience and education, and the difficulty of recruiting people for positions. We will continue our endeavours to ensure that our pay policy does not contain any discriminating elements.

We see that discrimination and obstacles to equality may arise in connection with promotions and in our communication. This also applies to combining work and family life, where different life situations and responsibilities within the family may constitute a potential risk. Another risk is the risk of employees not having the same access to or offer of adaptation in different contexts, mainly linked to health and lifestyle.

We identified the following possible causes of risks and obstacles, and initiated measures

Based on the risks and obstacles identified by the employee representatives and HR, we have devised an action plan describing risks/ obstacles with pertaining measures, goals, who is responsible, deadline/status and evaluation.

We adopted and appended instructions for diversity to the company's sustainability policy in 2021, with the objective of ensuring that we use the diversity of our staff to generate added business value. These instructions set out that each individual employee is responsible for recognising their colleagues' distinctive characteristics and competencies. We have also certified two diversity managers under the auspices of Seema (the centre for diversity management) and Standards Norway.

By raising awareness of the importance of diversity in hiring, we have implemented measures that we believe contribute positively to ensuring diversity, thus also reducing the risk of discrimination and

obstacles to equality. We have worked systematically on the hiring process through a range of measures we have piloted, learned from and evaluated. We know that a thorough job analysis has a positive impact on the quality of hiring. We have identified measures that can be implemented to ensure more thorough work is carried out before the hiring process begins. This ensures the competencies required to succeed in the position and the focus needed to ensure diversity throughout the hiring process, from planning starts until the final appointment. Application letters can increase the risk of discrimination. We are now piloting the use of screening questions rather than application letters, to ensure all candidates have the same opportunity to present their skills and qualifications and motivation for the position. We are also piloting competence-based second interviews based on the competence requirements derived from the job analysis. We are also encouraging candidates to inform us of any adaption needs they may have during the recruitment process itself. We have now also deliberately set aside questions about adaptation in the workplace until after the employment contract has been signed, unless obvious and broached by the candidate.

We have an internal insurance specialist programme, which we recruited employees to for the fourth time in 2021. This year, those enrolled are being trained for sales positions in the Commercial segment, where we have had difficulty recruiting qualified employees and achieving a good gender balance. There were many well qualified applicants, including women, resulting in a preponderance of female participants.

It is our responsibility to ensure that all employees are given equal opportunities irrespective of life phase, and a review of the company's life phase policy has now been initiated. We will also seek to ensure here that we do not discriminate employees or create obstacles to equality. Work is also underway on an evaluation and revitalisation of the company's senior policy, based on questionnaires and interviews etc. We have launched two initiatives aimed at employees who are expecting or have just had a baby. One is a conversational tool for dialogue between the manager and employee before, during and after a parental leave. The other is to get the 'parental group for employees on parental leave', which was established just before the pandemic, off the ground again. We hope that these measures can help to make a positive contribution to reducing the likelihood of sick leave during pregnancy and of employees leaving the company in connection with parental leave. We are closely monitoring turnover among this group of employees and new recruits.

As part of our effort to create an inclusive corporate culture, we continued working on various culture-building activities in 2021, including a webinar on prejudice and attitudes and best-practice interviews.

We have a strong focus on ensuring universal design at all our offices. This is best addressed in newer buildings, but the company has a constant focus on improving this area. A need has been identified in the past year for unisex toilets and an induction loop in some offices. Efforts are being made to address these needs.

In 2022, we will continue working on initiatives in progress, particularly those relating to the recruitment process, taking advantage of diversity and equal opportunities for adaptation. We have already commenced work on developing conversation templates for use in connection with following up employees on different types of absence. We will continue to employ various means to create an inclusive corporate culture.

Results of our efforts

In November 2021, we conducted an HSE survey that returned high scores for employees' satisfaction with the company's health, safety and environmental work. HSE audits have also been carried out. Sickness absence has remained at a stable low level throughout the year.

With respect to the differences identified in the pay review, we have noted a slight improvement on the 2020 figures, which may be due to the increased focus on equal pay throughout the year. The group with

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136

Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

the biggest gender pay gap comprises both employees undergoing training and senior employees. This creates a pay gap that we will look at in 2022. The average pay for new employees in 2021 is practically the same for women and men, and the focus on equal pay for equal work is demonstrated by equal pay for new employees in the same positions with more or less the same experience/qualifications.

We do not register the gender of applicants for vacant positions and cannot therefore refer to any specific gender balance figures. By focusing more on the job and the role to be filled than on desired qualifications, we see that we attract applicants from other backgrounds than has traditionally been the case. In 2021, we have hired more men than women, which has brough the proportion of women to 46.4 per cent (-0.5 pp from 2020). The proportion of female managers has increased however by 1.1 pp to 38.8 per cent, when we look at the Norwegian part of the company in isolation, while it has increased by 0.3 pp to 39.6 per cent in Gjensidige Forsikring ASA.

Proportion of female managers, total	2019	2020	2021
Gjensidige Group (excl. the Baltics)	37.9 %	39.1 %	38.7 %
Gjensidige Forsikring ASA	38.4 %	39.3 %	39.6 %
Gjensidige Forsikring Norge	35.6 %	37.7 %	38.8 %

Work on the major initiative to promote inclusion has been challenging. This is because very many employees largely worked from home until October 2021. We were in the process of organising placements/work training for a number of people when the authorities ordered people to again work from home. Expected start-up is now set to Q1 2022. We have maintained agreements already entered into throughout 2021. We have not sufficiently succeeded in recruiting candidates with gaps in their CVs, and will implement further measures, based on experience, in 2022.

Through the year, we have continued the excellent work carried out in 2020 on several extensive measures that we believe will be important in our work to combat discrimination and obstacles to equality. The strange year that was 2020, and likewise 2021, provided an opportunity for learning about management, cooperation and workplace requirements. We have used this learning to devise principles for a new work model, which sets out the clear expectation that our managers practise a trust-based and inclusive management style.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

Appendix 5 – Climate compensation – certificates

Gjensidige has climate compensated CO₂-emissions by purchasing Guarantees of origin for renewable energy, in addition to VER Gold Standard offsets for own operations as well as for the products Greener household content and travel insurance for young people in Norway.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136

Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

Guarantees of origin

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

Oslo, 7th of July 2021

CLIMATE CERTIFICATE 2021 CLIMATE CERTIFICATE 2021

Kjetil Selmer-Olsen

	KLIMAKOMPENSERT KLIMAKOMPENSERT VIRKSOMHET

CLIMATE CERTIFICATE 2021 CLIMATE CERTIFICATE 2021			CLIMATE CERTIFICATE 2021
	CEMAsys' Climate Certificate™ is hereby issued as a proof of purchase of carbon credits for voluntary offsets of own greenhouse gas emissions. The carbon credits have been issued in accordance to the relevant standard's protocols and tracked in the registry using unique serial numbers to prevent double counting or double selling.		CEMAsys' Climate Certificate™ is hereby issued as a proof of purchase of carbon credits for voluntary offsets of own greenhouse gas emissions. The carbon credits have been issued in accordance to the relevant standard's protocols and tracked in the registry using unique serial numbers to prevent double counting or double selling.
Company	Gjensidige Forsikring AS	Company	Gjensidige Forsikring AS
Offsets cover Offsets cover Volume (tonnes CO2e) 3 000	Climate compensation of own business Climate compensation ofown business	Offsets cover	Climate compensation of "Innbo- og løsøre UNG" Q1 and Q2 2021
Type	VER (Verified Emission Reduction)	Volume (tonnes CO2e) 1334
Issuing body	Gold Standard Foundation	Type	VER (Verified Emission Reduction)
Project name Project name	GS 1385 – Energy Efficiency and Improved Clean	Issuing body	Gold Standard Foundation
Project reference	Burning Cookstoves in Ghana. https://registry.goldstandard.org/projects/details/237	Project name	GS 1385 – Energy Efficiency and Improved Clean Burning Cookstoves in Ghana.
		Project reference	https://registry.goldstandard.org/projects/details/237
	The carbon credits have been retired from the registry permanently, so that no one else can hold or retire them. For more information, see the project description.		The carbon credits have been retired from the registry permanently, so that no one else can hold or retire them. For more information, see the project description.
	Oslo, 7th of July 2021 Oslo, 7th of July2021		Oslo, 20th of January 2021

The carbon credits have been retired from the registry permanently, so that no one else can hold or retire them. For more information, see the project description.

Kjetil Selmer-Olsen

KLIMAKOMPENSERT VIRKSOMHET

Carbon offsets – own operations
KLIMAKOMPENSERT KLIMAKOMPENSERT VIRKSOMHET	KLIMAKOMPENSERT VIRKSOMHET

CLIMATE CERTIFICATE 2021 CLIMATE CERTIFICATE 2021	CLIMATE CERTIFICATE 2021
CEMAsys' Climate Certificate™ is hereby issued as a proof of purchase of carbon credits for voluntary offsets of own greenhouse gas emissions. The carbon credits have been issued in accordance to the relevant standard's protocols and tracked in the registry using unique serial numbers to prevent double counting or double selling.	CEMAsys' Climate Certificate™ is hereby issued as a proof of purchase of carbon credits for voluntary offsets of own greenhouse gas emissions. The carbon credits have beenissued in accordance to the relevant standard's protocols andtracked in have been issued in accordance to the relevant standard's protocols and tracked in the registry using unique serial numbers to prevent double counting or double selling.
Company Gjensidige Forsikring AS	Company Company Gjensidige Forsikring AS Gjensidige Forsikring AS
Offsets cover Offsets cover Climate compensation of own business Climate compensation ofown business	Climate compensation of "Innbo- og løsøre UNG" Q1 and Offsets cover
Volume (tonnes CO2e) 3 000	Q2 2021
Type VER (Verified Emission Reduction)	Volume (tonnes CO2e) 1334
Issuing body Gold Standard Foundation	Type VER (Verified Emission Reduction)
GS 1385 – Energy Efficiency and Improved Clean Project name Project name	Issuing body Gold Standard Foundation GS 1385 – Energy Efficiency and Improved Clean
Burning Cookstoves in Ghana. Project reference https://registry.goldstandard.org/projects/details/237	Project name Burning Cookstoves in Ghana.
	Project reference Project reference https://registry.goldstandard.org/projects/details/237 https://registry.goldstandard.org/projects/details/237

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

CLIMATE CERTIFICATE 2021

Oslo, 25th of June 2021

CEMAsys' Climate Certificate™ is hereby issued as a proof of purchase of carbon credits for voluntary offsets of own greenhouse gas emissions. The carbon credits have been issued in accordance to the relevant standard's protocols and tracked in the registry using unique serial numbers to prevent double counting or double selling.

Company	Gjensidige Forsikring AS
Offsets cover	Climate compensation of "Innbo- og løsøre UNG" Q3 and Q4 2021
Volume (tonnes CO2e) 800
Type	VER (Verified Emission Reduction)
Issuing body	Gold Standard Foundation
	GS 1385 – Energy Efficiency and Improved Clean
Project name	Burning Cookstoves in Ghana.
Project reference	https://registry.goldstandard.org/projects/details/237

The carbon credits have been retired from the registry permanently, so that no one else can hold or retire them. For more information, see the project description.

Kjetil Selmer-Olsen

Carbon offsets - Greener household content and travel insurance for young people

CEMAsys.com AS | Hegdehaugsveien 31, 0352 Oslo, Norway | www.cemasys.com

142 000 Households provided with clean cook stoves through this project

100 jobs 70 men and 30 women

220 000 tonnes CO2e mitigated

Improved cookstoves in Ghana – Gold Standard project

PROJECT TYPE

Improved efficiency from reduced consumption of wood as fuel

PROJECT LOCATION Ghana, Ashanti Region

ANNUAL CO2 REDUCTION 220 000 tonnes CO2e

SITUATION WITHOUT PROJECT Traditional cookstoves that expose users to toxic smoke and gas from burning biomass will remain the main source of fuel for households for a long time

SDG CONTRIBUTION

PROJECT STANDARD

Gold Standard # 1385 (GS VER)

AWARDS

The project aims to contribute to the socially, economically and environmentally sustainable development of the region by making efficient cookstoves widely available and educating the population about their benefits.

The social benefit of the project is that it creates jobs for local people, with employment of both women and men in the region. They are educated in the health benefits of using clean-burning stoves, and employed in the production of stoves. This gives locals a livelihood, with wages that are 80% higher than the minimum wage. The stoves are produced locally from scrap metal and sold at subsidized prices. The improved stoves are 40% more energy efficient than traditional stoves, and reduce consumption of wood charcoal. The project contributes to reduced demand and thus to less deforestation. A significant proportion of annual household budget is spent on the purchase of charcoal. By reducing the need for charcoal, the project also reduces expenses for a family accordingly.

More efficient stoves provide health benefits by reducing the amount of carbon monoxide and toxic fumes that are being inhaled. The health benefits are more evident among women and children as they traditionally have the responsibility of the household. Surveys show that the project has provided cost savings and improved health for those that adopt the stoves.

The primary objective of the project is to significantly reduce wood fuel consumption of low income Ganesh households by providing them with affordable improved cookstoves in the Ashanti region in Ghana. The improved cookstoves can replace traditional stoves which expose people to toxic smoke and gas from burning wood while cooking.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

We target a 75% reduction in CO₂e by 2025*.

*Base year 2019

Appendix 6 – Climate accounts own operations

The charts below show figures for the climate footprint, in tonnes CO₂ equivalents, from Gjensidige's own activities for 2021. The figures are recorded in accordance with established guidelines for scopes 1, 2 and 3 based on the GHG protocol. For Scope 1, the footprint comes from company cars. Scope 2 shows energy consumption in our own operations. In Scope 3, the footprint comes mainly from air travel for our employees. In addition, we have calculated CO₂e in the value chain related to materials used in frequency claims processes, pertaining to motor vehicles and buildings. These are displayed as key figures at the end of the chapter 'Climate and the environment'. Total GHG emissions in 2021 were 1,152 tonnes CO₂e and 2,338 tonnes CO₂e in 2020. For both years the emissions have been compensated for by the purchase of VER carbon offsets, equ. 3.000 tonnes (appendix 5). In this way we have labelled our operations for 'climate compensated'.

Scope 2 – location based and district heating Scope 3 – air travel, waste

GHG emissions own operations by scope and country Scope 2 – market based and district heating Scope 1 - mainly company cars

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136

Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

GHG emissions own operations by scope and country Scope 2 – market based and district heating, tonne CO2e Scope 1 - mainly company cars, tonnes CO2e

The charts below display the development in GHG emissions by scope per country over the last three years. The largest decline in GHG emissions is related to Scope 2, where Guarantees of origin for renewable energy were purchased in 2020 in the Norwegian part of the business, and in 2021 for the entire Group (appendix 5). This is displayed by Scope 2 market based and district heating, with emissions only related to district heating in 2021. There has also been a significant decline in the climate footprint associated with air travel. This is largely explained by Covid 19, but the goal of maintaining a 75 percent lower climate footprint than 2019 for own operations will require less air travel than before the pandemic in the years to come.

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136

Appendix 2021	271
Appendix 1 - GRI Content Index and Board
of Directors Report	272
Appendix 2 - Selection of governing
documents	280
Appendix 3 - Signatures and ratings	281
Appendix 4 - Statement on equality	283
Appendix 5 - Climate compensation -
certificates	288
Appendix 6 - Climate accounts own operations 292
Appendix 7 - Environmental Sertificate	294

Appendix 7 – Environmental Sertificate

-

HAINUMMER	1806
or	15.03.2021
C TIL	15.03.2024
















	ATTAXA HARRA 3 3 931 0-1 1373 N 20 2 RARRARA VIN . M
	NARA V N 113 11 P 2 P M M W 1
	199 . .

Annual report 2021 | 295

Appendix 2021

Content

Chapter 1 - We are Gjensidige	2
Chapter 2 - This is us	14
Chapter 3 - Value creation in Gjensidige	38
Chapter 4 - Financial result	117
Financial statement including notes 2021	136
Appendix 2021	271

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.

Gjensidige Forsikring Group Schweigaardsgate 21, 0191 Oslo P.O.box 700, Sentrum, 0106 Oslo

Phone + 47 915 03100

AI Terminal

Gjensidige Forsikring ASA

3606_10-k_2022-02-16_c5433c4e-0282-4da0-874b-cc777ab7e6d3.pdf

Integrated annual report 2021 We are Gjensidige

Content

Chapter 1

We are Gjensidige

About this report

The past year

The past year

New core system launched in Denmark

Acquisition of Nordeuropa Forsikring

Issuing and redemption of bonds

Schysst car subscription service

Acquisition of NEM Forsikring in Denmark

Integrated services – toll road companies

Introduced Ecolabel houses

Sustainable claims settlements

Young people's mental health a focus of concern for Gjensidige and Gjensidigestiftelsen

Capital Markets Day

Acquisition of Falck roadside assistance

Sale of Oslo Areal

Content

Key figures and alternative performance measures

Underwriting result general insurance 1

Earned premiums general insurance

Combined ratio general insurance 1

Solvency margin 2

Market value on Oslo Stock Exchange at 31.12

Total return 1 NOK billion

Key figures 2021

Content

Letter from the Chair

Content

People, the environment and value creation

People

The environment

Value creation

Dividend

A strong year

Content

Letter from the CEO

A very good year

The result of high quality

Progress outside Norway

New initiatives

What we learned from the pandemic

New goals motivate

Mission and vision

Our core values

Creating a sense of security

Applying new thinking

Going for it

Our goals and targets

High ambitions that will benefit all our stakeholders

Annual financial targets 2022–2025

Integrated sustainability goals that will safeguard people and the planet

Key sustainability targets:

A safer society

Sustainable claims settlements

Responsible investments

Our operational targets towards 2025

Customer orientation

Effective, sustainable processes

Customer satisfaction (CSI): (S)

Customer retention: (S)

Digitalisation index: (S)

Digital claims reporting and automated claims processing: (S)

Reduced carbon emissions from own operations, Group: (E)

Employee engagement score: (S)

No fines from authorities (G)

Gjensidige's business model

We create value for the society, now and in the future

-

- -

Content

Gjensidige's strategy

Global megatrends towards 2030

Content

Strategic platform and strategy towards 2025